UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 10-Q
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þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended September 30, 2010
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from __________ to __________
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Commission File Number: 2-17039
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NATIONAL WESTERN LIFE INSURANCE COMPANY
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(Exact name of Registrant as specified in its charter)
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COLORADO
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84-0467208
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(State of Incorporation)
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(I.R.S. Employer Identification Number)
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850 EAST ANDERSON LANE
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AUSTIN, TEXAS 78752-1602
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(512) 836-1010
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(Address of Principal Executive Offices)
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(Telephone Number)
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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
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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.
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Large accelerated filer o Accelerated filer þ Non-accelerated filer o
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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
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As of November 5, 2010, the number of shares of Registrant's common stock outstanding was: Class A – 3,428,941 and Class B - 200,000.
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Page
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3
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3
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3
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September 30, 2010 (Unaudited) and December 31, 2009
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5
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For the Three Months Ended September 30, 2010 and 2009 (Unaudited)
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6
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For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)
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7
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For the Three Months Ended September 30, 2010 and 2009 (Unaudited)
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8
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For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)
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9
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For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)
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11
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For the Nine Months Ended September 30, 2010 and 2009 (Unaudited)
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13
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51
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Financial Condition and Results of Operations
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80
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80
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81
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81
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81
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81
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82
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82
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83
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NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
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||||||||
(In thousands)
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||||||||
(Unaudited)
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||||||||
September 30,
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December 31,
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|||||||
ASSETS
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2010
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2009
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||||||
Investments:
|
||||||||
Securities held to maturity, at amortized cost (fair value: $5,204,033 and $4,331,077)
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$ | 4,780,604 | 4,176,661 | |||||
