(Exact name of registrant as specified in its charter) Iowa 42-1411715 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 5400 University Avenue, West Des Moines,Iowa50266-5997 (Address of principal executive offices) (Zip Code) (515) 225-5400 (Registrant’s telephone number, including area code) | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class A Common Stock, without par value | FFG | New York Stock Exchange |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: | ||
Title of each class | Outstanding at | |
Class A Common Stock, without par value | ||
Class B Common Stock, without par value | 11,413 |
PART I. | FINANCIAL INFORMATION | |
Item 1. | Financial Statements (Unaudited) | |
Consolidated Balance Sheets | ||
Consolidated Statements of Operations | ||
Consolidated Statements of Comprehensive Income | ||
Consolidated Statements of Changes in Stockholders’ Equity | ||
Consolidated Statements of Cash Flows | ||
Notes to Consolidated Financial Statements | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II. | OTHER INFORMATION | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
SIGNATURES |
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
Assets | ||||||||||||||
Investments: | ||||||||||||||
Fixed maturities - available for sale, at fair value (amortized cost: 2019 - $6,873,217; 2018 - $6,856,277) | $ | 7,231,584 | $ | 7,033,045 | ||||||||||
Equity securities at fair value (cost: 2019 - $104,814; 2018 - $93,564) | 108,525 | 92,857 | ||||||||||||
Fixed maturities - available for sale, at fair value (amortized cost: 2019 - $6,909,984; 2018 - $6,856,277) | $ | 7,484,622 | $ | 7,033,045 | ||||||||||
Equity securities at fair value (cost: 2019 - $101,847; 2018 - $93,564) | 106,021 | 92,857 | ||||||||||||
Mortgage loans | 1,023,655 | 1,039,829 | 1,019,124 | 1,039,829 | ||||||||||
Real estate | 1,543 | 1,543 | 1,543 | 1,543 | ||||||||||
Policy loans | 199,230 | 197,366 | 200,246 | 197,366 | ||||||||||
Short-term investments | 11,515 | 15,713 | 9,521 | 15,713 | ||||||||||
Other investments | 44,663 | 33,765 | 48,833 | 33,765 | ||||||||||
Total investments | 8,620,715 | 8,414,118 | 8,869,910 | 8,414,118 | ||||||||||
Cash and cash equivalents | 6,057 | 19,035 | 13,854 | 19,035 | ||||||||||
Securities and indebtedness of related parties | 64,377 | 60,962 | 68,733 | 60,962 | ||||||||||
Accrued investment income | 80,102 | 74,524 | 73,683 | 74,524 | ||||||||||
Amounts receivable from affiliates | 5,735 | 3,812 | 6,330 | 3,812 | ||||||||||
Reinsurance recoverable | 103,825 | 102,386 | 102,898 | 102,386 | ||||||||||
Deferred acquisition costs | 373,711 | 418,802 | 314,301 | 418,802 | ||||||||||
Value of insurance in force acquired | 6,259 | 10,385 | 3,366 | 10,385 | ||||||||||
Current income taxes recoverable | 3,510 | 4,807 | 2,036 | 4,807 | ||||||||||
Other assets | 169,756 | 163,518 | 179,408 | 163,518 | ||||||||||
Assets held in separate accounts | 614,121 | 561,281 | 625,177 | 561,281 | ||||||||||
Total assets | $ | 10,048,168 | $ | 9,833,630 | $ | 10,259,696 | $ | 9,833,630 |
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Liabilities: | ||||||||||||||
Future policy benefits: | ||||||||||||||
Interest sensitive products | $ | 5,426,491 | $ | 5,403,125 | $ | 5,471,944 | $ | 5,403,125 | ||||||
Traditional life insurance and accident and health products | 1,815,340 | 1,802,346 | 1,826,458 | 1,802,346 | ||||||||||
Other policy claims and benefits | 44,418 | 51,298 | 40,058 | 51,298 | ||||||||||
Supplementary contracts without life contingencies | 303,771 | 303,627 | 302,685 | 303,627 | ||||||||||
Advance premiums and other deposits | 264,544 | 260,252 | 258,295 | 260,252 | ||||||||||
Amounts payable to affiliates | 953 | 1,461 | 3,421 | 1,461 | ||||||||||
Short-term debt payable to non-affiliates | 4,000 | — | ||||||||||||
Long-term debt payable to non-affiliates | 97,000 | 97,000 | 97,000 | 97,000 | ||||||||||
Deferred income taxes | 103,300 | 75,449 | 134,702 | 75,449 | ||||||||||
Other liabilities | 110,709 | 93,532 | 102,414 | 93,532 | ||||||||||
Liabilities related to separate accounts | 614,121 | 561,281 | 625,177 | 561,281 | ||||||||||
Total liabilities | 8,784,647 | 8,649,371 | 8,862,154 | 8,649,371 | ||||||||||
Stockholders’ equity: | ||||||||||||||
FBL Financial Group, Inc. stockholders’ equity: | ||||||||||||||
Preferred stock, without par value, at liquidation value - authorized 10,000,000 shares, issued and outstanding 5,000,000 Series B shares | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,640,927 shares in 2019 and 24,707,402 shares in 2018 | 152,444 | 152,652 | ||||||||||||
Class A common stock, without par value - authorized 88,500,000 shares, issued and outstanding 24,648,472 shares in 2019 and 24,707,402 shares in 2018 | 152,454 | 152,652 | ||||||||||||
Class B common stock, without par value - authorized 1,500,000 shares, issued and outstanding 11,413 shares in 2019 and 2018 | 72 | 72 | 72 | 72 | ||||||||||
Accumulated other comprehensive income | 189,166 | 91,318 | 302,793 | 91,318 | ||||||||||
Retained earnings | 918,718 | 937,097 | 939,143 | 937,097 | ||||||||||
Total FBL Financial Group, Inc. stockholders’ equity | 1,263,400 | 1,184,139 | 1,397,462 | 1,184,139 | ||||||||||
Noncontrolling interest | 121 | 120 | 80 | 120 | ||||||||||
Total stockholders’ equity | 1,263,521 | 1,184,259 | 1,397,542 | 1,184,259 | ||||||||||
Total liabilities and stockholders’ equity | $ | 10,048,168 | $ | 9,833,630 | $ | 10,259,696 | $ | 9,833,630 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Revenues: | ||||||||||||||||||||||
Interest sensitive product charges | $ | 31,266 | $ | 30,098 | $ | 32,534 | $ | 30,906 | $ | 63,800 | $ | 61,004 | ||||||||||
Traditional life insurance premiums | 49,392 | 49,497 | 50,987 | 51,091 | 100,379 | 100,588 | ||||||||||||||||
Net investment income | 109,640 | 101,022 | 104,894 | 103,974 | 214,534 | 204,996 | ||||||||||||||||
Net realized capital gains (losses) | 10,157 | (1,747 | ) | 377 | 841 | 10,534 | (906 | ) | ||||||||||||||
Net other-than-temporary impairment losses recognized in earnings | (869 | ) | (1,040 | ) | — | — | (869 | ) | (1,040 | ) | ||||||||||||
Other income | 3,970 | 4,600 | 4,114 | 3,637 | 8,084 | 8,237 | ||||||||||||||||
Total revenues | 203,556 | 182,430 | 192,906 | 190,449 | 396,462 | 372,879 | ||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||||
Interest sensitive product benefits | 70,596 | 61,345 | 65,223 | 62,637 | 135,819 | 123,982 | ||||||||||||||||
Traditional life insurance benefits | 46,675 | 45,456 | 41,960 | 43,725 | 88,635 | 89,181 | ||||||||||||||||
Policyholder dividends | 2,534 | 2,551 | 2,564 | 2,560 | 5,098 | 5,111 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 36,189 | 39,577 | 38,948 | 37,210 | 75,137 | 76,787 | ||||||||||||||||
Interest expense | 1,212 | 1,213 | 1,212 | 1,213 | 2,424 | 2,426 | ||||||||||||||||
Other expenses | 6,250 | 5,593 | 6,635 | 5,627 | 12,885 | 11,220 | ||||||||||||||||
Total benefits and expenses | 163,456 | 155,735 | 156,542 | 152,972 | 319,998 | 308,707 | ||||||||||||||||
40,100 | 26,695 | 36,364 | 37,477 | 76,464 | 64,172 | |||||||||||||||||
Income taxes | (6,276 | ) | (3,813 | ) | (5,511 | ) | (5,831 | ) | (11,787 | ) | (9,644 | ) | ||||||||||
Equity income, net of related income taxes | 220 | 660 | 1,404 | 1,139 | 1,624 | 1,799 | ||||||||||||||||
Net income | 34,044 | 23,542 | 32,257 | 32,785 | 66,301 | 56,327 | ||||||||||||||||
Net loss (income) attributable to noncontrolling interest | (1 | ) | 23 | |||||||||||||||||||
Net loss attributable to noncontrolling interest | 41 | 18 | 40 | 41 | ||||||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 34,043 | $ | 23,565 | $ | 32,298 | $ | 32,803 | $ | 66,341 | $ | 56,368 | ||||||||||
Earnings per common share | $ | 1.37 | $ | 0.94 | $ | 1.30 | $ | 1.31 | $ | 2.68 | $ | 2.26 | ||||||||||
Earnings per common share - assuming dilution | $ | 1.37 | $ | 0.94 | $ | 1.30 | $ | 1.31 | $ | 2.68 | $ | 2.25 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Net income | $ | 34,044 | $ | 23,542 | $ | 32,257 | $ | 32,785 | $ | 66,301 | $ | 56,327 | ||||||||||
Other comprehensive income (loss) (1) | ||||||||||||||||||||||
Change in net unrealized investment gains/losses | 97,640 | (93,154 | ) | 113,416 | (55,797 | ) | 211,056 | (148,951 | ) | |||||||||||||
Change in underfunded status of postretirement benefit plans | 208 | 262 | 211 | 267 | 419 | 529 | ||||||||||||||||
Total other comprehensive income (loss), net of tax | 97,848 | (92,892 | ) | 113,627 | (55,530 | ) | 211,475 | (148,422 | ) | |||||||||||||
Total comprehensive income (loss), net of tax | 131,892 | (69,350 | ) | 145,884 | (22,745 | ) | 277,776 | (92,095 | ) | |||||||||||||
Comprehensive loss (income) attributable to noncontrolling interest | (1 | ) | 23 | |||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | 41 | 18 | 40 | 41 | ||||||||||||||||||
Total comprehensive income (loss) applicable to FBL Financial Group, Inc. | $ | 131,891 | $ | (69,327 | ) | $ | 145,925 | $ | (22,727 | ) | $ | 277,816 | $ | (92,054 | ) |
(1) | Other comprehensive income (loss) is recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. |
FBL Financial Group, Inc. Stockholders’ Equity | |||||||||||||||||||||||
Series B Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||
Balance at January 1, 2018 | $ | 3,000 | $ | 153,661 | $ | 284,983 | $ | 935,423 | $ | 58 | $ | 1,377,125 | |||||||||||
Cumulative effect of change in accounting principle related to net unrealized gains on equity securities | — | — | (5,869 | ) | 5,869 | — | — | ||||||||||||||||
Net income - three months ended March 31, 2018 | — | — | — | 23,565 | (23 | ) | 23,542 | ||||||||||||||||
Other comprehensive loss | — | — | (92,892 | ) | — | — | (92,892 | ) | |||||||||||||||
Stock-based compensation | — | 218 | — | — | — | 218 | |||||||||||||||||
Purchase of common stock | — | (612 | ) | — | (6,194 | ) | — | (6,806 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (48,753 | ) | — | (48,753 | ) | |||||||||||||||
Balance at March 31, 2018 | $ | 3,000 | $ | 153,267 | $ | 186,222 | $ | 909,872 | $ | 35 | $ | 1,252,396 | |||||||||||
Balance at January 1, 2019 | $ | 3,000 | $ | 152,724 | $ | 91,318 | $ | 937,097 | $ | 120 | $ | 1,184,259 | |||||||||||
Cumulative effect of change in accounting principle related to leases | — | — | — | 595 | — | 595 | |||||||||||||||||
Net income - three months ended March 31, 2019 | — | — | — | 34,043 | 1 | 34,044 | |||||||||||||||||
Other comprehensive income | — | — | 97,848 | — | — | 97,848 | |||||||||||||||||
Stock-based compensation | — | 202 | — | — | — | 202 | |||||||||||||||||
Purchase of common stock | — | (410 | ) | — | (4,167 | ) | — | (4,577 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (38 | ) | — | (38 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (48,812 | ) | — | (48,812 | ) | |||||||||||||||
Balance at March 31, 2019 | $ | 3,000 | $ | 152,516 | $ | 189,166 | $ | 918,718 | $ | 121 | $ | 1,263,521 |
FBL Financial Group, Inc. Stockholders’ Equity | |||||||||||||||||||||||
Series B Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||
Balance at April 1, 2018 | $ | 3,000 | $ | 153,267 | $ | 186,222 | $ | 909,872 | $ | 35 | $ | 1,252,396 | |||||||||||
Cumulative effect of change in accounting principle related to net unrealized gains on equity securities | — | — | 389 | (389 | ) | — | — | ||||||||||||||||
Net income - three months ended June 30, 2018 | — | — | — | 32,803 | (18 | ) | 32,785 | ||||||||||||||||
Other comprehensive loss | — | — | (55,530 | ) | — | — | (55,530 | ) | |||||||||||||||
Stock-based compensation | — | 102 | — | — | — | 102 | |||||||||||||||||
Purchase of common stock | — | (183 | ) | — | (1,860 | ) | — | (2,043 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (11,416 | ) | — | (11,416 | ) | |||||||||||||||
Receipts related to noncontrolling interest | — | — | — | — | 15 | 15 | |||||||||||||||||
Balance at June 30, 2018 | $ | 3,000 | $ | 153,186 | $ | 131,081 | $ | 928,973 | $ | 32 | $ | 1,216,272 | |||||||||||
Balance at April 1, 2019 | $ | 3,000 | $ | 152,516 | $ | 189,166 | $ | 918,718 | $ | 121 | $ | 1,263,521 | |||||||||||
Net income - three months ended June 30, 2019 | — | — | — | 32,298 | (41 | ) | 32,257 | ||||||||||||||||
Other comprehensive income | — | — | 113,627 | — | — | 113,627 | |||||||||||||||||
Stock-based compensation | — | 10 | — | — | — | 10 | |||||||||||||||||
Dividends on preferred stock | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (11,836 | ) | — | (11,836 | ) | |||||||||||||||
Balance at June 30, 2019 | $ | 3,000 | $ | 152,526 | $ | 302,793 | $ | 939,143 | $ | 80 | $ | 1,397,542 |
FBL Financial Group, Inc. Stockholders’ Equity | |||||||||||||||||||||||
Series B Preferred Stock | Class A and Class B Common Stock | Accumulated Other Comprehensive Income | Retained Earnings | Non- controlling Interest | Total Stockholders’ Equity | ||||||||||||||||||
Balance at January 1, 2018 | $ | 3,000 | $ | 153,661 | $ | 284,983 | $ | 935,423 | $ | 58 | $ | 1,377,125 | |||||||||||
Cumulative effect of change in accounting principle related to net unrealized gains on equity securities | — | — | (5,480 | ) | 5,480 | — | — | ||||||||||||||||
Net income - six months ended June 30, 2018 | — | — | — | 56,368 | (41 | ) | 56,327 | ||||||||||||||||
Other comprehensive loss | — | — | (148,422 | ) | — | — | (148,422 | ) | |||||||||||||||
Stock-based compensation | — | 320 | — | — | — | 320 | |||||||||||||||||
Purchase of common stock | — | (795 | ) | — | (8,054 | ) | — | (8,849 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (75 | ) | — | (75 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (60,169 | ) | — | (60,169 | ) | |||||||||||||||
Receipts related to noncontrolling interest | — | — | — | — | 15 | 15 | |||||||||||||||||
Balance at June 30, 2018 | $ | 3,000 | $ | 153,186 | $ | 131,081 | $ | 928,973 | $ | 32 | $ | 1,216,272 | |||||||||||
Balance at January 1, 2019 | $ | 3,000 | $ | 152,724 | $ | 91,318 | $ | 937,097 | $ | 120 | $ | 1,184,259 | |||||||||||
Cumulative effect of change in accounting principle related to leases | — | — | — | 595 | — | 595 | |||||||||||||||||
Net income - six months ended June 30, 2019 | — | — | — | 66,341 | (40 | ) | 66,301 | ||||||||||||||||
Other comprehensive income | — | — | 211,475 | — | — | 211,475 | |||||||||||||||||
Stock-based compensation | — | 212 | — | — | — | 212 | |||||||||||||||||
Purchase of common stock | — | (410 | ) | — | (4,167 | ) | — | (4,577 | ) | ||||||||||||||
Dividends on preferred stock | — | — | — | (75 | ) | — | (75 | ) | |||||||||||||||
Dividends on common stock | — | — | — | (60,648 | ) | — | (60,648 | ) | |||||||||||||||
Balance at June 30, 2019 | $ | 3,000 | $ | 152,526 | $ | 302,793 | $ | 939,143 | $ | 80 | $ | 1,397,542 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Operating activities | ||||||||||||||
Net income | $ | 34,044 | $ | 23,542 | $ | 66,301 | $ | 56,327 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Interest credited to account balances | 38,531 | 40,650 | 80,152 | 82,699 | ||||||||||
Charges for mortality, surrenders and administration | (31,201 | ) | (29,827 | ) | (62,978 | ) | (60,081 | ) | ||||||
