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. | |
(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 | |
June 30, 2016 (Unaudited) and December 31, 2015 | |
For the Three Months Ended June 30, 2016 and 2015 (Unaudited) | |
For the Six Months Ended June 30, 2016 and 2015 (Unaudited) | |
For the Three Months Ended June 30, 2016 and 2015 (Unaudited) | |
For the Six Months Ended June 30, 2016 and 2015 (Unaudited) | |
For the Six Months Ended June 30, 2016 and 2015 (Unaudited) | |
For the Six Months Ended June 30, 2016 and 2015 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2016 | December 31, 2015 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,634,961 and $7,335,436) | $ | 7,177,135 | 7,173,967 | |||
Securities available for sale, at fair value (cost: $2,863,039 and $2,847,414) | 3,030,659 | 2,879,583 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 130,677 | 108,311 | ||||
Policy loans | 60,587 | 61,957 | ||||
Derivatives, index options | 63,319 | 38,409 | ||||
Other long-term investments | 48,056 | 26,787 | ||||
Short-term investments | 69,255 | — | ||||
Total investments | 10,579,688 | 10,289,014 | ||||
Cash and cash equivalents | 93,981 | 106,007 | ||||
Deferred policy acquisition costs | 794,406 | 853,451 | ||||
Deferred sales inducements | 141,103 | 159,166 | ||||
Accrued investment income | 98,963 | 99,619 | ||||
Federal income tax receivable | — | 12,512 | ||||
Other assets | 93,076 | 92,807 | ||||
Total assets | $ | 11,801,217 | 11,612,576 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2016 | December 31, 2015 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,622,852 | 9,561,358 | |||
Traditional life reserves | 136,469 | 138,000 | ||||
Other policyholder liabilities | 149,301 | 155,261 | ||||
Deferred Federal income tax liability | 83,413 | 49,333 | ||||
Federal income tax payable | 9,938 | — | ||||
Other liabilities | 98,835 | 96,638 | ||||
Total liabilities | 10,100,808 | 10,000,590 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $.01 par value; 7,500,000 shares authorized; 3,436,166 issued and outstanding in 2016 and 2015 | 34 | 34 | ||||
Class B - $.01 par value; 200,000 shares authorized, issued, and outstanding in 2016 and 2015 | 2 | 2 | ||||
Additional paid-in capital | 41,716 | 41,716 | ||||
Accumulated other comprehensive income | 45,207 | 329 | ||||
Retained earnings | 1,613,450 | 1,569,905 | ||||
Total stockholders’ equity | 1,700,409 | 1,611,986 | ||||
Total liabilities and stockholders' equity | $ | 11,801,217 | 11,612,576 |
2016 | 2015 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 41,448 | 38,345 | ||||
Traditional life premiums | 4,917 | 5,162 | |||||
Net investment income | 113,251 | 102,259 | |||||
Other revenues | 4,696 | 5,194 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 27 | (2 | ) | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (27 | ) | (105 | ) | |||
Net OTTI losses recognized in earnings | — | (107 | ) | ||||
Other net investment gains (losses) | 2,782 | 4,365 | |||||
Total net realized investment gains (losses) | 2,782 | 4,258 | |||||
Total revenues | 167,094 | 155,218 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 15,540 | 16,120 | |||||
Amortization of deferred policy acquisition costs | 28,966 | 28,070 | |||||
Universal life and annuity contract interest | 62,799 | 49,431 | |||||
Other operating expenses | 19,403 | 18,802 | |||||
Total benefits and expenses | 126,708 | 112,423 | |||||
Earnings before Federal income taxes | 40,386 | 42,795 | |||||
Federal income taxes | 14,100 | 13,937 | |||||
Net earnings | $ | 26,286 | 28,858 | ||||
Basic earnings per share: | |||||||
Class A | $ | 7.43 | $ | 8.16 | |||
Class B | $ | 3.72 | $ | 4.08 | |||
Diluted earnings per share: | |||||||
Class A | $ | 7.43 | $ | 8.16 | |||
