UNITED
STATES
|
|
SECURITIES
AND EXCHANGE COMMISSION
|
|
Washington,
D.C. 20549
|
|
FORM
10-Q
|
|
þ QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
|
|
THE
SECURITIES EXCHANGE ACT OF 1934
|
|
For
the Quarterly Period Ended September 30, 2007
|
|
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: 2-17039
|
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY
|
|
(Exact
name of Registrant as specified in its charter)
|
|
COLORADO
|
84-0467208
|
(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)
|
Indicate
by check mark whether the Registrant (1) has filed all reports
required to
be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934
during the preceding 12 months (or for such shorter period that
the
Registrant was required to file such reports), and (2) has been
subject to
such filing requirements for the past 90
days: Yes þ No o
|
|
Indicate
by check mark whether the registrant is a large accelerated filer,
an
accelerated filer, or a non-accelerated filer. See definition
of "accelerated filer and large accelerated file" in Rule 12b-2
of the
Exchange Act.
|
|
Large
accelerated filer o Accelerated
filer þ Non-accelerated
filer o
|
|
Indicate
by check mark whether the registrant is a shell company (as defined
in
Rule 12b-2 of the Exchange Act). Yes o No þ
|
|
As
of November 7, 2007, the number of shares of Registrant's common
stock
outstanding was: Class A – 3,422,324 and Class B -
200,000.
|
Page
|
|
3
|
|
3
|
|
3
|
|
September
30, 2007 (Unaudited) and December 31, 2006
|
|
5
|
|
For
the Three Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
6
|
|
For
the Nine Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
7
|
|
For
the Three Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
8
|
|
For
the Nine Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
9
|
|
For
the Nine Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
10
|
|
For
the Nine Months Ended September 30, 2007 and 2006
(Unaudited)
|
|
12
|
|
24
|
|
Financial
Condition and Results of Operations
|
|
48
|
|
48
|
|
48
|
|
48
|
|
48
|
|
49
|
|
49
|
|
50
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
(In
thousands)
|
||||||||
(Unaudited)
|
||||||||
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
ASSETS
|
||||||||
Investments:
|
||||||||
Securities
held to maturity, at amortized cost
|
$ |
3,750,933
|
3,603,434
|
|||||
Securities
available for sale, at fair value
|
1,893,854
|
1,902,568
|
||||||
Mortgage
loans, net of allowances for possible
|
||||||||
losses
($3,566 and $2,100)
|
98,852
|
103,325
|
||||||
Policy
loans
|
84,377
|
86,856
|
||||||
Derivatives
|
51,797
|
72,012
|
||||||
Other
long-term investments
|
16,965
|
22,822
|
||||||
Total
investments
|
5,896,778
|
5,791,017
|
||||||
Cash
and short-term investments
|
41,036
|
49,901
|
||||||
Deferred
policy acquisition costs
|
653,893
|
643,964
|
||||||
Deferred
sales inducements
|
101,888
|
93,139
|
||||||
Accrued
investment income
|
63,469
|
64,393
|
||||||
Federal
income tax receivable
|
10,922
|
-
|
||||||
Other
assets
|
47,197
|
51,029
|
||||||
$ |
6,815,183
|
6,693,443
|
||||||
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In
thousands, except share amounts)
|
||||||||
(Unaudited)
|
||||||||
September
30,
|
December
31,
|
|||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
2007
|
2006
|
||||||
LIABILITIES:
|
||||||||
Future
policy benefits:
|
||||||||
Traditional
life and annuity contracts
|
$ |
138,720
|
138,382
|
|||||
Universal
life and annuity contracts
|
5,454,962
|
5,395,075
|
||||||
Other
policyholder liabilities
|
117,342
|
112,449
|
||||||
Federal
