Segment and Other Operating Information

9 Months Ended

Sep. 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 September 30, 2020 and December 31, 2019 for the Condensed Consolidated Balance Sheet items and for the three and nine months ended September 30, 2020 and September 30, 2019 for the Condensed Consolidated Statements of Earnings (Loss) is provided below.

Condensed Consolidated Balance Sheet Items:

	September 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	$	127,124	183,318	402,072	139,365	—	851,879
Total segment assets	1,467,577		1,049,371	7,797,137	1,030,162	367,605	11,711,852
Future policy benefits	1,275,476		798,665	7,068,118	719,917	—	9,862,176
Other policyholder liabilities	17,190		12,214	91,818	15,170	—	136,392

	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 September 30, 2020
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	17,734	21,551	4,187	19,524	—	62,996
Net investment income (loss)	21,201		10,354	87,889	6,434	3,801	129,679
Other revenues	10		6	84	2,628	1,249	3,977
Total revenues	38,945		31,911	92,160	28,586	5,050	196,652
Life and other policy benefits	3,785		2,278	3,383	17,494	—	26,940
Amortization of deferred policy acquisition costs and value of business acquired	10,540		6,496	31,794	1,970	—	50,800
Universal life and annuity contract interest	20,352		(14,023)	79,550	—	—	85,879
Other operating expenses	5,185		5,434	9,205	4,498	1,432	25,754
Federal income taxes (benefit)	(161)		5,169	(5,294)	963	556	1,233
Total expenses	39,701		5,354	118,638	24,925	1,988	190,606
Segment earnings (loss)	$	(756)	26,557	(26,478)	3,661	3,062	6,046

	Nine Months Ended September 30, 2020
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	40,971	67,479	13,536	59,448	—	181,434
Net investment income	23,293		12,507	196,187	19,284	10,623	261,894
Other revenues	40		54	80	7,369	7,674	15,217
Total revenues	64,304		80,040	209,803	86,101	18,297	458,545
Life and other policy benefits	13,831		9,293	20,452	50,429	—	94,005
Amortization of deferred policy acquisition costs and value of business acquired	16,322		19,392	70,159	6,064	—	111,937
Universal life and annuity contract interest	17,831		(15,368)	117,162	—	—	119,625
Other operating expenses	15,123		13,047	28,787	13,361	4,412	74,730
Federal income taxes (benefit)	199		8,907	(4,440)	4,103	2,304	11,073
Total expenses	63,306		35,271	232,120	73,957	6,716	411,370
Segment earnings (loss)	$	998	44,769	(22,317)	12,144	11,581	47,175

	Three Months Ended September 30, 2019
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	11,387	25,065	5,336	20,151	—	61,939
Net investment income	12,885		6,872	78,000	6,300	4,399	108,456
Other revenues	49		25	8	2,318	873	3,273
Total revenues	24,321		31,962	83,344	28,769	5,272	173,668
Life and other policy benefits	6,099		5,074	12,550	16,195	—	39,918
Amortization of deferred acquisition costs and value of business acquired	2,181		(3,047)	21,688	2,176	—	22,998
Universal life and annuity contract interest	11,267		14,637	33,541	—	—	59,445
Other operating expenses	5,297		5,493	8,596	4,772	1,655	25,813
Federal income taxes (benefit)	(107)		1,970	1,388	1,133	725	5,109
Total expenses	24,737		24,127	77,763	24,276	2,380	153,283
Segment earnings (loss)	$	(416)	7,835	5,581	4,493	2,892	20,385

	Nine Months Ended September 30, 2019
	Domestic Life Insurance		International Life Insurance	Annuities	Acquired Businesses	All Others	Totals
	(In thousands)
Premiums and contract revenues	$	32,897	74,905	16,061	54,332	—	178,195
Net investment income	51,379		30,165	270,727	16,283	19,657	388,211
Other revenues	113		79	80	6,049	7,331	13,652
Total revenues	84,389		105,149	286,868	76,664	26,988	580,058
Life and other policy benefits	13,850		10,195	33,856	43,863	—	101,764
Amortization of deferred acquisition costs and value of business acquired	8,898		11,195	60,150	6,330	—	86,573
Universal life and annuity contract interest	45,693		33,967	120,840	—	—	200,500
Other operating expenses	14,437		14,278	25,478	12,348	10,655	77,196
Federal income taxes (benefit)	306		7,192	9,426	2,836	3,307	23,067
Total expenses	83,184		76,827	249,750	65,377	13,962	489,100
Segment earnings (loss)	$	1,205	28,322	37,118	11,287	13,026	90,958

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

	Three Months Ended September 30,			Nine Months Ended September 30,
	2020		2019	2020	2019
	(In thousands)
Premiums and Other Revenues:
Premiums and contract revenues	$	62,996	61,939	181,434	178,195
Net investment income (loss)	129,679		108,456	261,894	388,211
Other revenues	3,977		3,273	15,217	13,652
Realized gains (losses) on investments	6,050		(502)	12,660	3,702
Total condensed consolidated premiums and other revenues	$	202,702	173,166	471,205	583,760

	Three Months Ended September 30,			Nine Months Ended September 30,
	2020		2019	2020	2019
	(In thousands)
Federal Income Taxes:
Total segment Federal income taxes	$	1,233	5,109	11,073	23,067
Taxes on realized gains (losses) on investments	1,271		(106)	2,659	777
Total condensed consolidated Federal income taxes	$	2,504	5,003	13,732	23,844

	Three Months Ended September 30,			Nine Months Ended September 30,
	2020		2019	2020	2019
	(In thousands)
Net Earnings:
Total segment earnings	$	6,046	20,385	47,175	90,958
Realized gains (losses) on investments, net of taxes	4,779		(396)	10,001	2,925
Total condensed consolidated net earnings	$	10,825	19,989	57,176	93,883

	September 30,		December 31,
	2020		2019
	(In thousands)
Assets:
Total segment assets	$	11,711,852	12,092,796
Other unallocated assets	709,134		460,651
Total condensed consolidated assets	$	12,420,986	12,553,447