Net realized (gains) losses on investments | (9,288 | ) | 3,042 | (9,665 | ) | 2,705 | ||||||||
Change in fair value of derivatives | (29 | ) | (534 | ) | (1,242 | ) | (3,089 | ) | ||||||
Increase in liabilities for life insurance and other future policy benefits | 17,507 | 18,264 | 34,593 | 38,308 | ||||||||||
Deferral of acquisition costs | (11,739 | ) | (11,293 | ) | (22,628 | ) | (22,244 | ) | ||||||
Amortization of deferred acquisition costs and value of insurance in force | 7,774 | 10,314 | 17,176 | 20,318 | ||||||||||
Change in reinsurance recoverable | (805 | ) | 2,454 | 742 | 5,097 | |||||||||
Provision for deferred income taxes | 1,822 | (3,146 | ) | 3,020 | (4,190 | ) | ||||||||
Other | (1,923 | ) | (1,865 | ) | (19,850 | ) | 11,362 | |||||||
Net cash provided by operating activities | 44,693 | 51,601 | 85,621 | 127,212 | ||||||||||
Investing activities | ||||||||||||||
Sales, maturities or repayments: | ||||||||||||||
Fixed maturities - available for sale | 128,274 | 138,254 | 314,460 | 352,051 | ||||||||||
Equity securities - available for sale | 5,085 | — | ||||||||||||
Mortgage loans | 24,603 | 10,383 | 49,386 | 36,861 | ||||||||||
Derivative instruments | 2,121 | 4,131 | 7,314 | 8,912 | ||||||||||
Policy loans | 9,095 | 9,133 | 18,057 | 19,030 | ||||||||||
Securities and indebtedness of related parties | 1,133 | 1,596 | 4,466 | 3,021 | ||||||||||
Other long-term investments | 1,210 | 938 | 2,950 | 3,524 | ||||||||||
Acquisitions: | ||||||||||||||
Fixed maturities - available for sale | (128,578 | ) | (288,677 | ) | (346,440 | ) | (529,344 | ) | ||||||
Equity securities - available for sale | (11,069 | ) | (1,389 | ) | (13,092 | ) | (2,283 | ) | ||||||
Mortgage loans | (5,650 | ) | (7,186 | ) | (25,902 | ) | (47,936 | ) | ||||||
Derivative instruments | (4,432 | ) | (3,219 | ) | (9,766 | ) | (7,049 | ) | ||||||
Policy loans | (10,959 | ) | (11,148 | ) | (20,937 | ) | (22,470 | ) | ||||||
Securities and indebtedness of related parties | (4,710 | ) | (4,633 | ) | (11,476 | ) | (8,409 | ) | ||||||
Other long-term investments | (975 | ) | (5,531 | ) | (2,788 | ) | (6,531 | ) | ||||||
Short-term investments, net change | 4,198 | (13,068 | ) | 6,192 | 1,866 | |||||||||
Purchases and disposals of property and equipment, net | (4,049 | ) | (1,859 | ) | (7,931 | ) | (6,067 | ) | ||||||
Net cash provided by (used in) investing activities | 212 | (172,275 | ) | |||||||||||
Net cash used in investing activities | (30,422 | ) | (204,824 | ) |
Three months ended March 31, | Six months ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
Financing activities | ||||||||||||||
Contract holder account deposits | $ | 135,844 | $ | 261,240 | $ | 316,988 | $ | 402,751 | ||||||
Contract holder account withdrawals | (143,456 | ) | (124,978 | ) | (311,187 | ) | (311,878 | ) | ||||||
Dividends paid | (48,850 | ) | (48,791 | ) | (60,723 | ) | (60,244 | ) | ||||||
Proceeds from issuance of short-term debt | 4,000 | — | 4,000 | 27,000 | ||||||||||
Repayments of short-term debt | (4,000 | ) | — | |||||||||||
Issuance or repurchase of common stock, net | (5,421 | ) | (5,840 | ) | (5,458 | ) | (9,023 | ) | ||||||
Other financing activities | — | 15 | ||||||||||||
Net cash provided by (used in) financing activities | (57,883 | ) | 81,631 | (60,380 | ) | 48,621 | ||||||||
Decrease in cash and cash equivalents | (12,978 | ) | (39,043 | ) | (5,181 | ) | (28,991 | ) | ||||||
Cash and cash equivalents at beginning of period | 19,035 | 52,696 | 19,035 | 52,696 | ||||||||||
Cash and cash equivalents at end of period | $ | 6,057 | $ | 13,653 | $ | 13,854 | $ | 23,705 | ||||||
Supplemental disclosures of cash flow information | ||||||||||||||
Cash (paid) received during the period for: | ||||||||||||||
Interest | $ | (1,213 | ) | $ | (1,213 | ) | $ | (2,426 | ) | $ | (2,425 | ) | ||
Income taxes | — | (5 | ) | (30 | ) | (20 | ) |
Description | Date of adoption | Effect on our consolidated financial statements or other significant matters |
Standards adopted: | ||
Leases In February 2016, the FASB issued a new lease accounting standard, which, for most lessees, results in a gross-up of the balance sheet. Under the new standard, lessees recognize the leased assets on the balance sheet and recognize a corresponding liability for the present value of lease payments over the lease term. The new standard requires the application of judgment and estimates. Also, there are accounting policy elections that may be taken both at transition and for the accounting post-transition, including whether to adopt a short-term lease recognition exemption. | January 1, 2019 | Upon adoption using the modified retrospective approach, a cumulative effect adjustment of $0.6 million was recorded to retained earnings, representing the elimination of a deferred gain on a sale-leaseback transaction, |
Financial instruments - recognition and measurement In January 2016, the FASB issued guidance that amended certain aspects of the recognition and measurement of financial instruments. The new guidance primarily affected the accounting for equity securities, which are now carried at fair value with valuation changes recognized in the statement of operations rather than as other comprehensive income. The presentation and disclosure requirements for financial instruments and the methodology for assessing the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale fixed maturity securities were also revised under the new guidance. The new standard required the use of a modified retrospective method at adoption. | January 1, 2018 | Upon adoption, we reclassified |
Description | Date of adoption | Effect on our consolidated financial statements or other significant matters |
Standards not yet adopted: | ||
Financial instruments - credit impairment In June 2016, the FASB issued guidance amending the accounting for the credit impairment of financial instruments. Under the new guidance, impairment losses are required to be estimated using an expected loss model under which a valuation allowance is established and adjusted over time. The valuation allowance will be based on the probability of loss over the life of the instrument, considering historical, current and forecasted information. The new guidance differs significantly from the incurred loss model used today, and will result in the earlier recognition of impairment losses. The new guidance may also increase the volatility of earnings to the extent actual results differ from the assumptions used in the establishment of the valuation allowance. The financial instruments for which we will be required to use the new model include but are not limited to, mortgage loans, lease receivables and reinsurance recoverables. Our available-for-sale fixed maturities will continue to apply the incurred loss | January 1, 2020 | We are currently evaluating the impact of this new guidance on our consolidated financial statements. We believe the most significant impact upon adoption will be the establishment of an additional valuation allowance for our mortgage loan |
Targeted improvements: long-duration contracts In August 2018, the FASB issued guidance that will change the accounting for long-duration insurance contracts. The new guidance impacts several facets of the accounting for such contracts including the accounting for future policy benefits associated with traditional non-participating and limited payment insurance contracts as well as for guaranteed minimum benefits and the amortization model used for deferred acquisition costs. Disclosures as well as presentation of financial results will also change under the new guidance. | January 1, 2021 | We are currently evaluating the impact of this guidance on our consolidated financial statements, but expect the impact to the timing of profit emergence for the impacted insurance contracts to be significant. Adoption of certain portions of the guidance may be applied on a modified retrospective basis and others on a full retrospective basis. |
Available-For-Sale Fixed Maturity Securities by Investment Category | Available-For-Sale Fixed Maturity Securities by Investment Category | Available-For-Sale Fixed Maturity Securities by Investment Category | ||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit losses on other-than-temporary impairments (1) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit losses on other-than-temporary impairments (1) | |||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||||||||
Corporate | $ | 3,259,853 | $ | 213,704 | $ | (40,981 | ) | $ | 3,432,576 | $ | — | $ | 3,287,380 | $ | 320,359 | $ | (21,989 | ) | $ | 3,585,750 | $ | — | ||||||||||||||||
Residential mortgage-backed | 584,767 | 36,715 | (2,733 | ) | 618,749 | 3,035 | 581,099 | 49,055 | (775 | ) | 629,379 | 2,084 | ||||||||||||||||||||||||||
Commercial mortgage-backed | 896,528 | 31,393 | (11,217 | ) | 916,704 | — | 937,041 | 67,240 | (526 | ) | 1,003,755 | — | ||||||||||||||||||||||||||
Other asset-backed | 680,507 | 17,781 | (3,472 | ) | 694,816 | 968 | 671,762 | 22,017 | (2,332 | ) | 691,447 | 740 | ||||||||||||||||||||||||||
United States Government and agencies | 19,555 | 1,203 | (45 | ) | 20,713 | — | 17,029 | 1,572 | (16 | ) | 18,585 | — | ||||||||||||||||||||||||||
States and political subdivisions | 1,432,007 | 118,037 | (2,018 | ) | 1,548,026 | — | 1,415,673 | 140,791 | (758 | ) | 1,555,706 | — | ||||||||||||||||||||||||||
Total fixed maturities | $ | 6,873,217 | $ | 418,833 | $ | (60,466 | ) | $ | 7,231,584 | $ | 4,003 | $ | 6,909,984 | $ | 601,034 | $ | (26,396 | ) | $ | 7,484,622 | $ | 2,824 |
December 31, 2018 | |||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit losses on other-than-temporary impairments (1) | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Fixed maturities: | |||||||||||||||||||
Corporate | $ | 3,231,846 | $ | 138,972 | $ | (90,933 | ) | $ | 3,279,885 | $ | — | ||||||||
Residential mortgage-backed | 584,133 | 29,969 | (7,242 | ) | 606,860 | 2,823 | |||||||||||||
Commercial mortgage-backed | 873,672 | 24,284 | (19,390 | ) | 878,566 | — | |||||||||||||
Other asset-backed | 697,332 | 15,567 | (5,329 | ) | 707,570 | 1,143 | |||||||||||||
United States Government and agencies | 19,673 | 996 | (134 | ) | 20,535 | — | |||||||||||||
States and political subdivisions | 1,449,621 | 95,921 | (5,913 | ) | 1,539,629 | — | |||||||||||||
Total fixed maturities | $ | 6,856,277 | $ | 305,709 | $ | (128,941 | ) | $ | 7,033,045 | $ | 3,966 |
(1) | Non-credit losses subsequent to the initial impairment measurement date on other-than-temporary impairment (OTTI) losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for residential mortgage-backed and other asset-backed securities at |
Available-For-Sale Fixed Maturities by Maturity Date | ||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Due in one year or less | $ | 106,619 | $ | 107,635 | $ | 73,729 | $ | 74,777 | ||||||
Due after one year through five years | 534,193 | 555,588 | 530,041 | 556,513 | ||||||||||
Due after five years through ten years | 697,348 | 729,149 | 716,263 | 771,586 | ||||||||||
Due after ten years | 3,373,255 | 3,608,943 | 3,400,049 | 3,757,165 | ||||||||||
4,711,415 | 5,001,315 | 4,720,082 | 5,160,041 | |||||||||||
Mortgage-backed and other asset-backed | 2,161,802 | 2,230,269 | 2,189,902 | 2,324,581 | ||||||||||
Total fixed maturities | $ | 6,873,217 | $ | 7,231,584 | $ | 6,909,984 | $ | 7,484,622 |
Net Unrealized Gains on Investments in Accumulated Other Comprehensive Income | ||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Net unrealized appreciation on: | ||||||||||||||
Fixed maturities - available for sale | $ | 358,367 | $ | 176,768 | $ | 574,638 | $ | 176,768 | ||||||
Adjustments for assumed changes in amortization pattern of: | ||||||||||||||
Deferred acquisition costs | (96,710 | ) | (46,732 | ) | (158,405 | ) | (46,732 | ) | ||||||
Value of insurance in force acquired | (10,469 | ) | (6,878 | ) | (12,827 | ) | (6,878 | ) | ||||||
Unearned revenue reserve | 11,297 | 5,134 | 15,127 | 5,134 | ||||||||||
Adjustments for assumed changes in policyholder liabilities | (12,240 | ) | (1,642 | ) | (24,724 | ) | (1,642 | ) | ||||||
Provision for deferred income taxes | (52,551 | ) | (26,596 | ) | (82,699 | ) | (26,596 | ) | ||||||
Net unrealized investment gains | $ | 197,694 | $ | 100,054 | $ | 311,110 | $ | 100,054 |
Fixed Maturity Securities with Unrealized Losses by Length of Time | Fixed Maturity Securities with Unrealized Losses by Length of Time | Fixed Maturity Securities with Unrealized Losses by Length of Time | ||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than one year | One year or more | Total | Less than one year | One year or more | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Percent of Total | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Percent of Total | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | 211,512 | $ | (7,452 | ) | $ | 445,481 | $ | (33,529 | ) | $ | 656,993 | $ | (40,981 | ) | 67.8 | % | $ | 29,173 | $ | (738 | ) | $ | 252,898 | $ | (21,251 | ) | $ | 282,071 | $ | (21,989 | ) | 83.3 | % | ||||||||||||||||||||
Residential mortgage-backed | 16,335 | (590 | ) | 89,982 | (2,143 | ) | 106,317 | (2,733 | ) | 4.5 | 3,857 | (329 | ) | 24,215 | (446 | ) | 28,072 | (775 | ) | 2.9 | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 41,535 | (673 | ) | 294,545 | (10,544 | ) | 336,080 | (11,217 | ) | 18.6 | 89 | — | 18,704 | (526 | ) | 18,793 | (526 | ) | 2.0 | |||||||||||||||||||||||||||||||||||
Other asset-backed | 142,050 | (2,218 | ) | 170,790 | (1,254 | ) | 312,840 | (3,472 | ) | 5.7 | 95,239 | (1,401 | ) | 93,275 | (931 | ) | 188,514 | (2,332 | ) | 8.8 | ||||||||||||||||||||||||||||||||||
United States Government and agencies | — | — | 3,699 | (45 | ) | 3,699 | (45 | ) | 0.1 | — | — | 2,982 | (16 | ) | 2,982 | (16 | ) | 0.1 | ||||||||||||||||||||||||||||||||||||
States and political subdivisions | 7,872 | (571 | ) | 23,357 | (1,447 | ) | 31,229 | (2,018 | ) | 3.3 | 4,219 | (208 | ) | 6,426 | (550 | ) | 10,645 | (758 | ) | 2.9 | ||||||||||||||||||||||||||||||||||
Total fixed maturities | $ | 419,304 | $ | (11,504 | ) | $ | 1,027,854 | $ | (48,962 | ) | $ | 1,447,158 | $ | (60,466 | ) | 100.0 | % | $ | 132,577 | $ | (2,676 | ) | $ | 398,500 | $ | (23,720 | ) | $ | 531,077 | $ | (26,396 | ) | 100.0 | % |
December 31, 2018 | |||||||||||||||||||||||||||
Less than one year | One year or more | Total | |||||||||||||||||||||||||
Description of Securities | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||
Corporate | $ | 1,035,176 | $ | (60,299 | ) | $ | 207,381 | $ | (30,634 | ) | $ | 1,242,557 | $ | (90,933 | ) | 70.5 | % | ||||||||||
Residential mortgage-backed | 191,365 | (4,482 | ) | 74,113 | (2,760 | ) | 265,478 | (7,242 | ) | 5.6 | |||||||||||||||||
Commercial mortgage-backed | 302,159 | (9,947 | ) | 148,855 | (9,443 | ) | 451,014 | (19,390 | ) | 15.0 | |||||||||||||||||
Other asset-backed | 250,119 | (3,397 | ) | 149,997 | (1,932 | ) | 400,116 | (5,329 | ) | 4.1 | |||||||||||||||||
