Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | CITIZENS, INC. | |
Entity Incorporation, State or Country Code | CO | |
Entity Tax Identification Number | 84-0755371 | |
Entity Address, Address Line One | 14231 Tandem Blvd, 2nd Floor | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78728 | |
City Area Code | 512 | |
Local Phone Number | 837-7100 | |
Entity Central Index Key | 0000024090 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,364,993 | |
Common Stock Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,001,714 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities available-for-sale, at fair value (cost: $1,278,293 and $1,223,747 in 2019 and 2018 respectively) | $ 1,369,648 | $ 1,231,039 |
Equity security | 15,845 | 15,068 |
Mortgage loans on real estate | 180 | 186 |
Policy loans | 81,964 | 80,825 |
Real estate held for investment (less $1,284 accumulated depreciation in 2018) | 0 | 5,718 |
Real estate held-for-sale (less $1,325 and $4,411 accumulated depreciation in 2019 and 2018, respectively) | 2,571 | 1,483 |
Other long-term investments | 22 | 22 |
Short-term investments | 2,453 | 7,865 |
Total investments | 1,472,683 | 1,342,206 |
Cash and cash equivalents | 47,147 | 45,492 |
Accrued investment income | 17,648 | 18,467 |
Reinsurance recoverable | 3,596 | 3,664 |
Deferred policy acquisition costs | 150,289 | 155,747 |
Cost of customer relationships acquired | 13,741 | 15,225 |
Goodwill | 12,624 | 12,624 |
Other intangible assets | 953 | 956 |
Property and equipment, net | 6,639 | 5,943 |
Due premiums, net (less $1,640 and $1,990 allowance for doubtful accounts in 2019 and 2018, respectively) | 10,737 | 13,325 |
Prepaid expenses | 983 | 284 |
Other assets | 1,319 | 1,628 |
Total assets | 1,738,359 | 1,615,561 |
Future policy benefits reserves: | ||
Life insurance | 1,206,042 | 1,179,946 |
Annuities | 76,427 | 76,377 |
Accident and health | 997 | 944 |
Dividend accumulations | 28,400 | 26,250 |
Premiums paid in advance | 42,591 | 48,553 |
Policy claims payable | 8,095 | 7,614 |
Other policyholders' funds | 16,400 | 10,760 |
Total policy liabilities | 1,378,952 | 1,350,444 |
Commissions payable | 2,096 | 1,901 |
Current federal income tax payable | 47,861 | 41,281 |
Deferred federal income tax liability | 12,081 | 5,709 |
Payable for securities in process of settlement | 6,030 | 0 |
Other liabilities | 29,997 | 28,493 |
Total liabilities | 1,477,017 | 1,427,828 |
Commitments and contingencies (Note 7) | ||
Stockholders' equity: | ||
Accumulated deficit | (75,920) | (69,599) |
Accumulated other comprehensive income: | ||
Net unrealized gains on securities, net of tax | 83,743 | 5,366 |
Treasury stock, at cost | (11,011) | (11,011) |
Total stockholders' equity | 261,342 | 187,733 |
Total liabilities and stockholders' equity | 1,738,359 | 1,615,561 |
Common Stock Class A [Member] | ||
Stockholders' equity: | ||
Common stock | 261,346 | 259,793 |
Common Stock Class B [Member] | ||
Stockholders' equity: | ||
Common stock | $ 3,184 | $ 3,184 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities available-for-sale, cost | $ 1,278,293 | $ 1,223,747 |
Real estate held for investment, accumulated depreciation | 0 | 1,284 |
Real estate held for sale, accumulated depreciation | 1,325 | 4,411 |
Due premiums, allowance for doubtful accounts | $ 1,640 | $ 1,990 |
Common Stock Class A [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 52,364,993 | 52,215,852 |
Common stock, shares outstanding (in shares) | 52,364,993 | 52,215,852 |
Common stock, shares in treasury (in shares) | 3,135,738 | 3,135,738 |
Common Stock Class B [Member] | ||
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, shares issued (in shares) | 1,001,714 | 1,001,714 |
Common stock, shares outstanding (in shares) | 1,001,714 | 1,001,714 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Premiums: | ||||
Life insurance | $ 44,502 | $ 45,898 | $ 127,795 | $ 133,058 |
Accident and health insurance | 350 | 323 | 1,018 | 915 |
Property insurance | 1,157 | 1,208 | 3,464 | 3,615 |
Net investment income | 15,039 | 13,587 | 44,150 | 41,169 |
Realized investment gains (losses), net | 72 | (498) | 3,164 | (1,251) |
Other income | 347 | 643 | 1,148 | 930 |
Total revenue | 61,467 | 61,161 | 180,739 | 178,436 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 28,751 | 25,076 | 78,808 | 66,844 |
Increase in future policy benefit reserves | 6,409 | 1,653 | 28,180 | 32,816 |
Policyholders' dividends | 1,560 | 1,595 | 4,165 | 4,516 |
Total insurance benefits paid or provided | 36,720 | 28,324 | 111,153 | 104,176 |
Commissions | 8,879 | 8,656 | 25,147 | 26,284 |
Other general expenses | 11,530 | 12,402 | 37,611 | 33,375 |
Capitalization of deferred policy acquisition costs | (5,984) | (5,561) | (16,224) | (17,164) |
Amortization of deferred policy acquisition costs | 7,835 | 11,412 | 21,043 | 26,218 |
Amortization of cost of customer relationships acquired | 355 | 366 | 1,192 | 1,517 |
Total benefits and expenses | 59,335 | 55,599 | 179,922 | 174,406 |
Income (loss) before federal income tax | 2,132 | 5,562 | 817 | 4,030 |
Federal income tax expense (benefit) | 86 | 12,671 | 7,138 | 13,660 |
Net income (loss) | 2,046 | (7,109) | (6,321) | (9,630) |
Unrealized gains (losses) on available-for-sale debt securities: | ||||
Unrealized holding gains (losses) arising during period | 24,201 | (2,236) | 84,222 | (32,663) |
Reclassification adjustments for losses (gains) included in net income | (53) | 656 | (30) | 1,002 |
Unrealized gains (losses) on available-for-sale debt securities, net | 24,148 | (1,580) | 84,192 | (31,661) |
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale securities | 1,627 | 454 | 5,815 | (5,852) |
Other comprehensive income (loss) | 22,521 | (2,034) | 78,377 | (25,809) |
Comprehensive income (loss) | $ 24,567 | $ (9,143) | $ 72,056 | $ (35,439) |
Common Stock Class A [Member] | ||||
Earnings Per Share [Abstract] | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.04 | $ (0.14) | $ (0.13) | $ (0.19) |
Common Stock Class B [Member] | ||||
Earnings Per Share [Abstract] | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.02 | $ (0.07) | $ (0.06) | $ (0.10) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholder's Equity Statement - USD ($) $ in Thousands | Total | Accumulated deficit [Member] | Accumulated other comprehensive income [Member] | Treasury stock [Member] | Common Stock Class A [Member]Common stock [Member] | Common Stock Class B [Member]Common stock [Member] |
Balance at Dec. 31, 2017 | $ 223,513 | $ (54,375) | $ 26,332 | $ (11,011) | $ 259,383 | $ 3,184 |
Net income (loss) | 37 | 37 | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | (14,104) | 0 | (14,104) | 0 | 0 | 0 |
Comprehensive income (loss) | (14,067) | 37 | (14,104) | 0 | 0 | 0 |
Balance at Mar. 31, 2018 | 209,446 | (58,500) | 16,390 | (11,011) | 259,383 | 3,184 |
Balance at Dec. 31, 2017 | 223,513 | (54,375) | 26,332 | (11,011) | 259,383 | 3,184 |
Stock-based compensation | 213 | 0 | 0 | 0 | 213 | 0 |
Balance at Jun. 30, 2018 | 197,430 | (61,058) | 6,719 | (11,011) | 259,596 | 3,184 |
Balance at Dec. 31, 2017 | 223,513 | (54,375) | 26,332 | (11,011) | 259,383 | 3,184 |
Net income (loss) | (9,630) | (9,630) | ||||
Comprehensive income (loss) | (35,439) | |||||
Balance at Sep. 30, 2018 | 188,384 | (68,167) | 4,685 | (11,011) | 259,693 | 3,184 |
Balance at Mar. 31, 2018 | 209,446 | (58,500) | 16,390 | (11,011) | 259,383 | 3,184 |
Net income (loss) | (2,558) | (2,558) | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | (9,671) | 0 | (9,671) | 0 | 0 | 0 |
Comprehensive income (loss) | (12,229) | (2,558) | (9,671) | 0 | 0 | 0 |
Balance at Jun. 30, 2018 | 197,430 | (61,058) | 6,719 | (11,011) | 259,596 | 3,184 |
Balance at January 1, 2018 | 197,430 | |||||
Net income (loss) | (7,109) | (7,109) | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | (2,854) | 0 | (2,854) | 0 | 0 | 0 |
Other comprehensive income (loss), transfers from held-to-maturity to available-for-sale securities, net of tax | 820 | 0 | 820 | 0 | 0 | 0 |
Comprehensive income (loss) | (9,143) | (7,109) | (2,034) | 0 | 0 | 0 |
Stock-based compensation | 97 | 0 | 0 | 0 | 97 | 0 |
Balance at Sep. 30, 2018 | 188,384 | (68,167) | 4,685 | (11,011) | 259,693 | 3,184 |
Balance at Dec. 31, 2018 | 187,733 | (69,599) | 5,366 | (11,011) | 259,793 | 3,184 |
Net income (loss) | (3,802) | (3,802) | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | 26,880 | 0 | 26,880 | 0 | 0 | 0 |
Comprehensive income (loss) | 23,078 | (3,802) | 26,880 | 0 | 0 | 0 |
Stock-based compensation | 1,083 | 0 | 0 | 0 | 1,083 | 0 |
Balance at Mar. 31, 2019 | 211,894 | (73,401) | 32,246 | (11,011) | 260,876 | 3,184 |
Balance at Dec. 31, 2018 | 187,733 | (69,599) | 5,366 | (11,011) | 259,793 | 3,184 |
Net income (loss) | (6,321) | (6,321) | ||||
Comprehensive income (loss) | 72,056 | |||||
Balance at Sep. 30, 2019 | 261,342 | (75,920) | 83,743 | (11,011) | 261,346 | 3,184 |
Balance at Mar. 31, 2019 | 211,894 | (73,401) | 32,246 | (11,011) | 260,876 | 3,184 |
Net income (loss) | (4,565) | (4,565) | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | 28,976 | 0 | 28,976 | 0 | 0 | 0 |
Comprehensive income (loss) | 24,411 | (4,565) | 28,976 | 0 | 0 | 0 |
Stock-based compensation | 127 | 0 | 0 | 0 | 127 | 0 |
Balance at Jun. 30, 2019 | 236,432 | (77,966) | 61,222 | (11,011) | 261,003 | 3,184 |
Net income (loss) | 2,046 | 2,046 | 0 | 0 | 0 | 0 |
Unrealized investment gains (losses), net | 22,521 | 0 | 22,521 | 0 | 0 | 0 |
Comprehensive income (loss) | 24,567 | 2,046 | 22,521 | 0 | 0 | 0 |
Stock-based compensation | 343 | 0 | 0 | 0 | 343 | 0 |
Balance at Sep. 30, 2019 | $ 261,342 | $ (75,920) | $ 83,743 | $ (11,011) | $ 261,346 | $ 3,184 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (6,321) | $ (9,630) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Realized (gains) losses on sale of investments and other assets | (3,164) | 1,251 |
Net deferred policy acquisition costs | 4,819 | 9,054 |
Amortization of cost of customer relationships acquired | 1,192 | 1,517 |
Depreciation | 1,269 | 921 |
Amortization of premiums and discounts on investments | 10,422 | 12,781 |
Stock-based compensation | 1,930 | 310 |
Deferred federal income tax benefit | 560 | 59,329 |
Change in: | ||
Accrued investment income | 819 | 673 |
Reinsurance recoverable | 68 | 89 |
Due premiums | 2,588 | 427 |
Future policy benefit reserves | 27,994 | 33,425 |
Other policyholders' liabilities | 2,309 | 1,413 |
Federal income tax receivable | 6,580 | (45,678) |
Commissions payable and other liabilities | 1,699 | 558 |
Other, net | (1,851) | (1,205) |
Net cash provided by operating activities | 50,913 | 65,235 |
Cash flows from investing activities: | ||
Purchase of fixed maturities, available-for-sale | (210,445) | (109,642) |
Sale of fixed maturities, available-for-sale | 39,708 | 1,084 |
Maturities and calls of fixed maturities, available-for-sale | 111,757 | 51,190 |
Maturities and calls of fixed maturities, held-to-maturity | 0 | 20,699 |
Purchase of equity securities | 0 | (9) |
Principal payments on mortgage loans | 6 | 7 |
Increase in policy loans, net | (1,141) | (5,277) |
Sale of other long-term investments and real estate | 6,981 | 14 |
Sale of property and equipment | 15 | 0 |
Purchase of property and equipment | (509) | (437) |
Maturity of short-term investments | 7,940 | 0 |
Purchase of short-term investments | (2,456) | 0 |
Net cash used in investing activities | (48,144) | (42,371) |
Cash flows from financing activities: | ||
Annuity deposits | 4,948 | 5,222 |
Annuity withdrawals | (5,685) | (5,397) |
Other | (377) | 0 |
Net cash provided by financing activities | (1,114) | (175) |
Net increase (decrease) in cash and cash equivalents | 1,655 | 22,689 |
Cash and cash equivalents at beginning of year | 45,492 | 46,064 |
Cash and cash equivalents at end of period | $ 47,147 | $ 68,753 |
Supplemental Disclosure of Nonc
Supplemental Disclosure of Noncash Investing and Financing Activities Statement - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Disclosure of Noncash Investing and Financing Activities [Abstract] | ||
Noncash or Part Noncash Acquisition, Investments Acquired | $ 12,200,000 | $ 2,500,000 |
Noncash or Part Noncash Acquisition, Net Unsettled Security Trades | $ 6,000,000 | $ 0 |
Financial Statements
Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | FINANCIAL STATEMENTS BASIS OF PRESENTATION AND CONSOLIDATION The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), Citizens National Life Insurance Company ("CNLIC"), CICA Life Ltd. ("CICA Ltd."), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC") and Computing Technology, Inc. ("CTI"). All significant inter-company accounts and interactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as the "Company", "we", "us" or "our". The consolidated statements of financial position as of September 30, 2019 , the consolidated statements of comprehensive income and stockholders' equity for the three and nine months ended September 30, 2019 and September 30, 2018 and the consolidated statements of cash flows for the nine months ended September 30, 2019 and September 30, 2018 have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2019 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries - CICA, CNLIC, CICA Ltd., SPLIC and MGLIC. CICA and CNLIC issued ordinary whole-life policies, credit life and disability, and accident and health related policies, throughout the Midwest and southern U.S. until they ceased most domestic sales beginning January 1, 2017. CICA Ltd. primarily issues endowment and ordinary whole-life policies to non-U.S. residents. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi. SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. MGLIC provides industrial life policies through independent funeral homes in Mississippi. CTI provides data processing systems and services to the Company. We converted to a new actuarial valuation software solution impacting both the Home Service Insurance and Life Insurance segments, providing enhanced modeling capabilities for the ordinary whole life policies of SPLIC as of July 1, 2019 and the ordinary whole life and endowment policies of CICA and CICA Ltd. as of July 1, 2018. The total impact of these system conversions reflected in the accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2019 and 2018 are summarized in the table below. (In thousands) September 30, 2019 September 30, 2018 Increase (Decrease) Consolidated Statements of Financial Position Deferred policy acquisition costs $ (1,396 ) (4,339 ) Future policy benefit reserves: Life insurance (2,299 ) (10,197 ) Consolidated Statement of Comprehensive Income Decrease in future policy benefit reserves (2,299 ) (10,197 ) Amortization of deferred policy acquisition costs 1,396 4,339 Income before federal income tax 903 5,858 Federal income tax expense 190 1,230 Net income $ 713 4,628 USE OF ESTIMATES The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those used in the evaluation of other-than-temporary impairments on debt and equity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements. RESTATEMENT As disclosed in Note 14. Quarterly Financial Information (Unaudited) in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018, the Company has restated its unaudited consolidated financial information as of and for the three and nine month periods ended September 30, 2018 to correct an immaterial error related to the accounting for the income tax effects of the novation of international insurance policies to our Bermuda-based subsidiary on July 1, 2018 . Federal income tax expense and net income (loss) have been restated herein to properly reflect the reduction in federal income tax expense as compared to originally reported amounts. Basic & diluted earnings (losses) per share of Class A common stock and Class B common stock were also restated. The table below reflects the line items adjusted as a result of the restatement as of September 30, 2018 and for the three and nine months ended September 30, 2018. (In thousands, except per share amounts) As Previously Reported Adjustments As Restated For the Three Months Ended September 30, 2018 Consolidated Statement of Comprehensive Income Federal income expense (benefit) $ 20,316 (7,645 ) 12,671 Net income (loss) (14,754 ) 7,645 (7,109 ) Basic and diluted earnings (losses) per share of Class A common stock (0.30 ) 0.16 (0.14 ) Basic and diluted earnings (losses) per share of Class B common stock (0.14 ) 0.07 (0.07 ) Total comprehensive income (loss) (16,788 ) 7,645 (9,143 ) For the Nine Months Ended September 30, 2018 Consolidated Statement of Comprehensive Income Federal income expense (benefit) $ 21,305 (7,645 ) 13,660 Net income (loss) (17,275 ) 7,645 (9,630 ) Basic and diluted earnings (losses) per share of Class A common stock (0.35 ) 0.16 (0.19 ) Basic and diluted earnings (losses) per share of Class B common stock (0.17 ) 0.07 (0.10 ) Total comprehensive income (loss) (43,084 ) 7,645 (35,439 ) As of September 30, 2018 Consolidated Statements of Stockholders' Equity Balance at June 30, 2018 $ 197,430 — 197,430 Net income (loss) (14,754 ) 7,645 (7,109 ) Total comprehensive income (loss) (16,788 ) 7,645 (9,143 ) Accumulated deficit (75,812 ) 7,645 (68,167 ) Balance at September 30, 2018 180,739 7,645 188,384 For the Nine Months Ended September 30, 2018 Consolidated Statements of Cash Flows Net income (loss) $ (17,275 ) 7,645 (9,630 ) Deferred federal income tax (expense) benefit 67,040 (7,711 ) 59,329 Federal income tax payable (45,744 ) 66 (45,678 ) Net cash provided by operating activities 65,235 — 65,235 SIGNIFICANT ACCOUNTING POLICIES For a description of our significant accounting policies, see Note 1. Summary of Significant Accounting Policies in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 , which should be read in conjunction with these accompanying consolidated financial statements. |
Accounting Pronouncements
Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | ACCOUNTING PRONOUNCEMENTS ACCOUNTING STANDARDS RECENTLY ADOPTED In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . The ASU requires organizations that lease assets, referred to as "lessees," to recognize on the consolidated statement of financial position the rights and obligations created by those leases. The ASU also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The ASU on leases became effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has several lease agreements, such as district office locations related to our Home Service Insurance segment. The Company adopted this standard effective January 1, 2019 and recognizes these lease agreements on the consolidated statements of financial position as a right-of-use asset and a corresponding lease liability. See Note 9. Leases for further discussion. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Company has a large portfolio of callable debt securities purchased at a premium. As such, the Company had already been amortizing the premium to the earliest call date (yield to worst), thus adoption of this guidance as of January 1, 2019 did not have a material impact on our consolidated financial statements. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. We adopted the provisions of this ASU as of January 1, 2019. This guidance did not have a material impact on our consolidated financial statements. ACCOUNTING STANDARDS NOT YET ADOPTED In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) , with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to current U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current U.S. GAAP prohibits reflecting those improvements in current-period earnings. For public business entities, the amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has evaluated the impact this guidance will have on our consolidated financial statements and expects the impact to be immaterial. In August 2018, the FASB issued ASU No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts: • Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income; • Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income; • Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk; • Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and • Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions. For calendar-year public companies, the changes will be effective on January 1, 2022. The Company is evaluating the impact this guidance will have on our consolidated financial statements. This new guidance is expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; however, early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As this ASU only revises disclosure requirements, it is not expected to have a material impact on the Company’s consolidated financial statements. In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. We are evaluating the impact of this guidance on our limited cloud computing arrangements and our consolidated financial statements. No other new accounting pronouncement issued or effective during the year had, or is expected to have, a material impact on our consolidated financial statements. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information, Operating Income (Loss) [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and Home Service Insurance portions of the Company constitute separate businesses. CICA, CICA Ltd. and CNLIC constitute the Life Insurance segment, and SPLIC, SPFIC and MGLIC constitute the Home Service Insurance segment. In addition to the Life Insurance and Home Service Insurance business, the Company also operates other non-insurance ("Other Non-Insurance Enterprises") portions of the Company, which primarily include the Company's IT and Corporate-support functions, and are included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company. The accounting policies of the reportable segments and Other Non-Insurance Enterprises are presented in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial statements. The Company evaluates profit and loss performance based on U.S. GAAP income before federal income taxes for its two reportable segments. The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Three Months Ended September 30, 2019 (In thousands) Revenues: Premiums $ 34,385 11,624 — 46,009 Net investment income 11,340 3,309 390 15,039 Realized investment gains, net 61 3 8 72 Other income (loss) 349 (2 ) — 347 Total revenue 46,135 14,934 398 61,467 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 22,533 6,218 — 28,751 Increase in future policy benefit reserves 7,667 (1,258 ) — 6,409 Policyholders' dividends 1,551 9 — 1,560 Total insurance benefits paid or provided 31,751 4,969 — 36,720 Commissions 5,386 3,493 — 8,879 Other general expenses 5,358 4,669 1,503 11,530 Capitalization of deferred policy acquisition costs (4,743 ) (1,241 ) — (5,984 ) Amortization of deferred policy acquisition costs 5,960 1,875 — 7,835 Amortization of cost of customer relationships acquired 113 242 — 355 Total benefits and expenses 43,825 14,007 1,503 59,335 Income (loss) before income tax expense $ 2,310 927 (1,105 ) 2,132 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Nine Months Ended September 30, 2019 (In thousands) Revenues: Premiums $ 97,439 34,838 — 132,277 Net investment income 33,121 9,720 1,309 44,150 Realized investment gains (losses), net 5,586 639 (3,061 ) 3,164 Other income 1,146 — 2 1,148 Total revenue 137,292 45,197 (1,750 ) 180,739 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 61,011 17,797 — 78,808 Increase in future policy benefit reserves 27,499 681 — 28,180 Policyholders' dividends 4,136 29 — 4,165 Total insurance benefits paid or provided 92,646 18,507 — 111,153 Commissions 14,435 10,712 — 25,147 Other general expenses 18,021 15,071 4,519 37,611 Capitalization of deferred policy acquisition costs (12,465 ) (3,759 ) — (16,224 ) Amortization of deferred policy acquisition costs 17,454 3,589 — 21,043 Amortization of cost of customer relationships acquired 373 819 — 1,192 Total benefits and expenses 130,464 44,939 4,519 179,922 Income (loss) before federal income tax expense $ 6,828 258 (6,269 ) 817 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Three Months Ended September 30, 2018 (In thousands) Revenues: Premiums $ 35,784 11,645 — 47,429 Net investment income 10,062 3,276 249 13,587 Realized investment gains (losses), net (475 ) (32 ) 9 (498 ) Other income 643 — — 643 Total revenue 46,014 14,889 258 61,161 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 19,212 5,864 — 25,076 Increase in future policy benefit reserves 544 1,109 — 1,653 Policyholders' dividends 1,581 14 — 1,595 Total insurance benefits paid or provided 21,337 6,987 — 28,324 Commissions 4,712 3,944 — 8,656 Other general expenses 6,583 4,502 1,317 12,402 Capitalization of deferred policy acquisition costs (3,873 ) (1,688 ) — (5,561 ) Amortization of deferred policy acquisition costs 10,132 1,280 — 11,412 Amortization of cost of customer relationships acquired 150 216 — 366 Total benefits and expenses 39,041 15,241 1,317 55,599 Income (loss) before income tax expense $ 6,973 (352 ) (1,059 ) 5,562 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Nine Months Ended September 30, 2018 (In thousands) Revenues: Premiums $ 102,537 35,051 — 137,588 Net investment income 30,331 9,894 944 41,169 Realized investment losses, net (684 ) (535 ) (32 ) (1,251 ) Other income (loss) 931 (1 ) — 930 Total revenue 133,115 44,409 912 178,436 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 49,522 17,322 — 66,844 Increase in future policy benefit reserves 29,509 3,307 — 32,816 Policyholders' dividends 4,483 33 — 4,516 Total insurance benefits paid or provided 83,514 20,662 — 104,176 Commissions 14,717 11,567 — 26,284 Other general expenses 12,607 15,438 5,330 33,375 Capitalization of deferred policy acquisition costs (12,663 ) (4,501 ) — (17,164 ) Amortization of deferred policy acquisition costs 22,912 3,306 — 26,218 Amortization of cost of customer relationships acquired 434 1,083 — 1,517 Total benefits and expenses 121,521 47,555 5,330 174,406 Income (loss) before federal income tax expense $ 11,594 (3,146 ) (4,418 ) 4,030 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following tables set forth the computation of basic and diluted earnings per share. Three Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ 2,046 (7,109 ) Net income (loss) allocated to Class A common stock $ 2,026 (7,036 ) Net income (loss) allocated to Class B common stock 20 (73 ) Net income (loss) $ 2,046 (7,109 ) Denominator: Weighted average shares of Class A outstanding - basic 49,229 49,080 Weighted average shares of Class A outstanding - diluted 49,327 49,127 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ 0.04 (0.14 ) Basic and diluted earnings (loss) per share of Class B common stock 0.02 (0.07 ) * See Note 1 in the Notes to Consolidated Financial Statements Nine Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net loss $ (6,321 ) (9,630 ) Net loss allocated to Class A common stock $ (6,257 ) (9,533 ) Net loss allocated to Class B common stock (64 ) (97 ) Net loss $ (6,321 ) (9,630 ) Denominator: Weighted average shares of Class A outstanding - basic 49,229 49,080 Weighted average shares of Class A outstanding - diluted 49,327 49,127 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted loss per share of Class A common stock $ (0.13 ) (0.19 ) Basic and diluted loss per share of Class B common stock (0.06 ) (0.10 ) * See Note 1 in the Notes to Consolidated Financial Statements |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | INVESTMENTS The Company invests primarily in fixed maturity securities, which totaled 90.1% of total cash, cash equivalents and investments at September 30, 2019 . The Company's cash, cash equivalents and investments are listed below. Carrying Value (In thousands, except for %) September 30, 2019 December 31, 2018 Amount % Amount % Fixed maturity securities $ 1,369,648 90.1 % $ 1,231,039 88.7 % Equity securities 15,845 1.0 % 15,068 1.1 % Mortgage loans 180 — % 186 — % Policy loans 81,964 5.4 % 80,825 5.8 % Real estate and other long-term investments 2,593 0.2 % 7,223 0.5 % Short-term investments 2,453 0.2 % 7,865 0.6 % Cash and cash equivalents 47,147 3.1 % 45,492 3.3 % Total cash, cash equivalents and investments $ 1,519,830 100.0 % $ 1,387,698 100.0 % The following tables represent the cost or amortized cost, gross unrealized gains and losses and fair value of fixed maturities as of the dates indicated. Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (In thousands) Fixed maturities: Available-for-sale: U.S. Treasury securities $ 9,729 1,775 — 11,504 U.S. Government-sponsored enterprises 3,522 1,124 — 4,646 States and political subdivisions 567,551 29,392 125 596,818 Corporate 560,701 45,148 1,741 604,108 Commercial mortgage-backed 1,107 — — 1,107 Residential mortgage-backed 118,101 15,787 23 133,865 Asset-backed 17,480 11 11 17,480 Foreign governments 102 18 — 120 Total fixed maturities $ 1,278,293 93,255 1,900 1,369,648 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,864 1,410 — 11,274 U.S. Government-sponsored enterprises 3,540 740 — 4,280 States and political subdivisions 713,991 7,614 1,490 720,115 Corporate 384,817 6,725 9,746 381,796 Commercial mortgage-backed 39,694 386 66 40,014 Residential mortgage-backed 66,960 1,726 2 68,684 Asset-backed 4,764 1 8 4,757 Foreign governments 117 2 — 119 Total fixed maturities $ 1,223,747 18,604 11,312 1,231,039 Most of the Company's equity securities are diversified stock and bond mutual funds. Fair Value (In thousands) September 30, 2019 December 31, 2018 Equity securities: Stock mutual funds $ 3,166 2,906 Bond mutual funds 12,242 11,774 Common stock 127 94 Non-redeemable preferred stock 310 294 Total equity securities $ 15,845 15,068 VALUATION OF INVESTMENTS Available-for-sale securities are reported in the consolidated financial statements at fair value. Equity securities are measured at fair value with the change in fair value recorded through net income. The Company recognized net realized gains of $18 thousand and $0.8 million on equity securities held for the three and nine months ended September 30, 2019 and gains of $0.2 million and losses of $0.2 million for the same periods ended September 30, 2018 , respectively. An impairment loss of $3.1 million was recorded during the second quarter of 2019 related to our Citizens Academy training facility property located near Austin, Texas. It was determined during the second quarter that the property met the held-for-sale criteria. As a result, this investment was reclassified from real estate held for investment to real estate held-for-sale. This resulted in an impairment loss of $3.1 million as the carrying amount of the property was written down to the net realizable value. This investment is considered a Level 3 asset in the fair value hierarchy. The Company monitors all debt securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews. The assessment of whether other-than-temporary impairments ("OTTI") have occurred is based on a case-by-case evaluation of underlying reasons for the decline in fair value. The Company determines OTTI by reviewing relevant evidence related to the specific security issuer as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost. When an OTTI has occurred, the amount of the OTTI recognized in earnings depends on whether the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely that the Company will be required to sell the security before recovery of its amortized cost basis, the OTTI is recognized in earnings equal to the entire difference between the investment's amortized cost and its fair value at the balance sheet date. If the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security before recovery of its amortized cost basis, the OTTI is separated into the following: (a) the amount representing the credit loss; and (b) the amount related to all other factors. The amount of the total OTTI related to the credit loss is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. The new amortized cost basis is not adjusted for subsequent recoveries in fair value. The Company evaluates whether a credit impairment exists for fixed maturity securities by considering primarily the following factors: (a) changes in the financial condition of the security's underlying collateral; (b) whether the issuer is current on contractually obligated interest and principal payments; (c) changes in the financial condition, credit rating and near-term prospects of the issuer; (d) the length of time to which the fair value has been less than the amortized cost of the security; and (e) the payment structure of the security. The Company's best estimate of expected future cash flows used to determine the credit loss amount is a quantitative and qualitative process. Quantitative review includes information received from third party sources such as financial statements, pricing and rating changes, liquidity and other statistical information. Qualitative factors include judgments related to business strategies, economic impacts on the issuer and overall judgment related to estimates and industry factors. The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates. These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value. In addition, projections of expected future debt security cash flows may change based upon new information regarding the performance of the issuer. No fixed maturity investment impairments were recognized for the three and nine months ended September 30, 2019 . OTTI of $0.6 million and $0.8 million was recognized on several fixed maturity security issuer for the three and nine months ended September 30, 2018 , respectively. The following tables present the fair values and gross unrealized losses of fixed maturity securities that have remained in a continuous unrealized loss position for the periods indicated. September 30, 2019 Less than 12 months Greater than 12 months Total (In thousands, except for # of securities) Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Fair Value Unrealized Losses # of Fixed maturities: Available-for-sale securities: States and political subdivisions $ 11,307 54 14 $ 3,435 71 7 $ 14,742 125 21 Corporate 53,407 1,331 51 6,310 410 4 59,717 1,741 55 Commercial mortgage-backed 882 — 1 — — — 882 — 1 Residential mortgage-backed 1,701 21 9 93 2 3 1,794 23 12 Asset-backed 7,736 11 10 — — — 7,736 11 10 Total fixed maturities $ 75,033 1,417 85 $ 9,838 483 14 $ 84,871 1,900 99 December 31, 2018 Less than 12 months Greater than 12 months Total (In thousands, except for # of securities) Fair Value Unrealized Losses # of Fair Unrealized # of Fair Unrealized # of Fixed maturities: Available-for-sale securities: States and political subdivisions $ 227,132 883 233 $ 33,891 607 46 $ 261,023 1,490 279 Corporate 230,030 8,770 191 9,936 976 8 239,966 9,746 199 Commercial mortgage-backed 14,992 66 11 — — — 14,992 66 11 Residential mortgage-backed 18 — 3 98 2 4 116 2 7 Asset-backed 3,747 8 4 — — — 3,747 8 4 Total fixed maturities $ 475,919 9,727 442 $ 43,925 1,585 58 $ 519,844 11,312 500 We have reviewed the securities in an unrealized loss position for the periods ended September 30, 2019 and December 31, 2018 and determined that no OTTI exists that have not been recognized based on our evaluation of the credit worthiness of the issuers and the fact that we do not intend to sell the investments nor is it likely that we will be required to sell the securities before recovery of their amortized cost bases which may be maturity. We continue to monitor all securities on an on-going basis and future information may become available which could result in other-than-temporary impairments being recorded. The amortized cost and fair value of fixed maturity securities at September 30, 2019 by contractual maturity are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon final stated maturity. September 30, 2019 Amortized Fair (In thousands) Fixed maturity securities: Due in one year or less $ 111,775 112,511 Due after one year through five years 118,968 124,385 Due after five years through ten years 198,215 212,237 Due after ten years 849,335 920,515 Total fixed maturity securities $ 1,278,293 1,369,648 The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales. Fixed Maturity Securities, Available-for-Sale Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Proceeds $ 29,294 1,084 39,708 1,084 Gross realized gains $ 125 54 234 54 Gross realized losses $ 22 — 387 — There were sales of twenty-three and forty-one available-for-sale fixed maturity securities for the three and nine months ended September 30, 2019 , respectively. One available-for-sale fixed maturity security was sold during the three and nine months ended September 30, 2018 . No equity securities were sold during the three and nine months ended September 30, 2019 and 2018 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We hold available-for-sale fixed maturity securities, which are carried at fair value. We also report our equity securities at fair value with changes in fair value reported through the consolidated statements of comprehensive income. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are required to be classified and disclosed in one of the following three categories: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or whose significant value drivers are observable. • Level 3 - Instruments whose significant value drivers are unobservable. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as U.S. Treasury securities and actively traded mutual fund and stock investments. Level 2 includes those financial instruments that are valued by independent pricing services or broker quotes. These models are primarily industry-standard models that consider various inputs, such as interest rates, credit spreads and foreign exchange rates for the underlying financial instruments. All significant inputs are observable or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include corporate securities, U.S. Government-sponsored enterprise securities, municipal securities and certain mortgage and asset-backed securities. Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on or corroborated by readily available market information. There were no securities in this category at September 30, 2019 . The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated. September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial Assets Fixed maturities available-for-sale U.S. Treasury and U.S. Government-sponsored enterprises $ 11,504 4,646 — 16,150 States and political subdivisions — 596,818 — 596,818 Corporate 52 604,056 — 604,108 Commercial mortgage-backed — 1,107 — 1,107 Residential mortgage-backed — 133,865 — 133,865 Asset-backed — 17,480 — 17,480 Foreign governments — 120 — 120 Total fixed maturities available-for-sale 11,556 1,358,092 — 1,369,648 Equity securities Stock mutual funds 3,166 — — 3,166 Bond mutual funds 12,242 — — 12,242 Common stock 127 — — 127 Non-redeemable preferred stock 310 — — 310 Total equity securities 15,845 — — 15,845 Total financial assets $ 27,401 1,358,092 — 1,385,493 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial Assets Fixed maturities available-for-sale U.S. Treasury and U.S. Government-sponsored enterprises $ 11,274 4,280 — 15,554 States and political subdivisions — 720,115 — 720,115 Corporate 47 381,749 — 381,796 Commercial mortgage-backed — 40,014 — 40,014 Residential mortgage-backed — 68,684 — 68,684 Asset-backed — 4,757 — 4,757 Foreign governments — 119 — 119 Total fixed maturities available-for-sale 11,321 1,219,718 — 1,231,039 Equity securities Stock mutual funds 2,906 — — 2,906 Bond mutual funds 11,774 — — 11,774 Common stock 94 — — 94 Non-redeemable preferred stock 294 — — 294 Total equity securities 15,068 — — 15,068 Total financial assets $ 26,389 1,219,718 — 1,246,107 FINANCIAL INSTRUMENTS VALUATION FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE Fixed maturity securities, available-for-sale. At September 30, 2019 , our fixed maturity securities, valued using a third-party pricing source, totaled $1.4 billion for Level 2 assets and comprised 98.0% of total reported fair value of our financial assets. The Level 1 and Level 2 valuations are reviewed and updated quarterly through random testing by comparisons to separate pricing models, other third-party pricing services, and back tested to recent trades. In addition, we obtain information annually relative to the third-party pricing models and review model parameters for reasonableness. There were no Level 3 assets at September 30, 2019 . For the nine months ended September 30, 2019 , there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third-party prices were changed from the values received. There were no transfers between Levels 1 and 2 securities during the nine months ended September 30, 2019 . Equity securities. Our equity securities are classified as Level 1 assets as their fair values are based upon quoted market prices. We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. There were no transfers in or out of Level 3 during the nine months ended September 30, 2019 . FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE Estimates of fair values are made at a specific point in time, based on relevant market prices and information about the financial instruments. The estimated fair values of financial instruments presented below are not necessarily indicative of the amounts the Company might realize in actual market transactions. The carrying amount and fair value for the financial assets and liabilities on the consolidated balance sheets not otherwise disclosed for the periods indicated are as follows: September 30, 2019 December 31, 2018 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Mortgage loans $ 180 219 186 222 Policy loans 81,964 81,964 80,825 80,825 Short-term investments 2,453 2,453 7,865 7,865 Cash and cash equivalents 47,147 47,147 45,492 45,492 Financial Liabilities: Annuity - investment contracts 57,306 62,653 56,658 55,977 Mortgage loans. Mortgage loans are secured principally by residential properties. Weighted average interest rates for these loans were approximately 6.6% at September 30, 2019 and December 31, 2018 . At September 30, 2019 , maturities ranged from 18 to 23 years. Management estimated the fair value using an annual interest rate of 6.25% at September 30, 2019 . Our mortgage loans are considered Level 3 assets in the fair value hierarchy. Policy loans. Policy loans had a weighted average annual interest rate of 7.7% at September 30, 2019 and December 31, 2018 , and no specified maturity dates. The aggregate fair value of policy loans approximates the carrying value reflected on the consolidated balance sheets. These loans typically carry an interest rate that corresponds to the crediting rate applied to the related policy and contract reserves. Policy loans are an integral part of the life insurance policies we have inforce, cannot be valued separately and are not marketable. Therefore, the fair value of policy