Segment and Other Operating Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment and Other Operating Information

SEGMENT AND OTHER OPERATING INFORMATION

The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and acquired businesses. These segments are organized based on product types, geographic marketing areas, and business groupings. Ozark National and NIS have been combined into the segment "Acquired Businesses" given its inter-related marketing and sales approach which consists of a coordinated sale of a non-participating whole life insurance product (Ozark National) and a mutual fund investment product (NIS). A fifth category "All Others" primarily includes investments and earnings of non-operating subsidiaries as well as other remaining investments and assets not otherwise supporting specific segment operations.

A summary of segment information as of June 30, 2020 and December 31, 2019 for the Condensed Consolidated Balance Sheet items and for the three and six months ended June 30, 2020 and June 30, 2019 for the Condensed Consolidated Statements of Earnings (Loss) is provided below.

Condensed Consolidated Balance Sheet Items:

	June 30, 2020
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Deferred policy acquisition costs, sales inducements, and value of business acquired	$	130,961	192,498	444,772	140,429	—	908,660
Total segment assets	1,419,575		1,086,774	7,867,906	1,006,618	363,950	11,744,823
Future policy benefits	1,229,105		827,711	7,113,037	716,267	—	9,886,120
Other policyholder liabilities	14,544		12,150	94,190	14,986	—	135,870

	December 31, 2019
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Deferred policy acquisition costs, sales inducements, and value of business acquired	$	127,557	209,858	486,553	142,434	—	966,402
Total segment assets	1,399,818		1,153,105	8,198,730	978,243	362,900	12,092,796
Future policy benefits (1)	1,198,103		870,461	7,366,894	706,513	—	10,141,971
Other policyholder liabilities	18,016		14,903	80,002	14,686	—	127,607

(1) Revised to correct for an adjustment related to an understatement of reserve liabilities of $15.0 million. Refer to Note 1.

Condensed Consolidated Statements of Earnings (Loss):

	Three Months Ended June 30, 2020
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	12,009	23,061	4,699	19,841	—	59,610
Net investment income (loss)	21,475		11,153	97,666	6,549	8,851	145,694
Other revenues	1		(6)	(8)	2,319	5,280	7,586
Total revenues	33,485		34,208	102,357	28,709	14,131	212,890
Life and other policy benefits	4,169		3,684	8,880	16,698	—	33,431
Amortization of deferred policy acquisition costs and value of business acquired	3,209		6,844	19,344	1,703	—	31,100
Universal life and annuity contract interest	19,172		9,492	33,108	—	—	61,772
Other operating expenses	5,643		4,517	12,715	4,794	1,485	29,154
Federal income taxes (benefit)	172		934	6,173	1,918	2,292	11,489
Total expenses	32,365		25,471	80,220	25,113	3,777	166,946
Segment earnings (loss)	$	1,120	8,737	22,137	3,596	10,354	45,944

	Six Months Ended June 30, 2020
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	23,237	45,928	9,349	39,924	—	118,438
Net investment income	2,092		2,153	108,297	12,850	6,823	132,215
Other revenues	30		48	(4)	4,741	6,425	11,240
Total revenues	25,359		48,129	117,642	57,515	13,248	261,893
Life and other policy benefits	10,046		7,015	17,069	32,935	—	67,065
Amortization of deferred policy acquisition costs and value of business acquired	5,782		12,896	38,365	4,094	—	61,137
Universal life and annuity contract interest	(2,521)		(1,345)	37,612	—	—	33,746
Other operating expenses	9,938		7,613	19,582	8,863	2,980	48,976
Federal income taxes (benefit)	360		3,738	854	3,140	1,748	9,840
Total expenses	23,605		29,917	113,482	49,032	4,728	220,764
Segment earnings (loss)	$	1,754	18,212	4,160	8,483	8,520	41,129

	Three Months Ended June 30, 2019
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	10,706	23,777	5,857	20,380	—	60,720
Net investment income	14,995		9,276	89,572	6,007	8,574	128,424
Other revenues	20		33	64	2,290	1,559	3,966
Total revenues	25,721		33,086	95,493	28,677	10,133	193,110
Life and other policy benefits	3,829		2,959	9,876	16,993	—	33,657
Amortization of deferred acquisition costs and value of business acquired	3,307		6,948	18,750	2,406	—	31,411
Universal life and annuity contract interest	12,985		7,337	39,817	—	—	60,139
Other operating expenses	5,017		4,521	9,374	4,491	1,931	25,334
Federal income taxes (benefit)	89		2,014	3,155	956	2,323	8,537
Total expenses	25,227		23,779	80,972	24,846	4,254	159,078
Segment earnings (loss)	$	494	9,307	14,521	3,831	5,879	34,032

	Six Months Ended June 30, 2019
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	21,510	49,840	10,725	34,181	—	116,256
Net investment income	38,494		23,293	192,726	9,983	15,259	279,755
Other revenues	64		54	72	3,731	6,458	10,379
Total revenues	60,068		73,187	203,523	47,895	21,717	406,390
Life and other policy benefits	7,751		5,121	21,306	27,668	—	61,846
Amortization of deferred acquisition costs and value of business acquired	6,717		14,242	38,462	4,154	—	63,575
Universal life and annuity contract interest	34,426		19,330	87,299	—	—	141,055
Other operating expenses	9,140		8,785	16,882	7,576	9,000	51,383
Federal income taxes (benefit)	413		5,222	8,038	1,703	2,582	17,958
Total expenses	58,447		52,700	171,987	41,101	11,582	335,817
Segment earnings (loss)	$	1,621	20,487	31,536	6,794	10,135	70,573

Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below.

	Three Months Ended June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(In thousands)
Premiums and Other Revenues:
Premiums and contract revenues	$	59,610	60,720	118,438	116,256
Net investment income (loss)	145,694		128,424	132,215	279,755
Other revenues	7,586		3,966	11,240	10,379
Realized gains (losses) on investments	3,125		(425)	6,610	4,204
Total condensed consolidated premiums and other revenues	$	216,015	192,685	268,503	410,594

	Three Months Ended June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(In thousands)
Federal Income Taxes:
Total segment Federal income taxes	$	11,489	8,537	9,840	17,958
Taxes on realized gains (losses) on investments	656		(89)	1,388	883
Total condensed consolidated Federal income taxes	$	12,145	8,448	11,228	18,841

	Three Months Ended June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(In thousands)
Net Earnings:
Total segment earnings	$	45,944	34,032	41,129	70,573
Realized gains (losses) on investments, net of taxes	2,469		(336)	5,222	3,321
Total condensed consolidated net earnings	$	48,413	33,696	46,351	73,894

	June 30,		December 31,
	2020		2019
	(In thousands)
Assets:
Total segment assets	$	11,744,823	12,092,796
Other unallocated assets	646,908		460,651
Total condensed consolidated assets	$	12,391,731	$	12,553,447