UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM 10-Q | |
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 |
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF | |
THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from __________ to __________ | |
Commission File Number: 000-55522 | |
NATIONAL WESTERN LIFE GROUP, INC. | |
(formerly NATIONAL WESTERN LIFE INSURANCE COMPANY) | |
(Exact name of Registrant as specified in its charter) | |
DELAWARE | 47-3339380 |
(State of Incorporation) | (I.R.S. Employer Identification Number) |
850 EAST ANDERSON LANE | |
AUSTIN, TEXAS 78752-1602 | (512) 836-1010 |
(Address of Principal Executive Offices) | (Telephone Number) |
TABLE OF CONTENTS | |
Page | |
September 30, 2015 (Unaudited) and December 31, 2014 | |
For the Three Months Ended September 30, 2015 and 2014 (Unaudited) | |
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) | |
For the Three Months Ended September 30, 2015 and 2014 (Unaudited) | |
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) | |
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) | |
For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | September 30, 2015 | December 31, 2014 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,466,665 and $7,175,443) | $ | 7,190,780 | 6,841,543 | |||
Securities available for sale, at fair value (cost: $2,783,145 and $2,590,074) | 2,859,953 | 2,728,680 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 88,061 | 149,503 | ||||
Policy loans | 61,611 | 63,645 | ||||
Derivatives, index options | 25,226 | 114,287 | ||||
Other long-term investments | 27,634 | 28,774 | ||||
Total investments | 10,253,265 | 9,926,432 | ||||
Cash and cash equivalents | 86,357 | 277,078 | ||||
Deferred policy acquisition costs | 835,446 | 802,919 | ||||
Deferred sales inducements | 156,670 | 159,766 | ||||
Accrued investment income | 100,719 | 96,127 | ||||
Federal income tax receivable | 19,367 | — | ||||
Other assets | 94,321 | 89,570 | ||||
Total assets | $ | 11,546,145 | 11,351,892 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | September 30, 2015 | December 31, 2014 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,504,202 | 9,384,297 | |||
Traditional life reserves | 137,726 | 138,225 | ||||
Other policyholder liabilities | 146,603 | 139,222 | ||||
Deferred Federal income tax liability | 51,364 | 31,675 | ||||
Federal income tax payable | — | 3,336 | ||||
Other liabilities | 105,485 | 98,817 | ||||
Total liabilities | 9,945,380 | 9,795,572 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,436,166 issued and outstanding in 2015 and 2014 | 3,436 | 3,436 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2015 and 2014 | 200 | 200 | ||||
Additional paid-in capital | 38,116 | 38,116 | ||||
Accumulated other comprehensive income | 19,826 | 41,786 | ||||
Retained earnings | 1,539,187 | 1,472,782 | ||||
Total stockholders’ equity | 1,600,765 | 1,556,320 | ||||
Total liabilities and stockholders' equity | $ | 11,546,145 | 11,351,892 |
2015 | 2014 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 39,175 | 36,602 | ||||
Traditional life premiums | 4,840 | 4,506 | |||||
Net investment income | 56,209 | 110,966 | |||||
Other revenues | 5,067 | 5,377 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 284 | — | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (284 | ) | — | ||||
Net OTTI losses recognized in earnings | — | — | |||||
Other net investment gains (losses) | 813 | 2,169 | |||||
Total net realized investment gains (losses) | 813 | 2,169 | |||||
Total revenues | 106,104 | 159,620 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 14,181 | 13,163 | |||||
Amortization of deferred policy acquisition costs | 32,058 | 23,467 | |||||
Universal life and annuity contract interest | 16,259 | 59,211 | |||||
Other operating expenses | 18,482 | 20,451 | |||||
Total benefits and expenses | 80,980 | 116,292 | |||||
Earnings before Federal income taxes | 25,124 | 43,328 | |||||
Federal income taxes | 8,903 | 14,862 | |||||
Net earnings | $ | 16,221 | 28,466 | ||||
