UNITED STATES | |
SECURITIES AND EXCHANGE COMMISSION | |
Washington, D.C. 20549 | |
FORM 10-Q | |
x 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, 2014 (Unaudited) and December 31, 2013 | |
For the Three Months Ended September 30, 2014 and 2013 (Unaudited) | |
For the Nine Months Ended September 30, 2014 and 2013 (Unaudited) | |
For the Three Months Ended September 30, 2014 and 2013 (Unaudited) | |
For the Nine Months Ended September 30, 2014 and 2013 (Unaudited) | |
For the Nine Months Ended September 30, 2014 and 2013 (Unaudited) | |
For the Nine Months Ended September 30, 2014 and 2013 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | September 30, 2014 | December 31, 2013 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,195,441 and $6,656,144) | $ | 6,898,038 | 6,510,320 | |||
Securities available for sale, at fair value (cost: $2,576,805 and $2,535,264) | 2,724,880 | 2,651,544 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 152,740 | 132,765 | ||||
Policy loans | 63,746 | 65,969 | ||||
Derivatives, index options | 109,812 | 169,314 | ||||
Other long-term investments | 29,006 | 30,991 | ||||
Total investments | 9,978,222 | 9,560,903 | ||||
Cash and short-term investments | 121,482 | 120,859 | ||||
Deferred policy acquisition costs | 795,452 | 785,706 | ||||
Deferred sales inducements | 160,614 | 169,570 | ||||
Accrued investment income | 100,256 | 95,367 | ||||
Federal income tax receivable | 5,650 | — | ||||
Other assets | 97,400 | 98,011 | ||||
Total assets | $ | 11,259,076 | 10,830,416 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | September 30, 2014 | December 31, 2013 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,267,144 | 8,987,062 | |||
Traditional life reserves | 137,501 | 138,072 | ||||
Other policyholder liabilities | 142,175 | 142,587 | ||||
Deferred Federal income tax liability | 36,421 | 7,199 | ||||
Federal income tax payable | — | 10,067 | ||||
Other liabilities | 141,697 | 97,481 | ||||
Total liabilities | 9,724,938 | 9,382,468 | ||||
COMMITMENTS AND CONTINGENCIES (Note 8) | ||||||
STOCKHOLDERS’ EQUITY: | ||||||
Common stock: | ||||||
Class A - $1 par value; 7,500,000 shares authorized; 3,436,166 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 | 47,717 | 38,080 | ||||
Retained earnings | 1,444,669 | 1,368,466 | ||||
Total stockholders’ equity | 1,534,138 | 1,447,948 | ||||
Total liabilities and stockholders' equity | $ | 11,259,076 | 10,830,416 |
2014 | 2013 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 36,602 | 33,523 | ||||
Traditional life premiums | 4,506 | 4,159 | |||||
Net investment income | 110,966 | 141,403 | |||||
Other revenues | 5,377 | 5,822 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | — | 214 | |||||
Portion of OTTI (gains) losses recognized in other comprehensive income | — | (227 | ) | ||||
Net OTTI losses recognized in earnings | — | (13 | ) | ||||
Other net investment gains (losses) | 2,169 | 3,298 | |||||
Total net realized investment gains (losses) | 2,169 | 3,285 | |||||
Total revenues | 159,620 | 188,192 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 13,163 | 16,941 | |||||
Amortization of deferred policy acquisition costs | 23,467 | 24,244 | |||||
Universal life and annuity contract interest | 59,211 | 87,486 | |||||
Other operating expenses | 20,451 | 22,675 | |||||
Total benefits and expenses | 116,292 | 151,346 | |||||
Earnings before Federal income taxes | 43,328 | 36,846 | |||||
Federal income taxes | 14,862 | 12,064 | |||||
Net earnings | $ | 28,466 | 24,782 | ||||
Basic earnings per share: | |||||||
Class A | $ | 8.05 | $ | 7.01 | |||
Class B | $ | 4.03 | $ | 3.51 | |||
Diluted earnings per share: | |||||||
Class A | $ | 8.05 | $ | 7.00 | |||
Class B | $ | 4.03 | $ | 3.51 |
2014 | 2013 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 112,824 | 111,785 | ||||
Traditional life premiums | 13,946 | 13,241 | |||||
Net investment income | 374,596 | 451,904 | |||||
Other revenues | 16,351 | 17,954 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | (32 | ) | 524 | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (3 | ) | (776 | ) | |||
Net OTTI losses recognized in earnings | (35 | ) | (252 | ) | |||
Other net investment gains (losses) | 6,782 | 7,451 | |||||
