Business Combinations (Tables)

6 Months Ended

Jun. 30, 2020

Business Combinations [Abstract]

Schedule of fair value of net assets acquired

The following table presents the fair values of the net assets acquired as of January 31, 2019.

	January 31, 2019
	Fair value
Assets	(In thousands)
Debt securities held to maturity	$	261,059
Debt securities available for sale	400,719
Policy loans	28,128
Real estate	4,600
Cash and cash equivalents	16,275
Accrued investment income	6,116
Value of business acquired	145,768
Reinsurance recoverables	21,895
Other intangible assets	9,600
Other assets acquired	12,075
Total assets acquired	906,235
Liabilities
Traditional life reserves	691,297
Other policyholder liabilities	13,867
Other liabilities acquired	5,840
	711,004
Net identifiable assets acquired	195,231
Goodwill	13,864
Net assets acquired	$	209,095

Schedule of fair value of identifiable intangible assets acquired

The following table presents the fair value of identifiable intangible assets acquired at January 31, 2019:

	Fair Value		Weighted-Average Amortization Period
	(In thousands)
Trademarks / trade names	$	2,800	15
Internally developed software	3,800		7
Insurance licenses	3,000		NA
	$	9,600

The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows.

	June 30, 2020				December 31, 2019
	Weighted-Average Amortization Period	Gross Carrying Amount		Accumulated Amortization	Gross Carrying Amount	Accumulated Amortization
		(In thousands)
Trademarks/trade names	15	$	2,800	(264)	2,800	(171)
Internally developed software	7	3,800		(769)	3,800	(498)
Insurance licenses (1)	N/A	3,000		—	3,000	—
		$	9,600	(1,033)	9,600	(669)

Schedule of changes in VOBA

Changes in VOBA were as follows for the periods shown:

	June 30,		December 31,
	2020		2019
	(In thousands)
Balance, beginning of year	$	138,071	—
Business acquired	—		145,768
Amortization:
Amortization, excluding unlocking	(3,801)		(7,697)
Balance as of end of period	$	134,270	138,071

Schedule of expected amortization of VOBA

Estimated future amortization of VOBA, net of interest (in thousands), as of June 30, 2020, is as follows:

	Expected Amortization
	(In thousands)
Remainder of 2020	$	3,218
2021	$	6,107
2022	$	5,797
2023	$	5,528
2024	$	5,287

Schedule of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill (in thousands) were as follows:

	June 30,		December 31,
	2020		2019
	(In thousands)
Gross goodwill as of beginning of year	$	13,864	—
Goodwill resulting from business acquisition	—		13,864
Gross goodwill, before impairments	13,864		13,864
Accumulated impairment as of beginning of year	—		—
Current year impairments	—		—
Net goodwill as of end of period	$	13,864	13,864

Schedule of pro forma total revenues and net earnings

The following unaudited comparative pro forma total revenues and net earnings represent Condensed Consolidated Results of Operations for the Company which assume amounts estimated had the acquisition of Ozark National and NIS by the Company been effective January 1, 2018.

	Three Months Ended June 30,			Six Months Ended June 30,
	2020		2019	2020	2019
	(In thousands)
Total revenues	$	216,015	192,685	268,503	420,268
Net earnings (loss)	$	48,413	33,696	46,351	75,328

The pro forma amounts shown above include the estimated total revenues and net earnings of the acquired businesses for each period incorporating amortization of identifiable intangible assets acquired and fair value adjustments to acquired invested assets and traditional life insurance reserves.