UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM 10-Q | |
R 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: 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) |
TABLE OF CONTENTS | |
Page | |
June 30, 2012 (Unaudited) and December 31, 2011 | |
For the Three Months Ended June 30, 2012 and 2011 (Unaudited) | |
For the Six Months Ended June 30, 2011 and 2010 (Unaudited) | |
For the Three Months Ended June 30, 2012 and 2011 (Unaudited) | |
For the Six Months Ended June 30, 2011 and 2010 (Unaudited) | |
For the Three Months Ended June 30, 2012 and 2011 (Unaudited) | |
For the Six Months Ended June 30, 2012 and 2011 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2012 | December 31, 2011 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $6,245,687 and $6,082,330) | $ | 5,738,777 | 5,641,909 | |||
Securities available for sale, at fair value (cost: $2,530,815 and $2,422,650) | 2,754,759 | 2,624,953 | ||||
Mortgage loans, net of allowance for possible losses ($0 and $4,571) | 132,614 | 157,460 | ||||
Policy loans | 74,369 | 74,967 | ||||
Derivatives, index options | 65,555 | 30,844 | ||||
Other long-term investments | 43,467 | 34,472 | ||||
Total investments | 8,809,541 | 8,564,605 | ||||
Cash and short-term investments | 111,264 | 119,290 | ||||
Deferred policy acquisition costs | 708,220 | 722,542 | ||||
Deferred sales inducements | 152,360 | 155,753 | ||||
Accrued investment income | 90,176 | 87,875 | ||||
Federal income tax receivable | — | — | ||||
Other assets | 83,900 | 77,934 | ||||
Total assets | $ | 9,955,461 | 9,727,999 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2012 | December 31, 2011 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 8,178,279 | 8,023,798 | |||
Traditional life and annuity contracts | 138,452 | 139,657 | ||||
Other policyholder liabilities | 154,105 | 151,308 | ||||
Deferred Federal income tax liability | 44,023 | 46,481 | ||||
Federal income tax payable | 1,462 | 5,962 | ||||
Other liabilities | 107,819 | 84,008 | ||||
Total liabilities | 8,624,140 | 8,451,214 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,434,763 and 3,434,766 issued and outstanding in 2012 and 2011 | 3,435 | 3,435 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2012 and 2011 | 200 | 200 | ||||
Additional paid-in capital | 37,767 | 37,767 | ||||
Accumulated other comprehensive income | 64,725 | 53,176 | ||||
Retained earnings | 1,225,194 | 1,182,207 | ||||
Total stockholders’ equity | 1,331,321 | 1,276,785 | ||||
Total liabilities and stockholders' equity | $ | 9,955,461 | 9,727,999 |
2012 | 2011 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 36,653 | 32,632 | |||
Traditional life and annuity contract premiums | 4,904 | 4,607 | ||||
Net investment income | 78,181 | 97,724 | ||||
Other revenues | 5,866 | 4,698 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) losses | (185 | ) | — | |||
Portion of OTTI losses recognized in other comprehensive income | (235 | ) | — | |||
Net OTTI losses recognized in earnings | (420 | ) | — | |||
Other net investment gains (losses) | 2,425 | 490 | ||||
Total net realized investment gains (losses) | 2,005 | 490 | ||||
Total revenues | 127,609 | 140,151 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 13,857 | 9,598 | ||||
Amortization of deferred policy acquisition costs | 31,349 | 38,848 | ||||
Universal life and annuity contract interest | 26,004 | 53,232 | ||||
Other operating expenses | 22,452 | 19,060 | ||||
Total benefits and expenses | 93,662 | 120,738 | ||||
Earnings before Federal income taxes | 33,947 | 19,413 | ||||
Federal income taxes | 10,701 | 5,623 | ||||
Net earnings | $ | 23,246 | 13,790 | |||
Basic earnings per share: | ||||||
Class A | $ | 6.58 | 3.90 | |||
Class B | $ | 3.29 | 1.95 | |||
Diluted earnings per share: | ||||||
Class A | $ | 6.58 | 3.90 | |||
Class B | $ | 3.29 | 1.95 |
