OPERATING SEGMENTS (Tables)

9 Months Ended

Sep. 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 September 30,				For The Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars In Thousands)
Revenues
Retail Life and Annuity	$	664,525	$	651,222	$	1,995,041	$	1,817,232
Acquisitions	802,200		859,524		2,399,362		2,136,497
Stable Value Products	48,081		59,954		137,222		187,118
Asset Protection	68,198		72,729		209,790		218,995
Corporate and Other	50,223		22,597		81,138		90,082
Total revenues	$	1,633,227	$	1,666,026	$	4,822,553	$	4,449,924
Pre-tax Adjusted Operating Income (Loss)
Retail Life and Annuity	$	14,927	3,015		22,642		$	87,405
Acquisitions	64,999		103,210		238,121		247,932
Stable Value Products	20,129		20,863		62,119		71,208
Asset Protection	9,484		9,637		32,851		26,945
Corporate and Other	(32,125)		(36,563)		(103,897)		(119,675)
Pre-tax adjusted operating income	77,414		100,162		251,836		313,815
Realized gains (losses) and adjustments	(4,802)		139,679		118,090		288,476
Income before income tax	72,612		239,841		369,926		602,291
Income tax expense	(12,850)		(49,417)		(71,094)		(115,355)
Net income	$	59,762	$	190,424	$	298,832	$	486,936

Pre-tax adjusted operating income	$	77,414	$	100,162	$	251,836	$	313,815
Adjusted operating income tax expense	(13,859)		(20,085)		(46,295)		(54,775)
After-tax adjusted operating income	63,555		80,077		205,541		259,040
Realized gains (losses) and adjustments	(4,802)		139,679		118,090		288,476
Income tax (expense) benefit on adjustments	1,009		(29,332)		(24,799)		(60,580)
Net income	$	59,762	$	190,424	$	298,832	$	486,936

Realized gains (losses) and adjustments:
Derivative financial instruments	$	15,337	$	42,286	$	92,899	$	(86,288)
Investments	22,819		77,399		(72,752)		302,596
Less: related amortization(1)	56,313		(6,205)		(58,065)		(37,406)
Less: VA GLWB economic cost	(13,355)		(13,789)		(39,878)		(34,762)
Total realized gains (losses) and adjustments	$	(4,802)	$	139,679	$	118,090	$	288,476

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


	For The Three Months Ended September 30,				For The Nine Months Ended September 30,
	2020		2019		2020		2019
	(Dollars In Thousands)
Net investment income
Retail Life and Annuity	$	249,122	$	235,318	$	748,470	$	697,786
Acquisitions	405,458		426,510		1,235,231		1,106,782
Stable Value Products	54,210		59,707		169,279		184,450
Asset Protection	5,438		7,164		19,144		21,015
Corporate and Other	23,943		11,012		59,462		56,294
Total net investment income	$	738,171	$	739,711	$	2,231,586	$	2,066,327

Amortization of DAC and VOBA
Retail Life and Annuity	$	76,982	37,277		69,978		$	57,471
Acquisitions	14,114		7,388		23,720		18,349
Stable Value Products	872		857		2,439		2,584
Asset Protection	17,173		15,828		48,459		47,156
Corporate and Other	—		—		—		—
Total amortization of DAC and VOBA	$	109,141	$	61,350	$	144,596	125,560


	Operating Segment Assets
	As of September 30, 2020
	(Dollars In Thousands)
	Retail Life & Annuity		Acquisitions		Stable Value Products
Investments and other assets	$	39,070,453	$	54,395,295	$	5,889,432
DAC and VOBA	2,476,357		808,377		7,681
Other intangibles	375,851		33,831		6,222
Goodwill	558,501		23,862		113,924
Total assets	$	42,481,162	$	55,261,365	$	6,017,259


	Asset Protection		Corporate and Other		Total Consolidated
Investments and other assets	$	869,456	$	19,872,380	$	120,097,016
DAC and VOBA	169,505		—		3,461,920
Other intangibles	104,019		33,161		553,084
Goodwill	129,224		—		825,511
Total assets	$	1,272,204	$	19,905,541	$	124,937,531


	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