Rendering

Component: (Network and Table)
Network
2304301 - Disclosure - Investment Operations (Tables)
(http://fblfinancial.com/role/InvestmentOperationsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Investment Operations [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Investment Operations [Abstract]
 
Available-For-Sale Fixed Maturity and Equity Securities by Investment Category
Available-For-Sale Fixed Maturity and Equity Securities by Investment Category
 
 
 
December 31, 2016
 
Amortized
 Cost
 
Gross
 Unrealized
 Gains
 
Gross
 Unrealized
 Losses
 
 Fair
 Value
 
Non-credit losses on other-than-temporary impairments (1)
 
(Dollars in thousands)
Fixed maturities:
 
 
 
 
 
 
 
 
 
Corporate (2)
$
3,529,997

 
$
228,601

 
$
(49,943
)
 
$
3,708,655

 
$
(1,082
)
Residential mortgage-backed
396,110

 
29,121

 
(2,931
)
 
422,300

 
(983
)
Commercial mortgage-backed
546,446

 
33,645

 
(4,137
)
 
575,954

 

Other asset-backed
771,570

 
8,846

 
(9,766
)
 
770,650

 
2,544

United States Government and agencies
30,575

 
1,629

 
(132
)
 
32,072

 

State, municipal and other governments
1,387,013

 
119,298

 
(7,152
)
 
1,499,159

 

Total fixed maturities
$
6,661,711

 
$
421,140

 
$
(74,061
)
 
$
7,008,790

 
$
479

 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stocks
$
100,042

 
$
4,050

 
$
(1,675
)
 
$
102,417

 
 
Common stocks
30,437

 
114

 

 
30,551

 
 
Total equity securities
$
130,479

 
$
4,164

 
$
(1,675
)
 
$
132,968

 


 
December 31, 2015
 
Amortized
 Cost
 
Gross
 Unrealized
 Gains
 
Gross
 Unrealized
 Losses
 

 Fair
 Value
 
Non-credit losses on other-than-temporary impairments (1)
 
(Dollars in thousands)
Fixed maturities:
 
 
 
 
 
 
 
 
 
Corporate (2)
$
3,464,402

 
$
192,149

 
$
(137,844
)
 
$
3,518,707

 
$
351

Residential mortgage-backed
436,969

 
33,880

 
(5,343
)
 
465,506

 
(3,584
)
Commercial mortgage-backed
514,195

 
42,284

 
(2,487
)
 
553,992

 

Other asset-backed
578,692

 
11,554

 
(7,124
)
 
583,122

 
3,058

United States Government and agencies
41,050

 
3,129

 
(81
)
 
44,098

 

State, municipal and other governments
1,344,611

 
129,923

 
(2,183
)
 
1,472,351

 

Total fixed maturities
$
6,379,919

 
$
412,919

 
$
(155,062
)
 
$
6,637,776

 
$
(175
)
 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stocks
$
87,029

 
$
6,095

 
$
(1,173
)
 
$
91,951

 
 
Common stocks
29,307

 
450

 
(41
)
 
29,716

 
 
Total equity securities
$
116,336

 
$
6,545

 
$
(1,214
)
 
$
121,667

 



(1)
Non-credit losses subsequent to the initial impairment measurement date on OTTI losses are included in the gross unrealized gains and gross unrealized losses columns above. The non-credit loss component of OTTI losses for other asset-backed securities were in an unrealized gain position at December 31, 2016 and corporate and other asset-backed securities at December 31, 2015 due to increases in estimated fair value subsequent to initial recognition of non-credit losses on such securities.
(2)
Corporate securities include hybrid preferred securities with a fair value of $23.3 million at December 31, 2016 and $43.5 million at December 31, 2015. Corporate securities also include redeemable preferred stock with a fair value of $24.5 million at December 31, 2016 and $24.8 million at December 31, 2015.

 
 
Available-For-Sale Fixed Maturities by Maturity Date
Available-For-Sale Fixed Maturities by Maturity Date
 
 
 
 
 
 
 
 
December 31, 2016
 
Amortized
 Cost
 

 Fair Value
 
(Dollars in thousands)
Due in one year or less
$
87,893

 
$
89,546

Due after one year through five years
788,543

 
847,046

Due after five years through ten years
716,499

 
742,640

Due after ten years
3,354,650

 
3,560,654

 
4,947,585

 
5,239,886

Mortgage-backed and other asset-backed
1,714,126

 
1,768,904

Total fixed maturities
$
6,661,711

 
$
7,008,790


Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Fixed maturities not due at a single maturity date have been included in the above table in the year of final contractual maturity.

