Investments (Tables)
 12 Months Ended
Dec. 31, 2013
Investments [Abstract]  
Fixed Maturities and Equity Securities, Available-for-sale Securities
     December 31, 2013
                   
               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 $89,497 $5,910 $1,882 $93,525 $ -
Obligations of U.S. states and their political               
 subdivisions  83,807  1,518  6,374  78,951   -
Foreign government bonds  20,357  3,640   -  23,997   -
Public utilities  796,747  32,303  29,281  799,769   -
Redeemable preferred stock  681  126   -  807   -
All other corporate securities  3,661,419  168,717  89,343  3,740,793  (252)
Asset-backed securities (1)  216,081  8,687  2,677  222,091  (7,783)
Commercial mortgage-backed securities  510,255  20,316  8,563  522,008   -
Residential mortgage-backed securities (2)  160,089  10,870  1,499  169,460  (973)
Total fixed maturities, available-for-sale $5,538,933 $252,087 $139,619 $5,651,401 $(9,008)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $131 $29 $ - $160   
 Industrial, miscellaneous & other  4  12   -  16   
 Mutual funds  91  3  3  91   
Non-redeemable preferred stocks  341  163   -  504   
Total equity securities, available-for-sale $567 $207 $3 $771   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, 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 $14 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, 2012
                   
               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 $172,541 $15,088 $10 $187,619 $ -
Obligations of U.S. states and their political               
 subdivisions  79,166  6,516  485  85,197   -
Foreign government bonds  21,709  5,802   -  27,511   -
Public utilities  620,654  68,512  1,334  687,832   -
Redeemable preferred stock  6,400  360   -  6,760   -
Corporate securities  3,601,052  309,470  6,480  3,904,042  (344)
Asset-backed securities (1)  360,258  19,362  6,146  373,474  (21,330)
Commercial mortgage-backed securities  446,558  42,932  69  489,421   -
Residential mortgage-backed securities (2)  353,917  20,228  236  373,909  (1,095)
Total fixed maturities, available-for-sale $5,662,255 $488,270 $14,760 $6,135,765 $(22,769)
                   
Equity securities, available-for-sale               
Common Stocks:               
 Public utilities $ - $ - $ - $ -   
 Industrial, miscellaneous & other (4)  1,566  1,118   -  2,684   
 Mutual funds (4)  157  6  9  154   
Non-redeemable preferred stocks  1,396  93   -  1,489   
Total equity securities, available-for-sale $3,119 $1,217 $9 $4,327   

_____________

  • Includes credit-tranched securities collateralized by sub-prime mortgages, 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 $22 million of net unrealized gains or losses on impaired available-for-sale securities relating to changes in the value of such securities subsequent to the impairment measurement date.
  • Prior period has been reclassified to conform to the current period presentation.
Investments Classified by Contractual Maturity Date
     Available-for-Sale
     Amortized Fair
     Cost Value
          
     (in thousands)
Due in one year or less $ 264,190 $ 268,309
Due after one year through five years   1,110,508   1,200,139
Due after five years through ten years   1,422,256   1,463,339
Due after ten years   1,855,554   1,806,055
Asset-backed securities   216,081   222,091
Commercial mortgage-backed securities   510,255   522,008
Residential mortgage-backed securities   160,089   169,460
  Total $ 5,538,933 $ 5,651,401
Sources of Fixed Maturity Proceeds, Related Investment Gains (Losses), and Losses on Impairments of Fixed Maturities and Equity Securities
             
     2013 2012 2011
             
  (in thousands)
Fixed maturities, available-for-sale         
  Proceeds from sales $816,125 $116,493 $218,200
  Proceeds from maturities/repayments  760,433  903,272  836,724
  Gross investment gains from sales, prepayments and maturities  60,261  31,720  83,600
  Gross investment losses from sales and maturities  (22,380)  (1,171)  (411)
Equity securities, available-for-sale         
  Proceeds from sales $13,603 $9,862 $6,397
  Proceeds from maturities/repayments   3   -  3,958
  Gross investment gains from sales  1,337  1,027  3,857
  Gross investment losses from sales  (791)  (529)  0
Fixed maturity and equity security impairments         
  Net writedowns for other-than-temporary impairment losses          
   on fixed maturities recognized in earnings (1) $(4,441) $(6,236) $(8,969)
  Writedowns for impairments on equity securities  (67)  (2,168)  (2,255)

_____________

  • Excludes the portion of other-than-temporary impairments recorded in “Other comprehensive income (loss),” representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of the impairment.