income tax liability:
|
||||||||
Current
|
-
|
1,666
|
||||||
Deferred
|
46,366
|
32,207
|
||||||
Other
liabilities
|
77,727
|
80,680
|
||||||
Total
liabilities
|
5,835,117
|
5,760,459
|
||||||
COMMITMENTS
AND CONTINGENCIES (Note 5 and 9)
|
||||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Common
stock:
|
||||||||
Class
A - $1 par value; 7,500,000 shares authorized; 3,422,324
and
|
||||||||
3,420,824
issued and outstanding in 2007 and 2006
|
3,422
|
3,421
|
||||||
Class
B - $1 par value; 200,000 shares authorized, issued,
|
||||||||
and
outstanding in 2007 and 2006
|
200
|
200
|
||||||
Additional
paid-in capital
|
36,236
|
36,110
|
||||||
Accumulated
other comprehensive loss
|
(9,458 | ) | (3,731 | ) | ||||
Retained
earnings
|
949,666
|
896,984
|
||||||
Total
stockholders' equity
|
980,066
|
932,984
|
||||||
$ |
6,815,183
|
6,693,443
|
||||||
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
For
the Three Months Ended September 30, 2007 and
2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands, except per share amounts)
|
||||||||
2007
|
2006
|
|||||||
Premiums
and other revenue:
|
||||||||
Traditional
life and annuity premiums
|
$ |
4,755
|
3,654
|
|||||
Universal
life and annuity contract revenues
|
30,025
|
26,923
|
||||||
Net
investment income
|
75,075
|
96,049
|
||||||
Other
income
|
3,786
|
3,064
|
||||||
Realized
gains (losses) on investments
|
(1,505 | ) |
190
|
|||||
Total
premiums and other revenue
|
112,136
|
129,880
|
||||||
Benefits
and expenses:
|
||||||||
Life
and other policy benefits
|
11,337
|
9,212
|
||||||
Amortization
of deferred acquisition costs
|
25,238
|
24,430
|
||||||
Universal
life and annuity contract interest
|
38,219
|
59,065
|
||||||
Other
operating expenses
|
12,871
|
12,513
|
||||||
Total
benefits and expenses
|
87,665
|
105,220
|
||||||
Earnings
before Federal income taxes
|
24,471
|
24,660
|
||||||
Provision
(benefit) for Federal income taxes:
|
||||||||
Current
|
(2,836 | ) |
8,214
|
|||||
Deferred
|
11,685
|
374
|
||||||
Total
Federal income taxes
|
8,849
|
8,588
|
||||||
Net
earnings
|
$ |
15,622
|
16,072
|
|||||
Basic
Earnings Per Share
|
$ |
4.31
|
4.44
|
|||||
Diluted
Earnings Per Share
|
$ |
4.28
|
4.40
|
|||||
See
accompanying notes to condensed consolidated financial
statements.
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands, except per share amounts)
|
||||||||
2007
|
2006
|
|||||||
Premiums
and other revenue:
|
||||||||
Traditional
life and annuity premiums
|
$ |
14,074
|
11,742
|
|||||
Universal
life and annuity contract revenues
|
87,474
|
79,477
|
||||||
Net
investment income
|
260,033
|
261,059
|
||||||
Other
income
|
10,461
|
11,271
|
||||||
Realized
gains on investments
|
2,901
|
3,229
|
||||||
Total
premiums and other revenue
|
374,943
|
366,778
|
||||||
Benefits
and expenses:
|
||||||||
Life
and other policy benefits
|
32,748
|
28,300
|
||||||
Amortization
of deferred acquisition costs
|
74,660
|
69,443
|
||||||
Universal
life and annuity contract interest
|
143,037
|
138,678
|
||||||
Other
operating expenses
|
43,354
|
51,611
|
||||||
Total
benefits and expenses
|
293,799
|
288,032
|
||||||
Earnings
before Federal income taxes
|
81,144
|
78,746
|
||||||
Provision
(benefit) for Federal income taxes:
|
||||||||
Current
|
6,551
|
28,987
|
||||||
Deferred
|
18,448
|
(2,585 | ) | |||||
Total
Federal income taxes
|
24,999
|
26,402
|
||||||
Net
earnings
|
$ |
56,145
|
52,344
|
|||||
Basic
Earnings Per Share
|
$ |
15.50
|
14.46
|
|||||
Diluted
Earnings Per Share
|
$ |
15.37
|
14.32
|
|||||
See
accompanying notes to condensed consolidated financial
statements.