 
 
Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income
Net Unrealized Gains (Losses) on Investments in Accumulated Other Comprehensive Income
 
 
 
 
 
December 31,
 
2016
 
2015
 
(Dollars in thousands)
Net unrealized appreciation on:
 
 
 
Fixed maturities - available for sale
$
347,079

 
$
257,857

Equity securities - available for sale
2,489

 
5,331

 
349,568

 
263,188

Adjustments for assumed changes in amortization pattern of:
 
 
 
Deferred acquisition costs
(95,647
)
 
(73,735
)
Value of insurance in force acquired
(12,382
)
 
(3,087
)
Unearned revenue reserve
4,215

 
3,352

Adjustments for assumed changes in policyholder liabilities
(3,795
)
 
(4,090
)
Provision for deferred income taxes
(84,684
)
 
(64,955
)
Net unrealized investment gains
$
157,275

 
$
120,673


Change in Unrealized Appreciation/Depreciation of Investments - Recorded in Accumulated Other Comprehensive Income
 
 
 
 
 
 
 
Year ended December 31,
 
2016
 
2015
 
2014
 
(Dollars in thousands)
Fixed maturities - available for sale
$
89,222

 
$
(331,408
)
 
$
336,051

Equity securities - available for sale
(2,842
)
 
118

 
3,729

Change in unrealized appreciation/depreciation of investments
$
86,380

 
$
(331,290
)
 
$
339,780


The changes in net unrealized investment gains and losses are recorded net of deferred income taxes and other adjustments for assumed changes in deferred acquisition costs, value of insurance in force acquired, unearned revenue reserve and policyholder liabilities. Subsequent changes in the fair value of securities for which a previous non-credit OTTI loss was recognized in accumulated other comprehensive income are reported along with changes in fair value for which no OTTI losses were previously recognized.
 
 
Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time
Fixed Maturity and Equity Securities with Unrealized Losses by Length of Time
 
 
 
 
 
 
 
 
 
December 31, 2016
 
 
Less than one year
 
One year or more
 
Total
 
 
Description of Securities
 
 Fair Value
 
Unrealized Losses
 
 Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
Percent of Total
 
 
(Dollars in thousands)
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
742,626

 
$
(23,142
)
 
$
220,939

 
$
(26,801
)
 
$
963,565

 
$
(49,943
)
 
67.3
%
Residential mortgage-backed
 
51,873

 
(1,014
)
 
22,744

 
(1,917
)
 
74,617

 
(2,931
)
 
4.0

Commercial mortgage-backed
 
95,690

 
(3,590
)
 
6,610

 
(547
)
 
102,300

 
(4,137
)
 
5.6

Other asset-backed
 
371,829

 
(5,810
)
 
95,740

 
(3,956
)
 
467,569

 
(9,766
)
 
13.2

United States Government and agencies
 
6,438

 
(132
)
 

 

 
6,438

 
(132
)
 
0.2

State, municipal and other governments
 
150,052

 
(7,152
)
 

 

 
150,052

 
(7,152
)
 
9.7

Total fixed maturities
 
$
1,418,508

 
$
(40,840
)
 
$
346,033

 
$
(33,221
)
 
$
1,764,541

 
$
(74,061
)
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stocks
 
$
12,774

 
$
(150
)
 
$
13,438

 
$
(1,525
)
 
$
26,212

 
$
(1,675
)
 
 
Total equity securities
 
$
12,774

 
$
(150
)
 
$
13,438

 
$
(1,525
)
 
$
26,212

 
$
(1,675
)
 
 

 
 
December 31, 2015
 
 
Less than one year
 
One year or more
 
Total
 
 
Description of Securities
 
Fair Value
 
Unrealized Losses
 
Fair Value
 
Unrealized Losses
 
 Fair Value
 
Unrealized Losses
 
Percent of Total
 
 
(Dollars in thousands)
 
 
Fixed maturities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate
 
$
1,115,324

 
$
(96,062
)
 
$
115,730

 
$
(41,782
)
 
$
1,231,054

 
$
(137,844
)
 
88.9
%
Residential mortgage-backed
 
21,646

 
(725
)
 
26,537

 
(4,618
)
 
48,183

 
(5,343
)
 
