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, 2017 (Unaudited) and December 31, 2016 | |
For the Three Months Ended June 30, 2017 and 2016 (Unaudited) | |
For the Six Months Ended June 30, 2017 and 2016 (Unaudited) | |
For the Three Months Ended June 30, 2017 and 2016 (Unaudited) | |
For the Six Months Ended June 30, 2017 and 2016 (Unaudited) | |
For the Six Months Ended June 30, 2017 and 2016 (Unaudited) | |
For the Six Months Ended June 30, 2017 and 2016 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2017 | December 31, 2016 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,466,140 and $7,337,611) | $ | 7,230,187 | 7,159,259 | |||
Securities available for sale, at fair value (cost: $2,943,326 and $2,991,042) | 3,042,758 | 3,060,363 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 183,698 | 174,534 | ||||
Policy loans | 57,899 | 58,699 | ||||
Derivatives, index options | 149,341 | 120,644 | ||||
Other long-term investments | 53,864 | 53,954 | ||||
Total investments | 10,717,747 | 10,627,453 | ||||
Cash and cash equivalents | 109,068 | 51,247 | ||||
Deferred policy acquisition costs | 808,296 | 835,194 | ||||
Deferred sales inducements | 140,596 | 147,111 | ||||
Accrued investment income | 98,034 | 99,245 | ||||
Federal income tax receivable | 14,393 | — | ||||
Other assets | 133,128 | 134,731 | ||||
Total assets | $ | 12,021,262 | 11,894,981 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2017 | December 31, 2016 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,781,357 | 9,722,313 | |||
Traditional life reserves | 135,618 | 136,782 | ||||
Other policyholder liabilities | 146,252 | 143,391 | ||||
Deferred Federal income tax liability | 57,841 | 64,990 | ||||
Federal income tax payable | — | 789 | ||||
Other liabilities | 119,814 | 104,888 | ||||
Total liabilities | 10,240,882 | 10,173,153 | ||||
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 2017 and 2016 | 34 | 34 | ||||
Class B - $.01 par value; 200,000 shares authorized, issued, and outstanding in 2017 and 2016 | 2 | 2 | ||||
Additional paid-in capital | 41,716 | 41,716 | ||||
Accumulated other comprehensive income | 20,083 | 10,552 | ||||
Retained earnings | 1,718,545 | 1,669,524 | ||||
Total stockholders’ equity | 1,780,380 | 1,721,828 | ||||
Total liabilities and stockholders' equity | $ | 12,021,262 | 11,894,981 |
2017 | 2016 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 40,697 | 41,448 | ||||
Traditional life premiums | 4,133 | 4,917 | |||||
Net investment income | 142,612 | 113,251 | |||||
Other revenues | 4,537 | 4,696 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 23 | 27 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (23 | ) | (27 | ) | |||
Net OTTI losses recognized in earnings | — | — | |||||
Other net investment gains (losses) | 6,247 | 2,782 | |||||
Total net realized investment gains (losses) | 6,247 | 2,782 | |||||
Total revenues | 198,226 | 167,094 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 17,854 | 15,540 | |||||
Amortization of deferred policy acquisition costs | 33,058 | 28,966 | |||||
Universal life and annuity contract interest | 82,170 | 62,799 | |||||
Other operating expenses | 26,343 | 19,403 | |||||
Total benefits and expenses | 159,425 | 126,708 | |||||
Earnings before Federal income taxes | 38,801 | 40,386 | |||||
Federal income taxes | 13,318 | 14,100 | |||||
Net earnings | $ | 25,483 | 26,286 | ||||
Basic earnings per share: | |||||||
Class A | $ | 7.21 | $ | 7.43 | |||
Class B | $ | 3.60 | $ | 3.72 | |||
Diluted earnings per share: | |||||||
Class A | $ | 7.21 | $ | 7.43 | |||
Class B | $ | 3.60 | $ | 3.72 |
2017 | 2016 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 82,061 | 83,458 | ||||
Traditional life premiums | 8,354 | 9,090 | |||||
Net investment income | 314,354 | 208,751 | |||||
Other revenues | 9,042 | 9,574 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 43 | 53 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (43 | ) | (53 | ) | |||
Net OTTI losses recognized in earnings | — | — | |||||
Other net investment gains (losses) | 8,832 | 5,163 | |||||
Total net realized investment gains (losses) | 8,832 | 5,163 | |||||
Total revenues | 422,643 | 316,036 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 37,611 | 31,141 | |||||
Amortization of deferred policy acquisition costs | 67,270 | 64,186 | |||||
Universal life and annuity contract interest | 192,063 | 111,816 | |||||