|
For
the Three Months Ended September 30, 2007 and
2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2007
|
2006
|
|||||||
Net
earnings
|
$ |
15,622
|
16,072
|
|||||
Other
comprehensive income (loss), net of effects of
|
||||||||
deferred
policy acquisition costs and taxes:
|
||||||||
Net
unrealized gains on securities:
|
||||||||
Net
unrealized holding gains arising during period
|
4,860
|
15,866
|
||||||
Reclassification
adjustment for (gains) and losses included
|
||||||||
in
net earnings
|
16
|
(42 | ) | |||||
Amortization
of net unrealized gains
|
||||||||
related
to transferred securities
|
25
|
6
|
||||||
Net
unrealized gains on securities
|
4,901
|
15,830
|
||||||
Foreign
currency translation adjustments
|
47
|
(317 | ) | |||||
Benefit
plan adjustment
|
308
|
-
|
||||||
Other
comprehensive income
|
5,256
|
15,513
|
||||||
Comprehensive
income
|
$ |
20,878
|
31,585
|
|||||
See
accompanying notes to condensed consolidated financial
statements.
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2007
|
2006
|
|||||||
Net
earnings
|
$ |
56,145
|
52,344
|
|||||
Other
comprehensive income (loss), net of effects of
|
||||||||
deferred
policy acquisition costs and taxes:
|
||||||||
Net
unrealized losses on securities:
|
||||||||
Net
unrealized holding losses arising during period
|
(3,745 | ) | (4,394 | ) | ||||
Reclassification
adjustment for gains included in net earnings
|
(2,848 | ) | (1,740 | ) | ||||
Amortization
of net unrealized gains (losses)
|
||||||||
related
to transferred securities
|
79
|
(90 | ) | |||||
Net
unrealized losses on securities
|
(6,514 | ) | (6,224 | ) | ||||
Foreign
currency translation adjustments
|
(139 | ) | (152 | ) | ||||
Benefit
plan adjustment
|
926
|
-
|
||||||
Other
comprehensive loss
|
(5,727 | ) | (6,376 | ) | ||||
Comprehensive
income
|
$ |
50,418
|
45,968
|
|||||
See
accompanying notes to condensed consolidated financial
statements.
|
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2007
|
2006
|
|||||||
Common
stock:
|
||||||||
Balance
at beginning of year
|
$ |
3,621
|
3,613
|
|||||
Shares
exercised under stock option plan
|
1
|
8
|
||||||
Balance
at end of period
|
3,622
|
3,621
|
||||||
Additional
paid-in capital:
|
||||||||
Balance
at beginning of year
|
36,110
|
37,923
|
||||||
Shares
exercised under the stock option plan
|
126
|
510
|
||||||
Adjustment
for stock option liability classification
|
-
|
(1,211 | ) | |||||
Balance
at end of period
|
36,236
|
37,222
|
||||||
Accumulated
other comprehensive income:
|
||||||||
Unrealized
gains (losses) on securities:
|
||||||||
Balance
at beginning of year
|
3,148
|
10,401
|
||||||
Change
in unrealized losses during period
|
(6,514 | ) | (6,224 | ) | ||||
Balance
at end of period
|
(3,366 | ) |
4,177
|
|||||
Foreign
currency translation adjustments:
|
||||||||
Balance
at beginning of year
|
3,122
|
3,300
|
||||||
Change
in translation adjustments during period
|
(139 | ) | (152 | ) | ||||
Balance
at end of period
|
2,983
|
3,148
|
||||||
Benefit
plan liability adjustment:
|
||||||||
Balance
at beginning of year
|
(10,001 | ) | (3,137 | ) | ||||
Change
in benefit plan liability adjustment during period
|
926
|
-
|
||||||
Balance
at end of period
|
(9,075 | ) | (3,137 | ) | ||||
Accumulated
other comprehensive loss at end of period
|
(9,458 | ) |
4,188
|
|||||
Retained
earnings:
|
||||||||
Balance
at beginning of year
|
896,984
|
821,908
|
||||||
Cumulative
effect of change in accounting principle, net of tax
|
(2,195 | ) |
-
|
|||||
Net
earnings
|
56,145
|
52,344
|
||||||
Stockholder
dividends
|
(1,268 | ) | (1,267 | ) | ||||
Balance
