OPERATING SEGMENTS (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Financial Information for the Company's Segments

The following tables present a summary of results and reconciles pre-tax adjusted operating income (loss) to consolidated income before income tax and net income:


	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2020		2019		2020		2019
	(Dollars In Thousands)
Revenues
Retail Life and Annuity	$	553,872	$	573,256	$	1,330,516	$	1,166,010
Acquisitions	797,561		667,031		1,597,162		1,276,973
Stable Value Products	52,539		67,585		89,141		127,164
Asset Protection	69,103		73,070		141,592		146,265
Corporate and Other	31,365		38,151		30,915		67,486
Total revenues	$	1,504,440	$	1,419,093	$	3,189,326	$	2,783,898
Pre-tax Adjusted Operating Income (Loss)
Retail Life and Annuity	$	20,035	37,378		7,715		$	84,390
Acquisitions	97,997		69,810		173,122		144,722
Stable Value Products	16,665		28,106		41,990		50,345
Asset Protection	12,740		8,459		23,367		17,308
Corporate and Other	(30,897)		(38,906)		(71,772)		(83,112)
Pre-tax adjusted operating income	116,540		104,847		174,422		213,653
Realized gains (losses) and adjustments	89,301		80,876		122,892		148,797
Income before income tax	205,841		185,723		297,314		362,450
Income tax expense	(40,736)		(31,309)		(58,244)		(65,938)
Net income	$	165,105	$	154,414	$	239,070	$	296,512

Pre-tax adjusted operating income	$	116,540	$	104,847	$	174,422	$	213,653
Adjusted operating income tax expense	(21,982)		(14,325)		(32,436)		(34,691)
After-tax adjusted operating income	94,558		90,522		141,986		178,962
Realized gains (losses) and adjustments	89,301		80,876		122,892		148,797
Income tax (expense) benefit on adjustments	(18,754)		(16,984)		(25,808)		(31,247)
Net income	$	165,105	$	154,414	$	239,070	$	296,512

Realized gains (losses) and adjustments:
Derivative financial instruments	$	(160,578)	$	(55,266)	$	77,562	$	(128,574)
Investments	180,680		98,811		(95,571)		225,197
Less: related amortization⁽¹⁾	(55,952)		(26,840)		(114,378)		(31,201)
Less: VA GLWB economic cost	(13,247)		(10,491)		(26,523)		(20,973)
Total realized gains (losses) and adjustments	$	89,301	$	80,876	$	122,892	$	148,797

(1) Includes amortization of DAC/VOBA and benefits and settlement expenses that are impacted by realized gains (losses).


	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2020		2019		2020		2019
	(Dollars In Thousands)
Net investment income
Retail Life and Annuity	$	246,929	$	231,570	$	499,348	$	462,468
Acquisitions	413,346		355,761		829,773		680,272
Stable Value Products	52,399		67,122		115,069		124,743
Asset Protection	6,491		7,049		13,706		13,851
Corporate and Other	21,270		23,692		35,519		45,282
Total net investment income	$	740,435	$	685,194	$	1,493,415	$	1,326,616

Amortization of DAC and VOBA
Retail Life and Annuity	$	6,752	5,246		(7,004)		$	20,194
Acquisitions	(42,355)		12,037		9,606		10,961
Stable Value Products	770		854		1,567		1,727
Asset Protection	16,325		15,700		31,286		31,328
Corporate and Other	—		—		—		—
Total amortization of DAC and VOBA	$	(18,508)	$	33,837	$	35,455	64,210


	Operating Segment Assets
	As of June 30, 2020
	(Dollars In Thousands)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	38,003,155	$	54,020,299	$	5,858,557
DAC and VOBA	2,503,881		885,472		5,166
Other intangibles	384,423		34,668		6,389
Goodwill	558,501		23,862		113,924
Total assets	$	41,449,960	$	54,964,301	$	5,984,036


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	862,780	$	19,288,486	$	118,033,277
DAC and VOBA	167,478		—		3,561,997
Other intangibles	106,690		32,945		565,115
Goodwill	129,224		—		825,511
Total assets	$	1,266,172	$	19,321,431	$	122,985,900


	Operating Segment Assets
	As of December 31, 2019
	(Dollars In Thousands)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	37,448,239	$	54,074,450	$	5,317,885
DAC and VOBA	2,416,616		924,090		5,221
Other intangibles	401,178		36,321		6,722
Goodwill	558,501		23,862		113,924
Total assets	$	40,824,534	$	55,058,723	$	5,443,752


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	878,386	$	17,830,217	$	115,549,177
DAC and VOBA	173,628		—		3,519,555
Other intangibles	112,032		27,173		583,426
Goodwill	129,224		—		825,511
Total assets	$	1,293,270	$	17,857,390	$	120,477,669