Other operating expenses | 51,435 | 42,710 | |||||
Total benefits and expenses | 348,379 | 249,853 | |||||
Earnings before Federal income taxes | 74,264 | 66,183 | |||||
Federal income taxes | 25,243 | 22,638 | |||||
Net earnings | $ | 49,021 | 43,545 | ||||
Basic earnings per share: | |||||||
Class A | $ | 13.86 | $ | 12.31 | |||
Class B | $ | 6.93 | $ | 6.16 | |||
Diluted earnings per share: | |||||||
Class A | $ | 13.86 | $ | 12.31 | |||
Class B | $ | 6.93 | $ | 6.16 | |||
2017 | 2016 | |||||
Net earnings | $ | 25,483 | 26,286 | |||
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 | 7,788 | 21,457 | ||||
Net unrealized liquidity gains (losses) | (30 | ) | 9 | |||
Reclassification adjustment for net amounts included in net earnings | (1,068 | ) | (113 | ) | ||
Net unrealized gains (losses) on securities | 6,690 | 21,353 | ||||
Foreign currency translation adjustments | (86 | ) | (203 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (933 | ) | (284 | ) | ||
Other comprehensive income (loss) | 5,671 | 20,866 | ||||
Comprehensive income (loss) | $ | 31,154 | 47,152 |
2017 | 2016 | |||||
Net earnings | $ | 49,021 | 43,545 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 13,267 | 46,103 | ||||
Net unrealized liquidity gains (losses) | 13 | 18 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,758 | ) | (573 | ) | ||
Net unrealized gains (losses) on securities | 11,522 | 45,548 | ||||
Foreign currency translation adjustments | (171 | ) | (103 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (1,820 | ) | (567 | ) | ||
Other comprehensive income (loss) | 9,531 | 44,878 | ||||
Comprehensive income (loss) | $ | 58,552 | 88,423 | |||
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2017 and 2016 (Unaudited) (In thousands) | |||||||
2017 | 2016 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 36 | 36 | ||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 36 | 36 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 41,716 | 41,716 | |||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 41,716 | 41,716 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 22,813 | 12,347 | |||||
Change in unrealized gains (losses) during period, net of tax | 11,509 | 45,530 | |||||
Balance at end of period | 34,322 | 57,877 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (203 | ) | (240 | ) | |||
Amortization | 28 | 34 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (15 | ) | (16 | ) | |||
Balance at end of period | (190 | ) | (222 | ) | |||
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, 2017 and 2016 (Unaudited) (In thousands) | |||||||
2017 | 2016 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,661 | 2,825 | |||||
Change in translation adjustments during period | (171 | ) | (103 | ) | |||
Balance at end of period | 2,490 | 2,722 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (14,718 | ) | (14,602 | ) | |||
Amortization of net prior service cost and net loss, net of tax | (1,820 | ) | (567 | ) | |||
Balance at end of period | (16,538 | ) | (15,169 | ) | |||
Accumulated other comprehensive income at end of period | 20,083 | 45,207 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,669,524 | 1,569,905 | |||||
Net earnings | 49,021 | 43,545 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,718,545 | 1,613,450 | |||||
Total stockholders' equity | $ | 1,780,380 | $ | 1,700,409 |
NATIONAL WESTERN LIFE GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2017 and 2016 (Unaudited) (In thousands) | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 49,021 | 43,545 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 192,063 | 111,816 | |||||
Surrender charges and other policy revenues | (23,568 | ) | (11,782 | ) | |||
Realized (gains) losses on investments | (8,832 | ) | (5,163 | ) | |||
Accretion/amortization of discounts and premiums, investments | 221 | 4 | |||||
Depreciation and amortization | 4,962 | 4,012 | |||||
(Increase) decrease in value of derivatives | (93,421 | ) | 10,806 | ||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | 20,987 | 11,677 | |||||
(Increase) decrease in accrued investment income | 1,211 | 656 | |||||
(Increase) decrease in other assets | (3,307 | ) | (3,373 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 6,748 | (533 | ) | ||||
Increase (decrease) in other policyholder liabilities | 2,862 | (5,960 | ) | ||||
Increase (decrease) in Federal income taxes liability | (15,182 | ) | 22,450 | ||||