at end of period
|
949,666
|
872,985
|
||||||
Total
stockholders' equity
|
$ |
980,066
|
918,016
|
|||||
See
accompanying notes to condensed consolidated financial
statements.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2007
|
2006
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
earnings
|
$ |
56,144
|
52,344
|
|||||
Adjustments
to reconcile net earnings to net cash
|
||||||||
from
operating activities:
|
||||||||
Universal
life and annuity contract interest
|
143,037
|
138,678
|
||||||
Surrender
charges and other policy revenues
|
(26,776 | ) | (24,226 | ) | ||||
Realized
gains on investments
|
(2,901 | ) | (3,229 | ) | ||||
Accrual
and amortization of investment income
|
(3,829 | ) | (3,793 | ) | ||||
Depreciation
and amortization
|
746
|
1,030
|
||||||
(Increase)
decrease in value of derivatives
|
26,393
|
(7,901 | ) | |||||
Increase
in deferred policy acquisition and sales inducement costs
|
(9,730 | ) | (6,479 | ) | ||||
(Increase)
decrease in accrued investment income
|
924
|
(615 | ) | |||||
(Increase)
decrease in other assets
|
582
|
(7,126 | ) | |||||
Increase
(decrease) in liabilities for future policy benefits
|
338
|
(612 | ) | |||||
Increase
in other policyholder liabilities
|
4,893
|
15,913
|
||||||
Increase
(decrease) in Federal income tax liability
|
6,861
|
987
|
||||||
Increase
(decrease) in other liabilities
|
(5,924 | ) |
14,941
|
|||||
Other
|
168
|
(72 | ) | |||||
Net
cash provided by operating activities
|
190,926
|
169,840
|
||||||
Cash
flows from investing activities:
|
||||||||
Proceeds
from sales of:
|
||||||||
Securities
held to maturity
|
5,175
|
-
|
||||||
Securities
available for sale
|
28,418
|
21,502
|
||||||
Other
investments
|
33,255
|
32,951
|
||||||
Proceeds
from maturities and redemptions of:
|
||||||||
Securities
held to maturity
|
106,023
|
199,590
|
||||||
Securities
available for sale
|
268,999
|
86,848
|
||||||
Purchases
of:
|
||||||||
Securities
held to maturity
|
(256,014 | ) | (254,994 | ) | ||||
Securities
available for sale
|
(284,742 | ) | (160,576 | ) | ||||
Other
investments
|
(35,619 | ) | (33,039 | ) | ||||
Principal
payments on mortgage loans
|
21,623
|
8,867
|
||||||
Cost
of mortgage loans acquired
|
(18,480 | ) | (3,999 | ) | ||||
Decrease
in policy loans
|
(2,309 | ) | (29 | ) | ||||
Other
|
(2,006 | ) | (247 | ) | ||||
Net
cash used in investing activities
|
(135,677 | ) | (103,126 | ) | ||||
(Continued
on next page)
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
|
||||||||
For
the Nine Months Ended September 30, 2007 and 2006
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2007
|
2006
|
|||||||
Cash
flows from financing activities:
|
||||||||
Deposits
to account balances for universal life
|
||||||||
and
annuity contracts
|
$ |
380,708
|
419,003
|
|||||
Return
of account balances on universal life
|
||||||||
and
annuity contracts
|
(444,877 | ) | (393,077 | ) | ||||
Issuance
of common stock under stock option plan
|
127
|
510
|
||||||
Net
cash (used in) provided by financing activities
|
(64,042 | ) |
26,436
|
|||||
Effect
of foreign exchange
|
(72 | ) |
738
|
|||||
Net
increase (decrease) in cash and short-term investments
|
(8,865 | ) |
93,888
|
|||||
Cash
and short-term investments at beginning of year
|
49,901
|
31,355
|
||||||
Cash
and short-term investments at end of period
|
$ |
41,036
|
125,243
|
|||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash
paid during the nine month period for:
|
||||||||
Interest
|
$ |
30
|
30
|
|||||
Income
taxes
|
19,155
|
24,990
|
||||||
See
accompanying notes to condensed consolidated financial
statements.