Securities available for sale, at fair value (cost: $2,179,419 and $1,967,365)
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2,409,030 | 2,050,079 | ||||||
Mortgage loans, net of allowance for possible losses ($5,420 and $5,033)
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133,286 | 98,200 | ||||||
Policy loans | 78,591 | 78,336 | ||||||
Derivatives, index options | 35,987 | 89,915 | ||||||
Other long-term investments | 29,082 | 32,829 | ||||||
Total investments
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7,466,580 | 6,526,020 | ||||||
Cash and short-term investments
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29,197 | 108,866 | ||||||
Deferred policy acquisition costs
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628,227 | 626,440 | ||||||
Deferred sales inducements
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125,177 | 122,232 | ||||||
Accrued investment income
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80,855 | 71,572 | ||||||
Federal income tax receivable
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867 | - | ||||||
Other assets
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74,998 | 63,605 | ||||||
$ | 8,405,901 | 7,518,735 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
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||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
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||||||||
(In thousands, except share amounts)
|
||||||||
(Unaudited)
|
||||||||
September 30,
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December 31,
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|||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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2010
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2009
|
||||||
LIABILITIES:
|
||||||||
Future policy benefits:
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||||||||
Traditional life and annuity contracts
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$ | 138,414 | 133,169 | |||||
Universal life and annuity contracts
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6,746,153 | 5,988,665 | ||||||
Other policyholder liabilities
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137,035 | 128,931 | ||||||
Deferred Federal income tax liability
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62,903 | 32,818 | ||||||
Federal income tax payable
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- | 13,197 | ||||||
Other liabilities
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106,281 | 107,902 | ||||||
Total liabilities
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7,190,786 | 6,404,682 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 8)
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||||||||
STOCKHOLDERS’ EQUITY:
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||||||||
Common stock:
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||||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,428,941 and 3,425,966 issued and outstanding in 2010 and 2009, respectively
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3,429 | 3,426 | ||||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2010 and 2009
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200 | 200 | ||||||
Additional paid-in capital
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36,954 | 36,680 | ||||||
Accumulated other comprehensive income
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67,157 | 17,760 | ||||||
Retained earnings
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1,107,375 | 1,055,987 | ||||||
Total stockholders’ equity
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1,215,115 | 1,114,053 | ||||||
$ | 8,405,901 | 7,518,735 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
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||||||||
For the Three Months Ended September 30, 2010 and 2009
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||||||||
(Unaudited)
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||||||||
(In thousands, except per share amounts)
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||||||||
2010
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2009
|
|||||||
Premiums and other revenues:
|
||||||||
Traditional life and annuity premiums
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$ | 3,961 | 3,707 | |||||
Universal life and annuity contract charges
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32,898 | 37,683 | ||||||
Net investment income
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106,605 | 116,276 | ||||||
Other revenues
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6,075 | 5,086 | ||||||