3.4

Commercial mortgage-backed
 
48,424

 
(1,947
)
 
7,657

 
(540
)
 
56,081

 
(2,487
)
 
1.6

Other asset-backed
 
285,395

 
(3,323
)
 
65,298

 
(3,801
)
 
350,693

 
(7,124
)
 
4.6

United States Government and agencies
 
4,807

 
(81
)
 

 

 
4,807

 
(81
)
 
0.1

State, municipal and other governments
 
77,980

 
(2,183
)
 

 

 
77,980

 
(2,183
)
 
1.4

Total fixed maturities
 
$
1,553,576

 
$
(104,321
)
 
$
215,222

 
$
(50,741
)
 
$
1,768,798

 
$
(155,062
)
 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-redeemable preferred stocks
 
$
21,280

 
$
(573
)
 
$
4,400

 
$
(600
)
 
$
25,680

 
$
(1,173
)
 
 
Common stocks
 
1,428

 
(41
)
 
 
 
$
1,428

 
$
(41
)
 
 
Total equity securities
 
$
22,708

 
$
(614
)
 
$
4,400

 
$
(600
)
 
$
27,108

 
$
(1,214
)
 
 

Fixed maturities in the above tables include 516 securities from 404 issuers at December 31, 2016 and 542 securities from 435 issuers at December 31, 2015.

Unrealized losses decreased during 2016 primarily due to a decrease in overall spreads, offset slightly by an increase in treasury yields over the same period. We do not consider securities to be OTTI when the market decline is attributable to factors such as interest rate movements, market volatility, liquidity, spread widening and credit quality when recovery of all amounts due under the contractual terms of the security is anticipated. Based on our intent not to sell or our belief that we will not be required to sell these securities before recovery of their amortized cost basis, we do not consider these investments to be OTTI at December 31, 2016. We will continue to monitor the investment portfolio for future changes in issuer facts and circumstances that could result in future impairments beyond those currently identified.

Excluding mortgage- and asset-backed securities, our largest unrealized loss was from an oil field service provider and totaled $2.1 million at December 31, 2016. With respect to mortgage- and asset-backed securities not backed by the United States Government, our largest aggregate unrealized loss from the same issuer at December 31, 2016 was $1.2 million, consisting of two different securities that are backed by different pools of Alt-A residential mortgage loans. Both securities are rated non-investment grade and the largest unrealized loss totaled $0.7 million.
 
 
Mortgage Loans by Collateral Type
Mortgage Loans by Collateral Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
Collateral Type
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
Office
 
$
361,088

 
44.2
%
 
$
333,400

 
44.8
%
Retail
 
240,602

 
29.5

 
227,039

 
30.5

Industrial
 
154,005

 
18.9

 
133,085

 
17.9

Other
 
60,776

 
7.4

 
50,779

 
6.8

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%

Mortgage Loans by Geographic Location within the United States
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
Region of the United States
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
South Atlantic
 
$
266,019

 
32.6
%
 
$
233,522

 
31.4
%
West North Central
 
105,753

 
12.9

 
102,555

 
13.8

Pacific
 
104,337

 
12.8

 
100,188

 
13.4

East North Central
 
91,550

 
11.2

 
86,019

 
11.5

Mountain
 
79,707

 
9.8

 
78,750

 
10.6

West South Central
 
74,258

 
9.1

 
66,677

 
9.0

Other
 
94,847

 
11.6

 
76,592

 
10.3

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%

 
 
Mortgage Loans by Geographic Location within the United States
Mortgage Loans by Geographic Location within the United States
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
Region of the United States
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
South Atlantic
 
$
266,019

 
32.6
%
 
$
233,522

 
31.4
%
West North Central
 
105,753

 
12.9

 
102,555

 
13.8

Pacific
 
104,337

 
12.8

 
100,188

 
13.4

East North Central
 
91,550

 
11.2

 
86,019

 
11.5

Mountain
 
79,707

 
9.8

 
78,750

 
10.6

West South Central
 
74,258

 
9.1

 
66,677

 
9.0

Other
 
94,847

 
11.6

 
76,592

 
10.3

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%
 
 
Mortgage Loans by Loan-to-Value Ratio
Mortgage Loans by Loan-to-Value Ratio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
Loan-to-Value Ratio
 

Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
0% - 50%
 
$
274,953

 
33.7
%
 
$
264,605

 
35.6
%
50% - 60%
 
210,555

 
25.8

 
169,045

 
22.7

60% - 70%
 
233,216

 
28.5

 
234,544

 
31.5

70% - 80%
 
67,607

 
8.3

 
67,072

 
9.0

80% - 90%
 
30,140

 
3.7

 
9,037

 
1.2

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%

The loan-to-value ratio is determined using the most recent appraised value. Appraisals are updated periodically when there is indication of a possible significant collateral decline or there are loan modifications or refinance requests.

