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 June 30, 2009
|
|
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 August 5, 2009, the number of shares of Registrant's common stock
outstanding was: Class A – 3,425,966 and Class
B - 200,000.
|
Page
|
|
3
|
|
3
|
|
3
|
|
June
30, 2009 (Unaudited) and December 31, 2008
|
|
5
|
|
For
the Three Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
6
|
|
For
the Six Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
7
|
|
For
the Three Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
8
|
|
For
the Six Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
9
|
|
For
the Six Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
11
|
|
For
the Six Months Ended June 30, 2009 and 2008 (Unaudited)
|
|
13
|
|
46
|
|
Financial
Condition and Results of Operations
|
|
72
|
|
72
|
|
72
|
|
72
|
|
72
|
|
73
|
|
73
|
|
73
|
|
74
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||
(In
thousands)
|
||||
(Unaudited)
|
||||
June
30,
|
December
31,
|
|||
ASSETS
|
2009
|
2008
|
||
Investments:
|
||||
Securities
held to maturity, at amortized cost
|
||||
(fair
value: $4,015,880 and $3,727,353)
|
$
|
3,986,365
|
3,831,417
|
|
Securities
available for sale, at fair value
|
||||
(cost:
$1,897,918 and $1,904,053)
|
1,855,738
|
1,745,266
|
||
Mortgage
loans, net of allowance for possible losses
|
||||
($3,577
and $4,587)
|
93,016
|
90,733
|
||
Policy
loans
|
77,928
|
79,277
|
||
Derivatives,
index options
|
27,018
|
11,920
|
||
Other
long-term investments
|
29,651
|
14,168
|
||
Total
investments
|
6,069,716
|
5,772,781
|
||
Cash
and short-term investments
|
54,850
|
67,796
|
||
Deferred
policy acquisition costs
|
658,921
|
701,984
|
||
Deferred
sales inducements
|
121,202
|
120,955
|
||
Accrued
investment income
|
67,200
|
64,872
|
||
Federal
income tax receivable
|
-
|
1,820
|
||
Other
assets
|
64,862
|
56,272
|
||
$
|
7,036,751
|
6,786,480
|
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In
thousands, except share amounts)
|
||||||||
(Unaudited)
|
||||||||
June
30,
|
December
31,
|
|||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
2009
|
2008
|
||||||
LIABILITIES:
|
||||||||
Future
policy benefits:
|
||||||||
Traditional
life and annuity contracts
|
$ | 136,470 | 137,530 | |||||
Universal
life and annuity contracts
|
5,567,547 | 5,424,968 | ||||||
Other
policyholder liabilities
|
134,875 | 131,963 | ||||||
Federal
income tax liability:
|
||||||||
Current
|
8,131 | - | ||||||
Deferred
|
45,365 | 26,506 | ||||||
Other
liabilities
|
81,214 | 79,300 | ||||||
Total
liabilities
|
5,973,602 | 5,800,267 | ||||||
COMMITMENTS
AND CONTINGENCIES (Notes 5 and 8)
|
||||||||
STOCKHOLDERS’
EQUITY:
|
||||||||
Common
stock:
|
||||||||
Class
A - $1 par value; 7,500,000 shares authorized; 3,425,966
|
||||||||
and
3,425,454 issued and outstanding in 2009 and 2008
|
3,426 | 3,426 | ||||||
Class
B - $1 par value; 200,000 shares authorized, issued,
|
||||||||
and
outstanding in 2009 and 2008
|
200 | 200 | ||||||
Additional
paid-in capital
|
36,680 | 36,680 | ||||||
Accumulated
other comprehensive loss
|
(22,799 | ) | (65,358 | ) | ||||
Retained
earnings
|
1,045,642 | 1,011,265 | ||||||
Total
