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 | |
June 30, 2015 (Unaudited) and December 31, 2014 | |
For the Three Months Ended June 30, 2015 and 2014 (Unaudited) | |
For the Six Months Ended June 30, 2015 and 2014 (Unaudited) | |
For the Three Months Ended June 30, 2015 and 2014 (Unaudited) | |
For the Six Months Ended June 30, 2015 and 2014 (Unaudited) | |
For the Six Months Ended June 30, 2015 and 2014 (Unaudited) | |
For the Six Months Ended June 30, 2015 and 2014 (Unaudited) | |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
(Unaudited) | ||||||
ASSETS | June 30, 2015 | December 31, 2014 | ||||
Investments: | ||||||
Securities held to maturity, at amortized cost (fair value: $7,370,596 and $7,175,443) | $ | 7,121,439 | 6,841,543 | |||
Securities available for sale, at fair value (cost: $2,740,993 and $2,590,074) | 2,840,589 | 2,728,680 | ||||
Mortgage loans, net of allowance for possible losses ($650 and $650) | 132,261 | 149,503 | ||||
Policy loans | 61,933 | 63,645 | ||||
Derivatives, index options | 72,527 | 114,287 | ||||
Other long-term investments | 28,961 | 28,774 | ||||
Total investments | 10,257,710 | 9,926,432 | ||||
Cash and cash equivalents | 71,710 | 277,078 | ||||
Deferred policy acquisition costs | 826,083 | 802,919 | ||||
Deferred sales inducements | 156,371 | 159,766 | ||||
Accrued investment income | 99,438 | 96,127 | ||||
Federal income tax receivable | 7,546 | — | ||||
Other assets | 96,436 | 89,570 | ||||
Total assets | $ | 11,515,294 | 11,351,892 |
(Unaudited) | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | June 30, 2015 | December 31, 2014 | ||||
LIABILITIES: | ||||||
Future policy benefits: | ||||||
Universal life and annuity contracts | $ | 9,484,080 | 9,384,297 | |||
Traditional life reserves | 137,451 | 138,225 | ||||
Other policyholder liabilities | 143,781 | 139,222 | ||||
Deferred Federal income tax liability | 40,001 | 31,675 | ||||
Federal income tax payable | — | 3,336 | ||||
Other liabilities | 117,853 | 98,817 | ||||
Total liabilities | 9,923,166 | 9,795,572 | ||||
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 2015 and 2014 | 3,436 | 3,436 | ||||
Class B - $1 par value; 200,000 shares authorized, issued, and outstanding in 2015 and 2014 | 200 | 200 | ||||
Additional paid-in capital | 38,116 | 38,116 | ||||
Accumulated other comprehensive income | 27,410 | 41,786 | ||||
Retained earnings | 1,522,966 | 1,472,782 | ||||
Total stockholders’ equity | 1,592,128 | 1,556,320 | ||||
Total liabilities and stockholders' equity | $ | 11,515,294 | 11,351,892 |
2015 | 2014 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 38,345 | 38,217 | ||||
Traditional life premiums | 5,162 | 5,169 | |||||
Net investment income | 102,259 | 155,179 | |||||
Other revenues | 5,194 | 5,211 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | (2 | ) | — | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (105 | ) | — | ||||
Net OTTI losses recognized in earnings | (107 | ) | — | ||||
Other net investment gains (losses) | 4,365 | 3,065 | |||||
Total net realized investment gains (losses) | 4,258 | 3,065 | |||||
Total revenues | 155,218 | 206,841 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 16,120 | 14,796 | |||||
Amortization of deferred policy acquisition costs | 28,070 | 27,258 | |||||
Universal life and annuity contract interest | 49,431 | 102,429 | |||||
Other operating expenses | 18,802 | 19,500 | |||||
Total benefits and expenses | 112,423 | 163,983 | |||||
Earnings before Federal income taxes | 42,795 | 42,858 | |||||
Federal income taxes | 13,937 | 13,675 | |||||
Net earnings | $ | 28,858 | 29,183 | ||||
Basic earnings per share: | |||||||
Class A | $ | 8.16 | $ | 8.26 | |||
Class B | $ | 4.08 | $ | 4.13 | |||
Diluted earnings per share: | |||||||
Class A | $ | 8.16 | $ | 8.25 | |||
Class B | $ | 4.08 | $ | 4.13 |
2015 | 2014 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | $ | 75,658 | 76,222 | ||||