Mortgage Loans by Year of Origination
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
 
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
2016
 
$
158,817

 
19.4
%
 
$

 
%
2015
 
149,302

 
18.3

 
154,582

 
20.9

2014
 
80,771

 
9.9

 
83,546

 
11.2

2013
 
69,887

 
8.6

 
79,879

 
10.7

2012
 
59,983

 
7.3

 
65,817

 
8.8

2011 and prior
 
297,711

 
36.5

 
360,479

 
48.4

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%

 
 
Mortgage Loans by Year of Origination
Mortgage Loans by Year of Origination
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
 
 
Carrying Value
 
Percent of Total
 
Carrying Value
 
Percent of Total
 
 
(Dollars in thousands)
2016
 
$
158,817

 
19.4
%
 
$

 
%
2015
 
149,302

 
18.3

 
154,582

 
20.9

2014
 
80,771

 
9.9

 
83,546

 
11.2

2013
 
69,887

 
8.6

 
79,879

 
10.7

2012
 
59,983

 
7.3

 
65,817

 
8.8

2011 and prior
 
297,711

 
36.5

 
360,479

 
48.4

Total
 
$
816,471

 
100.0
%
 
$
744,303

 
100.0
%


 
 
Impaired Mortgage Loans
 Impaired Mortgage Loans
 
December 31,
 
2016
 
2015
 
(Dollars in thousands)
Unpaid principal balance
$
21,459

 
$
21,766

Less:
 
 
 
Related allowance
(713
)
 
(851
)
Discount

 
(87
)
Carrying value of impaired mortgage loans
$
20,746

 
$
20,828

 
 
Allowance on Mortgage Loans
 Allowance on Mortgage Loans
 
Year ended December 31,
 
2016
 
2015
 
(Dollars in thousands)
Balance at beginning of period
$
851

 
$
857

Charge offs
(138
)
 
(6
)
Balance at end of period
$
713

 
$
851

 
 
Components of Net Investment Income
Components of Net Investment Income
 
Year ended December 31,
 
2016
 
2015
 
2014
 
(Dollars in thousands)
Fixed maturities - available for sale
$
342,657

 
$
338,952

 
$
333,759

Equity securities - available for sale
6,558

 
6,091

 
5,388

Mortgage loans
38,098

 
35,923

 
32,759

Real estate

 
169

 
140

Policy loans
8,956

 
8,871

 
8,620

Short-term investments, cash and cash equivalents
365

 
141

 

Derivative income (loss)
3,935

 
(2,266
)
 
2,496

Prepayment fee income and other
10,992

 
11,555

 
6,959

 
411,561

 
399,436

 
390,121

Less investment expenses
(7,391
)
 
(8,287
)
 
(8,039
)
Net investment income
$
404,170

 
$
391,149

 
$
382,082

 
 
Realized Gains (Losses) - Recorded in Income
Realized Gains (Losses) - Recorded in Income 
 
 
 
 
 
 
Year ended December 31,
 
2016
 
2015
 
2014
 
(Dollars in thousands)
Realized gains (losses) on sales of investments
 
 
 
 
 
Fixed maturities:
 
 
 
 
 
Gross gains
$
9,793

 
$
4,781

 
$
4,593

Gross losses
(8,523
)
 
(1,952
)
 
(833
)
Equity securities
529

 

 

Mortgage loans
817

 

 

Short-term investments, cash and cash equivalents
(1
)
 

 

Other
491

 
8,233

 

 
3,106

 
11,062

 
3,760

Impairment losses recognized in earnings:
 
 
 
 
 
Credit-related portion of fixed maturity losses (1)
(4,767
)
 
(363
)
 

Other credit-related (2)
(102
)
 
(210
)
 
(822
)
Realized gains (losses) on investments recorded in income
$
(1,763
)
 
$
10,489

 
$
2,938


(1)
Amount represents the credit-related losses recognized for fixed maturities that were impaired through income but not written down to fair value. As discussed above, the non-credit portion of the losses have been recognized in other comprehensive income (loss).
(2)
Amount represents credit-related losses for other investments, real estate and fixed maturities written down to fair value through income.