Basic earnings per share: | |||||||
Class A | $ | 4.59 | $ | 8.05 | |||
Class B | $ | 2.29 | $ | 4.03 | |||
Diluted earnings per share: | |||||||
Class A | $ | 4.59 | $ | 8.05 | |||
Class B | $ | 2.29 | $ | 4.03 |
2015 | 2014 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 114,833 | 112,824 | ||||
Traditional life premiums | 14,349 | 13,946 | |||||
Net investment income | 258,391 | 374,596 | |||||
Other revenues | 15,590 | 16,351 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 442 | (32 | ) | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (549 | ) | (3 | ) | |||
Net OTTI losses recognized in earnings | (107 | ) | (35 | ) | |||
Other net investment gains (losses) | 6,156 | 6,782 | |||||
Total net realized investment gains (losses) | 6,049 | 6,747 | |||||
Total revenues | 409,212 | 524,464 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 49,567 | 40,922 | |||||
Amortization of deferred policy acquisition costs | 87,780 | 79,304 | |||||
Universal life and annuity contract interest | 114,729 | 224,576 | |||||
Other operating expenses | 57,794 | 63,414 | |||||
Total benefits and expenses | 309,870 | 408,216 | |||||
Earnings before Federal income taxes | 99,342 | 116,248 | |||||
Federal income taxes | 32,937 | 38,773 | |||||
Net earnings | $ | 66,405 | 77,475 | ||||
Basic earnings per share: | |||||||
Class A | $ | 18.78 | $ | 21.92 | |||
Class B | $ | 9.39 | $ | 10.95 | |||
Diluted earnings per share: | |||||||
Class A | $ | 18.77 | $ | 21.91 | |||
Class B | $ | 9.39 | $ | 10.95 | |||
2015 | 2014 | |||||
Net earnings | $ | 16,221 | 28,466 | |||
Other comprehensive income (loss), net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (7,334 | ) | (7,793 | ) | ||
Net unrealized liquidity gains (losses) | 95 | (23 | ) | |||
Reclassification adjustment for net amounts included in net earnings | (96 | ) | (958 | ) | ||
Net unrealized gains (losses) on securities | (7,335 | ) | (8,774 | ) | ||
Foreign currency translation adjustments | 54 | (3 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (303 | ) | (176 | ) | ||
Other comprehensive income (loss) | (7,584 | ) | (8,953 | ) | ||
Comprehensive income (loss) | $ | 8,637 | 19,513 |
2015 | 2014 | |||||
Net earnings | $ | 66,405 | 77,475 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (19,164 | ) | 14,101 | |||
Net unrealized liquidity gains (losses) | 188 | 28 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,116 | ) | (3,329 | ) | ||
Net unrealized gains (losses) on securities | (21,092 | ) | 10,800 | |||
Foreign currency translation adjustments | 42 | (636 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (910 | ) | (527 | ) | ||
Other comprehensive income (loss) | (21,960 | ) | 9,637 | |||
Comprehensive income (loss) | $ | 44,445 | 87,112 | |||
NATIONAL WESTERN LIFE GROUP, INC. (formerly NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES) CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,636 | 3,635 | ||||
Shares exercised under stock option plan | — | 1 | |||||
Balance at end of period | 3,636 | 3,636 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 38,116 | 37,767 | |||||
Shares exercised under stock option plan | — | 349 | |||||
Balance at end of period | 38,116 | 38,116 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 54,229 | 46,693 | |||||
Change in unrealized gains (losses) during period, net of tax | (21,280 | ) | 10,772 | ||||
Balance at end of period | 32,949 | 57,465 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,262 | ) | (1,287 | ) | |||
Amortization | 357 | 80 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (169 | ) | (53 | ) | |||
Balance at end of period | (1,074 | ) | (1,260 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (1 | ) | (2 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | — | (1 | ) | ||||
Recoveries, net of tax | — | 2 | |||||
Balance at end of period | (1 | ) | (1 | ) | |||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE GROUP, INC. (formerly NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES) CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(continued) For the Nine Months Ended September30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,685 | 3,241 | |||||