stockholders’ equity
|
1,063,149 | 986,213 | ||||||
$ | 7,036,751 | 6,786,480 |
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
For
the Three Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands, except per share amounts)
|
||||||||
2009
|
2008
|
|||||||
Premiums
and other revenue:
|
||||||||
Traditional
life and annuity premiums
|
$ | 4,389 | 4,624 | |||||
Universal
life and annuity contract charges
|
38,862 | 33,593 | ||||||
Net
investment income
|
93,743 | 72,278 | ||||||
Other
revenues
|
3,507 | 3,153 | ||||||
Net
realized investment gains (losses):
|
||||||||
Total other-than-temporary impairment (“OTTI”)
losses
|
(1,849 | ) | (1,425 | ) | ||||
Portion of OTTI losses recognized in other comprehensive
income
|
1,823 | - | ||||||
Net OTTI losses recognized in earnings
|
(26 | ) | (1,425 | ) | ||||
Other
net investment gains
|
192 | 1,158 | ||||||
Total net realized investment gains (losses)
|
166 | (267 | ) | |||||
Total
revenues
|
140,667 | 113,381 | ||||||
Benefits
and expenses:
|
||||||||
Life
and other policy benefits
|
10,248 | 7,655 | ||||||
Amortization
of deferred policy acquisition costs and
|
||||||||
deferred sales inducements
|
28,549 | 30,263 | ||||||
Universal
life and annuity contract interest
|
57,651 | 33,555 | ||||||
Other
operating expenses
|
16,631 | 14,627 | ||||||
Total
benefits and expenses
|
113,079 | 86,100 | ||||||
Earnings
before Federal income taxes
|
27,588 | 27,281 | ||||||
Provision
(benefit) for Federal income taxes:
|
||||||||
Current
|
15,141 | 7,928 | ||||||
Deferred
|
(6,395 | ) | 1,211 | |||||
Total
Federal income taxes
|
8,746 | 9,139 | ||||||
Net
earnings
|
$ | 18,842 | 18,142 | |||||
Basic
Earnings Per Share:
|
||||||||
Class
A
|
$ | 5.34 | 5.15 | |||||
Class
B
|
$ | 2.67 | 2.57 | |||||
Diluted
Earnings Per Share:
|
||||||||
Class
A
|
$ | 5.34 | 5.10 | |||||
Class
B
|
$ | 2.67 | 2.57 |
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands, except per share amounts)
|
||||||||
2009
|
2008
|
|||||||
Premiums
and other revenues:
|
||||||||
Traditional
life and annuity premiums
|
$ | 8,520 | 8,518 | |||||
Universal
life and annuity contract charges
|
77,433 | 65,811 | ||||||
Net
investment income
|
164,349 | 131,708 | ||||||
Other
revenues
|
7,101 | 6,292 | ||||||
Net
realized investment gains (losses):
|
||||||||
Total other-than-temporary impairment (“OTTI”) losses
|
(7,130 | ) | (1,450 | ) | ||||
Portion of OTTI losses recognized in other comprehensive
income
|
1,823 | - | ||||||
Net OTTI losses recognized in earnings
|
(5,307 | ) | (1,450 | ) | ||||
Other net investment gains
|
128 | 1,139 | ||||||
Total net realized investment losses
|
(5,179 | ) | (311 | ) | ||||
Total
revenues
|
252,224 | 212,018 | ||||||
Benefits
and expenses:
|
||||||||
Life
and other policy benefits
|
23,276 | 18,111 | ||||||
Amortization
of deferred policy acquisition costs and
|
||||||||
deferred sales inducements
|
56,497 | 56,511 | ||||||
Universal
life and annuity contract interest
|
92,917 | 60,172 | ||||||
Other
operating expenses
|
29,344 | 28,057 | ||||||
Total
benefits and expenses
|
202,034 | 162,851 | ||||||
Earnings
before Federal income taxes
|
50,190 | 49,167 | ||||||
Provision
