SEGMENT INFORMATION

The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and Home Service Insurance portions of the Company constitute separate businesses. CICA, CICA Ltd. and CNLIC constitute the Life Insurance segment, and SPLIC, SPFIC and MGLIC constitute the Home Service Insurance segment. In addition to the Life Insurance and Home Service Insurance business, the Company also operates other non-insurance ("Other Non-Insurance Enterprises") portions of the Company, which primarily include the Company's IT and Corporate-support functions, and are included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company.

The accounting policies of the segments and Other Non-Insurance Enterprises are presented in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial statements. The Company evaluates profit and loss performance based on U.S. GAAP income before federal income taxes for its two reportable segments.

The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations.



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Three Months Ended June 30, 2019
(In thousands)

Revenues:
Premiums	$	32,140		11,664		—		43,804
Net investment income	11,612			3,325		378		15,315
Realized investment gains (losses), net	68			152		(3,089	)	(2,869	)
Other income	614			1		1		616
Total revenue	44,434			15,142		(2,710	)	56,866
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	21,316			5,708		—		27,024
Increase in future policy benefit reserves	8,519			953		—		9,472
Policyholders' dividends	1,413			10		—		1,423
Total insurance benefits paid or provided	31,248			6,671		—		37,919
Commissions	4,676			3,708		—		8,384
Other general expenses	6,458			5,332		159		11,949
Capitalization of deferred policy acquisition costs	(4,020		)	(1,392	)	—		(5,412	)
Amortization of deferred policy acquisition costs	6,053			878		—		6,931
Amortization of cost of customer relationships acquired	138			280		—		418
Total benefits and expenses	44,553			15,477		159		60,189
Loss before income tax expense	$	(119	)	(335	)	(2,869	)	(3,323	)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Six Months Ended June 30, 2019
(In thousands)

Revenues:
Premiums	$	63,054		23,214		—		86,268
Net investment income	21,781			6,411		919		29,111
Realized investment gains (losses), net	5,525			636		(3,069	)	3,092
Other income	797			2		2		801
Total revenue	91,157			30,263		(2,148	)	119,272
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	38,478			11,579		—		50,057
Increase in future policy benefit reserves	19,832			1,939		—		21,771
Policyholders' dividends	2,585			20		—		2,605
Total insurance benefits paid or provided	60,895			13,538		—		74,433
Commissions	9,049			7,219		—		16,268
Other general expenses	12,663			10,402		3,016		26,081
Capitalization of deferred policy acquisition costs	(7,722		)	(2,518	)	—		(10,240	)
Amortization of deferred policy acquisition costs	11,494			1,714		—		13,208
Amortization of cost of customer relationships acquired	260			577		—		837
Total benefits and expenses	86,639			30,932		3,016		120,587
Income (loss) before federal income tax expense	$	4,518		(669	)	(5,164	)	(1,315	)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Three Months Ended June 30, 2018
(In thousands)

Revenues:
Premiums	$	34,393		11,737		—		46,130
Net investment income	10,139			3,316		356		13,811
Realized investment losses, net	(24		)	(151	)	(3	)	(178	)
Other income	79			—		—		79
Total revenue	44,587			14,902		353		59,842
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	15,019			5,598		—		20,617
Increase in future policy benefit reserves	15,383			1,172		—		16,555
Policyholders' dividends	1,605			9		—		1,614
Total insurance benefits paid or provided	32,007			6,779		—		38,786
Commissions	4,777			3,892		—		8,669
Other general expenses	6,908			5,392		2,166		14,466
Capitalization of deferred policy acquisition costs	(4,150		)	(1,490	)	—		(5,640	)
Amortization of deferred policy acquisition costs	6,240			960		—		7,200
Amortization of cost of customer relationships acquired	132			340		—		472
Total benefits and expenses	45,914			15,873		2,166		63,953
Loss before income tax expense	$	(1,327	)	(971	)	(1,813	)	(4,111	)



	Life Insurance			Home Service		Non-Insurance Enterprises		Consolidated
Six Months Ended June 30, 2018
(In thousands)

Revenues:
Premiums	$	66,753		23,406		—		90,159
Net investment income	20,269			6,618		695		27,582
Realized investment losses, net	(209		)	(503	)	(41	)	(753	)
Other income (loss)	288			(1	)	—		287
Total revenue	87,101			29,520		654		117,275
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	30,310			11,458		—		41,768
Increase in future policy benefit reserves	28,965			2,198		—		31,163
Policyholders' dividends	2,902			19		—		2,921
Total insurance benefits paid or provided	62,177			13,675		—		75,852
Commissions	10,005			7,623		—		17,628
Other general expenses⁽¹⁾	6,024			10,936		4,013		20,973
Capitalization of deferred policy acquisition costs	(8,790		)	(2,813	)	—		(11,603	)
Amortization of deferred policy acquisition costs	12,780			2,026		—		14,806
Amortization of cost of customer relationships acquired	284			867		—		1,151
Total benefits and expenses	82,480			32,314		4,013		118,807
Income (loss) before federal income tax expense	$	4,621		(2,794	)	(3,359	)	(1,532	)