Class B | $ | 3.72 | $ | 4.08 |
2016 | 2015 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 83,458 | 75,658 | ||||
Traditional life premiums | 9,090 | 9,509 | |||||
Net investment income | 208,751 | 202,182 | |||||
Other revenues | 9,574 | 10,523 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 53 | 158 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (53 | ) | (265 | ) | |||
Net OTTI losses recognized in earnings | — | (107 | ) | ||||
Other net investment gains (losses) | 5,163 | 5,343 | |||||
Total net realized investment gains (losses) | 5,163 | 5,236 | |||||
Total revenues | 316,036 | 303,108 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 31,141 | 35,386 | |||||
Amortization of deferred policy acquisition costs | 64,186 | 55,722 | |||||
Universal life and annuity contract interest | 111,816 | 98,470 | |||||
Other operating expenses | 42,710 | 39,312 | |||||
Total benefits and expenses | 249,853 | 228,890 | |||||
Earnings before Federal income taxes | 66,183 | 74,218 | |||||
Federal income taxes | 22,638 | 24,034 | |||||
Net earnings | $ | 43,545 | 50,184 | ||||
Basic earnings per share: | |||||||
Class A | $ | 12.31 | $ | 14.19 | |||
Class B | $ | 6.16 | $ | 7.10 | |||
Diluted earnings per share: | |||||||
Class A | $ | 12.31 | $ | 14.19 | |||
Class B | $ | 6.16 | $ | 7.10 | |||
2016 | 2015 | |||||
Net earnings | $ | 26,286 | 28,858 | |||
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 | 21,457 | (21,202 | ) | |||
Net unrealized liquidity gains (losses) | 9 | 32 | ||||
Reclassification adjustment for net amounts included in net earnings | (113 | ) | (1,855 | ) | ||
Net unrealized gains (losses) on securities | 21,353 | (23,025 | ) | |||
Foreign currency translation adjustments | (203 | ) | (53 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (284 | ) | (304 | ) | ||
Other comprehensive income (loss) | 20,866 | (23,382 | ) | |||
Comprehensive income (loss) | $ | 47,152 | 5,476 |
2016 | 2015 | |||||
Net earnings | $ | 43,545 | 50,184 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 46,103 | (11,830 | ) | |||
Net unrealized liquidity gains (losses) | 18 | 93 | ||||
Reclassification adjustment for net amounts included in net earnings | (573 | ) | (2,020 | ) | ||
Net unrealized gains (losses) on securities | 45,548 | (13,757 | ) | |||
Foreign currency translation adjustments | (103 | ) | (12 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (567 | ) | (607 | ) | ||
Other comprehensive income (loss) | 44,878 | (14,376 | ) | |||
Comprehensive income (loss) | $ | 88,423 | 35,808 | |||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 36 | 3,636 | ||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 36 | 3,636 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 41,716 | 38,116 | |||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 41,716 | 38,116 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 12,347 | 54,229 | |||||
Change in unrealized gains (losses) during period, net of tax | 45,530 | (13,850 | ) | ||||
Balance at end of period | 57,877 | 40,379 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (240 | ) | (1,262 | ) | |||
Amortization | 34 | 172 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (16 | ) | (79 | ) | |||
Balance at end of period | (222 | ) | (1,169 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (1 | ) | (1 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | — | — | |||||
Recoveries, net of tax | — | — | |||||
Balance at end of period | (1 | ) | (1 | ) | |||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(continued) For the Six Months Ended June 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,825 | 2,685 | |||||
Change in translation adjustments during period | (103 | ) | (12 | ) | |||