(benefit) for Federal income taxes:
|
||||||||
Current
|
21,005 | 11,819 | ||||||
Deferred
|
(4,685 | ) | 4,760 | |||||
Total
Federal income taxes
|
16,320 | 16,579 | ||||||
Net
earnings
|
$ | 33,870 | 32,588 | |||||
Basic
Earnings Per Share:
|
||||||||
Class
A
|
$ | 9.61 | 9.25 | |||||
Class
B
|
$ | 4.80 | 4.62 | |||||
Diluted
Earnings Per Share:
|
||||||||
Class
A
|
$ | 9.60 | 9.18 | |||||
Class
B
|
$ | 4.80 | 4.62 |
For
the Three Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2009
|
2008
|
|||||||
Net
earnings
|
$ | 18,842 | 18,142 | |||||
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
|
31,868 | (15,503 | ) | |||||
Reclassification adjustment for net amounts | ||||||||
included in net earnings | 171 | (574 | ) | |||||
Amortization
of net unrealized gains related to
|
||||||||
transferred
securities
|
(12 | ) | (30 | ) | ||||
Net unrealized gains (losses) on securities | 32,027 | (16,107 | ) | |||||
Foreign
currency translation adjustments
|
(93 | ) | 39 | |||||
Benefit
plans:
|
||||||||
Amortization
of net prior service cost and net gain
|
411 | 375 | ||||||
Other
comprehensive income (loss)
|
32,345 | (15,693 | ) | |||||
Comprehensive
income
|
$ | 51,187 | 2,449 |
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2009
|
2008
|
|||||||
Net
earnings
|
$ | 33,870 | 32,588 | |||||
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
|
39,513 | (15,095 | ) | |||||
Reclassification adjustment for net amounts | ||||||||
included in net earnings | 2,872 | (610 | ) | |||||
Amortization
of net unrealized gains related to
|
||||||||
transferred
securities
|
(44 | ) | (14 | ) | ||||
Net unrelaized gains (losses) on securities | 42,341 | (15,719 | ) | |||||
Foreign
currency translation adjustments
|
(98 | ) | (142 | ) | ||||
Benefit
plans:
|
||||||||
Amortization
of net prior service cost and net gain
|
823 | 684 | ||||||
Other
comprehensive income (loss)
|
43,066 | (15,177 | ) | |||||
Comprehensive
income
|
$ | 76,936 | 17,411 |
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2009
|
2008
|
|||||||
Common
stock:
|
||||||||
Balance
at beginning of period
|
$ | 3,626 | 3,622 | |||||
Shares
exercised under stock option plan
|
- | 4 | ||||||
Balance
at end of period
|
3,626 | 3,626 | ||||||
Additional
paid-in capital:
|
||||||||
Balance
at beginning of period
|
36,680 | 36,236 | ||||||
Shares
exercised under the stock option plan
|
- | 444 | ||||||
Balance
at end of period
|
36,680 | 36,680 | ||||||
Accumulated
other comprehensive income (loss):
|
||||||||
Unrealized
gains (losses) on non-impaired securities:
|
||||||||
Balance
at beginning of period
|
(53,770 | ) | 1,184 | |||||
Change
in unrealized gains (losses) during period
|
42,902 | (15,719 | ) | |||||
Balance
at end of period
|
(10,868 | ) | (14,535 | ) | ||||
Unrealized
losses on impaired held to maturity securities:
|
||||||||
Balance
at beginning of period
|
- | - | ||||||
Cumulative
effect of change in accounting principle (See Note 3)
|
(507 | ) | - | |||||
Amortization
|
15 | - | ||||||
Balance
at end of period
|
(492 | ) | - | |||||
Unrealized
losses on impaired available for sale securities:
|
||||||||
Balance
at beginning of period
|
- | - | ||||||
Other-than-temporary
