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 | |
September 30, 2016 (Unaudited) and December 31, 2015 | |
For the Three Months Ended September 30, 2016 and 2015 (Unaudited) | |
For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) | |
For the Three Months Ended September 30, 2016 and 2015 (Unaudited) | |
For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) | |
For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) | |
For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | September 30, 2016 | December 31, 2015 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,542,335 and $7,335,436) | $ | 7,106,373 | 7,173,967 | |||
Securities available for sale, at fair value (cost: $2,934,609 and $2,847,414) | 3,106,794 | 2,879,583 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 146,913 | 108,311 | ||||
Policy loans | 59,218 | 61,957 | ||||
Derivatives, index options | 90,097 | 38,409 | ||||
Other long-term investments | 51,980 | 26,787 | ||||
Short-term investments | 14,972 | — | ||||
Total investments | 10,576,347 | 10,289,014 | ||||
Cash and cash equivalents | 177,288 | 106,007 | ||||
Deferred policy acquisition costs | 795,210 | 853,451 | ||||
Deferred sales inducements | 138,793 | 159,166 | ||||
Accrued investment income | 101,237 | 99,619 | ||||
Federal income tax receivable | — | 12,512 | ||||
Other assets | 91,729 | 92,807 | ||||
Total assets | $ | 11,880,604 | 11,612,576 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | September 30, 2016 | December 31, 2015 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,661,675 | 9,561,358 | |||
Traditional life reserves | 136,423 | 138,000 | ||||
Other policyholder liabilities | 150,087 | 155,261 | ||||
Deferred Federal income tax liability | 84,717 | 49,333 | ||||
Federal income tax payable | 9,149 | — | ||||
Other liabilities | 103,235 | 96,638 | ||||
Total liabilities | 10,145,286 | 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 | 46,381 | 329 | ||||
Retained earnings | 1,647,185 | 1,569,905 | ||||
Total stockholders’ equity | 1,735,318 | 1,611,986 | ||||
Total liabilities and stockholders' equity | $ | 11,880,604 | 11,612,576 |
2016 | 2015 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 40,333 | 39,175 | ||||
Traditional life premiums | 4,631 | 4,840 | |||||
Net investment income | 126,981 | 56,209 | |||||
Other revenues | 4,476 | 5,067 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 27 | 284 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (27 | ) | (284 | ) | |||
Net OTTI losses recognized in earnings | — | — | |||||
Other net investment gains (losses) | 5,426 | 813 | |||||
Total net realized investment gains (losses) | 5,426 | 813 | |||||
Total revenues | 181,847 | 106,104 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 17,430 | 14,181 | |||||
Amortization of deferred policy acquisition costs | 24,395 | 32,058 | |||||
Universal life and annuity contract interest | 67,776 | 16,259 | |||||
Other operating expenses | 23,595 | 18,482 | |||||
Total benefits and expenses | 133,196 | 80,980 | |||||
Earnings before Federal income taxes | 48,651 | 25,124 | |||||
Federal income taxes | 14,915 | 8,903 | |||||
Net earnings | $ | 33,736 | 16,221 | ||||
Basic earnings per share: | |||||||
Class A | $ | 9.54 | $ | 4.59 | |||
Class B | $ | 4.77 | $ | 2.29 | |||
Diluted earnings per share: | |||||||
Class A | $ | 9.54 | $ | 4.59 | |||
Class B | $ | 4.77 | $ | 2.29 |
2016 | 2015 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 123,791 | 114,833 | ||||
Traditional life premiums | 13,721 | 14,349 | |||||
Net investment income | 335,732 | 258,391 | |||||
Other revenues | 14,050 | 15,590 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 80 | 442 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (80 | ) | (549 | ) | |||
Net OTTI losses recognized in earnings | — | (107 | ) | ||||
Other net investment gains (losses) | 10,589 | 6,156 | |||||