 
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
  Year Ended Year Ended
  December 31, December 31,
  2013 2012
         
    (in thousands)
         
         
Balance, beginning of period $27,702 $31,507
Credit loss impairments previously recognized on securities which matured, paid       
 down, prepaid or were sold during the period  (14,330)  (4,126)
Credit loss impairments previously recognized on securities impaired to fair value       
 during the period   -   (3,240)
Credit loss impairment recognized in the current period on securities not previously      
 impaired  31  15
Additional credit loss impairments recognized in the current period on securities      
 previously impaired  798  2,266
Increases due to the passage of time on previously recorded credit losses  915  2,430
Accretion of credit loss impairments previously recognized due to an increase in      
 cash flows expected to be collected  (456)  (1,150)
Balance, end of period $14,660 $27,702
Trading Account Assets Disclosure
     December 31, 2013 December 31, 2012
     Amortized Fair Amortized Fair
     Cost Value Cost Value
                
  (in thousands)
                
             
Fixed maturities $14,118 $16,162 $7,647 $8,099
Equity securities (1)  1,388  2,730   3,083   3,277
  Total trading account assets  $15,506 $18,892 $10,730 $11,376

_____________

  • Included in equity securities are perpetual preferred stock securities that have characteristics of both debt and equity securities.

 
Commercial Mortgage and Other Loans
     December 31, 2013   December 31, 2012 
     Amount % of  Amount % of 
     (in thousands) Total  (in thousands) Total 
                  
Commercial mortgage and other loans by property type:              
Retail  $467,059  30.5% $461,939  31.4%
Apartments/Multi-Family   298,365  19.5   239,623  16.3 
Industrial  272,239  17.7   273,900  18.6 
Office  195,499  12.8   237,566  16.2 
Other  102,294   6.6   89,548   6.1 
Hospitality  90,085   5.9   50,052   3.4 
                  
  Total commercial mortgage loans  1,425,541   93.0   1,352,628   92.0 
Agricultural property loans  107,118   7.0   117,377   8.0 
  Total commercial and agricultural mortgage loans by property               
   type  1,532,659  100.0%  1,470,005  100.0%
Valuation allowance  (8,904)      (6,028)    
                  
  Total net commercial and agricultural mortgage loans by property              
   type  1,523,755      1,463,977    
                  
Other Loans              
Uncollateralized loans  8,410       -    
                  
  Total other loans  8,410       -    
                  
  Total commercial mortgage and other loans $1,532,165     $1,463,977    
Allowance for Losses
     December 31, 2013 December 31, 2012 December 31, 2011
             
  (in thousands)
Allowance for losses, beginning of year $6,028 $12,813 $21,428
Addition to / (release of) allowance of losses  2,876  (1,551)  (8,615)
Charge-offs, net of recoveries   -  (5,234)   -
Allowance for losses, end of year (1) $8,904 $6,028 $12,813

_____________

  • Agricultural loans represent $0.3 million, $0.4 million and $0.4 million of the ending allowance at December 31, 2013, 2012 and 2011, respectively.

 
Allowance for Credit Losses and Recorded Investment in Commercial Mortgage and Other Loans
     December 31, 2013 December 31, 2012
      
  (in thousands)
Allowance for Credit Losses:      
Ending balance: individually evaluated for impairment (1) $ 3,084 $ 372
Ending balance: collectively evaluated for impairment (2)   5,820   5,656
Total ending balance $ 8,904 $ 6,028
          
Recorded Investment: (3)      
Ending balance gross of reserves: individually evaluated for impairment (1) $ 6,392 $ 6,415
Ending balance gross of reserves: collectively evaluated for impairment (2)   1,534,677   1,463,590
Total ending balance, gross of reserves $ 1,541,069 $ 1,470,005

_____________

  • There were no agricultural or uncollateralized loans individually evaluated for impairments at December 31, 2013 and 2012.
  • Agricultural loans collectively evaluated for impairment had a recorded investment of $107 million and $117 million and a related allowance of $0.3 million and $0.4 million at December 31, 2013 and 2012, respectively. Uncollateralized loans collectively evaluated for impairment had a recorded investment of $8 million and $0 million at December 31, 2013 and 2012, respectively, and no related allowance for both periods.
  • Recorded investment reflects the balance sheet carrying value gross of related allowance.