United States Government and agencies | — | — | 6,474 | (134 | ) | 6,474 | (134 | ) | 0.1 | ||||||||||||||||||
States and political subdivisions | 144,681 | (3,885 | ) | 16,943 | (2,028 | ) | 161,624 | (5,913 | ) | 4.7 | |||||||||||||||||
Total fixed maturities | $ | 1,923,500 | $ | (82,010 | ) | $ | 603,763 | $ | (46,931 | ) | $ | 2,527,263 | $ | (128,941 | ) | 100.0 | % |
Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities | ||||||||||||||
Three months ended March 31, | Six months ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Balance at beginning of period | $ | (5,963 | ) | $ | (12,392 | ) | $ | (5,963 | ) | $ | (12,392 | ) | ||
Reductions due to investments sold or paid down | 230 | 271 | 729 | 3,369 | ||||||||||
Reduction for credit loss that no longer has a portion of the OTTI loss recognized in other comprehensive income | — | 2,529 | — | 2,529 | ||||||||||
Balance at end of period | $ | (5,733 | ) | $ | (9,592 | ) | $ | (5,234 | ) | $ | (6,494 | ) |
Realized Gains (Losses) - Recorded in Income | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Realized gains (losses) on investments | ||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||
Gross gains | $ | 2,994 | $ | 83 | $ | 143 | $ | 1,713 | $ | 3,137 | $ | 1,796 | ||||||||||
Gross losses | (304 | ) | (1 | ) | (304 | ) | (1 | ) | ||||||||||||||
Mortgage loans | 2,778 | — | — | — | 2,778 | — | ||||||||||||||||
Other | (4 | ) | (13 | ) | — | (5 | ) | (4 | ) | (18 | ) | |||||||||||
5,768 | 70 | (161 | ) | 1,707 | 5,607 | 1,777 | ||||||||||||||||
Net gains (losses) recognized during the period on equity securities held at the end of the period | 463 | (866 | ) | 4,882 | (2,683 | ) | ||||||||||||||||
Net gains recognized during the period on equity securities sold during the period | 75 | — | 45 | — | ||||||||||||||||||
Net gains (losses) recognized during the period on equity securities | 4,419 | (1,817 | ) | 538 | (866 | ) | 4,927 | (2,683 | ) | |||||||||||||
Less net gains and (losses) recognized during the period on equity securities sold during the period | (30 | ) | — | |||||||||||||||||||
Net gains (losses) recognized during the period on equity securities held at the end of the period | 4,389 | (1,817 | ) | |||||||||||||||||||
Net realized gains (losses) | 10,157 | (1,747 | ) | 377 | 841 | 10,534 | (906 | ) | ||||||||||||||
Impairment losses recognized in earnings: | ||||||||||||||||||||||
Other credit-related | (869 | ) | (1,040 | ) | — | — | (869 | ) | (1,040 | ) | ||||||||||||
Net realized gains (losses) on investments recorded in income | $ | 9,288 | $ | (3,042 | ) | $ | 377 | $ | 841 | $ | 9,665 | $ | (1,946 | ) |
Mortgage Loans by Collateral Type | ||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Collateral Type | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||
Office | $ | 438,068 | 42.8 | % | $ | 443,048 | 42.6 | % | $ | 421,867 | 41.4 | % | $ | 443,048 | 42.6 | % | ||||||||||||
Retail | 312,276 | 30.5 | 310,625 | 29.9 | 317,685 | 31.2 | 310,625 | 29.9 | ||||||||||||||||||||
Industrial | 198,973 | 19.4 | 211,138 | 20.3 | 205,917 | 20.2 | 211,138 | 20.3 | ||||||||||||||||||||
Other | 74,338 | 7.3 | 75,018 | 7.2 | 73,655 | 7.2 | 75,018 | 7.2 | ||||||||||||||||||||
Total | $ | 1,023,655 | 100.0 | % | $ | 1,039,829 | 100.0 | % | $ | 1,019,124 | 100.0 | % | $ | 1,039,829 | 100.0 | % |
Mortgage Loans by Geographic Location within the United States | Mortgage Loans by Geographic Location within the United States | Mortgage Loans by Geographic Location within the United States | ||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Region of the United States | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||
South Atlantic | $ | 297,927 | 29.1 | % | $ | 301,206 | 29.0 | % | $ | 304,277 | 29.9 | % | $ | 301,206 | 29.0 | % | ||||||||||||
Pacific | 157,713 | 15.4 | 162,824 | 15.7 | 156,210 | 15.3 | 162,824 | 15.7 | ||||||||||||||||||||
East North Central | 120,371 | 11.8 | 117,768 | 11.3 | ||||||||||||||||||||||||
West North Central | 127,499 | 12.5 | 126,320 | 12.1 | 112,130 | 11.0 | 126,320 | 12.1 | ||||||||||||||||||||
East North Central | 121,913 | 11.9 | 117,768 | 11.3 | ||||||||||||||||||||||||
Mountain | 90,475 | 8.8 | 101,335 | 9.7 | 89,531 | 8.8 | 101,335 | 9.7 | ||||||||||||||||||||
West South Central | 85,003 | 8.3 | 85,919 | 8.3 | 85,648 | 8.4 | 85,919 | 8.3 | ||||||||||||||||||||
East South Central | 75,442 | 7.4 | 76,098 | 7.3 | 83,959 | 8.2 | 76,098 | 7.3 | ||||||||||||||||||||
Middle Atlantic | 34,559 | 3.4 | 34,843 | 3.4 | 34,271 | 3.4 | 34,843 | 3.4 | ||||||||||||||||||||
New England | 33,124 | 3.2 | 33,516 | 3.2 | 32,727 | 3.2 | 33,516 | 3.2 | ||||||||||||||||||||
Total | $ | 1,023,655 | 100.0 | % | $ | 1,039,829 | 100.0 | % | $ | 1,019,124 | 100.0 | % | $ | 1,039,829 | 100.0 | % |
Mortgage Loans by Loan-to-Value Ratio | ||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Loan-to-Value Ratio | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||
0% - 50% | $ | 404,912 | 39.6 | % | $ | 409,089 | 39.3 | % | $ | 415,111 | 40.7 | % | $ | 409,089 | 39.3 | % | ||||||||||||
51% - 60% | 304,608 | 29.8 | 314,038 | 30.2 | 298,116 | 29.3 | 314,038 | 30.2 | ||||||||||||||||||||
61% - 70% | 270,610 | 26.4 | 264,973 | 25.5 | 283,310 | 27.8 | 264,973 | 25.5 | ||||||||||||||||||||
71% - 80% | 37,186 | 3.6 | 37,418 | 3.6 | 18,235 | 1.8 | 37,418 | 3.6 | ||||||||||||||||||||
81% - 90% | 6,339 | 0.6 | 14,311 | 1.4 | 4,352 | 0.4 | 14,311 | 1.4 | ||||||||||||||||||||
Total | $ | 1,023,655 | 100.0 | % | $ | 1,039,829 | 100.0 | % | $ | 1,019,124 | 100.0 | % | $ | 1,039,829 | 100.0 | % |
Mortgage Loans by Year of Origination | ||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||
Year of Origination | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | Carrying Value | Percent of Total | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||
2019 | $ | 5,650 | 0.6 | % | $ | — | — | % | $ | 25,878 | 2.6 | % | $ | — | — | % | ||||||||||||
2018 | 136,693 | 13.4 | 137,519 | 13.2 | 135,831 | 13.3 | 137,519 | 13.2 | ||||||||||||||||||||
2017 | 205,744 | 20.1 | 207,540 | 20.0 | 203,949 | 20.0 | 207,540 | 20.0 | ||||||||||||||||||||
2016 | 148,175 | 14.4 | 149,437 | 14.4 | 146,900 | 14.4 | 149,437 | 14.4 | ||||||||||||||||||||
2015 | 127,800 | 12.5 | 128,877 | 12.4 | 126,711 | 12.4 | 128,877 | 12.4 | ||||||||||||||||||||
2014 & prior | 399,593 | 39.0 | 416,456 | 40.0 | 379,855 | 37.3 | 416,456 | 40.0 | ||||||||||||||||||||
Total | $ | 1,023,655 | 100.0 | % | $ | 1,039,829 | 100.0 | % | $ | 1,019,124 | 100.0 | % | $ | 1,039,829 | 100.0 | % |
Impaired Mortgage Loans | ||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Unpaid principal balance | $ | 4,706 | $ | 18,622 | $ | 4,681 | $ | 18,622 | ||||||
Less: | ||||||||||||||
Related allowance | (329 | ) | (3,107 | ) | (329 | ) | (3,107 | ) | ||||||
Carrying value of impaired mortgage loans | $ | 4,377 | $ | 15,515 | $ | 4,352 | $ | 15,515 |
Allowance on Mortgage Loans | ||||||||||||||
Three months ended March 31, | Six months ended June 30, | |||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Balance at beginning of period | $ | 3,107 | $ | 497 | $ | 3,107 | $ | 497 | ||||||
Recoveries | (2,778 | ) | (50 | ) | (2,778 | ) | (100 | ) | ||||||
Balance at end of period | $ | 329 | $ | 447 | $ | 329 | $ | 397 |
LIHTC Investment Commitments by Year | |||
March 31, 2019 | |||
(Dollars in thousands) | |||
2019 | $ | 505 | |
2020 | 165 | ||
2021-2025 | 831 | ||
Total | $ | 1,501 |
VIE Investments by Category | ||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
Carrying Value | Maximum Exposure to Loss | Carrying Value | Maximum Exposure to Loss | Carrying Value | Maximum Exposure to Loss | Carrying Value | Maximum Exposure to Loss | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||
LIHTC investments | $ | 51,156 | $ | 52,657 | $ | 54,037 | $ | 55,597 | $ | 48,250 | $ | 49,752 | $ | 54,037 | $ | 55,597 | ||||||||||||||
Investment companies | 44,164 | 80,590 | 40,236 | 79,578 | 47,840 | 94,091 | 40,236 | 79,578 | ||||||||||||||||||||||
Real estate limited partnerships | 8,489 | 15,344 | 8,945 | 15,673 | 9,415 | 15,938 | 8,945 | 15,673 | ||||||||||||||||||||||
Other | 494 | 504 | 483 | 493 | 493 | 493 | 483 | 493 | ||||||||||||||||||||||
Total | $ | 104,303 | $ | 149,095 | $ | 103,701 | $ | 151,341 | $ | 105,998 | $ | 160,274 | $ | 103,701 | $ | 151,341 |
Derivatives Instruments by Type | ||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||
Assets | ||||||||||||||
Freestanding derivatives: | ||||||||||||||
Call options (reported in other investments) | $ | 15,741 | $ | 4,745 | $ | 19,698 | $ | 4,745 | ||||||
Embedded derivatives: | ||||||||||||||
Modified coinsurance (reported in reinsurance recoverable) | 110 | 157 | 824 | 157 | ||||||||||
Interest-only security (reported in fixed maturities) | 786 | 855 | 676 | 855 | ||||||||||
Total assets | $ | 16,637 | $ | 5,757 | $ | 21,198 | $ | 5,757 | ||||||
Liabilities | ||||||||||||||
Embedded derivatives: | ||||||||||||||
Indexed products (reported in liability for future policy benefits) | $ | 51,891 | $ | 40,028 | $ | 59,375 | $ | 40,028 | ||||||
Modified coinsurance (reported in other liabilities) | 99 | 7,426 | 193 | 7,426 | ||||||||||
Total liabilities | $ | 51,990 | $ | 47,454 | $ | 59,568 | $ | 47,454 |
Derivative Income (Loss) | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Change in fair value of free standing derivatives: | ||||||||||||||||||||||
Change in fair value of free-standing derivatives: | ||||||||||||||||||||||
Call options | $ | 8,685 | $ | (1,152 | ) | $ | 3,816 | $ | 2,193 | $ | 12,502 | $ | 1,041 | |||||||||
Change in fair value of embedded derivatives: | ||||||||||||||||||||||
Modified coinsurance | 633 | (943 | ) | 620 | 125 | 1,253 | (818 | ) | ||||||||||||||
Interest-only security | 47 | (35 | ) | 69 | (44 | ) | 116 | (79 | ) | |||||||||||||
Indexed products | (9,336 | ) | 2,664 | (3,294 | ) | 281 | (12,629 | ) | 2,945 | |||||||||||||
Total income from derivatives | $ | 29 | $ | 534 | $ | 1,211 | $ | 2,555 | $ | 1,242 | $ | 3,089 |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | ||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||||||
Corporate securities | $ | — | $ | 3,405,623 | $ | 26,953 | $ | 3,432,576 | $ | — | $ | 3,566,052 | $ | 19,698 | $ | 3,585,750 | ||||||||||||||
Residential mortgage-backed securities | — | 618,749 | — | 618,749 | — | 627,255 | 2,124 | 629,379 | ||||||||||||||||||||||
Commercial mortgage-backed securities | — | 908,579 | 8,125 | 916,704 | — | 995,421 | 8,334 | 1,003,755 | ||||||||||||||||||||||
Other asset-backed securities | — | 687,167 | 7,649 | 694,816 | — | 677,645 | 13,802 | 691,447 | ||||||||||||||||||||||
United States Government and agencies | 7,894 | 12,819 | — | 20,713 | 7,382 | 11,203 | — | 18,585 | ||||||||||||||||||||||
States and political subdivisions | — | 1,548,026 | — | 1,548,026 | — | 1,555,706 | — | 1,555,706 | ||||||||||||||||||||||
Total fixed maturities | 7,894 | 7,180,963 | 42,727 | 7,231,584 | 7,382 | 7,433,282 | 43,958 | 7,484,622 | ||||||||||||||||||||||
Non-redeemable preferred stocks | — | 80,980 | 7,129 | 88,109 | — | 76,823 | 7,048 | 83,871 | ||||||||||||||||||||||
Common stocks (1) | 16,716 | — | — | 16,716 | 16,749 | — | — | 16,749 | ||||||||||||||||||||||
Other investments | — | 15,741 | — | 15,741 | — | 19,698 | — | 19,698 | ||||||||||||||||||||||
Cash, cash equivalents and short-term investments | 17,572 | — | — | 17,572 | 23,375 | — | — | 23,375 | ||||||||||||||||||||||
Reinsurance recoverable | — | 109 | — | 109 | — | 824 | — | 824 | ||||||||||||||||||||||
Assets held in separate accounts | 614,121 | — | — | 614,121 | 625,177 | — | — | 625,177 | ||||||||||||||||||||||
Total assets | $ | 656,303 | $ | 7,277,793 | $ | 49,856 | $ | 7,983,952 | $ | 672,683 | $ | 7,530,627 | $ | 51,006 | $ | 8,254,316 | ||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | — | $ | — | $ | 51,891 | $ | 51,891 | $ | — | $ | — | $ | 59,375 | $ | 59,375 | ||||||||||||||
Other liabilities | — | 99 | — | 99 | — | 193 | — | 193 | ||||||||||||||||||||||
Total liabilities | $ | — | $ | 99 | $ | 51,891 | $ | 51,990 | $ | — | $ | 193 | $ | 59,375 | $ | 59,568 |
Valuation of our Financial Instruments Measured on a Recurring Basis by Hierarchy Levels | |||||||||||||||
December 31, 2018 | |||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Assets | |||||||||||||||
Fixed maturities: | |||||||||||||||
Corporate securities | $ | — | $ | 3,257,874 | $ | 22,011 | $ | 3,279,885 | |||||||
Residential mortgage-backed securities | — | 606,860 | — | 606,860 | |||||||||||
Commercial mortgage-backed securities | — | 810,626 | 67,940 | 878,566 | |||||||||||
Other asset-backed securities | — | 703,969 | 3,601 | 707,570 | |||||||||||
United States Government and agencies | 7,917 | 12,618 | — | 20,535 | |||||||||||
States and political subdivisions | — | 1,539,629 | — | 1,539,629 | |||||||||||
Total fixed maturities | 7,917 | 6,931,576 | 93,552 | 7,033,045 | |||||||||||
Non-redeemable preferred stocks | — | 77,433 | 6,862 | 84,295 | |||||||||||
Common stocks (1) | 5,261 | — | — | 5,261 | |||||||||||
Other investments | — | 4,745 | — | 4,745 | |||||||||||
Cash, cash equivalents and short-term investments | 34,748 | — | — | 34,748 | |||||||||||
Reinsurance recoverable | — | 157 | — | 157 | |||||||||||
Assets held in separate accounts | 561,281 | — | — | 561,281 | |||||||||||
Total assets | $ | 609,207 | $ | 7,013,911 | $ | 100,414 | $ | 7,723,532 | |||||||
Liabilities | |||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | — | $ | — | $ | 40,028 | $ | 40,028 | |||||||
Other liabilities | — | 780 | — | 780 | |||||||||||
Total liabilities | $ | — | $ | 780 | $ | 40,028 | $ | 40,808 |
(1) | A private equity fund with a fair value estimate of |
Level 3 Assets by Valuation Source - Recurring Basis | ||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||
Third-party vendors | Priced internally | Fair Value | Third-party vendors | Priced internally | Fair Value | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Corporate securities | $ | 7,782 | $ | 19,171 | $ | 26,953 | $ | — | $ | 19,698 | $ | 19,698 | ||||||||||
Residential mortgage-backed securities | 2,124 | — | 2,124 | |||||||||||||||||||
Commercial mortgage-backed securities | 8,125 | — | 8,125 | 8,334 | — | 8,334 | ||||||||||||||||
Other asset-backed securities | 5,000 | 2,649 | 7,649 | 11,710 | 2,092 | 13,802 | ||||||||||||||||
Non-redeemable preferred stocks | — | 7,129 | 7,129 | — | 7,048 | 7,048 | ||||||||||||||||
Total assets | $ | 20,907 | $ | 28,949 | $ | 49,856 | $ | 22,168 | $ | 28,838 | $ | 51,006 | ||||||||||
Percent of total | 41.9 | % | 58.1 | % | 100.0 | % | 43.5 | % | 56.5 | % | 100.0 | % |
Level 3 Assets by Valuation Source - Recurring Basis | |||||||||||
December 31, 2018 | |||||||||||
Third-party vendors | Priced internally | Fair Value | |||||||||
(Dollars in thousands) | |||||||||||
Corporate securities | $ | 1,940 | $ | 20,071 | $ | 22,011 | |||||
Commercial mortgage-backed securities | 67,940 | — | 67,940 | ||||||||
Other asset-backed securities | — | 3,601 | 3,601 | ||||||||
Non-redeemable preferred stocks | — | 6,862 | 6,862 | ||||||||