Net realized investment gains (losses):
|
||||||||
Total other-than-temporary impairment (“OTTI”) losses
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(538 | ) | (4,666 | ) | ||||
Portion of OTTI losses recognized in other comprehensive income
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123 | 4,572 | ||||||
Net OTTI losses recognized in earnings
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(415 | ) | (94 | ) | ||||
Other net investment gains
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2,087 | 151 | ||||||
Total net realized investment gains
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1,672 | 57 | ||||||
Total revenues
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151,211 | 162,809 | ||||||
Benefits and expenses:
|
||||||||
Life and other policy benefits
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13,335 | 19,965 | ||||||
Amortization of deferred policy acquisition costs and deferred sales inducements
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32,608 | 28,436 | ||||||
Universal life and annuity contract interest
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86,792 | 80,608 | ||||||
Other operating expenses
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(2,181 | ) | 36,426 | |||||
Total benefits and expenses
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130,554 | 165,435 | ||||||
Earnings (loss) before Federal income taxes
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20,657 | (2,626 | ) | |||||
Provision (benefit) for Federal income taxes
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7,218 | (1,512 | ) | |||||
Net earnings (loss)
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$ | 13,439 | (1,114 | ) | ||||
Basic Earnings (Loss) Per Share:
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||||||||
Class A
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$ | 3.81 | (0.32 | ) | ||||
Class B
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$ | 1.90 | (0.16 | ) | ||||
Diluted Earnings (Loss) Per Share:
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Class A
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$ | 3.81 | (0.32 | ) | ||||
Class B
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$ | 1.90 | (0.16 | ) |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
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For the Nine Months Ended September 30, 2010 and 2009
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(Unaudited)
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||||||||
(In thousands, except per share amounts)
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||||||||
2010
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2009
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|||||||
Premiums and other revenues:
|
||||||||
Traditional life and annuity premiums
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$ | 12,475 | 12,227 | |||||
Universal life and annuity contract charges
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96,433 | 115,116 | ||||||
Net investment income
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261,740 | 280,625 | ||||||
Other revenues
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20,394 | 12,187 | ||||||
Net realized investment gains (losses):
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||||||||
Total other-than-temporary impairment (“OTTI”) losses
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(846 | ) | (11,796 | ) | ||||
Portion of OTTI losses recognized in other comprehensive income
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123 | 6,395 | ||||||
Net OTTI losses recognized in earnings
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(723 | ) | (5,401 | ) | ||||
Other net investment gains
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2,017 | 279 | ||||||
Total net realized investment gains (losses)
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1,294 | (5,122 | ) | |||||
Total revenues
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392,336 | 415,033 | ||||||
Benefits and expenses:
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||||||||
Life and other policy benefits
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40,141 | 43,241 | ||||||
Amortization of deferred policy acquisition costs and deferred sales inducements
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74,614 | 84,933 | ||||||
Universal life and annuity contract interest
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167,423 | 173,525 | ||||||
Other operating expenses
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32,223 | 65,770 | ||||||
Total benefits and expenses
