Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-8052 | |
Entity Registrant Name | GLOBE LIFE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 63-0780404 | |
Entity Address, Address Line One | 3700 South Stonebridge Drive | |
Entity Address, City or Town | McKinney | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75070 | |
City Area Code | 972 | |
Local Phone Number | 569-4000 | |
Entity Information, Former Legal or Registered Name | TORCHMARK CORP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GL | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 109,101,980 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000320335 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2019—$15,984,272; 2018—$15,753,471) | $ 17,934,274 | $ 16,297,932 |
Policy loans | 560,469 | 550,066 |
Other long-term investments (includes: 2019—$165,426; 2018—$108,241 under the fair value option) | 289,147 | 207,258 |
Short-term investments | 74,116 | 63,288 |
Total investments | 18,858,006 | 17,118,544 |
Cash | 89,319 | 121,026 |
Accrued investment income | 247,383 | 243,003 |
Other receivables | 425,372 | 415,157 |
Deferred acquisition costs | 4,232,717 | 4,137,925 |
Goodwill | 441,591 | 441,591 |
Other assets | 561,057 | 549,899 |
Assets related to discontinued operations | 0 | 68,577 |
Total assets | 24,855,445 | 23,095,722 |
Liabilities: | ||
Future policy benefits | 14,218,030 | 13,953,826 |
Unearned and advance premium | 66,892 | 61,208 |
Policy claims and other benefits payable | 351,347 | 350,826 |
Other policyholders' funds | 95,753 | 97,459 |
Total policy liabilities | 14,732,022 | 14,463,319 |
Current and deferred income taxes | 1,351,495 | 1,047,737 |
Short-term debt | 257,453 | 307,848 |
Long-term debt (estimated fair value: 2019—$1,446,082; 2018—$1,384,455) | 1,353,395 | 1,357,185 |
Other liabilities | 460,682 | 453,270 |
Liabilities related to discontinued operations | 0 | 51,186 |
Total liabilities | 18,155,047 | 17,680,545 |
Commitments and Contingencies (Note 5) | ||
Shareholders' equity: | ||
Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2019 and 2018 | 0 | 0 |
Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2019—121,218,183 issued; 2018— 121,218,183 issued) | 121,218 | 121,218 |
Additional paid-in-capital | 526,518 | 524,414 |
Accumulated other comprehensive income (loss) | 1,439,250 | 319,475 |
Retained earnings | 5,514,517 | 5,213,468 |
Treasury stock, at cost: (2019—11,995,233 shares; 2018—10,525,147 shares) | (901,105) | (763,398) |
Total shareholders' equity | 6,700,398 | 5,415,177 |
Total liabilities and shareholders' equity | $ 24,855,445 | $ 23,095,722 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturities, available for sale, amortized cost | $ 15,984,272 | $ 15,753,471 |
Other long-term investments under fair value option | 289,147 | 207,258 |
Long-term debt, fair value | $ 1,446,082 | $ 1,384,455 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 320,000,000 | 320,000,000 |
Common stock, shares issued | 121,218,183 | 121,218,183 |
Common stock, shares outstanding | 121,218,183 | 121,218,183 |
Common stock, shares held in treasury | 11,995,233 | 10,525,147 |
Partnership Interest - Fair Value Option | Investment in limited partnerships | ||
Other long-term investments under fair value option | $ 165,426 | $ 108,241 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Premium | $ 897,484 | $ 853,979 | $ 1,788,457 | $ 1,704,085 |
Net investment income | 227,425 | 218,568 | 454,098 | 436,652 |
Realized gains (losses) | 5,154 | 11,813 | 6,483 | 13,764 |
Other income | 398 | 416 | 639 | 711 |
Total revenue | 1,130,461 | 1,084,776 | 2,249,677 | 2,155,212 |
Benefits and expenses: | ||||
Life policyholder benefits | 410,961 | 399,334 | 820,653 | 799,915 |
Health policyholder benefits | 170,511 | 160,461 | 340,528 | 321,080 |
Other policyholder benefits | 7,890 | 8,582 | 15,938 | 17,271 |
Total policyholder benefits | 589,362 | 568,377 | 1,177,119 | 1,138,266 |
Amortization of deferred acquisition costs | 138,165 | 129,077 | 273,987 | 258,697 |
Commissions, premium taxes, and non-deferred acquisition costs | 73,698 | 69,427 | 147,163 | 139,066 |
Other operating expense | 79,044 | 68,620 | 151,837 | 135,444 |
Interest expense | 21,432 | 22,411 | 42,710 | 44,033 |
Total benefits and expenses | 901,701 | 857,912 | 1,792,816 | 1,715,506 |
Income before income taxes | 228,760 | 226,864 | 456,861 | 439,706 |
Income tax benefit (expense) | (42,151) | (42,471) | (84,858) | (81,602) |
Income from continuing operations | 186,609 | 184,393 | 372,003 | 358,104 |
Income (loss) from discontinued operations, net of tax | (43) | 32 | (92) | (79) |
Net income | $ 186,566 | $ 184,425 | $ 371,911 | $ 358,025 |
Basic net income (loss) per common share: | ||||
Continuing operations (in dollars per share) | $ 1.70 | $ 1.63 | $ 3.38 | $ 3.15 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Total basic net income per common share (in dollars per share) | 1.70 | 1.63 | 3.38 | 3.15 |
Diluted net income (loss) per common share: | ||||
Continuing operations (in dollars per share) | 1.67 | 1.59 | 3.32 | 3.08 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Total diluted net income per common share (in dollars per share) | $ 1.67 | $ 1.59 | $ 3.32 | $ 3.08 |
Life premium | ||||
Revenue: | ||||
Premium | $ 631,201 | $ 602,534 | $ 1,255,490 | $ 1,200,837 |
Other premium | ||||
Revenue: | ||||
Premium | 266,282 | 251,440 | 532,966 | 503,238 |
Other premium | ||||
Revenue: | ||||
Premium | $ 1 | $ 5 | $ 1 | $ 10 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 186,566 | $ 184,425 | $ 371,911 | $ 358,025 |
Unrealized gains (losses) on fixed maturities: | ||||
Unrealized gains (losses) on fixed maturities | 718,236 | (425,805) | 1,413,175 | (1,041,487) |
Less applicable tax (expense) benefit | (150,829) | 89,423 | (296,765) | 218,712 |
Unrealized gains (losses) on investments, net of tax | 567,407 | (336,382) | 1,116,410 | (822,775) |
Unrealized gains (losses) attributable to deferred acquisition costs | 170 | 2,041 | (3,029) | 2,491 |
Less applicable tax (expense) benefit | (35) | (429) | 636 | (523) |
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax | 135 | 1,612 | (2,393) | 1,968 |
Foreign exchange translation adjustments, other than securities | (38) | (6,217) | 3,051 | (7,516) |
Less applicable tax (expense) benefit | 7 | 1,303 | (640) | 1,579 |
Foreign exchange translation adjustments, other than securities, net of tax | (31) | (4,914) | 2,411 | (5,937) |
Pension: | ||||
Amortization of pension costs | 2,118 | 3,778 | 4,238 | 7,556 |
Pension adjustments | 2,118 | 3,778 | 4,238 | 7,556 |
Less applicable tax (expense) benefit | (446) | (794) | (891) | (1,587) |
Pension adjustments, net of tax | 1,672 | 2,984 | 3,347 | 5,969 |
Other comprehensive income (loss) | 569,183 | (336,700) | 1,119,775 | (820,775) |
Comprehensive income (loss) | 755,749 | (152,275) | 1,491,686 | (462,750) |
Securities | ||||
Unrealized gains (losses) on fixed maturities: | ||||
Unrealized holding gains (losses) arising during period | 714,862 | (417,616) | 1,408,344 | (1,029,164) |
Reclassifications adjustments included in net income | (843) | (8,561) | (3,287) | (9,257) |
Foreign exchange adjustment on securities recorded at fair value | 626 | (679) | 484 | (1,264) |
Unrealized gains (losses) on fixed maturities | 714,645 | (426,856) | 1,405,541 | (1,039,685) |
Other | ||||
Unrealized gains (losses) on fixed maturities: | ||||
Unrealized holding gains (losses) arising during period | $ 3,591 | $ 1,051 | $ 7,634 | $ (1,802) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | |
Beginning balance at Dec. 31, 2017 | $ 6,231,421 | $ 0 | $ 124,218 | $ 508,476 | $ 1,424,274 | $ 4,806,208 | $ (631,755) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | (310,475) | (484,075) | 173,600 | |||||
Common dividends declared | (18,216) | (18,216) | ||||||
Acquisition of treasury stock | (109,954) | (109,954) | ||||||
Stock-based compensation | 9,060 | 465 | (1,803) | 10,398 | ||||
Exercise of stock options | 13,569 | (9,077) | 22,646 | |||||
Ending balance at Mar. 31, 2018 | 5,820,301 | 0 | 124,218 | 508,941 | 940,199 | 4,955,608 | (708,665) | |
Beginning balance at Dec. 31, 2017 | 6,231,421 | 0 | 124,218 | 508,476 | 1,424,274 | 4,806,208 | (631,755) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | (462,750) | |||||||
Ending balance at Jun. 30, 2018 | 5,571,609 | 0 | 124,218 | 517,077 | 603,499 | 5,115,071 | (788,256) | |
Beginning balance at Mar. 31, 2018 | 5,820,301 | 0 | 124,218 | 508,941 | 940,199 | 4,955,608 | (708,665) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | (152,275) | (336,700) | 184,425 | |||||
Common dividends declared | (18,062) | (18,062) | ||||||
Acquisition of treasury stock | (96,635) | (96,635) | ||||||
Stock-based compensation | 10,497 | 8,136 | 0 | 2,361 | ||||
Exercise of stock options | 7,783 | (6,900) | 14,683 | |||||
Ending balance at Jun. 30, 2018 | 5,571,609 | 0 | 124,218 | 517,077 | 603,499 | 5,115,071 | (788,256) | |
Beginning balance at Dec. 31, 2018 | 5,415,177 | 0 | 121,218 | 524,414 | 319,475 | 5,213,468 | (763,398) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 735,937 | 550,592 | 185,345 | |||||
Common dividends declared | (18,943) | (18,943) | ||||||
Acquisition of treasury stock | (110,896) | (110,896) | ||||||
Stock-based compensation | 10,559 | (5,885) | (6,817) | 23,261 | ||||
Exercise of stock options | 12,089 | (7,736) | 19,825 | |||||
Ending balance at Mar. 31, 2019 | 6,043,426 | 0 | 121,218 | 518,529 | 870,067 | 5,364,820 | (831,208) | |
Beginning balance at Dec. 31, 2018 | 5,415,177 | 0 | 121,218 | 524,414 | 319,475 | 5,213,468 | (763,398) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 1,491,686 | |||||||
Ending balance at Jun. 30, 2019 | 6,700,398 | 0 | 121,218 | 526,518 | 1,439,250 | 5,514,517 | (901,105) | |
Beginning balance at Mar. 31, 2019 | 6,043,426 | 0 | 121,218 | 518,529 | 870,067 | 5,364,820 | (831,208) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Comprehensive income (loss) | 755,749 | 569,183 | 186,566 | |||||
Common dividends declared | (18,838) | (18,838) | ||||||
Acquisition of treasury stock | (119,201) | (119,201) | ||||||
Stock-based compensation | 11,256 | 7,989 | 0 | 3,267 | ||||
Exercise of stock options | 27,901 | (18,136) | 46,037 | |||||
Ending balance at Jun. 30, 2019 | 6,700,398 | $ 0 | $ 121,218 | $ 526,518 | $ 1,439,250 | 5,514,517 | $ (901,105) | |
Increase (Decrease) in Stockholders' Equity | ||||||||
Adoption of ASU 2016-01 | [1] | $ 105 | $ 105 | |||||
[1] | See further discussion in Note 2—New Accounting Standards . |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common dividends declared, per share (in dollars per share) | $ 0.1725 | $ 0.1725 | $ 0.1600 | $ 0.1600 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash provided from (used for) operating activities: | ||
Cash provided from (used for) operating activities | $ 686,637 | $ 616,520 |
Cash provided from (used for) investing activities: | ||
Fixed maturities available for sale—sold | 34,997 | 0 |
Fixed maturities available for sale—matured or other redemptions | 440,796 | 179,793 |
Other long-term investments | 0 | 23 |
Total investments sold or matured | 475,793 | 179,816 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (703,406) | (540,442) |
Other long term investments | (80,979) | (64,444) |
Total investments acquired | (784,385) | (604,886) |
Net increase (decrease) in policy loans | (10,403) | (8,279) |
Net increase (decrease) in short-term investments | (1,806) | 58,527 |
Additions to properties | (21,654) | (18,735) |
Dispositions of properties | 15 | 17 |
Investment in low-income housing interests | (13,916) | (15,701) |
Cash provided from (used for) investing activities | (356,356) | (409,241) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 39,598 | 21,352 |
Cash dividends paid to shareholders | (36,652) | (35,406) |
Repayment of debt | (3,125) | (21,875) |
Net borrowing (repayment) of commercial paper | (51,645) | 50,213 |
Acquisition of treasury stock | (230,097) | (206,589) |
Net receipts (payments) from deposit product | (74,217) | (58,662) |
Cash provided from (used for) financing activities | (356,138) | (250,967) |
Effect of foreign exchange rate changes on cash | (5,850) | 7,355 |
Net increase (decrease) in cash | (31,707) | (36,333) |
Cash at beginning of year | 121,026 | 118,563 |
Cash at end of period | $ 89,319 | $ 82,230 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1—Significant Accounting Policies Business : Effective August 8, 2019, Torchmark Corporation changed its corporate name to Globe Life Inc. The New York Stock Exchange (NYSE) ticker will be changed to "GL" on August 9, 2019. The name change is part of a brand alignment strategy which will enhance the Company's ability to build name recognition with potential customers and agent recruits through the use of a single brand. The underwriting companies owned by Globe Life Inc. (the "Parent Company") will continue to exist as legal entities, but over a period of time will go to market under the Globe Life name to leverage branding initiatives implemented at Globe Life And Accident Insurance Company in recent years. "Globe Life" and the "Company" refer to Globe Life Inc. , an insurance holding company incorporated in Delaware in 1979, and its subsidiaries and affiliates. Its primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company ("American Income"), Liberty National Life Insurance Company ("Liberty National"), Family Heritage Life Insurance Company of America ("Family Heritage"), and United American Insurance Company ("United American"). Globe Life provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The Company is organized into four Basis of Presentation: The accompanying condensed consolidated financial statements of Globe Life Inc. have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at June 30, 2019 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended June 30, 2019 and 2018 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on March 1, 2019 . |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Note 2—New Accounting Standards Accounting Pronouncements Adopted in the Current Year Standard Description Effective date Effect on the consolidated financial statements ASU No. 2016-02/2018-11 , Leases (Topic 842), with clarification guidance issued in July 2018. The standard requires lessees to record a right-of-use asset and corresponding lease liability on the balance sheet for all operating leases that do not qualify for the practical expedients allowed for in this standard. Additional qualitative and quantitative disclosures are required. This standard became effective for the Company beginning January 1, 2019. The Company adopted the optional transition method allowed for under ASU 2018-11 by not restating comparative periods and recognizing an immaterial cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company does not have any significant lessor contracts. The adoption did not have a material impact on the consolidated financial statements. ASU No. 2017-08 , Receivables—Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities This standard was issued to shorten the amortization period for certain callable debt securities held at a premium. The standard requires the premium to be amortized to the earliest call date. This standard became effective for the Company beginning January 1, 2019. This adoption did not have a material impact on the consolidated financial statements as of June 30, 2019. Accounting Pronouncements Yet to be Adopted Standard Description Effective date Effect on the consolidated financial statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April and May 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments, such as assets recorded at amortized cost, as well as to change the loss impairment methodology for available-for-sale debt securities by use of an allowance rather than a direct write-down. This standard will become effective on January 1, 2020 with a modified retrospective transition and an opening balance sheet adjustment to retained earnings on January 1, 2020. The applicable section of the standard related to debt securities requires a prospective transition. We have determined relevant financial assets within scope of the standard. Based on our current analysis, we are not anticipating the adoption of the guidance to have a material impact to the consolidated financial statements. ASU No. 2018-12 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2021. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this guidance will have on the consolidated financial statements as well as assessing controls and accounting policies, key assumptions/data inputs, system solutions, and actuarial modeling. ASU No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The amendment modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The revised standard is effective beginning January 1, 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. Accounting Pronouncements Yet to be Adopted (continued) Standard Description Effective date Effect on the consolidated financial statements ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. ASU No. 2018-15 , Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract The standard was issued to now allow the capitalization of implementation costs incurred in a hosting arrangement that is a service contract to be similar to the treatment of developed or obtained internal-use software. The standard is effective beginning January 1, 2020, and the Company plans to apply the standards on a prospective basis. Early adoption of the amendments is also permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income Components of Accumulated Other Comprehensive Income : An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three and six month periods ended June 30, 2019 and 2018 : Three Months Ended June 30, 2018 Available Deferred Foreign Pension Total Balance at April 1, 2018 $ 1,082,896 $ (8,191 ) $ 15,279 $ (149,785 ) $ 940,199 Other comprehensive income (loss) before reclassifications, net of tax (329,619 ) 1,612 (4,914 ) — (332,921 ) Reclassifications, net of tax (6,763 ) — — 2,984 (3,779 ) Other comprehensive income (loss) (336,382 ) 1,612 (4,914 ) 2,984 (336,700 ) Balance at June 30, 2018 $ 746,514 $ (6,579 ) $ 10,365 $ (146,801 ) $ 603,499 Three Months Ended June 30, 2019 Available Deferred Foreign Pension Total Balance at April 1, 2019 $ 984,701 $ (6,691 ) $ 8,937 $ (116,880 ) $ 870,067 Other comprehensive income (loss) before reclassifications, net of tax 568,073 135 (31 ) — 568,177 Reclassifications, net of tax (666 ) — — 1,672 1,006 Other comprehensive income (loss) 567,407 135 (31 ) 1,672 569,183 Balance at June 30, 2019 $ 1,552,108 $ (6,556 ) $ 8,906 $ (115,208 ) $ 1,439,250 Six Months Ended June 30, 2018 Available Deferred Foreign Pension Total Balance at January 1, 2018 $ 1,569,289 $ (8,547 ) $ 16,302 $ (152,770 ) $ 1,424,274 Other comprehensive income (loss) before reclassifications, net of tax (815,462 ) 1,968 (5,937 ) — (819,431 ) Reclassifications, net of tax (7,313 ) — — 5,969 (1,344 ) Other comprehensive income (loss) (822,775 ) 1,968 (5,937 ) 5,969 (820,775 ) Balance at June 30, 2018 $ 746,514 $ (6,579 ) $ 10,365 $ (146,801 ) $ 603,499 Six Months Ended June 30, 2019 Available Deferred Foreign Pension Total Balance at January 1, 2019 $ 435,698 $ (4,163 ) $ 6,495 $ (118,555 ) $ 319,475 Other comprehensive income (loss) before reclassifications, net of tax 1,119,007 (2,393 ) 2,411 — 1,119,025 Reclassifications, net of tax (2,597 ) — — 3,347 750 Other comprehensive income (loss) 1,116,410 (2,393 ) 2,411 3,347 1,119,775 Balance at June 30, 2019 $ 1,552,108 $ (6,556 ) $ 8,906 $ (115,208 ) $ 1,439,250 Reclassification adjustments : Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three and six month periods ended June 30, 2019 and 2018 . Three Months Ended Six Months Ended June 30, Affected line items in the Statement of Operations Component Line Item 2019 2018 2019 2018 Unrealized investment gains (losses) on available for sale assets: Realized gains (losses) $ (2,237 ) $ (9,431 ) $ (5,907 ) $ (10,817 ) Realized investment gains (losses) Amortization of (discount) premium 1,394 870 2,620 1,560 Net investment income Total before tax (843 ) (8,561 ) (3,287 ) (9,257 ) Tax 177 1,798 690 1,944 Income taxes Total after-tax (666 ) (6,763 ) (2,597 ) (7,313 ) Pension adjustments: Amortization of prior service cost 158 119 316 238 Other operating expense Amortization of actuarial (gain) loss 1,960 3,659 3,922 7,318 Other operating expense Total before tax 2,118 3,778 4,238 7,556 Tax (446 ) (794 ) (891 ) (1,587 ) Income taxes Total after-tax 1,672 2,984 3,347 5,969 Total reclassification (after-tax) $ 1,006 $ (3,779 ) $ 750 $ (1,344 ) |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4—Investments Portfolio Composition : Summaries of fixed maturities available for sale by cost or amortized cost and estimated fair value at June 30, 2019 and December 31, 2018 are as follows. Redeemable preferred stock is included within the corporates by sector. At June 30, 2019 Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 393,915 $ 38,353 $ (420 ) $ 431,848 3 States, municipalities, and political subdivisions 1,365,345 139,098 (178 ) 1,504,265 8 Foreign governments 18,732 2,319 — 21,051 — Corporates, by sector: Financial 3,980,362 557,883 (30,471 ) 4,507,774 25 Utilities 1,958,277 359,882 (6,211 ) 2,311,948 13 Energy 1,632,744 233,498 (28,863 ) 1,837,379 10 Other corporate sectors 6,432,457 694,873 (36,394 ) 7,090,936 40 Total corporates 14,003,840 1,846,136 (101,939 ) 15,748,037 88 Collateralized debt obligations 57,172 28,403 (6,497 ) 79,078 — Other asset-backed securities 145,268 5,023 (296 ) 149,995 1 Total fixed maturities $ 15,984,272 $ 2,059,332 $ (109,330 ) $ 17,934,274 100 (1) Amount reported in the balance sheet. (2) At fair value. At December 31, 2018 Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 390,351 $ 5,104 $ (2,787 ) $ 392,668 2 States, municipalities, and political subdivisions 1,354,810 83,600 (1,750 ) 1,436,660 9 Foreign governments 19,006 1,810 — 20,816 — Corporates, by sector: Financial 3,759,768 262,875 (87,515 ) 3,935,128 24 Utilities 1,989,506 217,846 (24,399 ) 2,182,953 13 Energy 1,652,700 93,880 (62,371 ) 1,684,209 10 Other corporate sectors 6,382,707 283,524 (242,509 ) 6,423,722 40 Total corporates 13,784,681 858,125 (416,794 ) 14,226,012 87 Collateralized debt obligations 57,769 22,014 (6,414 ) 73,369 1 Other asset-backed securities 146,854 2,187 (634 ) 148,407 1 Total fixed maturities $ 15,753,471 $ 972,840 $ (428,379 ) $ 16,297,932 100 (1) Amount reported in the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at June 30, 2019 is shown below on an amortized cost basis and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At June 30, 2019 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 151,815 $ 153,027 Due after one year through five years 631,205 674,283 Due after five years through ten years 1,646,091 1,867,864 Due after ten years through twenty years 5,211,263 6,086,465 Due after twenty years 8,140,905 8,922,971 Mortgage-backed and asset-backed securities 202,993 229,664 $ 15,984,272 $ 17,934,274 Analysis of investment operations: Net investment income for the three and six month periods ended June 30, 2019 and 2018 is summarized as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Fixed maturities available for sale $ 215,867 $ 209,771 $ 431,630 $ 418,313 Policy loans 10,821 10,201 21,457 20,399 Other long-term investments 3,991 2,120 7,379 4,974 Short-term investments 763 433 1,582 824 231,442 222,525 462,048 444,510 Less investment expense (4,017 ) (3,957 ) (7,950 ) (7,858 ) Net investment income $ 227,425 $ 218,568 $ 454,098 $ 436,652 Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Fixed maturities available for sale: Proceeds from sales (1) $ — $ — $ 34,997 $ — Gross realized gains — — 46 — Gross realized losses — — (3,027 ) — (1) There were no unsettled sales in the periods ending June 30, 2019 and 2018. An analysis of realized gains (losses) is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Realized investment gains (losses): Fixed maturities available for sale: Sales and other $ 2,237 $ 9,431 $ 5,907 $ 10,817 Fair value option—change in fair value 2,869 2,301 684 2,861 Other investments 48 81 (108 ) 86 Realized gains (losses) from investments 5,154 11,813 6,483 13,764 Applicable tax (1,082 ) (2,480 ) (1,361 ) (2,890 ) Realized gains (losses), net of tax $ 4,072 $ 9,333 $ 5,122 $ 10,874 Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at June 30, 2019 and December 31, 2018 : Fair Value Measurement at June 30, 2019 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 431,848 $ — $ 431,848 States, municipalities, and political subdivisions — 1,504,265 — 1,504,265 Foreign governments — 21,051 — 21,051 Corporates, by sector: Financial — 4,462,768 45,006 4,507,774 Utilities 9,472 2,149,087 153,389 2,311,948 Energy — 1,796,186 41,193 1,837,379 Other corporate sectors — 6,760,353 330,583 7,090,936 Total corporates 9,472 15,168,394 570,171 15,748,037 Collateralized debt obligations — — 79,078 79,078 Other asset-backed securities — 136,792 13,203 149,995 Total fixed maturities $ 9,472 $ 17,262,350 $ 662,452 $ 17,934,274 Percentage of total — % 96 % 4 % 100 % Fair Value Measurement at December 31, 2018 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 392,668 $ — $ 392,668 States, municipalities, and political subdivisions — 1,436,660 — 1,436,660 Foreign governments — 20,816 — 20,816 Corporates, by sector: Financial — 3,891,728 43,400 3,935,128 Utilities — 2,032,127 150,826 2,182,953 Energy — 1,645,077 39,132 1,684,209 Other corporate sectors — 6,103,609 320,113 6,423,722 Total corporates — 13,672,541 553,471 14,226,012 Collateralized debt obligations — — 73,369 73,369 Other asset-backed securities — 135,425 12,982 148,407 Total fixed maturities $ — $ 15,658,110 $ 639,822 $ 16,297,932 Percentage of total — % 96 % 4 % 100 % The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates (1) Total Balance at January 1, 2019 $ 12,982 $ 73,369 $ 553,471 $ 639,822 Total gains or losses: Included in realized gains / losses — — — — Included in other comprehensive income 441 6,306 23,620 30,367 Acquisitions — — — — Sales — — — — Amortization — 2,315 7 2,322 Other (2) (220 ) (2,912 ) (6,927 ) (10,059 ) Transfers into (out of) Level 3 (3) — — — — Balance at June 30, 2019 $ 13,203 $ 79,078 $ 570,171 $ 662,452 Percent of total fixed maturities — % 1 % 3 % 4 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates (1) Total Balance at January 1, 2018 $ 14,049 $ 71,581 $ 582,810 $ 668,440 Total gains or losses: Included in realized gains / losses — — — — Included in other comprehensive income (697 ) 5,183 (19,611 ) (15,125 ) Acquisitions — — 20,300 20,300 Sales — — — — Amortization — 2,389 8 2,397 Other (2) (199 ) (2,957 ) (6,697 ) (9,853 ) Transfers into (out of) Level 3 (3) — — — — Balance at June 30, 2018 $ 13,153 $ 76,196 $ 576,810 $ 666,159 Percent of total fixed maturities — % — % 4 % 4 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents transfers in and out of each of the valuation levels of fair values: Six Months Ended June 30, 2019 2018 In Out Net In Out Net Level 1 $ 14,572 $ — $ 14,572 $ — $ — $ — Level 2 — (14,572 ) (14,572 ) — — — Level 3 — — — — — — Other investment information : Other long-term investments consist of the following: June 30, 2019 December 31, 2018 Investment in limited partnerships (1) $ 165,426 $ 108,241 Commercial mortgage loan participations (2) 120,599 96,266 Other 3,122 2,751 Total $ 289,147 $ 207,258 (1) See the following section for more information regarding the fair value method used to account for these investments. (2) Globe Life invests in a portfolio of commercial mortgage loan participations. As of June 30, 2019 and December 31, 2018 , the Company evaluated the portfolio on a loan-by-loan basis to determine any allowance for loss. Factors considered include, but are not limited to, collateral value, loan-to-value ratio, debt service coverage ratio, local market conditions, credit quality of the borrower and tenants, and loan performance. There were no material changes to the property type, geographic location, or loan-to-value ratio for any of the loans during the period . As of June 30, 2019 and December 31, 2018 Fair Value Option : The following table represents the fair value of certain limited partnership investments elected for the fair value option method measured on a recurring basis at June 30, 2019 , and the changes in fair value for the six months ended June 30, 2019 . All changes in fair value are recognized in "Realized Investment Gains (Losses)" in the Condensed Consolidated Statements of Operations . Distributions received on a periodic basis are recorded in Net Investment Income. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Fair Value Measurements at: June 30, 2019 $ — $ 165,426 $ — $ 165,426 December 31, 2018 — 108,241 — 108,241 Changes in Fair Values for the Period for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Net Gains and Losses Recognized During the Period Less Net Gains and Losses Recognized due to Sales Total Changes in Fair Values Included in Current-Period Earnings Six Months Ended June 30, 2019 $ 684 $ — $ 684 2018 2,861 — 2,861 Other-than-temporary impairments (OTTI) : In accordance with the other-than-temporary impairment (OTTI) policy, the Company evaluated its fixed maturities available for sale in an unrealized loss position to determine if there was any impairment for the quarter. Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in the interest rates or credit spreads. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life has the ability and intent to hold these investments to recovery. Additionally, the Company does not expect to be required to sell any of its securities due to the strong cash flows generated by its insurance operations. For the six months ended June 30, 2019 and 2018 , the Company concluded that there were no other-than-temporary impairments. Unrealized Loss Analysis : The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of June 30, 2019 16 148 164 As of December 31, 2018 495 234 729 Globe Life's entire fixed maturity portfolio consisted of 1,588 issues at June 30, 2019 and 1,548 issues at December 31, 2018 . The weighted-average quality rating of all unrealized loss positions at amortized cost as of June 30, 2019 was BBB- compared with BBB+ as of December 31, 2018 . The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at June 30, 2019 and December 31, 2018 , respectively. Globe Life considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At June 30, 2019 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 2 $ — $ 28,896 $ (420 ) $ 28,898 $ (420 ) States, municipalities and political subdivisions 29,960 (40 ) — — 29,960 (40 ) Foreign governments — — — — — — Corporates, by sector: Financial 74,915 (85 ) 130,430 (4,854 ) 205,345 (4,939 ) Utilities — — 73,863 (1,126 ) 73,863 (1,126 ) Energy 6,198 (80 ) 65,067 (6,781 ) 71,265 (6,861 ) Other corporate sectors 24,603 (32 ) 581,822 (19,225 ) 606,425 (19,257 ) Total corporates 105,716 (197 ) 851,182 (31,986 ) 956,898 (32,183 ) Other asset-backed securities 62 — — — 62 — Total investment grade securities 135,740 (237 ) 880,078 (32,406 ) 1,015,818 (32,643 ) Below investment grade securities: States, municipalities and political subdivisions 82 (138 ) — — 82 (138 ) Corporates, by sector: Financial 7,379 (450 ) 122,459 (25,082 ) 129,838 (25,532 ) Utilities 15,449 (1,136 ) 12,300 (3,949 ) 27,749 (5,085 ) Energy 2,872 (346 ) 44,046 (21,656 ) 46,918 (22,002 ) Other corporate sectors 16,687 (585 ) 81,950 (16,552 ) 98,637 (17,137 ) Total corporates 42,387 (2,517 ) 260,755 (67,239 ) 303,142 (69,756 ) Collateralized debt obligations — — 13,503 (6,497 ) 13,503 (6,497 ) Other asset-backed securities 14,104 (296 ) — — 14,104 (296 ) Total below investment grade securities 56,573 (2,951 ) 274,258 (73,736 ) 330,831 (76,687 ) Total fixed maturities $ 192,313 $ (3,188 ) $ 1,154,336 $ (106,142 ) $ 1,346,649 $ (109,330 ) Analysis of Gross Unrealized Investment Losses At December 31, 2018 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 37,182 $ (212 ) $ 89,664 $ (2,575 ) $ 126,846 $ (2,787 ) States, municipalities and political subdivisions 124,907 (1,648 ) 7,981 (102 ) 132,888 (1,750 ) Corporates, by sector: Financial 931,161 (36,337 ) 241,442 (21,572 ) 1,172,603 (57,909 ) Utilities 329,753 (11,680 ) 121,308 (9,442 ) 451,061 (21,122 ) Energy 475,736 (29,426 ) 54,937 (9,382 ) 530,673 (38,808 ) Other corporate sectors 2,515,541 (149,168 ) 575,796 (62,994 ) 3,091,337 (212,162 ) Total corporates 4,252,191 (226,611 ) 993,483 (103,390 ) 5,245,674 (330,001 ) Other asset-backed securities 44,603 (634 ) — — 44,603 (634 ) Total investment grade securities 4,458,883 (229,105 ) 1,091,128 (106,067 ) 5,550,011 (335,172 ) Below investment grade securities: Corporates, by sector: Financial 22,087 (8,674 ) 81,101 (20,932 ) 103,188 (29,606 ) Utilities 28,613 (3,277 ) — — 28,613 (3,277 ) Energy 42,874 (3,901 ) 36,122 (19,662 ) 78,996 (23,563 ) Other corporate sectors 146,373 (7,235 ) 69,053 (23,112 ) 215,426 (30,347 ) Total corporates 239,947 (23,087 ) 186,276 (63,706 ) 426,223 (86,793 ) Collateralized debt obligations — — 13,586 (6,414 ) 13,586 (6,414 ) Total below investment grade securities 239,947 (23,087 ) 199,862 (70,120 ) 439,809 (93,207 ) Total fixed maturities $ 4,698,830 $ (252,192 ) $ 1,290,990 $ (176,187 ) $ 5,989,820 $ (428,379 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5—Commitments and Contingencies Guarantees : The Parent Company has guaranteed letters of credit in connection with its credit facility with a group of banks. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life Inc. insurance subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The agreement expires in 2021. The maximum amount of letters of credit available is $250 million . The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. On April 2, 2019 , the letters of credit were amended to reduce the current amount outstanding from $155 million to $150 million . As of June 30, 2019, the outstanding balance remained unchanged. Litigation : Globe Life Inc. (formerly Torchmark Corporation) and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including putative class action litigation, alleged breaches of contract, torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of the Parent Company's insurance subsidiaries, employment discrimination, and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life's financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts. Globe Life's management recognizes that large punitive damage awards bearing little or no relation to actual damages continue to be awarded by juries in jurisdictions in which the Company has substantial business, creating the potential for unpredictable material adverse judgments in any given punitive damage suit. On September 12, 2018, putative class action litigation was filed against American Income in California’s Contra Costa County Superior Court ( Joh v. American Income Life Insurance Company, Case No. C18-01863). An amended complaint was filed on October 18, 2018. American Income removed the case to the United States District Court for the Northern District of California (Case No. 3:18-cv-06364-TSH). A second amended complaint was filed on May 20, 2019. The plaintiffs, former insurance sales agents of American Income, are suing on behalf of all current and former trainees and sales agents who sold insurance for American Income in the State of California for the four years prior to the filing of the complaint. The second amended complaint alleges that such individuals are employees and asserts claims under the California Labor Code, California Business and Professions Code, and California Private Attorney General Act. The complaint seeks compensatory damages, penalties and attorney fees on claims for failure to pay wages/commissions, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, misclassification and unfair business practices. On October 18, 2018, putative class action litigation was filed against Torchmark Corporation and American Income in California’s Los Angeles County Superior Court ( Golz v. American Income Life Insurance Company , et al., Case No. 18STCV01354). American Income removed the case to the United States District Court for the Central District of California (Case No. 2:18-cv-09879 R (SSx)). An amended complaint was filed on February 5, 2019. On February 6, 2019, Torchmark Corporation was dismissed without prejudice and the case proceeded with respect to American Income. On April 2, 2019, the District Court granted American Income’s motion to dismiss four of the five causes of action asserted. The amended complaint’s remaining claim alleges that plaintiff, as an American Income insurance agent trainee in California, was an employee who should have been compensated accordingly. The plaintiff seeks to represent a class of individuals in California who trained to contract as American Income agents and who subsequently worked as contracted agents. The class period is alleged to begin four years prior to the complaint’s filing. The complaint seeks restitution under the California Business and Professions Code for alleged unfair business practices such as failure to pay minimum wage and overtime, failure to provide meal and rest breaks, and failure to reimburse business expenses. On December 14, 2018, putative class action litigation was filed against American Income in United States District Court for the Northern District of California ( Hamilton v. American Income Life Insurance Company , Case No. 4:18-cv-7535-KAW). An amended complaint was filed on January 23, 2019. The plaintiffs, former insurance sales agents of American Income, are suing on behalf of all current and former sales agents who sold insurance for American Income in the State of California for the last four years prior to the filing of the complaint. The lawsuit alleges that putative class members are employees and asserts claims under the California Labor Code, California Business and Professions Code, and California Private Attorney General Act. The complaint seeks compensatory damages, penalties and attorney fees on claims for failure to pay minimum wage and overtime, failure to provide meal and rest breaks, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, misclassification and unfair business practices. On January 16, 2019, putative class action litigation was filed against American Income in Orange County, California Superior Court ( Putros v. American Income Life Insurance Company , Case No. 30-2019-01044772-CU-OE-CXC). An amended complaint was filed on January 22, 2019. The plaintiff, a former insurance sales agent of American Income, is suing on behalf of all current and former sales agents who sold insurance for American Income in the State of California for the year prior to the filing of the complaint. The lawsuit alleges that putative class members are employees and asserts claims under the California Private Attorney General Act. The complaint seeks penalties for failure to pay minimum wage, failure to provide meal and rest breaks, failure to appropriately pay agents at termination, failure to provide itemized wage statements, failure to reimburse expenses, and misclassification. With respect to its current litigation, at this time management believes that the possibility of a material judgment adverse to the Company is remote. |
Liability for Unpaid Claims
Liability for Unpaid Claims | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Note 6—Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: Six Months Ended 2019 2018 Balance at beginning of period $ 154,528 $ 146,865 Incurred related to: Current year 302,129 269,574 Prior year 77 (5,708 ) Total incurred 302,206 263,866 Paid related to: Current year 190,599 171,199 Prior year 110,587 99,054 Total paid 301,186 270,253 Balance at end of period $ 155,548 $ 140,478 Below is the reconciliation of the liability of "Policy claims and other benefits payable " in the Condensed Consolidated Balance Sheets . June 30, December 31, 2018 Policy claims and other benefits payable: Life insurance $ 195,799 $ 196,298 Health insurance 155,548 154,528 Total $ 351,347 $ 350,826 |
Postretirement Benefits
Postretirement Benefits | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Note 7—Postretirement Benefits Globe Life Pension Assets: The following table presents the assets of the Company's defined benefit pension plans at June 30, 2019 and December 31, 2018 . Pension Assets by Component at June 30, 2019 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 44,880 $ — $ 44,880 10 Utilities — 41,728 — 41,728 9 Energy — 21,479 — 21,479 5 Other corporates — 89,210 — 89,210 20 Total corporate bonds — 197,297 — 197,297 44 Exchange traded fund (1) 185,765 — — 185,765 42 Other bonds — 255 — 255 — Other long-term investments — 10,126 — 10,126 2 Guaranteed annuity contract (2) — 26,737 — 26,737 6 Short-term investments 20,699 — — 20,699 5 Other 5,415 — — 5,415 1 Total pension assets $ 211,879 $ 234,415 $ — $ 446,294 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income, to fund the obligations of the American Income Life Insurance Company Non-Exempt Employees Defined Benefit Pension Plan ("American Income Pension Plan"). Pension Assets by Component at December 31, 2018 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 44,236 $ — $ 44,236 11 Utilities — 39,443 — 39,443 10 Energy — 19,744 — 19,744 5 Other corporates — 83,202 — 83,202 22 Total corporate bonds — 186,625 — 186,625 48 Exchange traded fund (1) 157,717 — — 157,717 40 Other bonds — 245 — 245 — Other long-term investments — 8,475 — 8,475 2 Guaranteed annuity contract (2) — 26,505 — 26,505 7 Short-term investments 9,289 — — 9,289 2 Other 3,816 — — 3,816 1 Total pension assets $ 170,822 $ 221,850 $ — $ 392,672 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income, to fund the obligations of the American Income Pension Plan. SERP : The following table includes information regarding the SERP at June 30, 2019 and December 31, 2018 . June 30, December 31, Premiums paid for insurance coverage $ 444 $ 2,997 Total investments: Company owned life insurance $ 45,326 $ 44,285 Exchange traded funds 61,048 52,659 $ 106,374 $ 96,944 Pension and SERP Liabilities : The following table presents liabilities for the defined benefit pension plans and SERP at June 30, 2019 and December 31, 2018 . June 30, December 31, Funded defined benefit pension $ 526,015 $ 481,792 SERP 75,198 74,407 Pension benefit obligation $ 601,213 $ 556,199 Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three and six months ended June 30, 2019 and 2018 . Components of Net Periodic Benefit Cost Three Months Ended Six Months Ended 2019 2018 2019 2018 Service cost $ 4,983 $ 5,277 $ 9,965 $ 10,554 Interest cost 5,964 5,493 11,928 10,986 Expected return on assets (6,966 ) (6,363 ) (13,932 ) (12,726 ) Amortization: Prior service cost 158 119 316 238 Actuarial (gain) loss 1,896 3,636 3,790 7,272 Net periodic benefit cost $ 6,035 $ 8,162 $ 12,067 $ 16,324 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8—Earnings Per Share Earnings per Share : A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic weighted average shares outstanding 109,649,714 113,350,175 109,973,820 113,762,340 Weighted average dilutive options outstanding 1,935,962 2,301,237 1,975,492 2,434,633 Diluted weighted average shares outstanding 111,585,676 115,651,412 111,949,312 116,196,973 Antidilutive shares 1,359,686 1,381,686 1,359,686 960,753 |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Note 9—Business Segments Globe Life is organized into four segments: life insurance, supplemental health insurance, annuities, and investments. We also have other administrative expenses reported in "Corporate & Other." Globe Life's reportable segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment which manages the investment portfolio, debt, and cash flow for the insurance segments and the corporate function. The Company's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments. Management’s measure of profitability for each insurance segment is insurance underwriting margin, which is underwriting income before other income and insurance administrative expenses. It represents the profit margin on insurance products before administrative expenses, and is calculated by deducting net policy obligations (claims incurred and change in reserves), commissions and other acquisition expenses from premium revenue. Globe Life further views the profitability of each insurance product segment by the marketing groups that distribute the products of that segment: direct response, independent agencies, or captive agencies. Globe Life 's management prefers to evaluate the performance of its underwriting and investment activities separately, rather than allocating investment income to the underwriting results. As such, the investment function is presented as a stand-alone segment. The investment segment includes management of the investment portfolio, debt, and cash flow. Management’s measure of profitability for this segment is excess investment income, which is the income earned on the investment portfolio less the required