Total assets | $ | 69,880 | $ | 30,534 | $ | 100,414 | |||||
Percent of total | 69.6 | % | 30.4 | % | 100.0 | % |
Quantitative Information about Level 3 Fair Value Measurements - Recurring Basis | ||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | |||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||
Assets | ||||||||||||||||||
Corporate securities | $ | 18,460 | Discounted cash flow | Credit spread | 1.06% - 5.95% (3.77%) | $ | 18,012 | Discounted cash flow | Credit spread | 1.09% - 6.50% (3.82%) | ||||||||
Commercial mortgage-backed securities | 8,125 | Discounted cash flow | Credit spread | 1.30% - 2.25% (1.90%) | 8,334 | Discounted cash flow | Credit spread | 1.20% - 2.20% (1.85%) | ||||||||||
Non-redeemable preferred stocks | 7,129 | Discounted cash flow | Credit spread | 3.40% (3.40%) | 7,048 | Discounted cash flow | Credit spread | 2.86% (2.86%) | ||||||||||
Total assets | $ | 33,714 | $ | 33,394 | ||||||||||||||
Liabilities | ||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | 51,891 | Discounted cash flow | Credit risk Risk margin | 0.35% - 1.70% (1.05%) 0.15% - 0.40% (0.25%) | $ | 59,375 | Discounted cash flow | Credit risk Risk margin | 0.40% - 1.65% (1.00%) 0.15% - 0.40% (0.25%) |
December 31, 2018 | |||||||||
Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Assets | |||||||||
Corporate securities | $ | 19,178 | Discounted cash flow | Credit spread | 1.23% - 7.00% (4.01%) | ||||
Commercial mortgage-backed securities | 55,866 | Discounted cash flow | Credit spread | 1.45% - 3.55% (2.58%) | |||||
Non-redeemable preferred stocks | 6,862 | Discounted cash flow | Credit spread | 4.36% (4.36%) | |||||
Total assets | $ | 81,906 | |||||||
Liabilities | |||||||||
Future policy benefits - indexed product embedded derivatives | $ | 40,028 | Discounted cash flow | Credit risk Risk margin | 0.55% - 1.80% (1.05%) 0.15% - 0.40% (0.25%) |
Level 3 Financial Instruments Changes in Fair Value - Recurring Basis | Level 3 Financial Instruments Changes in Fair Value - Recurring Basis | Level 3 Financial Instruments Changes in Fair Value - Recurring Basis | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2018 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, March 31, 2019 | Balance, December 31, 2018 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 22,011 | $ | 6,000 | $ | (1,262 | ) | $ | — | $ | 212 | $ | — | $ | — | $ | (8 | ) | $ | 26,953 | $ | 22,011 | $ | 6,000 | $ | (2,673 | ) | $ | — | $ | 376 | $ | — | $ | (6,000 | ) | $ | (16 | ) | $ | 19,698 | |||||||||||||||||||||||||||||
Residential mortgage-backed securities | — | 2,124 | — | — | — | — | — | — | 2,124 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 67,940 | — | (92 | ) | — | 195 | — | (59,918 | ) | — | 8,125 | 67,940 | — | (186 | ) | — | 498 | — | (59,918 | ) | — | 8,334 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 3,601 | 5,000 | (83 | ) | — | (869 | ) | — | — | — | 7,649 | 3,601 | 16,710 | (640 | ) | — | (869 | ) | — | (5,000 | ) | — | 13,802 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | 6,862 | — | — | — | 267 | — | — | — | 7,129 | 6,862 | — | — | — | 186 | — | — | — | 7,048 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 100,414 | $ | 11,000 | $ | (1,437 | ) | $ | — | $ | (195 | ) | $ | — | $ | (59,918 | ) | $ | (8 | ) | $ | 49,856 | $ | 100,414 | $ | 24,834 | $ | (3,499 | ) | $ | — | $ | 191 | $ | — | $ | (70,918 | ) | $ | (16 | ) | $ | 51,006 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | 40,028 | $ | 3,479 | $ | (1,169 | ) | $ | 9,553 | $ | — | $ | — | $ | — | $ | — | $ | 51,891 | $ | 40,028 | $ | 6,899 | $ | (3,364 | ) | $ | 15,812 | $ | — | $ | — | $ | — | $ | — | $ | 59,375 |
March 31, 2018 | June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gains (losses), net | Realized and unrealized gains (losses), net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, March 31, 2018 | Balance, December 31, 2017 | Purchases | Disposals | Included in net income | Included in other compre-hensive income | Transfers into Level 3 | Transfers out of Level 3 (1) | Amort-ization included in net income | Balance, June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate securities | $ | 33,600 | $ | — | $ | (1,091 | ) | $ | — | $ | 30 | $ | — | $ | (2,000 | ) | $ | (8 | ) | $ | 30,531 | $ | 33,600 | $ | — | $ | (7,682 | ) | $ | — | $ | (812 | ) | $ | 7,082 | $ | (2,000 | ) | $ | 282 | $ | 30,470 | ||||||||||||||||||||||||||||
Residential mortgage-backed securities | 9,124 | — | — | — | — | — | (9,124 | ) | — | — | 9,124 | 23,940 | — | — | — | — | (9,124 | ) | — | 23,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 85,701 | 21,875 | (227 | ) | — | (1,838 | ) | — | (13,477 | ) | (22 | ) | 92,012 | 85,701 | 35,531 | (423 | ) | — | (2,590 | ) | — | (30,826 | ) | (26 | ) | 87,367 | ||||||||||||||||||||||||||||||||||||||||||||
Other asset-backed securities | 53,480 | 8,250 | (2,025 | ) | — | 13 | — | (47,080 | ) | — | 12,638 | 53,480 | 20,255 | (2,106 | ) | — | 13 | — | (55,343 | ) | — | 16,299 | ||||||||||||||||||||||||||||||||||||||||||||||||
Non-redeemable preferred stocks | 7,407 | — | — | — | (82 | ) | — | — | — | 7,325 | 7,407 | — | — | — | (351 | ) | — | — | — | 7,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 189,312 | $ | 30,125 | $ | (3,343 | ) | $ | — | $ | (1,877 | ) | $ | — | $ | (71,681 | ) | $ | (30 | ) | $ | 142,506 | $ | 189,312 | $ | 79,726 | $ | (10,211 | ) | $ | — | $ | (3,740 | ) | $ | 7,082 | $ | (97,293 | ) | $ | 256 | $ | 165,132 | |||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future policy benefits - indexed product embedded derivatives | $ | 27,774 | $ | 2,254 | $ | (942 | ) | $ | (366 | ) | $ | — | $ | — | $ | — | $ | — | $ | 28,720 | $ | 27,774 | $ | 5,226 | $ | (2,476 | ) | $ | 2,445 | $ | — | $ | — | $ | — | $ | — | $ | 32,969 |
(1) | Transfers out of Level 3 include those assets that we are now able to obtain pricing from a |
Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels | Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels | Valuation of our Financial Instruments Not Reported at Fair Value by Hierarchy Levels | ||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Carrying Value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Carrying Value | |||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,044,026 | $ | 1,044,026 | $ | 1,023,655 | $ | — | $ | — | $ | 1,061,562 | $ | 1,061,562 | $ | 1,019,124 | ||||||||||||||||||
Policy loans | — | — | 244,677 | 244,677 | 199,230 | — | — | 253,802 | 253,802 | 200,246 | ||||||||||||||||||||||||||||
Other investments | — | — | 29,958 | 29,958 | 28,922 | — | — | 29,934 | 29,934 | 29,135 | ||||||||||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 1,318,661 | $ | 1,318,661 | $ | 1,251,807 | $ | — | $ | — | $ | 1,345,298 | $ | 1,345,298 | $ | 1,248,505 | ||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 4,101,370 | $ | 4,101,370 | $ | 4,215,476 | $ | — | $ | — | $ | 4,255,017 | $ | 4,255,017 | $ | 4,237,938 | ||||||||||||||||||
Supplementary contracts without life contingencies | — | — | 305,768 | 305,768 | 303,771 | — | — | 311,443 | 311,443 | 302,685 | ||||||||||||||||||||||||||||
Advance premiums and other deposits | — | — | 256,261 | 256,261 | 256,261 | — | — | 250,601 | 250,601 | 250,601 | ||||||||||||||||||||||||||||
Short-term debt | — | — | 4,000 | 4,000 | 4,000 | |||||||||||||||||||||||||||||||||
Long-term debt | — | — | 71,004 | 71,004 | 97,000 | — | — | 78,182 | 78,182 | 97,000 | ||||||||||||||||||||||||||||
Liabilities related to separate accounts | — | — | 612,681 | 612,681 | 614,121 | — | — | 623,839 | 623,839 | 625,177 | ||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 5,351,084 | $ | 5,351,084 | $ | 5,490,629 | $ | — | $ | — | $ | 5,519,082 | $ | 5,519,082 | $ | 5,513,401 |
December 31, 2018 | |||||||||||||||||||
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Fair Value | Carrying Value | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Assets | |||||||||||||||||||
Mortgage loans | $ | — | $ | — | $ | 1,045,497 | $ | 1,045,497 | $ | 1,039,829 | |||||||||
Policy loans | — | — | 237,496 | 237,496 | 197,366 | ||||||||||||||
Other investments | — | — | 30,087 | 30,087 | 29,020 | ||||||||||||||
Total assets | $ | — | $ | — | $ | 1,313,080 | $ | 1,313,080 | $ | 1,266,215 | |||||||||
Liabilities | |||||||||||||||||||
Future policy benefits | $ | — | $ | — | $ | 3,981,947 | $ | 3,981,947 | $ | 4,217,904 | |||||||||
Supplementary contracts without life contingencies | — | — | 298,869 | 298,869 | 303,627 | ||||||||||||||
Advance premiums and other deposits | — | — | 252,318 | 252,318 | 252,318 | ||||||||||||||
Long-term debt | — | — | 65,999 | 65,999 | 97,000 | ||||||||||||||
Liabilities related to separate accounts | — | — | 559,799 | 559,799 | 561,281 | ||||||||||||||
Total liabilities | $ | — | $ | — | $ | 5,158,932 | $ | 5,158,932 | $ | 5,432,130 |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Multiemployer Plan | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Service cost | $ | 1,137 | $ | 1,493 | $ | 1,137 | $ | 1,493 | $ | 2,274 | $ | 2,986 | ||||||||||
Interest cost | 3,318 | 3,411 | 3,319 | 3,410 | 6,637 | 6,821 | ||||||||||||||||
Expected return on assets | (4,707 | ) | (5,562 | ) | (4,707 | ) | (5,562 | ) | (9,414 | ) | (11,124 | ) | ||||||||||
Amortization of prior service cost | — | 11 | — | 12 | — | 23 | ||||||||||||||||
Amortization of actuarial loss | 2,229 | 3,127 | 2,228 | 3,127 | 4,457 | 6,254 | ||||||||||||||||
Net periodic pension cost | $ | 1,977 | $ | 2,480 | $ | 1,977 | $ | 2,480 | $ | 3,954 | $ | 4,960 | ||||||||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | 633 | $ | 760 | $ | 633 | $ | 760 | $ | 1,266 | $ | 1,520 |
Components of Net Periodic Pension Cost for FBL and Affiliates Combined - Other Plans | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Service cost | $ | 117 | $ | 135 | $ | 116 | $ | 134 | $ | 233 | $ | 269 | ||||||||||
Interest cost | 248 | 240 | 248 | 239 | 496 | 479 | ||||||||||||||||
Amortization of actuarial loss | 266 | 338 | 267 | 339 | 533 | 677 | ||||||||||||||||
Net periodic pension cost | $ | 631 | $ | 713 | $ | 631 | $ | 712 | $ | 1,262 | $ | 1,425 | ||||||||||
FBL Financial Group, Inc. share of net periodic pension costs | $ | 362 | $ | 418 | $ | 363 | $ | 417 | $ | 725 | $ | 835 |
Lease commitments by year | ||||||
March 31, 2019 | June 30, 2019 | |||||
(Dollars in thousands) | (Dollars in thousands) | |||||
2019 | $ | 1,920 | $ | 1,303 | ||
2020 | 2,573 | 2,608 | ||||
2021 | 2,574 | 2,610 | ||||
2022 | 222 | 2,444 | ||||
2023 | 55 | 2,278 | ||||
Thereafter | 24 | 6,594 | ||||
Total minimum lease payments | 7,368 | 17,837 | ||||
Less: Interest | (526 | ) | (2,894 | ) | ||
Present value of lease liabilities | $ | 6,842 | $ | 14,943 |
Dividends | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
Class A and B common stock: | ||||||||||||||||||||||
Cash dividends per common share | $ | 0.48 | $ | 0.46 | $ | 0.48 | $ | 0.46 | $ | 0.96 | $ | 0.92 | ||||||||||
Special cash dividend per common share | 1.50 | 1.50 | — | — | 1.50 | 1.50 | ||||||||||||||||
Total common stock dividends per share | $ | 1.98 | $ | 1.96 | $ | 0.48 | $ | 0.46 | $ | 2.46 | $ | 2.42 | ||||||||||
Series B preferred stock dividends per share | $ | 0.0075 | $ | 0.0075 | $ | 0.0075 | $ | 0.0075 | $ | 0.0150 | $ | 0.0150 |
Reconciliation of Outstanding Common Stock | Reconciliation of Outstanding Common Stock | Reconciliation of Outstanding Common Stock | ||||||||||||||||||||||||||||||||||||||
Class A | Class B | Total | Class A | Class B | Total | |||||||||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||
Outstanding at January 1, 2018 | 24,919,113 | $ | 153,589 | 11,413 | $ | 72 | 24,930,526 | $ | 153,661 | 24,919,113 | $ | 153,589 | 11,413 | $ | 72 | 24,930,526 | $ | 153,661 | ||||||||||||||||||||||
Stock-based compensation | 6,762 | 218 | — | — | 6,762 | 218 | 16,694 | 320 | — | — | 16,694 | 320 | ||||||||||||||||||||||||||||
Purchase of common stock | (99,312 | ) | (612 | ) | — | — | (99,312 | ) | (612 | ) | (129,011 | ) | (795 | ) | — | — | (129,011 | ) | (795 | ) | ||||||||||||||||||||
Outstanding at March 31, 2018 | 24,826,563 | $ | 153,195 | 11,413 | $ | 72 | 24,837,976 | $ | 153,267 | |||||||||||||||||||||||||||||||
Outstanding at June 30, 2018 | 24,806,796 | $ | 153,114 | 11,413 | $ | 72 | 24,818,209 | $ | 153,186 | |||||||||||||||||||||||||||||||
Outstanding at January 1, 2019 | 24,707,402 | $ | 152,652 | 11,413 | $ | 72 | 24,718,815 | $ | 152,724 | 24,707,402 | $ | 152,652 | 11,413 | $ | 72 | 24,718,815 | $ | 152,724 | ||||||||||||||||||||||
Stock-based compensation | — | 202 | — | — | — | 202 | 7,545 | 212 | — | — | 7,545 | 212 | ||||||||||||||||||||||||||||
Purchase of common stock | (66,475 | ) | (410 | ) | — | — | (66,475 | ) | (410 | ) | (66,475 | ) | (410 | ) | — | — | (66,475 | ) | (410 | ) | ||||||||||||||||||||
Outstanding at March 31, 2019 | 24,640,927 | $ | 152,444 | 11,413 | $ | 72 | 24,652,340 | $ | 152,516 | |||||||||||||||||||||||||||||||
Outstanding at June 30, 2019 | 24,648,472 | $ | 152,454 | 11,413 | $ | 72 | 24,659,885 | $ | 152,526 |
Accumulated Other Comprehensive Income, Net of Tax and Other Offsets | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at January 1, 2018 | $ | 295,169 | $ | 537 | $ | (10,723 | ) | $ | 284,983 | ||||||
Cumulative effect of change in accounting principle related to net unrealized gains on equity securities (2) | (5,869 | ) | — | — | (5,869 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (95,937 | ) | 2,808 | — | (87,260 | ) | |||||||||
Reclassification adjustments | (25 | ) | — | 262 | 237 | ||||||||||
Balance at March 31, 2018 | $ | 193,338 | $ | 3,345 | $ | (10,461 | ) | $ | 186,222 | ||||||
Balance at January 1, 2019 | $ | 96,921 | $ | 3,133 | $ | (8,736 | ) | $ | 91,318 | ||||||
Other comprehensive income before reclassifications | 99,871 | 29 | — | 99,900 | |||||||||||
Reclassification adjustments | (2,260 | ) | — | 208 | (2,052 | ) | |||||||||
Balance at March 31, 2019 | $ | 194,532 | $ | 3,162 | $ | (8,528 | ) | $ | 189,166 |
Accumulated Other Comprehensive Income, Net of Tax and Other Offsets | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available-for-Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Balance at January 1, 2018 | $ | 295,169 | $ | 537 | $ | (10,723 | ) | $ | 284,983 | ||||||
Cumulative effect of change in accounting principle related to net unrealized gains on equity securities (2) | (5,480 | ) | — | — | (5,480 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | (149,645 | ) | 2,118 | — | (147,527 | ) | |||||||||
Reclassification adjustments | (1,424 | ) | — | 529 | (895 | ) | |||||||||
Balance at June 30, 2018 | $ | 138,620 | $ | 2,655 | $ | (10,194 | ) | $ | 131,081 | ||||||
Balance at January 1, 2019 | $ | 96,921 | $ | 3,133 | $ | (8,736 | ) | $ | 91,318 | ||||||
Other comprehensive income (loss) before reclassifications | 214,083 | (902 | ) | — | 213,181 | ||||||||||
Reclassification adjustments | (2,125 | ) | — | 419 | (1,706 | ) | |||||||||
Balance at June 30, 2019 | $ | 308,879 | $ | 2,231 | $ | (8,317 | ) | $ | 302,793 |
