Rendering

Component: (Network and Table)
Network
131 - Disclosure - Fair Value of Financial Instruments (Tables)
(http://horacemann.com/role/FairValueOfFinancialInstrumentsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Fair Value Disclosures [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Fair Value Disclosures [Abstract]
 
Summary of Company's fair value hierarchy measured at recurring basis
The following table presents the Company’s fair value hierarchy for those assets and liabilities measured and carried at fair value on a recurring basis. At December 31, 2016, these Level 3 invested assets comprised approximately 2.7% of the Company’s total investment portfolio fair value.
 
 
 
 
 
 
 
 
 
Fair Value Measurements at
 
 
 
Carrying
 
 
Fair
 
 
Reporting Date Using
 
 
 
Amount
 
 
Value
 
 
Level 1
 
 
Level 2
 
 
Level 3
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and federally sponsored agency obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
442,419
 
 
$
442,419
 
 
$
-
 
 
$
439,004
 
 
$
3,415
 
Other, including
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
 
467,143
 
 
 
467,143
 
 
 
13,631
 
 
 
453,512
 
 
 
-
 
Municipal bonds
 
 
1,769,397
 
 
 
1,769,397
 
 
 
-
 
 
 
1,722,900
 
 
 
46,497
 
Foreign government bonds
 
 
98,669
 
 
 
98,669
 
 
 
-
 
 
 
98,669
 
 
 
-
 
Corporate bonds
 
 
2,810,221
 
 
 
2,810,221
 
 
 
13,532
 
 
 
2,736,498
 
 
 
60,191
 
Other mortgage-backed securities
 
 
1,868,859
 
 
 
1,868,859
 
 
 
-
 
 
 
1,767,615
 
 
 
101,244
 
Total fixed maturities
 
 
7,456,708
 
 
 
7,456,708
 
 
 
27,163
 
 
 
7,218,198
 
 
 
211,347
 
Equity securities
 
 
141,649
 
 
 
141,649
 
 
 
98,632
 
 
 
43,011
 
 
 
6
 
Short-term investments
 
 
44,918
 
 
 
44,918
 
 
 
44,167
 
 
 
-
 
 
 
751
 
Other investments
 
 
20,194
 
 
 
20,194
 
 
 
-
 
 
 
20,194
 
 
 
-
 
Totals
 
 
7,663,469
 
 
 
7,663,469
 
 
 
169,962
 
 
 
7,281,403
 
 
 
212,104
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment contract and life policy reserves, embedded derivatives
 
 
158
 
 
 
158
 
 
 
-
 
 
 
158
 
 
 
-
 
Other policyholder funds, embedded derivatives
 
 
59,393
 
 
 
59,393
 
 
 
-
 
 
 
-
 
 
 
59,393
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government and federally sponsored agency obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
504,414
 
 
$
504,414
 
 
$
-
 
 
$
504,414
 
 
$
-
 
Other, including
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
 
546,111
 
 
 
546,111
 
 
 
14,258
 
 
 
531,853
 
 
 
-
 
Municipal bonds
 
 
1,708,943
 
 
 
1,708,943
 
 
 
-
 
 
 
1,678,564
 
 
 
30,379
 
Foreign government bonds
 
 
73,617
 
 
 
73,617
 
 
 
-
 
 
 
73,617
 
 
 
-
 
Corporate bonds
 
 
2,779,415
 
 
 
2,779,415
 
 
 
10,195
 
 
 
2,701,645
 
 
 
67,575
 
Other mortgage-backed securities
 
 
1,478,840
 
 
 
1,478,840
 
 
 
-
 
 
 
1,403,374
 
 
 
75,466
 
Total fixed maturities
 
 
7,091,340
 
 
 
7,091,340
 
 
 
24,453
 
 
 
6,893,467
 
 
 
173,420
 
Equity securities
 
 
99,797
 
 
 
99,797
 
 
 
86,088
 
 
 
13,703
 
 
 
6
 
Short-term investments
 
 
174,152
 
 
 
174,152
 
 
 
169,764
 
 
 
4,388
 
 
 
-
 
Other investments
 
 
14,001
 
 
 
14,001
 
 
 
-
 
 
 
14,001
 
 
 
-
 
Totals
 
 
7,379,290
 
 
 
7,379,290
 
 
 
280,305
 
 
 
6,925,559
 
 
 
173,426
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment contract and life policy reserves, embedded derivatives
 
 
14
 
 
 
14
 
 
 
-
 
 
 
14
 
 
 
-
 
Other policyholder funds, embedded derivatives
 
 
39,021
 
 
 
39,021
 
 
 
-
 
 
 
-
 
 
 
39,021
 
 
 
Table for reconciliations for all Level 3 assets measured at fair value on a recurring basis
The following tables present reconciliations for the periods indicated for all Level 3 assets and liabilities measured at fair value on a recurring basis.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial
 
 
 
Financial Assets
 
Liabilities(1)
 
 
 
 
 
 
 
 
 
Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal
 
Corporate
 
Backed
 
Fixed
 
Equity
 
Short-term
 
 
 
 
 
 
 
 
Bonds
 
Bonds
 
Securities (2)
 
Maturities
 
Securities
 
Investments
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2016
 
$
30,379
 
$
67,575
 
$
75,466
 
$
173,420
 
$
6
 
$
-
 
$
173,426
 
$
39,021
 
Transfers into Level 3 (3)
 