impairments
|
(576 | ) | - | |||||
Balance
at end of period
|
(576 | ) | - | |||||
Foreign
currency translation adjustments:
|
||||||||
Balance
at beginning of period
|
2,966 | 3,078 | ||||||
Change
in translation adjustments during period
|
(98 | ) | (142 | ) | ||||
Balance
at end of period
|
2,868 | 2,936 | ||||||
Benefit
plan liability adjustment:
|
||||||||
Balance
at beginning of period
|
(14,554 | ) | (11,327 | ) | ||||
Amortization
of net prior service cost and net gain
|
823 | 684 | ||||||
Balance
at end of period
|
(13,731 | ) | (10,643 | ) | ||||
Accumulated
other comprehensive loss at end of period
|
(22,799 | ) | (22,242 | ) |
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY, CONTINUED
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
Retained
earnings:
|
||||||||
Balance
at beginning of period
|
1,011,265 | 978,892 | ||||||
Cumulative
effect of change in accounting principle,
|
||||||||
net
of tax (See Note 3)
|
507 | - | ||||||
Net
earnings
|
33,870 | 32,588 | ||||||
Balance
at end of period
|
1,045,642 | 1,011,480 | ||||||
Total
stockholders' equity
|
$ | 1,063,149 | 1,029,544 |
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
earnings
|
$ | 33,870 | 32,588 | |||||
Adjustments
to reconcile net earnings to net cash
|
||||||||
from
operating activities:
|
||||||||
Universal
life and annuity contract interest
|
105,066 | 69,219 | ||||||
Surrender
charges and other policy revenues
|
(30,471 | ) | (19,667 | ) | ||||
Realized
losses on investments
|
5,179 | 311 | ||||||
Accrual
and amortization of investment income
|
(2,833 | ) | (2,487 | ) | ||||
Depreciation
and amortization
|
1,344 | 495 | ||||||
(Increase)
decrease in value of derivatives
|
(18,344 | ) | 21,289 | |||||
Increase
in deferred policy acquisition and
|
||||||||
sales
inducement costs
|
(9,210 | ) | (5,741 | ) | ||||
(Increase)
decrease in accrued investment income
|
(2,328 | ) | 172 | |||||
Increase
in other assets
|
(11,822 | ) | (5,273 | ) | ||||
Decrease
in liabilities for future policy benefits
|
(1,060 | ) | (601 | ) | ||||
Increase
in other policyholder liabilities
|
2,912 | 3,421 | ||||||
Increase
in Federal income tax liability
|
5,266 | 8,401 | ||||||
Increase
(decrease) in other liabilities
|
13,642 | (4,115 | ) | |||||
Other
|
1,250 | 359 | ||||||
Net
cash provided by operating activities
|
92,461 | 98,371 | ||||||
Cash
flows from investing activities:
|
||||||||
Proceeds
from sales of:
|
||||||||
Securities
held to maturity
|
- | - | ||||||
Securities
available for sale
|
14,770 | 999 | ||||||
Other
investments
|
671 | 443 | ||||||
Proceeds
from maturities and redemptions of:
|
||||||||
Securities
held to maturity
|
530,236 | 355,100 | ||||||
Securities
available for sale
|
64,563 | 140,458 | ||||||
Derivatives,
index options
|
24,405 | 22,143 | ||||||
Purchases
of:
|
||||||||
Securities
held to maturity
|
(668,004 | ) | (379,575 | ) | ||||
Securities
available for sale
|
(101,172 | ) | (167,134 | ) | ||||
Other
investments
|
(37,603 | ) | (26,292 | ) | ||||
Principal
payments on mortgage loans
|
3,921 | 10,200 | ||||||
Cost
of mortgage loans acquired
|
(6,049 | ) | (1,962 | ) | ||||
Decrease
in policy loans
|