loans approximates the carrying value and policy loans are considered Level 3 assets in the fair value hierarchy. Other. The fair value of short-term investments and cash and cash equivalents approximate carrying value and are characterized as Level 1 assets in the fair value hierarchy. Annuity liabilities. The fair value of the Company's liabilities under annuity contract policies, which are considered Level 3 assets, was estimated at September 30, 2019 using discounted cash flows based upon spot rates ranging from 1.84% to 2.96% adjusted for various risk adjustments. The fair value of liabilities under all insurance contracts are taken into consideration in the overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES QUALIFICATION OF LIFE PRODUCTS We have previously reported that a portion of the life insurance policies issued by our subsidiary insurance companies failed to qualify for the favorable U.S. federal income tax treatment afforded by Section 7702 of the Internal Revenue Code ("IRC") of 1986. Further, we have determined that the structure of our policies sold to non-U.S. citizens, which were novated to CICA Ltd. effective July 1, 2018 , may have inadvertently generated U.S. source income over time. We completed the remediation of domestic life and annuity policies to U.S. citizens to comply with the IRC. For the novated policies sold to non-U.S. citizens, we expect to settle any past liabilities with the Internal Revenue Service ("IRS"). The Company has continued to refine its estimate of the exposure and expenses related to these tax issues, as described below for the current reporting period. The products have been and continue to be appropriately reported as life insurance under U.S. GAAP for financial reporting. These tax issues result in an estimated liability as of September 30, 2019 of $9.9 million , after tax, related to projected IRS settlement amounts of $9.0 million and reserve increases totaling $0.9 million to bring policies into compliance. The probability weighted range of financial estimates relative to this issue is $6.0 million to $52.5 million , after tax. This estimated range includes projected taxes and interest and penalties payable to the IRS, as well as estimated increased payout obligations to current holders of non-compliant domestic life insurance policies expected to result from remediation of those policies. The estimated liability and the estimated range will be updated as we continue to refine our estimates. The amount of our liabilities and expenses depends on a number of uncertainties, including the number of prior tax years for which we may be liable to the IRS and the methodology applicable to the calculation of the tax liabilities for policies. Given the range of potential outcomes and the significant variables assumed in establishing our estimates, actual amounts incurred may exceed our reserve and could exceed the high end of our estimated range of liabilities and expenses. To the extent the amount reserved by the Company is insufficient to meet the actual amount of our liabilities and expenses, or if our estimates of those liabilities and expenses change in the future, our financial condition and results of operations may be materially adversely affected. Management believes that based upon current information we have recorded the best estimate liability to date. Accruals for loss contingencies are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. The process of determining our best estimate and the estimated range was a complex undertaking including insight from external consultants and involved management’s judgment based upon a variety of factors known at the time. We expect to incur additional costs ranging from $0.2 million to $0.9 million related to performing this analysis, but due to the uncertainty of actions, we cannot reasonably estimate these costs with any reliability. Actual amounts incurred may exceed this estimate and will be recorded as they become probable and can be reasonably estimated. On May 17, 2017, we submitted an offer to enter into Closing Agreements with the IRS covering certain CICA and CNLIC domestic life insurance policies (the "Closing Agreements"), which was accepted by the IRS on June 7, 2019. Pursuant to the Closing Agreements, CICA and CNLIC agreed to pay the IRS $123,779 and $4,118, respectively, by August 6, 2019, and follow the corrective steps for the policies outlined in the Closing Agreements by September 5, 2019. These payments were made to the IRS on July 12, 2019. For certain life insurance policies that failed to satisfy the requirements of the cash value accumulation test of Section 7702 ("CVAT") of the IRC, we agreed to amend such policies retroactively to their original dates of issue by adding an endorsement (which provides that the death benefit of such policies will not be less than the amount of life insurance necessary to maintain CVAT compliance). For the life insurance policies that failed to satisfy the premium requirements of the guideline premium test of Section 7702 of the IRC, we agreed as needed to refund each policyholder the amount of premiums paid that exceeded the guideline premium limitation plus interest thereon. We completed these corrective steps prior to September 5, 2019, the deadline set forth in the Closing Agreements. LITIGATION AND REGULATORY ACTIONS From time to time we are subject to legal and regulatory actions relating to our business. We may incur defense costs, including attorneys' fees, and other direct litigation costs associated with defending claims. If we suffer an adverse judgment as a result of litigation claims, it could have a material adverse effect on our business, results of operations and financial condition. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Our provision for income taxes may not have the customary relationship of taxes to income. CICA Ltd., a wholly owned subsidiary of Citizens, is considered a controlled foreign corporation for federal tax purposes. As a result, the insurance activity of CICA Ltd. is subject to Subpart F of the IRC and is included in Citizens’ taxable income. For the three and nine months ended September 30, 2018, the Subpart F income inclusion generated $18.7 million of federal income tax expense and this amount was largely driven by the impact of the novation transaction. The novation transaction also resulted in somewhat offsetting adjustments to the current tax liability for CICA, notably an increased amortization of DAC under Section 848 of the IRC, a reduction of premium income and a release of the $52.1 million uncertain tax position related to tax reserves on product qualification issues. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows: Three Months Ended September 30, 2019 2019 2018 (In thousands, except for %) Amount % Amount % Federal income tax expense: Expected tax expense (benefit) $ 448 21.0 % $ 1,168 21.0 % Foreign income tax rate differential (521 ) (24.4 )% (7,967 ) (143.2 )% Annualized effective tax rate adjustment (1,796 ) (84.2 )% (743 ) (13.4 )% Adjustment of prior year taxes 1,923 90.2 % — — % Effect of uncertain tax position (2,284 ) (107.1 )% 1,024 18.4 % Nondeductible costs to remediate tax compliance issue (27 ) (1.3 )% 469 8.4 % CICA Ltd. Subpart F income 2,253 105.7 % 18,657 335.4 % Other 90 4.2 % 63 1.1 % Total federal income tax expense $ 86 4.1 % $ 12,671 227.7 % * See Note 1 in the Notes to Consolidated Financial Statements Nine Months Ended September 30, 2019 2018 (In thousands, except for %) Amount % Amount % Federal income tax expense: Expected tax expense (benefit) $ 172 21.0 % $ 846 21.0 % Foreign income tax rate differential (632 ) (77.4 )% (7,967 ) (197.7 )% Annualized effective tax rate adjustment 1,468 179.7 % 231 5.7 % Adjustment of prior year taxes 1,923 235.4 % — — % Effect of uncertain tax position 132 16.2 % 2,688 66.7 % Nondeductible costs to remediate tax compliance issue (27 ) (3.3 )% (735 ) (18.2 )% CICA Ltd. Subpart F income 3,848 471.0 % 18,657 463.0 % Other 254 31.1 % (60 ) (1.5 )% Total federal income tax expense $ 7,138 873.7 % $ 13,660 339.0 % * See Note 1 in the Notes to Consolidated Financial Statements A reconciliation of federal income tax expense above is computed by applying the federal income tax rate of 21% in 2019 and 2018 to income before federal income tax expense. Income tax expense consists of: Nine Months Ended September 30, 2019 2018 (In thousands) Federal income tax expense: Current $ 6,580 (45,669 ) Deferred 558 59,329 Total federal income tax expense $ 7,138 13,660 * See Note 1 in the Notes to Consolidated Financial Statements The components of deferred federal income taxes are as follows: Net Deferred Tax Asset (Liability) (In thousands) September 30, 2019 December 31, 2018 Deferred tax assets: Future policy benefit reserves $ 2,359 2,795 Net operating and capital loss carryforwards 188 191 Accrued expenses 6 30 Investments 1,650 1,841 Deferred intercompany loss 4,456 5,190 Other 801 309 Total gross deferred tax assets 9,460 10,356 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets (8,479 ) (8,745 ) Unrealized gains on investments available-for-sale (7,919 ) (1,968 ) Tax reserves transition liability (4,671 ) (4,864 ) Other (472 ) (488 ) Total gross deferred tax liabilities (21,541 ) (16,065 ) Net deferred tax liability $ (12,081 ) (5,709 ) |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES Effective January 1, 2019, the Company adopted the new lease accounting guidance in Accounting Standards Update No. 2016-02, Leases (Topic 842) ("ASC No. 842"). We also elected the package of practical expedients, which among other things, does not require reassessment of lease classification. As a result of the adoption of the new lease accounting guidance, the Company recognized on January 1, 2019 a lease liability of $1.8 million discounted using an incremental borrowing rate of 4.76% and a right-of-use asset of $1.8 million . There was $1.5 million of undiscounted lease liability remaining as of September 30, 2019 . The Company uses its estimated incremental borrowing rate, which is derived from information available at lease commencement date, in determining present value of lease payments. The Company leases home office space in Austin, Texas for Citizens and in Bermuda for CICA Ltd. as well as several district office locations related to our Home Service Insurance segment across Louisiana, Mississippi and Arkansas, which are classified as operating leases. Certain operating leases include renewal options that extend the lease term. The exercise of lease renewal options is at our sole discretion when it is reasonably certain that we will exercise such option . Leases with an initial term of 12 months or less are immaterial to the consolidated financial statements and are recognized as lease expense on a straight-line basis over the lease term and not recorded on the consolidated balance sheet. The table below summarizes the number of weighted-average years remaining in our lease liabilities. Lease Term September 30, 2019 Weighted-average remaining lease term (years) Operating leases 1.4 Maturities of our remaining lease liabilities as of September 30, 2019 are as follows. (In thousands) Operating Lease Payments (a) Maturity of Lease Liabilities 2019 $ 340 2020 968 2021 174 2022 32 2023 — After 2023 — Total lease payments 1,514 Interest expense (50 ) Present value of lease liabilities $ 1,464 (a) Operating lease payments exclude $13.5 million of legally binding minimum lease payments for leases signed but not yet commenced. We recorded the lease right-of-use asset in Other Assets and the lease liability in Other Liabilities. Cash payments related to lease liabilities were $0.2 million and $1.3 million for the three and nine months ended September 30, 2019 , respectively, and were reported in operating cash flows. In January 2019, the Company entered into a long-term lease agreement with an unrelated party for its new home office in Austin, Texas. The building in which we have leased office space is under construction and is expected to be completed in 2020. The long-term lease will commence after construction of the building is complete and has a 121-month term, and therefore is not included in the tables above. Payments under the new long-term lease agreement will average approximately $112,340 per month. The Company does not engage in lease agreements among related parties. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has various routine related party transactions in conjunction with our holding company structure, such as a management service agreement related to costs incurred, a tax sharing agreement between entities, and inter-company dividends and capital contributions. There were no other changes related to these relationships during the nine months ended September 30, 2019 . See our Annual Report on Form 10-K for the year ended December 31, 2018 for a comprehensive discussion of related party transactions. In September 2019, CICA contributed $0.5 million in capital to CNLIC. |
Financial Statements (Policies)
Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation [Policy Text Block] | The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), Citizens National Life Insurance Company ("CNLIC"), CICA Life Ltd. ("CICA Ltd."), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC") and Computing Technology, Inc. ("CTI"). All significant inter-company accounts and interactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as the "Company", "we", "us" or "our". The consolidated statements of financial position as of September 30, 2019 , the consolidated statements of comprehensive income and stockholders' equity for the three and nine months ended September 30, 2019 and September 30, 2018 and the consolidated statements of cash flows for the nine months ended September 30, 2019 and September 30, 2018 have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2019 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries - CICA, CNLIC, CICA Ltd., SPLIC and MGLIC. CICA and CNLIC issued ordinary whole-life policies, credit life and disability, and accident and health related policies, throughout the Midwest and southern U.S. until they ceased most domestic sales beginning January 1, 2017. CICA Ltd. primarily issues endowment and ordinary whole-life policies to non-U.S. residents. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi. SPFIC, a wholly-owned subsidiary of SPLIC, writes a limited amount of property insurance in Louisiana. MGLIC provides industrial life policies through independent funeral homes in Mississippi. CTI provides data processing systems and services to the Company. |
