Business Segments (Tables)

12 Months Ended

Dec. 31, 2011

Schedule Of Segment Premium Revenue By Each Marketing Group



	For the Year 2011
	Life				Health				Annuity				Total
Distribution Channel	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
United American Independent	$	22,846		1	$	306,490		33	$	608		100	$	329,944		12
Liberty National Exclusive		288,308		17		290,107		31						578,415		22
American Income Exclusive		607,914		35		80,119		9						688,033		26
Direct Response		593,650		35		57,067		6						650,717		25
Medicare Part D						196,710		21						196,710		7
Other		213,526		12										213,526		8

	$	1,726,244		100	$	930,493		100	$	608		100	$	2,657,345		100


	For the Year 2010
	Life				Health				Annuity				Total
Distribution Channel	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
United American Independent	$	25,534		1	$	314,524		32	$	638		100	$	340,696		13
Liberty National Exclusive		294,587		18		331,056		34						625,643		24
American Income Exclusive		560,649		34		79,059		8						639,708		24
Direct Response		566,604		34		54,328		5						620,932		23
Medicare Part D						208,970		21						208,970		8
Other		216,325		13										216,325		8

	$	1,663,699		100	$	987,937		100	$	638		100	$	2,652,274		100


	For the Year 2009
	Life				Health				Annuity				Total
Distribution Channel	Amount		% of Total		Amount		% of Total		Amount		% of Total		Amount		% of Total
United American Independent	$	28,498		2	$	326,442		32	$	541		100	$	355,481		14
Liberty National Exclusive		298,485		19		388,522		38						687,007		26
American Income Exclusive		507,899		32		75,097		7						582,996		22
Direct Response		536,878		33		46,555		5						583,433		22
Medicare Part D						183,586		18						183,586		7
Other		220,093		14										220,093		9

	$	1,591,853		100	$	1,020,202		100	$	541		100	$	2,612,596		100

Reconciliation Of Revenues And Operations By Segment To Its Major Income Statement Line Items


	For the Year 2011
	Life			Health			Annuity			Investment			Other			Corporate			Adjustments			Consolidated
Revenue:
Premium	$	1,726,244		$	930,493		$	608											$	(1,027	)⁽¹⁾	$	2,656,318
Net investment income										$	707,041									(14,013	)⁽^2,5)		693,028
Other income													$	2,507						(356	)⁽⁴⁾		2,151

Total revenue		1,726,244			930,493			608			707,041			2,507						(15,396	)		3,351,497
Expenses:
Policy benefits		1,118,909			632,847			42,547												(1,027	)⁽¹⁾		1,793,276
Required interest on net reserves		(458,029	)		(36,729	)		(57,040	)		551,798												0
Amortization of acquisition costs		503,649			123,442			12,688			(214,998	)											424,781
Commissions and premium tax		75,480			48,942			68												(356	)⁽⁴⁾		124,134
Insurance administrative expense⁽³⁾														159,109						19,880	^(6,7,8)		178,989
Parent expense																$	7,693						7,693
Stock-based compensation expense																	14,954						14,954
Interest expense											77,644									264	⁽²⁾		77,908

Total expenses		1,240,009			768,502			(1,737	)		414,444			159,109			22,647			18,761			2,621,735

Sub total		486,235			161,991			2,345			292,597			(156,602	)		(22,647	)		(34,157	)		729,762
Non operating items																				19,880	^(6,7,8)		19,880
Amortization of low-income housing interests																				14,277	⁽⁵⁾		14,277

Measure of segment profitability (pretax)	$	486,235		$	161,991		$	2,345		$	292,597		$	(156,602	)	$	(22,647	)	$	0			763,919

Deduct applicable income taxes																							(249,495	)

Segment profits after tax																							514,424

Add back income taxes applicable to segment profitability																							249,495
Add (deduct) realized investment gains (losses)																							25,904
Deduct amortization of low-income housing⁽⁵⁾																							(14,277	)
Deduct state administrative settlement expense⁽⁶⁾																							(6,901	)
Deduct loss on sale of equipment⁽⁷⁾																							(979	)
Deduct litigation expense⁽⁸⁾																							(12,000	)

Pretax income per Consolidated Statement of Operations																						$	755,666

(1)

Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.

(2)

Reclassification of interest amount due to accounting rule requiring deconsolidation of Trust Preferred Securities.

(3)

Administrative expense is not allocated to insurance segments.

(4)

Elimination of intersegment commission.