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314,401 | 367,469 | ||||||
Earnings before Federal income taxes
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77,935 | 47,564 | ||||||
Federal income taxes
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25,276 | 14,808 | ||||||
Net earnings
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$ | 52,659 | 32,756 | |||||
Basic Earnings Per Share:
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Class A
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$ | 14.93 | 9.29 | |||||
Class B
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$ | 7.46 | 4.65 | |||||
Diluted Earnings Per Share:
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Class A
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$ | 14.89 | 9.28 | |||||
Class B
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$ | 7.46 | 4.65 |
For the Three Months Ended September 30, 2010 and 2009
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(Unaudited)
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||||||||
(In thousands)
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||||||||
2010
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2009
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Net earnings (loss)
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$ | 13,439 | (1,114 | ) | ||||
Other comprehensive income, net of effects of deferred costs and taxes:
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||||||||
Unrealized gains on securities:
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||||||||
Net unrealized holding gains arising during period
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20,421 | 38,623 | ||||||
Net unrealized noncredit gains (losses)
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(123 | ) | (1,344 | ) | ||||
Reclassification adjustment for net amounts included in net loss
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(326 | ) | (17 | ) | ||||
Amortization of net unrealized losses related to transferred securities
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20 | 6 | ||||||
Net unrealized gains on securities
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19,992 | 37,268 | ||||||
Foreign currency translation adjustments
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(43 | ) | 79 | |||||
Benefit plans:
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Amortization of net prior service cost and net gain
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289 | 411 | ||||||
Other comprehensive income
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20,238 | 37,758 | ||||||
Comprehensive income
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$ | 33,677 | 36,644 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
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||||||||
For the Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
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||||||||
(In thousands)
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||||||||
2010
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2009
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|||||||
Net earnings
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$ | 52,659 | 32,756 | |||||
Other comprehensive income, net of effects of deferred costs and taxes:
|
||||||||
Unrealized gains on securities:
|
||||||||
Net unrealized holding gains arising during period
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49,093 | 78,697 | ||||||
Net unrealized noncredit losses | (123 | ) | (1,905 | ) | ||||
Reclassification adjustment for net amounts included in net earnings (loss)
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(326 | ) | 2,855 | |||||
Amortization of net unrealized (gains) losses related to transferred securities
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24 | (38 | ) | |||||
Net unrealized gains on securities
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48,668 | 79,609 | ||||||
Foreign currency translation adjustments
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(139 | ) | (19 | ) | ||||
Benefit plans:
|
||||||||
Amortization of net prior service cost and net gain
|
868 | 1,234 | ||||||
Other comprehensive income
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49,397 | 80,824 | ||||||
Comprehensive income
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$ | 102,056 | 113,580 |
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
|
||||||||
For the Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
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||||||||
(In thousands)
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||||||||
2010
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2009