Proceeds from sales of fixed maturities were $109.5 million in 2016, $108.5 million in 2015 and $67.2 million in 2014.



Realized losses on sales were on securities that we did not intend to sell at the prior balance sheet date or on securities that were impaired in a prior period, but decreased in value and were sold during the current reporting period.

 
 
Credit Loss Component of Other-than-temporary Impairments on Fixed Maturities
Credit Loss Component of Other-Than-Temporary Impairments on Fixed Maturities

The following table sets forth the amount of credit loss impairments on fixed maturities held by the Company as of the dates indicated for which the non-credit portion of the OTTI was recognized in other comprehensive income (loss) and corresponding changes in such amounts.

 
 
Year ended December 31,
 
 
2016
 
2015
 
 
(Dollars in thousands)
Balance at beginning of period
 
$
(11,498
)
 
$
(16,772
)
Increases for newly impaired investments
 
(2,595
)
 

Increases to previously impaired investments
 
(2,172
)
 
(363
)
Reductions due to investments sold
 
1,765

 
5,637

Balance at end of period
 
$
(14,500
)
 
$
(11,498
)
 
 
Variable Interest Entities
Variable Interest Entities

We evaluate our variable interest entity (VIE) investees to determine whether the level of our direct ownership interest, our rights to manage operations or our obligation to provide ongoing financial support are such that we are the primary beneficiary of the entity, and would therefore be required to consolidate it for financial reporting purposes. After determining that VIE status exists, we review our involvement in the VIE to determine whether we have both the power to direct activities that most significantly impact the economic performance of the VIE, and the obligation to absorb losses or the rights to receive benefits that could be potentially significant to the VIE. This analysis includes a review of the purpose and design of the VIE, as well as the role that we played in the formation of the entity and how that role could impact our ability to control the VIE. We also review the activities and decisions considered significant to the economic performance of the VIE and assess what power we have in directing those activities and decisions. Finally, we review the agreements in place to determine if there are any guarantees that would affect our maximum exposure to loss.

We have reviewed the circumstances surrounding our investments in VIEs, which are classified as securities and indebtedness of related parties, and consist of LIHTC, limited partnerships or limited liability companies accounted for under the equity method. In addition, we have reviewed the ownership interests in our VIEs and determined that we do not hold direct majority ownership or have other contractual rights (such as kick out rights) that give us effective control over these entities resulting in us having both the power to direct activities that most significantly impact the economic performance of the VIE and the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. The maximum loss exposure relative to our VIEs is limited to the carrying value and any unfunded commitments that exist for each particular VIE. Based on this analysis, none of our VIEs were required to be consolidated at December 31, 2016 or December 31, 2015.

There were no circumstances that occurred during 2016 or 2015 that resulted in any changes in our decision not to consolidate any of our VIEs. We also have not provided additional support or other guarantees that was not previously contractually required (financial or otherwise) to any of the VIEs as of December 31, 2016 or December 31, 2015.

VIE Investments by Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
 
December 31, 2015
 
Carrying Value
 
Maximum Exposure to Loss
 
Carrying Value (1)
 
Maximum Exposure to Loss (1)
 
(Dollars in thousands)
LIHTC
$
91,255

 
$
95,058

 
$
94,170

 
$
102,626

Investment companies
23,379

 
45,569

 
20,004

 
35,604

Real estate limited partnerships
10,790

 
14,558

 
9,554

 
15,610

Other
429

 
2,034

 
637

 
2,448

Total
$
125,853

 
$
157,219

 
$
124,365

 
$
156,288


(1)
Prior year values have been updated for comparability with the amounts as presented under the new accounting guidance discussed in Note 1.

In addition, we make passive investments in the normal course of business in structured securities issued by VIEs for which we are not the investment manager. These structured securities include all of the residential mortgage-backed securities, commercial mortgage-backed securities and other asset-backed securities included in our fixed maturities. Our maximum exposure to loss on these securities is limited to our carrying value in the investment. We have determined that we are not the primary beneficiary of these structured securities because we do not have the power to direct the activities that most significantly impact the entities' economic performance.

