Investments (Tables)
 9 Months Ended
Sep. 30, 2014
Investments [Abstract]  
Schedule of Amortized Cost and Fair Value of Securities
The following table provides amortized cost and fair value of securities by asset class at September 30, 2014.
 
 
Amortized
Cost
 
Gross
Unrealized
 
Fair
Value
 
Gains
 
Losses
 
U.S. Treasury securities and obligations of
U.S. Government
$
163,424

 
$
8,379

 
$
368

 
$
171,435

Federal agencies 1
19,765

 
2,458

 
—

 
22,223

Federal agency issued
 
 
 
 
 
 
 
   residential mortgage-backed securities 1
46,736

 
4,823

 
2

 
51,557

Subtotal
229,925

 
15,660

 
370

 
245,215

Corporate obligations:
 
 
 
 
 
 
 
Industrial
529,296

 
32,223

 
2,374

 
559,145

Energy
225,524

 
16,083

 
2,210

 
239,397

Communications and technology
227,580

 
16,362

 
513

 
243,429

Financial
275,575

 
19,010

 
842

 
293,743

Consumer
512,689

 
27,705

 
2,093

 
538,301

Public utilities
238,974

 
26,376

 
320

 
265,030

Subtotal
2,009,638

 
137,759

 
8,352

 
2,139,045

Corporate private-labeled residential
mortgage-backed securities
95,565

 
5,008

 
144

 
100,429

Municipal securities
135,118

 
19,064

 
4

 
154,178

Other
92,918

 
6,246

 
2,818

 
96,346

Redeemable preferred stocks
17,481

 
170

 
948

 
16,703

Fixed maturity securities
2,580,645

 
183,907

 
12,636

 
2,751,916

Equity securities
23,666

 
1,837

 
777

 
24,726

Total
$
2,604,311

 
$
185,744

 
$
13,413

 
$
2,776,642


 1 
Federal agency securities are not backed by the full faith and credit of the U.S. Government.
The following table provides amortized cost and fair value of securities by asset class at December 31, 2013.
 
 
Amortized
Cost
 
Gross
Unrealized
 
Fair
Value
 
Gains
 
Losses
 
U.S. Treasury securities and
     obligations of U.S. Government
$
134,198

 
$
6,653

 
$
1,831

 
$
139,020

Federal agencies 1
19,756

 
2,312

 
—

 
22,068

Federal agency issued
 
 
 
 
 
 
 
   residential mortgage-backed securities 1
56,738

 
5,392

 
2

 
62,128

Subtotal
210,692

 
14,357

 
1,833

 
223,216

Corporate obligations:
 
 
 
 
 
 
 
Industrial
515,395

 
27,051

 
7,667

 
534,779

Energy
211,115

 
15,462

 
3,832

 
222,745

Communications and technology
222,277

 
12,938

 
1,672

 
233,543

Financial
266,693

 
18,824

 
2,040

 
283,477

Consumer
473,627

 
25,936

 
5,807

 
493,756

Public utilities
228,551

 
24,780

 
954

 
252,377

Subtotal
1,917,658

 
124,991

 
21,972

 
2,020,677

Corporate private-labeled residential
mortgage-backed securities
114,219

 
3,179

 
916

 
116,482

Municipal securities
138,136

 
9,488

 
5

 
147,619

Other
97,769

 
4,422

 
4,317

 
97,874

Redeemable preferred stocks
15,144

 
—

 
2,392

 
12,752

Fixed maturity securities
2,493,618

 
156,437

 
31,435

 
2,618,620

Equity securities
23,691

 
1,871

 
2,446

 
23,116

Total
$
2,517,309

 
$
158,308

 
$
33,881

 
$
2,641,736

 1 
Federal agency securities are not backed by the full faith and credit of the U.S. Government.
Schedule of Distribution of Maturities for Fixed Maturity Securities Available for Sale
The following table provides the distribution of maturities for fixed maturity securities available for sale at September 30, 2014. Expected maturities may differ from these contractual maturities since borrowers may have the right to call or prepay obligations.
 
 
 
 
Amortized
Cost
 
Fair
Value
Due in one year or less
$
130,310

 
$
132,753

Due after one year through five years
744,106

 
813,075

Due after five years through ten years
1,043,438

 
1,081,193

Due after ten years
439,637

 
488,244

Securities with variable principal payments
205,673

 
219,948

Redeemable preferred stocks
17,481

 
16,703

Total
$
2,580,645

 
$
2,751,916

The following table provides the distribution of maturities for fixed maturity securities available for sale with unrealized losses at September 30, 2014 and December 31, 2013. Expected maturities may differ from these contractual maturities since borrowers may have the right to call or prepay obligations.
 