Traditional life premiums | 9,509 | 9,440 | |||||
Net investment income | 202,182 | 263,630 | |||||
Other revenues | 10,523 | 10,974 | |||||
Net realized investment gains (losses): | |||||||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 158 | (32 | ) | ||||
Portion of OTTI (gains) losses recognized in other comprehensive income | (265 | ) | (3 | ) | |||
Net OTTI losses recognized in earnings | (107 | ) | (35 | ) | |||
Other net investment gains (losses) | 5,343 | 4,613 | |||||
Total net realized investment gains (losses) | 5,236 | 4,578 | |||||
Total revenues | 303,108 | 364,844 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 35,386 | 27,759 | |||||
Amortization of deferred policy acquisition costs | 55,722 | 55,837 | |||||
Universal life and annuity contract interest | 98,470 | 165,365 | |||||
Other operating expenses | 39,312 | 42,963 | |||||
Total benefits and expenses | 228,890 | 291,924 | |||||
Earnings before Federal income taxes | 74,218 | 72,920 | |||||
Federal income taxes | 24,034 | 23,911 | |||||
Net earnings | $ | 50,184 | 49,009 | ||||
Basic earnings per share: | |||||||
Class A | $ | 14.19 | $ | 13.86 | |||
Class B | $ | 7.10 | $ | 6.93 | |||
Diluted earnings per share: | |||||||
Class A | $ | 14.19 | $ | 13.86 | |||
Class B | $ | 7.10 | $ | 6.93 | |||
2015 | 2014 | |||||
Net earnings | $ | 28,858 | 29,183 | |||
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 | (21,202 | ) | 10,892 | |||
Net unrealized liquidity gains (losses) | 32 | 28 | ||||
Reclassification adjustment for net amounts included in net earnings | (1,855 | ) | (1,946 | ) | ||
Net unrealized gains (losses) on securities | (23,025 | ) | 8,974 | |||
Foreign currency translation adjustments | (53 | ) | (122 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (304 | ) | (175 | ) | ||
Other comprehensive income (loss) | (23,382 | ) | 8,677 | |||
Comprehensive income (loss) | $ | 5,476 | 37,860 |
2015 | 2014 | |||||
Net earnings | $ | 50,184 | 49,009 | |||
Other comprehensive income, net of effects of deferred costs and taxes: | ||||||
Unrealized gains (losses) on securities: | ||||||
Net unrealized holding gains (losses) arising during period | (11,830 | ) | 21,894 | |||
Net unrealized liquidity gains (losses) | 93 | 51 | ||||
Reclassification adjustment for net amounts included in net earnings | (2,020 | ) | (2,371 | ) | ||
Net unrealized gains (losses) on securities | (13,757 | ) | 19,574 | |||
Foreign currency translation adjustments | (12 | ) | (633 | ) | ||
Benefit plans: | ||||||
Amortization of net prior service cost and net gain (loss) | (607 | ) | (351 | ) | ||
Other comprehensive income (loss) | (14,376 | ) | 18,590 | |||
Comprehensive income (loss) | $ | 35,808 | 67,599 | |||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY For the Six Months Ended June 30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Common stock: | |||||||
Balance at beginning of period | $ | 3,636 | 3,635 | ||||
Shares exercised under stock option plan | — | 1 | |||||
Balance at end of period | 3,636 | 3,636 | |||||
Additional paid-in capital: | |||||||
Balance at beginning of period | 38,116 | 37,767 | |||||
Shares exercised under stock option plan | — | 349 | |||||
Balance at end of period | 38,116 | 38,116 | |||||
Accumulated other comprehensive income: | |||||||
Unrealized gains on non-impaired securities: | |||||||
Balance at beginning of period | 54,229 | 46,693 | |||||
Change in unrealized gains (losses) during period, net of tax | (13,850 | ) | 19,523 | ||||
Balance at end of period | 40,379 | 66,216 | |||||
Unrealized losses on impaired held to maturity securities: | |||||||
Balance at beginning of period | (1,262 | ) | (1,287 | ) | |||
Amortization | 172 | 117 | |||||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Additional credit loss on previously impaired securities | — | — | |||||