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|||||||
Common stock:
|
||||||||
Balance at beginning of period
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$ | 3,626 | 3,626 | |||||
Shares exercised under stock option plan
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3 | - | ||||||
Balance at end of period
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3,629 | 3,626 | ||||||
Additional paid-in capital:
|
||||||||
Balance at beginning of period
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36,680 | 36,680 | ||||||
Shares exercised under stock option plan
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274 | - | ||||||
Balance at end of period
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36,954 | 36,680 | ||||||
Accumulated other comprehensive income (loss):
|
||||||||
Unrealized gains (losses) on non-impaired securities:
|
||||||||
Balance at beginning of period
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31,639 | (53,770 | ) | |||||
Change in unrealized gains during period, net of tax
|
48,435 | 81,514 | ||||||
Balance at end of period
|
80,074 | 27,744 | ||||||
Unrealized losses on impaired held to maturity securities:
|
||||||||
Balance at beginning of period
|
(2,751 | ) | - | |||||
Cumulative effect of change in accounting principal (See Note 3)
|
- | (507 | ) | |||||
Amortization
|
30 | 29 | ||||||
Other-than-temporary impairments, non-credit, net of tax
|
(123 | ) | (1,446 | ) | ||||
Balance at end of period
|
(2,844 | ) | (1,924 | ) | ||||
Unrealized losses on impaired available for sale securities:
|
||||||||
Balance at beginning of period
|
(562 | ) | - | |||||
Other-than-temporary impairments, non-credit, net of tax
|
(365 | ) | (570 | ) | ||||
Recoveries, net of tax
|
326 | 82 | ||||||
Balance at end of period
|
(601 | ) | (488 | ) | ||||
Foreign currency translation adjustments:
|
||||||||
Balance at beginning of period
|
2,893 | 2,966 | ||||||
Change in translation adjustments during period
|
(139 | ) | (19 | ) | ||||
Balance at end of period
|
2,754 | 2,947 | ||||||
Benefit plan liability adjustment:
|
||||||||
Balance at beginning of period
|
(13,459 | ) | (14,554 | ) | ||||
Amortization of net prior service cost and net gain, net of tax
|
868 | 1,234 | ||||||
Balance at end of period
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(12,591 | ) | (13,320 | ) | ||||
Accumulated other comprehensive income at end of period
|
67,157 | 14,959 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY, CONTINUED
|
||||||||
For the Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
Retained earnings:
|
||||||||
Balance at beginning of period
|
1,055,987 | 1,011,265 | ||||||
Cumulative effect of change in accounting principle, net of tax (See Note 3)
|
- | 507 | ||||||
Net earnings
|
52,659 | 32,756 | ||||||
Stockholder dividends
|
(1,271 | ) | (1,269 | ) | ||||
Balance at end of period
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1,107,375 | 1,043,259 | ||||||
Total stockholders' equity
|
$ | 1,215,115 | 1,098,524 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
2010
|
2009
|
|||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$ | 52,659 | 32,756 | |||||
Adjustments to reconcile net earnings to net cash from operating activities:
|
||||||||
Universal life and annuity contract interest
|
167,423 | 173,525 | ||||||
Surrender charges and other policy revenues
|
(28,569 | ) | (45,205 | ) | ||||
Realized gains (losses) on investments
|
(1,294 | ) | 5,122 | |||||
Accrual and amortization of investment income
|
(1,565 | ) | (3,385 | ) | ||||
Depreciation and amortization
|
3,475 | (335 | ) | |||||
Decrease (increase) in value of index options
|
63,860 | (61,896 | ) | |||||
Increase in deferred policy acquisition and sales inducement costs
|
(77,107 | ) | (20,511 | ) | ||||
Increase in accrued investment income
|
(9,283 | ) | (7,133 | ) | ||||
Increase in other assets
|
(14,268 | ) | (8,457 | ) | ||||
Increase (decrease) in liabilities for future policy benefits
|
26,109 | (2,344 | ) | |||||
Increase in other policyholder liabilities
|
8,104 | 28,201 | ||||||
Decrease in Federal income taxes
|
(10,184 | ) | (7,159 | ) | ||||
Increase in other liabilities
|
554 | 37,213 | ||||||
Other, net
|
(522 | ) | 5 | |||||
Net cash provided by operating activities
|
179,392 | 120,397 | ||||||
Cash flows from investing activities:
|
||||||||
Proceeds from sales of:
|
||||||||
Securities available for sale
|
28,778 | 15,612 | ||||||
Other investments
|
3,544 | 1,118 | ||||||
Proceeds from maturities and redemptions of:
|
||||||||
Securities held to maturity
|
534,123 | 757,842 | ||||||
Securities available for sale
|
53,767 | 75,592 | ||||||
Index options
|
31,302 | 38,131 | ||||||
Purchases of:
|
||||||||