(1) | Includes the impact of taxes, deferred acquisition costs, value of insurance in force acquired, unearned revenue reserves and policyholder liabilities. See Note 2 to our consolidated financial statements for further information. |
(2) | See Note 1 to our consolidated financial statements for further discussion on this one-time adjustment related to an accounting change. |
Accumulated Other Comprehensive Income Reclassification Adjustments | |||||||||||||||
Six months ended June 30, 2019 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available-for-Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital gains on sales of fixed maturities | $ | (2,833 | ) | $ | — | $ | — | $ | (2,833 | ) | |||||
Adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | 143 | — | — | 143 | |||||||||||
Other expenses - change in unrecognized postretirement items: | |||||||||||||||
Net actuarial loss | — | — | 530 | 530 | |||||||||||
Reclassifications before income taxes | (2,690 | ) | — | 530 | (2,160 | ) | |||||||||
Income taxes | 565 | — | (111 | ) | 454 | ||||||||||
Reclassification adjustments | $ | (2,125 | ) | $ | — | $ | 419 | $ | (1,706 | ) |
Accumulated Other Comprehensive Income Reclassification Adjustments | |||||||||||||||
Three months ended March 31, 2019 | |||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Realized capital gains on sales of fixed maturities | $ | (2,994 | ) | $ | — | $ | — | $ | (2,994 | ) | |||||
Adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | 133 | — | — | 133 | |||||||||||
Other expenses - change in unrecognized postretirement items: | |||||||||||||||
Net actuarial loss | — | — | 263 | 263 | |||||||||||
Reclassifications before income taxes | (2,861 | ) | — | 263 | (2,598 | ) | |||||||||
Income taxes | 601 | — | (55 | ) | 546 | ||||||||||
Reclassification adjustments | $ | (2,260 | ) | $ | — | $ | 208 | $ | (2,052 | ) |
Accumulated Other Comprehensive Income Reclassification Adjustments | Accumulated Other Comprehensive Income Reclassification Adjustments | |||||||||||||||||||||||||||||
Three months ended March 31, 2018 | Six months ended June 30, 2018 | |||||||||||||||||||||||||||||
Unrealized Net Investment Gains (Losses) on Available For Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | Unrealized Net Investment Gains (Losses) on Available-for-Sale Securities (1) | Accumulated Non-Credit Impairment Losses (1) | Underfunded Status of Postretirement Benefit Plans | Total | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||
Realized capital gains on sales of fixed maturities | $ | (83 | ) | $ | — | $ | — | $ | (83 | ) | $ | (1,795 | ) | $ | — | $ | — | $ | (1,795 | ) | ||||||||||
Adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities | 51 | — | — | 51 | (8 | ) | — | — | (8 | ) | ||||||||||||||||||||
Other expenses - change in unrecognized postretirement items: | ||||||||||||||||||||||||||||||
Net actuarial loss | — | — | 331 | 331 | — | — | 668 | 668 | ||||||||||||||||||||||
Reclassifications before income taxes | (32 | ) | — | 331 | 299 | (1,803 | ) | — | 668 | (1,135 | ) | |||||||||||||||||||
Income taxes | 7 | — | (69 | ) | (62 | ) | 379 | — | (139 | ) | 240 | |||||||||||||||||||
Reclassification adjustments | $ | (25 | ) | $ | — | $ | 262 | $ | 237 | $ | (1,424 | ) | $ | — | $ | 529 | $ | (895 | ) |
(1) | See Note 2 to our consolidated financial statements for further information. |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | |||||||||||||||||||||
Numerator: | ||||||||||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 34,043 | $ | 23,565 | $ | 32,298 | $ | 32,803 | $ | 66,341 | $ | 56,368 | ||||||||||
Less: Dividends on Series B preferred stock | 38 | 38 | 37 | 37 | 75 | 75 | ||||||||||||||||
Income available to common stockholders | $ | 34,005 | $ | 23,527 | $ | 32,261 | $ | 32,766 | $ | 66,266 | $ | 56,293 | ||||||||||
Denominator: | ||||||||||||||||||||||
Weighted average shares - basic | 24,765,277 | 25,003,691 | 24,757,090 | 24,916,597 | 24,761,161 | 24,960,391 | ||||||||||||||||
Effect of dilutive securities - stock-based compensation | 11,176 | 15,818 | 11,122 | 12,903 | 11,149 | 14,405 | ||||||||||||||||
Weighted average shares - diluted | 24,776,453 | 25,019,509 | 24,768,212 | 24,929,500 | 24,772,310 | 24,974,796 | ||||||||||||||||
Earnings per common share | $ | 1.37 | $ | 0.94 | $ | 1.30 | $ | 1.31 | $ | 2.68 | $ | 2.26 | ||||||||||
Earnings per common share - assuming dilution | $ | 1.37 | $ | 0.94 | $ | 1.30 | $ | 1.31 | $ | 2.68 | $ | 2.25 |
Financial Information Concerning our Operating Segments | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Pre-tax adjusted operating income: | |||||||||||||||
Annuity | $ | 14,637 | $ | 15,998 | $ | 30,299 | $ | 32,580 | |||||||
Life Insurance | 18,239 | 16,381 | 28,331 | 27,278 | |||||||||||
Corporate and Other | 4,595 | 5,434 | 8,914 | 8,967 | |||||||||||
Total pre-tax adjusted operating income | 37,471 | 37,813 | 67,544 | 68,825 | |||||||||||
Adjustments to pre-tax adjusted operating income: | |||||||||||||||
Net realized gains/losses on investments (1) | 366 | 878 | 9,518 | (1,936 | ) | ||||||||||
Change in fair value of derivatives (1) | 345 | 246 | 1,498 | (398 | ) | ||||||||||
Pre-tax net income attributable to FBL Financial Group, Inc. | 38,182 | 38,937 | 78,560 | 66,491 | |||||||||||
Income tax expense | (5,511 | ) | (5,831 | ) | (11,787 | ) | (9,644 | ) | |||||||
Tax on equity income | (373 | ) | (303 | ) | (432 | ) | (479 | ) | |||||||
Net income attributable to FBL Financial Group, Inc. | $ | 32,298 | $ | 32,803 | $ | 66,341 | $ | 56,368 | |||||||
Adjusted operating revenues: | |||||||||||||||
Annuity | $ | 54,263 | $ | 56,415 | $ | 106,945 | $ | 113,850 | |||||||
Life Insurance | 110,938 | 109,581 | 218,196 | 217,308 | |||||||||||
Corporate and Other | 23,554 | 23,869 | 46,682 | 47,980 | |||||||||||
188,755 | 189,865 | 371,823 | 379,138 | ||||||||||||
Net realized gains/losses on investments (1) | 377 | 844 | 9,666 | (2,127 | ) | ||||||||||
Change in fair value of derivatives (1) | 3,774 | (260 | ) | 14,973 | (4,132 | ) | |||||||||
Consolidated revenues | $ | 192,906 | $ | 190,449 | $ | 396,462 | $ | 372,879 |
Financial Information Concerning our Operating Segments | |||||||
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Pre-tax adjusted operating income: | |||||||
Annuity | $ | 15,662 | $ | 16,582 | |||
Life Insurance | 10,092 | 10,897 | |||||
Corporate and Other | 4,319 | 3,533 | |||||
Total pre-tax adjusted operating income | 30,073 | 31,012 | |||||
Adjustments to pre-tax adjusted operating income: | |||||||
Net realized gains/losses on investments (1) | 9,152 | (2,814 | ) | ||||
Change in fair value of derivatives (1) | 1,153 | (644 | ) | ||||
Pre-tax net income attributable to FBL Financial Group, Inc. | 40,378 | 27,554 | |||||
Income tax expense | (6,276 | ) | (3,813 | ) | |||
Tax on equity income | (59 | ) | (176 | ) | |||
Net income attributable to FBL Financial Group, Inc. | $ | 34,043 | $ | 23,565 | |||
Adjusted operating revenues: | |||||||
Annuity | $ | 52,682 | $ | 57,435 | |||
Life Insurance | 107,258 | 107,727 | |||||
Corporate and Other | 23,128 | 24,111 | |||||
183,068 | 189,273 | ||||||
Net realized gains/losses on investments (1) | 9,289 | (2,971 | ) | ||||
Change in fair value of derivatives (1) | 11,199 | (3,872 | ) | ||||
Consolidated revenues | $ | 203,556 | $ | 182,430 |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired and interest sensitive policy reserves attributable to these items. |
Equity Income by Operating Segment | Equity Income by Operating Segment | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Pre-tax equity income: | ||||||||||||||||||||||
Life Insurance | $ | 370 | $ | 695 | $ | 1,008 | $ | 1,292 | $ | 1,378 | $ | 1,987 | ||||||||||
Corporate and Other | (91 | ) | 141 | 769 | 150 | 678 | 291 | |||||||||||||||
279 | 836 | 1,777 | 1,442 | 2,056 | 2,278 | |||||||||||||||||
Income taxes | (59 | ) | (176 | ) | (373 | ) | (303 | ) | (432 | ) | (479 | ) | ||||||||||
Equity income, net of related income taxes | $ | 220 | $ | 660 | $ | 1,404 | $ | 1,139 | $ | 1,624 | $ | 1,799 |
Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance | Reconciliation of Traditional Life Insurance Premiums, Net of Reinsurance | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Traditional and universal life insurance premiums collected | $ | 78,001 | $ | 76,263 | $ | 79,398 | $ | 77,900 | $ | 157,399 | $ | 154,163 | ||||||||||
Premiums collected on interest sensitive products | (28,379 | ) | (26,582 | ) | (29,517 | ) | (27,849 | ) | (57,896 | ) | (54,431 | ) | ||||||||||
Traditional life insurance premiums collected | 49,622 | 49,681 | 49,881 | 50,051 | 99,503 | 99,732 | ||||||||||||||||
Change in due premiums and other | (230 | ) | (184 | ) | 1,106 | 1,040 | 876 | 856 | ||||||||||||||
Traditional life insurance premiums as included in the Consolidated Statements of Operations | $ | 49,392 | $ | 49,497 | $ | 50,987 | $ | 51,091 | $ | 100,379 | $ | 100,588 |
Interest Sensitive Product Charges by Segment | |||||||
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Annuity | |||||||
Surrender charges and other | $ | 1,567 | $ | 1,202 | |||
Life Insurance | |||||||
Administration charges | 4,667 | 4,046 | |||||
Cost of insurance charges | 12,633 | 12,537 | |||||
Surrender charges | 621 | 681 | |||||
Amortization of policy initiation fees | 1,067 | 795 | |||||
Total | 18,988 | 18,059 | |||||
Corporate and Other | |||||||
Administration charges | $ | 1,236 | $ | 1,316 | |||
Cost of insurance charges | 7,202 | 7,140 | |||||
Surrender charges | 24 | 23 | |||||
Separate account charges | 1,936 | 2,145 | |||||
Amortization of policy initiation fees | 7 | 397 | |||||
Total | 10,405 | 11,021 | |||||
Impact of net realized gains/losses on investments and change in fair value of derivatives on amortization of unearned revenue reserves | 306 | (184 | ) | ||||
Interest sensitive product charges as included in the Consolidated Statements of Operations | $ | 31,266 | $ | 30,098 |
Interest Sensitive Product Charges by Segment | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Annuity | |||||||||||||||
Rider and other product charges | $ | 1,370 | $ | 933 | $ | 2,633 | $ | 1,786 | |||||||
Surrender charges | 402 | 284 | 706 | 633 | |||||||||||
Total | 1,772 | 1,217 | 3,339 | 2,419 | |||||||||||
Life Insurance | |||||||||||||||
Administration charges | 4,926 | 4,194 | 9,593 | 8,240 | |||||||||||
Cost of insurance charges | 12,813 | 12,681 | 25,446 | 25,218 | |||||||||||
Surrender charges | 718 | 568 | 1,339 | 1,249 | |||||||||||
Amortization of policy initiation fees | 1,178 | 1,636 | 2,245 | 2,431 | |||||||||||
Total | 19,635 | 19,079 | 38,623 | 37,138 | |||||||||||
Corporate and Other | |||||||||||||||
Administration charges | 1,232 | 1,325 | 2,468 | 2,641 | |||||||||||
Cost of insurance charges | 7,184 | 7,195 | 14,386 | 14,335 | |||||||||||
Surrender charges | 37 | 20 | 61 | 43 | |||||||||||
Separate account charges | 2,016 | 2,165 | 3,952 | 4,310 | |||||||||||
Amortization of policy initiation fees | 245 | 397 | 252 | 794 | |||||||||||
Total | 10,714 | 11,102 | 21,119 | 22,123 | |||||||||||
Impact of net realized gains/losses on investments and change in fair value of derivatives on amortization of unearned revenue reserves | 413 | (492 | ) | 719 | (676 | ) | |||||||||
Interest sensitive product charges as included in the Consolidated Statements of Operations | $ | 32,534 | $ | 30,906 | $ | 63,800 | $ | 61,004 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | (Dollars in thousands, except per share data) | ||||||||||||||||||||||||||||||
Net income attributable to FBL Financial Group, Inc. | $ | 34,043 | $ | 23,565 | 44 | % | $ | 32,298 | $ | 32,803 | (2 | )% | $ | 66,341 | $ | 56,368 | 18 | % | |||||||||||||
Net income adjustments: | |||||||||||||||||||||||||||||||
Net realized gains/losses on investments (1) | (7,230 | ) | 2,223 | (425 | )% | (289 | ) | (694 | ) | (58 | )% | (7,519 | ) | 1,529 | (592 | )% | |||||||||||||||
Change in fair value of derivatives (1) | (911 | ) | 509 | (279 | )% | (272 | ) | (194 | ) | 40 | % | (1,183 | ) | 315 | (476 | )% | |||||||||||||||
Adjusted operating income (2) | $ | 25,902 | $ | 26,297 | (2 | )% | $ | 31,737 | $ | 31,915 | (1 | )% | $ | 57,639 | $ | 58,212 | (1 | )% | |||||||||||||
Pre-tax adjusted operating income: | |||||||||||||||||||||||||||||||
Annuity segment | $ | 15,662 | $ | 16,582 | (6 | )% | $ | 14,637 | $ | 15,998 | (9 | )% | $ | 30,299 | $ | 32,580 | (7 | )% | |||||||||||||
Life Insurance segment | 10,092 | 10,897 | (7 | )% | 18,239 | 16,381 | 11 | % | 28,331 | 27,278 | 4 | % | |||||||||||||||||||
Corporate and Other segment | 4,319 | 3,533 | 22 | % | 4,595 | 5,434 | (15 | )% | 8,914 | 8,967 | (1 | )% | |||||||||||||||||||
Total pre-tax adjusted operating income | 30,073 | 31,012 | (3 | )% | 37,471 | 37,813 | (1 | )% | 67,544 | 68,825 | (2 | )% | |||||||||||||||||||
Income taxes on adjusted operating income | (4,171 | ) | (4,715 | ) | (12 | )% | (5,734 | ) | (5,898 | ) | (3 | )% | (9,905 | ) | (10,613 | ) | (7 | )% | |||||||||||||
Adjusted operating income (2) | $ | 25,902 | $ | 26,297 | (2 | )% | $ | 31,737 | $ | 31,915 | (1 | )% | $ | 57,639 | $ | 58,212 | (1 | )% | |||||||||||||
Earnings per common share - assuming dilution | $ | 1.37 | $ | 0.94 | 46 | % | $ | 1.30 | $ | 1.31 | (1 | )% | $ | 2.68 | $ | 2.25 | 19 | % | |||||||||||||
Adjusted operating income per common share - assuming dilution (2) | 1.04 | 1.05 | (1 | )% | 1.28 | 1.28 | — | % | 2.32 | 2.33 | — | % | |||||||||||||||||||
Effective tax rate on adjusted operating income | 14 | % | 15 | % | 15 | % | 16 | % | 15 | % | 15 | % | |||||||||||||||||||
Average invested assets, at amortized cost (3) | $ | 8,292,919 | $ | 8,191,122 | 1 | % | $ | 8,307,155 | $ | 8,227,072 | 1 | % | |||||||||||||||||||
Annualized yield on average invested assets (3) | 4.97 | % | 5.21 | % | 5.00 | % | 5.18 | % |
(1) | Amounts are net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs and value of insurance in force acquired, as well as changes in interest sensitive product reserves and income taxes attributable to these items. |
(2) | Adjusted operating income is a non-GAAP measure of earnings, see the Overview section above for additional information. |
(3) | Average invested assets and annualized yield, including investments held as securities and indebtedness of related parties. |
Annuity Segment | |||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Adjusted operating revenues: | |||||||||||||||||||||||||||||||
Interest sensitive product charges | $ | 1,567 | $ | 1,202 | 30 | % | $ | 1,772 | $ | 1,217 | 46 | % | $ | 3,339 | $ | 2,419 | 38 | % | |||||||||||||
Net investment income | 51,115 | 56,233 | (9 | )% | 52,491 | 55,198 | (5 | )% | 103,606 | 111,431 | (7 | )% | |||||||||||||||||||
Total adjusted operating revenues | 52,682 | 57,435 | (8 | )% | 54,263 | 56,415 | (4 | )% | 106,945 | 113,850 | (6 | )% | |||||||||||||||||||
Adjusted operating benefits and expenses: | |||||||||||||||||||||||||||||||