Change in translation adjustments during period | 42 | (636 | ) | ||||
Balance at end of period | 2,727 | 2,605 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (13,865 | ) | (10,565 | ) | |||
Amortization of net prior service cost and net loss, net of tax | (910 | ) | (527 | ) | |||
Balance at end of period | (14,775 | ) | (11,092 | ) | |||
Accumulated other comprehensive income at end of period | 19,826 | 47,717 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,472,782 | 1,368,466 | |||||
Net earnings | 66,405 | 77,475 | |||||
Stockholder dividends | — | (1,272 | ) | ||||
Balance at end of period | 1,539,187 | 1,444,669 | |||||
Total stockholders' equity | $ | 1,600,765 | $ | 1,534,138 |
NATIONAL WESTERN LIFE GROUP, INC. (formerly NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 66,405 | 77,475 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 114,729 | 224,576 | |||||
Surrender charges and other policy revenues | (13,302 | ) | (9,531 | ) | |||
Realized (gains) losses on investments | (6,049 | ) | (7,225 | ) | |||
Accretion/amortization of discounts and premiums, investments | 9 | (831 | ) | ||||
Depreciation and amortization | 2,317 | 2,522 | |||||
(Increase) decrease in value of derivatives | 69,884 | (49,278 | ) | ||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (632 | ) | (16,197 | ) | |||
(Increase) decrease in accrued investment income | (4,592 | ) | (4,889 | ) | |||
(Increase) decrease in other assets | (6,578 | ) | 28 | ||||
Increase (decrease) in liabilities for future policy benefits | 6,887 | 3,956 | |||||
Increase (decrease) in other policyholder liabilities | 7,382 | (412 | ) | ||||
Increase (decrease) in Federal income taxes liability | (22,703 | ) | (15,717 | ) | |||
Increase (decrease) in deferred Federal income tax | 31,047 | 23,408 | |||||
Increase (decrease) in other liabilities | 2,452 | 1,848 | |||||
Other, net | — | 1 | |||||
Net cash provided by operating activities | 247,256 | 229,734 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | — | |||||
Securities available for sale | 14,011 | 19,511 | |||||
Other investments | 2,182 | 3,247 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 343,494 | 591,536 | |||||
Securities available for sale | 219,676 | 213,260 | |||||
Derivatives, index options | 83,835 | 164,059 | |||||
Purchases of: | |||||||
Securities held to maturity | (684,725 | ) | (933,997 | ) | |||
Securities available for sale | (423,672 | ) | (275,751 | ) | |||
Derivatives, index options | (66,395 | ) | (53,174 | ) | |||
Other investments | (1,340 | ) | (376 | ) | |||
Net change in short-term investments | — | ||||||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE GROUP, INC. (formerly NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, (continued) For the Nine Months Ended September 30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Principal payments on mortgage loans | 66,830 | 14,112 | |||||
Cost of mortgage loans acquired | (5,040 | ) | (33,985 | ) | |||
Decrease (increase) in policy loans | 2,034 | 2,223 | |||||
Other, net | — | (1 | ) | ||||
Net cash used in investing activities | (449,110 | ) | (289,336 | ) | |||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 679,128 | 715,705 | |||||
Return of account balances on universal life and annuity contracts | (668,037 | ) | (655,195 | ) | |||
Issuance of common stock under stock option plan | — | 350 | |||||
Net cash provided by (used in) financing activities | 11,091 | 60,860 | |||||
Effect of foreign exchange | 42 | (635 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (190,721 | ) | 623 | ||||
Cash and cash equivalents at beginning of period | 277,078 | 120,859 | |||||
Cash and cash equivalents at end of period | $ | 86,357 | $ | 121,482 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 30 | 30 | ||||
Income taxes | $ | 24,127 | 30,515 | ||||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (9,171 | ) | (6,066 | ) |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