 
17,710
 
 
27,561
 
 
39,128
 
 
84,399
 
 
-
 
 
751
 
 
85,150
 
 
-
 
Transfers out of Level 3 (3)
 
 
-
 
 
(14,334)
 
 
(6,694)
 
 
(21,028)
 
 
-
 
 
-
 
 
(21,028)
 
 
-
 
Total gains or losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized investment gains (losses) included in net income related to financial assets
 
 
-
 
 
(1,833)
 
 
(56)
 
 
(1,889)
 
 
-
 
 
-
 
 
(1,889)
 
 
-
 
Net realized (gains) losses included in net income related to financial liabilities
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
5,011
 
Net unrealized investment gains (losses) included in other comprehensive income
 
 
(990)
 
 
(205)
 
 
5,895
 
 
4,700
 
 
-
 
 
-
 
 
4,700
 
 
-
 
Purchases
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Issuances
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
17,113
 
Sales
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Settlements
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Paydowns, maturities and distributions
 
 
(602)
 
 
(18,573)
 
 
(9,080)
 
 
(28,255)
 
 
-
 
 
-
 
 
(28,255)
 
 
(1,752)
 
Ending balance, December 31, 2016
 
$
46,497
 
$
60,191
 
$
104,659
 
$
211,347
 
$
6
 
$
751
 
$
212,104
 
$
59,393
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance, January 1, 2015
 
$
13,628
 
$
74,717
 
$
82,949
 
$
171,294
 
$
6
 
$
-
 
$
171,300
 
$
20,049
 
Transfers into Level 3 (3)
 
 
16,326
 
 
5,729
 
 
15,685
 
 
37,740
 
 
-
 
 
-
 
 
37,740
 
 
-
 
Transfers out of Level 3 (3)
 
 
-
 
 
(1,351)
 
 
(9,663)
 
 
(11,014)
 
 
-
 
 
-
 
 
(11,014)
 
 
-
 
Total gains or losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net realized investment gains (losses) included in net income related to financial assets
 
 
-
 
 
1,087
 
 
-
 
 
1,087
 
 
(3)
 
 
-
 
 
1,084
 
 
-
 
Net realized (gains) losses included in net income related to financial liabilities
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(2,528)
 
Net unrealized investment gains (losses) included in other comprehensive income
 
 
782
 
 
(1,935)
 
 
(854)
 
 
(2,007)
 
 
4
 
 
-
 
 
(2,003)
 
 
-
 
Purchases
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Issuances
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
23,595
 
Sales
 
 
-
 
 
(476)
 
 
-
 
 
(476)
 
 
(1)
 
 
-
 
 
(477)
 
 
-
 
Settlements
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Paydowns, maturities and distributions
 
 
(357)
 
 
(10,196)
 
 
(12,651)
 
 
(23,204)
 
 
-
 
 
-
 
 
(23,204)
 
 
(2,095)
 
Ending balance, December 31, 2015
 
$
30,379
 
$
67,575
 
$
75,466
 
$
173,420
 
$
6
 
$
-
 
$
173,426
 
$
39,021
 
 
(1)
Represents embedded derivatives, all related to the Company’s FIA products, reported in Other policyholder funds in the Company’s Consolidated Balance Sheets.
(2)
Includes U.S. Government and federally sponsored agency obligations for mortgage-backed securities and other mortgage-backed securities.
(3)
Transfers into and out of Level 3 during the years ended December 31, 2016 and 2015 were attributable to changes in the availability of observable market information for individual fixed maturity securities and short-term investments. The Company’s policy is to recognize transfers into and transfers out of the levels as having occurred at the end of the reporting period in which the transfers were determined.
 
 
Summary of fair value assets and liabilities measured on nonrecurring basis
The Company has various other financial assets and financial liabilities used in the normal course of business that are not carried at fair value, but for which fair value disclosure is required. The following table presents the carrying value, fair value and fair value hierarchy of these financial assets and financial liabilities.
 
 
 
 
 
 
 
 
 
Fair Value Measurements at
 
 
 
Carrying
 
Fair
 
Reporting Date Using
 
 
 
Amount
 
Value
 
Level 1
 
Level 2
 
Level 3
 
December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments
 
$
151,965
 
$
156,536
 
$
-
 
$
-
 
$
156,536
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment contract and life policy reserves, fixed annuity contracts
 
 
4,360,456
 
 
4,280,528
 
 
-
 
 
-
 
 
4,280,528
 
Investment contract and life policy reserves, account values on life contracts
 
 
79,591
 
 
85,066
 
 
-
 
 
-
 
 
85,066
 
Other policyholder funds
 
 
649,557
 
 
649,557
 
 
-
 
 
575,253
 
 
74,304
 
Long-term debt
 
 
247,209
 
 
248,191
 
 
248,191
 
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other investments
 
$
148,759
 
$
153,228
 
$
-
 
$
-
 
$
153,228
 
Financial Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment contract and life policy reserves, fixed annuity contracts
 
 
4,072,102
 
 
4,049,840
 
 
-
 
 
-
 
 
4,049,840
 
Investment contract and life policy reserves, account values on life contracts
 
 
77,429
 
 
81,360
 
 
-
 
 
-
 
 
81,360
 
Other policyholder funds
 
 
653,631
 
 
653,631
 
 
-
 
 
575,104
 
 
78,527
 
Long-term debt
 
 
246,975
 
 
252,700
 
 
252,700
 
 
-
 
 
-