interest on net policy liabilities and financing costs. Financing costs include the interest on the Parent Company's debt. Other income and insurance administrative expense are classified in a separate Corporate and Other segment. The majority of the Company’s required interest on net policy liabilities (benefit reserves less the deferred acquisition cost asset) is not credited to policyholder accounts. Instead, it is an actuarial assumption for discounting cash flows in the computation of benefit reserves and the amortization of the deferred acquisition cost asset. Investment income required to fund the required interest on net policy liabilities is removed from the investment segment and applied to the insurance segments to eliminate the effect of the required interest from the insurance segments. As a result, the investment segment measures net investment income against the required interest on net policy liabilities and financing costs, while the insurance segments simply measure premiums against net policy benefits and expenses. Management believes this presentation facilitates a more meaningful analysis of the Company’s underwriting and investment performance as the underwriting results are based on premiums, claims, and expenses and are not affected by unanticipated fluctuations in investment yields. As noted, Globe Life's core operations are insurance and investment management. The insurance segments issue policies for which premiums are collected for the eventual payment of policy benefits. In addition to policy benefits, operating expenses are incurred including acquisition costs, administrative expenses, and taxes. Because life and health contracts can be long term, premium receipts in excess of current expenses are invested. Investment activities, conducted by the investment segment, focus on seeking quality investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are taken into account when setting insurance premium rates and product profitability expectations. As a result, fixed maturities are generally held for long periods to support the liabilities, and the Company generally expects to hold investments until maturity. However, dispositions of investments occur from time to time, generally for reasons such as credit concerns, calls by issuers, or other factors. Since Globe Life does not actively trade investments, realized gains and losses from the disposition and write down of investments are generally incidental to operations and are not considered a material factor in insurance pricing or product profitability. While from time to time these realized gains and losses could be significant to net income in the period in which they occur, they generally have a limited effect on the yield of the total investment portfolio. Further, the disposals have little effect on the size of the portfolio as the proceeds of the disposals are reinvested in the portfolio and the income from the reinvestments is included in net investment income. Therefore, management removes realized investment gains and losses from results of core operations when evaluating the performance of the Company. For this reason, these gains and losses are excluded from the Company's operating segments. Globe Life accounts for its stock options and restricted stock under current accounting guidance requiring stock options and stock grants to be expensed based on fair value at the time of grant. Management considers stock compensation expense to be an expense of the Parent Company. Therefore, stock compensation expense is treated as a corporate expense in Globe Life's segment analysis. The following tables set forth a reconciliation of the Company's revenues and operations by segment to its pre-tax income and each significant line item in its Condensed Consolidated Statements of Operations . The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items: Three Months Ended June 30, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 631,201 $ 266,282 $ 1 $ — $ — $ — $ 897,484 Net investment income — — — 227,425 — — 227,425 Other income — — — — 398 — 398 Total revenue 631,201 266,282 1 227,425 398 — 1,125,307 Expenses: Policy benefits 410,961 170,511 7,890 — — — 589,362 Required interest on reserves (165,513 ) (21,680 ) (10,888 ) 198,081 — — — Required interest on DAC 50,298 6,341 127 (56,766 ) — — — Amortization of acquisition costs 110,319 27,343 503 — — — 138,165 Commissions, premium taxes, and non-deferred acquisition costs 50,086 23,608 4 — — — 73,698 Insurance administrative expense (1) — — — — 59,416 5,500 (2 ) 64,916 Parent expense — — — — 2,872 — 2,872 Stock-based compensation expense — — — — 11,256 — 11,256 Interest expense — — — 21,432 — — 21,432 Total expenses 456,151 206,123 (2,364 ) 162,747 73,544 5,500 901,701 Subtotal 175,050 60,159 2,365 64,678 (73,146 ) (5,500 ) 223,606 Non-operating items — — — — — 5,500 (2 ) 5,500 Measure of segment profitability (pretax) $ 175,050 $ 60,159 $ 2,365 $ 64,678 $ (73,146 ) $ — 229,106 Realized gain (loss)—investments 5,154 Legal proceedings (5,500 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 228,760 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings—See Note 5 for further discussion. Three Months Ended June 30, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 602,534 $ 251,440 $ 5 $ — $ — $ — $ 853,979 Net investment income — — — 218,568 — — 218,568 Other income — — — — 441 (25 ) (2) 416 Total revenue 602,534 251,440 5 218,568 441 (25 ) 1,072,963 Expenses: Policy benefits 399,334 160,461 8,582 — — — 568,377 Required interest on reserves (158,101 ) (20,726 ) (11,885 ) 190,712 — — — Required interest on DAC 48,275 6,079 150 (54,504 ) — — — Amortization of acquisition costs 104,599 23,892 586 — — — 129,077 Commissions, premium taxes, and non-deferred acquisition costs 47,250 22,196 6 — — (25 ) (2) 69,427 Insurance administrative expense (1) — — — — 55,276 — 55,276 Parent expense — — — — 2,847 — 2,847 Stock-based compensation expense — — — — 10,497 — 10,497 Interest expense — — — 22,411 — — 22,411 Total expenses 441,357 191,902 (2,561 ) 158,619 68,620 (25 ) 857,912 Subtotal 161,177 59,538 2,566 59,949 (68,179 ) — 215,051 Non-operating items — — — — — — — Measure of segment profitability (pretax) $ 161,177 $ 59,538 $ 2,566 $ 59,949 $ (68,179 ) $ — 215,051 Realized gain (loss)—investments 11,813 Income before income taxes per Condensed Consolidated Statements of Operations $ 226,864 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Six Months Ended June 30, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 1,255,490 $ 532,966 $ 1 $ — $ — $ — $ 1,788,457 Net investment income — — — 454,098 — — 454,098 Other income — — — — 639 — 639 Total revenue 1,255,490 532,966 1 454,098 639 — 2,243,194 Expenses: Policy benefits 820,653 340,528 15,938 — — — 1,177,119 Required interest on reserves (329,175 ) (43,176 ) (22,008 ) 394,359 — — — Required interest on DAC 100,322 12,624 258 (113,204 ) — — — Amortization of acquisition costs 218,609 54,357 1,021 — — — 273,987 Commissions, premium taxes, and non-deferred acquisition costs 100,192 46,960 11 — — — 147,163 Insurance administrative expense (1) — — — — 118,607 5,900 (2,3) 124,507 Parent expense — — — — 5,515 — 5,515 Stock-based compensation expense — — — — 21,815 — 21,815 Interest expense — — — 42,710 — — 42,710 Total expenses 910,601 411,293 (4,780 ) 323,865 145,937 5,900 1,792,816 Subtotal 344,889 121,673 4,781 130,233 (145,298 ) (5,900 ) 450,378 Non-operating items — — — — — 5,900 (2,3) 5,900 Measure of segment profitability (pretax) $ 344,889 $ 121,673 $ 4,781 $ 130,233 $ (145,298 ) $ — 456,278 Realized gain (loss)—investments 6,483 Administrative settlements (400 ) Legal proceedings (5,500 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 456,861 (1) Administrative expense is not allocated to insurance segments. (2) During the first quarter of 2019 , Globe Life recorded $400 thousand in administrative settlements related to state regulatory examinations. (3) Legal proceedings—See Note 5 for further discussion. Six Months Ended June 30, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 1,200,837 $ 503,238 $ 10 $ — $ — $ — $ 1,704,085 Net investment income — — — 436,652 — — 436,652 Other income — — — — 764 (53 ) (2) 711 Total revenue 1,200,837 503,238 10 436,652 764 (53 ) 2,141,448 Expenses: Policy benefits 799,915 321,080 17,271 — — — 1,138,266 Required interest on reserves (314,315 ) (41,130 ) (23,902 ) 379,347 — — — Required interest on DAC 96,219 12,092 303 (108,614 ) — — — Amortization of acquisition costs 208,376 49,149 1,172 — — — 258,697 Commissions, premium taxes, and non-deferred acquisition costs 94,644 44,461 14 — — (53 ) (2) 139,066 Insurance administrative expense (1) — — — — 110,748 — 110,748 Parent expense — — — — 5,139 — 5,139 Stock-based compensation expense — — — — 19,557 — 19,557 Interest expense — — — 44,033 — — 44,033 Total expenses 884,839 385,652 (5,142 ) 314,766 135,444 (53 ) 1,715,506 Subtotal 315,998 117,586 5,152 121,886 (134,680 ) — 425,942 Non-operating items — — — — — — — Measure of segment profitability (pretax) $ 315,998 $ 117,586 $ 5,152 $ 121,886 $ (134,680 ) $ — 425,942 Realized gain (loss)—investments 13,764 Income before income taxes per Condensed Consolidated Statements of Operations $ 439,706 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying condensed consolidated financial statements of Globe Life Inc. have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at June 30, 2019 , and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended June 30, 2019 and 2018 . The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on March 1, 2019 . |
Accounting Pronouncements Adopted In Current Year / Not Yet Adopted | Accounting Pronouncements Adopted in the Current Year Standard Description Effective date Effect on the consolidated financial statements ASU No. 2016-02/2018-11 , Leases (Topic 842), with clarification guidance issued in July 2018. The standard requires lessees to record a right-of-use asset and corresponding lease liability on the balance sheet for all operating leases that do not qualify for the practical expedients allowed for in this standard. Additional qualitative and quantitative disclosures are required. This standard became effective for the Company beginning January 1, 2019. The Company adopted the optional transition method allowed for under ASU 2018-11 by not restating comparative periods and recognizing an immaterial cumulative-effect adjustment to the opening balance of retained earnings on January 1, 2019. The Company does not have any significant lessor contracts. The adoption did not have a material impact on the consolidated financial statements. ASU No. 2017-08 , Receivables—Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities This standard was issued to shorten the amortization period for certain callable debt securities held at a premium. The standard requires the premium to be amortized to the earliest call date. This standard became effective for the Company beginning January 1, 2019. This adoption did not have a material impact on the consolidated financial statements as of June 30, 2019. Accounting Pronouncements Yet to be Adopted Standard Description Effective date Effect on the consolidated financial statements ASU No. 2016-13/2019-04/2019-05 , Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, with clarification guidance issued in April and May 2019. This standard ("CECL") provides financial statement users with more decision-useful information about the expected credit losses on financial instruments, such as assets recorded at amortized cost, as well as to change the loss impairment methodology for available-for-sale debt securities by use of an allowance rather than a direct write-down. This standard will become effective on January 1, 2020 with a modified retrospective transition and an opening balance sheet adjustment to retained earnings on January 1, 2020. The applicable section of the standard related to debt securities requires a prospective transition. We have determined relevant financial assets within scope of the standard. Based on our current analysis, we are not anticipating the adoption of the guidance to have a material impact to the consolidated financial statements. ASU No. 2018-12 , Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. This standard is effective beginning January 1, 2021. Early adoption of the amendments is permitted. The Company is currently in the process of evaluating the impact this guidance will have on the consolidated financial statements as well as assessing controls and accounting policies, key assumptions/data inputs, system solutions, and actuarial modeling. ASU No. 2018-13 , Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement The amendment modifies the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The revised standard is effective beginning January 1, 2020. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the consolidated financial statements. Accounting Pronouncements Yet to be Adopted (continued) Standard Description Effective date Effect on the consolidated financial statements ASU No. 2018-14 , Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20), Changes to the Disclosure Requirements for Defined Benefit Plans The standard removes disclosures that are no longer considered cost beneficial, clarifies the specific requirements of disclosures and adds disclosure requirements identified as relevant to defined benefit plans. This standard is effective beginning January 1, 2021, and will be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. ASU No. 2018-15 , Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract The standard was issued to now allow the capitalization of implementation costs incurred in a hosting arrangement that is a service contract to be similar to the treatment of developed or obtained internal-use software. The standard is effective beginning January 1, 2020, and the Company plans to apply the standards on a prospective basis. Early adoption of the amendments is also permitted. The Company does not expect the adoption of this standard to have a material impact on the consolidated financial statements. |
Supplemental Information Abou_2
