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 | |
September 30, 2012 (Unaudited) and December 31, 2011 | |
For the Three Months Ended September 30, 2012 and 2011 (Unaudited) | |
For the Nine Months Ended September 30, 2012 and 2011 (Unaudited) | |
For the Three Months Ended September 30, 2012 and 2011 (Unaudited) | |
For the Nine Months Ended September 30, 2012 and 2011 (Unaudited) | |
For the Nine Months Ended September 30, 2012 and 2011 (Unaudited) | |
For the Nine Months Ended September 30, 2012 and 2011 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | September 30, 2012 | December 31, 2011 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $6,414,860 and $6,082,330) | $ | 5,849,916 | 5,641,909 | |||
Securities available for sale, at fair value (cost: $2,560,225 and $2,422,650) | 2,821,367 | 2,624,953 | ||||
Mortgage loans, net of allowance for possible losses ($0 and $4,571) | 135,776 | 157,460 | ||||
Policy loans | 74,138 | 74,967 | ||||
Derivatives, index options | 87,833 | 30,844 | ||||
Other long-term investments | 41,346 | 34,472 | ||||
Total investments | 9,010,376 | 8,564,605 | ||||
Cash and short-term investments | 127,945 | 119,290 | ||||
Deferred policy acquisition costs | 698,283 | 722,542 | ||||
Deferred sales inducements | 150,939 | 155,753 | ||||
Accrued investment income | 93,727 | 87,875 | ||||
Federal income tax receivable | 1,368 | — | ||||
Other assets | 83,456 | 77,934 | ||||
Total assets | $ | 10,166,094 | 9,727,999 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | September 30, 2012 | December 31, 2011 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 8,329,743 | 8,023,798 | |||
Traditional life reserves | 137,857 | 139,657 | ||||
Other policyholder liabilities | 152,725 | 151,308 | ||||
Deferred Federal income tax liability | 52,795 | 46,481 | ||||
Federal income tax payable | — | 5,962 | ||||
Other liabilities | 124,578 | 84,008 | ||||
Total liabilities | 8,797,698 | 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 | 78,751 | 53,176 | ||||
Retained earnings | 1,248,243 | 1,182,207 | ||||
Total stockholders’ equity | 1,368,396 | 1,276,785 | ||||
Total liabilities and stockholders' equity | $ | 10,166,094 | 9,727,999 |
2012 | 2011 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 36,924 | 34,550 | |||
Traditional life premiums | 4,124 | 4,685 | ||||
Net investment income | 139,074 | 44,538 | ||||
Other revenues | 5,923 | 5,643 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 1,250 | (1,741 | ) | |||
Portion of OTTI (gains) losses recognized in other comprehensive income | (1,761 | ) | 1,719 | |||
Net OTTI losses recognized in earnings | (511 | ) | (22 | ) | ||
Other net investment gains (losses) | 5,451 | 2,960 | ||||
Total net realized investment gains (losses) | 4,940 | 2,938 | ||||
Total revenues | 190,985 | 92,354 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 12,323 | 12,363 | ||||
Amortization of deferred policy acquisition costs | 28,403 | 29,909 | ||||
Universal life and annuity contract interest | 89,386 | 1,873 | ||||
Other operating expenses | 22,143 | 18,948 | ||||
Total benefits and expenses | 152,255 | 63,093 | ||||
Earnings before Federal income taxes | 38,730 | 29,261 | ||||
Federal income taxes | 14,408 | 9,996 | ||||
Net earnings | $ | 24,322 | 19,265 | |||
Basic earnings per share: | ||||||
Class A | $ | 6.88 | 5.45 | |||
Class B | $ | 3.44 | 2.73 | |||
Diluted earnings per share: | ||||||
Class A | $ | 6.88 | 5.45 | |||
Class B | $ | 3.44 | 2.73 |
2012 | 2011 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 109,776 | 97,014 | |||
Traditional life premiums | 13,111 | 13,314 | ||||
Net investment income | 366,813 | 275,777 | ||||
Other revenues | 17,444 | 20,247 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 788 | (1,741 | ) | |||
Portion of OTTI (gains) losses recognized in other comprehensive income | (1,918 | ) | 1,719 | |||