Total net realized investment gains (losses) | 6,747 | 7,199 | |||||
Total revenues | 524,464 | 602,083 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 40,922 | 48,081 | |||||
Amortization of deferred policy acquisition costs | 79,304 | 83,900 | |||||
Universal life and annuity contract interest | 224,576 | 299,224 | |||||
Other operating expenses | 63,414 | 69,442 | |||||
Total benefits and expenses | 408,216 | 500,647 | |||||
Earnings before Federal income taxes | 116,248 | 101,436 | |||||
Federal income taxes | 38,773 | 33,031 | |||||
Net earnings | $ | 77,475 | 68,405 | ||||
Basic earnings per share: | |||||||
Class A | $ | 21.92 | $ | 19.35 | |||
Class B | $ | 10.95 | $ | 9.68 | |||
Diluted earnings per share: | |||||||
Class A | $ | 21.91 | $ | 19.32 | |||
Class B | $ | 10.95 | $ | 9.68 |
2014 | 2013 | |||||
Net earnings | $ | 28,466 | 24,782 | |||
Other comprehensive income (loss), net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (7,793 | ) | (1,833 | ) | ||
Net unrealized liquidity gains (losses) | (23 | ) | (92 | ) | ||
Reclassification adjustment for net amounts included in net earnings | (958 | ) | (261 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | (8,774 | ) | (2,186 | ) | ||
Foreign currency translation adjustments | (3 | ) | (38 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (176 | ) | 373 | |||
Other comprehensive income (loss) | (8,953 | ) | (1,851 | ) | ||
Comprehensive income (loss) | $ | 19,513 | 22,931 |
2014 | 2013 | |||||
Net earnings | $ | 77,475 | 68,405 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | 14,101 | (36,065 | ) | |||
Net unrealized liquidity gains (losses) | 28 | 66 | ||||
Reclassification adjustment for net amounts included in net earnings | (3,329 | ) | (2,657 | ) | ||
Amortization of net unrealized (gains) losses related to transferred securities | — | — | ||||
Net unrealized gains (losses) on securities | 10,800 | (38,656 | ) | |||
Foreign currency translation adjustments | (636 | ) | 555 | |||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (527 | ) | 1,127 | |||
Other comprehensive income (loss) | 9,637 | (36,974 | ) | |||
Comprehensive income | $ | 87,112 | 31,431 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY For the Nine Months Ended September 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 | 10,772 | (38,860 | ) | ||||
Balance at end of period | 57,465 | 53,112 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,287 | ) | (1,426 | ) | |||
Amortization | 80 | 77 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | 90 | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (53 | ) | (149 | ) | |||
Balance at end of period | (1,260 | ) | (1,408 | ) | |||
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 | ) | (188 | ) | |||
Recoveries, net of tax | 2 | 374 | |||||
Balance at end of period | (1 | ) | (10 | ) | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(continued) For the Nine Months Ended September 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 | (636 | ) | 555 | ||||
Balance at end of period | 2,605 | 3,144 | |||||
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 | (527 | ) | 1,127 | ||||
Balance at end of period | (11,092 | ) | (15,026 | ) | |||
Accumulated other comprehensive income at end of period | 47,717 | 39,812 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,368,466 | 1,273,492 | |||||
Net earnings | 77,475 | 68,405 | |||||
Stockholder dividends | (1,272 | ) | (1,273 | ) | |||
Balance at end of period | 1,444,669 | 1,340,624 | |||||
Total stockholders' equity | $ | 1,534,138 | $ | 1,421,838 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 77,475 | 68,405 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 224,576 | 299,224 | |||||
Surrender charges and other policy revenues | (9,531 | ) | (10,450 | ) | |||
Realized (gains) losses on investments | (7,225 | ) | (7,199 | ) | |||
Accretion/amortization of discounts and premiums, investments | (831 | ) | (2,040 | ) | |||
Depreciation and amortization | 2,522 | 3,742 | |||||
(Increase) decrease in value of derivatives | (49,278 | ) | (126,739 | ) | |||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (16,197 | ) | (15,433 | ) | |||
(Increase) decrease in accrued investment income | (4,889 | ) | (3,792 | ) | |||