Supplemental Information About Changes to Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three and six month periods ended June 30, 2019 and 2018 : Three Months Ended June 30, 2018 Available Deferred Foreign Pension Total Balance at April 1, 2018 $ 1,082,896 $ (8,191 ) $ 15,279 $ (149,785 ) $ 940,199 Other comprehensive income (loss) before reclassifications, net of tax (329,619 ) 1,612 (4,914 ) — (332,921 ) Reclassifications, net of tax (6,763 ) — — 2,984 (3,779 ) Other comprehensive income (loss) (336,382 ) 1,612 (4,914 ) 2,984 (336,700 ) Balance at June 30, 2018 $ 746,514 $ (6,579 ) $ 10,365 $ (146,801 ) $ 603,499 Three Months Ended June 30, 2019 Available Deferred Foreign Pension Total Balance at April 1, 2019 $ 984,701 $ (6,691 ) $ 8,937 $ (116,880 ) $ 870,067 Other comprehensive income (loss) before reclassifications, net of tax 568,073 135 (31 ) — 568,177 Reclassifications, net of tax (666 ) — — 1,672 1,006 Other comprehensive income (loss) 567,407 135 (31 ) 1,672 569,183 Balance at June 30, 2019 $ 1,552,108 $ (6,556 ) $ 8,906 $ (115,208 ) $ 1,439,250 Six Months Ended June 30, 2018 Available Deferred Foreign Pension Total Balance at January 1, 2018 $ 1,569,289 $ (8,547 ) $ 16,302 $ (152,770 ) $ 1,424,274 Other comprehensive income (loss) before reclassifications, net of tax (815,462 ) 1,968 (5,937 ) — (819,431 ) Reclassifications, net of tax (7,313 ) — — 5,969 (1,344 ) Other comprehensive income (loss) (822,775 ) 1,968 (5,937 ) 5,969 (820,775 ) Balance at June 30, 2018 $ 746,514 $ (6,579 ) $ 10,365 $ (146,801 ) $ 603,499 Six Months Ended June 30, 2019 Available Deferred Foreign Pension Total Balance at January 1, 2019 $ 435,698 $ (4,163 ) $ 6,495 $ (118,555 ) $ 319,475 Other comprehensive income (loss) before reclassifications, net of tax 1,119,007 (2,393 ) 2,411 — 1,119,025 Reclassifications, net of tax (2,597 ) — — 3,347 750 Other comprehensive income (loss) 1,116,410 (2,393 ) 2,411 3,347 1,119,775 Balance at June 30, 2019 $ 1,552,108 $ (6,556 ) $ 8,906 $ (115,208 ) $ 1,439,250 the three and six month periods ended June 30, 2019 and 2018 . Three Months Ended Six Months Ended June 30, Affected line items in the Statement of Operations Component Line Item 2019 2018 2019 2018 Unrealized investment gains (losses) on available for sale assets: Realized gains (losses) $ (2,237 ) $ (9,431 ) $ (5,907 ) $ (10,817 ) Realized investment gains (losses) Amortization of (discount) premium 1,394 870 2,620 1,560 Net investment income Total before tax (843 ) (8,561 ) (3,287 ) (9,257 ) Tax 177 1,798 690 1,944 Income taxes Total after-tax (666 ) (6,763 ) (2,597 ) (7,313 ) Pension adjustments: Amortization of prior service cost 158 119 316 238 Other operating expense Amortization of actuarial (gain) loss 1,960 3,659 3,922 7,318 Other operating expense Total before tax 2,118 3,778 4,238 7,556 Tax (446 ) (794 ) (891 ) (1,587 ) Income taxes Total after-tax 1,672 2,984 3,347 5,969 Total reclassification (after-tax) $ 1,006 $ (3,779 ) $ 750 $ (1,344 ) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three and six month periods ended June 30, 2019 and 2018 . Three Months Ended Six Months Ended June 30, Affected line items in the Statement of Operations Component Line Item 2019 2018 2019 2018 Unrealized investment gains (losses) on available for sale assets: Realized gains (losses) $ (2,237 ) $ (9,431 ) $ (5,907 ) $ (10,817 ) Realized investment gains (losses) Amortization of (discount) premium 1,394 870 2,620 1,560 Net investment income Total before tax (843 ) (8,561 ) (3,287 ) (9,257 ) Tax 177 1,798 690 1,944 Income taxes Total after-tax (666 ) (6,763 ) (2,597 ) (7,313 ) Pension adjustments: Amortization of prior service cost 158 119 316 238 Other operating expense Amortization of actuarial (gain) loss 1,960 3,659 3,922 7,318 Other operating expense Total before tax 2,118 3,778 4,238 7,556 Tax (446 ) (794 ) (891 ) (1,587 ) Income taxes Total after-tax 1,672 2,984 3,347 5,969 Total reclassification (after-tax) $ 1,006 $ (3,779 ) $ 750 $ (1,344 ) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Component | Summaries of fixed maturities available for sale by cost or amortized cost and estimated fair value at June 30, 2019 and December 31, 2018 are as follows. Redeemable preferred stock is included within the corporates by sector. At June 30, 2019 Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 393,915 $ 38,353 $ (420 ) $ 431,848 3 States, municipalities, and political subdivisions 1,365,345 139,098 (178 ) 1,504,265 8 Foreign governments 18,732 2,319 — 21,051 — Corporates, by sector: Financial 3,980,362 557,883 (30,471 ) 4,507,774 25 Utilities 1,958,277 359,882 (6,211 ) 2,311,948 13 Energy 1,632,744 233,498 (28,863 ) 1,837,379 10 Other corporate sectors 6,432,457 694,873 (36,394 ) 7,090,936 40 Total corporates 14,003,840 1,846,136 (101,939 ) 15,748,037 88 Collateralized debt obligations 57,172 28,403 (6,497 ) 79,078 — Other asset-backed securities 145,268 5,023 (296 ) 149,995 1 Total fixed maturities $ 15,984,272 $ 2,059,332 $ (109,330 ) $ 17,934,274 100 (1) Amount reported in the balance sheet. (2) At fair value. At December 31, 2018 Cost or Gross Gross Fair Value (1) % of Total (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 390,351 $ 5,104 $ (2,787 ) $ 392,668 2 States, municipalities, and political subdivisions 1,354,810 83,600 (1,750 ) 1,436,660 9 Foreign governments 19,006 1,810 — 20,816 — Corporates, by sector: Financial 3,759,768 262,875 (87,515 ) 3,935,128 24 Utilities 1,989,506 217,846 (24,399 ) 2,182,953 13 Energy 1,652,700 93,880 (62,371 ) 1,684,209 10 Other corporate sectors 6,382,707 283,524 (242,509 ) 6,423,722 40 Total corporates 13,784,681 858,125 (416,794 ) 14,226,012 87 Collateralized debt obligations 57,769 22,014 (6,414 ) 73,369 1 Other asset-backed securities 146,854 2,187 (634 ) 148,407 1 Total fixed maturities $ 15,753,471 $ 972,840 $ (428,379 ) $ 16,297,932 100 (1) Amount reported in the balance sheet. (2) At fair value. |
Schedule of Fixed Maturities by Contractual Maturity | A schedule of fixed maturities available for sale by contractual maturity date at June 30, 2019 is shown below on an amortized cost basis and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At June 30, 2019 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 151,815 $ 153,027 Due after one year through five years 631,205 674,283 Due after five years through ten years 1,646,091 1,867,864 Due after ten years through twenty years 5,211,263 6,086,465 Due after twenty years 8,140,905 8,922,971 Mortgage-backed and asset-backed securities 202,993 229,664 $ 15,984,272 $ 17,934,274 |
Schedule of Analysis of Investment Operations | Net investment income for the three and six month periods ended June 30, 2019 and 2018 is summarized as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Fixed maturities available for sale $ 215,867 $ 209,771 $ 431,630 $ 418,313 Policy loans 10,821 10,201 21,457 20,399 Other long-term investments 3,991 2,120 7,379 4,974 Short-term investments 763 433 1,582 824 231,442 222,525 462,048 444,510 Less investment expense (4,017 ) (3,957 ) (7,950 ) (7,858 ) Net investment income $ 227,425 $ 218,568 $ 454,098 $ 436,652 |
Schedule of Selected Information about Sales of Fixed Maturities | Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Fixed maturities available for sale: Proceeds from sales (1) $ — $ — $ 34,997 $ — Gross realized gains — — 46 — Gross realized losses — — (3,027 ) — (1) There were no unsettled sales in the periods ending June 30, 2019 and 2018. |
Realized Gain (Loss) on Investments | An analysis of realized gains (losses) is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Realized investment gains (losses): Fixed maturities available for sale: Sales and other $ 2,237 $ 9,431 $ 5,907 $ 10,817 Fair value option—change in fair value 2,869 2,301 684 2,861 Other investments 48 81 (108 ) 86 Realized gains (losses) from investments 5,154 11,813 6,483 13,764 Applicable tax (1,082 ) (2,480 ) (1,361 ) (2,890 ) Realized gains (losses), net of tax $ 4,072 $ 9,333 $ 5,122 $ 10,874 |
Schedule of Unrealized Investment Losses by Class of Investment | The following tables represent the fair value of fixed maturities measured on a recurring basis at June 30, 2019 and December 31, 2018 : Fair Value Measurement at June 30, 2019 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 431,848 $ — $ 431,848 States, municipalities, and political subdivisions — 1,504,265 — 1,504,265 Foreign governments — 21,051 — 21,051 Corporates, by sector: Financial — 4,462,768 45,006 4,507,774 Utilities 9,472 2,149,087 153,389 2,311,948 Energy — 1,796,186 41,193 1,837,379 Other corporate sectors — 6,760,353 330,583 7,090,936 Total corporates 9,472 15,168,394 570,171 15,748,037 Collateralized debt obligations — — 79,078 79,078 Other asset-backed securities — 136,792 13,203 149,995 Total fixed maturities $ 9,472 $ 17,262,350 $ 662,452 $ 17,934,274 Percentage of total — % 96 % 4 % 100 % Fair Value Measurement at December 31, 2018 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 392,668 $ — $ 392,668 States, municipalities, and political subdivisions — 1,436,660 — 1,436,660 Foreign governments — 20,816 — 20,816 Corporates, by sector: Financial — 3,891,728 43,400 3,935,128 Utilities — 2,032,127 150,826 2,182,953 Energy — 1,645,077 39,132 1,684,209 Other corporate sectors — 6,103,609 320,113 6,423,722 Total corporates — 13,672,541 553,471 14,226,012 Collateralized debt obligations — — 73,369 73,369 Other asset-backed securities — 135,425 12,982 148,407 Total fixed maturities $ — $ 15,658,110 $ 639,822 $ 16,297,932 Percentage of total — % 96 % 4 % 100 % The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at June 30, 2019 and December 31, 2018 , respectively. Globe Life considers these investments to be only temporarily impaired. Analysis of Gross Unrealized Investment Losses At June 30, 2019 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 2 $ — $ 28,896 $ (420 ) $ 28,898 $ (420 ) States, municipalities and political subdivisions 29,960 (40 ) — — 29,960 (40 ) Foreign governments — — — — — — Corporates, by sector: Financial 74,915 (85 ) 130,430 (4,854 ) 205,345 (4,939 ) Utilities — — 73,863 (1,126 ) 73,863 (1,126 ) Energy 6,198 (80 ) 65,067 (6,781 ) 71,265 (6,861 ) Other corporate sectors 24,603 (32 ) 581,822 (19,225 ) 606,425 (19,257 ) Total corporates 105,716 (197 ) 851,182 (31,986 ) 956,898 (32,183 ) Other asset-backed securities 62 — — — 62 — Total investment grade securities 135,740 (237 ) 880,078 (32,406 ) 1,015,818 (32,643 ) Below investment grade securities: States, municipalities and political subdivisions 82 (138 ) — — 82 (138 ) Corporates, by sector: Financial 7,379 (450 ) 122,459 (25,082 ) 129,838 (25,532 ) Utilities 15,449 (1,136 ) 12,300 (3,949 ) 27,749 (5,085 ) Energy 2,872 (346 ) 44,046 (21,656 ) 46,918 (22,002 ) Other corporate sectors 16,687 (585 ) 81,950 (16,552 ) 98,637 (17,137 ) Total corporates 42,387 (2,517 ) 260,755 (67,239 ) 303,142 (69,756 ) Collateralized debt obligations — — 13,503 (6,497 ) 13,503 (6,497 ) Other asset-backed securities 14,104 (296 ) — — 14,104 (296 ) Total below investment grade securities 56,573 (2,951 ) 274,258 (73,736 ) 330,831 (76,687 ) Total fixed maturities $ 192,313 $ (3,188 ) $ 1,154,336 $ (106,142 ) $ 1,346,649 $ (109,330 ) Analysis of Gross Unrealized Investment Losses At December 31, 2018 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 37,182 $ (212 ) $ 89,664 $ (2,575 ) $ 126,846 $ (2,787 ) States, municipalities and political subdivisions 124,907 (1,648 ) 7,981 (102 ) 132,888 (1,750 ) Corporates, by sector: Financial 931,161 (36,337 ) 241,442 (21,572 ) 1,172,603 (57,909 ) Utilities 329,753 (11,680 ) 121,308 (9,442 ) 451,061 (21,122 ) Energy 475,736 (29,426 ) 54,937 (9,382 ) 530,673 (38,808 ) Other corporate sectors 2,515,541 (149,168 ) 575,796 (62,994 ) 3,091,337 (212,162 ) Total corporates 4,252,191 (226,611 ) 993,483 (103,390 ) 5,245,674 (330,001 ) Other asset-backed securities 44,603 (634 ) — — 44,603 (634 ) Total investment grade securities 4,458,883 (229,105 ) 1,091,128 (106,067 ) 5,550,011 (335,172 ) Below investment grade securities: Corporates, by sector: Financial 22,087 (8,674 ) 81,101 (20,932 ) 103,188 (29,606 ) Utilities 28,613 (3,277 ) — — 28,613 (3,277 ) Energy 42,874 (3,901 ) 36,122 (19,662 ) 78,996 (23,563 ) Other corporate sectors 146,373 (7,235 ) 69,053 (23,112 ) 215,426 (30,347 ) Total corporates 239,947 (23,087 ) 186,276 (63,706 ) 426,223 (86,793 ) Collateralized debt obligations — — 13,586 (6,414 ) 13,586 (6,414 ) Total below investment grade securities 239,947 (23,087 ) 199,862 (70,120 ) 439,809 (93,207 ) Total fixed maturities $ 4,698,830 $ (252,192 ) $ 1,290,990 $ (176,187 ) $ 5,989,820 $ (428,379 ) |
Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates (1) Total Balance at January 1, 2019 $ 12,982 $ 73,369 $ 553,471 $ 639,822 Total gains or losses: Included in realized gains / losses — — — — Included in other comprehensive income 441 6,306 23,620 30,367 Acquisitions — — — — Sales — — — — Amortization — 2,315 7 2,322 Other (2) (220 ) (2,912 ) (6,927 ) (10,059 ) Transfers into (out of) Level 3 (3) — — — — Balance at June 30, 2019 $ 13,203 $ 79,078 $ 570,171 $ 662,452 Percent of total fixed maturities — % 1 % 3 % 4 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates (1) Total Balance at January 1, 2018 $ 14,049 $ 71,581 $ 582,810 $ 668,440 Total gains or losses: Included in realized gains / losses — — — — Included in other comprehensive income (697 ) 5,183 (19,611 ) (15,125 ) Acquisitions — — 20,300 20,300 Sales — — — — Amortization — 2,389 8 2,397 Other (2) (199 ) (2,957 ) (6,697 ) (9,853 ) Transfers into (out of) Level 3 (3) — — — — Balance at June 30, 2018 $ 13,153 $ 76,196 $ 576,810 $ 666,159 Percent of total fixed maturities — % — % 4 % 4 % (1) Includes redeemable preferred stocks. (2) Includes capitalized interest, foreign exchange adjustments and principal repayments. (3) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. |
Transfers in and Out of Each of the Valuation Levels of Fair Values | The following table presents transfers in and out of each of the valuation levels of fair values: Six Months Ended June 30, 2019 2018 In Out Net In Out Net Level 1 $ 14,572 $ — $ 14,572 $ — $ — $ — Level 2 — (14,572 ) (14,572 ) — — — Level 3 — — — — — — |
Schedule of Other Long-Term Investments | Other long-term investments consist of the following: June 30, 2019 December 31, 2018 Investment in limited partnerships (1) $ 165,426 $ 108,241 Commercial mortgage loan participations (2) 120,599 96,266 Other 3,122 2,751 Total $ 289,147 $ 207,258 (1) See the following section for more information regarding the fair value method used to account for these investments. (2) Globe Life invests in a portfolio of commercial mortgage loan participations. As of June 30, 2019 and December 31, 2018 , the Company evaluated the portfolio on a loan-by-loan basis to determine any allowance for loss. Factors considered include, but are not limited to, collateral value, loan-to-value ratio, debt service coverage ratio, local market conditions, credit quality of the borrower and tenants, and loan performance. There were no material changes to the property type, geographic location, or loan-to-value ratio for any of the loans during the period . As of June 30, 2019 and December 31, 2018 |
Fair Value Option, Disclosures | The following table represents the fair value of certain limited partnership investments elected for the fair value option method measured on a recurring basis at June 30, 2019 , and the changes in fair value for the six months ended June 30, 2019 . All changes in fair value are recognized in "Realized Investment Gains (Losses)" in the Condensed Consolidated Statements of Operations . Distributions received on a periodic basis are recorded in Net Investment Income. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Fair Value Fair Value Measurements at: June 30, 2019 $ — $ 165,426 $ — $ 165,426 December 31, 2018 — 108,241 — 108,241 Changes in Fair Values for the Period for Items Measured at Fair Value Pursuant to Election of the Fair Value Option Net Gains and Losses Recognized During the Period Less Net Gains and Losses Recognized due to Sales Total Changes in Fair Values Included in Current-Period Earnings Six Months Ended June 30, 2019 $ 684 $ — $ 684 2018 2,861 — 2,861 |