Total net realized investment gains (losses) | 10,589 | 6,049 | |||||
Total revenues | 497,883 | 409,212 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 48,571 | 49,567 | |||||
Amortization of deferred policy acquisition costs | 88,581 | 87,780 | |||||
Universal life and annuity contract interest | 179,592 | 114,729 | |||||
Other operating expenses | 66,306 | 57,794 | |||||
Total benefits and expenses | 383,050 | 309,870 | |||||
Earnings before Federal income taxes | 114,833 | 99,342 | |||||
Federal income taxes | 37,553 | 32,937 | |||||
Net earnings | $ | 77,280 | 66,405 | ||||
Basic earnings per share: | |||||||
Class A | $ | 21.85 | $ | 18.78 | |||
Class B | $ | 10.93 | $ | 9.39 | |||
Diluted earnings per share: | |||||||
Class A | $ | 21.85 | $ | 18.77 | |||
Class B | $ | 10.93 | $ | 9.39 | |||
2016 | 2015 | |||||
Net earnings | $ | 33,736 | 16,221 | |||
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 | 2,824 | (7,334 | ) | |||
Net unrealized liquidity gains (losses) | 9 | 95 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,398 | ) | (96 | ) | ||
Net unrealized gains (losses) on securities | 1,435 | (7,335 | ) | |||
Foreign currency translation adjustments | 22 | 54 | ||||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (283 | ) | (303 | ) | ||
Other comprehensive income (loss) | 1,174 | (7,584 | ) | |||
Comprehensive income (loss) | $ | 34,910 | 8,637 |
2016 | 2015 | |||||
Net earnings | $ | 77,280 | 66,405 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 48,927 | (19,164 | ) | |||
Net unrealized liquidity gains (losses) | 27 | 188 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,971 | ) | (2,116 | ) | ||
Net unrealized gains (losses) on securities | 46,983 | (21,092 | ) | |||
Foreign currency translation adjustments | (81 | ) | 42 | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (850 | ) | (910 | ) | ||
Other comprehensive income (loss) | 46,052 | (21,960 | ) | |||
Comprehensive income (loss) | $ | 123,332 | 44,445 | |||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Nine Months Ended September 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 | 46,956 | (21,280 | ) | ||||
Balance at end of period | 59,303 | 32,949 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (240 | ) | (1,262 | ) | |||
Amortization | 52 | 357 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (25 | ) | (169 | ) | |||
Balance at end of period | (213 | ) | (1,074 | ) | |||
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 Nine Months Ended September 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 | (81 | ) | 42 | ||||
Balance at end of period | 2,744 | 2,727 | |||||
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 | (850 | ) | (910 | ) | |||
Balance at end of period | (15,452 | ) | (14,775 | ) | |||
Accumulated other comprehensive income at end of period | 46,381 | 19,826 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,569,905 | 1,472,782 | |||||
Net earnings | 77,280 | 66,405 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,647,185 | 1,539,187 | |||||
Total stockholders' equity | $ | 1,735,318 | $ | 1,600,765 |
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 77,280 | 66,405 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 179,592 | 114,729 | |||||
Surrender charges and other policy revenues | (34,955 | ) | (13,302 | ) | |||
Realized (gains) losses on investments | (10,589 | ) | (6,049 | ) | |||
Accretion/amortization of discounts and premiums, investments | 51 | 9 | |||||
Depreciation and amortization | 5,823 | 2,317 | |||||
(Increase) decrease in value of derivatives | (8,307 | ) | 69,884 | ||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | 10,799 | (632 | ) | ||||
(Increase) decrease in accrued investment income | (1,618 | ) | (4,592 | ) | |||
(Increase) decrease in other assets | (3,683 | ) | (6,578 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 3,408 | 6,887 | |||||