|
Amounts
|
||||
(In
thousands)
|
||||
Write-off
of deferred acquisition cost
|
$ |
3,321
|
||
Adjustment
to deferred annuity revenue
|
56
|
|||
3,377
|
||||
Federal
income tax
|
(1,182 | ) | ||
Cumulative
effect of change in accounting for
|
||||
internal
replacements and investment contracts
|
$ |
2,195
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands, except per share data)
|
||||||||||||||||
Numerator
for basic and diluted
|
||||||||||||||||
earnings
per share:
|
||||||||||||||||
Earnings
available to common stockholders
|
||||||||||||||||
before
and after assumed conversions
|
$ |
15,622
|
16,072
|
56,145
|
52,344
|
|||||||||||
Denominator:
|
||||||||||||||||
Basic
earnings per share -
|
||||||||||||||||
weighted-average
shares
|
3,622
|
3,621
|
3,622
|
3,620
|
||||||||||||
Effect
of dilutive stock options
|
31
|
34
|
31
|
36
|
||||||||||||
Diluted
earnings per share -
|
||||||||||||||||
adjusted
weighted-average
|
||||||||||||||||
shares
for assumed conversions
|
3,653
|
3,655
|
3,653
|
3,656
|
||||||||||||
Basic
earnings per share
|
$ |
4.31
|
4.44
|
15.50
|
14.46
|
|||||||||||
Diluted
earnings per share
|
$ |
4.28
|
4.40
|
15.37
|
14.32
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Service
cost
|
$ |
180
|
175
|
540
|
518
|
|||||||||||
Interest
cost
|
272
|
279
|
815
|
766
|
||||||||||||
Expected
return on plan assets
|
(275 | ) | (255 | ) | (825 | ) | (710 | ) | ||||||||
Amortization
of prior service cost
|
1
|
1
|
3
|
3
|
||||||||||||
Amortization
of net loss
|
80
|
99
|
240
|
264
|
||||||||||||
Net
periodic benefit cost
|
$ |
258
|
299
|
773
|
841
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Service
cost
|
$ |
194
|
574
|
580
|
1,222
|
|||||||||||
Interest
cost
|
240
|
385
|
721
|
531
|
||||||||||||
Amortization
of prior service cost
|
260
|
457
|
780
|
780
|
||||||||||||
Amortization
of net loss
|
101
|
137
|
303
|
137
|
||||||||||||
Net
periodic benefit cost
|
$ |
795
|
1,553
|
2,384
|
2,670
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Interest
cost
|
$ |
36
|
38
|
106
|
88
|
|||||||||||
Amortization
of prior service cost
|
25
|
26
|
77
|
77
|
||||||||||||
Amortization
of net loss
|
7
|
-
|
22
|
-
|
||||||||||||
Net
periodic benefit cost
|
$ |
68
|
64
|
205
|
165
|
Selected
Segment Information.