Securities held to maturity
|
(1,137,958 | ) | (953,502 | ) | ||||
Securities available for sale
|
(292,976 | ) | (220,912 | ) | ||||
Other investments
|
(41,765 | ) | (51,299 | ) | ||||
Principal payments on mortgage loans
|
17,352 | 6,676 | ||||||
Cost of mortgage loans acquired
|
(52,882 | ) | (6,049 | ) | ||||
(Increase) decrease in policy loans
|
(255 | ) | 3,361 | |||||
Net cash used in investing activities
|
(856,970 | ) | (333,430 | ) |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
|
||||||||
For the Nine Months Ended September 30, 2010 and 2009
|
||||||||
(Unaudited)
|
||||||||
(In thousands)
|
||||||||
2010
|
2009
|
|||||||
Cash flows from financing activities:
|
||||||||
Deposits to account balances for universal life and annuity contracts
|
$ | 1,060,960 | 611,163 | |||||
Return of account balances on universal life and annuity contracts
|
(463,191 | ) | (430,243 | ) | ||||
Issuance of common stock under stock option plan
|
277 | - | ||||||
Net cash provided by financing activities
|
598,046 | 180,920 | ||||||
Effect of foreign exchange
|
(137 | ) | (14 | ) | ||||
Net decrease in cash and short-term investments
|
(79,669 | ) | (32,127 | ) | ||||
Cash and short-term investments at beginning of period
|
108,866 | 67,796 | ||||||
Cash and short-term investments at end of period
|
$ | 29,197 | 35,669 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 30 | 30 | |||||
Income taxes
|
35,600 | 22,757 |
Three Months Ended September 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||
(In thousands except per share amounts)
|
||||||||||||||||
Numerator for Basic and
|
||||||||||||||||
Diluted Earnings (Loss) Per Share:
|
||||||||||||||||
Net income (loss)
|
$ | 13,439 | (1,114 | ) | ||||||||||||
Dividends - Class A shares
|
(1,235 | ) | (1,233 | ) | ||||||||||||
Dividends - Class B shares
|
(36 | ) | (36 | ) | ||||||||||||
Undistributed income (loss)
|
$ | 12,168 | (2,383 | ) | ||||||||||||
Allocation of net income (loss):
|
||||||||||||||||
Dividends
|
$ | 1,235 | 36 | 1,233 | 36 | |||||||||||
Allocation of undistributed income (loss)
|
11,823 | 345 | (2,315 | ) | (68 | ) | ||||||||||
Net income (loss)
|
$ | 13,058 | 381 | (1,082 | ) | (32 | ) | |||||||||
Denominator:
|
||||||||||||||||
Basic earnings per share - weighted-average shares
|
3,427 | 200 | 3,426 | 200 | ||||||||||||
Effect of dilutive stock options
|
5 | - | - | - | ||||||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions
|
3,432 | 200 | 3,426 | 200 | ||||||||||||
Basic Earnings (Loss) Per Share
|
$ | 3.81 | 1.90 | (0.32 | ) | (0.16 | ) | |||||||||
Diluted Earnings (Loss) Per Share
|
$ | 3.81 | 1.90 | (0.32 | ) | (0.16 | ) |
Nine Months Ended September 30,
|
||||||||||||||||
2010
|
2009
|
|||||||||||||||
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||
(In thousands except per share amounts)
|
||||||||||||||||
Numerator for Basic and
|
||||||||||||||||
Diluted Earnings Per Share:
|
||||||||||||||||
Net income
|
$ | 52,659 | 32,756 | |||||||||||||
Dividends - Class A shares
|
(1,235 | ) | (1,233 | ) | ||||||||||||
Dividends - Class B shares
|
(36 | ) | (36 | ) | ||||||||||||
Undistributed income
|
$ | 51,388 | 31,487 | |||||||||||||
Allocation of net income:
|
||||||||||||||||
Dividends
|
$ | 1,235 | 36 | 1,233 | 36 | |||||||||||
Allocation of undistributed income
|
49,931 | 1,457 | 30,594 | 893 | ||||||||||||
Net income
|
$ | 51,166 | 1,493 | 31,827 | 929 | |||||||||||
Denominator:
|
||||||||||||||||
Basic earnings per share - weighted-average shares
|
3,426 | 200 | 3,426 | 200 | ||||||||||||
Effect of dilutive stock options
|
11 | - | 4 | - | ||||||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions
|
3,437 | 200 | 3,430 | 200 | ||||||||||||
Basic Earnings Per Share
|
$ | 14.93 | 7.46 | 9.29 | 4.65 | |||||||||||
Diluted Earnings Per Share
|
$ | 14.89 | 7.46 | 9.28 | 4.65 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Service cost
|
$ | - | - | - | - | |||||||||||
Interest cost
|
259 | 243 | 776 | 767 | ||||||||||||
Expected return on plan assets
|
(259 | ) | (222 | ) | (777 | ) | (667 | ) | ||||||||
Amortization of prior service cost
|
1 | 1 | 3 | 3 | ||||||||||||
Amortization of net loss
|
125 | 148 | 374 | 445 | ||||||||||||
Net periodic benefit cost
|
$ | 126 | 170 | 376 | 548 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Service cost
|
$ | 13 | 38 | 39 | 112 | |||||||||||
Interest cost
|
266 | 308 | 798 | 925 | ||||||||||||
Amortization of prior service cost
|
129 | 260 | 387 | 780 | ||||||||||||
Amortization of net loss
|
164 | 197 | 493 | 593 | ||||||||||||
Net periodic benefit cost
|
$ | 572 | 803 | 1,717 | 2,410 |
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
(In thousands)
|
||||||||||||||||
Interest cost
|
$ | 34 | 33 | 103 | 98 | |||||||||||