Balance at end of period | 2,722 | 2,673 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (14,602 | ) | (13,865 | ) | |||
Amortization of net prior service cost and net loss, net of tax | (567 | ) | (607 | ) | |||
Balance at end of period | (15,169 | ) | (14,472 | ) | |||
Accumulated other comprehensive income at end of period | 45,207 | 27,410 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,569,905 | 1,472,782 | |||||
Net earnings | 43,545 | 50,184 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,613,450 | 1,522,966 | |||||
Total stockholders' equity | $ | 1,700,409 | $ | 1,592,128 |
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 43,545 | 50,184 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 111,816 | 98,470 | |||||
Surrender charges and other policy revenues | (11,782 | ) | (8,302 | ) | |||
Realized (gains) losses on investments | (5,163 | ) | (5,236 | ) | |||
Accretion/amortization of discounts and premiums, investments | 4 | 102 | |||||
Depreciation and amortization | 4,012 | 1,671 | |||||
(Increase) decrease in value of derivatives | 10,806 | 17,069 | |||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | 11,677 | (2,190 | ) | ||||
(Increase) decrease in accrued investment income | 656 | (3,311 | ) | ||||
(Increase) decrease in other assets | (3,373 | ) | (6,938 | ) | |||
Increase (decrease) in liabilities for future policy benefits | (533 | ) | 2,588 | ||||
Increase (decrease) in other policyholder liabilities | (5,960 | ) | 4,558 | ||||
Increase (decrease) in Federal income taxes liability | 22,450 | (10,882 | ) | ||||
Increase (decrease) in deferred Federal income tax | 9,914 | 15,735 | |||||
Increase (decrease) in other liabilities | (2,605 | ) | 4,658 | ||||
Net cash provided by operating activities | 185,464 | 158,176 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | — | |||||
Securities available for sale | 7,966 | 13,131 | |||||
Other investments | 3,712 | — | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 188,498 | 257,063 | |||||
Securities available for sale | 98,929 | 163,057 | |||||
Derivatives, index options | 2,090 | 64,619 | |||||
Purchases of: | |||||||
Securities held to maturity | (185,189 | ) | (534,663 | ) | |||
Securities available for sale | (122,013 | ) | (310,637 | ) | |||
Derivatives, index options | (38,376 | ) | (40,977 | ) | |||
Other investments | (23,231 | ) | (420 | ) | |||
Net change in short-term investments | (69,255 | ) | — | ||||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, (continued) For the Six Months Ended June 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Principal payments on mortgage loans | 16,254 | 18,962 | |||||
Cost of mortgage loans acquired | (38,550 | ) | (1,632 | ) | |||
Decrease (increase) in policy loans | 1,370 | 1,712 | |||||
Net cash used in investing activities | (157,795 | ) | (369,785 | ) | |||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 429,101 | 452,124 | |||||
Return of account balances on universal life and annuity contracts | (468,639 | ) | (445,871 | ) | |||
Net cash provided by (used in) financing activities | (39,538 | ) | 6,253 | ||||
Effect of foreign exchange | (157 | ) | (12 | ) | |||
Net increase (decrease) in cash and cash equivalents | (12,026 | ) | (205,368 | ) | |||
Cash and cash equivalents at beginning of period | 106,007 | 277,078 | |||||
Cash and cash equivalents at end of period | $ | 93,981 | $ | 71,710 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid (received) during the period for: | |||||||
Interest | $ | 23 | 20 | ||||
Income taxes | $ | (10,000 | ) | 22,647 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (5,366 | ) | (6,895 | ) |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
Affected Line Item in the Statements of Earnings | Amount Reclassified From Accumulated Other Comprehensive Income | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 174 | 2,961 | 882 | 3,215 | ||||||||