(Increase) decrease in other assets | 28 | (20,271 | ) | ||||
Increase (decrease) in liabilities for future policy benefits | 3,956 | 8,960 | |||||
Increase (decrease) in other policyholder liabilities | (412 | ) | 11,261 | ||||
Increase (decrease) in Federal income taxes | 7,691 | (14,151 | ) | ||||
Increase (decrease) in other liabilities | 1,848 | 2,390 | |||||
Other, net | 1 | — | |||||
Net cash provided by operating activities | 229,734 | 193,907 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | 1,980 | |||||
Securities available for sale | 19,511 | 10,246 | |||||
Other investments | 3,247 | 10,520 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 591,536 | 1,028,476 | |||||
Securities available for sale | 213,260 | 191,833 | |||||
Derivatives, index options | 164,059 | 109,816 | |||||
Purchases of: | |||||||
Securities held to maturity | (933,997 | ) | (1,380,732 | ) | |||
Securities available for sale | (275,751 | ) | (247,375 | ) | |||
Derivatives, index options | (53,174 | ) | (45,629 | ) | |||
Other investments | (376 | ) | (15 | ) | |||
Principal payments on mortgage loans | 14,112 | 30,649 | |||||
Cost of mortgage loans acquired | (33,985 | ) | (5,271 | ) | |||
Decrease (increase) in policy loans | 2,223 | 3,242 | |||||
Other, net | (1 | ) | (2 | ) | |||
Net cash used in investing activities | (289,336 | ) | (292,262 | ) | |||
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, 2014 and 2013 (Unaudited) (In thousands) | |||||||
2014 | 2013 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 715,705 | 732,745 | |||||
Return of account balances on universal life and annuity contracts | (655,195 | ) | (665,048 | ) | |||
Issuance of common stock under stock option plan | 350 | — | |||||
Net cash provided by (used in) financing activities | 60,860 | 67,697 | |||||
Effect of foreign exchange | (635 | ) | 555 | ||||
Net increase (decrease) in cash and short-term investments | 623 | (30,103 | ) | ||||
Cash and short-term investments at beginning of period | 120,859 | 124,561 | |||||
Cash and short-term investments at end of period | $ | 121,482 | $ | 94,458 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 30 | $ | 40 | |||
Income taxes | $ | 30,515 | $ | 48,658 | |||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (6,066 | ) | $ | 1,261 |
(1) | CONSOLIDATION AND BASIS OF PRESENTATION |
Affected Line Item in the Statements of Earnings | Amount Reclassified From Accumulated Other Comprehensive Income | ||||||||||||
Three Months Ended September 30, | Nine months ended September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 1,474 | 413 | 5,156 | 4,247 | ||||||||
Net OTTI losses recognized in earnings | — | (12 | ) | (35 | ) | (160 | ) | ||||||
Earnings before Federal income taxes | 1,474 | 401 | 5,121 | 4,087 | |||||||||
Federal income taxes | 516 | 140 | 1,792 | 1,430 | |||||||||
Net earnings | $ | 958 | 261 | 3,329 | 2,657 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended September 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 | $ | 28,466 | 24,782 | |||||||||
Dividends - Class A shares | (1,236 | ) | (1,237 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 27,194 | 23,509 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,236 | 36 | 1,237 | 36 | |||||||
Allocation of undistributed income | 26,425 | 769 | 22,844 | 665 | ||||||||
Net income | $ | 27,661 | 805 | 24,081 | 701 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 2 | — | 4 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,438 | 200 | 3,439 | 200 | ||||||||
Basic Earnings Per Share | $ | 8.05 | 4.03 | 7.01 | 3.51 | |||||||
Diluted Earnings Per Share | $ | 8.05 | 4.03 | 7.00 | 3.51 |
Nine Months Ended September 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 | $ | 77,475 | 68,405 | |||||||||
Dividends - Class A shares | (1,236 | ) | (1,237 | ) | ||||||||
Dividends - Class B shares | (36 | ) | (36 | ) | ||||||||
Undistributed income | $ | 76,203 | 67,132 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | 1,236 | 36 | 1,237 | 36 | |||||||
Allocation of undistributed income | 74,048 | 2,155 | 65,233 | 1,899 | ||||||||
Net income | $ | 75,284 | 2,191 | 66,470 | 1,935 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,435 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 2 | — | 5 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,440 | 200 | ||||||||