Use of Estimates, Policy [Policy Text Block] | The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include those used in the evaluation of other-than-temporary impairments on debt and equity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements. |
Significant Accounting Policies [Text Block] | For a description of our significant accounting policies, see Note 1. Summary of Significant Accounting Policies in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018 , which should be read in conjunction with these accompanying consolidated financial statements. |
Accounting Pronouncements (Poli
Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ACCOUNTING STANDARDS RECENTLY ADOPTED In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) . The ASU requires organizations that lease assets, referred to as "lessees," to recognize on the consolidated statement of financial position the rights and obligations created by those leases. The ASU also requires disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the consolidated financial statements. The ASU on leases became effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company has several lease agreements, such as district office locations related to our Home Service Insurance segment. The Company adopted this standard effective January 1, 2019 and recognizes these lease agreements on the consolidated statements of financial position as a right-of-use asset and a corresponding lease liability. See Note 9. Leases for further discussion. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The Company has a large portfolio of callable debt securities purchased at a premium. As such, the Company had already been amortizing the premium to the earliest call date (yield to worst), thus adoption of this guidance as of January 1, 2019 did not have a material impact on our consolidated financial statements. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with the accounting for employee share-based compensation. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted. We adopted the provisions of this ASU as of January 1, 2019. This guidance did not have a material impact on our consolidated financial statements. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326) , with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. Credit losses on available-for-sale debt securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to current U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Current U.S. GAAP prohibits reflecting those improvements in current-period earnings. For public business entities, the amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has evaluated the impact this guidance will have on our consolidated financial statements and expects the impact to be immaterial. In August 2018, the FASB issued ASU No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts: • Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income; • Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income; • Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk; • Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and • Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions. For calendar-year public companies, the changes will be effective on January 1, 2022. The Company is evaluating the impact this guidance will have on our consolidated financial statements. This new guidance is expected to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; however, early adoption is permitted. Entities are also allowed to elect early adoption of the eliminated or modified disclosure requirements and delay adoption of the new disclosure requirements until their effective date. As this ASU only revises disclosure requirements, it is not expected to have a material impact on the Company’s consolidated financial statements. In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . This ASU requires an entity in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. This ASU will be effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. We are evaluating the impact of this guidance on our limited cloud computing arrangements and our consolidated financial statements. No other new accounting pronouncement issued or effective during the year had, or is expected to have, a material impact on our consolidated financial statements. |
Financial Statements (Tables)
Financial Statements (Tables) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The total impact of these system conversions reflected in the accompanying consolidated financial statements as of and for the three and nine months ended September 30, 2019 and 2018 are summarized in the table below. (In thousands) September 30, 2019 September 30, 2018 Increase (Decrease) Consolidated Statements of Financial Position Deferred policy acquisition costs $ (1,396 ) (4,339 ) Future policy benefit reserves: Life insurance (2,299 ) (10,197 ) Consolidated Statement of Comprehensive Income Decrease in future policy benefit reserves (2,299 ) (10,197 ) Amortization of deferred policy acquisition costs 1,396 4,339 Income before federal income tax 903 5,858 Federal income tax expense 190 1,230 Net income $ 713 4,628 | |
Restatement to Prior Year Income [Table Text Block] | As disclosed in Note 14. Quarterly Financial Information (Unaudited) in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018, the Company has restated its unaudited consolidated financial information as of and for the three and nine month periods ended September 30, 2018 to correct an immaterial error related to the accounting for the income tax effects of the novation of international insurance policies to our Bermuda-based subsidiary on July 1, 2018 . Federal income tax expense and net income (loss) have been restated herein to properly reflect the reduction in federal income tax expense as compared to originally reported amounts. Basic & diluted earnings (losses) per share of Class A common stock and Class B common stock were also restated. The table below reflects the line items adjusted as a result of the restatement as of September 30, 2018 and for the three and nine months ended September 30, 2018. (In thousands, except per share amounts) As Previously Reported Adjustments As Restated For the Three Months Ended September 30, 2018 Consolidated Statement of Comprehensive Income Federal income expense (benefit) $ 20,316 (7,645 ) 12,671 Net income (loss) (14,754 ) 7,645 (7,109 ) Basic and diluted earnings (losses) per share of Class A common stock (0.30 ) 0.16 (0.14 ) Basic and diluted earnings (losses) per share of Class B common stock (0.14 ) 0.07 (0.07 ) Total comprehensive income (loss) (16,788 ) 7,645 (9,143 ) For the Nine Months Ended September 30, 2018 Consolidated Statement of Comprehensive Income Federal income expense (benefit) $ 21,305 (7,645 ) 13,660 Net income (loss) (17,275 ) 7,645 (9,630 ) Basic and diluted earnings (losses) per share of Class A common stock (0.35 ) 0.16 (0.19 ) Basic and diluted earnings (losses) per share of Class B common stock (0.17 ) 0.07 (0.10 ) Total comprehensive income (loss) (43,084 ) 7,645 (35,439 ) As of September 30, 2018 Consolidated Statements of Stockholders' Equity Balance at June 30, 2018 $ 197,430 — 197,430 Net income (loss) (14,754 ) 7,645 (7,109 ) Total comprehensive income (loss) (16,788 ) 7,645 (9,143 ) Accumulated deficit (75,812 ) 7,645 (68,167 ) Balance at September 30, 2018 180,739 7,645 188,384 For the Nine Months Ended September 30, 2018 Consolidated Statements of Cash Flows Net income (loss) $ (17,275 ) 7,645 (9,630 ) Deferred federal income tax (expense) benefit 67,040 (7,711 ) 59,329 Federal income tax payable (45,744 ) 66 (45,678 ) Net cash provided by operating activities 65,235 — 65,235 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Three Months Ended September 30, 2019 (In thousands) Revenues: Premiums $ 34,385 11,624 — 46,009 Net investment income 11,340 3,309 390 15,039 Realized investment gains, net 61 3 8 72 Other income (loss) 349 (2 ) — 347 Total revenue 46,135 14,934 398 61,467 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 22,533 6,218 — 28,751 Increase in future policy benefit reserves 7,667 (1,258 ) — 6,409 Policyholders' dividends 1,551 9 — 1,560 Total insurance benefits paid or provided 31,751 4,969 — 36,720 Commissions 5,386 3,493 — 8,879 Other general expenses 5,358 4,669 1,503 11,530 Capitalization of deferred policy acquisition costs (4,743 ) (1,241 ) — (5,984 ) Amortization of deferred policy acquisition costs 5,960 1,875 — 7,835 Amortization of cost of customer relationships acquired 113 242 — 355 Total benefits and expenses 43,825 14,007 1,503 59,335 Income (loss) before income tax expense $ 2,310 927 (1,105 ) 2,132 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Nine Months Ended September 30, 2019 (In thousands) Revenues: Premiums $ 97,439 34,838 — 132,277 Net investment income 33,121 9,720 1,309 44,150 Realized investment gains (losses), net 5,586 639 (3,061 ) 3,164 Other income 1,146 — 2 1,148 Total revenue 137,292 45,197 (1,750 ) 180,739 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 61,011 17,797 — 78,808 Increase in future policy benefit reserves 27,499 681 — 28,180 Policyholders' dividends 4,136 29 — 4,165 Total insurance benefits paid or provided 92,646 18,507 — 111,153 Commissions 14,435 10,712 — 25,147 Other general expenses 18,021 15,071 4,519 37,611 Capitalization of deferred policy acquisition costs (12,465 ) (3,759 ) — (16,224 ) Amortization of deferred policy acquisition costs 17,454 3,589 — 21,043 Amortization of cost of customer relationships acquired 373 819 — 1,192 Total benefits and expenses 130,464 44,939 4,519 179,922 Income (loss) before federal income tax expense $ 6,828 258 (6,269 ) 817 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Three Months Ended September 30, 2018 (In thousands) Revenues: Premiums $ 35,784 11,645 — 47,429 Net investment income 10,062 3,276 249 13,587 Realized investment gains (losses), net (475 ) (32 ) 9 (498 ) Other income 643 — — 643 Total revenue 46,014 14,889 258 61,161 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 19,212 5,864 — 25,076 Increase in future policy benefit reserves 544 1,109 — 1,653 Policyholders' dividends 1,581 14 — 1,595 Total insurance benefits paid or provided 21,337 6,987 — 28,324 Commissions 4,712 3,944 — 8,656 Other general expenses 6,583 4,502 1,317 12,402 Capitalization of deferred policy acquisition costs (3,873 ) (1,688 ) — (5,561 ) Amortization of deferred policy acquisition costs 10,132 1,280 — 11,412 Amortization of cost of customer relationships acquired 150 216 — 366 Total benefits and expenses 39,041 15,241 1,317 55,599 Income (loss) before income tax expense $ 6,973 (352 ) (1,059 ) 5,562 Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated Nine Months Ended September 30, 2018 (In thousands) Revenues: Premiums $ 102,537 35,051 — 137,588 Net investment income 30,331 9,894 944 41,169 Realized investment losses, net (684 ) (535 ) (32 ) (1,251 ) Other income (loss) 931 (1 ) — 930 Total revenue 133,115 44,409 912 178,436 Benefits and expenses: Insurance benefits paid or provided: Claims and surrenders 49,522 17,322 — 66,844 Increase in future policy benefit reserves 29,509 3,307 — 32,816 Policyholders' dividends 4,483 33 — 4,516 Total insurance benefits paid or provided 83,514 20,662 — 104,176 Commissions 14,717 11,567 — 26,284 Other general expenses 12,607 15,438 5,330 33,375 Capitalization of deferred policy acquisition costs (12,663 ) (4,501 ) — (17,164 ) Amortization of deferred policy acquisition costs 22,912 3,306 — 26,218 Amortization of cost of customer relationships acquired 434 1,083 — 1,517 Total benefits and expenses 121,521 47,555 5,330 174,406 Income (loss) before federal income tax expense $ 11,594 (3,146 ) (4,418 ) 4,030 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following tables set forth the computation of basic and diluted earnings per share. Three Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net income (loss) $ 2,046 (7,109 ) Net income (loss) allocated to Class A common stock $ 2,026 (7,036 ) Net income (loss) allocated to Class B common stock 20 (73 ) Net income (loss) $ 2,046 (7,109 ) Denominator: Weighted average shares of Class A outstanding - basic 49,229 49,080 Weighted average shares of Class A outstanding - diluted 49,327 49,127 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted earnings (loss) per share of Class A common stock $ 0.04 (0.14 ) Basic and diluted earnings (loss) per share of Class B common stock 0.02 (0.07 ) * See Note 1 in the Notes to Consolidated Financial Statements Nine Months Ended September 30, 2019 2018 (In thousands, except per share amounts) Basic and diluted earnings per share: Numerator: Net loss $ (6,321 ) (9,630 ) Net loss allocated to Class A common stock $ (6,257 ) (9,533 ) Net loss allocated to Class B common stock (64 ) (97 ) Net loss $ (6,321 ) (9,630 ) Denominator: Weighted average shares of Class A outstanding - basic 49,229 49,080 Weighted average shares of Class A outstanding - diluted 49,327 49,127 Weighted average shares of Class B outstanding - basic and diluted 1,002 1,002 Basic and diluted loss per share of Class A common stock $ (0.13 ) (0.19 ) Basic and diluted loss per share of Class B common stock (0.06 ) (0.10 ) * See Note 1 in the Notes to Consolidated Financial Statements |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Including Short Term And Cash And Cash Equivalents [Abstract] | |
Investments Including Short Term And Cash And Cash Equivalents [Table Text Block] | The Company invests primarily in fixed maturity securities, which totaled 90.1% of total cash, cash equivalents and investments at September 30, 2019 . The Company's cash, cash equivalents and investments are listed below. Carrying Value (In thousands, except for %) September 30, 2019 December 31, 2018 Amount % Amount % Fixed maturity securities $ 1,369,648 90.1 % $ 1,231,039 88.7 % Equity securities 15,845 1.0 % 15,068 1.1 % Mortgage loans 180 — % 186 — % Policy loans 81,964 5.4 % 80,825 5.8 % Real estate and other long-term investments 2,593 0.2 % 7,223 0.5 % Short-term investments 2,453 0.2 % 7,865 0.6 % Cash and cash equivalents 47,147 3.1 % 45,492 3.3 % Total cash, cash equivalents and investments $ 1,519,830 100.0 % $ 1,387,698 100.0 % |