Affected Line Item in the Statements of Earnings | Amount Reclassified From Accumulated Other Comprehensive Income | ||||||||||||
Three Months Ended September 30, | Nine months ended September 30, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 147 | 1,474 | 3,362 | 5,156 | ||||||||
Net OTTI losses recognized in earnings | — | — | (107 | ) | (35 | ) | |||||||
Earnings before Federal income taxes | 147 | 1,474 | 3,255 | 5,121 | |||||||||
Federal income taxes | 51 | 516 | 1,139 | 1,792 | |||||||||
Net earnings | $ | 96 | 958 | 2,116 | 3,329 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended September 30, | ||||||||||||
2015 | 2014 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 16,221 | 28,466 | |||||||||
Dividends - Class A shares | — | (1,236 | ) | |||||||||
Dividends - Class B shares | — | (36 | ) | |||||||||
Undistributed income | $ | 16,221 | 27,194 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | 1,236 | 36 | |||||||
Allocation of undistributed income | 15,763 | 458 | 26,425 | 769 | ||||||||
Net income | $ | 15,763 | 458 | 27,661 | 805 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,436 | 200 | ||||||||
Effect of dilutive stock options | 1 | — | 2 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,438 | 200 | ||||||||
Basic Earnings Per Share | $ | 4.59 | 2.29 | 8.05 | 4.03 | |||||||
Diluted Earnings Per Share | $ | 4.59 | 2.29 | 8.05 | 4.03 |
Nine Months Ended September 30, | ||||||||||||
2015 | 2014 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 66,405 | 77,475 | |||||||||
Dividends - Class A shares | — | (1,236 | ) | |||||||||
Dividends - Class B shares | — | (36 | ) | |||||||||
Undistributed income | $ | 66,405 | 76,203 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | 1,236 | 36 | |||||||
Allocation of undistributed income | 64,527 | 1,878 | 74,048 | 2,155 | ||||||||
Net income | $ | 64,527 | 1,878 | 75,284 | 2,191 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 1 | — | 2 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 18.78 | 9.39 | 21.92 | 10.95 | |||||||
Diluted Earnings Per Share | $ | 18.77 | 9.39 | 21.91 | 10.95 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 51 | 42 | 153 | 126 | |||||||
Interest cost | 246 | 239 | 738 | 718 | ||||||||
Expected return on plan assets | (330 | ) | (320 | ) | (991 | ) | (959 | ) | ||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | ||||||||
Amortization of net loss | 196 | 106 | 588 | 317 | ||||||||
Net periodic benefit cost | $ | 164 | 68 | 491 | 205 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 64 | 74 | 192 | 222 | |||||||
Interest cost | 219 | 250 | 657 | 752 | ||||||||
Amortization of prior service cost | 14 | 15 | 44 | 44 | ||||||||
Amortization of net loss | 379 | 323 | 1,136 | 970 | ||||||||
Net periodic benefit cost | $ | 676 | 662 | 2,029 | 1,988 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 33 | 28 | 98 | 83 | |||||||
Amortization of prior service cost | 25 | 26 | 77 | 78 | ||||||||
Amortization of net loss | 15 | (1 | ) | 45 | (3 | ) | ||||||
Net periodic benefit cost | $ | 73 | 53 | 220 | 158 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2015 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 73,746 | 252,632 | 665,738 | — | 992,116 | |||||||||
Total segment assets | 831,407 | 1,260,628 | 8,999,978 | 262,310 | 11,354,323 | ||||||||||
Future policy benefits | 720,998 | 944,618 | 7,976,312 | — | 9,641,928 | ||||||||||
Other policyholder liabilities | 11,437 | 17,835 | 117,331 | — | 146,603 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 8,259 | 29,773 | 5,983 | — | 44,015 | |||||||||
Net investment income | 2,095 | 448 | 49,518 | 4,148 | 56,209 | ||||||||||
Other revenues | 3 | 5 | 12 | 5,047 | 5,067 | ||||||||||
Total revenues | 10,357 | 30,226 | 55,513 | 9,195 | 105,291 | ||||||||||
Life and other policy benefits | 3,545 | 5,002 | 5,634 | — | 14,181 | ||||||||||
Amortization of deferred acquisition costs | 1,594 | 6,834 | 23,630 | — | 32,058 | ||||||||||