 
Schedule Of Other Long Term Investments [Text Block]
  2013 2012
       
  (in thousands)
Company’s investment in Separate accounts $ 29,739 $ 28,584
Joint ventures and limited partnerships   196,538   136,977
Derivatives   427   118,928
Total other long-term investments $ 226,704 $ 284,489
Net Investment Income
    2013 2012 2011
            
    (in thousands)
Fixed maturities, available-for-sale $278,747 $270,790 $300,850
Equity securities, available-for-sale   1  52  227
Trading account assets  657  981  1,582
Commercial mortgage and other loans  84,006  84,232  81,282
Policy loans  59,287  58,007  56,716
Short-term investments and cash equivalents  654  1,003  1,052
Other long-term investments  15,023  21,224  16,421
  Gross investment income  438,375  436,289  458,130
Less: investment expenses  (19,364)  (18,779)  (18,180)
  Net investment income $419,011 $417,510 $439,950
Realized Gain (Loss) on Investments
    2013 2012 2011
            
    (in thousands)
Fixed maturities $33,440 $24,314 $74,220
Equity securities  480  (1,670)  1,602
Commercial mortgage and other loans  5,494  7,307  8,615
Joint ventures and limited partnerships  (83)   -  (265)
Derivatives  (52,799)  (186,425)  177,855
Other  18  27  56
  Realized investment gains (losses), net $(13,450) $(156,447) $262,083
Components of Accumulated Other Comprehensive Income
   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, 2010 $249 $182,850 $183,099
Change in component during period (2)  (116)  30,645  30,529
Balance, December 31, 2011 $133 $213,495 $213,628
Change in component during period (2)  124  53,709  53,833
Balance, December 31, 2012 $257 $267,204 $267,461
Change in other comprehensive income         
  before reclassifications   224  (290,636)  (290,412)
Amounts reclassified from AOCI    -  (33,920)  (33,920)
Income tax benefit (expense)  (78)  113,595  113,517
Balance, December 31, 2013 $403 $56,243 $56,646

_____________

  • Includes cash flow hedges of ($5) million, $0 million and $3 million as of December 31, 2013, 2012 and 2011, respectively.
  • Net of taxes.
Reclassification Out Of Accumulated Other Comprehensive Income
Reclassifications out of Accumulated Other Comprehensive Income (Loss)   
              
      Year Ended Year Ended Year Ended
      December 31, 2013 December 31, 2012 December 31, 2011
              
      (in thousands)
Amounts reclassified from AOCI (1)(2):         
Net unrealized investment gains (losses):         
 Cash flow hedges - Currency/Interest rate (3) $ 329 $ 1,754 $ (108)
 Net unrealized investment gains (losses) on available-for-sale securities (4)   33,591   20,890   75,930
  Total net unrealized investment gains (losses)   33,920   22,644   75,822
              
    Total reclassifications for the period $ 33,920 $ 22,644 $ 75,822

_____________

  • 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 11 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, future policy benefits and policyholders' account balances.
Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policy Holder Account Balances (2) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2010 $ (24,704) $ 13,813 $ (7,103) $ 6,271 $ (11,723)
Net investment gains (losses) on               
 investments arising during the period   (3,779)   -   -   1,322   (2,457)
Reclassification adjustment for (gains)               
 losses included in net income    9,623   -   -   (3,369)   6,254
Reclassification adjustment for OTTI losses               
 excluded from net income(1)   212   -   -   (75)   137
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   (3,626)   -   1,268   (2,358)
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   4,167   (1,459)   2,708
Balance, December 31, 2011 $ (18,648) $ 10,187 $ (2,936) $ 3,958 $ (7,439)
Net investment gains (losses) on               
 investments arising during the period   11,444   -   -   (4,005)   7,439
Reclassification adjustment for (gains)               
 losses included in net income    6,755   -   -   (2,364)   4,391
Reclassification adjustment for OTTI losses               
 excluded from net income(1)   (169)   -   -   59   (110)
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   (9,892)   -   3,462   (6,430)
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   3,499   (1,225)   2,274
Balance, December 31, 2012 $ (618) $ 295 $ 563 $ (115) $ 125
Net investment gains (losses) on               
 investments arising during the period   1,053   -   -   (369)   684
Reclassification adjustment for (gains)               
 losses included in net income    4,114   -   -   (1,440)   2,674
Reclassification adjustment for OTTI losses               
 excluded from net income(1)   (51)   -   -   18   (33)
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   (3,619)   -   1,266   (2,353)
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   1,256   (439)   817
Balance, December 31, 2013 $ 4,498 $ (3,324) $ 1,819 $ (1,079) $ 1,914

_____________

  • Represents “transfers in” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
  • Balances are net of reinsurance.

