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, 2013 (Unaudited) and December 31, 2012 | |
For the Three Months Ended September 30, 2013 and 2012 (Unaudited) | |
For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
For the Three Months Ended September 30, 2013 and 2012 (Unaudited) | |
For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | September 30, 2013 | December 31, 2012 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $6,574,186 and $6,503,627) | $ | 6,345,116 | 5,962,120 | |||
Securities available for sale, at fair value (cost: $2,618,250 and $2,568,512) | 2,752,530 | 2,826,001 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 117,091 | 142,170 | ||||
Policy loans | 68,307 | 71,549 | ||||
Derivatives, index options | 119,276 | 57,890 | ||||
Other long-term investments | 31,372 | 41,439 | ||||
Total investments | 9,433,692 | 9,101,169 | ||||
Cash and short-term investments | 94,458 | 124,561 | ||||
Deferred policy acquisition costs | 768,309 | 705,397 | ||||
Deferred sales inducements | 168,206 | 152,844 | ||||
Accrued investment income | 96,847 | 92,665 | ||||
Federal income tax receivable | 8,068 | 5,655 | ||||
Other assets | 98,888 | 81,567 | ||||
Total assets | $ | 10,668,468 | 10,263,858 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | September 30, 2013 | December 31, 2012 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 8,797,076 | 8,430,545 | |||
Traditional life reserves | 137,209 | 138,309 | ||||
Other policyholder liabilities | 159,822 | 148,561 | ||||
Deferred Federal income tax liability | 22,501 | 55,054 | ||||
Federal income tax payable | — | — | ||||
Other liabilities | 130,022 | 99,709 | ||||
Total liabilities | 9,246,630 | 8,872,178 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,434,763 issued and outstanding in 2013 and 2012 | 3,435 | 3,435 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2013 and 2012 | 200 | 200 | ||||
Additional paid-in capital | 37,767 | 37,767 | ||||
Accumulated other comprehensive income | 39,812 | 76,786 | ||||
Retained earnings | 1,340,624 | 1,273,492 | ||||
Total stockholders’ equity | 1,421,838 | 1,391,680 | ||||
Total liabilities and stockholders' equity | $ | 10,668,468 | 10,263,858 |
2013 | 2012 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 33,523 | 36,924 | |||
Traditional life premiums | 4,159 | 4,124 | ||||
Net investment income | 141,403 | 139,074 | ||||
Other revenues | 5,822 | 5,923 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 214 | 1,250 | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (227 | ) | (1,761 | ) | ||
Net OTTI losses recognized in earnings | (13 | ) | (511 | ) | ||
Other net investment gains (losses) | 3,298 | 5,451 | ||||
Total net realized investment gains (losses) | 3,285 | 4,940 | ||||
Total revenues | 188,192 | 190,985 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 16,941 | 12,323 | ||||
Amortization of deferred policy acquisition costs | 24,244 | 28,403 | ||||
Universal life and annuity contract interest | 87,486 | 89,386 | ||||
Other operating expenses | 22,675 | 22,143 | ||||
Total benefits and expenses | 151,346 | 152,255 | ||||
Earnings before Federal income taxes | 36,846 | 38,730 | ||||
Federal income taxes | 12,064 | 14,408 | ||||
Net earnings | $ | 24,782 | 24,322 | |||
Basic earnings per share: | ||||||
Class A | $ | 7.01 | 6.88 | |||
Class B | $ | 3.51 | 3.44 | |||
Diluted earnings per share: | ||||||
Class A | $ | 7.00 | 6.88 | |||
Class B | $ | 3.51 | 3.44 |
2013 | 2012 | |||||
Premiums and other revenues: | ||||||
Universal life and annuity contract charges | $ | 111,785 | 109,776 | |||
Traditional life premiums | 13,241 | 13,111 | ||||
Net investment income | 451,904 | 366,813 | ||||
Other revenues | 17,954 | 17,444 | ||||
Net realized investment gains (losses): | ||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 524 | 788 | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (776 | ) | (1,918 | ) | ||
Net OTTI losses recognized in earnings | (252 | ) | (1,130 | ) | ||
Other net investment gains (losses) | 7,451 | 9,242 | ||||
Total net realized investment gains (losses) | 7,199 | 8,112 | ||||
Total revenues | 602,083 | 515,256 | ||||
Benefits and expenses: | ||||||