(5)

Amortization of low-income housing interests.

(6)

State administrative settlement expense.

(7)

Loss on sale of equipment.

(8)

Litigation expense.


	For the Year 2010
	Life			Health			Annuity			Investment			Other			Corporate			Adjustments			Consolidated
Revenue:
Premium	$	1,663,699		$	987,937		$	638											$	(516	)⁽¹⁾	$	2,651,758
Net investment income										$	685,253									(8,889	)^(2,5)		676,364
Other income													$	2,834						(664	)⁽⁴⁾		2,170

Total revenue		1,663,699			987,937			638			685,253			2,834						(10,069	)		3,330,292
Expenses:
Policy benefits		1,082,423			669,707			41,430												(516	)⁽¹⁾		1,793,044
Required interest on net reserves		(434,319	)		(35,368	)		(51,996	)		521,683												0
Amortization of acquisition costs		487,770			130,238			9,722			(208,840	)											418,890
Commissions and premium tax		72,559			53,301			134												(664	)⁽⁴⁾		125,330
Insurance administrative expense⁽³⁾														155,615									155,615
Parent expense																$	8,809						8,809
Stock-based compensation expense																	11,848						11,848
Interest expense											75,265									264	⁽²⁾		75,529

Total expenses		1,208,433			817,878			(710	)		388,108			155,615			20,657			(916	)		2,589,065

Subtotal		455,266			170,059			1,348			297,145			(152,781	)		(20,657	)		(9,153	)		741,227
Amortization of low-income housing interests																				9,153	⁽⁵⁾		9,153

Measure of segment profitability (pretax)	$	455,266		$	170,059		$	1,348		$	297,145		$	(152,781	)	$	(20,657	)	$	0			750,380

Deduct applicable income taxes																							(252,357	)

Segment profits after tax																							498,023


Add back income taxes applicable to segment profitability																							252,357
Add (deduct) realized investment gains (losses)																							37,340
Deduct amortization of low-income housing⁽⁵⁾																							(9,153	)

Pretax income per Consolidated Statement of Operations																						$	778,567

(1)

Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.

(2)

Reclassification of interest amount due to accounting rule requiring deconsolidation of Trust Preferred Securities.

(3)

Administrative expense is not allocated to insurance segments.

(4)

Elimination of intersegment commission.

(5)

Amortization of low-income housing interests, previously considered a reduction of consolidated pretax segment profitability.


	For the Year 2009
	Life			Health			Annuity			Investment			Other			Corporate			Adjustments			Consolidated
Revenue:
Premium	$	1,591,853		$	1,020,202		$	541											$	(2,491	)⁽¹⁾	$	2,610,105
Net investment income										$	632,276									264	⁽²⁾		632,540
Other income													$	2,914						(994	)⁽⁴⁾		1,920

Total revenue		1,591,853			1,020,202			541			632,276			2,914						(3,221	)		3,244,565
Expenses:
Policy benefits		1,040,248			679,810			35,762												(2,491	)⁽¹⁾		1,753,329
Required interest on net reserves		(410,917	)		(34,243	)		(41,840	)		487,000												0
Amortization of acquisition costs		462,837			147,151			6,040			(200,042	)											415,986
Commissions and premium tax		72,273			57,074			267												(994	)⁽⁴⁾		128,620
Insurance administrative expense⁽³⁾														150,325						355	⁽⁵⁾		150,680
Parent expense																$	9,590						9,590
Stock-based compensation expense																	9,860						9,860
Interest expense											69,668									264	⁽²⁾		69,932

Total expenses		1,164,441			849,792			229			356,626			150,325			19,450			(2,866	)		2,537,997

Subtotal		427,412			170,410			312			275,650			(147,411	)		(19,450	)		(355	)		706,568
Nonoperating items																				355	⁽⁵⁾		355

Measure of segment profitability (pretax)	$	427,412		$	170,410		$	312		$	275,650		$	(147,411	)	$	(19,450	)	$	0			706,923

Deduct applicable income taxes																							(238,153	)

Segment profits after tax																							468,770

Add back income taxes applicable to segment profitability																							238,153
Add (deduct) realized investment gains (losses) and impairments																							(129,492	)
Deduct loss on Company-occupied property⁽⁵⁾																							(355	)

Pretax income per Consolidated Statement of Operations																						$	577,076

(1)

Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.

(2)

Reclassification of interest amount due to accounting rule requiring deconsolidation of Trust Preferred Securities.

(3)

Administrative expense is not allocated to insurance segments.

