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, 2014 (Unaudited) and December 31, 2013 | |
For the Three Months Ended June 30, 2014 and 2013 (Unaudited) | |
For the Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
For the Three Months Ended June 30, 2014 and 2013 (Unaudited) | |
For the Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
For the Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
For the Six Months Ended June 30, 2014 and 2013 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2014 | December 31, 2013 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $6,979,345 and $6,656,144) | $ | 6,641,083 | 6,510,320 | |||
Securities available for sale, at fair value (cost: $2,625,676 and $2,535,264) | 2,799,450 | 2,651,544 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 152,208 | 132,765 | ||||
Policy loans | 64,988 | 65,969 | ||||
Derivatives, index options | 146,514 | 169,314 | ||||
Other long-term investments | 30,421 | 30,991 | ||||
Total investments | 9,834,664 | 9,560,903 | ||||
Cash and short-term investments | 133,506 | 120,859 | ||||
Deferred policy acquisition costs | 774,530 | 785,706 | ||||
Deferred sales inducements | 159,143 | 169,570 | ||||
Accrued investment income | 95,816 | 95,367 | ||||
Federal income tax receivable | 3,434 | — | ||||
Other assets | 94,988 | 98,011 | ||||
Total assets | $ | 11,096,081 | 10,830,416 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2014 | December 31, 2013 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,155,686 | 8,987,062 | |||
Traditional life reserves | 137,099 | 138,072 | ||||
Other policyholder liabilities | 149,714 | 142,587 | ||||
Deferred Federal income tax liability | 30,256 | 7,199 | ||||
Federal income tax payable | — | 10,067 | ||||
Other liabilities | 107,429 | 97,481 | ||||
Total liabilities | 9,580,184 | 9,382,468 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,436,165 issued and outstanding in 2014 and 3,434,765 in 2013 | 3,436 | 3,435 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2014 and 2013 | 200 | 200 | ||||
Additional paid-in capital | 38,116 | 37,767 | ||||
Accumulated other comprehensive income | 56,670 | 38,080 | ||||
Retained earnings | 1,417,475 | 1,368,466 | ||||
Total stockholders’ equity | 1,515,897 | 1,447,948 | ||||
Total liabilities and stockholders' equity | $ | 11,096,081 | 10,830,416 |
2014 | 2013 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 38,217 | 40,363 | ||||
Traditional life premiums | 5,169 | 5,218 | |||||
Net investment income | 155,179 | 129,687 | |||||
Other revenues | 5,211 | 5,990 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | — | (72 | ) | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | — | (106 | ) | ||||
Net OTTI losses recognized in earnings | — | (178 | ) | ||||
Other net investment gains (losses) | 3,065 | 1,779 | |||||
Total net realized investment gains (losses) | 3,065 | 1,601 | |||||
Total revenues | 206,841 | 182,859 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 14,796 | 18,450 | |||||
Amortization of deferred policy acquisition costs | 27,258 | 28,852 | |||||
Universal life and annuity contract interest | 102,429 | 71,438 | |||||
Other operating expenses | 19,500 | 24,843 | |||||
Total benefits and expenses | 163,983 | 143,583 | |||||
Earnings before Federal income taxes | 42,858 | 39,276 | |||||
Federal income taxes | 13,675 | 12,285 | |||||
Net earnings | $ | 29,183 | 26,991 | ||||
Basic earnings per share: | |||||||
Class A | $ | 8.26 | $ | 7.64 | |||
Class B | $ | 4.13 | $ | 3.82 | |||
Diluted earnings per share: | |||||||
Class A | $ | 8.25 | $ | 7.62 | |||
Class B | $ | 4.13 | $ | 3.82 |
2014 | 2013 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 76,222 | 78,262 | ||||
Traditional life premiums | 9,440 | 9,082 | |||||
