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Business Segments (Tables)
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Schedule of Adjustments for Difference in Interim Medicare Part D Results for Segment Purposes and Gaap Table
An analysis of the adjustments for the difference in the interim results as presented for segment purposes and GAAP for Medicare Part D is as follows.
 
Three months ended 
 March 31,
 
2015
 
2014
Benefit costs deferred
$
27,229

 
$
47,671

Government risk-sharing premium adjustment
(8,745
)
 
(27,395
)
Pre-tax addition to segment interim period income
$
18,484

 
$
20,276

After tax amount
$
12,015

 
$
13,179
Reconciliation of Health Premium Included in the Segment Analysis
A reconciliation of health premium included in the segment analysis with health premium as reported in the Condensed Consolidated Statements of Operations is presented in the following table.
 
Three months ended 
 March 31,
 
2015
 
2014
 
% Change
Premium per segment analysis:
 
 
 
 
 
Medicare Part D premium
$
79,347

 
$
83,033

 
(4
)
Other health premium
228,673

 
219,435

 
4

Part D risk-sharing adjustment
8,745

 
27,395

 
(68
)
Health premium per Condensed Consolidated Statements of Operations
$
316,765

 
$
329,863

 
(4
)
Reconciliation of Segment Operating Information to Consolidated Statement of Operations
Reconciliation of Segment Operating Information to the Consolidated Statement of Operations
 
 
For the three months ended March 31, 2015
 
Life
 
Health
 
Medicare
Part D
 
Annuity
 
Investment
 
Other &
Corporate
 
Adjustments
 
  
 
Consolidated
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium
$
513,342

 
$
228,673

 
$
79,347

 
$
41

 
 
 
 
 
$
8,745

 
(1) 
 
$
830,148

Net investment income
 
 
 
 
 
 
 
 
$
191,596

 
 
 


 

 
191,596

Other income
 
 
 
 
 
 
 
 
 
 
$
722

 
(53
)
 
(3)  
 
669

Total revenue
513,342

 
228,673

 
79,347

 
41

 
191,596

 
722

 
8,692

 
   
 
1,022,413

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
339,701

 
148,029

 
66,893

 
10,045

 
 
 
 
 
27,229

 
(1)  
 
591,897

Required interest on:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy reserves
(136,185
)
 
(16,883
)
 


 
(13,369
)
 
166,437

 
 
 
 
 
 
 
—

Deferred acquisition costs
42,846

 
5,668

 
214

 
313

 
(49,041
)
 
 
 
 
 
 
 
—

Amortization of acquisition costs
88,528

 
20,184

 
603

 
1,948

 
 
 
 
 
 
 
 
 
111,263

Commissions, premium taxes, and non-deferred acquisition costs
37,049

 
20,098

 
6,163

 
11

 
 
 
 
 
(53
)
 
(3)  
 
63,268

Insurance administrative expense (2)
 
 
 
 
 
 
 
 
 
 
47,200

 


 

 
47,200

Parent expense
 
 
 
 
 
 
 
 
 
 
2,173

 
 
 
 
 
2,173

Stock compensation expense
 
 
 
 
 
 
 
 
 
 
7,239

 
 
 
 
 
7,239

Interest expense
 
 
 
 
 
 
 
 
19,060

 
 
 
 
 
 
 
19,060

Total expenses
371,939

 
177,096

 
73,873

 
(1,052
)
 
136,456

 
56,612

 
27,176

 
   
 
842,100

Subtotal
141,403

 
51,577

 
5,474

 
1,093

 
55,140


(55,890
)

(18,484
)
 
 
 
180,313

Nonoperating items
 
 
 
 
 
 
 
 
 
 
 
 
18,484

 
(1)  
 
18,484

Measure of segment profitability (pretax)
$
141,403

 
$
51,577

 
$
5,474

 
$
1,093

 
$
55,140

 
$
(55,890
)
 
$
—

 
   
 
198,797

Deduct applicable income taxes
 
   
 
(65,211
)
Segment profits after tax
 
   
 
133,586

Add back income taxes applicable to segment profitability
 
   
 
65,211

Add (deduct) realized investment gains (losses)
 
   
 
119

Deduct Part D adjustment (1)
 
   
 
(18,484
)
         Pretax income per Condensed Consolidated Statement of Operations
 
   
 
$
180,432

 
(1)
Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.
(2)
Administrative expense is not allocated to insurance segments.
(3)
Elimination of intersegment commission.