Life and other policy benefits | 48,081 | 39,858 | ||||
Amortization of deferred policy acquisition costs | 83,900 | 91,463 | ||||
Universal life and annuity contract interest | 299,224 | 216,933 | ||||
Other operating expenses | 69,442 | 64,613 | ||||
Total benefits and expenses | 500,647 | 412,867 | ||||
Earnings before Federal income taxes | 101,436 | 102,389 | ||||
Federal income taxes | 33,031 | 35,080 | ||||
Net earnings | $ | 68,405 | 67,309 | |||
Basic earnings per share: | ||||||
Class A | $ | 19.35 | 19.04 | |||
Class B | $ | 9.68 | 9.52 | |||
Diluted earnings per share: | ||||||
Class A | $ | 19.32 | 19.04 | |||
Class B | $ | 9.68 | 9.52 |
2013 | 2012 | |||||
Net earnings | $ | 24,782 | 24,322 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (1,833 | ) | 15,202 | |||
Net unrealized liquidity gains (losses) | (92 | ) | (3 | ) | ||
Reclassification adjustment for net amounts included in net earnings | (261 | ) | (1,175 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | (1 | ) | |||
Net unrealized gains (losses) on securities | (2,186 | ) | 14,023 | |||
Foreign currency translation adjustments | (38 | ) | 22 | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | 373 | (19 | ) | |||
Other comprehensive income | (1,851 | ) | 14,026 | |||
Comprehensive income | $ | 22,931 | 38,348 |
2013 | 2012 | |||||
Net earnings | $ | 68,405 | 67,309 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (36,065 | ) | 28,578 | |||
Net unrealized liquidity gains (losses) | 66 | 134 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,657 | ) | (3,873 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | (38,656 | ) | 24,839 | |||
Foreign currency translation adjustments | 555 | 307 | ||||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain | 1,127 | 429 | ||||
Other comprehensive income | (36,974 | ) | 25,575 | |||
Comprehensive income | $ | 31,431 | 92,884 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,635 | 3,635 | ||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 3,635 | 3,635 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 37,767 | 37,767 | |||||
Shares exercised under stock option plan | — | — | |||||
Balance at end of period | 37,767 | 37,767 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 91,972 | 69,116 | |||||
Change in unrealized gains during period, net of tax | (38,860 | ) | 24,705 | ||||
Balance at end of period | 53,112 | 93,821 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,426 | ) | (2,320 | ) | |||
Amortization | 77 | 21 | |||||
Other-than-temporary impairments, non-credit, net of tax | 90 | 316 | |||||
Additional credit loss on previously impaired securities | — | 360 | |||||
Change in shadow deferred policy acquisition costs | (149 | ) | (178 | ) | |||
Balance at end of period | (1,408 | ) | (1,801 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (196 | ) | (608 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | (188 | ) | (955 | ) | |||
Recoveries, net of tax | 374 | 570 | |||||
Balance at end of period | (10 | ) | (993 | ) | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (continued) For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,589 | 2,368 | |||||
Change in translation adjustments during period | 555 | 307 | |||||
Balance at end of period | 3,144 | 2,675 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (16,153 | ) | (15,380 | ) | |||
Amortization of net prior service cost and net gain, net of tax | 1,127 | 429 | |||||
Balance at end of period | (15,026 | ) | (14,951 | ) | |||
Accumulated other comprehensive income at end of period | 39,812 | 78,751 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,273,492 | 1,182,207 | |||||
Net earnings | 68,405 | 67,309 | |||||
Stockholder dividends | (1,273 | ) | (1,273 | ) | |||
Balance at end of period | 1,340,624 | 1,248,243 | |||||
Total stockholders' equity | $ | 1,421,838 | $ | 1,368,396 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 68,405 | 67,309 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 299,224 | 216,933 | |||||
Surrender charges and other policy revenues | (10,450 | ) | (10,854 | ) | |||
Realized (gains) losses on investments | (7,199 | ) | (8,112 | ) | |||
Accrual and amortization of investment income | (2,040 | ) | (1,740 | ) | |||