Net investment income | 263,630 | 310,501 | |||||
Other revenues | 10,974 | 12,132 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | (32 | ) | 310 | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (3 | ) | (549 | ) | |||
Net OTTI losses recognized in earnings | (35 | ) | (239 | ) | |||
Other net investment gains (losses) | 4,613 | 4,153 | |||||
Total net realized investment gains (losses) | 4,578 | 3,914 | |||||
Total revenues | 364,844 | 413,891 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 27,759 | 31,140 | |||||
Amortization of deferred policy acquisition costs | 55,837 | 59,656 | |||||
Universal life and annuity contract interest | 165,365 | 211,738 | |||||
Other operating expenses | 42,963 | 46,767 | |||||
Total benefits and expenses | 291,924 | 349,301 | |||||
Earnings before Federal income taxes | 72,920 | 64,590 | |||||
Federal income taxes | 23,911 | 20,967 | |||||
Net earnings | $ | 49,009 | 43,623 | ||||
Basic earnings per share: | |||||||
Class A | $ | 13.86 | $ | 12.34 | |||
Class B | $ | 6.93 | $ | 6.17 | |||
Diluted earnings per share: | |||||||
Class A | $ | 13.86 | $ | 12.32 | |||
Class B | $ | 6.93 | $ | 6.17 |
2014 | 2013 | |||||
Net earnings | $ | 29,183 | 26,991 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 10,892 | (33,107 | ) | |||
Net unrealized liquidity gains (losses) | 28 | 20 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,946 | ) | (1,037 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | 8,974 | (34,124 | ) | |||
Foreign currency translation adjustments | (122 | ) | 3 | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (175 | ) | 373 | |||
Other comprehensive income (loss) | 8,677 | (33,748 | ) | |||
Comprehensive income (loss) | $ | 37,860 | (6,757 | ) |
2014 | 2013 | |||||
Net earnings | $ | 49,009 | 43,623 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 21,894 | (34,232 | ) | |||
Net unrealized liquidity gains (losses) | 51 | 158 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,371 | ) | (2,396 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | 19,574 | (36,470 | ) | |||
Foreign currency translation adjustments | (633 | ) | 593 | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (351 | ) | 754 | |||
Other comprehensive income (loss) | 18,590 | (35,123 | ) | |||
Comprehensive income | $ | 67,599 | 8,500 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,635 | 3,635 | ||||
Shares exercised under stock option plan | 1 | — | |||||
Balance at end of period | 3,636 | 3,635 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 37,767 | 37,767 | |||||
Shares exercised under stock option plan | 349 | — | |||||
Balance at end of period | 38,116 | 37,767 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 46,693 | 91,972 | |||||
Change in unrealized gains (losses) during period, net of tax | 19,523 | (36,628 | ) | ||||
Balance at end of period | 66,216 | 55,344 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,287 | ) | (1,426 | ) | |||
Amortization | 117 | 77 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | 23 | |||||
Additional credit loss on previously impaired securities | — | 14 | |||||
Change in shadow deferred policy acquisition costs | (67 | ) | (77 | ) | |||
Balance at end of period | (1,237 | ) | (1,389 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (2 | ) | (196 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | (1 | ) | (123 | ) | |||
Recoveries, net of tax | 2 | 244 | |||||
Balance at end of period | (1 | ) | (75 | ) | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(continued) For the Six Months Ended June 30, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 3,241 | 2,589 | |||||
Change in translation adjustments during period | (633 | ) | 593 | ||||