Schedule of Additional Information about Investments in Unrealized Loss Position | The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIP numbers) held: As of June 30, 2019 16 148 164 As of December 31, 2018 495 234 729 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance [Abstract] | |
Summary of Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: Six Months Ended 2019 2018 Balance at beginning of period $ 154,528 $ 146,865 Incurred related to: Current year 302,129 269,574 Prior year 77 (5,708 ) Total incurred 302,206 263,866 Paid related to: Current year 190,599 171,199 Prior year 110,587 99,054 Total paid 301,186 270,253 Balance at end of period $ 155,548 $ 140,478 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | Below is the reconciliation of the liability of "Policy claims and other benefits payable " in the Condensed Consolidated Balance Sheets . June 30, December 31, 2018 Policy claims and other benefits payable: Life insurance $ 195,799 $ 196,298 Health insurance 155,548 154,528 Total $ 351,347 $ 350,826 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension Assets by Component at Fair Value | The following table presents the assets of the Company's defined benefit pension plans at June 30, 2019 and December 31, 2018 . Pension Assets by Component at June 30, 2019 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 44,880 $ — $ 44,880 10 Utilities — 41,728 — 41,728 9 Energy — 21,479 — 21,479 5 Other corporates — 89,210 — 89,210 20 Total corporate bonds — 197,297 — 197,297 44 Exchange traded fund (1) 185,765 — — 185,765 42 Other bonds — 255 — 255 — Other long-term investments — 10,126 — 10,126 2 Guaranteed annuity contract (2) — 26,737 — 26,737 6 Short-term investments 20,699 — — 20,699 5 Other 5,415 — — 5,415 1 Total pension assets $ 211,879 $ 234,415 $ — $ 446,294 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income, to fund the obligations of the American Income Life Insurance Company Non-Exempt Employees Defined Benefit Pension Plan ("American Income Pension Plan"). Pension Assets by Component at December 31, 2018 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % to Total Corporate bonds: Financial $ — $ 44,236 $ — $ 44,236 11 Utilities — 39,443 — 39,443 10 Energy — 19,744 — 19,744 5 Other corporates — 83,202 — 83,202 22 Total corporate bonds — 186,625 — 186,625 48 Exchange traded fund (1) 157,717 — — 157,717 40 Other bonds — 245 — 245 — Other long-term investments — 8,475 — 8,475 2 Guaranteed annuity contract (2) — 26,505 — 26,505 7 Short-term investments 9,289 — — 9,289 2 Other 3,816 — — 3,816 1 Total pension assets $ 170,822 $ 221,850 $ — $ 392,672 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income, to fund the obligations of the American Income Pension Plan. |
Information Regarding the SERP | The following table includes information regarding the SERP at June 30, 2019 and December 31, 2018 . June 30, December 31, Premiums paid for insurance coverage $ 444 $ 2,997 Total investments: Company owned life insurance $ 45,326 $ 44,285 Exchange traded funds 61,048 52,659 $ 106,374 $ 96,944 |
Pension Liability | The following table presents liabilities for the defined benefit pension plans and SERP at June 30, 2019 and December 31, 2018 . June 30, December 31, Funded defined benefit pension $ 526,015 $ 481,792 SERP 75,198 74,407 Pension benefit obligation $ 601,213 $ 556,199 |
Total Cost of Retirement Plans Charged to Operations | The following table presents the net periodic benefit costs for the defined benefit pension plans and SERP by expense components for the three and six months ended June 30, 2019 and 2018 . Components of Net Periodic Benefit Cost Three Months Ended Six Months Ended 2019 2018 2019 2018 Service cost $ 4,983 $ 5,277 $ 9,965 $ 10,554 Interest cost 5,964 5,493 11,928 10,986 Expected return on assets (6,966 ) (6,363 ) (13,932 ) (12,726 ) Amortization: Prior service cost 158 119 316 238 Actuarial (gain) loss 1,896 3,636 3,790 7,272 Net periodic benefit cost $ 6,035 $ 8,162 $ 12,067 $ 16,324 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares | A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic weighted average shares outstanding 109,649,714 113,350,175 109,973,820 113,762,340 Weighted average dilutive options outstanding 1,935,962 2,301,237 1,975,492 2,434,633 Diluted weighted average shares outstanding 111,585,676 115,651,412 111,949,312 116,196,973 Antidilutive shares 1,359,686 1,381,686 1,359,686 960,753 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Segment Operating Information to Consolidated Statement of Operations | The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items: Three Months Ended June 30, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 631,201 $ 266,282 $ 1 $ — $ — $ — $ 897,484 Net investment income — — — 227,425 — — 227,425 Other income — — — — 398 — 398 Total revenue 631,201 266,282 1 227,425 398 — 1,125,307 Expenses: Policy benefits 410,961 170,511 7,890 — — — 589,362 Required interest on reserves (165,513 ) (21,680 ) (10,888 ) 198,081 — — — Required interest on DAC 50,298 6,341 127 (56,766 ) — — — Amortization of acquisition costs 110,319 27,343 503 — — — 138,165 Commissions, premium taxes, and non-deferred acquisition costs 50,086 23,608 4 — — — 73,698 Insurance administrative expense (1) — — — — 59,416 5,500 (2 ) 64,916 Parent expense — — — — 2,872 — 2,872 Stock-based compensation expense — — — — 11,256 — 11,256 Interest expense — — — 21,432 — — 21,432 Total expenses 456,151 206,123 (2,364 ) 162,747 73,544 5,500 901,701 Subtotal 175,050 60,159 2,365 64,678 (73,146 ) (5,500 ) 223,606 Non-operating items — — — — — 5,500 (2 ) 5,500 Measure of segment profitability (pretax) $ 175,050 $ 60,159 $ 2,365 $ 64,678 $ (73,146 ) $ — 229,106 Realized gain (loss)—investments 5,154 Legal proceedings (5,500 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 228,760 (1) Administrative expense is not allocated to insurance segments. (2) Legal proceedings—See Note 5 for further discussion. Three Months Ended June 30, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 602,534 $ 251,440 $ 5 $ — $ — $ — $ 853,979 Net investment income — — — 218,568 — — 218,568 Other income — — — — 441 (25 ) (2) 416 Total revenue 602,534 251,440 5 218,568 441 (25 ) 1,072,963 Expenses: Policy benefits 399,334 160,461 8,582 — — — 568,377 Required interest on reserves (158,101 ) (20,726 ) (11,885 ) 190,712 — — — Required interest on DAC 48,275 6,079 150 (54,504 ) — — — Amortization of acquisition costs 104,599 23,892 586 — — — 129,077 Commissions, premium taxes, and non-deferred acquisition costs 47,250 22,196 6 — — (25 ) (2) 69,427 Insurance administrative expense (1) — — — — 55,276 — 55,276 Parent expense — — — — 2,847 — 2,847 Stock-based compensation expense — — — — 10,497 — 10,497 Interest expense — — — 22,411 — — 22,411 Total expenses 441,357 191,902 (2,561 ) 158,619 68,620 (25 ) 857,912 Subtotal 161,177 59,538 2,566 59,949 (68,179 ) — 215,051 Non-operating items — — — — — — — Measure of segment profitability (pretax) $ 161,177 $ 59,538 $ 2,566 $ 59,949 $ (68,179 ) $ — 215,051 Realized gain (loss)—investments 11,813 Income before income taxes per Condensed Consolidated Statements of Operations $ 226,864 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. Six Months Ended June 30, 2019 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 1,255,490 $ 532,966 $ 1 $ — $ — $ — $ 1,788,457 Net investment income — — — 454,098 — — 454,098 Other income — — — — 639 — 639 Total revenue 1,255,490 532,966 1 454,098 639 — 2,243,194 Expenses: Policy benefits 820,653 340,528 15,938 — — — 1,177,119 Required interest on reserves (329,175 ) (43,176 ) (22,008 ) 394,359 — — — Required interest on DAC 100,322 12,624 258 (113,204 ) — — — Amortization of acquisition costs 218,609 54,357 1,021 — — — 273,987 Commissions, premium taxes, and non-deferred acquisition costs 100,192 46,960 11 — — — 147,163 Insurance administrative expense (1) — — — — 118,607 5,900 (2,3) 124,507 Parent expense — — — — 5,515 — 5,515 Stock-based compensation expense — — — — 21,815 — 21,815 Interest expense — — — 42,710 — — 42,710 Total expenses 910,601 411,293 (4,780 ) 323,865 145,937 5,900 1,792,816 Subtotal 344,889 121,673 4,781 130,233 (145,298 ) (5,900 ) 450,378 Non-operating items — — — — — 5,900 (2,3) 5,900 Measure of segment profitability (pretax) $ 344,889 $ 121,673 $ 4,781 $ 130,233 $ (145,298 ) $ — 456,278 Realized gain (loss)—investments 6,483 Administrative settlements (400 ) Legal proceedings (5,500 ) Income before income taxes per Condensed Consolidated Statements of Operations $ 456,861 (1) Administrative expense is not allocated to insurance segments. (2) During the first quarter of 2019 , Globe Life recorded $400 thousand in administrative settlements related to state regulatory examinations. (3) Legal proceedings—See Note 5 for further discussion. Six Months Ended June 30, 2018 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 1,200,837 $ 503,238 $ 10 $ — $ — $ — $ 1,704,085 Net investment income — — — 436,652 — — 436,652 Other income — — — — 764 (53 ) (2) 711 Total revenue 1,200,837 503,238 10 436,652 764 (53 ) 2,141,448 Expenses: Policy benefits 799,915 321,080 17,271 — — — 1,138,266 Required interest on reserves (314,315 ) (41,130 ) (23,902 ) 379,347 — — — Required interest on DAC 96,219 12,092 303 (108,614 ) — — — Amortization of acquisition costs 208,376 49,149 1,172 — — — 258,697 Commissions, premium taxes, and non-deferred acquisition costs 94,644 44,461 14 — — (53 ) (2) 139,066 Insurance administrative expense (1) — — — — 110,748 — 110,748 Parent expense — — — — 5,139 — 5,139 Stock-based compensation expense — — — — 19,557 — 19,557 Interest expense — — — 44,033 — — 44,033 Total expenses 884,839 385,652 (5,142 ) 314,766 135,444 (53 ) 1,715,506 Subtotal 315,998 117,586 5,152 121,886 (134,680 ) — 425,942 Non-operating items — — — — — — — Measure of segment profitability (pretax) $ 315,998 $ 117,586 $ 5,152 $ 121,886 $ (134,680 ) $ — 425,942 Realized gain (loss)—investments 13,764 Income before income taxes per Condensed Consolidated Statements of Operations $ 439,706 (1) Administrative expense is not allocated to insurance segments. (2) Elimination of intersegment commission. |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 4 |
Supplemental Information abou_3
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | $ 6,043,426 | $ 5,820,301 | $ 5,415,177 | $ 6,231,421 |
Other comprehensive income (loss) before reclassifications, net of tax | 568,177 | (332,921) | 1,119,025 | (819,431) |
Reclassifications, net of tax | 1,006 | (3,779) | 750 | (1,344) |
Other comprehensive income (loss) | 569,183 | (336,700) | 1,119,775 | (820,775) |
Ending balance | 6,700,398 | 5,571,609 | 6,700,398 | 5,571,609 |
Total [Member] | ||||
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | 870,067 | 940,199 | 319,475 | 1,424,274 |
Ending balance | 1,439,250 | 603,499 | 1,439,250 | 603,499 |
Available for Sale Assets | ||||
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | 984,701 | 1,082,896 | 435,698 | 1,569,289 |
Other comprehensive income (loss) before reclassifications, net of tax | 568,073 | (329,619) | 1,119,007 | (815,462) |
Reclassifications, net of tax | (666) | (6,763) | (2,597) | (7,313) |
Other comprehensive income (loss) | 567,407 | (336,382) | 1,116,410 | (822,775) |
Ending balance | 1,552,108 | 746,514 | 1,552,108 | 746,514 |
Deferred Acquisition Costs | ||||
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | (6,691) | (8,191) | (4,163) | (8,547) |
Other comprehensive income (loss) before reclassifications, net of tax | 135 | 1,612 | (2,393) | 1,968 |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | 135 | 1,612 | (2,393) | 1,968 |
Ending balance | (6,556) | (6,579) | (6,556) | (6,579) |
Foreign Exchange | ||||
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | 8,937 | 15,279 | 6,495 | 16,302 |
Other comprehensive income (loss) before reclassifications, net of tax | (31) | (4,914) | 2,411 | (5,937) |
Reclassifications, net of tax | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (31) | (4,914) | 2,411 | (5,937) |
Ending balance | 8,906 | 10,365 | 8,906 | 10,365 |
Pension Adjustments | ||||
Increase (Decrease) in AOCI, Net of Tax | ||||
Beginning balance | (116,880) | (149,785) | (118,555) | (152,770) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 | 0 | 0 |
Reclassifications, net of tax | 1,672 | 2,984 | 3,347 | 5,969 |
Other comprehensive income (loss) | 1,672 | 2,984 | 3,347 | 5,969 |
Ending balance | $ (115,208) | $ (146,801) | $ (115,208) | $ (146,801) |
Supplemental Information abou_4
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassification out of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Unrealized investment gains (losses) on available for sale assets: | ||||
Realized gains (losses) | $ (5,154) | $ (11,813) | $ (6,483) | $ (13,764) |
Amortization of (discount) premium | (227,425) | (218,568) | (454,098) | (436,652) |
Total before tax | (228,760) | (226,864) | (456,861) | (439,706) |
Income tax benefit (expense) | 42,151 | 42,471 | 84,858 | 81,602 |
Net income | (186,566) | (184,425) | (371,911) | (358,025) |
Pension adjustments: | ||||
Income tax benefit (expense) | 42,151 | 42,471 | 84,858 | 81,602 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Unrealized investment gains (losses) on available for sale assets: | ||||
Net income | 1,006 | (3,779) | 750 | (1,344) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Assets | ||||
Unrealized investment gains (losses) on available for sale assets: | ||||
Realized gains (losses) | (2,237) | (9,431) | (5,907) | (10,817) |
Amortization of (discount) premium | 1,394 | 870 | 2,620 | 1,560 |
Total before tax | (843) | (8,561) | (3,287) | (9,257) |
Income tax benefit (expense) | 177 | 1,798 | 690 | 1,944 |
Net income | (666) | (6,763) | (2,597) | (7,313) |
Pension adjustments: | ||||
Income tax benefit (expense) | 177 | 1,798 | 690 | 1,944 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost | ||||
Pension adjustments: | ||||
Pension adjustments | 158 | 119 | 316 | 238 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial (gain) loss | ||||
Pension adjustments: | ||||
Pension adjustments | 1,960 | 3,659 | 3,922 | 7,318 |
Reclassification out of Accumulated Other Comprehensive Income | Pension Adjustments | ||||
Unrealized investment gains (losses) on available for sale assets: | ||||
Total before tax | 2,118 | 3,778 | 4,238 | 7,556 |
Income tax benefit (expense) | (446) | (794) | (891) | (1,587) |
Net income | 1,672 | 2,984 | 3,347 | 5,969 |
Pension adjustments: | ||||
Income tax benefit (expense) | $ (446) | $ (794) | $ (891) | $ (1,587) |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 15,984,272 | $ 15,753,471 |
Fair Value | 17,934,274 | 16,297,932 |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | 15,984,272 | 15,753,471 |
Gross Unrealized Gains | 2,059,332 | 972,840 |
Gross Unrealized Losses | (109,330) | (428,379) |
Fair Value | $ 17,934,274 | $ 16,297,932 |
Percentage Of Fixed Maturities At Fair Value | 100.00% | 100.00% |
Fixed maturities available for sale | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 393,915 | $ 390,351 |
Gross Unrealized Gains | 38,353 | 5,104 |
Gross Unrealized Losses | (420) | (2,787) |
Fair Value | $ 431,848 | $ 392,668 |
Percentage Of Fixed Maturities At Fair Value | 3.00% | 2.00% |
Fixed maturities available for sale | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 1,365,345 | $ 1,354,810 |
Gross Unrealized Gains | 139,098 | 83,600 |
Gross Unrealized Losses | (178) | (1,750) |
Fair Value | $ 1,504,265 | $ 1,436,660 |
Percentage Of Fixed Maturities At Fair Value | 8.00% | 9.00% |
Fixed maturities available for sale | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 18,732 | $ 19,006 |
Gross Unrealized Gains | 2,319 | 1,810 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 21,051 | $ 20,816 |
Percentage Of Fixed Maturities At Fair Value | 0.00% | 0.00% |
Fixed maturities available for sale | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 14,003,840 | $ 13,784,681 |
Gross Unrealized Gains | 1,846,136 | 858,125 |
Gross Unrealized Losses | (101,939) | (416,794) |
Fair Value | $ 15,748,037 | $ 14,226,012 |
Percentage Of Fixed Maturities At Fair Value | 88.00% | 87.00% |
Fixed maturities available for sale | Corporates | Financial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 3,980,362 | $ 3,759,768 |
Gross Unrealized Gains | 557,883 | 262,875 |
Gross Unrealized Losses | (30,471) | (87,515) |
Fair Value | $ 4,507,774 | $ 3,935,128 |
Percentage Of Fixed Maturities At Fair Value | 25.00% | 24.00% |
Fixed maturities available for sale | Corporates | Utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 1,958,277 | $ 1,989,506 |
Gross Unrealized Gains | 359,882 | 217,846 |
Gross Unrealized Losses | (6,211) | (24,399) |
Fair Value | $ 2,311,948 | $ 2,182,953 |
Percentage Of Fixed Maturities At Fair Value | 13.00% | 13.00% |
Fixed maturities available for sale | Corporates | Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 1,632,744 | $ 1,652,700 |
Gross Unrealized Gains | 233,498 | 93,880 |
Gross Unrealized Losses | (28,863) | (62,371) |
Fair Value | $ 1,837,379 | $ 1,684,209 |
Percentage Of Fixed Maturities At Fair Value | 10.00% | 10.00% |
Fixed maturities available for sale | Corporates | Other corporate sectors | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 6,432,457 | $ 6,382,707 |
Gross Unrealized Gains | 694,873 | 283,524 |
Gross Unrealized Losses | (36,394) | (242,509) |
Fair Value | $ 7,090,936 | $ 6,423,722 |
Percentage Of Fixed Maturities At Fair Value | 40.00% | 40.00% |
Fixed maturities available for sale | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 57,172 | $ 57,769 |
Gross Unrealized Gains | 28,403 | 22,014 |
Gross Unrealized Losses | (6,497) | (6,414) |
Fair Value | $ 79,078 | $ 73,369 |
Percentage Of Fixed Maturities At Fair Value | 0.00% | 1.00% |
Fixed maturities available for sale | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Cost or Amortized Cost | $ 145,268 | $ 146,854 |
Gross Unrealized Gains | 5,023 | 2,187 |
Gross Unrealized Losses | (296) | (634) |
Fair Value | $ 149,995 | $ 148,407 |
Percentage Of Fixed Maturities At Fair Value | 1.00% | 1.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed Maturities Available for Sale, Amortized Cost | ||
Due in one year or less | $ 151,815 | |
Due after one year through five years | 631,205 | |
Due after five years through ten years | 1,646,091 | |
Due after ten years through twenty years | 5,211,263 | |
Due after twenty years | 8,140,905 | |
Mortgage-backed and asset-backed securities | 202,993 | |
Total fixed maturities available for sale, Amortized Cost | 15,984,272 | $ 15,753,471 |
Fixed Maturities Available for Sale, Fair Value | ||
Due in one year or less | 153,027 | |
Due after one year through five years | 674,283 | |
Due after five years through ten years | 1,867,864 | |
Due after ten years through twenty years | 6,086,465 | |
Due after twenty years | 8,922,971 | |
Mortgage-backed and asset-backed securities | 229,664 | |
Total fixed maturities available for sale, Fair Value | $ 17,934,274 | $ 16,297,932 |
Investments - Schedule of Analy
Investments - Schedule of Analysis of Investment Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Investment income, gross | $ 231,442 | $ 222,525 | $ 462,048 | $ 444,510 |
Less investment expense | (4,017) | (3,957) | (7,950) | (7,858) |
Net investment income | 227,425 | 218,568 | 454,098 | 436,652 |
Fixed maturities available for sale | ||||
Net Investment Income [Line Items] | ||||
Investment income, gross | 215,867 | 209,771 | 431,630 | 418,313 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Investment income, gross | 10,821 | 10,201 | 21,457 | 20,399 |
Other long-term investments | ||||
Net Investment Income [Line Items] | ||||
Investment income, gross | 3,991 | 2,120 | 7,379 | 4,974 |
Short-term investments | ||||
Net Investment Income [Line Items] | ||||
Investment income, gross | $ 763 | $ 433 | $ 1,582 | $ 824 |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | $ 34,997,000 | $ 0 | ||
Unsettled sales | $ 0 | $ 0 | 0 | 0 |
Fixed maturities available for sale | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales | 0 | 0 | 34,997,000 | 0 |
Gross realized gains | 0 | 0 | 46,000 | 0 |
Gross realized losses | $ 0 | $ 0 | $ (3,027,000) | $ 0 |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Gain (Loss) on Securities [Line Items] | ||||
Realized gains (losses) | $ 5,154 | $ 11,813 | $ 6,483 | $ 13,764 |
Applicable tax | (1,082) | (2,480) | (1,361) | (2,890) |
Realized gains (losses), net of tax | 4,072 | 9,333 | 5,122 | 10,874 |
Fixed maturities available for sale | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized gains (losses) | 2,237 | 9,431 | 5,907 | 10,817 |
Fair value option—change in fair value | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized gains (losses) | 2,869 | 2,301 | 684 | 2,861 |
Other investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized gains (losses) | $ 48 | $ 81 | $ (108) | $ 86 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 17,934,274 | $ 16,297,932 |
Percentage of total | 100.00% | 100.00% |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of total | 0.00% | 0.00% |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of total | 96.00% | 96.00% |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of total | 4.00% | 4.00% |
Fixed maturities available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 17,934,274 | $ 16,297,932 |
Fixed maturities available for sale | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 431,848 | 392,668 |
Fixed maturities available for sale | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,504,265 | 1,436,660 |
Fixed maturities available for sale | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 21,051 | 20,816 |
Fixed maturities available for sale | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,748,037 | 14,226,012 |
Fixed maturities available for sale | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,507,774 | 3,935,128 |
Fixed maturities available for sale | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,311,948 | 2,182,953 |
Fixed maturities available for sale | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,837,379 | 1,684,209 |
Fixed maturities available for sale | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 7,090,936 | 6,423,722 |
Fixed maturities available for sale | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 79,078 | 73,369 |
Fixed maturities available for sale | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 149,995 | 148,407 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,472 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,472 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,472 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 17,262,350 | 15,658,110 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 431,848 | 392,668 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,504,265 | 1,436,660 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 21,051 | 20,816 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 15,168,394 | 13,672,541 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4,462,768 | 3,891,728 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,149,087 | 2,032,127 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,796,186 | 1,645,077 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,760,353 | 6,103,609 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Other Observable Inputs (Level 2) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 136,792 | 135,425 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 662,452 | 639,822 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | States, municipalities, and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Foreign governments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 570,171 | 553,471 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Financial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 45,006 | 43,400 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 153,389 | 150,826 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Energy | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 41,193 | 39,132 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Corporates | Other corporate sectors | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 330,583 | 320,113 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 79,078 | 73,369 |
Fixed maturities available for sale | Significant Unobservable Inputs (Level 3) | Other asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 13,203 | $ 12,982 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 639,822 | $ 668,440 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | 30,367 | (15,125) |
Acquisitions | 0 | 20,300 |
Sales | 0 | 0 |
Amortization | 2,322 | 2,397 |
Other | (10,059) | (9,853) |
Transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | $ 662,452 | $ 666,159 |
Percent of total fixed maturities | 4.00% | 4.00% |
Asset- backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 12,982 | $ 14,049 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | 441 | (697) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | (220) | (199) |
Transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | $ 13,203 | $ 13,153 |
Percent of total fixed maturities | 0.00% | 0.00% |
Collateralized debt obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 73,369 | $ 71,581 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | 6,306 | 5,183 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 2,315 | 2,389 |
Other | (2,912) | (2,957) |
Transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | $ 79,078 | $ 76,196 |
Percent of total fixed maturities | 1.00% | 0.00% |
Corporates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 553,471 | $ 582,810 |
Included in realized gains / losses | 0 | 0 |
Included in other comprehensive income | 23,620 | (19,611) |
Acquisitions | 0 | 20,300 |
Sales | 0 | 0 |
Amortization | 7 | 8 |
Other | (6,927) | (6,697) |
Transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | $ 570,171 | $ 576,810 |
Percent of total fixed maturities | 3.00% | 4.00% |
Investments - Transfers in and
Investments - Transfers in and Out of Each of the Valuation Levels of Fair Values (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | ||
In | $ 14,572 | $ 0 |
Out | 0 | 0 |
Net | 14,572 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | ||
In | 0 | 0 |
Out | (14,572) | 0 |
Net | (14,572) | 0 |
Significant Unobservable Inputs (Level 3) | ||
Transfers In And Out Of Each Of The Valuation Levels Of Fair Values Of Investments[Line Items] | ||
In | 0 | 0 |
Out | 0 | 0 |
Net | $ 0 | $ 0 |
Investments - Schedule of Other
Investments - Schedule of Other Long-Term Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment [Line Items] | ||
Other long-term investments under fair value option | $ 289,147 | $ 207,258 |
Commercial mortgage participations | ||
Investment [Line Items] | ||
Other long-term investments under fair value option | 120,599 | 96,266 |
Other | ||
Investment [Line Items] | ||
Other long-term investments under fair value option | 3,122 | 2,751 |
Partnership Interest - Fair Value Option | Investment in limited partnerships | ||
Investment [Line Items] | ||
Other long-term investments under fair value option | $ 165,426 | $ 108,241 |
Investments Investments - Fair
Investments Investments - Fair Value Option (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net Gains and Losses Recognized During the Period | $ 684 | $ 2,861 | |
Less Net Gains and Losses Recognized due to Sales | 0 | 0 | |
Total Changes in Fair Values Included in Current-Period Earnings | 684 | $ 2,861 | |
Partnership Interest - Fair Value Option | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Limited partnerships, fair value | 165,426 | $ 108,241 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Partnership Interest - Fair Value Option | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Limited partnerships, fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Partnership Interest - Fair Value Option | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Limited partnerships, fair value | 165,426 | 108,241 | |
Significant Unobservable Inputs (Level 3) | Partnership Interest - Fair Value Option | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Limited partnerships, fair value | $ 0 | $ 0 |
Investments - Schedule of Addit
Investments - Schedule of Additional Information about Investments in Unrealized Loss Position (Detail) - Issue | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than Twelve Months | 16 | 495 |
Twelve Months or Longer | 148 | 234 |
Total | 164 | 729 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Issue | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Issue | Jun. 30, 2018USD ($) | Dec. 31, 2018Issue | |
Investment [Line Items] | |||||
Total issues of fixed-maturities | Issue | 1,588 | 1,588 | 1,548 | ||
Fixed maturities available for sale | |||||
Investment [Line Items] | |||||
Other-than-temporary impairment | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 192,313 | $ 4,698,830 |
Unrealized Loss | (3,188) | (252,192) |
Fair Value | 1,154,336 | 1,290,990 |
Unrealized Loss | (106,142) | (176,187) |
Fair Value | 1,346,649 | 5,989,820 |
Total | 109,330 | 428,379 |
Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 135,740 | 4,458,883 |
Unrealized Loss | (237) | (229,105) |
Fair Value | 880,078 | 1,091,128 |
Unrealized Loss | (32,406) | (106,067) |
Fair Value | 1,015,818 | 5,550,011 |
Total | 32,643 | 335,172 |
Investment Grade | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2 | 37,182 |
Unrealized Loss | 0 | (212) |
Fair Value | 28,896 | 89,664 |
Unrealized Loss | (420) | (2,575) |
Fair Value | 28,898 | 126,846 |
Total | 420 | 2,787 |
Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 29,960 | 124,907 |
Unrealized Loss | (40) | (1,648) |
Fair Value | 0 | 7,981 |
Unrealized Loss | 0 | (102) |
Fair Value | 29,960 | 132,888 |
Total | 40 | 1,750 |
Investment Grade | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | |
Unrealized Loss | 0 | |
Fair Value | 0 | |
Unrealized Loss | 0 | |
Fair Value | 0 | |
Total | 0 | |
Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 105,716 | 4,252,191 |
Unrealized Loss | (197) | (226,611) |
Fair Value | 851,182 | 993,483 |
Unrealized Loss | (31,986) | (103,390) |
Fair Value | 956,898 | 5,245,674 |
Total | 32,183 | 330,001 |
Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 62 | 44,603 |
Unrealized Loss | 0 | (634) |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 62 | 44,603 |
Total | 0 | 634 |
Below Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 56,573 | 239,947 |
Unrealized Loss | (2,951) | (23,087) |
Fair Value | 274,258 | 199,862 |
Unrealized Loss | (73,736) | (70,120) |
Fair Value | 330,831 | 439,809 |
Total | 76,687 | 93,207 |
Below Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 82 | |
Unrealized Loss | (138) | |
Fair Value | 0 | |
Unrealized Loss | 0 | |
Fair Value | 82 | |
Total | 138 | |
Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 42,387 | 239,947 |
Unrealized Loss | (2,517) | (23,087) |
Fair Value | 260,755 | 186,276 |
Unrealized Loss | (67,239) | (63,706) |
Fair Value | 303,142 | 426,223 |
Total | 69,756 | 86,793 |
Below Investment Grade | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 13,503 | 13,586 |
Unrealized Loss | (6,497) | (6,414) |
Fair Value | 13,503 | 13,586 |
Total | 6,497 | 6,414 |
Below Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 14,104 | |
Unrealized Loss | (296) | |
Fair Value | 0 | |
Unrealized Loss | 0 | |
Fair Value | 14,104 | |
Total | 296 | |
Financial | Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 74,915 | 931,161 |
Unrealized Loss | (85) | (36,337) |
Fair Value | 130,430 | 241,442 |
Unrealized Loss | (4,854) | (21,572) |
Fair Value | 205,345 | 1,172,603 |
Total | 4,939 | 57,909 |
Financial | Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 7,379 | 22,087 |
Unrealized Loss | (450) | (8,674) |
Fair Value | 122,459 | 81,101 |
Unrealized Loss | (25,082) | (20,932) |
Fair Value | 129,838 | 103,188 |
Total | 25,532 | 29,606 |
Utilities | Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 329,753 |
Unrealized Loss | 0 | (11,680) |
Fair Value | 73,863 | 121,308 |
Unrealized Loss | (1,126) | (9,442) |
Fair Value | 73,863 | 451,061 |
Total | 1,126 | 21,122 |
Utilities | Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 15,449 | 28,613 |
Unrealized Loss | (1,136) | (3,277) |
Fair Value | 12,300 | 0 |
Unrealized Loss | (3,949) | 0 |
Fair Value | 27,749 | 28,613 |
Total | 5,085 | 3,277 |
Energy | Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 6,198 | 475,736 |
Unrealized Loss | (80) | (29,426) |
Fair Value | 65,067 | 54,937 |
Unrealized Loss | (6,781) | (9,382) |
Fair Value | 71,265 | 530,673 |
Total | 6,861 | 38,808 |
Energy | Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 2,872 | 42,874 |
Unrealized Loss | (346) | (3,901) |
Fair Value | 44,046 | 36,122 |
Unrealized Loss | (21,656) | (19,662) |
Fair Value | 46,918 | 78,996 |
Total | 22,002 | 23,563 |
Other corporate sectors | Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 24,603 | 2,515,541 |
Unrealized Loss | (32) | (149,168) |
Fair Value | 581,822 | 575,796 |
Unrealized Loss | (19,225) | (62,994) |
Fair Value | 606,425 | 3,091,337 |
Total | 19,257 | 212,162 |
Other corporate sectors | Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 16,687 | 146,373 |
Unrealized Loss | (585) | (7,235) |
Fair Value | 81,950 | 69,053 |
Unrealized Loss | (16,552) | (23,112) |
Fair Value | 98,637 | 215,426 |
Total | $ 17,137 | $ 30,347 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Jun. 30, 2019 | Apr. 02, 2019 | Apr. 01, 2019 |
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Letters of credit facility outstanding | $ 150,000,000 | $ 155,000,000 | |
Letter of Credit | |||
Obligation with Joint and Several Liability Arrangement [Line Items] | |||
Letter of credit maximum available amount | $ 250,000,000 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - Other premium - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Activity in the Liability for Unpaid Health Claims | ||
Balance at beginning of period | $ 154,528 | $ 146,865 |
Incurred related to: | ||
Current year | 302,129 | 269,574 |
Prior year | 77 | (5,708) |
Total incurred | 302,206 | 263,866 |
Paid related to: | ||
Current year | 190,599 | 171,199 |
Prior year | 110,587 | 99,054 |
Total paid | 301,186 | 270,253 |
Balance at end of period | $ 155,548 | $ 140,478 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Policy claims and other benefits payable: | ||
Life insurance | $ 195,799 | $ 196,298 |
Policy claims and other benefits payable | 351,347 | 350,826 |
Other premium | ||
Policy claims and other benefits payable: | ||
Policy claims and other benefits payable | $ 155,548 | $ 154,528 |
Postretirement Benefits - Pensi
Postretirement Benefits - Pension Assets by Components at Fair Value (Detail) - Funded defined benefit pension - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 446,294 | $ 392,672 |
Total percentage | 100.00% | 100.00% |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 211,879 | $ 170,822 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 234,415 | 221,850 |
Financial | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 44,880 | $ 44,236 |
Total percentage | 10.00% | 11.00% |
Financial | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 44,880 | $ 44,236 |
Utilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 41,728 | $ 39,443 |
Total percentage | 9.00% | 10.00% |
Utilities | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 41,728 | $ 39,443 |
Energy | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 21,479 | $ 19,744 |
Total percentage | 5.00% | 5.00% |
Energy | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 21,479 | $ 19,744 |
Other corporates | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 89,210 | $ 83,202 |
Total percentage | 20.00% | 22.00% |
Other corporates | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 89,210 | $ 83,202 |
Total corporate bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 197,297 | $ 186,625 |
Total percentage | 44.00% | 48.00% |
Total corporate bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 197,297 | $ 186,625 |
Exchange Traded Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 185,765 | $ 157,717 |
Total percentage | 42.00% | 40.00% |
Exchange Traded Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 185,765 | $ 157,717 |
Other bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 255 | $ 245 |
Total percentage | 0.00% | 0.00% |
Other bonds | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 255 | $ 245 |
Other long-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10,126 | $ 8,475 |
Total percentage | 2.00% | 2.00% |
Other long-term investments | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 10,126 | $ 8,475 |
Guaranteed Annuity Contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 26,737 | $ 26,505 |
Total percentage | 6.00% | 7.00% |
Guaranteed Annuity Contract | Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 26,737 | $ 26,505 |
Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 20,699 | $ 9,289 |
Total percentage | 5.00% | 2.00% |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 20,699 | $ 9,289 |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 5,415 | $ 3,816 |
Total percentage | 1.00% | 1.00% |
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 5,415 | $ 3,816 |
Postretirement Benefits - Activ
Postretirement Benefits - Activity for the SERP (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Premiums paid for insurance coverage | $ 444 | $ 2,997 |
Company owned life insurance | 45,326 | 44,285 |
Exchange traded funds | 61,048 | 52,659 |
Total investments of SERP | $ 106,374 | $ 96,944 |
Postretirement Benefits - Pen_2
Postretirement Benefits - Pension and SERP Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 601,213 | $ 556,199 |
Funded defined benefit pension | Funded defined benefit pension | Funded defined benefit pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | 526,015 | 481,792 |
SERP | SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
PBO | $ 75,198 | $ 74,407 |
Postretirement Benefits - Compo
Postretirement Benefits - Components of Net Periodic Pension Costs and Post-Retirement Benefit Costs (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 4,983 | $ 5,277 | $ 9,965 | $ 10,554 |
Interest cost | 5,964 | 5,493 | 11,928 | 10,986 |
Expected return on assets | (6,966) | (6,363) | (13,932) | (12,726) |
Prior service cost | 158 | 119 | 316 | 238 |
Actuarial (gain) loss | 1,896 | 3,636 | 3,790 | 7,272 |
Net periodic benefit cost | $ 6,035 | $ 8,162 | $ 12,067 | $ 16,324 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Basic weighted average shares outstanding | 109,649,714 | 113,350,175 | 109,973,820 | 113,762,340 |
Weighted average dilutive options outstanding | 1,935,962 | 2,301,237 | 1,975,492 | 2,434,633 |
Diluted weighted average shares outstanding | 111,585,676 | 115,651,412 | 111,949,312 | 116,196,973 |
Antidilutive shares | 1,359,686 | 1,381,686 | 1,359,686 | 960,753 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019segment | |
Segment Reporting [Abstract] | |
Number of segments | 4 |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | |||||
Premium | $ 897,484 | $ 853,979 | $ 1,788,457 | $ 1,704,085 | |
Net investment income | 227,425 | 218,568 | 454,098 | 436,652 | |
Other income | 398 | 416 | 639 | 711 | |
Total revenue | 1,125,307 | 1,072,963 | 2,243,194 | 2,141,448 | |
Expenses: | |||||
Policy benefits | 589,362 | 568,377 | 1,177,119 | 1,138,266 | |
Required interest on reserves | 0 | 0 | 0 | 0 | |
Required interest on DAC | 0 | 0 | 0 | 0 | |
Amortization of acquisition costs | 138,165 | 129,077 | 273,987 | 258,697 | |
Commissions, premium taxes, and non-deferred acquisition costs | 73,698 | 69,427 | 147,163 | 139,066 | |
Insurance administrative expense | 64,916 | 55,276 | 124,507 | 110,748 | |
Parent expense | 2,872 | 2,847 | 5,515 | 5,139 | |
Stock-based compensation expense | 11,256 | 10,497 | 21,815 | 19,557 | |
Interest expense | 21,432 | 22,411 | 42,710 | 44,033 | |
Total benefits and expenses | 901,701 | 857,912 | 1,792,816 | 1,715,506 | |
Subtotal | 223,606 | 215,051 | 450,378 | 425,942 | |
Non-operating items | 5,500 | 0 | 5,900 | 0 | |
Measure of segment profitability (pretax) | 229,106 | 215,051 | 456,278 | 425,942 | |
Realized gain (loss)—investments | 5,154 | 11,813 | 6,483 | 13,764 | |
Administrative settlements | $ (400) | (400) | |||
Legal proceedings | (5,500) | (5,500) | |||
Income before income taxes | 228,760 | 226,864 | 456,861 | 439,706 | |
Operating Segments | Life | |||||
Revenue: | |||||
Premium | 631,201 | 602,534 | 1,255,490 | 1,200,837 | |
Total revenue | 631,201 | 602,534 | 1,255,490 | 1,200,837 | |
Expenses: | |||||
Policy benefits | 410,961 | 399,334 | 820,653 | 799,915 | |
Required interest on reserves | (165,513) | (158,101) | (329,175) | (314,315) | |
Required interest on DAC | 50,298 | 48,275 | 100,322 | 96,219 | |
Amortization of acquisition costs | 110,319 | 104,599 | 218,609 | 208,376 | |
Commissions, premium taxes, and non-deferred acquisition costs | 50,086 | 47,250 | 100,192 | 94,644 | |
Total benefits and expenses | 456,151 | 441,357 | 910,601 | 884,839 | |
Subtotal | 175,050 | 161,177 | 344,889 | 315,998 | |
Measure of segment profitability (pretax) | 175,050 | 161,177 | 344,889 | 315,998 | |
Operating Segments | Health | |||||
Revenue: | |||||
Premium | 266,282 | 251,440 | 532,966 | 503,238 | |
Total revenue | 266,282 | 251,440 | 532,966 | 503,238 | |
Expenses: | |||||
Policy benefits | 170,511 | 160,461 | 340,528 | 321,080 | |
Required interest on reserves | (21,680) | (20,726) | (43,176) | (41,130) | |
Required interest on DAC | 6,341 | 6,079 | 12,624 | 12,092 | |
Amortization of acquisition costs | 27,343 | 23,892 | 54,357 | 49,149 | |
Commissions, premium taxes, and non-deferred acquisition costs | 23,608 | 22,196 | 46,960 | 44,461 | |
Total benefits and expenses | 206,123 | 191,902 | 411,293 | 385,652 | |
Subtotal | 60,159 | 59,538 | 121,673 | 117,586 | |
Measure of segment profitability (pretax) | 60,159 | 59,538 | 121,673 | 117,586 | |
Operating Segments | Annuity | |||||
Revenue: | |||||
Premium | 1 | 5 | 1 | 10 | |
Total revenue | 1 | 5 | 1 | 10 | |
Expenses: | |||||
Policy benefits | 7,890 | 8,582 | 15,938 | 17,271 | |
Required interest on reserves | (10,888) | (11,885) | (22,008) | (23,902) | |
Required interest on DAC | 127 | 150 | 258 | 303 | |
Amortization of acquisition costs | 503 | 586 | 1,021 | 1,172 | |
Commissions, premium taxes, and non-deferred acquisition costs | 4 | 6 | 11 | 14 | |
Total benefits and expenses | (2,364) | (2,561) | (4,780) | (5,142) | |
Subtotal | 2,365 | 2,566 | 4,781 | 5,152 | |
Measure of segment profitability (pretax) | 2,365 | 2,566 | 4,781 | 5,152 | |
Operating Segments | Investment | |||||
Revenue: | |||||
Net investment income | 227,425 | 218,568 | 454,098 | 436,652 | |
Total revenue | 227,425 | 218,568 | 454,098 | 436,652 | |
Expenses: | |||||
Required interest on reserves | 198,081 | 190,712 | 394,359 | 379,347 | |
Required interest on DAC | (56,766) | (54,504) | (113,204) | (108,614) | |
Interest expense | 21,432 | 22,411 | 42,710 | 44,033 | |
Total benefits and expenses | 162,747 | 158,619 | 323,865 | 314,766 | |
Subtotal | 64,678 | 59,949 | 130,233 | 121,886 | |
Measure of segment profitability (pretax) | 64,678 | 59,949 | 130,233 | 121,886 | |
Operating Segments | Corporate & Other | |||||
Revenue: | |||||
Other income | 398 | 441 | 639 | 764 | |
Total revenue | 398 | 441 | 639 | 764 | |
Expenses: | |||||
Insurance administrative expense | 59,416 | 55,276 | 118,607 | 110,748 | |
Parent expense | 2,872 | 2,847 | 5,515 | 5,139 | |
Stock-based compensation expense | 11,256 | 10,497 | 21,815 | 19,557 | |
Total benefits and expenses | 73,544 | 68,620 | 145,937 | 135,444 | |
Subtotal | (73,146) | (68,179) | (145,298) | (134,680) | |
Measure of segment profitability (pretax) | (73,146) | (68,179) | (145,298) | (134,680) | |
Adjustments | |||||
Revenue: | |||||
Net investment income | 0 | ||||
Other income | 0 | (25) | 0 | (53) | |
Total revenue | 0 | (25) | 0 | (53) | |
Expenses: | |||||
Policy benefits | 0 | 0 | |||
Amortization of acquisition costs | 0 | ||||
Commissions, premium taxes, and non-deferred acquisition costs | 0 | (25) | 0 | (53) | |
Insurance administrative expense | 5,500 | 5,900 | |||
Interest expense | 0 | ||||
Total benefits and expenses | 5,500 | (25) | 5,900 | (53) | |
Subtotal | (5,500) | 0 | (5,900) | 0 | |
Non-operating items | 5,500 | 0 | 5,900 | 0 | |
Measure of segment profitability (pretax) | $ 0 | $ 0 | $ 0 | $ 0 |
Uncategorized Items - gl201910-
Label | Element | Value | |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (497,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 4,896,000 | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (497,000) | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 4,896,000 | |
[1] | See further discussion in Note 2—New Accounting Standards . |