2012 | 2011 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 72,852 | 62,464 | |||
Traditional life and annuity premiums | 8,987 | 8,629 | ||||
Net investment income | 227,739 | 231,239 | ||||
Other revenues | 11,521 | 14,604 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) losses | (462 | ) | — | |||
Portion of OTTI losses recognized in other comprehensive income | (157 | ) | — | |||
Net OTTI losses recognized in earnings | (619 | ) | — | |||
Other net investment gains (losses) | 3,791 | 3,582 | ||||
Total net realized investment gains (losses) | 3,172 | 3,582 | ||||
Total revenues | 324,271 | 320,518 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 27,535 | 21,814 | ||||
Amortization of deferred policy acquisition costs | 63,060 | 66,337 | ||||
Universal life and annuity contract interest | 127,547 | 145,381 | ||||
Other operating expenses | 42,470 | 39,778 | ||||
Total benefits and expenses | 260,612 | 273,310 | ||||
Earnings before Federal income taxes | 63,659 | 47,208 | ||||
Federal income taxes | 20,672 | 15,207 | ||||
Net earnings | $ | 42,987 | 32,001 | |||
Basic earnings per share: | ||||||
Class A | $ | 12.16 | 9.06 | |||
Class B | $ | 6.08 | 4.53 | |||
Diluted earnings per share: | ||||||
Class A | $ | 12.16 | 9.04 | |||
Class B | $ | 6.08 | 4.53 |
2012 | 2011 | |||||
Net earnings | $ | 23,246 | 13,790 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains arising during period | 5,624 | 5,769 | ||||
Net unrealized liquidity gains (losses) | 161 | 149 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,658 | ) | (194 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | 14 | ||||
Net unrealized gains (losses) on securities | 4,127 | 5,738 | ||||
Foreign currency translation adjustments | (101 | ) | (59 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain | 225 | 292 | ||||
Other comprehensive income | 4,251 | 5,971 | ||||
Comprehensive income | $ | 27,497 | 19,761 |
2012 | 2011 | |||||
Net earnings | $ | 42,987 | 32,001 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains arising during period | 13,376 | 5,775 | ||||
Net unrealized liquidity gains (losses) | 137 | 350 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,698 | ) | (2,079 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | 1 | 7 | ||||
Net unrealized gains (losses) on securities | 10,816 | 4,053 | ||||
Foreign currency translation adjustments | 285 | (134 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain | 448 | 582 | ||||
Other comprehensive income | 11,549 | 4,501 | ||||
Comprehensive income | $ | 54,536 | 36,502 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,635 | 3,629 | ||||
Shares exercised under stock option plan | — | 6 | |||||
Balance at end of period | 3,635 | 3,635 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 37,767 | 37,140 | |||||
Shares exercised under stock option plan | — | 1,211 | |||||
Balance at end of period | 37,767 | 38,351 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 69,116 | 62,499 | |||||
Change in unrealized gains during period, net of tax | 10,679 | 3,703 | |||||
Balance at end of period | 79,795 | 66,202 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (2,320 | ) | (2,713 | ) | |||
Cumulative effect of change in accounting principal | — | — | |||||
Amortization | 15 | 165 | |||||
Other-than-temporary impairments, non-credit, net of tax | 92 | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | 30 | 185 | |||||
Balance at end of period | (2,183 | ) | (2,363 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (608 | ) | — | ||||
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 | (608 | ) | — | ||||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) For the Six Months Ended June 30, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,368 | 2,585 | |||||
Change in translation adjustments during period | 285 | (134 | ) | ||||
