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Investments (Tables)
 3 Months Ended
Mar. 31, 2015
Investments [Abstract]  
Fixed Maturities and Equity Securities, Available-for-sale Securities
     March 31, 2015
                   
               Other-than-
        Gross  Gross   temporary
     Amortized  Unrealized  Unrealized Fair Impairments
     Cost  Gains  Losses Value in AOCI (3)
                   
     (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of U.S.                
 government authorities and agencies $6,319 $79   - $6,398 $ -
Obligations of U.S. states and their political               
 subdivisions  20,840  1,275   -  22,115   -
Foreign government bonds  29,528  7,953   -  37,481   -
Public utilities  200,012  30,320  1,627  228,705   -
All other corporate securities  1,695,760  145,995  11,374  1,830,381   -
Asset-backed securities (1)  147,945  5,099  272  152,772  (45)
Commercial mortgage-backed securities  276,142  12,760  79  288,823   -
Residential mortgage-backed securities (2)  119,382  7,272  6  126,648  (17)
Total fixed maturities, available-for-sale $2,495,928 $210,753 $13,358 $2,693,323 $(62)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $ - $ - $ - $ -   
 Mutual funds  14  3   -  17   
Total equity securities, available-for-sale $14 $3 $ - $17   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
  • Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
  • Represents the amount of other-than-temporary impairment losses in Accumulated Other Comprehensive Income (“AOCI”), which were not included in earnings. Amount excludes $0.1 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

     December 31, 2014
                   
               Other-than-
        Gross  Gross   temporary
     Amortized  Unrealized  Unrealized Fair Impairments
     Cost  Gains  Losses Value in AOCI (3)
                   
     (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of U.S.                
 government authorities and agencies $6,324 $22 $ 10 $6,336 $ -
Obligations of U.S. states and their political               
 subdivisions  69,486  1,323  20  70,789   -
Foreign government bonds  29,738  7,621   4.00  37,355   -
Public utilities  198,277  19,909  1,593  216,593   -
All other corporate securities  1,743,110  146,872  4,891  1,885,091   -
Asset-backed securities (1)  144,324  5,078  391  149,011   (39)
Commercial mortgage-backed securities  291,868  10,523  206  302,185   (10)
Residential mortgage-backed securities (2)  126,126  7,113  6  133,233   (36)
Total fixed maturities, available-for-sale $2,609,253 $198,461 $7,121 $2,800,593 $(85)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $ - $ - $ - $ -   
 Mutual funds  14  3   -  17   
Total equity securities, available-for-sale $14 $3 $ - $17   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types.
  • Includes publicly-traded agency pass-through securities and collateralized mortgage obligations.
  • Represents the amount of other-than-temporary impairment losses in AOCI, which were not included in earnings. Amount excludes $0.1 million of net unrealized gains on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.

 
Investments Classified by Contractual Maturity Date
     Available-for-Sale
     Amortized Fair
     Cost Value
          
     (in thousands)
Due in one year or less $ 297,021 $ 300,763
Due after one year through five years   786,836   842,063
Due after five years through ten years   475,749   521,609
Due after ten years   392,853   460,645
Asset-backed securities   147,945   152,772
Commercial mortgage-backed securities   276,142   288,823
Residential mortgage-backed securities   119,382   126,648
  Total $ 2,495,928 $ 2,693,323
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities
     Three Months Ended March 31,
     2015 2014
          
     (in thousands)
Fixed maturities, available-for-sale  
  Proceeds from sales $ 4,736 $ 52,030
  Proceeds from maturities/repayments   157,146   307,613
  Gross investment gains from sales, prepayments, and maturities   1,902   1,132
  Gross investment losses from sales and maturities   (31)   (326)
Equity securities, available-for-sale      
  Proceeds from sales $ - $ -
  Gross investment gains from sales   -   -
Fixed maturity and equity security impairments      
  Net writedowns for other-than-temporary impairment losses      
   on fixed maturities recognized in earnings $ (9) $ -
Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company for which a Portion of the OTTI Loss was Recognized in OCI
        