Debt and Equity Securities, Unrealized Gain (Loss) | |
Unrealized Gain (Loss) on Investments [Table Text Block] | The following tables represent the cost or amortized cost, gross unrealized gains and losses and fair value of fixed maturities as of the dates indicated. Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value September 30, 2019 (In thousands) Fixed maturities: Available-for-sale: U.S. Treasury securities $ 9,729 1,775 — 11,504 U.S. Government-sponsored enterprises 3,522 1,124 — 4,646 States and political subdivisions 567,551 29,392 125 596,818 Corporate 560,701 45,148 1,741 604,108 Commercial mortgage-backed 1,107 — — 1,107 Residential mortgage-backed 118,101 15,787 23 133,865 Asset-backed 17,480 11 11 17,480 Foreign governments 102 18 — 120 Total fixed maturities $ 1,278,293 93,255 1,900 1,369,648 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 (In thousands) Fixed maturities: Available-for-sale securities: U.S. Treasury securities $ 9,864 1,410 — 11,274 U.S. Government-sponsored enterprises 3,540 740 — 4,280 States and political subdivisions 713,991 7,614 1,490 720,115 Corporate 384,817 6,725 9,746 381,796 Commercial mortgage-backed 39,694 386 66 40,014 Residential mortgage-backed 66,960 1,726 2 68,684 Asset-backed 4,764 1 8 4,757 Foreign governments 117 2 — 119 Total fixed maturities $ 1,223,747 18,604 11,312 1,231,039 |
Equity Securities, Restricted | |
Schedule of Equity Securities [Table Text Block] | Most of the Company's equity securities are diversified stock and bond mutual funds. Fair Value (In thousands) September 30, 2019 December 31, 2018 Equity securities: Stock mutual funds $ 3,166 2,906 Bond mutual funds 12,242 11,774 Common stock 127 94 Non-redeemable preferred stock 310 294 Total equity securities $ 15,845 15,068 |
Unrealized Continuous Losses on Investments [Abstract] | |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables present the fair values and gross unrealized losses of fixed maturity securities that have remained in a continuous unrealized loss position for the periods indicated. September 30, 2019 Less than 12 months Greater than 12 months Total (In thousands, except for # of securities) Fair Value Unrealized Losses # of Securities Fair Value Unrealized Losses # of Fair Value Unrealized Losses # of Fixed maturities: Available-for-sale securities: States and political subdivisions $ 11,307 54 14 $ 3,435 71 7 $ 14,742 125 21 Corporate 53,407 1,331 51 6,310 410 4 59,717 1,741 55 Commercial mortgage-backed 882 — 1 — — — 882 — 1 Residential mortgage-backed 1,701 21 9 93 2 3 1,794 23 12 Asset-backed 7,736 11 10 — — — 7,736 11 10 Total fixed maturities $ 75,033 1,417 85 $ 9,838 483 14 $ 84,871 1,900 99 December 31, 2018 Less than 12 months Greater than 12 months Total (In thousands, except for # of securities) Fair Value Unrealized Losses # of Fair Unrealized # of Fair Unrealized # of Fixed maturities: Available-for-sale securities: States and political subdivisions $ 227,132 883 233 $ 33,891 607 46 $ 261,023 1,490 279 Corporate 230,030 8,770 191 9,936 976 8 239,966 9,746 199 Commercial mortgage-backed 14,992 66 11 — — — 14,992 66 11 Residential mortgage-backed 18 — 3 98 2 4 116 2 7 Asset-backed 3,747 8 4 — — — 3,747 8 4 Total fixed maturities $ 475,919 9,727 442 $ 43,925 1,585 58 $ 519,844 11,312 500 |
Debt and Equity Securities, Realized Gain (Loss) | |
Schedule of Realized Gain (Loss) [Table Text Block] | The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales. Fixed Maturity Securities, Available-for-Sale Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2019 2018 2019 2018 Proceeds $ 29,294 1,084 39,708 1,084 Gross realized gains $ 125 54 234 54 Gross realized losses $ 22 — 387 — |
Schedule of Maturities by Contractual Maturity Date [Abstract] | |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of fixed maturity securities at September 30, 2019 by contractual maturity are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon final stated maturity. September 30, 2019 Amortized Fair (In thousands) Fixed maturity securities: Due in one year or less $ 111,775 112,511 Due after one year through five years 118,968 124,385 Due after five years through ten years 198,215 212,237 Due after ten years 849,335 920,515 Total fixed maturity securities $ 1,278,293 1,369,648 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated. September 30, 2019 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial Assets Fixed maturities available-for-sale U.S. Treasury and U.S. Government-sponsored enterprises $ 11,504 4,646 — 16,150 States and political subdivisions — 596,818 — 596,818 Corporate 52 604,056 — 604,108 Commercial mortgage-backed — 1,107 — 1,107 Residential mortgage-backed — 133,865 — 133,865 Asset-backed — 17,480 — 17,480 Foreign governments — 120 — 120 Total fixed maturities available-for-sale 11,556 1,358,092 — 1,369,648 Equity securities Stock mutual funds 3,166 — — 3,166 Bond mutual funds 12,242 — — 12,242 Common stock 127 — — 127 Non-redeemable preferred stock 310 — — 310 Total equity securities 15,845 — — 15,845 Total financial assets $ 27,401 1,358,092 — 1,385,493 December 31, 2018 Level 1 Level 2 Level 3 Total Fair Value (In thousands) Financial Assets Fixed maturities available-for-sale U.S. Treasury and U.S. Government-sponsored enterprises $ 11,274 4,280 — 15,554 States and political subdivisions — 720,115 — 720,115 Corporate 47 381,749 — 381,796 Commercial mortgage-backed — 40,014 — 40,014 Residential mortgage-backed — 68,684 — 68,684 Asset-backed — 4,757 — 4,757 Foreign governments — 119 — 119 Total fixed maturities available-for-sale 11,321 1,219,718 — 1,231,039 Equity securities Stock mutual funds 2,906 — — 2,906 Bond mutual funds 11,774 — — 11,774 Common stock 94 — — 94 Non-redeemable preferred stock 294 — — 294 Total equity securities 15,068 — — 15,068 Total financial assets $ 26,389 1,219,718 — 1,246,107 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The carrying amount and fair value for the financial assets and liabilities on the consolidated balance sheets not otherwise disclosed for the periods indicated are as follows: September 30, 2019 December 31, 2018 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Mortgage loans $ 180 219 186 222 Policy loans 81,964 81,964 80,825 80,825 Short-term investments 2,453 2,453 7,865 7,865 Cash and cash equivalents 47,147 47,147 45,492 45,492 Financial Liabilities: Annuity - investment contracts 57,306 62,653 56,658 55,977 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Our provision for income taxes may not have the customary relationship of taxes to income. CICA Ltd., a wholly owned subsidiary of Citizens, is considered a controlled foreign corporation for federal tax purposes. As a result, the insurance activity of CICA Ltd. is subject to Subpart F of the IRC and is included in Citizens’ taxable income. For the three and nine months ended September 30, 2018, the Subpart F income inclusion generated $18.7 million of federal income tax expense and this amount was largely driven by the impact of the novation transaction. The novation transaction also resulted in somewhat offsetting adjustments to the current tax liability for CICA, notably an increased amortization of DAC under Section 848 of the IRC, a reduction of premium income and a release of the $52.1 million uncertain tax position related to tax reserves on product qualification issues. A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows: Three Months Ended September 30, 2019 2019 2018 (In thousands, except for %) Amount % Amount % Federal income tax expense: Expected tax expense (benefit) $ 448 21.0 % $ 1,168 21.0 % Foreign income tax rate differential (521 ) (24.4 )% (7,967 ) (143.2 )% Annualized effective tax rate adjustment (1,796 ) (84.2 )% (743 ) (13.4 )% Adjustment of prior year taxes 1,923 90.2 % — — % Effect of uncertain tax position (2,284 ) (107.1 )% 1,024 18.4 % Nondeductible costs to remediate tax compliance issue (27 ) (1.3 )% 469 8.4 % CICA Ltd. Subpart F income 2,253 105.7 % 18,657 335.4 % Other 90 4.2 % 63 1.1 % Total federal income tax expense $ 86 4.1 % $ 12,671 227.7 % * See Note 1 in the Notes to Consolidated Financial Statements Nine Months Ended September 30, 2019 2018 (In thousands, except for %) Amount % Amount % Federal income tax expense: Expected tax expense (benefit) $ 172 21.0 % $ 846 21.0 % Foreign income tax rate differential (632 ) (77.4 )% (7,967 ) (197.7 )% Annualized effective tax rate adjustment 1,468 179.7 % 231 5.7 % Adjustment of prior year taxes 1,923 235.4 % — — % Effect of uncertain tax position 132 16.2 % 2,688 66.7 % Nondeductible costs to remediate tax compliance issue (27 ) (3.3 )% (735 ) (18.2 )% CICA Ltd. Subpart F income 3,848 471.0 % 18,657 463.0 % Other 254 31.1 % (60 ) (1.5 )% Total federal income tax expense $ 7,138 873.7 % $ 13,660 339.0 % * See Note 1 in the Notes to Consolidated Financial Statements |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense consists of: Nine Months Ended September 30, 2019 2018 (In thousands) Federal income tax expense: Current $ 6,580 (45,669 ) Deferred 558 59,329 Total federal income tax expense $ 7,138 13,660 * See Note 1 in the Notes to Consolidated Financial Statements |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of deferred federal income taxes are as follows: Net Deferred Tax Asset (Liability) (In thousands) September 30, 2019 December 31, 2018 Deferred tax assets: Future policy benefit reserves $ 2,359 2,795 Net operating and capital loss carryforwards 188 191 Accrued expenses 6 30 Investments 1,650 1,841 Deferred intercompany loss 4,456 5,190 Other 801 309 Total gross deferred tax assets 9,460 10,356 Deferred tax liabilities: Deferred policy acquisition costs, cost of customer relationships acquired and intangible assets (8,479 ) (8,745 ) Unrealized gains on investments available-for-sale (7,919 ) (1,968 ) Tax reserves transition liability (4,671 ) (4,864 ) Other (472 ) (488 ) Total gross deferred tax liabilities (21,541 ) (16,065 ) Net deferred tax liability $ (12,081 ) (5,709 ) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Other Operating Lease Information [Table Text Block] | The table below summarizes the number of weighted-average years remaining in our lease liabilities. Lease Term September 30, 2019 Weighted-average remaining lease term (years) Operating leases 1.4 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of our remaining lease liabilities as of September 30, 2019 are as follows. (In thousands) Operating Lease Payments (a) Maturity of Lease Liabilities 2019 $ 340 2020 968 2021 174 2022 32 2023 — After 2023 — Total lease payments 1,514 Interest expense (50 ) Present value of lease liabilities $ 1,464 |
Financial Statements Unusual or
Financial Statements Unusual or Infrequent Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Deferred policy acquisition costs | $ (150,289) | $ (150,289) | $ (155,747) | ||||||
Future policy benefits reserves: | |||||||||
Life insurance | (1,206,042) | (1,206,042) | $ (1,179,946) | ||||||
Decrease in future policy benefit reserves | 6,409 | $ 1,653 | 28,180 | $ 32,816 | |||||
Amortization of deferred policy acquisition costs | 7,835 | 11,412 | 21,043 | 26,218 | |||||
Income (loss) before federal income tax | 2,132 | 5,562 | 817 | 4,030 | |||||
Federal income tax expense (benefit) | 86 | 12,671 | 7,138 | 13,660 | |||||
Net income (loss) | 2,046 | $ (4,565) | $ (3,802) | (7,109) | $ (2,558) | $ 37 | (6,321) | (9,630) | |
Unusual or Infrequent Item, or Both [Member] | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | |||||||||
Deferred policy acquisition costs | (1,396) | (4,339) | (1,396) | (4,339) | |||||
Future policy benefits reserves: | |||||||||
Life insurance | $ (2,299) | $ (10,197) | (2,299) | (10,197) | |||||
Decrease in future policy benefit reserves | (2,299) | (10,197) | |||||||
Amortization of deferred policy acquisition costs | 1,396 | 4,339 | |||||||
Income (loss) before federal income tax | 903 | 5,858 | |||||||
Federal income tax expense (benefit) | 190 | 1,230 | |||||||
Net income (loss) | $ 713 | $ 4,628 |
Financial Statements Restatemen
Financial Statements Restatement (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 01, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Federal income tax expense (benefit) | $ 86 | $ 12,671 | $ 7,138 | $ 13,660 | ||||||||
Net income (loss) | 2,046 | $ (4,565) | $ (3,802) | (7,109) | $ (2,558) | $ 37 | (6,321) | (9,630) | ||||
Comprehensive income (loss) | 24,567 | 24,411 | 23,078 | (9,143) | (12,229) | (14,067) | 72,056 | (35,439) | ||||
Stockholders' Equity, Balance at January 1, 2018 | $ 223,513 | |||||||||||
Novation Date | Jul. 1, 2018 | |||||||||||
Retained Earnings (Accumulated Deficit) | (75,920) | (68,167) | (75,920) | (68,167) | $ (69,599) | |||||||
Stockholders' equity | 261,342 | 236,432 | 211,894 | 188,384 | 197,430 | 209,446 | 261,342 | 188,384 | 187,733 | $ 223,513 | ||
Deferred federal income tax benefit | 560 | 59,329 | ||||||||||
Federal income tax receivable | 6,580 | (45,678) | ||||||||||
Net cash provided by operating activities | 50,913 | 65,235 | ||||||||||
Previously Reported [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Federal income tax expense (benefit) | 20,316 | 21,305 | ||||||||||
Net income (loss) | (14,754) | (17,275) | ||||||||||
Comprehensive income (loss) | (16,788) | (43,084) | ||||||||||
Retained Earnings (Accumulated Deficit) | (75,812) | (75,812) | ||||||||||
Stockholders' equity | 180,739 | 180,739 | ||||||||||
Deferred federal income tax benefit | 67,040 | |||||||||||
Federal income tax receivable | (45,744) | |||||||||||
Net cash provided by operating activities | 65,235 | |||||||||||
Restatement Adjustment [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Federal income tax expense (benefit) | (7,645) | (7,645) | ||||||||||
Net income (loss) | 7,645 | 7,645 | ||||||||||
Comprehensive income (loss) | 7,645 | 7,645 | ||||||||||
Retained Earnings (Accumulated Deficit) | 7,645 | 7,645 | ||||||||||
Stockholders' equity | 7,645 | 7,645 | ||||||||||
Deferred federal income tax benefit | (7,711) | |||||||||||
Federal income tax receivable | 66 | |||||||||||