Change in shadow deferred policy acquisition costs | (79 | ) | (67 | ) | |||
Balance at end of period | (1,169 | ) | (1,237 | ) | |||
Unrealized losses on impaired available for sale securities: | |||||||
Balance at beginning of period | (1 | ) | (2 | ) | |||
Other-than-temporary impairments, non-credit, net of tax | — | — | |||||
Change in shadow deferred policy acquisition costs | — | (1 | ) | ||||
Recoveries, net of tax | — | 2 | |||||
Balance at end of period | (1 | ) | (1 | ) | |||
Continued on Next Page | |||||||
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY(continued) For the Six Months Ended June30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Foreign currency translation adjustments: | |||||||
Balance at beginning of period | 2,685 | 3,241 | |||||
Change in translation adjustments during period | (12 | ) | (633 | ) | |||
Balance at end of period | 2,673 | 2,608 | |||||
Benefit plan liability adjustment: | |||||||
Balance at beginning of period | (13,865 | ) | (10,565 | ) | |||
Amortization of net prior service cost and net loss, net of tax | (607 | ) | (351 | ) | |||
Balance at end of period | (14,472 | ) | (10,916 | ) | |||
Accumulated other comprehensive income at end of period | 27,410 | 56,670 | |||||
Retained earnings: | |||||||
Balance at beginning of period | 1,472,782 | 1,368,466 | |||||
Net earnings | 50,184 | 49,009 | |||||
Stockholder dividends | — | — | |||||
Balance at end of period | 1,522,966 | 1,417,475 | |||||
Total stockholders' equity | $ | 1,592,128 | $ | 1,515,897 |
NATIONAL WESTERN LIFE INSURANCE COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net earnings | $ | 50,184 | 49,009 | ||||
Adjustments to reconcile net earnings to net cash from operating activities: | |||||||
Universal life and annuity contract interest | 98,470 | 165,365 | |||||
Surrender charges and other policy revenues | (8,302 | ) | (9,104 | ) | |||
Realized (gains) losses on investments | (5,236 | ) | (4,578 | ) | |||
Accretion/amortization of discounts and premiums, investments | 102 | (465 | ) | ||||
Depreciation and amortization | 1,671 | 1,741 | |||||
(Increase) decrease in value of derivatives | 17,069 | (45,799 | ) | ||||
(Increase) decrease in deferred policy acquisition and sales inducement costs | (2,190 | ) | (6,062 | ) | |||
(Increase) decrease in accrued investment income | (3,311 | ) | (449 | ) | |||
(Increase) decrease in other assets | (6,938 | ) | (1,635 | ) | |||
Increase (decrease) in liabilities for future policy benefits | 2,588 | 1,344 | |||||
Increase (decrease) in other policyholder liabilities | 4,558 | 7,127 | |||||
Increase (decrease) in Federal income taxes liability | (10,882 | ) | (13,501 | ) | |||
Increase (decrease) in deferred Federal income tax | 15,735 | 12,517 | |||||
Increase (decrease) in other liabilities | 4,658 | (2,806 | ) | ||||
Other, net | — | (1 | ) | ||||
Net cash provided by operating activities | 158,176 | 152,703 | |||||
Cash flows from investing activities: | |||||||
Proceeds from sales of: | |||||||
Securities held to maturity | — | — | |||||
Securities available for sale | 13,131 | 5,334 | |||||
Other investments | — | 1,016 | |||||
Proceeds from maturities and redemptions of: | |||||||
Securities held to maturity | 257,063 | 360,420 | |||||
Securities available for sale | 163,057 | 102,813 | |||||
Derivatives, index options | 64,619 | 105,268 | |||||
Purchases of: | |||||||
Securities held to maturity | (534,663 | ) | (477,353 | ) | |||
Securities available for sale | (310,637 | ) | (195,023 | ) | |||
Derivatives, index options | (40,977 | ) | (33,610 | ) | |||
Other investments | (420 | ) | (296 | ) | |||
Net change in short-term investments | — | — | |||||
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, 2015 and 2014 (Unaudited) (In thousands) | |||||||
2015 | 2014 | ||||||
Principal payments on mortgage loans | 18,962 | 10,240 | |||||