 
September 30, 2014
 
December 31, 2013
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
Fixed maturity securities available for sale:
 
 
 
 
 
 
 
Due in one year or less
$
5,292

 
$
1

 
$
—

 
$
—

Due after one year through five years
16,116

 
580

 
29,812

 
268

Due after five years through ten years
264,400

 
7,325

 
417,859

 
20,118

Due after ten years
64,995

 
3,633

 
132,018

 
7,740

Total
350,803

 
11,539

 
579,689

 
28,126

Securities with variable principal payments
5,226

 
149

 
33,503

 
917

Redeemable preferred stocks
10,690

 
948

 
12,752

 
2,392

Total
$
366,719

 
$
12,636

 
$
625,944

 
$
31,435
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value
The following table provides information regarding fixed maturity and equity security investments available for sale with unrealized losses by length of time at September 30, 2014.
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
U.S. Treasury securities and
obligations of U.S. Government
$
10,549

 
$
55

 
$
9,762

 
$
313

 
$
20,311

 
$
368

Federal agency issued residential
      mortgage-backed securities 1
67

 
2

 
287

 
—

 
354

 
2

Subtotal
10,616

 
57

 
10,049

 
313

 
20,665

 
370

Corporate obligations:
 
 
 
 
 
 
 
 
 
 
 
Industrial
26,336

 
99

 
49,956

 
2,275

 
76,292

 
2,374

Energy
25,432

 
867

 
37,074

 
1,343

 
62,506

 
2,210

Communications and technology
11,985

 
157

 
14,643

 
356

 
26,628

 
513

Financial
5,000

 
1

 
16,081

 
841

 
21,081

 
842

Consumer
43,604

 
491

 
39,686

 
1,602

 
83,290

 
2,093

Public utilities
6,473

 
13

 
6,689

 
307

 
13,162

 
320

Subtotal
118,830

 
1,628

 
164,129

 
6,724

 
282,959

 
8,352

Corporate private-labeled residential
mortgage-backed securities
4,581

 
144

 
—

 
—

 
4,581

 
144

Municipal securities
3,030

 
4

 
—

 
—

 
3,030

 
4

Other
6,662

 
181

 
38,132

 
2,637

 
44,794

 
2,818

Redeemable preferred stocks
1,470

 
42

 
9,220

 
906

 
10,690

 
948

Fixed maturity securities
145,189

 
2,056

 
221,530

 
10,580

 
366,719

 
12,636

Equity securities
—

 
—

 
11,508

 
777

 
11,508

 
777

Total
$
145,189

 
$
2,056

 
$
233,038

 
$
11,357

 
$
378,227

 
$
13,413

 1 
Federal agency securities are not backed by the full faith and credit of the U.S. Government.
The following table provides information regarding fixed maturity and equity security investments available for sale with unrealized losses by length of time at December 31, 2013.
 
Less Than 12 Months
 
12 Months or Longer
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
U.S. Treasury securities and
obligations of U.S. Government
$
44,951

 
$
1,795

 
$
749

 
$
36

 
$
45,700

 
$
1,831

Federal agency issued residential
      mortgage-backed securities 1
37

 
—

 
288

 
2

 
325

 
2

Subtotal
44,988

 
1,795

 
1,037

 
38

 
46,025

 
1,833

Corporate obligations:
 
 
 
 
 
 
 
 
 
 
 