Interest sensitive product benefits | 28,070 | 31,286 | (10 | )% | 30,450 | 31,393 | (3 | )% | 58,520 | 62,679 | (7 | )% | |||||||||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||||||||||||
Commissions net of deferrals | 514 | 504 | 2 | % | 482 | 518 | (7 | )% | 996 | 1,022 | (3 | )% | |||||||||||||||||||
Amortization of deferred acquisition costs | 2,679 | 3,065 | (13 | )% | 2,917 | 3,070 | (5 | )% | 5,596 | 6,135 | (9 | )% | |||||||||||||||||||
Amortization of value of insurance in force | 163 | 172 | (5 | )% | 163 | 172 | (5 | )% | 326 | 344 | (5 | )% | |||||||||||||||||||
Other underwriting expenses | 5,594 | 5,826 | (4 | )% | 5,614 | 5,264 | 7 | % | 11,208 | 11,090 | 1 | % | |||||||||||||||||||
Total underwriting, acquisition and insurance expenses | 8,950 | 9,567 | (6 | )% | 9,176 | 9,024 | 2 | % | 18,126 | 18,591 | (3 | )% | |||||||||||||||||||
Total adjusted operating benefits and expenses | 37,020 | 40,853 | (9 | )% | 39,626 | 40,417 | (2 | )% | 76,646 | 81,270 | (6 | )% | |||||||||||||||||||
Pre-tax adjusted operating income | $ | 15,662 | $ | 16,582 | (6 | )% | $ | 14,637 | $ | 15,998 | (9 | )% | $ | 30,299 | $ | 32,580 | (7 | )% |
Other data | |||||||||||||||||||||||||||||||
Annuity premiums collected, direct (1) | $ | 69,506 | $ | 78,810 | (12 | )% | $ | 59,652 | $ | 79,838 | (25 | )% | $ | 129,158 | $ | 158,648 | (19 | )% | |||||||||||||
Policy liabilities and accruals, end of period | 4,379,558 | 4,462,979 | (2 | )% | 4,400,928 | 4,422,265 | — | % | |||||||||||||||||||||||
Average invested assets, at amortized cost | 4,481,499 | 4,505,251 | (1 | )% | 4,486,038 | 4,523,314 | (1 | )% | |||||||||||||||||||||||
Other investment-related income included in net investment income (2) | 1,039 | 2,657 | (61 | )% | 507 | 1,233 | (59 | )% | 1,546 | 3,890 | (60 | )% | |||||||||||||||||||
Average individual annuity account value | 3,179,153 | 3,106,259 | 2 | % | 3,180,894 | 3,123,772 | 2 | % | |||||||||||||||||||||||
Earned spread on individual annuity products: | |||||||||||||||||||||||||||||||
Weighted average yield on cash and invested assets | 4.76 | % | 5.03 | % | 4.75 | % | 4.92 | % | |||||||||||||||||||||||
Weighted average crediting rate | 2.53 | % | 2.46 | % | 2.56 | % | 2.48 | % | |||||||||||||||||||||||
Spread | 2.23 | % | 2.57 | % | 2.19 | % | 2.44 | % | |||||||||||||||||||||||
Individual annuity withdrawal rate | 5.6 | % | 5.4 | % | 5.5 | % | 5.2 | % |
(1) | Premiums collected is a non-GAAP measure of sales production, see Note |
(2) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Life Insurance Segment | |||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Adjusted operating revenues: | |||||||||||||||||||||||||||||||
Interest sensitive product charges and other income | $ | 18,875 | $ | 17,980 | 5 | % | $ | 19,497 | $ | 18,726 | 4 | % | $ | 38,372 | $ | 36,706 | 5 | % | |||||||||||||
Traditional life insurance premiums | 49,392 | 49,497 | — | % | 50,987 | 51,091 | — | % | 100,379 | 100,588 | — | % | |||||||||||||||||||
Net investment income | 38,991 | 40,250 | (3 | )% | 40,454 | 39,764 | 2 | % | 79,445 | 80,014 | (1 | )% | |||||||||||||||||||
Total adjusted operating revenues | 107,258 | 107,727 | — | % | 110,938 | 109,581 | 1 | % | 218,196 | 217,308 | — | % | |||||||||||||||||||
Adjusted operating benefits and expenses: | |||||||||||||||||||||||||||||||
Interest sensitive product benefits: | |||||||||||||||||||||||||||||||
Interest and index credits | 8,051 | 8,393 | (4 | )% | 9,018 | 9,093 | (1 | )% | 17,069 | 17,486 | (2 | )% | |||||||||||||||||||
Death benefits and other | 14,466 | 15,241 | (5 | )% | 13,892 | 14,709 | (6 | )% | 28,358 | 29,950 | (5 | )% | |||||||||||||||||||
Total interest sensitive product benefits | 22,517 | 23,634 | (5 | )% | 22,910 | 23,802 | (4 | )% | 45,427 | 47,436 | (4 | )% | |||||||||||||||||||
Traditional life insurance benefits: | |||||||||||||||||||||||||||||||
Death benefits | 24,416 | 23,735 | 3 | % | 20,577 | 19,297 | 7 | % | 44,993 | 43,032 | 5 | % | |||||||||||||||||||
Surrender and other benefits | 9,723 | 10,144 | (4 | )% | 10,092 | 10,392 | (3 | )% | 19,815 | 20,536 | (4 | )% | |||||||||||||||||||
Increase in traditional life future policy benefits | 12,534 | 11,578 | 8 | % | 11,291 | 14,022 | (19 | )% | 23,825 | 25,600 | (7 | )% | |||||||||||||||||||
Total traditional life insurance benefits | 46,673 | 45,457 | 3 | % | 41,960 | 43,711 | (4 | )% | 88,633 | 89,168 | (1 | )% | |||||||||||||||||||
Distributions to participating policyholders | 2,534 | 2,551 | (1 | )% | 2,564 | 2,560 | — | % | 5,098 | 5,111 | — | % | |||||||||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||||||||||||
Commission expense, net of deferrals | 4,639 | 4,923 | (6 | )% | 5,179 | 4,715 | 10 | % | 9,818 | 9,638 | 2 | % | |||||||||||||||||||
Amortization of deferred acquisition costs | 4,799 | 4,436 | 8 | % | 4,344 | 4,498 | (3 | )% | 9,143 | 8,934 | 2 | % | |||||||||||||||||||
Amortization of value of insurance in force | 372 | 373 | — | % | 372 | 373 | — | % | 744 | 746 | — | % | |||||||||||||||||||
Other underwriting expenses | 16,002 | 16,151 | (1 | )% | 16,378 | 14,833 | 10 | % | 32,380 | 30,984 | 5 | % | |||||||||||||||||||
Total underwriting, acquisition and insurance expenses | 25,812 | 25,883 | — | % | 26,273 | 24,419 | 8 | % | 52,085 | 50,302 | 4 | % | |||||||||||||||||||
Total adjusted operating benefits and expenses | 97,536 | 97,525 | — | % | 93,707 | 94,492 | (1 | )% | 191,243 | 192,017 | — | % | |||||||||||||||||||
9,722 | 10,202 | (5 | )% | 17,231 | 15,089 | 14 | % | 26,953 | 25,291 | 7 | % | ||||||||||||||||||||
Equity income, before tax | 370 | 695 | (47 | )% | 1,008 | 1,292 | (22 | )% | 1,378 | 1,987 | (31 | )% | |||||||||||||||||||
Pre-tax adjusted operating income | $ | 10,092 | $ | 10,897 | (7 | )% | $ | 18,239 | $ | 16,381 | 11 | % | $ | 28,331 | $ | 27,278 | 4 | % |
Life Insurance Segment - continued | |||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||
Other data | |||||||||||||||||||||||||||||||
Life premiums collected, net of reinsurance (1) | $ | 78,001 | $ | 76,263 | 2 | % | $ | 79,398 | $ | 77,900 | 2 | % | $ | 157,399 | $ | 154,163 | 2 | % | |||||||||||||
Policy liabilities and accruals, end of period | 3,015,751 | 2,918,284 | 3 | % | 3,032,835 | 2,942,046 | 3 | % | |||||||||||||||||||||||
Life insurance in force, end of period | 60,240,261 | 58,543,298 | 3 | % | 60,708,865 | 59,008,306 | 3 | % | |||||||||||||||||||||||
Average invested assets, at amortized cost (2) | 3,107,575 | 2,979,404 | 4 | % | 3,122,408 | 2,999,681 | 4 | % | |||||||||||||||||||||||
Other investment-related income included in net investment income (3) | 330 | 1,498 | (78 | )% | 953 | 374 | 155 | % | 1,283 | 1,872 | (31 | )% | |||||||||||||||||||
Average interest sensitive life account value | 869,476 | 844,559 | 3 | % | 872,635 | 848,459 | 3 | % | |||||||||||||||||||||||
Interest sensitive life insurance spread: | |||||||||||||||||||||||||||||||
Weighted average yield on cash and invested assets (2) | 5.21 | % | 5.33 | % | 5.27 | % | 5.35 | % | |||||||||||||||||||||||
Weighted average crediting rate | 3.68 | % | 3.64 | % | 3.72 | % | 3.68 | % | |||||||||||||||||||||||
Spread | 1.53 | % | 1.69 | % | 1.55 | % | 1.67 | % | |||||||||||||||||||||||
Life insurance lapse and surrender rates | 4.6 | % | 4.9 | % | 4.7 | % | 4.8 | % | |||||||||||||||||||||||
Death benefits, net of reinsurance and reserves released | $ | 26,672 | $ | 26,479 | 1 | % | $19,867 | $22,384 | (11 | )% | $ | 46,539 | $ | 48,863 | (5 | )% |
(1) | Premiums collected is a non-GAAP measure of sales production, see Note |
(2) | Average invested assets and weighted average yield including investments held as securities and indebtedness of related parties. |
(3) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Corporate and Other Segment | |||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Adjusted operating revenues: | |||||||||||||||||||||
Interest sensitive product charges | $ | 10,714 | $ | 11,102 | (3 | )% | $ | 21,119 | $ | 22,123 | (5 | )% | |||||||||
Net investment income | 8,588 | 8,777 | (2 | )% | 17,228 | 17,188 | — | % | |||||||||||||
Other income | 4,252 | 3,990 | 7 | % | 8,335 | 8,669 | (4 | )% | |||||||||||||
Total adjusted operating revenues | 23,554 | 23,869 | (1 | )% | 46,682 | 47,980 | (3 | )% | |||||||||||||
Adjusted operating benefits and expenses: | |||||||||||||||||||||
Interest sensitive product benefits | 8,858 | 7,714 | 15 | % | 19,223 | 17,056 | 13 | % | |||||||||||||
Underwriting, acquisition and insurance expenses: | |||||||||||||||||||||
Commission expense, net of deferrals | 746 | 667 | 12 | % | 1,450 | 1,347 | 8 | % | |||||||||||||
Amortization of deferred acquisition costs | 905 | 1,876 | (52 | )% | (62 | ) | 4,388 | (101 | )% | ||||||||||||
Other underwriting expenses | 1,413 | 1,506 | (6 | )% | 2,566 | 2,908 | (12 | )% | |||||||||||||
Total underwriting, acquisition and insurance expenses | 3,064 | 4,049 | (24 | )% | 3,954 | 8,643 | (54 | )% | |||||||||||||
Interest expense | 1,212 | 1,213 | — | % | 2,424 | 2,426 | — | % | |||||||||||||
Other expenses | 6,635 | 5,627 | 18 | % | 12,885 | 11,220 | 15 | % | |||||||||||||
Total adjusted operating benefits and expenses | 19,769 | 18,603 | 6 | % | 38,486 | 39,345 | (2 | )% | |||||||||||||
3,785 | 5,266 | (28 | )% | 8,196 | 8,635 | (5 | )% | ||||||||||||||
Net loss attributable to noncontrolling interest | 41 | 18 | 128 | % | 40 | 41 | (2 | )% | |||||||||||||
Equity income, before tax | 769 | 150 | 413 | % | 678 | 291 | 133 | % | |||||||||||||
Pre-tax adjusted operating income | $ | 4,595 | $ | 5,434 | (15 | )% | $ | 8,914 | $ | 8,967 | (1 | )% |
Other data | |||||||||||||||||||||
Average invested assets, at amortized cost (1) | $ | 698,709 | $ | 704,077 | (1 | )% | |||||||||||||||
Other investment-related income included in net investment income (2) | $ | 367 | $ | 149 | 146 | % | 488 | 286 | 71 | % | |||||||||||
Average interest sensitive life account value | 361,570 | 359,978 | — | % | |||||||||||||||||
Death benefits, net of reinsurance and reserves released | 5,453 | 4,321 | 26 | % | 12,522 | 10,260 | 22 | % | |||||||||||||
Estimated impact on pre-tax adjusted operating income from separate account performance on amortization of deferred acquisition costs, deferred sales inducements and unearned revenue reserve | 600 | (255 | ) | (335 | )% | 2,800 | (1,115 | ) | (351 | )% |
Corporate and Other Segment | ||||||||||
Three months ended March 31, | ||||||||||
2019 | 2018 | Change | ||||||||
(Dollars in thousands) | ||||||||||
Adjusted operating revenues: | ||||||||||
Interest sensitive product charges | $ | 10,405 | $ | 11,021 | (6 | )% | ||||
Net investment income | 8,640 | 8,411 | 3 | % | ||||||
Other income | 4,083 | 4,679 | (13 | )% | ||||||
Total adjusted operating revenues | 23,128 | 24,111 | (4 | )% | ||||||
Adjusted operating benefits and expenses: | ||||||||||
Interest sensitive product benefits | 10,365 | 9,342 | 11 | % | ||||||
Underwriting, acquisition and insurance expenses: | ||||||||||
Commission expense, net of deferrals | 704 | 680 | 4 | % | ||||||
Amortization of deferred acquisition costs | (967 | ) | 2,512 | (138 | )% | |||||
Other underwriting expenses | 1,153 | 1,402 | (18 | )% | ||||||
Total underwriting, acquisition and insurance expenses | 890 | 4,594 | (81 | )% | ||||||
Interest expense | 1,212 | 1,213 | — | % | ||||||
Other expenses | 6,250 | 5,593 | 12 | % | ||||||
Total adjusted operating benefits and expenses | 18,717 | 20,742 | (10 | )% | ||||||
4,411 | 3,369 | 31 | % | |||||||
Net (income) loss attributable to noncontrolling interest | (1 | ) | 23 | (104 | )% | |||||
Equity (loss) income, before tax | (91 | ) | 141 | (165 | )% | |||||
Pre-tax adjusted operating income | $ | 4,319 | $ | 3,533 | 22 | % |
Other data | ||||||||||
Average invested assets, at amortized cost (1) | $ | 703,846 | $ | 706,468 | — | % | ||||
Other investment-related income included in net investment income (2) | 121 | 137 | (12 | )% | ||||||
Average interest sensitive life account value | 361,872 | 360,586 | — | % | ||||||
Death benefits, net of reinsurance and reserves released | 7,069 | 5,939 | 19 | % | ||||||
Estimated impact on pre-tax adjusted operating income from separate account performance on amortization of deferred acquisition costs, deferred sales inducements and unearned revenue reserve | 2,200 | (700 | ) | (414 | )% |
(1) | Average invested assets including investments held as securities and indebtedness of related parties. |
(2) | Includes prepayment fee income and adjustments to the amortization of premium or discounts from changes in our payment speed assumptions. |
Components of income taxes | Components of income taxes | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Income tax expense | $ | (6,276 | ) | $ | (3,813 | ) | $ | (5,511 | ) | $ | (5,831 | ) | $ | (11,787 | ) | $ | (9,644 | ) | ||||
Tax on equity income | (59 | ) | (176 | ) | (373 | ) | (303 | ) | (432 | ) | (479 | ) | ||||||||||
Income tax offset on net income adjustments | 2,164 | (726 | ) | 150 | 236 | 2,314 | (490 | ) | ||||||||||||||
Income taxes on adjusted operating income | $ | (4,171 | ) | $ | (4,715 | ) | $ | (5,734 | ) | $ | (5,898 | ) | $ | (9,905 | ) | $ | (10,613 | ) | ||||
Income taxes on adjusted operating income before benefits of LIHTC investments | $ | (5,076 | ) | $ | (5,642 | ) | $ | (6,633 | ) | $ | (6,824 | ) | $ | (11,709 | ) | $ | (12,466 | ) | ||||
Amounts related to LIHTC investments | 905 | 927 | 899 | 926 | 1,804 | 1,853 | ||||||||||||||||
Income taxes on adjusted operating income | $ | (4,171 | ) | $ | (4,715 | ) | $ | (5,734 | ) | $ | (5,898 | ) | $ | (9,905 | ) | $ | (10,613 | ) |
Impact of Adjustments to Net Income Attributable to FBL | Impact of Adjustments to Net Income Attributable to FBL | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Realized gains (losses) on investments and change in fair value of equity securities and derivatives | $ | 10,846 | $ | (3,995 | ) | $ | 444 | $ | 1,357 | $ | 11,290 | $ | (2,638 | ) | ||||||||
Offsets: (1) | ||||||||||||||||||||||
Change in amortization | (256 | ) | 338 | (48 | ) | (226 | ) | (304 | ) | 112 | ||||||||||||
Reserve change on interest sensitive products | (285 | ) | 199 | 315 | (7 | ) | 30 | 192 | ||||||||||||||
Income tax | (2,164 | ) | 726 | (150 | ) | (236 | ) | (2,314 | ) | 490 | ||||||||||||
Net impact of adjustments to net income | $ | 8,141 | $ | (2,732 | ) | $ | 561 | $ | 888 | $ | 8,702 | $ | (1,844 | ) | ||||||||
Net impact per common share - basic and assuming dilution | $ | 0.33 | $ | (0.11 | ) | $ | 0.02 | $ | 0.03 | $ | 0.36 | $ | (0.08 | ) |
(1) | The items excluded from adjusted operating income impact the amortization of deferred acquisition costs, value of business acquired and unearned revenue reserve. Certain interest sensitive reserves as well as income taxes are also impacted. |
Realized Gains (Losses) on Investments | ||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Realized gains (losses) on investments: | ||||||||||||||||||||||
Realized gains | $ | 5,772 | $ | 83 | $ | 218 | $ | 1,713 | $ | 5,990 | $ | 1,796 | ||||||||||
Realized losses | (34 | ) | (13 | ) | (304 | ) | (6 | ) | (338 | ) | (19 | ) | ||||||||||