Increase (decrease) in deferred Federal income tax | (12,281 | ) | 9,914 | ||||
Increase (decrease) in other liabilities | 9,264 | (2,605 | ) | ||||
Net cash provided by operating activities | 130,748 | 185,464 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | — | |||||
Securities available for sale | 22,184 | 7,966 | |||||
Other investments | — | 3,712 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 233,272 | 188,498 | |||||
Securities available for sale | 144,929 | 98,929 | |||||
Derivatives, index options | 100,516 | 2,090 | |||||
Property and equipment | 2,731 | — | |||||
Purchases of: | |||||||
Securities held to maturity | (296,706 | ) | (185,189 | ) | |||
Securities available for sale | (116,927 | ) | (122,013 | ) | |||
Derivatives, index options | (36,587 | ) | (38,376 | ) | |||
Other investments | (188 | ) | (23,231 | ) | |||
Property and equipment | (233 | ) | — | ||||
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, 2017 and 2016 (Unaudited) (In thousands) | |||||||
2017 | 2016 | ||||||
Principal payments on mortgage loans | 22,685 | 16,254 | |||||
Cost of mortgage loans acquired | (31,779 | ) | (38,550 | ) | |||
Decrease (increase) in policy loans | 800 | 1,370 | |||||
Net cash provided by/(used in) investing activities | 44,697 | (157,795 | ) | ||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 360,928 | 429,101 | |||||
Return of account balances on universal life and annuity contracts | (478,290 | ) | (468,639 | ) | |||
Net cash provided by (used in) financing activities | (117,362 | ) | (39,538 | ) | |||
Effect of foreign exchange | (262 | ) | (157 | ) | |||
Net increase (decrease) in cash and cash equivalents | 57,821 | (12,026 | ) | ||||
Cash and cash equivalents at beginning of period | 51,247 | 106,007 | |||||
Cash and cash equivalents at end of period | $ | 109,068 | $ | 93,981 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid (received) during the period for: | |||||||
Interest | $ | 19 | 23 | ||||
Income taxes | $ | 52,706 | (10,000 | ) | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (3,986 | ) | (5,366 | ) |
(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, | ||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 1,644 | 174 | 2,705 | 882 | ||||||||
Net OTTI losses recognized in earnings | — | — | — | — | |||||||||
Earnings before Federal income taxes | 1,644 | 174 | 2,705 | 882 | |||||||||
Federal income taxes | 576 | 61 | 947 | 309 | |||||||||
Net earnings | $ | 1,068 | 113 | 1,758 | 573 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2017 | 2016 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 25,483 | 26,286 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 25,483 | 26,286 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 24,762 | 721 | 25,543 | 743 | ||||||||
Net income | $ | 24,762 | 721 | 25,543 | 743 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,436 | 200 | ||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,436 | 200 | 3,436 | 200 | ||||||||
Basic Earnings Per Share | $ | 7.21 | 3.60 | 7.43 | 3.72 | |||||||
Diluted Earnings Per Share | $ | 7.21 | 3.60 | 7.43 | 3.72 |
Six Months Ended June 30, | ||||||||||||
2017 | 2016 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 49,021 | 43,545 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 49,021 | 43,545 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 47,635 | 1,386 | 42,313 | 1,232 | ||||||||
Net income | $ | 47,635 | 1,386 | 42,313 | 1,232 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,436 | 200 | ||||||||
Effect of dilutive stock options | — | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,436 | 200 | 3,436 | 200 | ||||||||
Basic Earnings Per Share | $ | 13.86 | 6.93 | 12.31 | 6.16 | |||||||
Diluted Earnings Per Share | $ | 13.86 | 6.93 | 12.31 | 6.16 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 27 | 27 | 54 | 53 | |||||||
Interest cost | 239 | 250 | 478 | 500 | ||||||||
Expected return on plan assets | (307 | ) | (304 | ) | (614 | ) | (608 | ) | ||||
Amortization of prior service cost | — | — | — | — | ||||||||
Amortization of net loss | 159 | 193 | 318 | 386 | ||||||||
Net periodic benefit cost | $ | 118 | 166 | 236 | 331 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 204 | 109 | 408 | 218 | |||||||
Interest cost | 347 | 264 | 694 | 529 | ||||||||
Amortization of prior service cost | 15 | 15 | 30 | 30 | ||||||||