|
||||||||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
September
30, 2007:
|
||||||||||||||||||||
Selected
Balance Sheet Items:
|
||||||||||||||||||||
Deferred
policy acquisition
|
||||||||||||||||||||
costs
and sales inducements
|
$ |
57,063
|
189,866
|
508,852
|
-
|
755,781
|
||||||||||||||
Total
segment assets
|
392,465
|
769,225
|
5,513,462
|
104,786
|
6,779,938
|
|||||||||||||||
Future
policy benefits
|
318,171
|
541,526
|
4,733,985
|
-
|
5,593,682
|
|||||||||||||||
Other
policyholder liabilities
|
10,915
|
17,225
|
89,202
|
-
|
117,342
|
|||||||||||||||
Three
Months Ended
|
||||||||||||||||||||
September
30, 2007:
|
||||||||||||||||||||
Condensed
Income Statements:
|
||||||||||||||||||||
Premiums
and contract
|
||||||||||||||||||||
revenues
|
$ |
6,875
|
21,826
|
6,079
|
-
|
34,780
|
||||||||||||||
Net
investment income
|
4,774
|
6,460
|
62,833
|
1,008
|
75,075
|
|||||||||||||||
Other
income
|
7
|
19
|
543
|
3,217
|
3,786
|
|||||||||||||||
Total
revenues
|
11,656
|
28,305
|
69,455
|
4,225
|
113,641
|
|||||||||||||||
Life
and other policy benefits
|
3,969
|
6,353
|
1,015
|
-
|
11,337
|
|||||||||||||||
Amortization
of deferred
|
||||||||||||||||||||
policy
acquisition costs
|
2,229
|
8,045
|
14,964
|
-
|
25,238
|
|||||||||||||||
Universal
life and annuity
|
||||||||||||||||||||
contract
interest
|
2,396
|
6,131
|
29,692
|
-
|
38,219
|
|||||||||||||||
Other
operating expenses
|
2,877
|
3,616
|
3,593
|
2,785
|
12,871
|
|||||||||||||||
Federal
income taxes (benefit)
|
42
|
1,457
|
7,314
|
563
|
9,376
|
|||||||||||||||
Total
expenses
|
11,513
|
25,602
|
56,578
|
3,348
|
97,041
|
|||||||||||||||
Segment
earnings
|
$ |
143
|
2,703
|
12,877
|
877
|
16,600
|
||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Nine
Months Ended
|
||||||||||||||||||||
September
30, 2007:
|
||||||||||||||||||||
Condensed
Income Statements:
|
||||||||||||||||||||
Premiums
and contract
|
||||||||||||||||||||
revenues
|
$ |
19,522
|
64,061
|
17,965
|
-
|
101,548
|
||||||||||||||
Net
investment income
|
13,967
|
21,075
|
220,263
|
4,728
|
260,033
|
|||||||||||||||
Other
income
|
34
|
106
|
909
|
9,412
|
10,461
|
|||||||||||||||
Total
revenues
|
33,523
|
85,242
|
239,137
|
14,140
|
372,042
|
|||||||||||||||
Life
and other policy benefits
|
12,727
|
17,330
|
2,691
|
-
|
32,748
|
|||||||||||||||
Amortization
of deferred
|
||||||||||||||||||||
policy
acquisition costs
|
5,041
|
25,401
|
44,218
|
-
|
74,660
|
|||||||||||||||
Universal
life and annuity
|
||||||||||||||||||||
contract
interest
|
7,028
|
19,227
|
116,782
|
-
|
143,037
|
|||||||||||||||
Other
operating expenses
|
9,084
|
12,388
|
13,673
|
8,209
|
43,354
|
|||||||||||||||
Federal
income taxes (benefit)
|
(109 | ) |
3,340
|
18,936
|
1,817
|
23,984
|
||||||||||||||
Total
expenses
|
33,771
|
77,686
|
196,300
|
10,026
|
317,783
|
|||||||||||||||
Segment
earnings (losses)
|
$ | (248 | ) |
7,556
|
42,837
|
4,114
|
54,259
|
Selected
Segment Information.
|
||||||||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
September
30, 2006:
|
||||||||||||||||||||
Selected
Balance Sheet Items:
|
||||||||||||||||||||
Deferred
policy acquisition
|
||||||||||||||||||||
costs
and sales inducements
|
$ |
49,041
|
177,482
|
499,212
|
-
|
725,735
|
||||||||||||||
Total
segment assets
|
377,777
|
691,455
|
5,414,024
|
98,269
|
6,581,525
|
|||||||||||||||
Future
policy benefits
|
312,671
|
479,838
|
4,671,975
|
-
|
5,464,484
|
|||||||||||||||
Other
policyholder liabilities
|
9,702
|
21,680
|
85,089
|
-
|