Cost of mortgage loans acquired | (1,632 | ) | (29,611 | ) | |||
Decrease (increase) in policy loans | 1,712 | 981 | |||||
Other, net | — | 2 | |||||
Net cash used in investing activities | (369,785 | ) | (149,819 | ) | |||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts | 452,124 | 460,611 | |||||
Return of account balances on universal life and annuity contracts | (445,871 | ) | (450,565 | ) | |||
Issuance of common stock under stock option plan | — | 350 | |||||
Net cash provided by (used in) financing activities | 6,253 | 10,396 | |||||
Effect of foreign exchange | (12 | ) | (633 | ) | |||
Net increase (decrease) in cash and cash equivalents | (205,368 | ) | 12,647 | ||||
Cash and cash equivalents at beginning of period | 277,078 | 120,859 | |||||
Cash and cash equivalents at end of period | $ | 71,710 | $ | 133,506 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 20 | 20 | ||||
Income taxes | $ | 22,647 | 24,416 | ||||
Noncash operating activities: | |||||||
Deferral of sales inducements | $ | (6,895 | ) | (4,851 | ) |
(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, | ||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||
(In thousands) | |||||||||||||
Other net investment gains (losses) | $ | 2,961 | 2,993 | 3,215 | 3,682 | ||||||||
Net OTTI losses recognized in earnings | (107 | ) | — | (107 | ) | (35 | ) | ||||||
Earnings before Federal income taxes | 2,854 | 2,993 | 3,108 | 3,647 | |||||||||
Federal income taxes | 999 | 1,047 | 1,088 | 1,276 | |||||||||
Net earnings | $ | 1,855 | 1,946 | 2,020 | 2,371 |
(2) | NEW ACCOUNTING PRONOUNCEMENTS |
(3) | STOCKHOLDERS' EQUITY |
(4) | EARNINGS PER SHARE |
Three Months Ended June 30, | ||||||||||||
2015 | 2014 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 28,858 | 29,183 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 28,858 | 29,183 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 28,042 | 816 | 28,358 | 825 | ||||||||
Net income | $ | 28,042 | 816 | 28,358 | 825 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 1 | — | 2 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 8.16 | 4.08 | 8.26 | 4.13 | |||||||
Diluted Earnings Per Share | $ | 8.16 | 4.08 | 8.25 | 4.13 |
Six Months Ended June 30, | ||||||||||||
2015 | 2014 | |||||||||||
Class A | Class B | Class A | Class B | |||||||||
(In thousands except per share amounts) | ||||||||||||
Numerator for Basic and Diluted Earnings Per Share: | ||||||||||||
Net income | $ | 50,184 | 49,009 | |||||||||
Dividends - Class A shares | — | — | ||||||||||
Dividends - Class B shares | — | — | ||||||||||
Undistributed income | $ | 50,184 | 49,009 | |||||||||
Allocation of net income: | ||||||||||||
Dividends | $ | — | — | — | — | |||||||
Allocation of undistributed income | 48,765 | 1,419 | 47,623 | 1,386 | ||||||||
Net income | $ | 48,765 | 1,419 | 47,623 | 1,386 | |||||||
Denominator: | ||||||||||||
Basic earnings per share - weighted-average shares | 3,436 | 200 | 3,435 | 200 | ||||||||
Effect of dilutive stock options | 1 | — | 2 | — | ||||||||
Diluted earnings per share - adjusted weighted-average shares for assumed conversions | 3,437 | 200 | 3,437 | 200 | ||||||||
Basic Earnings Per Share | $ | 14.19 | 7.10 | 13.86 | 6.93 | |||||||
Diluted Earnings Per Share | $ | 14.19 | 7.10 | 13.86 | 6.93 |
(5) | PENSION AND OTHER POSTRETIREMENT PLANS |
(A) | Defined Benefit Pension Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 51 | 42 | 102 | 84 | |||||||
Interest cost | 246 | 239 | 492 | 479 | ||||||||
Expected return on plan assets | (330 | ) | (319 | ) | (660 | ) | (639 | ) | ||||
Amortization of prior service cost | 1 | 1 | 2 | 2 | ||||||||
Amortization of net loss | 196 | 106 | 392 | 211 | ||||||||
Net periodic benefit cost | $ | 164 | 69 | 328 | 137 |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Service cost | $ | 64 | 74 | 128 | 147 | |||||||
Interest cost | 219 | 251 | 438 | 502 | ||||||||