Change in unrealized gains/losses on equity securities | 4,419 | (1,817 | ) | 463 | (866 | ) | 4,882 | (2,683 | ) | |||||||||||||
Total other-than-temporary impairment charges | (869 | ) | (1,040 | ) | — | — | (869 | ) | (1,040 | ) | ||||||||||||
Net realized investment gains (losses) | $ | 9,288 | $ | (2,787 | ) | $ | 377 | $ | 841 | $ | 9,665 | $ | (1,946 | ) |
Investment Credit Impairment Losses Recognized in Net Income | Investment Credit Impairment Losses Recognized in Net Income | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Corporate securities: | ||||||||||||||||||||||
Financial | $ | — | $ | 26 | $ | — | $ | — | $ | — | $ | 26 | ||||||||||
Energy | — | 1,014 | — | — | — | 1,014 | ||||||||||||||||
Other asset-backed | 869 | — | — | — | 869 | |||||||||||||||||
Total other-than-temporary impairment losses reported in net income | $ | 869 | $ | 1,040 | $ | — | $ | — | $ | 869 | $ | 1,040 |
Fixed Maturity Acquisitions Selected Information | ||||||||||||||||
Three months ended March 31, | Six months ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||
Cost of acquisitions: | ||||||||||||||||
Corporate | $ | 75,567 | $ | 48,683 | $ | 192,180 | $ | 86,494 | ||||||||
Mortgage- and asset-backed | 57,951 | 189,771 | 152,187 | 366,866 | ||||||||||||
Tax-exempt municipals | 8,060 | 33,750 | 18,692 | 60,600 | ||||||||||||
Total | $ | 141,578 | $ | 272,204 | $ | 363,059 | $ | 513,960 | ||||||||
Effective annual yield | 4.33 | % | 3.89 | % | 4.18 | % | 4.05 | % | ||||||||
Credit quality | ||||||||||||||||
NAIC 1 designation | 74.3 | % | 85.6 | % | 65.3 | % | 84.6 | % | ||||||||
NAIC 2 designation | 25.7 | % | 14.4 | % | 34.7 | % | 15.4 | % | ||||||||
Weighted-average life in years | 15.0 | 16.0 | 16.0 | 14.0 |
Investment Portfolio Summary | ||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||
Carrying Value | Percent | Carrying Value | Percent | Carrying Value | Percent | Carrying Value | Percent | |||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||
Fixed maturities - available for sale: | ||||||||||||||||||||||||||
Public | $ | 5,512,264 | 63.9 | % | $ | 5,367,590 | 63.8 | % | $ | 5,721,967 | 64.5 | % | $ | 5,367,590 | 63.8 | % | ||||||||||
144A private placement | 1,522,247 | 17.7 | 1,477,550 | 17.6 | 1,560,078 | 17.6 | 1,477,550 | 17.6 | ||||||||||||||||||
Private placement | 197,073 | 2.3 | 187,905 | 2.2 | 202,577 | 2.3 | 187,905 | 2.2 | ||||||||||||||||||
Total fixed maturities - available for sale | 7,231,584 | 83.9 | 7,033,045 | 83.6 | 7,484,622 | 84.4 | 7,033,045 | 83.6 | ||||||||||||||||||
Equity securities | 108,525 | 1.3 | 92,857 | 1.1 | 106,021 | 1.2 | 92,857 | 1.1 | ||||||||||||||||||
Mortgage loans | 1,023,655 | 11.9 | 1,039,829 | 12.4 | 1,019,124 | 11.5 | 1,039,829 | 12.4 | ||||||||||||||||||
Real estate | 1,543 | — | 1,543 | — | 1,543 | — | 1,543 | — | ||||||||||||||||||
Policy loans | 199,230 | 2.3 | 197,366 | 2.3 | 200,246 | 2.3 | 197,366 | 2.3 | ||||||||||||||||||
Short-term investments | 11,515 | 0.1 | 15,713 | 0.2 | 9,521 | 0.1 | 15,713 | 0.2 | ||||||||||||||||||
Other investments | 44,663 | 0.5 | 33,765 | 0.4 | 48,833 | 0.5 | 33,765 | 0.4 | ||||||||||||||||||
Total investments | $ | 8,620,715 | 100.0 | % | $ | 8,414,118 | 100.0 | % | $ | 8,869,910 | 100.0 | % | $ | 8,414,118 | 100.0 | % |
Credit Quality by NAIC Designation and Equivalent Rating | ||||||||||||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||
NAIC Designation | Equivalent Rating (1) | Carrying Value | Percent | Carrying Value | Percent | Equivalent Rating (1) | Carrying Value | Percent | Carrying Value | Percent | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | AAA, AA, A | $ | 4,939,251 | 68.3 | % | $ | 4,802,497 | 68.3 | % | AAA, AA, A | $ | 5,089,917 | 68.0 | % | $ | 4,802,497 | 68.3 | % | ||||||||||||||
2 | BBB | 2,100,462 | 29.0 | 2,063,069 | 29.3 | BBB | 2,224,368 | 29.7 | 2,063,069 | 29.3 | ||||||||||||||||||||||
Total investment grade | 7,039,713 | 97.3 | 6,865,566 | 97.6 | Total investment grade | 7,314,285 | 97.7 | 6,865,566 | 97.6 | |||||||||||||||||||||||
3 | BB | 121,325 | 1.7 | 105,544 | 1.5 | BB | 118,700 | 1.6 | 105,544 | 1.5 | ||||||||||||||||||||||
4 | B | 50,009 | 0.7 | 48,051 | 0.7 | B | 46,803 | 0.6 | 48,051 | 0.7 | ||||||||||||||||||||||
5 | CCC | 11,466 | 0.2 | 9,640 | 0.1 | CCC | 4,827 | 0.1 | 9,640 | 0.1 | ||||||||||||||||||||||
6 | In or near default | 9,071 | 0.1 | 4,244 | 0.1 | In or near default | 7 | — | 4,244 | 0.1 | ||||||||||||||||||||||
Total below investment grade | 191,871 | 2.7 | 167,479 | 2.4 | Total below investment grade | 170,337 | 2.3 | 167,479 | 2.4 | |||||||||||||||||||||||
Total fixed maturities - available for sale | $ | 7,231,584 | 100.0 | % | $ | 7,033,045 | 100.0 | % | Total fixed maturities - available for sale | $ | 7,484,622 | 100.0 | % | $ | 7,033,045 | 100.0 | % |
(1) | Equivalent ratings are based on those provided by nationally recognized rating agencies with some exceptions for certain residential mortgage, commercial mortgage- and asset-backed securities that are based on the expected loss of the security rather than the probability of default. This may result in a final designation being higher or lower than the equivalent credit rating. |
Gross Unrealized Gains and Gross Unrealized Losses by Internal Industry Classification | |||||||||||||||||||
March 31, 2019 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 331,507 | $ | 261,110 | $ | 17,273 | $ | 70,397 | $ | (3,133 | ) | ||||||||
Capital goods | 252,936 | 179,799 | 11,872 | 73,137 | (2,369 | ) | |||||||||||||
Communications | 137,686 | 111,916 | 8,921 | 25,770 | (2,146 | ) | |||||||||||||
Consumer cyclical | 119,234 | 106,500 | 5,899 | 12,734 | (1,208 | ) | |||||||||||||
Consumer non-cyclical | 538,302 | 343,974 | 23,800 | 194,328 | (16,337 | ) | |||||||||||||
Energy | 404,739 | 332,634 | 23,371 | 72,105 | (7,942 | ) | |||||||||||||
Finance | 632,748 | 522,635 | 32,934 | 110,113 | (4,023 | ) | |||||||||||||
Transportation | 106,348 | 93,348 | 5,301 | 13,000 | (1,111 | ) | |||||||||||||
Utilities | 744,403 | 675,517 | 75,760 | 68,886 | (2,193 | ) | |||||||||||||
Other | 164,673 | 148,150 | 8,573 | 16,523 | (519 | ) | |||||||||||||
Total corporate securities | 3,432,576 | 2,775,583 | 213,704 | 656,993 | (40,981 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,230,269 | 1,475,032 | 85,889 | 755,237 | (17,422 | ) | |||||||||||||
United States Government and agencies | 20,713 | 17,014 | 1,203 | 3,699 | (45 | ) | |||||||||||||
States and political subdivisions | 1,548,026 | 1,516,797 | 118,037 | 31,229 | (2,018 | ) | |||||||||||||
Total | $ | 7,231,584 | $ | 5,784,426 | $ | 418,833 | $ | 1,447,158 | $ | (60,466 | ) |
Gross Unrealized Gains and Gross Unrealized Losses by Internal Industry Classification | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 321,192 | $ | 194,019 | $ | 9,990 | $ | 127,173 | $ | (8,376 | ) | ||||||||
Capital goods | 248,385 | 123,157 | 6,933 | 125,228 | (7,208 | ) | |||||||||||||
Communications | 131,364 | 75,687 | 5,098 | 55,677 | (4,705 | ) | |||||||||||||
Consumer cyclical | 105,882 | 74,866 | 3,627 | 31,016 | (1,782 | ) | |||||||||||||
Consumer non-cyclical | 497,789 | 224,674 | 12,441 | 273,115 | (29,469 | ) | |||||||||||||
Energy | 384,982 | 227,770 | 11,460 | 157,212 | (17,063 | ) | |||||||||||||
Finance | 602,159 | 392,188 | 22,124 | 209,971 | (10,298 | ) | |||||||||||||
Transportation | 96,579 | 61,034 | 3,049 | 35,545 | (2,135 | ) | |||||||||||||
Utilities | 733,604 | 565,250 | 60,399 | 168,354 | (7,483 | ) | |||||||||||||
Other | 157,949 | 98,683 | 3,851 | 59,266 | (2,414 | ) | |||||||||||||
Total corporate securities | 3,279,885 | 2,037,328 | 138,972 | 1,242,557 | (90,933 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,192,996 | 1,076,388 | 69,820 | 1,116,608 | (31,961 | ) | |||||||||||||
United States Government and agencies | 20,535 | 14,061 | 996 | 6,474 | (134 | ) | |||||||||||||
States and political subdivisions | 1,539,629 | 1,378,005 | 95,921 | 161,624 | (5,913 | ) | |||||||||||||
Total | $ | 7,033,045 | $ | 4,505,782 | $ | 305,709 | $ | 2,527,263 | $ | (128,941 | ) |
Gross Unrealized Gains and Gross Unrealized Losses by Internal Industry Classification | |||||||||||||||||||
June 30, 2019 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 342,720 | $ | 307,173 | $ | 25,157 | $ | 35,547 | $ | (1,319 | ) | ||||||||
Capital goods | 281,101 | 257,517 | 20,495 | 23,584 | (316 | ) | |||||||||||||
Communications | 139,377 | 121,426 | 13,456 | 17,951 | (562 | ) | |||||||||||||
Consumer cyclical | 136,994 | 123,518 | 9,088 | 13,476 | (436 | ) | |||||||||||||
Consumer non-cyclical | 577,479 | 477,414 | 44,810 | 100,065 | (7,545 | ) | |||||||||||||
Energy | 408,248 | 370,359 | 33,306 | 37,889 | (8,586 | ) | |||||||||||||
Finance | 656,430 | 636,203 | 48,924 | 20,227 | (2,119 | ) | |||||||||||||
Transportation | 111,171 | 105,506 | 8,521 | 5,665 | (530 | ) | |||||||||||||
Utilities | 760,344 | 737,563 | 103,206 | 22,781 | (487 | ) | |||||||||||||
Other | 171,886 | 167,000 | 13,396 | 4,886 | (89 | ) | |||||||||||||
Total corporate securities | 3,585,750 | 3,303,679 | 320,359 | 282,071 | (21,989 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,324,581 | 2,089,202 | 138,312 | 235,379 | (3,633 | ) | |||||||||||||
United States Government and agencies | 18,585 | 15,603 | 1,572 | 2,982 | (16 | ) | |||||||||||||
States and political subdivisions | 1,555,706 | 1,545,061 | 140,791 | 10,645 | (758 | ) | |||||||||||||
Total | $ | 7,484,622 | $ | 6,953,545 | $ | 601,034 | $ | 531,077 | $ | (26,396 | ) |
Credit Quality of Available-for-Sale Fixed Maturities with Unrealized Losses | ||||||||||||||||
March 31, 2019 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 803,920 | 55.5 | % | $ | (18,923 | ) | 31.3 | % | ||||||
2 | BBB | 539,618 | 37.3 | (23,424 | ) | 38.7 | ||||||||||
Total investment grade | 1,343,538 | 92.8 | (42,347 | ) | 70.0 | |||||||||||
3 | BB | 60,328 | 4.2 | (8,251 | ) | 13.6 | ||||||||||
4 | B | 26,033 | 1.8 | (9,115 | ) | 15.1 | ||||||||||
5 | CCC | 8,489 | 0.6 | (401 | ) | 0.7 | ||||||||||
6 | In or near default | 8,770 | 0.6 | (352 | ) | 0.6 | ||||||||||
Total below investment grade | 103,620 | 7.2 | (18,119 | ) | 30.0 | |||||||||||
Total | $ | 1,447,158 | 100.0 | % | $ | (60,466 | ) | 100.0 | % |
December 31, 2018 | |||||||||||||||||||
Total Carrying Value | Carrying Value of Securities with Gross Unrealized Gains | Gross Unrealized Gains | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Corporate securities: | |||||||||||||||||||
Basic industrial | $ | 321,192 | $ | 194,019 | $ | 9,990 | $ | 127,173 | $ | (8,376 | ) | ||||||||
Capital goods | 248,385 | 123,157 | 6,933 | 125,228 | (7,208 | ) | |||||||||||||
Communications | 131,364 | 75,687 | 5,098 | 55,677 | (4,705 | ) | |||||||||||||
Consumer cyclical | 105,882 | 74,866 | 3,627 | 31,016 | (1,782 | ) | |||||||||||||
Consumer non-cyclical | 497,789 | 224,674 | 12,441 | 273,115 | (29,469 | ) | |||||||||||||
Energy | 384,982 | 227,770 | 11,460 | 157,212 | (17,063 | ) | |||||||||||||
Finance | 602,159 | 392,188 | 22,124 | 209,971 | (10,298 | ) | |||||||||||||
Transportation | 96,579 | 61,034 | 3,049 | 35,545 | (2,135 | ) | |||||||||||||
Utilities | 733,604 | 565,250 | 60,399 | 168,354 | (7,483 | ) | |||||||||||||
Other | 157,949 | 98,683 | 3,851 | 59,266 | (2,414 | ) | |||||||||||||
Total corporate securities | 3,279,885 | 2,037,328 | 138,972 | 1,242,557 | (90,933 | ) | |||||||||||||
Mortgage- and asset-backed securities | 2,192,996 | 1,076,388 | 69,820 | 1,116,608 | (31,961 | ) | |||||||||||||
United States Government and agencies | 20,535 | 14,061 | 996 | 6,474 | (134 | ) | |||||||||||||
States and political subdivisions | 1,539,629 | 1,378,005 | 95,921 | 161,624 | (5,913 | ) | |||||||||||||
Total | $ | 7,033,045 | $ | 4,505,782 | $ | 305,709 | $ | 2,527,263 | $ | (128,941 | ) |
Credit Quality of Available-for-Sale Fixed Maturities with Unrealized Losses | ||||||||||||||||||||||||||||||||
December 31, 2018 | June 30, 2019 | |||||||||||||||||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | ||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||
1 | AAA, AA, A | $ | 1,500,626 | 59.4 | % | $ | (45,593 | ) | 35.3 | % | AAA, AA, A | $ | 247,743 | 46.6 | % | $ | (3,643 | ) | 13.8 | % | ||||||||||||
2 | BBB | 903,855 | 35.7 | (61,615 | ) | 47.8 | BBB | 195,842 | 36.9 | (6,745 | ) | 25.6 | ||||||||||||||||||||
Total investment grade | 2,404,481 | 95.1 | (107,208 | ) | 83.1 | Total investment grade | 443,585 | 83.5 | (10,388 | ) | 39.4 | |||||||||||||||||||||
3 | BB | 90,883 | 3.6 | (10,056 | ) | 7.8 | BB | 54,856 | 10.3 | (7,700 | ) | 29.1 | ||||||||||||||||||||
4 | B | 26,212 | 1.1 | (10,887 | ) | 8.5 | B | 30,212 | 5.7 | (8,290 | ) | 31.4 | ||||||||||||||||||||
5 | CCC | 5,679 | 0.2 | (790 | ) | 0.6 | CCC | 2,417 | 0.5 | (18 | ) | 0.1 | ||||||||||||||||||||
6 | In or near default | 8 | — | — | — | In or near default | 7 | — | — | — | ||||||||||||||||||||||
Total below investment grade | 122,782 | 4.9 | (21,733 | ) | 16.9 | Total below investment grade | 87,492 | 16.5 | (16,008 | ) | 60.6 | |||||||||||||||||||||
Total | $ | 2,527,263 | 100.0 | % | $ | (128,941 | ) | 100.0 | % | Total | $ | 531,077 | 100.0 | % | $ | (26,396 | ) | 100.0 | % |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
March 31, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | — | $ | 23,998 | $ | — | $ | (136 | ) | ||||||
Greater than three months to six months | — | 96,397 | — | (1,490 | ) | ||||||||||
Greater than six months to nine months | — | 87,318 | — | (3,043 | ) | ||||||||||
Greater than nine months to twelve months | — | 223,095 | — | (6,835 | ) | ||||||||||
Greater than twelve months | 21,769 | 1,055,047 | (7,406 | ) | (41,556 | ) | |||||||||
Total | $ | 21,769 | $ | 1,485,855 | $ | (7,406 | ) | $ | (53,060 | ) |
December 31, 2018 | ||||||||||||||||
NAIC Designation | Equivalent Rating | Carrying Value of Securities with Gross Unrealized Losses | Percent of Total | Gross Unrealized Losses | Percent of Total | |||||||||||
(Dollars in thousands) | ||||||||||||||||
1 | AAA, AA, A | $ | 1,500,626 | 59.4 | % | $ | (45,593 | ) | 35.3 | % | ||||||
2 | BBB | 903,855 | 35.7 | (61,615 | ) | 47.8 | ||||||||||
Total investment grade | 2,404,481 | 95.1 | (107,208 | ) | 83.1 | |||||||||||
3 | BB | 90,883 | 3.6 | (10,056 | ) | 7.8 | ||||||||||
4 | B | 26,212 | 1.1 | (10,887 | ) | 8.5 | ||||||||||
5 | CCC | 5,679 | 0.2 | (790 | ) | 0.6 | ||||||||||
6 | In or near default | 8 | — | — | — | |||||||||||
Total below investment grade | 122,782 | 4.9 | (21,733 | ) | 16.9 | |||||||||||
Total | $ | 2,527,263 | 100.0 | % | $ | (128,941 | ) | 100.0 | % |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||||||||||||||||
December 31, 2018 | June 30, 2019 | |||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Losses | Amortized Cost | Gross Unrealized Losses | |||||||||||||||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | |||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||
Three months or less | $ | — | $ | 329,067 | $ | — | $ | (7,081 | ) | $ | — | $ | 32,615 | $ | — | $ | (240 | ) | ||||||||||||
Greater than three months to six months | — | 362,426 | — | (10,386 | ) | — | 2,005 | — | (5 | ) | ||||||||||||||||||||
Greater than six months to nine months | — | 514,023 | — | (21,352 | ) | — | 63,916 | — | (930 | ) | ||||||||||||||||||||
Greater than nine months to twelve months | — | 799,994 | — | (43,191 | ) | — | 36,717 | — | (1,501 | ) | ||||||||||||||||||||
Greater than twelve months | 24,809 | 625,885 | (9,547 | ) | (37,384 | ) | 31,759 | 390,461 | (10,539 | ) | (13,181 | ) | ||||||||||||||||||
Total | $ | 24,809 | $ | 2,631,395 | $ | (9,547 | ) | $ | (119,394 | ) | $ | 31,759 | $ | 525,714 | $ | (10,539 | ) | $ | (15,857 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Maturity Date | |||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||
Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Due in one year or less | $ | 498 | $ | (2 | ) | $ | 496 | $ | (4 | ) | |||||
Due after one year through five years | 36,450 | (1,765 | ) | 86,795 | (3,286 | ) | |||||||||
Due after five years through ten years | 146,922 | (6,906 | ) | 299,532 | (14,667 | ) | |||||||||
Due after ten years | 508,051 | (34,371 | ) | 1,023,832 | (79,023 | ) | |||||||||
691,921 | (43,044 | ) | 1,410,655 | (96,980 | ) | ||||||||||
Mortgage- and asset-backed | 755,237 | (17,422 | ) | 1,116,608 | (31,961 | ) | |||||||||
Total | $ | 1,447,158 | $ | (60,466 | ) | $ | 2,527,263 | $ | (128,941 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Length of Time | |||||||||||||||
December 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Losses | ||||||||||||||
Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | Fair Value is Less than 75% of Cost | Fair Value is 75% or Greater than Cost | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Three months or less | $ | — | $ | 329,067 | $ | — | $ | (7,081 | ) | ||||||
Greater than three months to six months | — | 362,426 | — | (10,386 | ) | ||||||||||
Greater than six months to nine months | — | 514,023 | — | (21,352 | ) | ||||||||||
Greater than nine months to twelve months | — | 799,994 | — | (43,191 | ) | ||||||||||
Greater than twelve months | 24,809 | 625,885 | (9,547 | ) | (37,384 | ) | |||||||||
Total | $ | 24,809 | $ | 2,631,395 | $ | (9,547 | ) | $ | (119,394 | ) |
Available-For-Sale Fixed Maturities with Unrealized Losses by Maturity Date | |||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||
Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | Carrying Value of Securities with Gross Unrealized Losses | Gross Unrealized Losses | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Due in one year or less | $ | 1,494 | $ | (5 | ) | $ | 496 | $ | (4 | ) | |||||
Due after one year through five years | 11,673 | (1,646 | ) | 86,795 | (3,286 | ) | |||||||||
Due after five years through ten years | 56,340 | (3,116 | ) | 299,532 | (14,667 | ) | |||||||||
Due after ten years | 226,191 | (17,996 | ) | 1,023,832 | (79,023 | ) | |||||||||
295,698 | (22,763 | ) | 1,410,655 | (96,980 | ) | ||||||||||
Mortgage- and asset-backed | 235,379 | (3,633 | ) | 1,116,608 | (31,961 | ) | |||||||||
Total | $ | 531,077 | $ | (26,396 | ) | $ | 2,527,263 | $ | (128,941 | ) |
Mortgage- and Asset-Backed Securities by Collateral Type | |||||||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||
Amortized Cost | Carrying Value | Percent of Fixed Maturities | Amortized Cost | Carrying Value | Percent of Fixed Maturities | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Government agency | $ | 225,720 | $ | 235,689 | 3.2 | % | $ | 227,545 | $ | 232,658 | 3.3 | % | |||||||||
Prime | 285,112 | 298,106 | 4.1 | 279,856 | 287,073 | 4.1 | |||||||||||||||
Alt-A | 78,077 | 92,161 | 1.3 | 81,668 | 95,396 | 1.4 | |||||||||||||||
Subprime | 143,305 | 153,562 | 2.1 | 143,441 | 152,907 | 2.1 | |||||||||||||||
Commercial mortgage | 896,528 | 916,704 | 12.7 | 873,672 | 878,566 | 12.5 | |||||||||||||||
Non-mortgage | 533,060 | 534,047 | 7.4 | 548,955 | 546,396 | 7.8 | |||||||||||||||
Total | $ | 2,161,802 | $ | 2,230,269 | 30.8 | % | $ | 2,155,137 | $ | 2,192,996 | 31.2 | % |
Mortgage- and Asset-Backed Securities by Collateral Type | |||||||||||||||||||||
June 30, 2019 | December 31, 2018 | ||||||||||||||||||||
Amortized Cost | Carrying Value | Percent of Fixed Maturities | Amortized Cost | Carrying Value | Percent of Fixed Maturities | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Government agency | $ | 224,204 | $ | 241,490 | 3.2 | % | $ | 227,545 | $ | 232,658 | 3.3 | % | |||||||||
Prime | 284,109 | 303,974 | 4.1 | 279,856 | 287,073 | 4.1 | |||||||||||||||
Alt-A | 74,816 | 88,453 | 1.2 | 81,668 | 95,396 | 1.4 | |||||||||||||||
Subprime | 139,211 | 151,323 | 2.0 | 143,441 | 152,907 | 2.1 | |||||||||||||||
Commercial mortgage | 937,041 | 1,003,755 | 13.4 | 873,672 | 878,566 | 12.5 | |||||||||||||||
Non-mortgage | 530,521 | 535,586 | 7.2 | 548,955 | 546,396 | 7.8 | |||||||||||||||
Total | $ | 2,189,902 | $ | 2,324,581 | 31.1 | % | $ | 2,155,137 | $ | 2,192,996 | 31.2 | % |
Residential Mortgage-Backed Securities by NAIC Designation and Origination Year | Residential Mortgage-Backed Securities by NAIC Designation and Origination Year | Residential Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | 2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | $ | 69,191 | $ | 70,450 | $ | 68,796 | $ | 88,297 | $ | 437,016 | $ | 447,422 | $ | 575,003 | $ | 606,169 | $ | 66,502 | $ | 68,643 | $ | 67,575 | $ | 87,369 | $ | 438,512 | $ | 462,976 | $ | 572,589 | $ | 618,988 | ||||||||||||||||||||||||||||||||
2 | — | — | 1,047 | 1,012 | — | — | 1,047 | 1,012 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | — | — | 480 | 472 | — | — | 480 | 472 | — | — | 445 | — | — | 438 | 445 | 438 | ||||||||||||||||||||||||||||||||||||||||||||||||
4 | — | — | 7,910 | 10,760 | — | — | 7,910 | 10,760 | — | — | 7,756 | 9,628 | — | — | 7,756 | 9,628 | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | 302 | 318 | — | — | — | — | 302 | 318 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | 8 | 8 | — | — | — | — | 8 | 8 | 7 | 7 | — | — | — | — | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 69,518 | $ | 70,786 | $ | 78,233 | $ | 100,541 | $ | 437,016 | $ | 447,422 | $ | 584,767 | $ | 618,749 | $ | 66,811 | $ | 68,968 | $ | 75,776 | $ | 96,997 | $ | 438,512 | $ | 463,414 | $ | 581,099 | $ | 629,379 |
December 31, 2018 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 72,281 | $ | 72,921 | $ | 69,478 | $ | 89,128 | $ | 430,982 | $ | 430,881 | $ | 572,741 | $ | 592,930 | ||||||||||||||||
2 | — | — | 2,420 | 2,301 | — | — | 2,420 | 2,301 | ||||||||||||||||||||||||
3 | — | — | 562 | 553 | — | — | 562 | 553 | ||||||||||||||||||||||||
4 | 354 | 359 | 8,048 | 10,709 | — | — | 8,402 | 11,068 | ||||||||||||||||||||||||
6 | 8 | 8 | — | — | — | — | 8 | 8 | ||||||||||||||||||||||||
Total | $ | 72,643 | $ | 73,288 | $ | 80,508 | $ | 102,691 | $ | 430,982 | $ | 430,881 | $ | 584,133 | $ | 606,860 |
Commercial Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 8,297 | $ | 8,919 | $ | 113,288 | $ | 126,780 | $ | 739,238 | $ | 743,760 | $ | 860,823 | $ | 879,459 | ||||||||||||||||
2 | — | — | 35,705 | 37,245 | — | — | 35,705 | 37,245 | ||||||||||||||||||||||||
Total (1) | $ | 8,297 | $ | 8,919 | $ | 148,993 | $ | 164,025 | $ | 739,238 | $ | 743,760 | $ | 896,528 | $ | 916,704 |
Commercial Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
1 | $ | 8,162 | $ | 9,008 | $ | 112,537 | $ | 130,047 | $ | 780,738 | $ | 826,421 | $ | 901,437 | $ | 965,476 | ||||||||||||||||
2 | — | — | 35,604 | 38,279 | — | — | 35,604 | 38,279 | ||||||||||||||||||||||||
Total (1) | $ | 8,162 | $ | 9,008 | $ | 148,141 | $ | 168,326 | $ | 780,738 | $ | 826,421 | $ | 937,041 | $ | 1,003,755 |
Commercial Mortgage-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | 2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | $ | 8,415 | $ | 9,029 | $ | 113,526 | $ | 124,885 | $ | 715,899 | $ | 708,447 | $ | 837,840 | $ | 842,361 | $ | 8,415 | $ | 9,029 | $ | 113,526 | $ | 124,885 | $ | 715,899 | $ | 708,447 | $ | 837,840 | $ | 842,361 | ||||||||||||||||||||||||||||||||
2 | — | — | 35,832 | 36,205 | — | — | 35,832 | 36,205 | — | — | 35,832 | 36,205 | — | — | 35,832 | 36,205 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total (1) | $ | 8,415 | $ | 9,029 | $ | 149,358 | $ | 161,090 | $ | 715,899 | $ | 708,447 | $ | 873,672 | $ | 878,566 | $ | 8,415 | $ | 9,029 | $ | 149,358 | $ | 161,090 | $ | 715,899 | $ | 708,447 | $ | 873,672 | $ | 878,566 |
(1) | The CMBS portfolio included government agency-backed securities with a carrying value of |
Other Asset-Backed Securities by NAIC Designation and Origination Year | Other Asset-Backed Securities by NAIC Designation and Origination Year | Other Asset-Backed Securities by NAIC Designation and Origination Year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | 2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | $ | 8,997 | $ | 8,756 | $ | 141,103 | $ | 154,699 | $ | 397,964 | $ | 396,693 | $ | 548,064 | $ | 560,148 | $ | 8,779 | $ | 8,626 | $ | 138,706 | $ | 153,863 | $ | 398,348 | $ | 399,493 | $ | 545,833 | $ | 561,982 | ||||||||||||||||||||||||||||||||
2 | 1,546 | 1,649 | 1,791 | 1,852 | 123,149 | 124,840 | 126,486 | 128,341 | 1,503 | 1,633 | 1,704 | 1,776 | 117,353 | 120,394 | 120,560 | 123,803 | ||||||||||||||||||||||||||||||||||||||||||||||||
3 | — | — | — | — | 3,131 | 3,509 | 3,131 | 3,509 | — | — | — | — | 3,105 | 3,402 | 3,105 | 3,402 | ||||||||||||||||||||||||||||||||||||||||||||||||
4 | 176 | 168 | — | — | — | — | 176 | 168 | 172 | 168 | — | — | — | — | 172 | 168 | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | — | — | — | — | 2,650 | 2,650 | 2,650 | 2,650 | — | — | — | — | 2,092 | 2,092 | 2,092 | 2,092 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 10,719 | $ | 10,573 | $ | 142,894 | $ | 156,551 | $ | 526,894 | $ | 527,692 | $ | 680,507 | $ | 694,816 | $ | 10,454 | $ | 10,427 | $ | 140,410 | $ | 155,639 | $ | 520,898 | $ | 525,381 | $ | 671,762 | $ | 691,447 |
Other Asset-Backed Securities by NAIC Designation and Origination Year | Other Asset-Backed Securities by NAIC Designation and Origination Year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2004 & Prior | 2005 to 2008 | 2009 & After | Total | 2004 & Prior | 2005 to 2008 | 2009 & After | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NAIC Designation | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | Amortized Cost | Carrying Value | ||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | $ | 9,314 | $ | 9,038 | $ | 141,728 | $ | 154,747 | $ | 415,228 | $ | 412,078 | $ | 566,270 | $ | 575,863 | $ | 9,314 | $ | 9,038 | $ | 141,728 | $ | 154,747 | $ | 415,228 | $ | 412,078 | $ | 566,270 | $ | 575,863 | ||||||||||||||||||||||||||||||||
2 | 1,586 | 1,693 | 1,890 | 1,943 | 121,796 | 122,300 | 125,272 | 125,936 | 1,586 | 1,693 | 1,890 | 1,943 | 121,796 | 122,300 | 125,272 | 125,936 | ||||||||||||||||||||||||||||||||||||||||||||||||
3 | — | — | 313 | 303 | 1,697 | 1,697 | 2,010 | 2,000 | — | — | 313 | 303 | 1,697 | 1,697 | 2,010 | 2,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
4 | 179 | 170 | — | — | — | — | 179 | 170 | 179 | 170 | — | — | — | — | 179 | 170 | ||||||||||||||||||||||||||||||||||||||||||||||||
5 | — | — | — | — | 3,601 | 3,601 | 3,601 | 3,601 | — | — | — | — | 3,601 | 3,601 | 3,601 | 3,601 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,079 | $ | 10,901 | $ | 143,931 | $ | 156,993 | $ | 542,322 | $ | 539,676 | $ | 697,332 | $ | 707,570 | $ | 11,079 | $ | 10,901 | $ | 143,931 | $ | 156,993 | $ | 542,322 | $ | 539,676 | $ | 697,332 | $ | 707,570 |
March 31, 2019 | December 31, 2018 | Percentage change | June 30, 2019 | December 31, 2018 | Percentage change | |||||||||||
Selected other assets: | ||||||||||||||||
Cash and cash equivalents | 6,057 | 19,035 | (68.2 | )% | 13,854 | 19,035 | (27.2 | )% | ||||||||
Reinsurance recoverable | 103,825 | 102,386 | 1.4 | % | 102,898 | 102,386 | 0.5 | % | ||||||||
Deferred acquisition costs | 373,711 | 418,802 | (10.8 | )% | 314,301 | 418,802 | (25.0 | )% | ||||||||
Other assets | 169,756 | 163,518 | 3.8 | % | 179,408 | 163,518 | 9.7 | % | ||||||||
Assets held in separate accounts | 614,121 | 561,281 | 9.4 | % | 625,177 | 561,281 | 11.4 | % | ||||||||
Selected other liabilities: | ||||||||||||||||
Future policy benefits | 7,241,831 | 7,205,471 | 0.5 | % | 7,298,402 | 7,205,471 | 1.3 | % | ||||||||
Other policyholder funds | 612,733 | 615,177 | (0.4 | )% | 601,038 | 615,177 | (2.3 | )% | ||||||||
Deferred income taxes | 103,300 | 75,449 | 36.9 | % | 134,702 | 75,449 | 78.5 | % | ||||||||
Other liabilities | 110,709 | 93,532 | 18.4 | % | 102,414 | 93,532 | 9.5 | % | ||||||||
Liabilities held in separate accounts | 614,121 | 561,281 | 9.4 | % | 625,177 | 561,281 | 11.4 | % |
June 30, 2019 | December 31, 2018 | Percentage change | ||||||||
(dollars in thousands, except per share data) | ||||||||||
Total FBL Financial Group, Inc. stockholders’ equity | $ | 1,397,462 | $ | 1,184,139 | 18.0 | % | ||||
Common stockholders’ equity | 1,394,462 | 1,181,139 | 18.1 | % | ||||||
Book value per share | $ | 56.55 | $ | 47.78 | 18.4 | % | ||||
Less: Per share impact of accumulated other comprehensive income | 12.28 | 3.69 | 232.8 | % | ||||||
Book value per share, excluding accumulated other comprehensive income (1) | $ | 44.27 | $ | 44.09 | 0.4 | % |
March 31, 2019 | December 31, 2018 | Percentage change | ||||||||
(dollars in thousands, except per share data) | ||||||||||
Total FBL Financial Group, Inc. stockholders’ equity | $ | 1,263,400 | $ | 1,184,139 | 6.7 | % | ||||
Common stockholders’ equity | 1,260,400 | 1,181,139 | 6.7 | % | ||||||
Book value per share | $ | 51.13 | $ | 47.78 | 7.0 | % | ||||
Less: Per share impact of accumulated other comprehensive income | 7.68 | 3.69 | 108.1 | % | ||||||
Book value per share, excluding accumulated other comprehensive income | $ | 43.45 | $ | 44.09 | (1.5 | )% |
(1) | Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Since accumulated other comprehensive income fluctuates from quarter to quarter due to unrealized changes in the fair value of investments caused principally by changes in market interest rates, we believe this non-GAAP financial measure provides useful supplemental information. |
Period | (a) Total Number of Shares (or Units) Purchased | (b) Average Price Paid per Share (or Unit) | (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||||||
January 1, 2019 through January 31, 2019 | 57,726 | $ | 68.81 | 57,726 | $36,927,457 | ||||||
February 1, 2019 through February 28, 2019 | 8,749 | 69.26 | 8,749 | $36,321,488 | |||||||
March 1, 2019 through March 31, 2019 | — | — | — | $36,321,488 | |||||||
Total | 66,475 | $ | 68.87 |
31.1+ | |
31.2+ | |
32+ | |
101+ | Interactive Data Files formatted in |
+ | Filed |
FBL FINANCIAL GROUP, INC. | ||
By | /s/ James P. Brannen | |
James P. Brannen | ||
Chief Executive Officer (Principal Executive Officer) | ||
By | /s/ Donald J. Seibel | |
Donald J. Seibel | ||
Chief Financial Officer and Treasurer (Principal Financial Officer) | ||
By | /s/ Anthony J. Aldridge | |
Anthony J. Aldridge | ||
Chief Accounting Officer (Principal Accounting Officer) |