Segment and Other Operating Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment and Other Operating Information

SEGMENT AND OTHER OPERATING INFORMATION

(A)  Operating Segment Information

The Company defines its reportable operating segments as domestic life insurance, international life insurance, and annuities.  The Company's segments are organized based on product types and geographic marketing areas.  In addition, the Company regularly evaluates operating performance using non-GAAP financial measures which exclude or segregate realized investment gains and losses from operating revenues and earnings.  The Company believes that the presentation of these non-GAAP financial measures enhances the understanding of the Company's results of operations by highlighting the results from ongoing operations and the underlying profitability factors of the Company's business.  The Company excludes or segregates realized investment gains and losses because such items are often the result of events which may or may not be at the Company's discretion and the fluctuating effects of these items could distort trends in the underlying profitability of the Company's business.

A summary of segment information, prepared in accordance with GAAP guidance, is provided below.

	Domestic Life Insurance		International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2012:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	40,810	226,899	590,532	—	858,241
Total segment assets	463,569		1,105,862	8,269,445	242,404	10,081,280
Future policy benefits	398,202		846,028	7,324,624	—	8,568,854
Other policyholder liabilities	10,468		13,074	125,019	—	148,561
Condensed Income Statements:
Premiums and contract charges	$	31,143	114,605	22,196	—	167,944
Net investment income	21,194		43,469	375,431	19,954	460,048
Other revenues	62		485	80	22,843	23,470
Total revenues	52,399		158,559	397,707	42,797	651,462
Life and other policy benefits	10,633		20,877	20,332	—	51,842
Amortization of deferred policy acquisition costs	7,461		18,103	96,358	—	121,922
Universal life and annuity contract interest	17,507		39,639	205,193	—	262,339
Other operating expenses	14,895		26,007	25,456	21,620	87,978
Federal income taxes (benefit)	648		18,377	17,162	7,216	43,403
Total expenses	51,144		123,003	364,501	28,836	567,484
Segment earnings (loss)	$	1,255	35,556	33,206	13,961	83,978

	Domestic Life Insurance		International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2011:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	37,102	231,123	610,070	—	878,295
Total segment assets	403,868		1,023,942	7,997,407	225,716	9,650,933
Future policy benefits	344,916		761,926	7,056,613	—	8,163,455
Other policyholder liabilities	9,526		17,400	124,382	—	151,308
Condensed Income Statements:
Premiums and contract charges	$	30,387	98,021	21,803	—	150,211
Net investment income	16,980		36,806	318,294	18,954	391,034
Other revenues	69		354	3,170	21,846	25,439
Total revenues	47,436		135,181	343,267	40,800	566,684
Life and other policy benefits	11,636		20,709	14,149	—	46,494
Amortization of deferred policy acquisition costs	11,467		29,415	92,206	—	133,088
Universal life and annuity contract interest	9,760		36,674	186,354	—	232,788
Other operating expenses	13,890		22,131	20,474	21,046	77,541
Federal income taxes (benefit)	223		8,578	9,831	6,455	25,087
Total expenses	46,976		117,507	323,014	27,501	514,998
Segment earnings (loss)	$	460	17,674	20,253	13,299	51,686

	Domestic Life Insurance			International Life Insurance	Annuities	All Others	Totals
	(In thousands)
2010:
Selected Balance Sheet Items:
Deferred policy acquisition costs and sales inducements	$	42,751		226,004	567,028	—	835,783
Total segment assets	387,873			1,025,103	7,101,720	209,179	8,723,875
Future policy benefits	325,246			716,716	6,205,819	—	7,247,781
Other policyholder liabilities	13,394			26,678	111,454	—	151,526
Condensed Income Statements:
Premiums and contract charges	$	27,622		98,092	18,043	—	143,757
Net investment income	17,226			38,667	327,975	17,515	401,383
Other revenues	167			358	2,002	22,850	25,377
Total revenues	45,015			137,117	348,020	40,365	570,517
Life and other policy benefits	13,484			29,228	10,217	—	52,929
Amortization of deferred policy acquisition costs	9,352			21,828	65,269	—	96,449
Universal life and annuity contract interest	10,643			36,369	219,591	—	266,603
Other operating expenses	12,839			18,651	3,905	20,053	55,448
Federal income taxes (benefit)	(391		)	9,319	14,722	6,100	29,750
Total expenses	45,927			115,395	313,704	26,153	501,179
Segment earnings (loss)	$	(912	)	21,722	34,316	14,212	69,338

Reconciliations of segment information to the Company's consolidated financial statements are provided below.

	Years Ended December 31,
	2012		2011	2010
	(In thousands)
Premiums and Other Revenue:
Premiums and contract charges	$	167,944	150,211	143,757
Net investment income	460,048		391,034	401,383
Other revenues	23,470		25,439	25,377
Realized gains (losses) on investments	13,200		6,063	5,475
Total consolidated premiums and other revenue	$	664,662	572,747	575,992

	Years Ended December 31,
	2012		2011	2010
	(In thousands)
Federal Income Taxes:
Total segment Federal income taxes	$	43,403	25,087	29,750
Taxes on realized gains (losses) on investments	4,620		2,122	1,916
Total taxes on consolidated net earnings	$	48,023	27,209	31,666

	Years Ended December 31,
	2012		2011	2010
	(In thousands)
Net Earnings:
Total segment earnings	$	83,978	51,686	69,338
Realized gains (losses) on investments, net of taxes	8,580		3,941	3,559
Total consolidated net earnings	$	92,558	55,627	72,897

	December 31,
	2012		2011	2010
	(In thousands)
Assets:
Total segment assets	$	10,081,280	9,650,933	8,723,875
Other unallocated assets	182,578		77,066	50,073
Total consolidated assets	$	10,263,858	9,727,999	8,773,948

(B)  Geographic Information

A significant portion of the Company's premiums and contract revenues are from countries other than the United States. Premiums and contract revenues detailed by country are provided below.

	Years Ended December 31,
	2012			2011		2010
	(In thousands)
United States	$	67,924		58,570		57,190
Brazil	38,605			34,367		31,015
Taiwan	13,958			13,155		12,421
Venezuela	12,223			10,348		9,639
Colombia	9,818			9,413		10,205
Argentina	8,693			8,820		8,600
Other foreign countries	36,507			36,191		36,565
Revenues, excluding reinsurance premiums	187,728			170,864		165,635
Reinsurance premiums	(19,784		)	(20,653	)	(21,878	)
Total premiums and contract revenues	$	167,944		150,211		143,757

Premiums and contract revenues are attributed to countries based on the location of the policyholder. The Company has no significant assets, other than financial instruments, located in countries other than the United States.

(C)  Major Agency Relationships

A significant portion of the Company's annuity sales were sold through the top two independent marketing agencies in recent years. Business from the top agency accounted for approximately 16% of annuity sales in 2012.