Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 3—Discontinued Operations

During the third quarter of 2010, Torchmark's subsidiary, Liberty, entered into an agreement to sell its wholly-owned subsidiary, United Investors Life Insurance Company (United Investors), to an unaffiliated insurance carrier. The sale was completed as of December 31, 2010. United Investors marketed primarily term and interest-sensitive life insurance, fixed annuities, and, prior to 2009, variable annuities. Consideration for the sale consisted of $343 million in cash at the closing, as well as post-closing proceeds receivable from the buyer of approximately $21 million which was received in early 2011. The transaction resulted in a pretax loss of approximately $38 million ($35 million after tax), which has been reported as a realized loss on the disposal of a discontinued operation in 2010. Due to the sale, Torchmark's consolidated financial statements are presented to reflect the transactions as discontinued operations.

An analysis of income from discontinued operations is as follows:

	Twelve months ended December 31,
	2010			2009
Premium income	$	73,675		$	77,094
Investment income		43,787			42,375
Realized investment gains (losses)		2,850			(12,167	)
Other income		103			22
Total revenue*		120,415			107,324
Policyholder benefits		56,374			59,470
Amortization of deferred acquisition costs		14,599			13,267
Other expense		4,960			6,470
Total benefits and expense		75,933			79,207
Pre tax income from discontinued operations		44,482			28,117
Income tax		(14,698	)		(9,216	)
Income from discontinued operations	$	29,784		$	18,901

Revenues and profitability in the indicated segment were as follows:

	Twelve Months Ended December 31,
	2010			2009
Revenues:
Life	$	65,726		$	67,917
Annuity		7,949			9,177
Investment		43,787			42,375
Other		103			22
Total*	$	117,565		$	119,491
Segment profitability (loss):
Life	$	22,692		$	19,477
Annuity		(931	)		3,084
Investment		22,490			21,660
Other		(2,619	)		(3,937	)
Total	$	41,632		$	40,284

* Segment revenues differ from discontinued revenues by the amount of realized investment gains/losses, which Torchmark excludes from its consideration of ongoing operations.