Balance at end of period | 2,653 | 2,451 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (15,380 | ) | (11,963 | ) | |||
Amortization of net prior service cost and net gain, net of tax | 448 | 582 | |||||
Balance at end of period | (14,932 | ) | (11,381 | ) | |||
Accumulated other comprehensive income at end of period | 64,725 | 54,909 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,182,207 | 1,127,614 | |||||
Net earnings | 42,987 | 32,001 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,225,194 | 1,159,615 | |||||
Total stockholders' equity | $ | 1,331,321 | $ | 1,256,510 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 42,987 | 32,001 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 127,547 | 145,381 | |||||
Surrender charges and other policy revenues | (7,009 | ) | (15,280 | ) | |||
Realized (gains) losses on investments | (7,743 | ) | (3,582 | ) | |||
Accrual and amortization of investment income | (1,400 | ) | (1,369 | ) | |||
Depreciation and amortization | 1,113 | 390 | |||||
(Increase) decrease in value of index options | (9,959 | ) | (22,750 | ) | |||
Decrease (increase) in deferred policy acquisition and sales inducement costs | 3,664 | (26,674 | ) | ||||
Increase in accrued investment income | (2,301 | ) | (5,967 | ) | |||
Increase in other assets | (2,232 | ) | (2,756 | ) | |||
Increase in liabilities for future policy benefits | 3,602 | 7,775 | |||||
(Decrease) increase in other policyholder liabilities | 2,797 | (5,774 | ) | ||||
Decrease in Federal income taxes | (12,757 | ) | (8,555 | ) | |||
(Decrease) increase in other liabilities | 3,385 | (2,390 | ) | ||||
Other, net | 128 | — | |||||
Net cash provided by operating activities | 141,822 | 90,450 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities available for sale | (367 | ) | 11,196 | ||||
Other investments | 3,492 | 3,348 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 696,502 | 221,449 | |||||
Securities available for sale | 177,601 | 52,482 | |||||
Index options | 941 | 34,615 | |||||
Purchases of: | |||||||
Securities held to maturity | (785,820 | ) | (530,454 | ) | |||
Securities available for sale | (271,552 | ) | (143,859 | ) | |||
Index options | (26,153 | ) | (29,279 | ) | |||
Other investments | (4,263 | ) | (7,779 | ) | |||
Principal payments on mortgage loans | 38,154 | 8,961 | |||||
Cost of mortgage loans acquired | (8,403 | ) | (28,476 | ) | |||
Decrease (increase) in policy loans | 598 | 2,705 | |||||
Other, net | — | — | |||||
Net cash used in investing activities | (179,270 | ) | (405,091 | ) | |||
Continued on Next Page |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED For the Six Months Ended June 30, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 454,963 | 719,078 | |||||
Return of account balances on universal life and annuity contracts | (425,827 | ) | (405,185 | ) | |||
Issuance of common stock under stock option plan | — | 1,217 | |||||
Net cash provided by financing activities | 29,136 | 315,110 | |||||
Effect of foreign exchange | 286 | (134 | ) | ||||
Net increase (decrease) in cash and short-term investments | (8,026 | ) | 335 | ||||
Cash and short-term investments at beginning of period | 119,290 | 80,332 | |||||
Cash and short-term investments at end of period | $ | 111,264 | $ | 80,667 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 20 | $ | 10 | |||
Income taxes | $ | 33,495 | $ | 24,211 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | 158 | $ | 5,225 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2012 | 2011 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 23,246 | 13,790 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 23,246 | 13,790 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 22,589 | 658 | 13,400 | 390 | ||||||||
Net income | $ | 22,589 | 658 | 13,400 | 390 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,434 | 200 | ||||||||