(4)

Elimination of intersegment commission.

(5)

Loss on Company-occupied property.

Analysis Of Profitability By Segment


	2011			2010*			2009			2011 Change			%			2010 Change			%
Life insurance underwriting margin	$	486,235		$	455,266		$	427,412		$	30,969			7		$	27,854			7
Health insurance underwriting margin		161,991			170,059			170,410			(8,068	)		(5	)		(351	)		0
Annuity underwriting margin		2,345			1,348			312			997						1,036
Other insurance:
Other income		2,507			2,834			2,914			(327	)		(12	)		(80	)		(3	)
Administrative expense		(159,109	)		(155,615	)		(150,325	)		(3,494	)		2			(5,290	)		4
Excess investment income		292,597			297,145			275,650			(4,548	)		(2	)		21,495			8
Corporate and adjustments		(22,647	)		(20,657	)		(19,450	)		(1,990	)		10			(1,207	)		6

Pre-tax total		763,919			750,380			706,923			13,539			2			43,457			6
Applicable taxes		(249,495	)		(252,357	)		(238,153	)		2,862			(1	)		(14,204	)		6

After-tax total, before discontinued operations		514,424			498,023			468,770			16,401			3			29,253			6
Discontinued operations (after tax)		0			27,932			26,810			(27,932	)					1,122			4

Total		514,424			525,955			495,580			(11,531	)		(2	)		30,375			6
Realized gains (losses)—investments (after tax)		16,838			24,270			(85,345	)		(7,432	)					109,615
Realized gains (losses)—discontinued operations (after tax)		0			1,852			(7,909	)		(1,852	)					9,761
Loss on disposal of discontinued operations (after tax)		(455	)		(35,013	)		0			34,558						(35,013	)
Tax settlements (after tax)		0			0			2,858			0						(2,858	)
Cost of legal settlements (after tax)		(7,800	)		0			0			(7,800	)					0
State administrative settlement (after tax)		(4,486	)		0			0			(4,486	)					0
Loss on Company-occupied property (after tax)		0			0			(231	)		0						231
Loss on sale of equipment (after tax)		(636	)		0			0			(636	)					0

Net income	$	517,885		$	517,064		$	404,953		$	821			0		$	112,111			28

During 2011, management changed the definition of total segment profits before tax to exclude the amortization of low-income housing interests, which management views as a tax expense. Accordingly, the 2010 total segment profits before tax and applicable tax amount have been updated for comparison purposes.

Assets By Segment



	At December 31, 2011
	Life		Health		Annuity		Investment		Other		Consolidated
Cash and invested assets							$	12,437,699			$	12,437,699
Accrued investment income								192,325				192,325
Deferred acquisition costs	$	2,929,739	$	520,685	$	34,427						3,484,851
Goodwill		309,609		87,282								396,891
Other assets									$	644,625		644,625

Total assets	$	3,239,348	$	607,967	$	34,427	$	12,630,024	$	644,625	$	17,156,391


	At December 31, 2010
	Life		Health		Annuity		Investment		Other		Consolidated
Cash and invested assets							$	11,563,656			$	11,563,656
Accrued investment income								183,861				183,861
Deferred acquisition costs	$	2,803,095	$	548,436	$	54,804						3,406,335
Goodwill		309,609		87,282								396,891
Other assets									$	609,019		609,019

Total assets	$	3,112,704	$	635,718	$	54,804	$	11,747,517	$	609,019	$	16,159,762

Other Balances By Segment


	At December 31, 2011
	Life		Health		Annuity		Consolidated
Future policy benefits	$	7,697,108	$	589,441	$	1,285,708	$	9,572,257
Unearned and advance premium		16,965		52,574				69,539
Policy claims and other benefits payable		118,737		103,517				222,254

Total	$	7,832,810	$	745,532	$	1,285,708	$	9,864,050


	At December 31, 2010
	Life		Health		Annuity		Consolidated
Future policy benefits	$	7,318,283	$	570,775	$	1,260,973	$	9,150,031
Unearned and advance premium		17,343		56,822				74,165
Policy claims and other benefits payable		121,000		100,598				221,598

Total	$	7,456,626	$	728,195	$	1,260,973	$	9,445,794

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

+ References+ Details

- Definition

Tabular disclosure of each significant reconciling item, other than profit (loss), revenues, or assets, in the reconciliation of totals of such items in reportable segments to the entity's corresponding consolidated amount.

+ References+ Details