Amortization of net loss | 819 | 501 | 1,637 | 1,002 | ||||||||
Net periodic benefit cost | $ | 1,385 | 889 | 2,769 | 1,779 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 39 | 30 | 69 | 60 | |||||||
Amortization of prior service cost | 26 | 26 | 52 | 52 | ||||||||
Amortization of net loss | 21 | — | 21 | — | ||||||||
Net periodic benefit cost | $ | 86 | 56 | 142 | 112 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
June 30, 2017 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 93,029 | 231,433 | 624,430 | — | 948,892 | |||||||||
Total segment assets | 1,034,170 | 1,221,136 | 9,252,875 | 307,990 | 11,816,171 | ||||||||||
Future policy benefits | 881,156 | 910,493 | 8,125,326 | — | 9,916,975 | ||||||||||
Other policyholder liabilities | 13,104 | 12,973 | 120,175 | — | 146,252 |
December 31, 2016 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 90,485 | 243,106 | 648,714 | — | 982,305 | |||||||||
Total segment assets | 971,990 | 1,232,648 | 9,193,980 | 298,481 | 11,697,099 | ||||||||||
Future policy benefits | 830,460 | 919,380 | 8,109,255 | — | 9,859,095 | ||||||||||
Other policyholder liabilities | 13,998 | 10,528 | 118,865 | — | 143,391 |
Three Months Ended June 30, 2017 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Premiums and contract revenues | $ | 9,066 | 29,710 | 6,054 | — | 44,830 | |||||||||
Net investment income | 15,023 | 14,251 | 105,474 | 7,864 | 142,612 | ||||||||||
Other revenues | 6 | 21 | 38 | 4,472 | 4,537 | ||||||||||
Total revenues | 24,095 | 43,982 | 111,566 | 12,336 | 191,979 | ||||||||||
Life and other policy benefits | 5,448 | 4,677 | 7,729 | — | 17,854 | ||||||||||
Amortization of deferred policy acquisition costs | 2,994 | 6,305 | 23,759 | — | 33,058 | ||||||||||
Universal life and annuity contract interest | 11,210 | 11,377 | 59,583 | — | 82,170 | ||||||||||
Other operating expenses | 5,157 | 7,207 | 9,814 | 4,165 | 26,343 | ||||||||||
Federal income taxes (benefit) | (242 | ) | 4,928 | 3,656 | 2,790 | 11,132 | |||||||||
Total expenses | 24,567 | 34,494 | 104,541 | 6,955 | 170,557 | ||||||||||
Segment earnings (loss) | $ | (472 | ) | 9,488 | 7,025 | 5,381 | 21,422 |
Six Months Ended June 30, 2017 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Premiums and contract revenues | $ | 17,915 | 61,210 | 11,290 | — | 90,415 | |||||||||
Net investment income | 34,613 | 32,870 | 231,908 | 14,963 | 314,354 | ||||||||||
Other revenues | 19 | 47 | 64 | 8,912 | 9,042 | ||||||||||
Total revenues | 52,547 | 94,127 | 243,262 | 23,875 | 413,811 | ||||||||||
Life and other policy benefits | 10,367 | 10,962 | 16,282 | — | 37,611 | ||||||||||
Amortization of deferred acquisition costs | 5,783 | 13,711 | 47,776 | — | 67,270 | ||||||||||
Universal life and annuity contract interest | 27,457 | 27,759 | 136,847 | — | 192,063 | ||||||||||
Other operating expenses | 9,889 | 13,185 | 19,874 | 8,487 | 51,435 | ||||||||||
Federal income taxes (benefit) | (321 | ) | 9,652 | 7,612 | 5,209 | 22,152 | |||||||||
Total expenses | 53,175 | 75,269 | 228,391 | 13,696 | 370,531 | ||||||||||
Segment earnings (loss) | $ | (628 | ) | 18,858 | 14,871 | 10,179 | 43,280 |
Three Months Ended June 30, 2016 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
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 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 |
Six Months Ended June 30, 2016 | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
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 | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 44,830 | 46,365 | 90,415 | 92,548 | |||||||
Net investment income | 142,612 | 113,251 | 314,354 | 208,751 | ||||||||
Other revenues | 4,537 | 4,696 | 9,042 | 9,574 | ||||||||
Realized gains (losses) on investments | 6,247 | 2,782 | 8,832 | 5,163 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 198,226 | 167,094 | 422,643 | 316,036 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 11,132 | 13,127 | 22,152 | 20,831 | |||||||
Taxes on realized gains (losses) on investments | 2,186 | 973 | 3,091 | 1,807 | ||||||||
Total condensed consolidated Federal income taxes | $ | 13,318 | 14,100 | 25,243 | 22,638 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||
(In thousands) | ||||||||||||
Net Earnings: | ||||||||||||
Total segment earnings | $ | 21,422 | 24,477 | 43,280 | 40,189 | |||||||
Realized gains (losses) on investments, net of taxes | 4,061 | 1,809 | 5,741 | 3,356 | ||||||||