Effect of dilutive stock options | — | — | 3 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,435 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 6.58 | 3.29 | 3.90 | 1.95 | |||||||
Diluted Earnings Per Share | $ | 6.58 | 3.29 | 3.90 | 1.95 |
Six Months Ended June 30, | ||||||||||||
2012 | 2011 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 42,987 | 32,001 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 42,987 | 32,001 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 41,771 | 1,216 | 31,096 | 905 | ||||||||
Net income | $ | 41,771 | 1,216 | 31,096 | 905 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,432 | 200 | ||||||||
Effect of dilutive stock options | — | — | 6 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,435 | 200 | 3,438 | 200 | ||||||||
Basic Earnings Per Share | $ | 12.16 | 6.08 | 9.06 | 4.53 | |||||||
Diluted Earnings Per Share | $ | 12.16 | 6.08 | 9.04 | 4.53 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 44 | — | 87 | — | |||||||
Interest cost | 232 | 258 | 464 | 517 | ||||||||
Expected return on plan assets | (267 | ) | (259 | ) | (535 | ) | (518 | ) | ||||
Amortization of prior service cost | 1 | 1 | 2 | 2 | ||||||||
Amortization of net loss | 196 | 126 | 393 | 250 | ||||||||
Net periodic benefit cost | $ | 206 | 126 | 411 | 251 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 42 | 13 | 84 | 26 | |||||||
Interest cost | 228 | 266 | 456 | 532 | ||||||||
Amortization of prior service cost | 15 | 129 | 30 | 258 | ||||||||
Amortization of net loss | 286 | 165 | 571 | 329 | ||||||||
Net periodic benefit cost | $ | 571 | 573 | 1,141 | 1,145 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 32 | 38 | 65 | 76 | |||||||
Amortization of prior service cost | $ | 26 | 29 | 52 | 57 | |||||||
Amortization of net loss | 10 | — | 20 | — | ||||||||
Net periodic benefit cost | $ | 68 | 67 | 137 | 133 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2012 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 35,681 | 229,034 | 595,865 | — | 860,580 | |||||||||
Total segment assets | 430,613 | 1,062,917 | 8,149,053 | 228,674 | 9,871,257 | ||||||||||
Future policy benefits | 367,968 | 795,992 | 7,152,771 | — | 8,316,731 | ||||||||||
Other policyholder liabilities | 11,899 | 13,710 | 128,496 | 154,105 | |||||||||||
Three Months Ended | |||||||||||||||
June 30, 2012 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 4,280 | 32,115 | 5,162 | — | 41,557 | |||||||||
Net investment income | 3,991 | 7,315 | 61,875 | 5,000 | 78,181 | ||||||||||
Other revenues | 45 | 314 | (260 | ) | 5,767 | 5,866 | |||||||||
Total revenues | 8,316 | 39,744 | 66,777 | 10,767 | 125,604 | ||||||||||
Life and other policy benefits | 1,620 | 6,315 | 5,922 | — | 13,857 | ||||||||||
Amortization of deferred acquisition costs | 2,068 | 7,757 | 21,524 | — | 31,349 | ||||||||||
Universal life and annuity contract interest | 1,230 | 6,431 | 18,343 | — | 26,004 | ||||||||||
Other operating expenses | 2,578 | 6,718 | 7,744 | 5,412 | 22,452 | ||||||||||
Federal income taxes (benefit) | 261 | 3,943 | 4,110 | 1,685 | 9,999 | ||||||||||
Total expenses | 7,757 | 31,164 | 57,643 | 7,097 | 103,661 | ||||||||||
Segment earnings (loss) | $ | 559 | 8,580 | 9,134 | 3,670 | 21,943 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six Months Ended | |||||||||||||||
June 30, 2012 | |||||||||||||||
Condensed Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 14,819 | 55,546 | 11,474 | — | 81,839 | |||||||||
Net investment income | 9,809 | 22,712 | 186,264 | 8,954 | 227,739 | ||||||||||
Other revenues | 52 | 346 | (199 | ) | 11,322 | 11,521 | |||||||||
Total revenues | 24,680 | 78,604 | 197,539 | 20,276 | 321,099 | ||||||||||
Life and other policy benefits | 3,268 | 9,795 | 14,472 | — | 27,535 | ||||||||||
Amortization of deferred acquisition costs | 4,459 | 13,365 | 45,236 | — | 63,060 | ||||||||||
Universal life and annuity contract interest | 8,443 | 21,243 | 97,861 | — | 127,547 | ||||||||||
