Segment and Other Operating Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment and Other Operating Information

SEGMENT AND OTHER OPERATING INFORMATION

(A)  Operating Segment Information

The Company defines its reportable operating segments as domestic life insurance, international life insurance, and annuities.  The Company's segments are organized based on product types and geographic marketing areas.  In addition, the Company regularly evaluates operating performance using non-GAAP financial measures which exclude or segregate realized investment gains and losses from operating revenues and earnings.  The Company believes that the presentation of these non-GAAP financial measures enhances the understanding of the Company's results of operations by highlighting the results from ongoing operations and the underlying profitability factors of the Company's business.  The Company excludes or segregates realized investment gains and losses because such items are often the result of events which may or may not be at the Company's discretion and the fluctuating effects of these items could distort trends in the underlying profitability of the Company's business.

A summary of segment information, prepared in accordance with GAAP guidance, is provided below.

	Domestic Life Insurance		International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2014:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	64,279	245,353	653,053	—	962,685
Total segment assets	746,051		1,250,629	8,933,274	257,568	11,187,522
Future policy benefits	648,865		953,076	7,920,582	—	9,522,523
Other policyholder liabilities	12,159		11,898	115,165	—	139,222
Condensed Income Statements:
Premiums and contract charges	$	28,801	118,838	22,476	—	170,115
Net investment income	34,695		51,539	398,163	21,033	505,430
Other revenues	55		372	68	21,135	21,630
Total revenues	63,551		170,749	420,707	42,168	697,175
Life and other policy benefits	11,856		24,034	18,405	—	54,295
Amortization of deferred policy acquisition costs	6,913		21,807	86,434	—	115,154
Universal life and annuity contract interest	27,050		46,255	224,954	—	298,259
Other operating expenses	13,547		23,449	27,015	19,540	83,551
Federal income taxes (benefit)	1,373		18,112	20,964	7,424	47,873
Total expenses	60,739		133,657	377,772	26,964	599,132
Segment earnings (loss)	$	2,812	37,092	42,935	15,204	98,043

	Domestic Life Insurance		International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2013:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	53,540	240,468	661,268	—	955,276
Total segment assets	610,570		1,200,347	8,586,871	260,007	10,657,795
Future policy benefits	535,710		913,339	7,676,085	—	9,125,134
Other policyholder liabilities	11,450		14,618	116,519	—	142,587
Condensed Income Statements:
Premiums and contract charges	$	29,567	117,668	20,231	—	167,466
Net investment income	33,818		63,504	543,077	20,033	660,432
Other revenues	29		299	45	23,343	23,716
Total revenues	63,414		181,471	563,353	43,376	851,614
Life and other policy benefits	11,660		25,706	22,684	—	60,050
Amortization of deferred policy acquisition costs	6,738		18,946	82,549	—	108,233
Universal life and annuity contract interest	26,427		58,757	369,410	—	454,594
Other operating expenses	15,515		25,624	33,325	21,229	95,693
Federal income taxes (benefit)	980		16,720	17,660	7,062	42,422
Total expenses	61,320		145,753	525,628	28,291	760,992
Segment earnings (loss)	$	2,094	35,718	37,725	15,085	90,622

	Domestic Life Insurance		International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2012:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	40,810	226,899	590,532	—	858,241
Total segment assets	463,569		1,105,862	8,269,445	242,404	10,081,280
Future policy benefits	398,202		846,028	7,324,624	—	8,568,854
Other policyholder liabilities	10,468		13,074	125,019	—	148,561
Condensed Income Statements:
Premiums and contract charges	$	31,143	114,605	22,196	—	167,944
Net investment income	21,194		43,469	375,431	19,954	460,048
Other revenues	62		485	80	22,843	23,470
Total revenues	52,399		158,559	397,707	42,797	651,462
Life and other policy benefits	10,633		20,877	20,332	—	51,842
Amortization of deferred policy acquisition costs	7,461		18,103	96,358	—	121,922
Universal life and annuity contract interest	17,507		39,639	205,193	—	262,339
Other operating expenses	14,895		26,007	25,456	21,620	87,978
Federal income taxes (benefit)	648		18,377	17,162	7,216	43,403
Total expenses	51,144		123,003	364,501	28,836	567,484
Segment earnings (loss)	$	1,255	35,556	33,206	13,961	83,978

Reconciliations of segment information to the Company's consolidated financial statements are provided below.

	Years Ended December 31,
	2014		2013	2012
	(In thousands)
Premiums and Other Revenue:
Premiums and contract charges	$	170,115	167,466	167,944
Net investment income	505,430		660,432	460,048
Other revenues	21,630		23,716	23,470
Realized gains (losses) on investments	11,605		8,653	13,200
Total consolidated premiums and other revenue	$	708,780	860,267	664,662

	Years Ended December 31,
	2014		2013	2012
	(In thousands)
Federal Income Taxes:
Total segment Federal income taxes	$	47,873	42,422	43,403
Taxes on realized gains (losses) on investments	4,060		3,028	4,620
Total taxes on consolidated net earnings	$	51,933	45,450	48,023

	Years Ended December 31,
	2014		2013	2012
	(In thousands)
Net Earnings:
Total segment earnings	$	98,043	90,622	83,978
Realized gains (losses) on investments, net of taxes	7,545		5,625	8,580
Total consolidated net earnings	$	105,588	96,247	92,558

	December 31,
	2014		2013	2012
	(In thousands)
Assets:
Total segment assets	$	11,187,522	10,657,795	10,081,280
Other unallocated assets	164,370		172,621	182,578
Total consolidated assets	$	11,351,892	10,830,416	10,263,858

(B)  Geographic Information

A significant portion of the Company's premiums and contract revenues are from countries other than the United States. Premiums and contract revenues detailed by country are provided below.

	Years Ended December 31,
	2014			2013		2012
	(In thousands)
United States	$	65,078		64,267		67,924
Brazil	38,563			38,205		38,605
Venezuela	14,931			14,017		12,223
Taiwan	14,166			14,047		13,958
Peru	10,327			9,366		8,691
Argentina	9,324			9,102		9,818
Other foreign countries	36,775			37,203		36,509
Revenues, excluding reinsurance premiums	189,164			186,207		187,728
Reinsurance premiums	(19,049		)	(18,741	)	(19,784	)
Total premiums and contract revenues	$	170,115		167,466		167,944

Premiums and contract revenues are attributed to countries based on the location of the policyholder. The Company has no significant assets, other than financial instruments, located in countries other than the United States.

(C)  Major Agency Relationships

A portion exceeding 10% of the Company's annuity sales was sold through one of its top independent marketing agencies in recent years. Business from this top agency accounted for approximately 16% of annuity sales in 2014.