       
    Three Months Ended March 31,
    2015 2014
         
     (in thousands)
         
Balance, beginning of period $93 $1,800
Credit loss impairments previously recognized on securities which matured, paid       
 down, prepaid or were sold during the period   (5)  (1,673)
Additional credit loss impairments recognized in the current period on securities      
 previously impaired  9   -
Accretion of credit loss impairments previously recognized due to an increase in       
 cash flows expected to be collected   (3)  (8)
Balance, end of period $94 $119
Trading Account Assets Disclosure
     March 31, 2015 December 31, 2014
       Fair   Fair
     Cost Value Cost Value
                
  (in thousands)
             
  Total trading account assets - Equity securities $5,444 $6,068 $5,471 $6,131
Commercial Mortgage and Other Loans
     March 31, 2015  December 31, 2014 
     Amount % of  Amount % of 
     (in thousands) Total  (in thousands) Total 
                  
Commercial and agricultural mortgage loans by property type:              
Apartments/Multi-Family  $140,965  33.9% $143,057  34.0%
Industrial  86,758  20.9   87,088  20.7 
Retail   72,718  17.5   72,226  17.2 
Office  44,076  10.6   44,621  10.6 
Other  14,061  3.4   14,119  3.4 
Hospitality  5,052  1.2   5,081  1.2 
                  
  Total commercial mortgage loans  363,630  87.5   366,192  87.1 
Agricultural property loans  52,119  12.5   54,113  12.9 
  Total commercial and agricultural mortgage loans by property              
   type  415,749  100.0%  420,305  100.0%
Valuation allowance  (407)      (482)    
                  
  Total net commercial and agricultural mortgage loans by property               
   type  415,342      419,823    
                  
Other Loans              
Uncollateralized loans   2,740       2,740    
Valuation allowance   -       -    
                  
  Total net other loans   2,740       2,740    
                  
  Total commercial mortgage and other loans $ 418,082     $ 422,563    
Allowance for Losses
     March 31, 2015 December 31, 2014 
           
  (in thousands) 
Allowance for credit losses, beginning of year $482 $1,256 
Addition to / (release of) allowance for losses   (75)   (774) 
Total ending balance (1) $407 $482 

_____________

  • Agricultural loans represent less than $0.1 million of the ending allowance at both March 31, 2015 and December 31, 2014.

 
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans
     March 31, 2015 December 31, 2014
      
  (in thousands)
Allowance for Credit Losses:      
Individually evaluated for impairment (1) $ - $ -
Collectively evaluated for impairment (2)  407  482
Total ending balance $407 $482
          
Recorded Investment (3):      
Gross of reserves: individually evaluated for impairment (1) $ - $ -
Gross of reserves: collectively evaluated for impairment (2)  418,489  423,045
Total ending balance, gross of reserves $418,489 $423,045

_____________

  • There were no loans individually evaluated for impairments at both March 31, 2015 and December 31, 2014.
  • Agricultural loans collectively evaluated for impairment had a recorded investment of $52 million and $54 million for the periods ending March 31, 2015 and December 31, 2014, respectively, and a related allowance of less than $0.1 million for both the periods ended March 31, 2015 and December 31, 2014. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $3 million for both March 31, 2015 and December 31, 2014 and no related allowance for both periods.
  • Recorded investment reflects the balance sheet carrying value gross of related allowance.