Balance at end of period | 2,608 | 3,182 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (10,565 | ) | (16,153 | ) | |||
Amortization of net prior service cost and net loss, net of tax | (351 | ) | 754 | ||||
Balance at end of period | (10,916 | ) | (15,399 | ) | |||
Accumulated other comprehensive income at end of period | 56,670 | 41,663 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,368,466 | 1,273,492 | |||||
Net earnings | 49,009 | 43,623 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,417,475 | 1,317,115 | |||||
Total stockholders' equity | $ | 1,515,897 | $ | 1,400,180 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 49,009 | 43,623 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 165,365 | 211,738 | |||||
Surrender charges and other policy revenues | (9,104 | ) | (7,105 | ) | |||
Realized (gains) losses on investments | (4,578 | ) | (3,914 | ) | |||
Accretion/amortization of discounts and premiums, investments | (465 | ) | (1,487 | ) | |||
Depreciation and amortization | 1,741 | 2,813 | |||||
(Increase) decrease in value of derivatives | (45,799 | ) | (91,124 | ) | |||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (6,062 | ) | (4,984 | ) | |||
(Increase) decrease in accrued investment income | (449 | ) | (2,224 | ) | |||
(Increase) decrease in other assets | (1,635 | ) | (2,594 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 1,344 | 5,349 | |||||
Increase (decrease) in other policyholder liabilities | 7,127 | 16,669 | |||||
Increase (decrease) in Federal income taxes | (984 | ) | (563 | ) | |||
Increase (decrease) in other liabilities | (2,806 | ) | 87 | ||||
Other, net | (1 | ) | — | ||||
Net cash provided by operating activities | 152,703 | 166,284 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | 1,980 | |||||
Securities available for sale | 5,334 | 9,670 | |||||
Other investments | 1,016 | 9,945 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 360,420 | 710,366 | |||||
Securities available for sale | 102,813 | 128,127 | |||||
Derivatives, index options | 105,268 | 54,640 | |||||
Purchases of: | |||||||
Securities held to maturity | (477,353 | ) | (970,658 | ) | |||
Securities available for sale | (195,023 | ) | (191,387 | ) | |||
Derivatives, index options | (33,610 | ) | (28,498 | ) | |||
Other investments | (296 | ) | (15 | ) | |||
Principal payments on mortgage loans | 10,240 | 25,490 | |||||
Cost of mortgage loans acquired | (29,611 | ) | (2,419 | ) | |||
Decrease (increase) in policy loans | 981 | 754 | |||||
Other, net | 2 | (4 | ) | ||||
Net cash used in investing activities | (149,819 | ) | (252,009 | ) | |||
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, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 460,611 | 477,776 | |||||
Return of account balances on universal life and annuity contracts | (450,565 | ) | (448,973 | ) | |||
Issuance of common stock under stock option plan | 350 | — | |||||
Net cash provided by (used in) financing activities | 10,396 | 28,803 | |||||
Effect of foreign exchange | (633 | ) | 593 | ||||
Net increase (decrease) in cash and short-term investments | 12,647 | (56,329 | ) | ||||
Cash and short-term investments at beginning of period | 120,859 | 124,561 | |||||
Cash and short-term investments at end of period | $ | 133,506 | $ | 68,232 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 20 | $ | 30 | |||
Income taxes | $ | 24,416 | $ | 22,695 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (4,851 | ) | $ | 1,429 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
Affected Line Item in the Statements of Earnings | Amount Reclassified From Accumulated Other Comprehensive Income | ||||||||||||
Three Months Ended June 30, | Six months ended June 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 2,993 | 1,720 | 3,682 | 3,834 | ||||||||