Net OTTI losses recognized in earnings | — | (107 | ) | — | (107 | ) | |||||||
Earnings before Federal income taxes | 174 | 2,854 | 882 | 3,108 | |||||||||
Federal income taxes | 61 | 999 | 309 | 1,088 | |||||||||
Net earnings | $ | 113 | 1,855 | 573 | 2,020 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2016 | 2015 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 26,286 | 28,858 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 26,286 | 28,858 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 25,543 | 743 | 28,042 | 816 | ||||||||
Net income | $ | 25,543 | 743 | 28,042 | 816 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,436 | 200 | ||||||||
Effect of dilutive stock options | — | — | 1 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,436 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 7.43 | 3.72 | 8.16 | 4.08 | |||||||
Diluted Earnings Per Share | $ | 7.43 | 3.72 | 8.16 | 4.08 |
Six Months Ended June 30, | ||||||||||||
2016 | 2015 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 43,545 | 50,184 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 43,545 | 50,184 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 42,313 | 1,232 | 48,765 | 1,419 | ||||||||
Net income | $ | 42,313 | 1,232 | 48,765 | 1,419 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,436 | 200 | ||||||||
Effect of dilutive stock options | — | — | 1 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,436 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 12.31 | 6.16 | 14.19 | 7.10 | |||||||
Diluted Earnings Per Share | $ | 12.31 | 6.16 | 14.19 | 7.10 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 27 | 51 | 53 | 102 | |||||||
Interest cost | 250 | 246 | 500 | 492 | ||||||||
Expected return on plan assets | (304 | ) | (330 | ) | (608 | ) | (660 | ) | ||||
Amortization of prior service cost | — | 1 | — | 2 | ||||||||
Amortization of net loss | 193 | 196 | 386 | 392 | ||||||||
Net periodic benefit cost | $ | 166 | 164 | 331 | 328 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 109 | 64 | 218 | 128 | |||||||
Interest cost | 264 | 219 | 529 | 438 | ||||||||
Amortization of prior service cost | 15 | 15 | 30 | 30 | ||||||||
Amortization of net loss | 501 | 379 | 1,002 | 757 | ||||||||
Net periodic benefit cost | $ | 889 | 677 | 1,779 | 1,353 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 30 | 33 | 60 | 65 | |||||||
Amortization of prior service cost | 26 | 26 | 52 | 52 | ||||||||
Amortization of net loss | — | 15 | — | 30 | ||||||||
Net periodic benefit cost | $ | 56 | 74 | 112 | 147 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2016 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 77,592 | 242,335 | 615,582 | — | 935,509 | |||||||||
Total segment assets | 918,422 | 1,252,093 | 9,193,956 | 289,974 | 11,654,445 | ||||||||||
Future policy benefits | 782,641 | 926,045 | 8,050,635 | — | 9,759,321 | ||||||||||
Other policyholder liabilities | 14,741 | 15,345 | 119,215 | — | 149,301 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2016 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 8,648 | 31,437 | 6,280 | — | 46,365 | |||||||||
Net investment income | 9,584 | 10,593 | 86,556 | 6,518 | 113,251 | ||||||||||
Other revenues | 6 | 4 | (54 | ) | 4,740 | 4,696 | |||||||||
Total revenues | 18,238 | 42,034 | 92,782 | 11,258 | 164,312 | ||||||||||
Life and other policy benefits | 4,670 | 4,583 | 6,287 | — | 15,540 | ||||||||||
Amortization of deferred policy acquisition costs | 3,309 | (681 | ) | 26,338 | — | 28,966 | |||||||||
Universal life and annuity contract interest | 7,217 | 2,673 | 52,909 | — | 62,799 | ||||||||||
Other operating expenses | 3,323 | 5,650 | 5,927 | 4,503 | 19,403 | ||||||||||