Net cash provided by operating activities | 0 | |||||||||||
Accumulated deficit [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Net income (loss) | 2,046 | (4,565) | (3,802) | (7,109) | (2,558) | 37 | (6,321) | (9,630) | ||||
Comprehensive income (loss) | 2,046 | (4,565) | (3,802) | (7,109) | (2,558) | 37 | ||||||
Stockholders' Equity, Balance at January 1, 2018 | 197,430 | $ (58,537) | ||||||||||
Stockholders' equity | $ (75,920) | $ (77,966) | $ (73,401) | $ (68,167) | (61,058) | $ (58,500) | $ (75,920) | $ (68,167) | $ (69,599) | $ (54,375) | ||
Accumulated deficit [Member] | Previously Reported [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Stockholders' Equity, Balance at January 1, 2018 | 197,430 | |||||||||||
Accumulated deficit [Member] | Restatement Adjustment [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Stockholders' Equity, Balance at January 1, 2018 | $ 0 | |||||||||||
Common Class A [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.04 | $ (0.14) | $ (0.13) | $ (0.19) | ||||||||
Common Class A [Member] | Previously Reported [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | (0.30) | (0.35) | ||||||||||
Common Class A [Member] | Restatement Adjustment [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | 0.16 | 0.16 | ||||||||||
Common Class B [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.02 | (0.07) | $ (0.06) | (0.10) | ||||||||
Common Class B [Member] | Previously Reported [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | (0.14) | (0.17) | ||||||||||
Common Class B [Member] | Restatement Adjustment [Member] | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.07 | $ 0.07 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 2 | |||
Segment reporting, measurement differences between segment and consolidated income (loss) | The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations. | |||
Revenues: | ||||
Premiums | $ 46,009 | $ 47,429 | $ 132,277 | $ 137,588 |
Net investment income | 15,039 | 13,587 | 44,150 | 41,169 |
Realized investment gains (losses), net | 72 | (498) | 3,164 | (1,251) |
Other income | 347 | 643 | 1,148 | 930 |
Total revenue | 61,467 | 61,161 | 180,739 | 178,436 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 28,751 | 25,076 | 78,808 | 66,844 |
Increase in future policy benefit reserves | 6,409 | 1,653 | 28,180 | 32,816 |
Policyholders' dividends | 1,560 | 1,595 | 4,165 | 4,516 |
Total insurance benefits paid or provided | 36,720 | 28,324 | 111,153 | 104,176 |
Commissions | 8,879 | 8,656 | 25,147 | 26,284 |
Other general expenses | 11,530 | 12,402 | 37,611 | 33,375 |
Capitalization of deferred policy acquisition costs | (5,984) | (5,561) | (16,224) | (17,164) |
Amortization of deferred policy acquisition costs | 7,835 | 11,412 | 21,043 | 26,218 |
Amortization of cost of customer relationships acquired | 355 | 366 | 1,192 | 1,517 |
Total benefits and expenses | 59,335 | 55,599 | 179,922 | 174,406 |
Income (loss) before income tax expense | 2,132 | 5,562 | 817 | 4,030 |
Life Insurance Segment [Member] | ||||
Revenues: | ||||
Premiums | 34,385 | 35,784 | 97,439 | 102,537 |
Net investment income | 11,340 | 10,062 | 33,121 | 30,331 |
Realized investment gains (losses), net | 61 | (475) | 5,586 | (684) |
Other income | 349 | 643 | 1,146 | 931 |
Total revenue | 46,135 | 46,014 | 137,292 | 133,115 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 22,533 | 19,212 | 61,011 | 49,522 |
Increase in future policy benefit reserves | 7,667 | 544 | 27,499 | 29,509 |
Policyholders' dividends | 1,551 | 1,581 | 4,136 | 4,483 |
Total insurance benefits paid or provided | 31,751 | 21,337 | 92,646 | 83,514 |
Commissions | 5,386 | 4,712 | 14,435 | 14,717 |
Other general expenses | 5,358 | 6,583 | 18,021 | 12,607 |
Capitalization of deferred policy acquisition costs | (4,743) | (3,873) | (12,465) | (12,663) |
Amortization of deferred policy acquisition costs | 5,960 | 10,132 | 17,454 | 22,912 |
Amortization of cost of customer relationships acquired | 113 | 150 | 373 | 434 |
Total benefits and expenses | 43,825 | 39,041 | 130,464 | 121,521 |
Income (loss) before income tax expense | 2,310 | 6,973 | 6,828 | 11,594 |
Home Service Insurance Segment [Member] | ||||
Revenues: | ||||
Premiums | 11,624 | 11,645 | 34,838 | 35,051 |
Net investment income | 3,309 | 3,276 | 9,720 | 9,894 |
Realized investment gains (losses), net | 3 | (32) | 639 | (535) |
Other income | (2) | 0 | 0 | (1) |
Total revenue | 14,934 | 14,889 | 45,197 | 44,409 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 6,218 | 5,864 | 17,797 | 17,322 |
Increase in future policy benefit reserves | (1,258) | 1,109 | 681 | 3,307 |
Policyholders' dividends | 9 | 14 | 29 | 33 |
Total insurance benefits paid or provided | 4,969 | 6,987 | 18,507 | 20,662 |
Commissions | 3,493 | 3,944 | 10,712 | 11,567 |
Other general expenses | 4,669 | 4,502 | 15,071 | 15,438 |
Capitalization of deferred policy acquisition costs | (1,241) | (1,688) | (3,759) | (4,501) |
Amortization of deferred policy acquisition costs | 1,875 | 1,280 | 3,589 | 3,306 |
Amortization of cost of customer relationships acquired | 242 | 216 | 819 | 1,083 |
Total benefits and expenses | 14,007 | 15,241 | 44,939 | 47,555 |
Income (loss) before income tax expense | 927 | (352) | 258 | (3,146) |
Other Non-Insurance Enterprise [Member] | ||||
Revenues: | ||||
Premiums | 0 | 0 | 0 | 0 |
Net investment income | 390 | 249 | 1,309 | 944 |
Realized investment gains (losses), net | 8 | 9 | (3,061) | (32) |
Other income | 0 | 0 | 2 | 0 |
Total revenue | 398 | 258 | (1,750) | 912 |
Insurance benefits paid or provided: | ||||
Claims and surrenders | 0 | 0 | 0 | 0 |
Increase in future policy benefit reserves | 0 | 0 | 0 | 0 |
Policyholders' dividends | 0 | 0 | 0 | 0 |
Total insurance benefits paid or provided | 0 | 0 | 0 | 0 |
Commissions | 0 | 0 | 0 | 0 |
Other general expenses | 1,503 | 1,317 | 4,519 | 5,330 |
Capitalization of deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | 0 |
Amortization of cost of customer relationships acquired | 0 | 0 | 0 | 0 |
Total benefits and expenses | 1,503 | 1,317 | 4,519 | 5,330 |
Income (loss) before income tax expense | $ (1,105) | $ (1,059) | $ (6,269) | $ (4,418) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator [Abstract] | ||||||||
Net income (loss) | $ 2,046 | $ (4,565) | $ (3,802) | $ (7,109) | $ (2,558) | $ 37 | $ (6,321) | $ (9,630) |
Common Stock Class A [Member] | ||||||||
Numerator [Abstract] | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | 2,026 | (7,036) | (6,257) | (9,533) | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 2,026 | $ (7,036) | $ (6,257) | $ (9,533) | ||||
Denominator [Abstract] | ||||||||
Weighted Average Number of Shares Outstanding, Basic | 49,229 | 49,080 | 49,229 | 49,080 | ||||
Weighted Average Number of Shares Outstanding, Diluted | 49,327 | 49,127 | 49,327 | 49,127 | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.04 | $ (0.14) | $ (0.13) | $ (0.19) | ||||
Common Stock Class B [Member] | ||||||||
Numerator [Abstract] | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ 20 | $ (73) | $ (64) | $ (97) | ||||
Net Income (Loss) Available to Common Stockholders, Diluted | $ 20 | $ (73) | $ (64) | $ (97) | ||||
Denominator [Abstract] | ||||||||
Weighted Average Shares Outstanding, Basic and Diluted | 1,002 | 1,002 | 1,002 | 1,002 | ||||
Basic and diluted earnings (loss) per share (in dollars per share) | $ 0.02 | $ (0.07) | $ (0.06) | $ (0.10) |
Investments (Cash, Cash Equival
Investments (Cash, Cash Equivalents and Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturity securities | $ 1,369,648 | $ 1,231,039 | ||
Fixed maturity securities, percent | 90.10% | 88.70% | ||
Equity security | $ 15,845 | $ 15,068 | ||
Equity securities, percent | 1.00% | 1.10% | ||
Mortgage loans | $ 180 | $ 186 | ||
Mortgage loans, percent | 0.00% | 0.00% | ||
Policy loans | $ 81,964 | $ 80,825 | ||
Policy loans, percent | 5.40% | 5.80% | ||
Real estate and other long-term investments | $ 2,593 | $ 7,223 | ||
Real estate and other long-term investments, percent | 0.20% | 0.50% | ||
Short-term investments | $ 2,453 | $ 7,865 | ||
Short-term investments, percent | 0.20% | 0.60% | ||
Cash and cash equivalents | $ 47,147 | $ 45,492 | $ 68,753 | $ 46,064 |
Cash and cash equivalents, percent | 3.10% | 3.30% | ||
Total cash, cash equivalents and investments | $ 1,519,830 | $ 1,387,698 | ||
Total cash, cash equivalents and investments, percent | 100.00% | 100.00% |
Investments (Investment Gains a
Investments (Investment Gains and Losses) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 1,278,293 | $ 1,223,747 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 93,255 | 18,604 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,900 | 11,312 |
Debt Securities, Available-for-sale | 1,369,648 | 1,231,039 |
US Treasury Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 9,729 | 9,864 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,775 | 1,410 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 11,504 | 11,274 |
US Government Agencies Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 3,522 | 3,540 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1,124 | 740 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | 4,646 | 4,280 |
US States and Political Subdivisions Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 567,551 | 713,991 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 29,392 | 7,614 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 125 | 1,490 |
Debt Securities, Available-for-sale | 596,818 | 720,115 |
Corporate Debt Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 560,701 | 384,817 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 45,148 | 6,725 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1,741 | 9,746 |
Debt Securities, Available-for-sale | 604,108 | 381,796 |
Commercial Mortgage Backed Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 1,107 | 39,694 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 386 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 66 |
Debt Securities, Available-for-sale | 1,107 | 40,014 |
Residential Mortgage Backed Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 118,101 | 66,960 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 15,787 | 1,726 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 23 | 2 |
Debt Securities, Available-for-sale | 133,865 | 68,684 |
Asset-backed Securities [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 17,480 | 4,764 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 11 | 1 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 11 | 8 |
Debt Securities, Available-for-sale | 17,480 | 4,757 |
Foreign Government, Non-US [Member] | ||
Gross Unrealized Gains and Losses [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 102 | 117 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 18 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Debt Securities, Available-for-sale | $ 120 | $ 119 |
Investments (Equity Securities)
Investments (Equity Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity security | $ 15,845 | $ 15,068 |
Stock Mutual Funds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity security | 3,166 | 2,906 |
Bond Mutual Funds [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity security | 12,242 | 11,774 |
Common stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity security | 127 | 94 |
Non-redeemable Preferred Stock [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Equity security | $ 310 | $ 294 |
Investments (Other Than Tempora
Investments (Other Than Temporary Impairments) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Impairment loss, Real Estate, Portion Recognized in Earnings | $ 3,100,000 | ||||
Debt Securities [Member] | |||||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 600,000 | $ 0 | $ 800,000 |
Investments (Unrealized Losses)
Investments (Unrealized Losses) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 1,900,000 | $ 11,312,000 |
Other than temporary impairments Losses, Investments, Portion Not Recognized in Earnings | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 11,307,000 | 227,132,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 54,000 | $ 883,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 14 | 233 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 3,435,000 | $ 33,891,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 71,000 | $ 607,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 7 | 46 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 14,742,000 | $ 261,023,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 125,000 | $ 1,490,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 21 | 279 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 53,407,000 | $ 230,030,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,331,000 | $ 8,770,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 51 | 191 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 6,310,000 | $ 9,936,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 410,000 | $ 976,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 4 | 8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 59,717,000 | $ 239,966,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 1,741,000 | $ 9,746,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 55 | 199 |
Commercial Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 882,000 | $ 14,992,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 0 | $ 66,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 1 | 11 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 882,000 | $ 14,992,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 0 | $ 66,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 11 |
Residential Mortgage Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 1,701,000 | $ 18,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 21,000 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 9 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 93,000 | $ 98,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 2,000 | $ 2,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 3 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 1,794,000 | $ 116,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 23,000 | $ 2,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 12 | 7 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 7,736,000 | $ 3,747,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 11,000 | $ 8,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 10 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 0 | $ 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 7,736,000 | $ 3,747,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 11,000 | $ 8,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 10 | 4 |
Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 75,033,000 | $ 475,919,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 1,417,000 | $ 9,727,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 85 | 442 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | $ 9,838,000 | $ 43,925,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 483,000 | $ 1,585,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 14 | 58 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | $ 84,871,000 | $ 519,844,000 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 1,900,000 | $ 11,312,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 99 | 500 |
Investments (Maturity Distribut
Investments (Maturity Distribution) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 111,775 | |
Available-for-sale Securities, Debt Maturities, Due After One Year Through Five Years, Amortized Cost Basis | 118,968 | |
Available-for-sale Securities, Debt Maturities, Due After Five Years Through Ten Years, Amortized Cost Basis | 198,215 | |
Available-for-sale Securities, Debt Maturities, Due After Ten Years, Amortized Cost Basis | 849,335 | |
Debt Securities, Available-for-sale, Amortized Cost | 1,278,293 | $ 1,223,747 |
Debt Securities, Available-for-sale, Fair Value | ||
Due in one year or less | 112,511 | |
Available-for-sale Securities, Debt Maturities, Due After One Year Through Five Years, Fair Value | 124,385 | |
Available-for-sale Securities, Debt Maturities, Due After Five Years Through Ten Years, Fair Value | 212,237 | |
Available-for-sale Securities, Debt Maturities, Due After Ten Years, Fair Value | 920,515 | |
Debt Securities, Available-for-sale | $ 1,369,648 | $ 1,231,039 |
Investments (Realized Gains (Lo
Investments (Realized Gains (Losses)) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 72 | $ (498) | $ 3,164 | $ (1,251) |
Proceeds from Sale of Debt Securities, Available-for-sale | $ 39,708 | $ 1,084 | ||
Sale of bonds, number of available-for-sale securities sold | 23 | 1 | 41 | 1 |
Number of Equity Securities Sold | 0 | 0 | ||
Equity Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized investment gains (losses), net | $ 18 | $ 200 | $ 800 | $ (200) |
Debt Securities [Member] | ||||
Gain (Loss) on Securities [Line Items] | ||||
Proceeds from Sale of Debt Securities, Available-for-sale | 29,294 | 1,084 | 39,708 | 1,084 |
Available-for-sale Securities, Gross Realized Gains | 125 | 54 | 234 | 54 |
Available-for-sale Securities, Gross Realized Losses | $ 22 | $ 0 | $ 387 | $ 0 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments Carried at Fair Value (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of Private Placement Mortgage Backed Debt Securities in Level 3 | 0 | |
Equity security | $ 15,845,000 | $ 15,068,000 |
Marketable Securities | $ 1,385,493,000 | 1,246,107,000 |
Percent of Level 2 Debt Maturity to Total Reported Fair Value of Financial Assets | 98.00% | |
Debt Instrument, Change in Valuation Technique [true false] | 0 | |
Number of Third Party Pricing Changes | 0 | |
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Transfers Into Level 3 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3 | 0 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 27,401,000 | 26,389,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 1,358,092,000 | 1,219,718,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable Securities | 0 | 0 |
US Treasury and Government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 16,150,000 | 15,554,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11,504,000 | 11,274,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 4,646,000 | 4,280,000 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 596,818,000 | 720,115,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 596,818,000 | 720,115,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 604,108,000 | 381,796,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 52,000 | 47,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 604,056,000 | 381,749,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,107,000 | 40,014,000 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,107,000 | 40,014,000 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 133,865,000 | 68,684,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 133,865,000 | 68,684,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17,480,000 | 4,757,000 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 17,480,000 | 4,757,000 |
Asset-backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Foreign Government, Non-US [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 120,000 | 119,000 |
Foreign Government, Non-US [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Foreign Government, Non-US [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 120,000 | 119,000 |
Foreign Government, Non-US [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,369,648,000 | 1,231,039,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 11,556,000 | 11,321,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 1,358,092,000 | 1,219,718,000 |
Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 0 | 0 |
Stock Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 3,166,000 | 2,906,000 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 3,166,000 | 2,906,000 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Stock Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 12,242,000 | 11,774,000 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 12,242,000 | 11,774,000 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Bond Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Common stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 127,000 | 94,000 |
Common stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 127,000 | 94,000 |
Common stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Common stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Non-redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 310,000 | 294,000 |
Non-redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 310,000 | 294,000 |
Non-redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Non-redeemable Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 15,845,000 | 15,068,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 15,845,000 | 15,068,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity security | $ 0 | $ 0 |
Fair Value Measurements Finan_2
Fair Value Measurements Financial Instruments not Carried at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgage loans | $ 180 | $ 186 | ||
Policy loans | 81,964 | 80,825 | ||
Short-term Investments | 2,453 | 7,865 | ||
Cash and cash equivalents, at carrying value | 47,147 | 45,492 | $ 68,753 | $ 46,064 |
Liability for future policy benefits individual and group annuities | $ 76,427 | $ 76,377 | ||
Mortgage loans on real estate, interest rate | 6.60% | 6.60% | ||
Mortgage loan maturity lower end range | 18 years | |||
Mortgage loan maturity higher end range | 23 years | |||
Mortgage loans interest rate used to estimate fair value | 6.25% | |||
Insurance policy loans interest rate | 7.70% | 7.70% | ||
Fair value minimum interest rate of investment contract | 1.84% | |||
Fair value maximum rate of investment contract | 2.96% | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgage loans | $ 180 | $ 186 | ||
Policy loans | 81,964 | 80,825 | ||
Short-term Investments | 2,453 | 7,865 | ||
Cash and cash equivalents, at carrying value | 47,147 | 45,492 | ||
Liability for future policy benefits individual and group annuities | 57,306 | 56,658 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Mortgage loans | 219 | 222 | ||
Policy loans | 81,964 | 80,825 | ||
Short-term Investments | 2,453 | 7,865 | ||
Cash and cash equivalents, fair value disclosure | 47,147 | 45,492 | ||
Liability for future policy benefits individual and group annuities | $ 62,653 | $ 55,977 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jul. 01, 2018 | Sep. 30, 2019 |
Loss Contingencies [Line Items] | ||
Novation Date | Jul. 1, 2018 | |
Total costs to remediate IRC Section 7702 issue | $ 9.9 | |
Toll charges and fees to remediate IRC Section 7702 issue | 9 | |
Cost of claim and reserve liabilities to remediate IRC Section 7702 issue | $ 0.9 | |
Other Commitments, Description | On May 17, 2017, we submitted an offer to enter into Closing Agreements with the IRS covering certain CICA and CNLIC domestic life insurance policies (the "Closing Agreements"), which was accepted by the IRS on June 7, 2019. Pursuant to the Closing Agreements, CICA and CNLIC agreed to pay the IRS $123,779 and $4,118, respectively, by August 6, 2019, and follow the corrective steps for the policies outlined in the Closing Agreements by September 5, 2019. These payments were made to the IRS on July 12, 2019. | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | $ 6 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Cost Range to Remediate IRC Section 7702 Issue | 52.5 | |
IRC Section 7702 remediation costs [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | 0.2 | |
IRC Section 7702 remediation costs [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Estimate of Possible Loss | $ 0.9 |
Income Taxes (Rate Reconciliati
Income Taxes (Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 448 | $ 1,168 | $ 172 | $ 846 |
Federal Statutory Income Tax Rate | 21.00% | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ (521) | $ (7,967) | $ (632) | $ (7,967) |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (24.40%) | (143.20%) | (77.40%) | (197.70%) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ (1,796) | $ (743) | $ 1,468 | $ 231 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (84.20%) | (13.40%) | 179.70% | 5.70% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ 1,923 | $ 0 | $ 1,923 | $ 0 |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 90.20% | 0.00% | 235.40% | 0.00% |
Unrecognized Tax Benefits, Income Tax Penalties Expense | $ (2,284) | $ 1,024 | $ 132 | $ 2,688 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Domestic, Percent | (107.10%) | 18.40% | 16.20% | 66.70% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Amount | $ (27) | $ 469 | $ (27) | $ (735) |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | (1.30%) | 8.40% | (3.30%) | (18.20%) |
Subpart F Income | $ 2,253 | $ 18,657 | $ 3,848 | $ 18,657 |
Unrecognized Tax Benefits | $ 52,100 | $ 52,100 | ||
Subpart F Income, Percent | 105.70% | 335.40% | 471.00% | 463.00% |
Effective Income Tax Rate Reconciliation, Other Reconciling Items, Amount | $ 90 | $ 63 | $ 254 | $ (60) |
Effective Income Tax Rate Reconciliation,Other Reconciling Items, Percent | 4.20% | 1.10% | 31.10% | (1.50%) |
Income tax expense (benefit) | $ 86 | $ 12,671 | $ 7,138 | $ 13,660 |
Effective Income Tax Rate | 4.10% | 227.70% | 873.70% | 339.00% |
Income Taxes (Current) (Details
Income Taxes (Current) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Current Income Tax Expense (Benefit) | $ 6,580 | $ (45,669) | ||
Deferred Income Tax Expense (Benefit) | 558 | 59,329 | ||
Income tax expense (benefit) | $ 86 | $ 12,671 | $ 7,138 | $ 13,660 |
Income Taxes (Deferred Federal
Income Taxes (Deferred Federal Income Taxes) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Future policy benefit reserves | $ 2,359 | $ 2,795 |
Net operating and capital loss carryforwards | 188 | 191 |
Accrued expenses | 6 | 30 |
Investments | 1,650 | 1,841 |
Deferred intercompany loss | 4,456 | 5,190 |
Other | 801 | 309 |
Total gross deferred tax assets | 9,460 | 10,356 |
Deferred policy acquisition costs, cost of customer relations acquired and intangible assets | (8,479) | (8,745) |
Unrealized gains on investments available-for-sale | (7,919) | (1,968) |
Tax reserve transition liability | (4,671) | (4,864) |
Other | (472) | (488) |
Total gross deferred tax liabilities | (21,541) | (16,065) |
Net deferred tax liability | $ (12,081) | $ (5,709) |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Operating Lease, Liability | $ 1,464 | $ 1,464 | $ 1,800 |
Lessee, Operating Lease, Discount Rate | 4.76% | ||
Operating Lease, Right-of-Use Asset | $ 1,800 | ||
Weighted Average Lease Term | 1 year 5 months 1 day | 1 year 5 months 1 day | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 340 | $ 340 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 968 | 968 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 174 | 174 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 32 | 32 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 0 | 0 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 0 | 0 | |
Lessee, Operating Lease, Liability, Payments, Due | 1,514 | 1,514 | |
Operating Lease, Interest Expense | (50) | ||
Lessee, Operating Lease, Lease Not yet Commenced, Assumption and Judgement, Value of Underlying Asset, Amount | 13,500 | 13,500 | |
Operating Lease, Expense | $ 200 | $ 1,300 | |
Lessor, Operating Lease, Lease Not yet Commenced, Description | The long-term lease will commence after construction of the building is complete and has a 121-month term, and therefore is not included in the tables above. Payments under the new long-term lease agreement will average approximately $112,340 per month. |
Related Party Transactions Rela
Related Party Transactions Related Party (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Related Party Transactions [Abstract] | |
Capital contribution to subsidiary | $ 0.5 |
Uncategorized Items - cia-20190
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 30,494,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,162,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (11,011,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (4,162,000) |
Common Class B [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,184,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Common Class A [Member] | Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 259,383,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |