CITIZENS, INC. |
(Exact name of registrant as specified in its charter) |
Colorado | 84-0755371 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
400 East Anderson Lane, Austin, TX | 78752 |
(Address of principal executive offices) | (Zip Code) |
(512) 837-7100 |
N/A |
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No | |||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes o No | |||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definition of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one): | |||
Large accelerated filer ¨ | Accelerated filer x | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No |
Page Number | |||
Part I. | Financial Information | ||
Item 1. | |||
Consolidated Statements of Financial Position, June 30, 2016 (Unaudited) and December 31, 2015 | |||
Consolidated Statements of Comprehensive Income, Three Months Ended June 30, 2016 and 2015 (Unaudited) | |||
Consolidated Statements of Comprehensive Income, Six Months Ended June 30, 2016 and 2015 (Unaudited) | |||
Consolidated Statements of Cash Flows, Six Months Ended June 30, 2016 and 2015 (Unaudited) | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II. | Other Information | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Financial Position (In thousands) | ||||||
June 30, 2016 | December 31, 2015 | |||||
Assets | (Unaudited) | |||||
Investments: | ||||||
Fixed maturities available-for-sale, at fair value (cost: $784,934 and $714,137 in 2016 and 2015, respectively) | $ | 835,473 | 735,648 | |||
Fixed maturities held-to-maturity, at amortized cost (fair value: $270,051 and $264,966 in 2016 and 2015, respectively) | 256,165 | 259,953 | ||||
Equity securities available-for-sale, at fair value (cost: $22,729 and $23,727 in 2016 and 2015, respectively) | 23,234 | 23,438 | ||||
Mortgage loans on real estate | 468 | 594 | ||||
Policy loans | 63,157 | 60,166 | ||||
Real estate held for investment (less $1,795 and $1,721 accumulated depreciation in 2016 and 2015, respectively) | 7,869 | 7,956 | ||||
Other long-term investments | 75 | 75 | ||||
Short-term investments | 521 | 251 | ||||
Total investments | 1,186,962 | 1,088,081 | ||||
Cash and cash equivalents | 52,937 | 82,827 | ||||
Accrued investment income | 16,719 | 15,406 | ||||
Receivable for securities | 653 | — | ||||
Reinsurance recoverable | 4,068 | 4,166 | ||||
Deferred policy acquisition costs | 165,860 | 165,362 | ||||
Cost of customer relationships acquired | 20,173 | 21,585 | ||||
Goodwill | 17,255 | 17,255 | ||||
Other intangible assets | 969 | 971 | ||||
Deferred tax asset | 60,874 | 68,764 | ||||
Property and equipment, net | 6,546 | 6,338 | ||||
Due premiums, net (less $1,446 and $1,490 allowance for doubtful accounts in 2016 and 2015, respectively) | 11,485 | 11,819 | ||||
Prepaid expenses | 1,215 | 162 | ||||
Other assets | 1,286 | 1,304 | ||||
Total assets | $ | 1,547,002 | 1,484,040 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Financial Position (In thousands, except share amounts) | ||||||
June 30, 2016 | December 31, 2015 | |||||
Liabilities and Stockholders' Equity | (Unaudited) | |||||
Liabilities: | ||||||
Policy liabilities: | ||||||
Future policy benefit reserves: | ||||||
Life insurance | $ | 1,026,980 | 995,972 | |||
Annuities | 67,200 | 64,933 | ||||
Accident and health | 1,075 | 1,118 | ||||
Dividend accumulations | 19,362 | 18,465 | ||||
Premiums paid in advance | 45,180 | 43,220 | ||||
Policy claims payable | 9,400 | 9,653 | ||||
Other policyholders' funds | 7,230 | 7,518 | ||||
Total policy liabilities | 1,176,427 | 1,140,879 | ||||
Commissions payable | 2,424 | 2,757 | ||||
Federal income tax payable | 73,473 | 71,225 | ||||
Payable for securities in process of settlement | 7,363 | 2,457 | ||||
Other liabilities | 26,238 | 24,205 | ||||
Total liabilities | 1,285,925 | 1,241,523 | ||||
Commitments and contingencies (Note 7) | ||||||
Stockholders' equity: | ||||||
Class A, no par value, 100,000,000 shares authorized, 52,215,852 shares issued and outstanding in 2015 and 2014, including shares in treasury of 3,135,738 in 2015 and 2014 | 259,383 | 259,383 | ||||
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2015 and 2014 | 3,184 | 3,184 | ||||
Accumulated deficit | (23,256 | ) | (22,626 | ) | ||
Accumulated other comprehensive income: | ||||||
Unrealized gains on securities, net of tax | 32,777 | 13,587 | ||||
Treasury stock, at cost | (11,011 | ) | (11,011 | ) | ||
Total stockholders' equity | 261,077 | 242,517 | ||||
Total liabilities and stockholders' equity | $ | 1,547,002 | 1,484,040 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Comprehensive Income Three Months Ended June 30, (In thousands, except per share amounts) (Unaudited) | |||||||||||||
2016 | 2015 | ||||||||||||
Revenues: | |||||||||||||
Premiums: | |||||||||||||
Life insurance | $ | 47,351 | 46,748 | ||||||||||
Accident and health insurance | 395 | 421 | |||||||||||
Property insurance | 1,261 | 1,291 | |||||||||||
Net investment income | 12,000 | 11,201 | |||||||||||
Realized investment losses, net | (26 | ) | (8 | ) | |||||||||
Other income | 256 | 426 | |||||||||||
Total revenues | 61,237 | 60,079 | |||||||||||
Benefits and expenses: | |||||||||||||
Insurance benefits paid or provided: | |||||||||||||
Claims and surrenders | 20,969 | 19,240 | |||||||||||
Increase in future policy benefit reserves | 17,675 | 19,760 | |||||||||||
Policyholders' dividends | 1,816 | 2,540 | |||||||||||
Total insurance benefits paid or provided | 40,460 | 41,540 | |||||||||||
Commissions | 10,777 | 10,805 | |||||||||||
Other general expenses | 8,566 | 10,445 | |||||||||||
Capitalization of deferred policy acquisition costs | (8,103 | ) | (8,036 | ) | |||||||||
Amortization of deferred policy acquisition costs | 6,827 | 5,647 | |||||||||||
Amortization of cost of customer relationships acquired | 402 | 516 | |||||||||||
Total benefits and expenses | 58,929 | 60,917 | |||||||||||
Income (loss) before federal income tax | 2,308 | (838 | ) | ||||||||||
Federal income tax expense | 989 | 1,076 | |||||||||||
Net income (loss) | 1,319 | (1,914 | ) | ||||||||||
Per Share Amounts: | |||||||||||||
Basic earnings per share of Class A common stock | $ | 0.03 | (0.04 | ) | |||||||||
Basic earnings per share of Class B common stock | 0.01 | (0.02 | ) | ||||||||||
Diluted earnings per share of Class A common stock | 0.03 | (0.04 | ) | ||||||||||
Diluted earnings per share of Class B common stock | 0.01 | (0.02 | ) | ||||||||||
Other comprehensive income (loss): | |||||||||||||
Unrealized gains (losses) on available-for-sale securities: | |||||||||||||
Unrealized holding gains (losses) arising during period | 16,374 | (16,778 | ) | ||||||||||
Reclassification adjustment for losses included in net income | 20 | 8 | |||||||||||
Unrealized gains (losses) on available-for-sale securities, net | 16,394 | (16,770 | ) | ||||||||||
Income tax expense (benefit) on unrealized gains (losses) on available-for-sale securities | 5,738 | (5,869 | ) | ||||||||||
Other comprehensive income (loss) | 10,656 | (10,901 | ) | ||||||||||
Comprehensive income (loss) | $ | 11,975 | (12,815 | ) | |||||||||
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Comprehensive Income Six Months Ended June 30, (In thousands, except per share amounts) (Unaudited) | ||||||||||||||
2016 | 2015 | |||||||||||||
Revenues: | ||||||||||||||
Premiums: | ||||||||||||||
Life insurance | $ | 90,124 | 89,647 | |||||||||||
Accident and health insurance | 785 | 796 | ||||||||||||
Property insurance | 2,537 | 2,583 | ||||||||||||
Net investment income | 23,731 | 22,270 | ||||||||||||
Realized investment losses, net | (1,822 | ) | (79 | ) | ||||||||||
Other income | 407 | 722 | ||||||||||||
Total revenues | 115,762 | 115,939 | ||||||||||||
Benefits and expenses: | ||||||||||||||
Insurance benefits paid or provided: | ||||||||||||||
Claims and surrenders | 39,974 | 38,643 | ||||||||||||
Increase in future policy benefit reserves | 33,665 | 37,058 | ||||||||||||
Policyholders' dividends | 3,365 | 4,849 | ||||||||||||
Total insurance benefits paid or provided | 77,004 | 80,550 | ||||||||||||
Commissions | 20,245 | 20,664 | ||||||||||||
Other general expenses | 17,884 | 17,996 | ||||||||||||
Capitalization of deferred policy acquisition costs | (14,367 | ) | (14,892 | ) | ||||||||||
Amortization of deferred policy acquisition costs | 13,535 | 10,946 | ||||||||||||
Amortization of cost of customer relationships acquired | 947 | 1,163 | ||||||||||||
Total benefits and expenses | 115,248 | 116,427 | ||||||||||||
Income (loss) before federal income tax | 514 | (488 | ) | |||||||||||
Federal income tax expense | 1,144 | 1,001 | ||||||||||||
Net loss | (630 | ) | (1,489 | ) | ||||||||||
Per Share Amounts: | ||||||||||||||
Basic losses per share of Class A common stock | $ | (0.01 | ) | $ | (0.03 | ) | ||||||||
Basic losses per share of Class B common stock | (0.01 | ) | (0.02 | ) | ||||||||||
Diluted losses per share of Class A common stock | (0.01 | ) | (0.03 | ) | ||||||||||
Diluted losses per share of Class B common stock | (0.01 | ) | (0.02 | ) | ||||||||||
Other comprehensive income (loss): | ||||||||||||||
Unrealized gains (losses) on available-for-sale securities: | ||||||||||||||
Unrealized holding gains (losses) arising during period | 27,707 | (11,771 | ) | |||||||||||
Reclassification adjustment for losses included in net income | 1,816 | 44 | ||||||||||||
Unrealized gains (losses) on available-for-sale securities, net | 29,523 | (11,727 | ) | |||||||||||
Income tax expense (benefit) on unrealized gains on available-for-sale securities | 10,333 | (4,104 | ) | |||||||||||
Other comprehensive income (loss) | 19,190 | (7,623 | ) | |||||||||||
Comprehensive income (loss) | $ | 18,560 | (9,112 | ) |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows Six Months Ended June 30, (In thousands) (Unaudited) | ||||||
2016 | 2015 | |||||
Cash flows from operating activities: | ||||||
Net loss | $ | (630 | ) | (1,489 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
Realized losses on sale of investments and other assets | 1,822 | 79 | ||||
Net deferred policy acquisition costs | (832 | ) | (3,946 | ) | ||
Amortization of cost of customer relationships acquired | 947 | 1,163 | ||||
Depreciation | 405 | 386 | ||||
Amortization of premiums and discounts on investments | 6,966 | 5,583 | ||||
Deferred federal income tax expense (benefit) | (2,442 | ) | 957 | |||
Change in: | ||||||
Accrued investment income | (1,313 | ) | (970 | ) | ||
Reinsurance recoverable | 98 | 63 | ||||
Due premiums | 334 | (367 | ) | |||
Future policy benefit reserves | 32,457 | 36,925 | ||||
Other policyholders' liabilities | 2,316 | 5,385 | ||||
Federal income tax payable | 2,248 | (3,256 | ) | |||
Commissions payable and other liabilities | 1,700 | 554 | ||||
Other, net | (1,031 | ) | (1,244 | ) | ||
Net cash provided by operating activities | 43,045 | 39,823 | ||||
Cash flows from investing activities: | ||||||
Maturities and calls of fixed maturities, available-for-sale | 37,625 | 19,024 | ||||
Maturities and calls of fixed maturities, held-to-maturity | 6,275 | 9,975 | ||||
Purchase of fixed maturities, available-for-sale | (109,613 | ) | (57,065 | ) | ||
Purchase of fixed maturities, held-to-maturity | (5,507 | ) | (22,959 | ) | ||
Sale of equity securities, available-for-sale | 403 | — | ||||
Calls of equity securities, available-for-sale | 273 | 150 | ||||
Purchase of equity securities, available-for-sale | — | (602 | ) | |||
Principal payments on mortgage loans | 126 | 18 | ||||
Increase in policy loans, net | (2,991 | ) | (2,620 | ) | ||
Sale of other long-term investments | — | 58 | ||||
Purchase of property and equipment | (527 | ) | (123 | ) | ||
Maturity of short-term investments | 250 | — | ||||
Purchase of short-term investments | (522 | ) | — | |||
Net cash used in investing activities | (74,208 | ) | (54,144 | ) |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows, Continued Six Months Ended June 30, (In thousands) (Unaudited) | ||||||
2016 | 2015 | |||||
Cash flows from financing activities: | ||||||
Annuity deposits | $ | 3,980 | 3,995 | |||
Annuity withdrawals | (2,707 | ) | (2,562 | ) | ||
Net cash provided by financing activities | 1,273 | 1,433 | ||||
Net decrease in cash and cash equivalents | (29,890 | ) | (12,888 | ) | ||
Cash and cash equivalents at beginning of year | 82,827 | 50,708 | ||||
Cash and cash equivalents at end of period | $ | 52,937 | 37,820 | |||
Supplemental disclosures of operating activities: | ||||||
Cash paid during the period for income taxes, net | $ | 1,339 | 3,300 |
Three Months Ended | ||||||||||||
June 30, 2016 | ||||||||||||
Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Premiums | $ | 37,111 | 11,896 | — | 49,007 | |||||||
Net investment income | 8,107 | 3,505 | 388 | 12,000 | ||||||||
Realized investment gains (losses), net | 208 | (234 | ) | — | (26 | ) | ||||||
Other income | 256 | — | — | 256 | ||||||||
Total revenue | 45,682 | 15,167 | 388 | 61,237 | ||||||||
Benefits and expenses: | ||||||||||||
Insurance benefits paid or provided: | ||||||||||||
Claims and surrenders | 15,157 | 5,812 | — | 20,969 | ||||||||
Increase in future policy benefit reserves | 16,319 | 1,356 | — | 17,675 | ||||||||
Policyholders' dividends | 1,802 | 14 | — | 1,816 | ||||||||
Total insurance benefits paid or provided | 33,278 | 7,182 | — | 40,460 | ||||||||
Commissions | 6,768 | 4,009 | — | 10,777 | ||||||||
Other general expenses | 4,041 | 3,557 | 968 | 8,566 | ||||||||
Capitalization of deferred policy acquisition costs | (6,492 | ) | (1,611 | ) | — | (8,103 | ) | |||||
Amortization of deferred policy acquisition costs | 6,062 | 765 | — | 6,827 | ||||||||
Amortization of cost of customer relationships acquired | 130 | 272 | — | 402 | ||||||||
Total benefits and expenses | 43,787 | 14,174 | 968 | 58,929 | ||||||||
Income (loss) before income tax expense | $ | 1,895 | 993 | (580 | ) | 2,308 |
Six Months Ended | ||||||||||||
June 30, 2016 | ||||||||||||
Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Premiums | $ | 69,959 | 23,487 | — | 93,446 | |||||||
Net investment income | 16,061 | 6,919 | 751 | 23,731 | ||||||||
Realized investment losses, net | (660 | ) | (1,162 | ) | — | (1,822 | ) | |||||
Other income | 371 | 3 | 33 | 407 | ||||||||
Total revenue | 85,731 | 29,247 | 784 | 115,762 | ||||||||
Benefits and expenses: | ||||||||||||
Insurance benefits paid or provided: | ||||||||||||
Claims and surrenders | 28,621 | 11,353 | — | 39,974 | ||||||||
Increase in future policy benefit reserves | 31,163 | 2,502 | — | 33,665 | ||||||||
Policyholders' dividends | 3,338 | 27 | — | 3,365 | ||||||||
Total insurance benefits paid or provided | 63,122 | 13,882 | — | 77,004 | ||||||||
Commissions | 12,571 | 7,674 | — | 20,245 | ||||||||
Other general expenses | 8,125 | 7,747 | 2,012 | 17,884 | ||||||||
Capitalization of deferred policy acquisition costs | (11,418 | ) | (2,949 | ) | — | (14,367 | ) | |||||
Amortization of deferred policy acquisition costs | 11,943 | 1,592 | — | 13,535 | ||||||||
Amortization of cost of customer relationships acquired | 300 | 647 | — | 947 | ||||||||
Total benefits and expenses | 84,643 | 28,593 | 2,012 | 115,248 | ||||||||
Income (loss) before income tax expense | $ | 1,088 | 654 | (1,228 | ) | 514 |
Three Months Ended | ||||||||||||
June 30, 2015 | ||||||||||||
Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Premiums | $ | 36,707 | 11,753 | — | 48,460 | |||||||
Net investment income | 7,387 | 3,441 | 373 | 11,201 | ||||||||
Realized investment losses, net | (2 | ) | (6 | ) | — | (8 | ) | |||||
Other income | 160 | 22 | 244 | 426 | ||||||||
Total revenue | 44,252 | 15,210 | 617 | 60,079 | ||||||||
Benefits and expenses: | ||||||||||||
Insurance benefits paid or provided: | ||||||||||||
Claims and surrenders | 13,465 | 5,775 | — | 19,240 | ||||||||
Increase in future policy benefit reserves | 18,490 | 1,270 | — | 19,760 | ||||||||
Policyholders' dividends | 2,527 | 13 | — | 2,540 | ||||||||
Total insurance benefits paid or provided | 34,482 | 7,058 | — | 41,540 | ||||||||
Commissions | 6,815 | 3,990 | — | 10,805 | ||||||||
Other general expenses | 4,872 | 4,459 | 1,114 | 10,445 | ||||||||
Capitalization of deferred policy acquisition costs | (6,423 | ) | (1,613 | ) | — | (8,036 | ) | |||||
Amortization of deferred policy acquisition costs | 4,941 | 706 | — | 5,647 | ||||||||
Amortization of cost of customer relationships acquired | 122 | 394 | — | 516 | ||||||||
Total benefits and expenses | 44,809 | 14,994 | 1,114 | 60,917 | ||||||||
Income (loss) before income tax expense | $ | (557 | ) | 216 | (497 | ) | (838 | ) |
Six Months Ended | ||||||||||||
June 30, 2015 | ||||||||||||
Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||
(In thousands) | ||||||||||||
Revenues: | ||||||||||||
Premiums | $ | 69,686 | 23,340 | — | 93,026 | |||||||
Net investment income | 14,618 | 6,905 | 747 | 22,270 | ||||||||
Realized investment losses, net | (58 | ) | (21 | ) | — | (79 | ) | |||||
Other income | 374 | 70 | 278 | 722 | ||||||||
Total revenue | 84,620 | 30,294 | 1,025 | 115,939 | ||||||||
Benefits and expenses: | ||||||||||||
Insurance benefits paid or provided: | ||||||||||||
Claims and surrenders | 27,025 | 11,618 | — | 38,643 | ||||||||
Increase in future policy benefit reserves | 34,627 | 2,431 | — | 37,058 | ||||||||
Policyholders' dividends | 4,822 | 27 | — | 4,849 | ||||||||
Total insurance benefits paid or provided | 66,474 | 14,076 | — | 80,550 | ||||||||
Commissions | 12,841 | 7,823 | — | 20,664 | ||||||||
Other general expenses | 8,031 | 8,289 | 1,676 | 17,996 | ||||||||
Capitalization of deferred policy acquisition costs | (11,766 | ) | (3,126 | ) | — | (14,892 | ) | |||||
Amortization of deferred policy acquisition costs | 9,490 | 1,456 | — | 10,946 | ||||||||
Amortization of cost of customer relationships acquired | 322 | 841 | — | 1,163 | ||||||||
Total benefits and expenses | 85,392 | 29,359 | 1,676 | 116,427 | ||||||||
Income (loss) before income tax expense | $ | (772 | ) | 935 | (651 | ) | (488 | ) |
Three Months Ended | ||||||
June 30, 2016 | June 30, 2015 | |||||
(In thousands, except per share amounts) | ||||||
Basic and diluted earnings per share: | ||||||
Numerator: | ||||||
Net income (loss) | $ | 1,319 | (1,914 | ) | ||
Net income (loss) allocated to Class A common stock | $ | 1,305 | (1,895 | ) | ||
Net income (loss) allocated to Class B common stock | 14 | (19 | ) | |||
Net income (loss) | $ | 1,319 | (1,914 | ) | ||
Denominator: | ||||||
Weighted average shares of Class A outstanding - basic | 49,080 | 49,080 | ||||
Weighted average shares of Class A outstanding - diluted | 49,080 | 49,080 | ||||
Weighted average shares of Class B outstanding - basic and diluted | 1,002 | 1,002 | ||||
Basic earnings (losses) per share of Class A common stock | $ | 0.03 | (0.04 | ) | ||
Basic earnings (losses) per share of Class B common stock | 0.01 | (0.02 | ) | |||
Diluted earnings (losses) per share of Class A common stock | 0.03 | (0.04 | ) | |||
Diluted earnings (losses) per share of Class B common stock | 0.01 | (0.02 | ) |
Six Months Ended | ||||||
June 30, 2016 | June 30, 2015 | |||||
(In thousands, except per share amounts) | ||||||
Basic and diluted earnings per share: | ||||||
Numerator: | ||||||
Net loss | $ | (630 | ) | (1,489 | ) | |
Net loss allocated to Class A common stock | $ | (624 | ) | (1,474 | ) | |
Net loss allocated to Class B common stock | (6 | ) | (15 | ) | ||
Net loss | $ | (630 | ) | (1,489 | ) | |
Denominator: | ||||||
Weighted average shares of Class A outstanding - basic | 49,080 | 49,080 | ||||
Weighted average shares of Class A outstanding - diluted | 49,080 | 49,080 | ||||
Weighted average shares of Class B outstanding - basic and diluted | 1,002 | 1,002 | ||||
Basic losses per share of Class A common stock | $ | (0.01 | ) | (0.03 | ) | |
Basic losses per share of Class B common stock | (0.01 | ) | (0.02 | ) | ||
Diluted losses per share of Class A common stock | (0.01 | ) | (0.03 | ) | ||
Diluted losses per share of Class B common stock | (0.01 | ) | (0.02 | ) |
June 30, 2016 | December 31, 2015 | ||||||||||||
Carrying Value | % of Total Carrying Value | Carrying Value | % of Total Carrying Value | ||||||||||
($ In thousands) | |||||||||||||
Fixed maturity securities | $ | 1,091,638 | 88.0 | $ | 995,601 | 85.0 | |||||||
Equity securities | 23,234 | 1.9 | 23,438 | 2.0 | |||||||||
Mortgage loans | 468 | — | 594 | 0.1 | |||||||||
Policy loans | 63,157 | 5.1 | 60,166 | 5.1 | |||||||||
Real estate and other long-term investments | 7,944 | 0.7 | 8,031 | 0.7 | |||||||||
Short-term investments | 521 | — | 251 | — | |||||||||
Cash and cash equivalents | 52,937 | 4.3 | 82,827 | 7.1 | |||||||||
Total cash, cash equivalents and investments | $ | 1,239,899 | 100.0 | $ | 1,170,908 | 100.0 |
June 30, 2016 | ||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||
(In thousands) | ||||||||||||
Fixed maturities: | ||||||||||||
Available-for-sale: | ||||||||||||
U.S. Treasury securities | $ | 9,962 | 3,151 | — | 13,113 | |||||||
U.S. Government-sponsored enterprises | 7,701 | 1,328 | — | 9,029 | ||||||||
States and political subdivisions | 514,576 | 30,297 | 1,522 | 543,351 | ||||||||
Foreign governments | 103 | 31 | — | 134 | ||||||||
Corporate | 250,041 | 18,334 | 1,310 | 267,065 | ||||||||
Commercial mortgage-backed | 103 | 5 | — | 108 | ||||||||
Residential mortgage-backed | 2,448 | 228 | 3 | 2,673 | ||||||||
Total available-for-sale securities | 784,934 | 53,374 | 2,835 | 835,473 | ||||||||
Held-to-maturity securities: | ||||||||||||
U.S. Government-sponsored enterprises | 2,006 | 84 | — | 2,090 | ||||||||
States and political subdivisions | 233,058 | 13,708 | 96 | 246,670 | ||||||||
Corporate | 21,101 | 1,043 | 853 | 21,291 | ||||||||
Total held-to-maturity securities | 256,165 | 14,835 | 949 | 270,051 | ||||||||
Total fixed maturities | $ | 1,041,099 | 68,209 | 3,784 | 1,105,524 | |||||||
Short-term investments | $ | 521 | — | — | 521 | |||||||
Equity securities: | ||||||||||||
Stock mutual funds | $ | 2,867 | — | 1 | 2,866 | |||||||
Bond mutual funds | 18,451 | 301 | — | 18,752 | ||||||||
Common stock | 39 | 4 | 17 | 26 | ||||||||
Preferred stock | 1,372 | 218 | — | 1,590 | ||||||||
Total equity securities | $ | 22,729 | 523 | 18 | 23,234 |
December 31, 2015 | ||||||||||||
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||
(In thousands) | ||||||||||||
Fixed maturities: | ||||||||||||
Available-for-sale securities: | ||||||||||||
U.S. Treasury securities | $ | 9,995 | 2,597 | — | 12,592 | |||||||
U.S. Government-sponsored enterprises | 19,676 | 1,104 | — | 20,780 | ||||||||
States and political subdivisions | 470,319 | 15,815 | 3,085 | 483,049 | ||||||||
Foreign governments | 104 | 27 | — | 131 | ||||||||
Corporate | 211,245 | 9,683 | 4,847 | 216,081 | ||||||||
Commercial mortgage-backed | 140 | 5 | — | 145 | ||||||||
Residential mortgage-backed | 2,658 | 214 | 2 | 2,870 | ||||||||
Total available-for-sale securities | 714,137 | 29,445 | 7,934 | 735,648 | ||||||||
Held-to-maturity securities: | ||||||||||||
U.S. Government-sponsored enterprises | 2,010 | 110 | — | 2,120 | ||||||||
States and political subdivisions | 236,776 | 6,756 | 883 | 242,649 | ||||||||
Corporate | 21,167 | 530 | 1,500 | 20,197 | ||||||||
Total held-to-maturity securities | 259,953 | 7,396 | 2,383 | 264,966 | ||||||||
Total fixed maturity securities | $ | 974,090 | 36,841 | 10,317 | 1,000,614 | |||||||
Short-term investments | $ | 251 | — | — | 251 | |||||||
Equity securities: | ||||||||||||
Stock mutual funds | $ | 3,270 | — | 237 | 3,033 | |||||||
Bond mutual funds | 18,798 | 55 | 349 | 18,504 | ||||||||
Common stock | 65 | — | 22 | 43 | ||||||||
Preferred stock | 1,594 | 266 | 2 | 1,858 | ||||||||
Total equity securities | $ | 23,727 | 321 | 610 | 23,438 |
June 30, 2016 | |||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | |||||||||||||||||||||
(In thousands, except for # of securities) | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
States and political subdivisions | $ | 14,100 | 72 | 13 | $ | 13,314 | 1,450 | 11 | $ | 27,414 | 1,522 | 24 | |||||||||||||||||
Corporate | 28,313 | 445 | 28 | 10,125 | 865 | 16 | 38,438 | 1,310 | 44 | ||||||||||||||||||||
Residential mortgage-backed | 101 | 2 | 2 | 108 | 1 | 2 | 209 | 3 | 4 | ||||||||||||||||||||
Total available-for-sale securities | 42,514 | 519 | 43 | 23,547 | 2,316 | 29 | 66,061 | 2,835 | 72 | ||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||
States and political subdivisions | 5,963 | 66 | 4 | 3,683 | 30 | 5 | 9,646 | 96 | 9 | ||||||||||||||||||||
Corporate | — | — | — | 5,027 | 853 | 4 | 5,027 | 853 | 4 | ||||||||||||||||||||
Total held-to-maturity securities | 5,963 | 66 | 4 | 8,710 | 883 | 9 | 14,673 | 949 | 13 | ||||||||||||||||||||
Total fixed maturities | $ | 48,477 | 585 | 47 | $ | 32,257 | 3,199 | 38 | $ | 80,734 | 3,784 | 85 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Stock mutual funds | $ | 999 | 1 | 1 | $ | — | — | — | $ | 999 | 1 | 1 | |||||||||||||||||
Common stocks | — | — | — | 18 | 17 | 1 | 18 | 17 | 1 | ||||||||||||||||||||
Total equities | $ | 999 | 1 | 1 | $ | 18 | 17 | 1 | $ | 1,017 | 18 | 2 |
December 31, 2015 | |||||||||||||||||||||||||||||
Less than 12 months | Greater than 12 months | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | |||||||||||||||||||||
(In thousands, except for # of securities) | |||||||||||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||||||||||
States and political subdivisions | $ | 136,862 | 1,474 | 129 | $ | 12,633 | 1,611 | 12 | $ | 149,495 | 3,085 | 141 | |||||||||||||||||
Corporate | 70,081 | 4,330 | 69 | 3,308 | 517 | 3 | 73,389 | 4,847 | 72 | ||||||||||||||||||||
Residential mortgage-backed | 57 | 1 | 2 | 133 | 1 | 3 | 190 | 2 | 5 | ||||||||||||||||||||
Total available-for-sale securities | 207,000 | 5,805 | 200 | 16,074 | 2,129 | 18 | 223,074 | 7,934 | 218 | ||||||||||||||||||||
Held-to-maturity securities: | |||||||||||||||||||||||||||||
States and political subdivisions | 74,628 | 774 | 59 | 2,404 | 109 | 5 | 77,032 | 883 | 64 | ||||||||||||||||||||
Corporate | 4,585 | 641 | 4 | 2,160 | 859 | 2 | 6,745 | 1,500 | 6 | ||||||||||||||||||||
Total held-to-maturity securities | 79,213 | 1,415 | 63 | 4,564 | 968 | 7 | 83,777 | 2,383 | 70 | ||||||||||||||||||||
Total fixed maturities | $ | 286,213 | 7,220 | 263 | $ | 20,638 | 3,097 | 25 | $ | 306,851 | 10,317 | 288 | |||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||
Stock mutual funds | $ | 3,030 | 237 | 4 | $ | 2 | — | 1 | $ | 3,032 | 237 | 5 | |||||||||||||||||
Bond mutual funds | 10,158 | 318 | 2 |