Increase (decrease) in other policyholder liabilities | (5,175 | ) | 7,382 | ||||
Increase (decrease) in Federal income taxes liability | 21,661 | (22,703 | ) | ||||
Increase (decrease) in deferred Federal income tax | 10,587 | 31,047 | |||||
Increase (decrease) in other liabilities | 1,352 | 2,452 | |||||
Net cash provided by operating activities | 246,226 | 247,256 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | — | |||||
Securities available for sale | 16,087 | 14,011 | |||||
Other investments | 3,947 | 2,182 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 304,190 | 343,494 | |||||
Securities available for sale | 134,208 | 219,676 | |||||
Derivatives, index options | 13,273 | 83,835 | |||||
Purchases of: | |||||||
Securities held to maturity | (231,804 | ) | (684,725 | ) | |||
Securities available for sale | (229,932 | ) | (423,672 | ) | |||
Derivatives, index options | (57,224 | ) | (66,395 | ) | |||
Other investments | (27,525 | ) | (1,340 | ) | |||
Net change in short-term investments | (14,972 | ) | — | ||||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2016 and 2015 (Unaudited) (In thousands) | |||||||
2016 | 2015 | ||||||
Principal payments on mortgage loans | 17,295 | 66,830 | |||||
Cost of mortgage loans acquired | (55,796 | ) | (5,040 | ) | |||
Decrease (increase) in policy loans | 2,739 | 2,034 | |||||
Net cash used in investing activities | (125,514 | ) | (449,110 | ) | |||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 626,083 | 679,128 | |||||
Return of account balances on universal life and annuity contracts | (675,389 | ) | (668,037 | ) | |||
Net cash provided by (used in) financing activities | (49,306 | ) | 11,091 | ||||
Effect of foreign exchange | (125 | ) | 42 | ||||
Net increase (decrease) in cash and cash equivalents | 71,281 | (190,721 | ) | ||||
Cash and cash equivalents at beginning of period | 106,007 | 277,078 | |||||
Cash and cash equivalents at end of period | $ | 177,288 | $ | 86,357 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid (received) during the period for: | |||||||
Interest | $ | 33 | 30 | ||||
Income taxes | $ | 5,032 | 24,127 | ||||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (7,146 | ) | (9,171 | ) |
(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, | ||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 2,151 | 147 | 3,033 | 3,362 | ||||||||
Net OTTI losses recognized in earnings | — | — | — | (107 | ) | ||||||||
Earnings before Federal income taxes | 2,151 | 147 | 3,033 | 3,255 | |||||||||
Federal income taxes | 753 | 51 | 1,062 | 1,139 | |||||||||
Net earnings | $ | 1,398 | 96 | 1,971 | 2,116 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended September 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 | $ | 33,736 | 16,221 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 33,736 | 16,221 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 32,782 | 954 | 15,763 | 458 | ||||||||
Net income | $ | 32,782 | 954 | 15,763 | 458 | |||||||
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 | $ | 9.54 | 4.77 | 4.59 | 2.29 | |||||||
Diluted Earnings Per Share | $ | 9.54 | 4.77 | 4.59 | 2.29 |
Nine Months Ended September 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 | $ | 77,280 | 66,405 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 77,280 | 66,405 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 75,095 | 2,185 | 64,527 | 1,878 | ||||||||
Net income | $ | 75,095 | 2,185 | 64,527 | 1,878 | |||||||
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 | $ | 21.85 | 10.93 | 18.78 | 9.39 | |||||||
Diluted Earnings Per Share | $ | 21.85 | 10.93 | 18.77 | 9.39 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 26 | 51 | 79 | 153 | |||||||
Interest cost | 250 | 246 | 750 | 738 | ||||||||
Expected return on plan assets | (304 | ) | (330 | ) | (912 | ) | (991 | ) | ||||
Amortization of prior service cost | — | 1 | — | 3 | ||||||||
