Discontinued Operations

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On September 18, 2017, we signed a definitive agreement to sell our subsidiary, United Life, to Kuvare for $280,000 in cash, less a $21 adjustment as set forth in the definitive agreement, for a net amount of $279,979. The sale closed on March 30, 2018 and we reported an after-tax gain on the sale of discontinued operations of $27,307. The life insurance business (previously reported as a separate segment) was considered held for sale and reported as discontinued operations and its financial position, results of operations and cash flows were reported separately for all periods presented, as applicable, unless otherwise noted.

UFG has agreed to provide services to Kuvare through a transition services agreement ("TSA"). The TSA ensures a

seamless transfer of the business between UFG and Kuvare. The TSA includes, among other considerations, accounting management, human resources, legal and information technology services, from the closing date for up to 24 months. Since the close date, the Company has received $717 as part of the TSA agreement.

Summary operating results of discontinued operations were as follows for the periods indicated:

Discontinued Operations
Statements of Income (Unaudited)
	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands, Except Share Data)	2019		2018		2019		2018
Revenues
Net premiums earned	$	—	$	—	$	—	$	13,003
Investment income, net of investment expenses	—		—		—		12,663
Net realized investment gains (losses)	—		—		—		(1,057		)
Other income	—		—		—		146
Total revenues	$	—	$	—	$	—	$	24,755
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	—	$	—	$	—	$	10,823
Increase in liability for future policy benefits	—		—		—		5,023
Amortization of deferred policy acquisition costs	—		—		—		1,895
Other underwriting expenses	—		—		—		3,864
Interest on policyholders’ accounts	—		—		—		4,499
Total benefits, losses and expenses	$	—	$	—	$	—	$	26,104
Income (loss) from discontinued operations before income taxes	$	—	$	—	$	—	$	(1,349	)
Federal income tax expense	—		—		—		563
Net income (loss) from discontinued operations	$	—	$	—	$	—	$	(1,912	)
Earnings (loss) per common share from discontinued operations:
Basic	$	—	$	—	$	—	(0.08		)
Diluted	—		—		—		(0.07		)

Note: The sale of the life insurance business was completed on March 30, 2018.

The Company's Consolidated Statement of Cash Flows presents operating, investing and financing cash flows of the discontinued operations separately. The Company's cash management and financial management of both continued and discontinued operations is consolidated as a centralized corporate function in our Finance Department.