Other operating expenses | 7,346 | 12,536 | 11,772 | 10,816 | 42,470 | ||||||||||
Federal income taxes | 376 | 7,006 | 9,120 | 3,060 | 19,562 | ||||||||||
Total expenses | 23,892 | 63,945 | 178,461 | 13,876 | 280,174 | ||||||||||
Segment earnings | $ | 788 | 14,659 | 19,078 | 6,400 | 40,925 |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2011 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 41,113 | 227,166 | 580,224 | — | 848,503 | |||||||||
Total segment assets | 398,712 | 1,035,273 | 7,555,300 | 219,328 | 9,208,613 | ||||||||||
Future policy benefits | 331,037 | 747,058 | 6,621,456 | — | 7,699,551 | ||||||||||
Other policyholder liabilities | 12,206 | 16,999 | 116,548 | — | 145,753 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2011 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 6,617 | 25,616 | 5,006 | — | 37,239 | |||||||||
Net investment income | 4,485 | 9,532 | 78,830 | 4,877 | 97,724 | ||||||||||
Other revenues | (2 | ) | 342 | (1,070 | ) | 5,428 | 4,698 | ||||||||
Total revenues | 11,100 | 35,490 | 82,766 | 10,305 | 139,661 | ||||||||||
Life and other policy benefits | (810 | ) | 4,199 | 6,209 | — | 9,598 | |||||||||
Amortization of deferred acquisition costs | 2,771 | 7,927 | 28,150 | — | 38,848 | ||||||||||
Universal life and annuity contract interest | 1,849 | 8,507 | 42,876 | — | 53,232 | ||||||||||
Other operating expenses | 3,361 | 4,273 | 6,320 | 5,106 | 19,060 | ||||||||||
Federal income taxes (benefit) | 1,339 | 3,273 | (751 | ) | 1,590 | 5,451 | |||||||||
Total expenses | 8,510 | 28,179 | 82,804 | 6,696 | 126,189 | ||||||||||
Segment earnings (loss) | $ | 2,590 | 7,311 | (38 | ) | 3,609 | 13,472 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six Months Ended | |||||||||||||||
June 30, 2011 | |||||||||||||||
Condensed Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 12,649 | 50,176 | 8,268 | — | 71,093 | |||||||||
Net investment income | 9,481 | 22,553 | 191,942 | 7,263 | 231,239 | ||||||||||
Other revenues | 5 | 366 | 2,991 | 11,242 | 14,604 | ||||||||||
Total revenues | 22,135 | 73,095 | 203,201 | 18,505 | 316,936 | ||||||||||
Life and other policy benefits | 4,424 | 9,161 | 8,229 | — | 21,814 | ||||||||||
Amortization of deferred acquisition costs | 5,654 | 16,125 | 44,558 | — | 66,337 | ||||||||||
Universal life and annuity contract interest | 4,487 | 21,426 | 119,468 | — | 145,381 | ||||||||||
Other operating expenses | 7,027 | 11,199 | 11,223 | 10,329 | 39,778 | ||||||||||
Federal income taxes (benefit) | 174 | 4,856 | 6,308 | 2,615 | 13,953 | ||||||||||
Total expenses | 21,766 | 62,767 | 189,786 | 12,944 | 287,263 | ||||||||||
Segment earnings (loss) | $ | 369 | 10,328 | 13,415 | 5,561 | 29,673 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 41,557 | 37,239 | 81,839 | 71,093 | |||||||
Net investment income | 78,181 | 97,724 | 227,739 | 231,239 | ||||||||
Other revenues | 5,866 | 4,698 | 11,521 | 14,604 | ||||||||
Realized gains (losses) on investments | 2,005 | 490 | 3,172 | 3,582 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 127,609 | 140,151 | 324,271 | 320,518 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 9,999 | 5,451 | 19,562 | 13,953 | |||||||
Taxes on realized gains (losses) on investments | 702 | 172 | 1,110 | 1,254 | ||||||||
Total condensed consolidated Federal income taxes | $ | 10,701 | 5,623 | 20,672 | 15,207 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Net Earnings: | ||||||||||||
Total segment earnings | $ | 21,943 | 13,472 | 40,925 | 29,673 | |||||||
Realized gains (losses) on investments, net of taxes | 1,303 | 318 | 2,062 | 2,328 | ||||||||
Total condensed consolidated net earnings | $ | 23,246 | 13,790 | 42,987 | 32,001 |
June 30, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Assets: | ||||||
Total segment assets | $ | 9,871,257 | 9,208,613 | |||
Other unallocated assets | 84,204 | 53,817 | ||||