 
Net Investment Income
    Three Months Ended
    March 31,
    2015 2014
         
    (in thousands)
Fixed maturities, available-for-sale $30,782 $38,376
Equity securities, available-for-sale   -   -
Trading account assets  2  9
Commercial mortgage and other loans  5,236  6,166
Policy loans  130  127
Short-term investments  44  57
Other long-term investments  2,795  1,213
  Gross investment income  38,989  45,948
Less: investment expenses  (1,400)  (1,447)
  Net investment income $37,589 $44,501
Realized Gain (Loss) on Investments
     Three Months Ended
     March 31,
     2015 2014
     (in thousands)
Fixed maturities $1,862 $806
Commercial mortgage and other loans   75   -
Derivatives  11,538  (977)
  Realized investment gains (losses), net $13,475 $(171)
Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related to Net Unrealized Investment Gains (Losses)
                   
     (in thousands)
Balance, December 31, 2014 $1 $ - $ - $16 $17
Net investment gains (losses) on investments                
  arising during the period  (5)   -   -  2  (3)
Reclassification adjustment for (gains) losses               
 included in net income   7   -   -  (2)  5
Impact of net unrealized investment (gains) losses on               
 deferred policy acquisition costs               
 and other costs   -  (1)   -   -  (1)
Impact of net unrealized investment (gains) losses on               
 future policy benefits   -   -  (1)   -  (1)
Balance, March 31, 2015 $3 $ (1) $ (1) $16 $17

_____________

  • Includes cash flow hedges. See Note 5 for information on cash flow hedges.
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
                Accumulated Other
                Comprehensive
             Deferred  Income (Loss) Related
     Net Unrealized  Deferred Policy  Future Income Tax   To Net Unrealized
     Gains (Losses) on  Acquisition Costs Policy (Liability) Investment
     Investments (1) and Other Costs Benefits Benefit  Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2014 $198,922 $(59,045) $(8,372) $(46,870) $84,635
Net investment gains (losses) on investments                
 arising during the period  16,209   -   -  (5,673)  10,536
Reclassification adjustment for (gains) losses               
 included in net income  (1,869)   -   -  654  (1,215)
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition               
 costs, deferred sales inducements and                
 and other costs   -  (756)   -  265  (491)
Impact of net unrealized investment (gains)               
 losses on future policy benefits   -   -  (652)  227  (425)
Balance, March 31, 2015 $213,262 $(59,801) $(9,024) $(51,397) $93,040
Unrealized Gains and (Losses) on Investments
     March 31, December 31,  
     2015 2014  
            
  (in thousands)
Fixed maturity securities on which an OTTI loss has been recognized $3 $1  
Fixed maturity securities, available-for-sale - all other  197,392  191,339  
Equity securities, available-for-sale  3  3  
Affiliated notes  2,348  2,351  
Derivatives designated as cash flow hedges (1)  13,163  4,839  
Other investments  356  390  
Net unrealized gains (losses) on investments $213,265 $198,923  

_____________

  • See Note 5 for more information on cash flow hedges.

 
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures
    March 31, 2015
    Less than twelve months Twelve months or more Total
                     
    Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
                     
  (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of                  
 U.S. government authorities and agencies $ - $ - $ - $ - $ - $ -
Obligations of U.S. States and their                   
 political subdivisions   -   -   -   -   -   -
Foreign government bonds   -   -   -   -   -   -
Public utilities  14,174  1,282  2,101  345  16,275  1,627
All other corporate securities  209,949  10,994  3,321  380  213,270  11,374
Asset-backed securities  10,873  7  32,753  265  43,626  272
Commercial mortgage-backed securities  4,136  79  14  0  4,150  79
Residential mortgage-backed securities  318  6   -   -  318  6
  Total $239,450 $12,368 $38,189 $990 $277,639 $13,358
                     