Amortization of prior service cost | 15 | 14 | 30 | 29 | ||||||||
Amortization of net loss | 379 | 324 | 757 | 647 | ||||||||
Net periodic benefit cost | $ | 677 | 663 | 1,353 | 1,325 |
(B) | Defined Benefit Postretirement Healthcare Plans |
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Interest cost | $ | 33 | 27 | 65 | 55 | |||||||
Amortization of prior service cost | 26 | 26 | 52 | 52 | ||||||||
Amortization of net loss | 15 | (1 | ) | 30 | (2 | ) | ||||||
Net periodic benefit cost | $ | 74 | 52 | 147 | 105 |
(6) | SEGMENT AND OTHER OPERATING INFORMATION |
Selected Segment Information: | |||||||||||||||
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Balance Sheet Items: | |||||||||||||||
Deferred policy acquisition costs and sales inducements | $ | 70,561 | 254,785 | 657,108 | — | 982,454 | |||||||||
Total segment assets | 811,768 | 1,247,941 | 9,000,323 | 264,269 | 11,324,301 | ||||||||||
Future policy benefits | 702,621 | 954,684 | 7,964,226 | — | 9,621,531 | ||||||||||
Other policyholder liabilities | 11,846 | 16,398 | 115,537 | — | 143,781 | ||||||||||
Three Months Ended | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 7,937 | 29,364 | 6,206 | — | 43,507 | |||||||||
Net investment income | 8,005 | 8,785 | 79,509 | 5,960 | 102,259 | ||||||||||
Other revenues | 4 | (25 | ) | 4 | 5,211 | 5,194 | |||||||||
Total revenues | 15,946 | 38,124 | 85,719 | 11,171 | 150,960 | ||||||||||
Life and other policy benefits | 3,882 | 5,587 | 6,651 | — | 16,120 | ||||||||||
Amortization of deferred acquisition costs | 1,698 | 5,163 | 21,209 | — | 28,070 | ||||||||||
Universal life and annuity contract interest | 5,460 | 6,927 | 37,044 | — | 49,431 | ||||||||||
Other operating expenses | 3,442 | 5,212 | 5,434 | 4,714 | 18,802 | ||||||||||
Federal income taxes (benefit) | 467 | 4,932 | 4,961 | 2,086 | 12,446 | ||||||||||
Total expenses | 14,949 | 27,821 | 75,299 | 6,800 | 124,869 | ||||||||||
Segment earnings (loss) | $ | 997 | 10,303 | 10,420 | 4,371 | 26,091 |
Domestic Life Insurance | International Life Insurance | Annuities | All Others | Totals | |||||||||||
(In thousands) | |||||||||||||||
Six months ended | |||||||||||||||
June 30, 2015 | |||||||||||||||
Condensed Consolidated Income Statements: | |||||||||||||||
Premiums and contract revenues | $ | 14,424 | 59,697 | 11,046 | — | 85,167 | |||||||||
Net investment income | 15,170 | 17,399 | 158,745 | 10,868 | 202,182 | ||||||||||
Other revenues | 20 | 61 | 19 | 10,423 | 10,523 | ||||||||||
Total revenues | 29,614 | 77,157 | 169,810 | 21,291 | 297,872 | ||||||||||
Life and other policy benefits | 8,995 | 11,792 | 14,599 | — | 35,386 | ||||||||||
Amortization of deferred acquisition costs | 4,879 | 4,513 | 46,330 | — | 55,722 | ||||||||||
Universal life and annuity contract interest | 10,399 | 14,057 | 74,014 | — | 98,470 | ||||||||||
Other operating expenses | 7,157 | 11,134 | 11,612 | 9,409 | 39,312 | ||||||||||
Federal income taxes (benefit) | (584 | ) | 11,477 | 7,484 | 3,824 | 22,201 | |||||||||
Total expenses | 30,846 | 52,973 | 154,039 | 13,233 | 251,091 | ||||||||||
Segment earnings (loss) | $ | (1,232 | ) | 24,184 | 15,771 | 8,058 | 46,781 | ||||||||
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 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Premiums and Other Revenues: | ||||||||||||
Premiums and contract revenues | $ | 43,507 | 43,386 | 85,167 | 85,662 | |||||||
Net investment income | 102,259 | 155,179 | 202,182 | 263,630 | ||||||||
Other revenues | 5,194 | 5,211 | 10,523 | 10,974 | ||||||||
Realized gains (losses) on investments | 4,258 | 3,065 | 5,236 | 4,578 | ||||||||
Total condensed consolidated premiums and other revenues | $ | 155,218 | 206,841 | 303,108 | 364,844 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||
(In thousands) | ||||||||||||
Federal Income Taxes: | ||||||||||||
Total segment Federal income taxes | $ | 12,446 | 12,602 | 22,201 | < |