Net OTTI losses recognized in earnings | (1,130 | ) | (22 | ) | ||
Other net investment gains (losses) | 9,242 | 6,542 | ||||
Total net realized investment gains (losses) | 8,112 | 6,520 | ||||
Total revenues | 515,256 | 412,872 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 39,858 | 34,177 | ||||
Amortization of deferred policy acquisition costs | 91,463 | 96,246 | ||||
Universal life and annuity contract interest | 216,933 | 147,254 | ||||
Other operating expenses | 64,613 | 58,727 | ||||
Total benefits and expenses | 412,867 | 336,404 | ||||
Earnings before Federal income taxes | 102,389 | 76,468 | ||||
Federal income taxes | 35,080 | 25,203 | ||||
Net earnings | $ | 67,309 | 51,265 | |||
Basic earnings per share: | ||||||
Class A | $ | 19.04 | 14.51 | |||
Class B | $ | 9.52 | 7.25 | |||
Diluted earnings per share: | ||||||
Class A | $ | 19.04 | 14.49 | |||
Class B | $ | 9.52 | 7.25 |
2012 | 2011 | |||||
Net earnings | $ | 24,322 | 19,265 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains arising during period | 15,202 | 5,543 | ||||
Net unrealized liquidity gains (losses) | (3 | ) | (498 | ) | ||
Reclassification adjustment for net amounts included in net earnings | (1,175 | ) | (2,069 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | (1 | ) | 11 | |||
Net unrealized gains (losses) on securities | 14,023 | 2,987 | ||||
Foreign currency translation adjustments | 22 | (21 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (19 | ) | 236 | |||
Other comprehensive income | 14,026 | 3,202 | ||||
Comprehensive income | $ | 38,348 | 22,467 |
2012 | 2011 | |||||
Net earnings | $ | 67,309 | 51,265 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains arising during period | 28,578 | 11,318 | ||||
Net unrealized liquidity gains (losses) | 134 | (148 | ) | |||
Reclassification adjustment for net amounts included in net earnings | (3,873 | ) | (4,148 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | 18 | ||||
Net unrealized gains (losses) on securities | 24,839 | 7,040 | ||||
Foreign currency translation adjustments | 307 | (155 | ) | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain | 429 | 819 | ||||
Other comprehensive income | 25,575 | 7,704 | ||||
Comprehensive income | $ | 92,884 | 58,969 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Nine Months Ended September 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 | — | 901 | |||||
Balance at end of period | 37,767 | 38,041 | |||||
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 | 24,705 | 7,188 | |||||
Balance at end of period | 93,821 | 69,687 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (2,320 | ) | (2,713 | ) | |||
Cumulative effect of change in accounting principle | — | — | |||||
Amortization | 21 | 163 | |||||
Other-than-temporary impairments, non-credit, net of tax | 316 | — | |||||
Additional credit loss on previously impaired securities | 360 | — | |||||
Change in shadow deferred policy acquisition costs | (178 | ) | 184 | ||||
Balance at end of period | (1,801 | ) | (2,366 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (608 | ) | — | ||||
Other-than-temporary impairments, non-credit, net of tax | — | (1,117 | ) | ||||
Change in shadow deferred policy acquisition costs | (955 | ) | 622 | ||||
Recoveries, net of tax | 570 | — | |||||
Balance at end of period | (993 | ) | (495 | ) | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) For the Nine Months Ended September 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 | 307 | (155 | ) | ||||
Balance at end of period | 2,675 | 2,430 | |||||
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 | 429 | 819 | |||||
Balance at end of period | (14,951 | ) | (11,144 | ) | |||
Accumulated other comprehensive income at end of period | 78,751 | 58,112 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,182,207 | 1,127,614 | |||||