Depreciation and amortization | 3,742 | 4,246 | |||||
(Increase) decrease in value of index options | (126,739 | ) | (42,328 | ) | |||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (15,433 | ) | (3,604 | ) | |||
(Increase) decrease in accrued investment income | (3,792 | ) | (5,852 | ) | |||
(Increase) decrease in other assets | (20,271 | ) | (6,088 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 8,960 | 8,335 | |||||
Increase (decrease) in other policyholder liabilities | 11,261 | 1,417 | |||||
Increase (decrease) in Federal income taxes | (14,151 | ) | (14,391 | ) | |||
Increase (decrease) in other liabilities | 2,390 | 18,416 | |||||
Other, net | — | — | |||||
Net cash provided by operating activities | 193,907 | 223,687 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | 1,980 | — | |||||
Securities available for sale | 10,246 | 7,539 | |||||
Other investments | 10,520 | 8,646 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 1,028,476 | 1,021,666 | |||||
Securities available for sale | 191,833 | 252,464 | |||||
Index options | 109,816 | 25,225 | |||||
Purchases of: | |||||||
Securities held to maturity | (1,380,732 | ) | (1,208,044 | ) | |||
Securities available for sale | (247,375 | ) | (388,228 | ) | |||
Index options | (45,629 | ) | (42,184 | ) | |||
Other investments | (15 | ) | (5,036 | ) | |||
Principal payments on mortgage loans | 30,649 | 38,783 | |||||
Cost of mortgage loans acquired | (5,271 | ) | (16,728 | ) | |||
Decrease (increase) in policy loans | 3,242 | 829 | |||||
Other, net | (2 | ) | (2 | ) | |||
Net cash used in investing activities | (292,262 | ) | (305,070 | ) | |||
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, 2013 and 2012 (Unaudited) (In thousands) | |||||||
2013 | 2012 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 732,745 | 715,037 | |||||
Return of account balances on universal life and annuity contracts | (665,048 | ) | (625,306 | ) | |||
Issuance of common stock under stock option plan | — | — | |||||
Net cash provided by financing activities | 67,697 | 89,731 | |||||
Effect of foreign exchange | 555 | 307 | |||||
Net increase (decrease) in cash and short-term investments | (30,103 | ) | 8,655 | ||||
Cash and short-term investments at beginning of period | 124,561 | 119,290 | |||||
Cash and short-term investments at end of period | $ | 94,458 | $ | 127,945 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 40 | $ | 30 | |||
Income taxes | $ | 48,658 | $ | 49,540 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | 1,261 | $ | 2,965 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 24,782 | 24,322 | |||||||||
Dividends - Class A shares | (1,237 | ) | (1,237 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 23,509 | 23,049 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,237 | 36 | 1,237 | 36 | |||||||
Allocation of undistributed income | 22,844 | 665 | 22,397 | 652 | ||||||||
Net income | $ | 24,081 | 701 | 23,634 | 688 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 4 | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,439 | 200 | 3,435 | 200 | ||||||||
Basic Earnings Per Share | $ | 7.01 | 3.51 | 6.88 | 3.44 | |||||||
Diluted Earnings Per Share | $ | 7.00 | 3.51 | 6.88 | 3.44 |
Nine Months Ended September 30, | ||||||||||||
2013 | 2012 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 68,405 | 67,309 | |||||||||
Dividends - Class A shares | (1,237 | ) | (1,237 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 67,132 | 66,036 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,237 | 36 | 1,237 | 36 | |||||||
Allocation of undistributed income | 65,233 | 1,899 | 64,168 | 1,868 | ||||||||
Net income | $ | 66,470 | 1,935 | 65,405 | 1,904 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 5 | — | — | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,440 | 200 | 3,435 | 200 | ||||||||
Basic Earnings Per Share | $ | 19.35 | 9.68 | 19.04 | 9.52 | |||||||
Diluted Earnings Per Share | $ | 19.32 | 9.68 | 19.04 | 9.52 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 48 | 44 | 142 | 131 | |||||||
Interest cost | 218 | 232 | 654 | 696 | ||||||||
Expected return on plan assets | (284 | ) | (268 | ) | (850 | ) | (803 | ) | ||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | ||||||||