 
 
Schedule of Derivative Instruments
Derivative Instruments

Our primary derivative exposure relates to purchased call options, which provide an economic hedge to the embedded derivatives in our indexed annuity and universal life insurance products. We also have embedded derivatives within our modified coinsurance agreements as well as an interest-only fixed maturity investment. We do not apply hedge accounting to any of our derivative positions, and they are held at fair value.

Derivatives Instruments by Type
 
 
December 31, 2016
 
December 31, 2015
 
(Dollars in thousands)
Assets
 
 
 
Freestanding derivatives:
 
 
 
Call options (reported in other investments)
$
9,360

 
$
2,331

Embedded derivatives:
 
 
 
Modified coinsurance (reported in reinsurance recoverable)
3,411

 
2,636

Interest-only security (reported in fixed maturities)
3,374

 
4,551

Total assets
$
16,145

 
$
9,518

 
 
 
 
Liabilities
 
 
 
Embedded derivatives:
 
 
 
Indexed annuity and universal life products (reported in liability for future policy benefits)
$
15,778

 
$
9,374

Modified coinsurance agreements (reported in other liabilities)
114

 
56

Total liabilities
$
15,892

 
$
9,430


Derivative Income (Loss)
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
2016
 
2015
 
2014
 
 
(Dollars in thousands)
Change in fair value of free standing derivatives:
 
 
 
 
 
 
Call options
 
$
5,603

 
$
(1,904
)
 
$
1,559

Change in fair value of embedded derivatives:
 
 
 
 
 
 
Modified coinsurance agreements
 
716

 
(809
)
 
711

Interest-only security
 
229

 
23

 

Indexed annuity and universal life products
 
(2,390
)
 
2,577

 
(432
)
Call option amortization
 
(5,601
)
 
(3,122
)
 
(1,535
)
Call option proceeds
 
2,988

 
3,546

 
1,761

Total income from derivatives
 
$
1,545

 
$
311

 
$
2,064


Derivative income (loss) is reported in net investment income except for the change in fair value of the embedded derivatives on our indexed annuity and universal life products, which is reported in interest sensitive product benefits.

The call options are supported by securities collateral received of $6.3 million at December 31, 2016, which is held in a separate custodial account. Subject to certain constraints, we are permitted to sell or re-pledge this collateral, but do not have legal rights to the collateral; accordingly, it has not been recorded on our balance sheet. At December 31, 2016, none of the collateral had been sold or re-pledged. All of our counterparties are rated A- or better by a nationally recognized statistical rating organization.
 
 
Affordable Housing Program
Low Income Housing Tax Credit Investments

We invest in non-guaranteed federal LIHTC, which are included in securities and indebtedness of related parties in the balance sheet. The carrying value of these investments totaled $91.3 million at December 31, 2016 and $94.2 million at December 31, 2015. There were no impairment losses recorded on these investments during 2016, 2015 or 2014. We use the equity method of accounting for these investments and recorded the following in our consolidated statement of operations.
LIHTC Equity Income (Loss), Net of Related Income Taxes
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
2016
 
2015
 
2014
 
 
(Dollars in thousands)
Equity losses from LIHTC
 
$
(7,547
)
 
$
(7,022
)
 
$
(6,411
)
Income tax benefits:
 
 
 
 
 
 
Tax benefits from equity losses
 
2,641

 
2,458

 
2,244

Investment tax credits
 
14,077

 
13,542

 
12,209

Equity income from LIHTC, net of related income benefits
 
$
9,171

 
$
8,978

 
$
8,042


At December 31, 2016, we had committed to provide additional funds for limited partnerships and limited liability companies in which we invest. The amounts of these unfunded commitments totaled $31.4 million, including $3.8 million for commitments to LIHTC, which are summarized by year in the following table.

Commitments to LIHTC by Year
 
 
December 31, 2016
 
(Dollars in thousands)
2017
$
2,898

2018
590

2019 - 2024
315

Total
$
3,803


Other

At December 31, 2016, affidavits of deposits covering investments with a carrying value totaling $7,561.9 million were on deposit with state agencies to meet regulatory requirements. Fixed maturities with a carrying value of $496.8 million were on deposit with the Federal Home Loan Bank of Des Moines (FHLB) as collateral for funding agreements.

The carrying value of investments which have been non-income producing for the twelve months preceding December 31, 2016 includes real estate totaling $2.0 million.

No investment in any entity or its affiliates (other than bonds issued by agencies of the United States Government) exceeded 10.0% of stockholders' equity at December 31, 2016.