Equity securities, available-for-sale $ - $ - $ - $ - $ - $ -

    December 31, 2014
    Less than twelve months Twelve months or more Total
                     
    Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses
                     
  (in thousands)
Fixed maturities, available-for-sale  
U.S. Treasury securities and obligations of                  
 U.S. government authorities and agencies $ 2,676 $ 10 $ - $ - $2,676 $10
Obligations of U.S. States and their                   
 political subdivisions   -   -   7,305   20  7,305  20
Foreign government bonds  4,632  4   -   -  4,632  4
Public utilities  18,222  1,321   2,174   272  20,396  1,593
All other corporate securities  260,414  4,462   9,403   429  269,817  4,891
Asset-backed securities  31,756  58   32,732   333  64,488  391
Commercial mortgage-backed securities  4,309  108   7,377   98  11,686  206
Residential mortgage-backed securities   342   6   -   -   342   6
  Total $322,351 $5,969 $58,991 $1,152 $381,342 $7,121
                     
Equity securities, available-for-sale $ - $ - $ - $ - $ - $ -
Reclassifications Out Of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)
        
      Three Months Ended
      March 31, 2015
        
       (in thousands)
Amounts reclassified from AOCI (1)(2):   
Net unrealized investment gains (losses):   
 Cash flow hedges - Currency/Interest rate (3) $232
 Net unrealized investment gains (losses) on available-for-sale securities  1,630
  Total net unrealized investment gains (losses) (4)  1,862
        
    Total reclassifications for the period $1,862

_____________

  • All amounts are shown before tax.
  • Positive amounts indicate gains/benefits reclassified out of AOCI. Negative amounts indicate losses/costs reclassified out of AOCI.
  • See Note 5 for additional information on cash flow hedges.
  • See table below for additional information on unrealized investment gains (losses), including the impact on deferred policy acquisition and other costs, and future policy benefits.
 [1]
Accumulated Other Comprehensive Income Loss Table
   Accumulated Other Comprehensive Income (Loss)
    Foreign Currency Translation Adjustment  Net Unrealized Investment Gains (Losses) (1)  Total Accumulated Other Comprehensive Income (Loss)
           
   (in thousands)
Balance, December 31, 2014 $ (30) $84,652 $84,622
Change in other comprehensive income         
  before reclassifications    (59)  14,793  14,734
Amounts reclassified from AOCI    -  (1,862)  (1,862)
Income tax benefit (expense)   21  (4,526)  (4,505)
Balance, March 31, 2015 $(68) $93,057 $92,989
           
           
   Accumulated Other Comprehensive Income (Loss)
    Foreign Currency Translation Adjustment  Net Unrealized Investment Gains (Losses) (1)  Total Accumulated Other Comprehensive Income (Loss)
   (in thousands)
Balance, December 31, 2013 $ 10 $70,857 $70,867
Change in other comprehensive income         
  before reclassifications    (1)  20,191  20,190
Amounts reclassified from AOCI    -  (806)  (806)
Income tax benefit (expense)   -  (6,785)  (6,785)
Balance, March 31, 2014 $9 $83,457 $83,466
Credity Quality Indicators [Text Block]
    Debt Service Coverage Ratio - March 31, 2015
    Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total
               
Loan-to-Value Ratio  (in thousands)
0%-59.99% $ 268,118 $ 4,307 $ 1,240 $ 273,665
60%-69.99%   115,475   464   -   115,939
70%-79.99%   26,145   -   -   26,145
Greater than 80%   -   -   -   -
  Total commercial and agricultural mortgage loans $ 409,738 $ 4,771 $ 1,240 $ 415,749

    Debt Service Coverage Ratio - December 31, 2014
    Greater than 1.2X 1.0X to <1.2X Less than 1.0X Total
               
Loan-to-Value Ratio (in thousands)
0%-59.99% $ 262,853 $ 4,295 $ 10,489 $ 277,637
60%-69.99%   115,708   468   -   116,176
70%-79.99%   25,034   1,458   -   26,492
Greater than 80%   -   -   -   -
  Total commercial and agricultural mortgage loans $ 403,595 $ 6,221 $ 10,489 $ 420,305
[1] _____________ Includes cash flow hedges of $13.0 million and $5.0 million as of March 31, 2015 and December 31, 2014, respectively and ($3) million and ($4) million as of March 31, 2014 and December 31, 2013, respectively.