1,349 | 1,895 | ||||||
Other
|
- | (3,899 | ) | |||||
Net
cash used in investing activities
|
(172,913 | ) | (47,624 | ) |
NATIONAL
WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
|
||||||||
For
the Six Months Ended June 30, 2009 and 2008
|
||||||||
(Unaudited)
|
||||||||
(In
thousands)
|
||||||||
2009
|
2008
|
|||||||
Cash
flows from financing activities:
|
||||||||
Deposits
to account balances for universal life
|
||||||||
and
annuity contracts
|
$ | 363,145 | 238,296 | |||||
Return
of account balances on universal life
|
||||||||
and
annuity contracts
|
(295,546 | ) | (300,961 | ) | ||||
Issuance
of common stock under stock option plan
|
- | 448 | ||||||
Net
cash provided by (used in) financing activities
|
67,599 | (62,217 | ) | |||||
Effect
of foreign exchange
|
(93 | ) | (351 | ) | ||||
Net
decrease in cash and short-term investments
|
(12,946 | ) | (11,821 | ) | ||||
Cash
and short-term investments at beginning of period
|
67,796 | 45,206 | ||||||
Cash
and short-term investments at end of period
|
$ | 54,850 | 33,385 |
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash
paid during the period for:
|
||||||||
Interest
|
$ | 20 | 20 | |||||
Income
taxes
|
10,748 | 8,178 | ||||||
Noncash
operating activities:
|
||||||||
Net
change in deferral of sales inducements
|
10,124 | 9,047 | ||||||
Three
Months Ended June 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Class
A
|
Class
B
|
Class
A
|
Class
B
|
|||||||||||||
(In
thousands except per share amounts)
|
||||||||||||||||
Numerator
for Basic and
|
||||||||||||||||
Diluted
Earnings Per Share:
|
||||||||||||||||
Net
income
|
$ | 18,842 | 18,142 | |||||||||||||
Dividends
– Class A shares
|
- | - | ||||||||||||||
Dividends
– Class B shares
|
- | - | ||||||||||||||
Undistributed
income
|
$ | 18,842 | 18,142 | |||||||||||||
Allocation
of net income:
|
||||||||||||||||
Dividends
|
$ | - | - | - | - | |||||||||||
Allocation
of undistributed income
|
18,307 | 535 | 17,627 | 515 | ||||||||||||
Net
income
|
$ | 18,307 | 535 | 17,627 | 515 | |||||||||||
Denominator:
|
||||||||||||||||
Basic
earnings per share -
|
||||||||||||||||
weighted-average
shares
|
3,426 | 200 | 3,426 | 200 | ||||||||||||
Effect
of dilutive
|
||||||||||||||||
stock
options
|
4 | - | 27 | - | ||||||||||||
Diluted
earnings per share -
|
||||||||||||||||
adjusted
weighted-average
|
||||||||||||||||
shares
for assumed
|
||||||||||||||||
conversions
|
3,430 | 200 | 3,453 | 200 | ||||||||||||
Basic
Earnings Per Share
|
$ | 5.34 | 2.67 | 5.15 | 2.57 | |||||||||||
Diluted
Earnings Per Share
|
$ | 5.34 | 2.67 | 5.10 | 2.57 |
Six
Months Ended June 30,
|
||||||||||||||||
2009
|
2008
|
|||||||||||||||
Class
A
|
Class
B
|
Class
A
|
Class
B
|
|||||||||||||
(In
thousands except per share amounts)
|
||||||||||||||||
Numerator
for Basic and
|
||||||||||||||||
Diluted
Earnings Per Share:
|
||||||||||||||||
Net
income
|
$ | 33,870 | 32,588 | |||||||||||||
Dividends
– Class A shares
|
- | - | ||||||||||||||
Dividends
– Class B shares
|
- | - | ||||||||||||||
Undistributed
income
|
$ | 33,870 | 32,588 | |||||||||||||
Allocation
of net income:
|
||||||||||||||||
Dividends
|
$ | - | - | - | - | |||||||||||
Allocation