 
All Other Net Unrealized Investment Gain (Loss) AOCI Rollforward
     Net Unrealized Gains (Losses) on Investments (1) Deferred Policy Acquisition Costs and Other Costs Future Policy Benefits and Policy Holder Account Balances (3) Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related To Net Unrealized Investment Gains (Losses)
                   
  (in thousands)
Balance, December 31, 2010 $ 400,404 $ (194,158) $ 92,690 $ (104,367) $ 194,569
Net investment gains (losses) on               
 investments arising during the period   128,890   -   -   (45,090)   83,800
Reclassification adjustment for (gains)               
 losses included in net income   (85,445)   -   -   29,905   (55,540)
Reclassification adjustment for OTTI losses               
 excluded from net income(2)   (212)   -   -   73   (139)
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   14,638   -   (5,124)   9,514
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   (17,345)   6,070   (11,275)
Balance, December 31, 2011 $ 443,637 $ (179,520) $ 75,345 $ (118,533) $ 220,929
Net investment gains (losses) on               
 investments arising during the period   90,693   -   -   (31,738)   58,955
Reclassification adjustment for (gains)               
 losses included in net income   (29,399)   -   -   10,290   (19,109)
Reclassification adjustment for OTTI losses               
 excluded from net income(2)   169   -   -   (59)   110
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   (40,688)   -   14,065   (26,623)
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   50,488   (17,671)   32,817
Balance, December 31, 2012 $ 505,100 $ (220,208) $ 125,833 $ (143,646) $ 267,079
Net investment gains (losses) on               
 investments arising during the period   (343,964)   -   -   120,388   (223,576)
Reclassification adjustment for (gains)               
 losses included in net income   (38,034)   -   -   13,312   (24,722)
Reclassification adjustment for OTTI losses               
 excluded from net income(2)   51   -   -   (18)   33
Impact of net unrealized investment (gains)               
 losses on deferred policy acquisition costs   -   177,178   -   (62,012)   115,166
Impact of net unrealized investment (gains)               
 losses on future policy benefits               
 and policyholders' account balances   -   -   (122,540)   42,889   (79,651)
Balance, December 31, 2013 $ 123,153 $ (43,030) $ 3,293 $ (29,087) $ 54,329

_____________

  • Includes cash flow hedges. See Note 11 for information on cash flow hedges.
  • Represents “transfers out” related to the portion of OTTI losses recognized during the period that were not recognized in earnings for securities with no prior OTTI loss.
  • Balances are net of reinsurance.

 
Unrealized Gains and (Losses) on Investments
     2013 2012 2011
             
  (in thousands)
Fixed maturity securities on which an OTTI loss has been recognized $ 4,498 $ (618) $ (18,648)
Fixed maturity securities, available-for-sale - all other   107,970   474,128   411,366
Equity securities, available-for-sale   204   1,208   (1,359)
Derivatives designated as cash flow hedges (1)   (4,701)   147   2,523
Other investments   19,680   29,617   31,107
Net unrealized gains (losses) on investments $ 127,651 $ 504,482 $ 424,989

_____________

  • See Note 11 for more information on cash flow hedges.

 
Duration Of Gross Unrealized Losses On Fixed Maturity Securities Disclosures
    December 31, 2013
    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 $24,123 $1,882 $ - $ - $24,123 $1,882
Obligations of U.S. states and their                  
 political subdivisions  51,216  5,904   2,496   470  53,712  6,374
Foreign government bonds   -   -   -   -   -   -
Corporate securities  1,596,468  101,780  97,731  16,844  1,694,199  118,624
Asset-backed securities  93,021  1,418  11,782  1,259  104,803  2,677
Commercial mortgage-backed securities  116,371  6,706  19,605  1,857  135,976  8,563
Residential mortgage-backed securities  42,121  1,472  3,225  27  45,346  1,499
  Total $1,923,320 $119,162 $134,839 $20,457 $2,058,159 $139,619

    December 31, 2012
    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 $4,338 $10 $ - $ - $4,338 $10
Obligations of U.S. states and their                   
 political subdivisions  21,128  485   -   -  21,128  485
Foreign government bonds   -   -   -   -   -   -
Corporate securities  290,127  7,070  18,221  744  308,348  7,814
Asset-backed securities  44,821  76  24,997  6,070  69,818  6,146
Commercial mortgage-backed securities  12,549  60  521  9  13,070  69
Residential mortgage-backed securities  20,276  164  4,347  72  24,623  236
  Total $393,239 $7,865 $48,086 $6,895 $441,325 $14,760
Duration Of Gross Unrealized Losses On Equity Securities
Equity securities, available-for-sale $ 44 $ 3 $ - $ - $ 44 $ 3

Equity securities, available-for-sale $54 $9 $ - $ - $54 $9
Securities Pledged
        
     2013 2012
          
  (in thousands)
Fixed maturity securities, available for sale $ 81,849 $ 46,115
Trading account assets   -   187
Equity Securities   -   9
Total securities pledged $ 81,849 $ 46,311