Net OTTI losses recognized in earnings | — | (125 | ) | (35 | ) | (148 | ) | ||||||
Earnings before Federal income taxes | 2,993 | 1,595 | 3,647 | 3,686 | |||||||||
Federal income taxes | 1,047 | 558 | 1,276 | 1,290 | |||||||||
Net earnings | $ | 1,946 | 1,037 | 2,371 | 2,396 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 29,183 | 26,991 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 29,183 | 26,991 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 28,358 | 825 | 26,227 | 764 | ||||||||
Net income | $ | 28,358 | 825 | 26,227 | 764 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 2 | — | 7 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,442 | 200 | ||||||||
Basic Earnings Per Share | $ | 8.26 | 4.13 | 7.64 | 3.82 | |||||||
Diluted Earnings Per Share | $ | 8.25 | 4.13 | 7.62 | 3.82 |
Six Months Ended June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 49,009 | 43,623 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 49,009 | 43,623 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 47,623 | 1,386 | 42,389 | 1,234 | ||||||||
Net income | $ | 47,623 | 1,386 | 42,389 | 1,234 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 2 | — | 6 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,441 | 200 | ||||||||
Basic Earnings Per Share | $ | 13.86 | 6.93 | 12.34 | 6.17 | |||||||
Diluted Earnings Per Share | $ | 13.86 | 6.93 | 12.32 | 6.17 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 42 | 47 | 84 | 95 | |||||||
Interest cost | 239 | 218 | 479 | 436 | ||||||||
Expected return on plan assets | (319 | ) | (283 | ) | (639 | ) | (567 | ) | ||||
Amortization of prior service cost | 1 | 1 | 2 | 2 | ||||||||
Amortization of net loss | 106 | 203 | 211 | 406 | ||||||||
Net periodic benefit cost | $ | 69 | 186 | 137 | 372 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 74 | 45 | 147 | 89 | |||||||
Interest cost | 251 | 200 | 502 | 400 | ||||||||
Amortization of prior service cost | 14 | 14 | 29 | 29 | ||||||||
Amortization of net loss | 324 | 293 | 647 | 587 | ||||||||
Net periodic benefit cost | $ | 663 | 552 | 1,325 | 1,105 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 27 | 30 | 55 | 59 | |||||||
Amortization of prior service cost | 26 | 25 | 52 | 51 | ||||||||
Amortization of net loss | (1 | ) | 8 | (2 | ) | 16 | ||||||
Net periodic benefit cost | $ | 52 | 63 | 105 | 126 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2014 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 57,354 | 238,211 | 638,108 | — | 933,673 | |||||||||
Total segment assets | 670,565 | 1,229,589 | 8,749,666 | 274,434 | 10,924,254 | ||||||||||
Future policy benefits | 581,946 | 934,791 | 7,776,048 | — | 9,292,785 | ||||||||||
Other policyholder liabilities | 13,259 | 12,399 | 124,056 | — | 149,714 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 7,065 | 29,663 | 6,658 | — | 43,386 | |||||||||
Net investment income | 10,902 | 16,911 | 122,666 | 4,700 | 155,179 | ||||||||||
Other revenues | 3 | 60 | 3 | 5,145 | 5,211 | ||||||||||
Total revenues | 17,970 | 46,634 | 129,327 | 9,845 | 203,776 | ||||||||||
Life and other policy benefits | 1,423 | 1,668 | 11,705 | — | 14,796 | ||||||||||
Amortization of deferred acquisition costs | 1,780 | 8,808 | 16,670 | — | 27,258 | ||||||||||
Universal life and annuity contract interest | 8,158 | 15,659 | 78,612 | — | 102,429 | ||||||||||
Other operating expenses | 3,992 | 4,835 | 5,824 | 4,849 | 19,500 | ||||||||||
Federal income taxes (benefit) | 851 | 4,963 | 5,227 | 1,561 | 12,602 | ||||||||||
Total expenses | 16,204 | 35,933 | 118,038 | 6,410 | 176,585 | ||||||||||
Segment earnings (loss) | $ | 1,766 | 10,701 | 11,289 | 3,435 | 27,191 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 15,230 | 58,771 | 11,661 | — | 85,662 | |||||||||