Amortization of prior service cost
|
26 | 25 | 77 | 77 | ||||||||||||
Net periodic benefit cost
|
$ | 60 | 58 | 180 | 175 |
Selected Segment Information:
|
||||||||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
September 30, 2010:
|
||||||||||||||||||||
Selected Balance Sheet Items:
|
||||||||||||||||||||
Deferred policy acquisition
|
||||||||||||||||||||
costs and sales inducements
|
$ | 41,811 | 206,620 | 504,973 | - | 753,404 | ||||||||||||||
Total segment assets
|
393,549 | 971,496 | 6,802,612 | 217,028 | 8,384,685 | |||||||||||||||
Future policy benefits
|
325,915 | 689,807 | 5,868,845 | - | 6,884,567 | |||||||||||||||
Other policyholder liabilities
|
11,816 | 18,064 | 107,155 | - | 137,035 | |||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30, 2010:
|
||||||||||||||||||||
Condensed Income Statements:
|
||||||||||||||||||||
Premiums and contract
|
||||||||||||||||||||
revenues
|
$ | 6,547 | 25,070 | 5,242 | - | 36,859 | ||||||||||||||
Net investment income
|
2,296 | 12,431 | 86,329 | 5,549 | 106,605 | |||||||||||||||
Other income (loss)
|
(9 | ) | 57 | 494 | 5,533 | 6,075 | ||||||||||||||
Total revenues
|
8,834 | 37,558 | 92,065 | 11,082 | 149,539 | |||||||||||||||
Life and other policy benefits
|
3,719 | 2,151 | 7,465 | - | 13,335 | |||||||||||||||
Amortization of deferred
|
||||||||||||||||||||
acquisition costs
|
2,881 | 9,702 | 20,025 | - | 32,608 | |||||||||||||||
Universal life and annuity
|
||||||||||||||||||||
contract interest
|
2,965 | 9,440 | 74,387 | - | 86,792 | |||||||||||||||
Other operating expenses
|
1,937 | 2,745 | (10,961 | ) | 4,098 | (2,181 | ) | |||||||||||||
Federal income taxes (benefit)
|
(1,030 | ) | 5,258 | 1,648 | 756 | 6,632 | ||||||||||||||
Total expenses
|
10,472 | 29,296 | 92,564 | 4,854 | 137,186 | |||||||||||||||
Segment earnings (loss)
|
$ | (1,638 | ) | 8,262 | (499 | ) | 6,228 | 12,353 | ||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Nine Months Ended
|
||||||||||||||||||||
September 30, 2010:
|
||||||||||||||||||||
Condensed Income Statements:
|
||||||||||||||||||||
Premiums and contract
|
||||||||||||||||||||
revenues
|
$ | 20,596 | 73,862 | 14,450 | - | 108,908 | ||||||||||||||
Net investment income
|
11,798 | 25,550 | 212,737 | 11,655 | 261,740 | |||||||||||||||
Other income
|
206 | 350 | 2,953 | 16,885 | 20,394 | |||||||||||||||
Total revenues
|
32,600 | 99,762 | 230,140 | 28,540 | 391,042 | |||||||||||||||
Life and other policy benefits
|
12,014 | 17,385 | 10,742 | - | 40,141 | |||||||||||||||
Amortization of deferred
|
||||||||||||||||||||
acquisition costs
|
8,649 | 18,694 | 47,271 | - | 74,614 | |||||||||||||||
Universal life and annuity
|
||||||||||||||||||||
contract interest
|
8,299 | 21,789 | 137,335 | - | 167,423 | |||||||||||||||
Other operating expenses
|
8,268 | 13,966 | (2,512 | ) | 12,501 | 32,223 | ||||||||||||||
Federal income taxes (benefit)
|
(1,621 | ) | 9,775 | 13,056 | 3,613 | 24,823 | ||||||||||||||
Total expenses
|
35,609 | 81,609 | 205,892 | 16,114 | 339,224 | |||||||||||||||
Segment earnings (loss)
|
$ | (3,009 | ) | 18,153 | 24,248 | 12,426 | 51,818 |
Selected Segment Information:
|
||||||||||||||||||||
Domestic
|
International
|
|||||||||||||||||||
Life
|
Life
|
All
|
||||||||||||||||||
Insurance
|
Insurance
|
Annuities
|
Others
|
Totals
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
September 30, 2009:
|
||||||||||||||||||||
Selected Balance Sheet Items:
|
||||||||||||||||||||
Deferred policy acquisition
|
||||||||||||||||||||
costs and sales inducements
|
$ | 59,722 | 202,510 | 479,028 | - | 741,260 | ||||||||||||||
Total segment assets
|
397,154 | 1,019,901 | 5,698,414 | 157,769 | 7,273,238 | |||||||||||||||
Future policy benefits
|
321,157 | 626,283 | 4,952,349 | - | 5,899,789 | |||||||||||||||
Other policyholder liabilities
|
12,128 | 20,424 | 97,219 | - | 129,771 | |||||||||||||||
Three Months Ended
|
||||||||||||||||||||
September 30, 2009:
|
||||||||||||||||||||
Condensed Income Statements:
|
||||||||||||||||||||
Premiums and contract
|
||||||||||||||||||||
revenues
|
$ | 8,166 | 25,706 | 7,518 | - | 41,390 | ||||||||||||||
Net investment income (loss)
|
(364 | ) | 18,362 | 91,072 | 7,206 | 116,276 | ||||||||||||||
Other income
|
2 | 17 | 1,647 | 3,420 | 5,086 | |||||||||||||||
Total revenues
|
7,804 | 44,085 | 100,237 | 10,626 | 162,752 | |||||||||||||||
Life and other policy benefits
|
8,233 | (1,141 | ) | 12,873 | - | 19,965 | ||||||||||||||
Amortization of deferred
|
||||||||||||||||||||
acquisition costs
|
1,136 | 10,495 | 16,805 | - | 28,436 | |||||||||||||||
Universal life and annuity
|
||||||||||||||||||||
contract interest
|
2,244 | 17,646 | 60,718 | - | 80,608 | |||||||||||||||
Other operating expenses
|
4,071 | 5,935 | 22,391 |