Reconciliation of Segment Operating Information to the Condensed Consolidated Statement of Operations *
 
 
For the three months ended March 31, 2014
 
Life
 
Health
 
Medicare
Part D
 
Annuity
 
Investment
 
Other &
Corporate
 
Adjustments
 
 
 
Consolidated
Revenue:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premium
$
489,058

 
$
219,435

 
$
83,033

 
$
99

 
 
 
 
 
$
27,395

 
(1) 
 
$
819,020

Net investment income
 
 
 
 
 
 
 
 
$
188,051

 
 
 


 

 
188,051

Other income
 
 
 
 
 
 
 
 
 
 
$
544

 
(63
)
 
(3) 
 
481

Total revenue
489,058

 
219,435

 
83,033

 
99

 
188,051

 
544

 
27,332

 
   
 
1,007,552

Expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy benefits
320,176

 
141,786

 
66,261

 
10,623

 
 
 
 
 
47,671

 
(1)  
 
586,517

Required interest on:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policy reserves
(130,511
)
 
(15,632
)
 


 
(13,791
)
 
159,934

 
 
 
 
 
 
 
—

Deferred acquisition costs
41,690

 
5,598

 
175

 
389

 
(47,852
)
 
 
 
 
 
 
 
—

Amortization of acquisition costs
83,600

 
18,608

 
705

 
1,820

 
 
 
 
 


 

 
104,733

Commissions, premium taxes, and non-deferred acquisition costs
33,484

 
19,618

 
6,326

 
13

 
 
 
 
 
(63
)
 
(3) 
 
59,378

Insurance administrative expense (2)
 
 
 
 
 
 
 
 
 
 
44,211

 
2,493

 
(4) 
 
46,704

Parent expense
 
 
 
 
 
 
 
 
 
 
1,743

 


 

 
1,743

Stock compensation expense
 
 
 
 
 
 
 
 
 
 
8,509

 
 
 
 
 
8,509

Interest expense
 
 
 
 
 
 
 
 
19,049

 
 
 
 
 
 
 
19,049

Total expenses
348,439

 
169,978

 
73,467

 
(946
)
 
131,131

 
54,463

 
50,101

 
   
 
826,633

Subtotal
140,619

 
49,457

 
9,566

 
1,045

 
56,920

 
(53,919
)
 
(22,769
)
 
 
 
180,919

Nonoperating items
 
 
 
 
 
 
 
 
 
 
 
 
22,769

 
(1,4) 
 
22,769

Measure of segment profitability (pretax)
$
140,619

 
$
49,457

 
$
9,566

 
$
1,045

 
$
56,920

 
$
(53,919
)
 
$
—

 
   
 
203,688

Deduct applicable income taxes
 
  
 
(66,835
)
Segment profits after tax
 
  
 
136,853

Add back income taxes applicable to segment profitability
 
  
 
66,835

Add (deduct) realized investment gains (losses)
 
  
 
16,619

Deduct Part D adjustment (1)
 
  
 
(20,276
)
Deduct legal settlement expenses (4)
 
  
 
(2,493
)
         Pretax income from continuing operations per Condensed Consolidated Statement of Operations
 
  
 
$
197,538

 
(1)
Medicare Part D items adjusted to GAAP from the segment analysis, which matches expected benefits with policy premium.
(2)
Administrative expense is not allocated to insurance segments.
(3)
Elimination of intersegment commission.
(4)
Legal settlement expenses.
*
Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards.
Analysis of Profitability By Segment
The following table summarizes the measures of segment profitability for comparison. It also reconciles segment profits to net income.
Analysis of Profitability by Segment
 
Three months ended 
 March 31,
 
Increase
(Decrease)
 
2015
 
2014*
 
Amount
 
%
Life
$
141,403

 
$
140,619

 
$
784

 
1

Health
51,577

 
49,457

 
2,120

 
4

Medicare Part D
5,474

 
9,566

 
(4,092
)
 
(43
)
Annuity
1,093

 
1,045

 
48

 
5

Investment
55,140

 
56,920

 
(1,780
)
 
(3
)
Other and corporate:
 
 
 
 
 
 
 
Other income
722

 
544

 
178

 
33

Administrative expense
(47,200
)
 
(44,211
)
 
(2,989
)
 
7

Corporate
(9,412
)
 
(10,252
)
 
840

 
(8
)
Pretax total
198,797

 
203,688

 
(4,891
)
 
(2
)
Applicable taxes
(65,211
)
 
(66,835
)
 
1,624

 
(2
)
Total
133,586

 
136,853

 
(3,267
)
 
(2
)
Reconciling items, net of tax:
 
 
 
 
 
 
 
Realized gains (losses) - Investments
77

 
10,802

 
(10,725
)
 
 
Part D adjustment
(12,015
)
 
(13,179
)
 
1,164

 
 
Legal settlement expense
—

 
(1,620
)
 
1,620

 
 
Net income
$
121,648

 
$
132,856

 
$
(11,208
)
 
(8
)
 
* Retrospectively adjusted to give effect to the adoption of ASU 2014-01 as described in Note G-Adoption of New Accounting Standards.