Amortization of net loss | 203 | 196 | 609 | 589 | ||||||||
Net periodic benefit cost | $ | 186 | 205 | 558 | 616 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 44 | 42 | 133 | 126 | |||||||
Interest cost | 201 | 228 | 601 | 684 | ||||||||
Amortization of prior service cost | 15 | 14 | 44 | 44 | ||||||||
Amortization of net loss | 293 | 286 | 880 | 857 | ||||||||
Net periodic benefit cost | $ | 553 | 570 | 1,658 | 1,711 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 29 | 32 | 88 | 97 | |||||||
Amortization of prior service cost | 26 | 25 | 77 | 77 | ||||||||
Amortization of net loss | 9 | 11 | 25 | 31 | ||||||||
Net periodic benefit cost | $ | 64 | 68 | 190 | 205 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2013 | |||||||||||||||
Selected Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 50,067 | 235,922 | 650,526 | — | 936,515 | |||||||||
Total segment assets | 559,824 | 1,161,517 | 8,487,915 | 253,097 | 10,462,353 | ||||||||||
Future policy benefits | 485,754 | 899,090 | 7,549,441 | — | 8,934,285 | ||||||||||
Other policyholder liabilities | 13,177 | 16,778 | 129,867 | — | 159,822 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 3,944 | 28,865 | 4,873 | — | 37,682 | |||||||||
Net investment income | 6,928 | 10,957 | 118,521 | 4,997 | 141,403 | ||||||||||
Other revenues | 12 | 60 | 22 | 5,728 | 5,822 | ||||||||||
Total revenues | 10,884 | 39,882 | 123,416 | 10,725 | 184,907 | ||||||||||
Life and other policy benefits | 4,003 | 11,040 | 1,898 | — | 16,941 | ||||||||||
Amortization of deferred acquisition costs | 1,015 | 3,287 | 19,942 | — | 24,244 | ||||||||||
Universal life and annuity contract interest | 2,261 | 8,525 | 76,700 | — | 87,486 | ||||||||||
Other operating expenses | 2,782 | 5,987 | 8,565 | 5,341 | 22,675 | ||||||||||
Federal income taxes (benefit) | 268 | 3,596 | 5,298 | 1,751 | 10,913 | ||||||||||
Total expenses | 10,329 | 32,435 | 112,403 | 7,092 | 162,259 | ||||||||||
Segment earnings (loss) | $ | 555 | 7,447 | 11,013 | 3,633 | 22,648 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine months ended | |||||||||||||||
September 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 22,967 | 87,061 | 14,998 | — | 125,026 | |||||||||
Net investment income | 22,943 | 43,224 | 371,704 | 14,033 | 451,904 | ||||||||||
Other revenues | 21 | 211 | 52 | 17,670 | 17,954 | ||||||||||
Total revenues | 45,931 | 130,496 | 386,754 | 31,703 | 594,884 | ||||||||||
Life and other policy benefits | 8,129 | 17,910 | 22,042 | — | 48,081 | ||||||||||
Amortization of deferred acquisition costs | 5,260 | 17,000 | 61,640 | — | 83,900 | ||||||||||
Universal life and annuity contract interest | 17,320 | 39,760 | 242,144 | — | 299,224 | ||||||||||
Other operating expenses | 11,496 | 18,820 | 23,117 | 16,009 | 69,442 | ||||||||||
Federal income taxes (benefit) | 1,206 | 11,982 | 12,242 | 5,081 | 30,511 | ||||||||||
Total expenses | 43,411 | 105,472 | 361,185 | 21,090 | 531,158 | ||||||||||
Segment earnings (loss) | $ | 2,520 | 25,024 | 25,569 | 10,613 | 63,726 |
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 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 37,682 | 41,048 | 125,026 | 122,887 | |||||||
Net investment income | 141,403 | 139,074 | 451,904 | 366,813 | ||||||||
Other revenues | 5,822 | 5,923 | 17,954 | 17,444 | ||||||||
Realized gains (losses) on investments | 3,285 | 4,940 | 7,199 | 8,112 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 188,192 | 190,985 | 602,083 | 515,256 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 10,913 | 12,679 | 30,511 | 32,241 | |||||||
Taxes on realized gains (losses) on investments | 1,151 | 1,729 | 2,520 | 2,839 | ||||||||
Total condensed consolidated Federal income taxes | $ | 12,064 | 14,408 | 33,031 | 35,080 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
(In thousands) | ||||||||||||
Net Earnings: | ||||||||||||
Total segment earnings | $ | 22,648 | 21,111 | 63,726 | 62,036 | |||||||
Realized gains (losses) on investments, net of taxes | 2,134 | 3,211 | 4,679 | 5,273 | ||||||||
Total condensed consolidated net earnings | $ | 24,782 | 24,322 | 68,405 | 67,309 |
September 30, | ||||||
2013 | 2012 | |||||