Universal life and annuity contract interest | 14 | (854 | ) | 17,099 | — | 16,259 | |||||||||
Other operating expenses | 2,397 | 3,929 | 7,254 | 4,902 | 18,482 | ||||||||||
Federal income taxes (benefit) | 911 | 5,363 | 825 | 1,520 | 8,619 | ||||||||||
Total expenses | 8,461 | 20,274 | 54,442 | 6,422 | 89,599 | ||||||||||
Segment earnings (loss) | $ | 1,896 | 9,952 | 1,071 | 2,773 | 15,692 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine months ended | |||||||||||||||
September 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 22,683 | 89,470 | 17,029 | — | 129,182 | |||||||||
Net investment income | 17,265 | 17,847 | 208,263 | 15,016 | 258,391 | ||||||||||
Other revenues | 23 | 66 | 31 | 15,470 | 15,590 | ||||||||||
Total revenues | 39,971 | 107,383 | 225,323 | 30,486 | 403,163 | ||||||||||
Life and other policy benefits | 12,540 | 16,794 | 20,233 | — | 49,567 | ||||||||||
Amortization of deferred acquisition costs | 6,473 | 11,347 | 69,960 | — | 87,780 | ||||||||||
Universal life and annuity contract interest | 10,413 | 13,203 | 91,113 | — | 114,729 | ||||||||||
Other operating expenses | 9,554 | 15,063 | 18,866 | 14,311 | 57,794 | ||||||||||
Federal income taxes (benefit) | 327 | 16,840 | 8,309 | 5,344 | 30,820 | ||||||||||
Total expenses | 39,307 | 73,247 | 208,481 | 19,655 | 340,690 | ||||||||||
Segment earnings (loss) | $ | 664 | 34,136 | 16,842 | 10,831 | 62,473 | |||||||||
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 61,087 | 242,124 | 652,855 | — | 956,066 | |||||||||
Total segment assets | 705,156 | 1,223,571 | 8,871,276 | 251,905 | 11,051,908 | ||||||||||
Future policy benefits | 611,550 | 944,505 | 7,848,590 | — | 9,404,645 | ||||||||||
Other policyholder liabilities | 12,742 | 12,226 | 117,207 | — | 142,175 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 6,847 | 29,135 | 5,126 | — | 41,108 | |||||||||
Net investment income | 6,859 | 8,273 | 90,835 | 4,999 | 110,966 | ||||||||||
Other revenues | 19 | 20 | 23 | 5,315 | 5,377 | ||||||||||
Total revenues | 13,725 | 37,428 | 95,984 | 10,314 | 157,451 | ||||||||||
Life and other policy benefits | 3,353 | 9,672 | 138 | — | 13,163 | ||||||||||
Amortization of deferred acquisition costs | 1,166 | 2,525 | 19,776 | — | 23,467 | ||||||||||
Universal life and annuity contract interest | 5,803 | 6,956 | 46,452 | — | 59,211 | ||||||||||
Other operating expenses | 2,314 | 6,307 | 7,045 | 4,785 | 20,451 | ||||||||||
Federal income taxes (benefit) | 379 | 4,143 | 7,681 | 1,899 | 14,102 | ||||||||||
Total expenses | 13,015 | 29,603 | 81,092 | 6,684 | 130,394 | ||||||||||
Segment earnings (loss) | $ | 710 | 7,825 | 14,892 | 3,630 | 27,057 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine months ended | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 22,077 | 87,906 | 16,787 | — | 126,770 | |||||||||
Net investment income | 24,044 | 35,902 | 300,118 | 14,532 | 374,596 | ||||||||||
Other revenues | 40 | 321 | 63 | 15,927 | 16,351 | ||||||||||
Total revenues | 46,161 | 124,129 | 316,968 | 30,459 | 517,717 | ||||||||||
Life and other policy benefits | 7,268 | 16,375 | 17,279 | — | 40,922 | ||||||||||
Amortization of deferred acquisition costs | 5,346 | 18,078 | 55,880 | — | 79,304 | ||||||||||
Universal life and annuity contract interest | 19,066 | 32,820 | 172,690 | — | 224,576 | ||||||||||
Other operating expenses | 10,585 | 18,167 | 19,965 | 14,697 | 63,414 | ||||||||||
Federal income taxes (benefit) | 1,295 | 12,865 | 17,010 | 5,241 | 36,411 | ||||||||||
Total expenses | 43,560 | 98,305 | 282,824 | 19,938 | 444,627 | ||||||||||
Segment earnings (loss) | $ | 2,601 | 25,824 | 34,144 | 10,521 | 73,090 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 44,015 | 41,108 | 129,182 | 126,770 | |||||||
Net investment income | 56,209 | 110,966 | 258,391 | 374,596 | ||||||||
Other revenues | 5,067 | 5,377 | 15,590 | 16,351 | ||||||||
Realized gains (losses) on investments | 813 | 2,169 | 6,049 | 6,747 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 106,104 | 159,620 | 409,212 | 524,464 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||