Amortization of net loss | 193 | 196 | 579 | 588 | ||||||||
Net periodic benefit cost | $ | 165 | 164 | 496 | 491 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 109 | 64 | 327 | 192 | |||||||
Interest cost | 265 | 219 | 794 | 657 | ||||||||
Amortization of prior service cost | 15 | 14 | 45 | 44 | ||||||||
Amortization of net loss | 501 | 379 | 1,503 | 1,136 | ||||||||
Net periodic benefit cost | $ | 890 | 676 | 2,669 | 2,029 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 30 | 33 | 90 | 98 | |||||||
Amortization of prior service cost | 26 | 25 | 78 | 77 | ||||||||
Amortization of net loss | — | 15 | — | 45 | ||||||||
Net periodic benefit cost | $ | 56 | 73 | 168 | 220 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2016 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 85,547 | 239,685 | 608,771 | — | 934,003 | |||||||||
Total segment assets | 961,205 | 1,248,425 | 9,232,802 | 293,963 | 11,736,395 | ||||||||||
Future policy benefits | 809,493 | 923,235 | 8,065,370 | — | 9,798,098 | ||||||||||
Other policyholder liabilities | 18,058 | 14,103 | 117,926 | — | 150,087 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2016 | |||||||||||||||
Condensed Consolidated Statement of Earnings: | |||||||||||||||
Premiums and contract revenues | $ | 8,507 | 31,066 | 5,391 | — | 44,964 | |||||||||
Net investment income | 12,294 | 12,763 | 97,384 | 4,540 | 126,981 | ||||||||||
Other revenues | 7 | 10 | 139 | 4,320 | 4,476 | ||||||||||
Total revenues | 20,808 | 43,839 | 102,914 | 8,860 | 176,421 | ||||||||||
Life and other policy benefits | 5,338 | 5,038 | 7,054 | — | 17,430 | ||||||||||
Amortization of deferred policy acquisition costs | (4,331 | ) | 7,296 | 21,430 | — | 24,395 | |||||||||
Universal life and annuity contract interest | 9,795 | 11,287 | 46,694 | — | 67,776 | ||||||||||
Other operating expenses | 4,847 | 6,691 | 7,526 | 4,531 | 23,595 | ||||||||||
Federal income taxes (benefit) | 1,667 | 3,591 | 6,549 | 1,209 | 13,016 | ||||||||||
Total expenses | 17,316 | 33,903 | 89,253 | 5,740 | 146,212 | ||||||||||
Segment earnings (loss) | $ | 3,492 | 9,936 | 13,661 | 3,120 | 30,209 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine months ended | |||||||||||||||
September 30, 2016 | |||||||||||||||
Condensed Consolidated Statement of Earnings: | |||||||||||||||
Premiums and contract revenues | $ | 24,814 | 95,291 | 17,407 | — | 137,512 | |||||||||
Net investment income | 28,011 | 30,203 | 261,579 | 15,939 | 335,732 | ||||||||||
Other revenues | 37 | 50 | 145 | 13,818 | 14,050 | ||||||||||
Total revenues | 52,862 | 125,544 | 279,131 | 29,757 | 487,294 | ||||||||||
Life and other policy benefits | 13,629 | 14,789 | 20,153 | — | 48,571 | ||||||||||
Amortization of deferred acquisition costs | 989 | 11,720 | 75,872 | — | 88,581 | ||||||||||
Universal life and annuity contract interest | 20,855 | 19,643 | 139,094 | — | 179,592 | ||||||||||
Other operating expenses | 11,745 | 17,867 | 23,044 | 13,650 | 66,306 | ||||||||||
Federal income taxes (benefit) | 1,833 | 19,977 | 6,808 | 5,229 | 33,847 | ||||||||||
Total expenses | 49,051 | 83,996 | 264,971 | 18,879 | 416,897 | ||||||||||
Segment earnings (loss) | $ | 3,811 | 41,548 | 14,160 | 10,878 | 70,397 | |||||||||
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 Statement of Earnings: | |||||||||||||||
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 Statement of Earnings: | |||||||||||||||
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 | |||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 44,964 | 44,015 | 137,512 | 129,182 | |||||||
Net investment income | 126,981 | 56,209 | 335,732 | 258,391 | ||||||||
Other revenues | 4,476 | 5,067 | 14,050 | 15,590 | ||||||||
Realized gains (losses) on investments | 5,426 | 813 | 10,589 | 6,049 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 181,847 | 106,104 | 497,883 | 409,212 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: |