Basic Earnings Per Share | $ | 21.92 | 10.95 | 19.35 | 9.68 | |||||||
Diluted Earnings Per Share | $ | 21.91 | 10.95 | 19.32 | 9.68 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 42 | 48 | 126 | 142 | |||||||
Interest cost | 239 | 218 | 718 | 654 | ||||||||
Expected return on plan assets | (320 | ) | (284 | ) | (959 | ) | (850 | ) | ||||
Amortization of prior service cost | 1 | 1 | 3 | 3 | ||||||||
Amortization of net loss | 106 | 203 | 317 | 609 | ||||||||
Net periodic benefit cost | $ | 68 | 186 | 205 | 558 |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 74 | 44 | 222 | 133 | |||||||
Interest cost | 250 | 201 | 752 | 601 | ||||||||
Amortization of prior service cost | 15 | 15 | 44 | 44 | ||||||||
Amortization of net loss | 323 | 293 | 970 | 880 | ||||||||
Net periodic benefit cost | $ | 662 | 553 | 1,988 | 1,658 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 28 | 29 | 83 | 88 | |||||||
Amortization of prior service cost | 26 | 26 | 78 | 77 | ||||||||
Amortization of net loss | (1 | ) | 9 | (3 | ) | 25 | ||||||
Net periodic benefit cost | $ | 53 | 64 | 158 | 190 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 61,087 | 242,124 | 652,855 | — | 956,066 | |||||||||
Total segment assets | 705,156 | 1,223,571 | 8,871,276 | 251,905 | 11,051,908 | ||||||||||
Future policy benefits | 611,550 | 944,505 | 7,848,590 | — | 9,404,645 | ||||||||||
Other policyholder liabilities | 12,742 | 12,226 | 117,207 | — | 142,175 | ||||||||||
Three Months Ended | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 6,847 | 29,135 | 5,126 | — | 41,108 | |||||||||
Net investment income | 6,859 | 8,273 | 90,835 | 4,999 | 110,966 | ||||||||||
Other revenues | 19 | 20 | 23 | 5,315 | 5,377 | ||||||||||
Total revenues | 13,725 | 37,428 | 95,984 | 10,314 | 157,451 | ||||||||||
Life and other policy benefits | 3,353 | 9,672 | 138 | — | 13,163 | ||||||||||
Amortization of deferred acquisition costs | 1,166 | 2,525 | 19,776 | — | 23,467 | ||||||||||
Universal life and annuity contract interest | 5,803 | 6,956 | 46,452 | — | 59,211 | ||||||||||
Other operating expenses | 2,314 | 6,307 | 7,045 | 4,785 | 20,451 | ||||||||||
Federal income taxes (benefit) | 379 | 4,143 | 7,681 | 1,899 | 14,102 | ||||||||||
Total expenses | 13,015 | 29,603 | 81,092 | 6,684 | 130,394 | ||||||||||
Segment earnings (loss) | $ | 710 | 7,825 | 14,892 | 3,630 | 27,057 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Nine months ended | |||||||||||||||
September 30, 2014 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 22,077 | 87,906 | 16,787 | — | 126,770 | |||||||||
Net investment income | 24,044 | 35,902 | 300,118 | 14,532 | 374,596 | ||||||||||
Other revenues | 40 | 321 | 63 | 15,927 | 16,351 | ||||||||||
Total revenues | 46,161 | 124,129 | 316,968 | 30,459 | 517,717 | ||||||||||
Life and other policy benefits | 7,268 | 16,375 | 17,279 | — | 40,922 | ||||||||||
Amortization of deferred acquisition costs | 5,346 | 18,078 | 55,880 | — | 79,304 | ||||||||||
Universal life and annuity contract interest | 19,066 | 32,820 | 172,690 | — | 224,576 | ||||||||||
Other operating expenses | 10,585 | 18,167 | 19,965 | 14,697 | 63,414 | ||||||||||
Federal income taxes (benefit) | 1,295 | 12,865 | 17,010 | 5,241 | 36,411 | ||||||||||
Total expenses | 43,560 | 98,305 | 282,824 | 19,938 | 444,627 | ||||||||||
Segment earnings (loss) | $ | 2,601 | 25,824 | 34,144 | 10,521 | 73,090 |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
September 30, 2013 | |||||||||||||||
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 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 41,108 | 37,682 | 126,770 | 125,026 | |||||||
Net investment income | 110,966 | 141,403 | 374,596 | 451,904 | ||||||||
Other revenues | 5,377 | 5,822 | 16,351 | 17,954 | ||||||||
Realized gains (losses) on investments | 2,169 | 3,285 | 6,747 | 7,199 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 159,620 | 188,192 | 524,464 | 602,083 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 14,102 | 10,913 | 36,411 | 30,511 | |||||||
Taxes on realized gains (losses) on investments | 760 | 1,151 | 2,362 | 2,520 | ||||||||
Total condensed consolidated Federal income taxes | $ | 14,862 |