Industrial
146,454

 
5,718

 
22,071

 
1,949

 
168,525

 
7,667

Energy
70,015

 
3,366

 
5,518

 
466

 
75,533

 
3,832

Communications and technology
43,477

 
1,672

 
—

 
—

 
43,477

 
1,672

Financial
25,300

 
866

 
4,680

 
1,174

 
29,980

 
2,040

Consumer
136,745

 
5,807

 
—

 
—

 
136,745

 
5,807

Public utilities
17,476

 
575

 
3,617

 
379

 
21,093

 
954

Subtotal
439,467

 
18,004

 
35,886

 
3,968

 
475,353

 
21,972

Corporate private-labeled residential
mortgage-backed securities
33,179

 
916

 
—

 
—

 
33,179

 
916

Municipal securities
2,044

 
5

 
—

 
—

 
2,044

 
5

Other
16,691

 
726

 
39,900

 
3,591

 
56,591

 
4,317

Redeemable preferred stocks
12,752

 
2,392

 
—

 
—

 
12,752

 
2,392

Fixed maturity securities
549,121

 
23,838

 
76,823

 
7,597

 
625,944

 
31,435

Equity securities
9,731

 
2,404

 
131

 
42

 
9,862

 
2,446

Total
$
558,852

 
$
26,242

 
$
76,954

 
$
7,639

 
$
635,806

 
$
33,881

 1 
Federal agency securities are not backed by the full faith and credit of the U.S. Government.
Reconciliation of Credit Losses Recognized in Earnings on Fixed Maturity Securities Held by the Company
The following table provides a reconciliation of credit losses recognized in earnings on fixed maturity securities held by the Company for which a portion of the other-than-temporary loss was recognized in other comprehensive income (loss).
 
Quarter Ended
 
Nine Months Ended
 
September 30
 
September 30
 
2014
 
2013
 
2014
 
2013
Credit losses on securities held at beginning of the period
in accumulated other comprehensive income
$
16,634

 
$
15,611

 
$
16,375

 
$
15,260

Additions for credit losses not previously recognized in
other-than-temporary impairment
20

 
—

 
24

 
27

Additions for increases in the credit loss for which an other-
than-temporary impairment was previously recognized
when there was no intent to sell the security before
recovery of its amortized cost basis
312

 
95

 
577

 
428

Reductions for securities sold during the period
—

 
—

 
—

 
—

Reductions for securities previously recognized in other
comprehensive income (loss) because of intent to sell the
security before recovery of its amortized cost basis
—

 
—

 
—

 
—

Reductions for increases in cash flows expected to be
collected that are recognized over the remaining
life of the security
(4
)
 
(5
)
 
(14
)
 
(14
)
Credit losses on securities held at the end of the period
in accumulated other comprehensive income
$
16,962

 
$
15,701

 
$
16,962

 
$
15,701
Schedule of Realized Gain (Loss) on Investments
The following table provides detail concerning realized investment gains and losses for the third quarters and nine months ended September 30, 2014 and 2013.
 
 
Quarter Ended
 
Nine Months Ended
 
September 30
 
September 30
 
2014
 
2013
 
2014
 
2013
Gross gains resulting from:
 
 
 
 
 
 
 
Sales of investment securities
$
61

 
$
—

 
$
672

 
$
118

Investment securities called and other
179

 
2,276

 
1,841

 
4,791

Real estate
495

 
—

 
834

 
20

Total gross gains
735

 
2,276

 
3,347

 
4,929

Gross losses resulting from:
 
 
 
 
 
 
 
Sales of investment securities
(15
)
 
—

 
(15
)
 
—

Investment securities called and other
(46
)
 
(164
)
 
(357
)
 
(524
)
Sale of real estate and joint venture
(60
)
 
—

 
(60
)
 
(89
)
Mortgage loans
(266
)
 
(8
)
 
(356
)
 
(44
)
Total gross losses
(387
)
 
(172
)
 
(788
)
 
(657
)
Change in allowance for potential future losses on
mortgage loans
630

 
(85
)
 
926

 
(47
)
Amortization of DAC and VOBA
3

 
(63
)
 
(55
)
 
(91
)
Net realized investment gains, excluding other-than-
temporary impairment losses
981

 
1,956

 
3,430

 
4,134

 
 
 
 
 
 
 
 
Net impairment losses recognized in earnings:
 
 
 
 
 
 
 
Other-than-temporary impairment losses on fixed
maturity and equity securities
(765
)
 
(116
)
 
(1,221
)
 
(575
)
Portion of loss recognized in other comprehensive
income (loss)
433

 
21

 
620

 
120

Net other-than-temporary impairment losses
recognized in earnings
(332
)
 
(95
)
 
(601
)
 
(455
)
Net realized investment gains
$
649

 
$
1,861

 
$
2,829

 
$
3,679
Schedule of Sales of Fixed Maturity and Equity Securities Excluding Maturities and Calls
The table below details proceeds from the sale of fixed maturity and equity securities, excluding maturities and calls, for the third quarters and nine months ended September 30, 2014 and 2013.
 