Federal income taxes (benefit) | (86 | ) | 10,402 | 444 | 2,367 | 13,127 | |||||||||
Total expenses | 18,433 | 22,627 | 91,905 | 6,870 | 139,835 | ||||||||||
Segment earnings (loss) | $ | (195 | ) | 19,407 | 877 | 4,388 | 24,477 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2016 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 16,307 | 64,225 | 12,016 | — | 92,548 | |||||||||
Net investment income | 15,717 | 17,440 | 164,195 | 11,399 | 208,751 | ||||||||||
Other revenues | 30 | 40 | 6 | 9,498 | 9,574 | ||||||||||
Total revenues | 32,054 | 81,705 | 176,217 | 20,897 | 310,873 | ||||||||||
Life and other policy benefits | 8,291 | 9,751 | 13,099 | — | 31,141 | ||||||||||
Amortization of deferred acquisition costs | 5,320 | 4,424 | 54,442 | — | 64,186 | ||||||||||
Universal life and annuity contract interest | 11,060 | 8,356 | 92,400 | — | 111,816 | ||||||||||
Other operating expenses | 6,898 | 11,176 | 15,517 | 9,119 | 42,710 | ||||||||||
Federal income taxes (benefit) | 166 | 16,386 | 259 | 4,020 | 20,831 | ||||||||||
Total expenses | 31,735 | 50,093 | 175,717 | 13,139 | 270,684 | ||||||||||
Segment earnings (loss) | $ | 319 | 31,612 | 500 | 7,758 | 40,189 | |||||||||
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 70,561 | 254,785 | 657,108 | — | 982,454 | |||||||||
Total segment assets | 811,768 | 1,247,941 | 9,000,323 | 264,269 | 11,324,301 | ||||||||||
Future policy benefits | 702,621 | 954,684 | 7,964,226 | — | 9,621,531 | ||||||||||
Other policyholder liabilities | 11,846 | 16,398 | 115,537 | — | 143,781 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 7,937 | 29,364 | 6,206 | — | 43,507 | |||||||||
Net investment income | 8,005 | 8,785 | 79,509 | 5,960 | 102,259 | ||||||||||
Other revenues | 4 | (25 | ) | 4 | 5,211 | 5,194 | |||||||||
Total revenues | 15,946 | 38,124 | 85,719 | 11,171 | 150,960 | ||||||||||
Life and other policy benefits | 3,882 | 5,587 | 6,651 | — | 16,120 | ||||||||||
Amortization of deferred acquisition costs | 1,698 | 5,163 | 21,209 | — | 28,070 | ||||||||||
Universal life and annuity contract interest | 5,460 | 6,927 | 37,044 | — | 49,431 | ||||||||||
Other operating expenses | 3,442 | 5,212 | 5,434 | 4,714 | 18,802 | ||||||||||
Federal income taxes (benefit) | 467 | 4,932 | 4,961 | 2,086 | 12,446 | ||||||||||
Total expenses | 14,949 | 27,821 | 75,299 | 6,800 | 124,869 | ||||||||||
Segment earnings (loss) | $ | 997 | 10,303 | 10,420 | 4,371 | 26,091 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 14,424 | 59,697 | 11,046 | — | 85,167 | |||||||||
Net investment income | 15,170 | 17,399 | 158,745 | 10,868 | 202,182 | ||||||||||
Other revenues | 20 | 61 | 19 | 10,423 | 10,523 | ||||||||||
Total revenues | 29,614 | 77,157 | 169,810 | 21,291 | 297,872 | ||||||||||
Life and other policy benefits | 8,995 | 11,792 | 14,599 | — | 35,386 | ||||||||||
Amortization of deferred acquisition costs | 4,879 | 4,513 | 46,330 | — | 55,722 | ||||||||||
Universal life and annuity contract interest | 10,399 | 14,057 | 74,014 | — | 98,470 | ||||||||||
Other operating expenses | 7,157 | 11,134 | 11,612 | 9,409 | 39,312 | ||||||||||
Federal income taxes (benefit) | (584 | ) | 11,477 | 7,484 | 3,824 | 22,201 | |||||||||
Total expenses | 30,846 | 52,973 | 154,039 | 13,233 | 251,091 | ||||||||||
Segment earnings (loss) | $ | (1,232 | ) | 24,184 | 15,771 | 8,058 | 46,781 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 46,365 | 43,507 | 92,548 | 85,167 | |||||||
Net investment income | 113,251 | 102,259 | 208,751 | 202,182 | ||||||||
Other revenues | 4,696 | 5,194 | 9,574 | 10,523 | ||||||||
Realized gains (losses) on investments | 2,782 | 4,258 | 5,163 | 5,236 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 167,094 | 155,218 | 316,036 | 303,108 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||