of undistributed income
|
32,909 | 961 | 31,664 | 924 | ||||||||||||
Net
income
|
$ | 32,909 | 961 | 31,664 | 924 | |||||||||||
Denominator:
|
||||||||||||||||
Basic
earnings per share -
|
||||||||||||||||
weighted-average
shares
|
3,426 | 200 | 3,424 | 200 | ||||||||||||
Effect
of dilutive
|
||||||||||||||||
stock
options
|
4 | - | 26 | - | ||||||||||||
Diluted
earnings per share -
|
||||||||||||||||
adjusted
weighted-average
|
||||||||||||||||
shares
for assumed
|
||||||||||||||||
conversions
|
3,430 | 200 | 3,450 | 200 | ||||||||||||
Basic
Earnings Per Share
|
$ | 9.61 | 4.80 | 9.25 | 4.62 | |||||||||||
Diluted
Earnings Per Share
|
$ | 9.60 | 4.80 | 9.18 | 4.62 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Service
cost
|
$ | - | (180 | ) | - | - | ||||||||||
Interest
cost
|
262 | 246 | 524 | 518 | ||||||||||||
Expected
return on plan assets
|
(223 | ) | (295 | ) | (445 | ) | (570 | ) | ||||||||
Amortization
of prior service cost
|
1 | 1 | 2 | 2 | ||||||||||||
Amortization
of net loss
|
149 | 42 | 297 | 122 | ||||||||||||
Net
periodic benefit cost
|
$ | 189 | (186 | ) | 378 | 72 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Service
cost
|
$ | 37 | 100 | 74 | 293 | |||||||||||
Interest
cost
|
309 | 354 | 617 | 595 | ||||||||||||
Amortization
of prior service cost
|
260 | 260 | 520 | 520 | ||||||||||||
Amortization
of net loss
|
198 | 252 | 396 | 353 | ||||||||||||
Net
periodic benefit cost
|
$ | 804 | 966 | 1,607 | 1,761 |
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Interest
cost
|
$ | 33 | 32 | 65 | 67 | |||||||||||
Amortization
of prior service cost
|
26 | 26 | 52 | 52 | ||||||||||||
Amortization
of net loss (gain)
|
- | (4 | ) | - | 3 | |||||||||||
Net
periodic benefit cost
|
$ | 59 | 54 | 117 | 122 |
Selected
Segment Information:
|
||||||||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
June
30, 2009:
|
||||||||||||||||||||
Selected
Balance Sheet Items:
|
||||||||||||||||||||
Deferred
policy acquisition
|
||||||||||||||||||||
costs
and sales inducements
|
$ | 61,850 | 209,021 | 509,252 | - | 780,123 | ||||||||||||||
Total
segment assets
|
393,864 | 1,000,007 | 5,448,684 | 146,332 | 6,988,887 | |||||||||||||||
Future
policy benefits
|
319,259 | 608,331 | 4,776,427 | - | 5,704,017 | |||||||||||||||
Other
policyholder liabilities
|
11,748 | 24,726 | 98,401 | - | 134,875 | |||||||||||||||
Three
Months Ended
|
||||||||||||||||||||
June
30, 2009:
|
||||||||||||||||||||
Condensed
Income Statements:
|
||||||||||||||||||||
Premiums
and contract
|
||||||||||||||||||||
revenues
|
$ | 9,418 | 26,585 | 7,248 | - | 43,251 | ||||||||||||||
Net
investment income
|
4,962 | 9,822 | 75,096 | 3,863 | 93,743 | |||||||||||||||
Other
income
|
6 | 12 | 78 | 3,411 | 3,507 | |||||||||||||||
Total
revenues
|
14,386 | 36,419 | 82,422 | 7,274 | 140,501 | |||||||||||||||
Life
and other policy benefits
|
4,334 | 4,374 | 1,540 | - | 10,248 | |||||||||||||||
Amortization
of deferred
|
||||||||||||||||||||
policy
acquisition costs
|
1,979 | 11,600 | 14,970 | - | 28,549 | |||||||||||||||
Universal
life and annuity
|
||||||||||||||||||||
contract
interest
|
2,226 | 10,480 | 44,945 | - | 57,651 | |||||||||||||||
Other
operating expenses
|