 
Quarter Ended
 
Nine Months Ended
 
September 30
 
September 30
 
2014
 
2013
 
2014
 
2013
Proceeds
$
9,492

 
$
—

 
$
22,135

 
$
9,130
Gross Mortgage Loan Principal Outstanding and Allowance for Potential Future Losses
The following table identifies the gross mortgage loan principal outstanding and the allowance for potential future losses at September 30, 2014 and December 31, 2013.
 
September 30
2014
 
December 31
2013
Principal outstanding
$
572,811

 
$
632,507

Allowance for potential future losses
(2,325
)
 
(3,251
)
Carrying value
$
570,486

 
$
629,256
Schedule of Amount of Mortgage Loans
The following table summarizes the amount of mortgage loans held by the Company at September 30, 2014 and December 31, 2013, segregated by year of origination. Purchased loans are shown in the year acquired by the Company, although the individual loans may have been initially originated in prior years.
 
September 30
2014
 
%
of Total
 
December 31
2013
 
%
of Total
Prior to 2005
$
31,473

 
5
%
 
$
41,324

 
6
%
2005
25,035

 
4
%
 
28,111

 
4
%
2006
19,629

 
3
%
 
24,744

 
4
%
2007
20,471

 
4
%
 
27,009

 
4
%
2008
23,422

 
4
%
 
28,051

 
4
%
2009
22,808

 
4
%
 
37,723

 
6
%
2010
56,579

 
10
%
 
61,236

 
10
%
2011
94,203

 
16
%
 
118,459

 
19
%
2012
165,565

 
30
%
 
184,749

 
29
%
2013
78,744

 
14
%
 
81,101

 
14
%
2014
34,882

 
6
%
 
—

 
—
%
Total
$
572,811

 
100
%
 
$
632,507

 
100
%
Schedule of Mortgage Loans by Geographic Location
The following table identifies mortgage loans by geographic location at September 30, 2014 and December 31, 2013.
 
September 30
2014
 
%
of Total
 
December 31
2013
 
%
of Total
Pacific
$
162,401

 
29
%
 
$
181,690

 
29
%
West north central
81,991

 
14
%
 
91,687

 
14
%
West south central
93,435

 
16
%
 
101,019

 
16
%
Mountain
69,412

 
12
%
 
78,116

 
12
%
South Atlantic
63,610

 
11
%
 
66,686

 
11
%
Middle Atlantic
22,241

 
4
%
 
31,495

 
5
%
East north central
54,838

 
10
%
 
57,395

 
9
%
East south central
24,883

 
4
%
 
24,419

 
4
%
Total
$
572,811

 
100
%
 
$
632,507

 
100
%
Schedule of Concentration of Mortgage Loans by State Greater than Five Percent
The following table identifies the concentration of mortgage loans by state greater than 5% of total at September 30, 2014 and December 31, 2013.
 
September 30
2014
 
%
of Total
 
December 31
2013
 
%
of Total
California
$
136,276

 
24
%
 
$
149,065

 
24
%
Texas
89,186

 
16
%
 
95,205

 
15
%
Minnesota
58,470

 
10
%
 
64,464

 
10
%
Florida
28,821

 
5
%
 
34,334

 
5
%
All others
260,058

 
45
%
 
289,439

 
46
%
Total
$
572,811

 
100
%
 
$
632,507

 
100
%
Schedule of Mortgage Loans by Property Type
The following table identifies mortgage loans by property type at September 30, 2014 and December 31, 2013. The Other category consists principally of apartments and retail properties.
 
September 30
2014
 
%
of Total
 
December 31
2013
 
%
of Total
Industrial
$
303,812

 
53
%
 
$
328,478

 
52
%
Office
166,054

 
29
%
 
184,529

 
29
%
Medical
29,687

 
5
%
 
39,531

 
6
%
Other
73,258

 
13
%
 
79,969

 
13
%
Total
$
572,811

 
100
%
 
$
632,507

 
100
%
Schedule of Carrying Amount of Mortgage Loans by Maturity
The table below identifies mortgage loans by maturity at September 30, 2014 and December 31, 2013.
 
September 30
2014
 
%
of Total
 
December 31
2013
 
%
of Total
Due in one year or less
$
30,036

 
5
%
 
$
22,464

 
4
%
Due after one year through five years
139,024

 
24
%
 
169,146

 
27
%
Due after five years through ten years
189,693

 
33
%
 
244,667

 
38
%
Due after ten years
214,058

 
38
%
 
196,230

 
31
%
Total
$
572,811

 
100
%
 
$
632,507

 
100
%