DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 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 Insurance Company, 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 $885 as part of the TSA.

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

Discontinued Operations
Statements of Income
	For the Years Ended December 31,
(In Thousands, Except Share Data)	2019		2018			2017
Revenues
Net premiums earned	$	—	$	13,003		$	61,368
Investment income, net of investment expenses	—		12,663			49,720
Total net realized investment gains (losses)	—		(1,057		)	4,008
Other income	—		146			617
Total revenues	$	—	$	24,755		$	115,713
Benefits, Losses and Expenses
Losses and loss settlement expenses	$	—	$	10,823		$	40,451
Increase in liability for future policy benefits	—		5,023			27,632
Amortization of deferred policy acquisition costs	—		1,895			5,181
Other underwriting expenses	—		3,864			13,281
Interest on policyholders’ accounts	—		4,499			18,525
Total benefits, losses and expenses	$	—	$	26,104		$	105,070
Income (loss) from discontinued operations before income taxes	$	—	$	(1,349	)	$	10,643
Federal income tax expense	—		563			4,490
Net income (loss) from discontinued operations	$	—	$	(1,912	)	$	6,153
Earnings (loss) per common share from discontinued operations:
Basic	$	—	$	(0.08	)	$	0.24
Diluted	—		(0.07		)	0.24

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.