Net earnings | 67,309 | 51,265 | |||||
Stockholder dividends | (1,273 | ) | (1,271 | ) | |||
Balance at end of period | 1,248,243 | 1,177,608 | |||||
Total stockholders' equity | $ | 1,368,396 | $ | 1,277,396 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 67,309 | 51,265 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 216,933 | 147,254 | |||||
Surrender charges and other policy revenues | (10,854 | ) | (1,340 | ) | |||
Realized (gains) losses on investments | (8,112 | ) | (6,520 | ) | |||
Accrual and amortization of investment income | (1,740 | ) | (2,140 | ) | |||
Depreciation and amortization | 4,246 | 4,019 | |||||
(Increase) decrease in value of index options | (42,328 | ) | 38,774 | ||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (3,604 | ) | (52,324 | ) | |||
(Increase) decrease in accrued investment income | (5,852 | ) | (10,052 | ) | |||
(Increase) decrease in other assets | (6,088 | ) | (6,015 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 8,335 | 17,250 | |||||
Increase (decrease) in other policyholder liabilities | 1,417 | (3,142 | ) | ||||
Increase (decrease) in Federal income taxes | (14,391 | ) | (4,353 | ) | |||
Increase (decrease) in other liabilities | 18,416 | (322 | ) | ||||
Other, net | — | — | |||||
Net cash provided by operating activities | 223,687 | 172,354 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities available for sale | 7,539 | 19,248 | |||||
Other investments | 8,646 | 4,732 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 1,021,666 | 375,016 | |||||
Securities available for sale | 252,464 | 89,379 | |||||
Index options | 25,225 | 73,980 | |||||
Purchases of: | |||||||
Securities held to maturity | (1,208,044 | ) | (884,205 | ) | |||
Securities available for sale | (388,228 | ) | (263,937 | ) | |||
Index options | (42,184 | ) | (50,239 | ) | |||
Other investments | (5,036 | ) | (10,361 | ) | |||
Principal payments on mortgage loans | 38,783 | 13,577 | |||||
Cost of mortgage loans acquired | (16,728 | ) | (33,918 | ) | |||
Decrease (increase) in policy loans | 829 | 4,225 | |||||
Other, net | (2 | ) | — | ||||
Net cash used in investing activities | (305,070 | ) | (662,503 | ) | |||
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, 2012 and 2011 (Unaudited) (In thousands) | |||||||
2012 | 2011 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 715,037 | 1,116,161 | |||||
Return of account balances on universal life and annuity contracts | (625,306 | ) | (615,196 | ) | |||
Issuance of common stock under stock option plan | — | 908 | |||||
Net cash provided by financing activities | 89,731 | 501,873 | |||||
Effect of foreign exchange | 307 | (154 | ) | ||||
Net increase (decrease) in cash and short-term investments | 8,655 | 11,570 | |||||
Cash and short-term investments at beginning of period | 119,290 | 80,332 | |||||
Cash and short-term investments at end of period | $ | 127,945 | $ | 91,902 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 30 | $ | 10 | |||
Income taxes | $ | 49,540 | $ | 30,209 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | 2,965 | $ | 12,386 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended September 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 | $ | 24,322 | 19,265 | |||||||||
Dividends - Class A shares | (1,237 | ) | (1,235 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 23,049 | 17,994 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,237 | 36 | 1,235 | 36 | |||||||
Allocation of undistributed income | 22,397 | 652 | 17,485 | 509 | ||||||||
Net income | $ | 23,634 | 688 | 18,720 | 545 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | — | — | 1 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,435 | 200 | 3,436 | 200 | ||||||||
Basic Earnings Per Share | $ | 6.88 | 3.44 | 5.45 | 2.73 | |||||||