Net investment income | 17,185 | 27,629 | 209,283 | 9,533 | 263,630 | ||||||||||
Other revenues | 21 | 301 | 40 | 10,612 | 10,974 | ||||||||||
Total revenues | 32,436 | 86,701 | 220,984 | 20,145 | 360,266 | ||||||||||
Life and other policy benefits | 3,915 | 6,703 | 17,141 | — | 27,759 | ||||||||||
Amortization of deferred acquisition costs | 4,180 | 15,553 | 36,104 | — | 55,837 | ||||||||||
Universal life and annuity contract interest | 13,263 | 25,864 | 126,238 | — | 165,365 | ||||||||||
Other operating expenses | 8,271 | 11,860 | 12,920 | 9,912 | 42,963 | ||||||||||
Federal income taxes (benefit) | 916 | 8,722 | 9,329 | 3,342 | 22,309 | ||||||||||
Total expenses | 30,545 | 68,702 | 201,732 | 13,254 | 314,233 | ||||||||||
Segment earnings (loss) | $ | 1,891 | 17,999 | 19,252 | 6,891 | 46,033 |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2013 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 45,391 | 231,684 | 643,014 | — | 920,089 | |||||||||
Total segment assets | 522,003 | 1,134,181 | 8,420,780 | 253,831 | 10,330,795 | ||||||||||
Future policy benefits | 454,359 | 875,672 | 7,477,608 | — | 8,807,639 | ||||||||||
Other policyholder liabilities | 13,109 | 14,734 | 137,387 | — | 165,230 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 9,413 | 30,177 | 5,991 | — | 45,581 | |||||||||
Net investment income | 8,242 | 13,637 | 102,805 | 5,003 | 129,687 | ||||||||||
Other revenues | (3 | ) | 108 | (9 | ) | 5,894 | 5,990 | ||||||||
Total revenues | 17,652 | 43,922 | 108,787 | 10,897 | 181,258 | ||||||||||
Life and other policy benefits | 1,096 | 3,225 | 14,129 | — | 18,450 | ||||||||||
Amortization of deferred acquisition costs | 2,210 | 7,926 | 18,716 | — | 28,852 | ||||||||||
Universal life and annuity contract interest | 7,868 | 9,244 | 54,326 | — | 71,438 | ||||||||||
Other operating expenses | 4,947 | 6,125 | 8,466 | 5,305 | 24,843 | ||||||||||
Federal income taxes (benefit) | 468 | 5,456 | 4,087 | 1,714 | 11,725 | ||||||||||
Total expenses | 16,589 | 31,976 | 99,724 | 7,019 | 155,308 | ||||||||||
Segment earnings (loss) | $ | 1,063 | 11,946 | 9,063 | 3,878 | 25,950 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2013 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 19,023 | 58,196 | 10,125 | — | 87,344 | |||||||||
Net investment income | 16,015 | 32,267 | 253,183 | 9,036 | 310,501 | ||||||||||
Other revenues | 9 | 151 | 30 | 11,942 | 12,132 | ||||||||||
Total revenues | 35,047 | 90,614 | 263,338 | 20,978 | 409,977 | ||||||||||
Life and other policy benefits | 4,126 | 6,870 | 20,144 | — | 31,140 | ||||||||||
Amortization of deferred acquisition costs | 4,245 | 13,713 | 41,698 | — | 59,656 | ||||||||||
Universal life and annuity contract interest | 15,059 | 31,235 | 165,444 | — | 211,738 | ||||||||||
Other operating expenses | 8,714 | 12,833 | 14,552 | 10,668 | 46,767 | ||||||||||
Federal income taxes (benefit) | 938 | 8,386 | 6,944 | 3,329 | 19,597 | ||||||||||
Total expenses | 33,082 | 73,037 | 248,782 | 13,997 | 368,898 | ||||||||||
Segment earnings (loss) | $ | 1,965 | 17,577 | 14,556 | 6,981 | 41,079 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 43,386 | 45,581 | 85,662 | 87,344 | |||||||
Net investment income | 155,179 | 129,687 | 263,630 | 310,501 | ||||||||
Other revenues | 5,211 | 5,990 | 10,974 | 12,132 | ||||||||
Realized gains (losses) on investments | 3,065 | 1,601 | 4,578 | 3,914 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 206,841 | 182,859 | 364,844 | 413,891 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 12,602 | 11,725 | 22,309 | 19,597 | |||||||
Taxes on realized gains (losses) on investments | 1,073 | 560 | 1,602 | 1,370 | ||||||||
Total condensed consolidated Federal income taxes | $ | 13,675 | 12,285 | 23,911 |