Diluted Earnings Per Share | $ | 6.88 | 3.44 | 5.45 | 2.73 |
Nine Months Ended September 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 | $ | 67,309 | 51,265 | |||||||||
Dividends - Class A shares | (1,237 | ) | (1,235 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 66,036 | 49,994 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,237 | 36 | 1,235 | 36 | |||||||
Allocation of undistributed income | 64,168 | 1,868 | 48,580 | 1,414 | ||||||||
Net income | $ | 65,405 | 1,904 | 49,815 | 1,450 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,433 | 200 | ||||||||
Effect of dilutive stock options | — | — | 4 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,435 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 19.04 | 9.52 | 14.51 | 7.25 | |||||||
Diluted Earnings Per Share | $ | 19.04 | 9.52 | 14.49 | 7.25 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 44 | — | 131 | — | |||||||
Interest cost | 232 | 258 | 696 | 776 | ||||||||
Expected return on plan assets | (268 | ) | (259 | ) | (803 | ) | (777 | ) | ||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | ||||||||
Amortization of net loss | 196 | 126 | 589 | 374 | ||||||||
Net periodic benefit cost | $ | 205 | 126 | 616 | 376 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 42 | 9 | 126 | 36 | |||||||
Interest cost | 228 | 190 | 684 | 722 | ||||||||
Amortization of prior service cost | 14 | 92 | 44 | 350 | ||||||||
Amortization of net loss | 286 | 118 | 857 | 447 | ||||||||
Net periodic benefit cost | $ | 570 | 409 | 1,711 | 1,555 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 32 | 38 | 97 | 113 | |||||||
Amortization of prior service cost | 25 | 28 | 77 | 85 | ||||||||
Amortization of net loss | 11 | — | 31 | — | ||||||||
Net periodic benefit cost | $ | 68 | 66 | 205 | 198 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2012 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 38,052 | 224,814 | 586,356 | — | 849,222 | |||||||||
Total segment assets | 450,649 | 1,111,039 | 8,302,668 | 239,259 | 10,103,615 | ||||||||||
Future policy benefits | 380,752 | 821,178 | 7,265,670 | — | 8,467,600 | ||||||||||
Other policyholder liabilities | 13,401 | 11,536 | 127,788 | — | 152,725 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2012 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 7,680 | 28,453 | 4,915 | — | 41,048 | |||||||||
Net investment income | 6,037 | 12,255 | 115,781 | 5,001 | 139,074 | ||||||||||
Other revenues | (46 | ) | 32 | 213 | 5,724 | 5,923 | |||||||||
Total revenues | 13,671 | 40,740 | 120,909 | 10,725 | 186,045 | ||||||||||
Life and other policy benefits | 4,482 | 4,827 | 3,014 | — | 12,323 | ||||||||||
Amortization of deferred acquisition costs | 437 | 2,083 | 25,883 | — | 28,403 | ||||||||||
Universal life and annuity contract interest | 2,976 | 9,602 | 76,808 | — | 89,386 | ||||||||||
Other operating expenses | 3,313 | 7,069 | 7,332 | 4,429 | 22,143 | ||||||||||
Federal income taxes (benefit) | 865 | 6,271 | 3,215 | 2,328 | 12,679 | ||||||||||
Total expenses | 12,073 | 29,852 | 116,252 | 6,757 | 164,934 | ||||||||||
Segment earnings (loss) | $ | 1,598 | 10,888 | 4,657 | 3,968 | 21,111 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine Months Ended | |||||||||||||||
September 30, 2012 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 22,499 | 83,999 | 16,389 | — | 122,887 | |||||||||
Net investment income | 15,846 | 34,967 | 302,045 | 13,955 | 366,813 | ||||||||||
Other revenues | 6 | 378 | 14 | 17,046 | 17,444 | ||||||||||
Total revenues | 38,351 | 119,344 | 318,448 | 31,001 | 507,144 | ||||||||||
Life and other policy benefits | 7,750 | 14,622 | 17,486 | — | 39,858 | ||||||||||
Amortization of deferred acquisition costs | 4,896 | 15,448 | 71,119 | — | 91,463 | ||||||||||
Universal life and annuity contract interest | 11,419 | 30,845 | 174,669 | — | 216,933 | ||||||||||
Other operating expenses | 10,659 | 19,605 | 19,104 | 15,245 | 64,613 | ||||||||||
Federal income taxes (benefit) | 1,241 | 13,277 | 12,335 | 5,388 | 32,241 | ||||||||||
Total expenses | 35,965 | 93,797 | 294,713 | 20,633 | 445,108 | ||||||||||
Segment earnings (loss) | $ | 2,386 | 25,547 | 23,735 | 10,368 | 62,036 |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2011 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 40,676 | 229,656 | 596,216 | — | 866,548 | |||||||||
Total segment assets | 401,243 | 1,034,324 | 7,784,519 | 219,376 | 9,439,462 | ||||||||||
Future policy benefits | 335,100 | 744,862 | 6,831,949 | — | 7,911,911 | ||||||||||
Other policyholder liabilities | 13,883 | 17,567 | 116,934 | — | 148,384 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2011 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 8,345 | 25,375 | 5,515 | — | 39,235 | |||||||||
Net investment income | 1,655 | 3,253 | 33,940 | 5,690 | 44,538 | ||||||||||
Other revenues | 3 | (20 | ) | 152 | 5,508 | 5,643 | |||||||||
Total revenues | 10,003 | 28,608 | 39,607 | 11,198 | 89,416 | ||||||||||
Life and other policy benefits | 2,151 | 4,737 | 5,475 | — | 12,363 | ||||||||||
Amortization of deferred acquisition costs | 2,791 | 8,249 | 18,869 | — | 29,909 | ||||||||||
Universal life and annuity contract interest | 2,848 | 766 | (1,741 | ) | — | 1,873 | |||||||||
Other operating expenses | 2,426 | 4,353 | 7,059 | 5,110 | 18,948 | ||||||||||
Federal income taxes (benefit) | (66 | ) | 3,561 | 3,414 | 2,059 | 8,968 | |||||||||
Total expenses | 10,150 | 21,666 | 33,076 | 7,169 | 72,061 | ||||||||||
Segment earnings (loss) | $ | (147 | ) | 6,942 | 6,531 | 4,029 | 17,355 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine Months Ended | |||||||||||||||
September 30, 2011 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 20,994 | 75,551 | 13,783 | — | 110,328 | |||||||||
Net investment income | 11,136 | 25,806 | 225,882 | 12,953 | 275,777 | ||||||||||
Other revenues | 8 | 346 | 3,143 | 16,750 | 20,247 | ||||||||||
Total revenues | 32,138 | 101,703 | 242,808 | 29,703 | 406,352 | ||||||||||
Life and other policy benefits | 6,575 | 13,898 | 13,704 | — | 34,177 | ||||||||||
Amortization of deferred acquisition costs | 8,445 | 24,374 | 63,427 | — | 96,246 | ||||||||||
Universal life and annuity contract interest | 7,335 | 22,192 | 117,727 | — | 147,254 | ||||||||||
Other operating expenses | 9,453 | 15,552 | 18,282 | 15,440 | 58,727 | ||||||||||
Federal income taxes (benefit) | 108 | 8,417 | 9,722 | 4,674 | 22,921 | ||||||||||
Total expenses | 31,916 | 84,433 | 222,862 | 20,114 | 359,325 | ||||||||||
Segment earnings (loss) | $ | 222 | 17,270 | 19,946 | 9,589 | 47,027 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 41,048 | 39,235 | 122,887 | 110,328 | |||||||
Net investment income | 139,074 | 44,538 | 366,813 | 275,777 | ||||||||
Other revenues | 5,923 | 5,643 | 17,444 | 20,247 | ||||||||
Realized gains (losses) on investments | 4,940 | 2,938 | 8,112 | 6,520 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 190,985 | 92,354 | 515,256 | 412,872 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 12,679 | 8,968 | 32,241 | 22,921 | |||||||
Taxes on realized gains (losses) on investments | 1,729 | 1,028 | 2,839 | 2,282 | ||||||||
Total condensed consolidated Federal income taxes | $ | 14,408 | 9,996 | 35,080 | 25,203 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||
(In thousands) | ||||||||||||
Net Earnings: | ||||||||||||
Total segment earnings | $ | 21,111 | 17,355 | 62,036 | 47,027 | |||||||
Realized gains (losses) on investments, net of taxes | 3,211 | 1,910 | 5,273 | 4,238 | ||||||||
Total condensed consolidated net earnings | $ | 24,322 | 19,265 | 67,309 | 51,265 |
September 30, | ||||||
2012 | 2011 | |||||
(In thousands) | ||||||
Assets: | ||||||
Total segment assets | $ | 10,103,615 |