Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments: Individual Markets, Retirement Services and Other.

Individual Markets

The Individual Markets reporting and operating segment distributes life insurance, annuity and retirement products (including individual retirement accounts (“IRAs”)) to both individuals and businesses through various distribution channels.  Life insurance products in-force include participating and non-participating term life, whole life, universal life and variable universal life.

Retirement Services

The Retirement Services reporting and operating segment provides various retirement plan products and investment options as well as comprehensive administrative and record-keeping services for financial institutions and employers, which include educational, advisory, enrollment and communication services for employer-sponsored defined contribution plans and associated defined benefit plans.

Other

The Company’s Other reporting segment is substantially comprised of activity under the assumption of reinsurance between Great-West Life & Annuity Insurance Company of South Carolina (“GWSC”), a wholly owned subsidiary, and CLAC (“the GWSC operating segment”), corporate items not directly allocated to the other operating segments and interest expense on long-term debt.

The accounting principles used to determine segment results are the same as those used in the consolidated financial statements.  The Company evaluates performance of its reportable segments based on their profitability from operations after income taxes.  Inter-segment transactions and balances have been eliminated in consolidation.  The Company’s operations are not materially dependent on one or a few customers, brokers or agents.

The following tables summarize segment financial information:

	Three Months Ended September 30, 2014
	Individual		Retirement
	Markets		Services		Other			Total
Revenue:
Premium income	$	151,831	$	173	$	17,539		$	169,543
Fee income	20,781		160,241		969			181,991
Net investment income	181,944		96,771		13,346			292,061
Realized investment gains (losses), net	9,458		13,777		295			23,530
Total revenues	364,014		270,962		32,149			667,125
Benefits and expenses:
Policyholder benefits	282,985		51,396		27,610			361,991
Operating expenses	46,463		153,970		14,410			214,843
Total benefits and expenses	329,448		205,366		42,020			576,834
Income (loss) before income taxes	34,566		65,596		(9,871		)	90,291
Income tax expense (benefit)	11,598		21,912		(3,720		)	29,790
Net income (loss)	$	22,968	$	43,684	$	(6,151	)	$	60,501

	Three Months Ended September 30, 2013
	Individual			Retirement
	Markets			Services			Other			Total
Revenue:
Premium income	$	120,489		$	1,484		$	15,428		$	137,401
Fee income	20,018			131,103			1,222			152,343
Net investment income	201,727			159,547			13,767			375,041
Realized investment gains (losses), net	(12,797		)	(43,023		)	—			(55,820		)
Total revenues	329,437			249,111			30,417			608,965
Benefits and expenses:
Policyholder benefits	261,716			53,201			19,547			334,464
Operating expenses	33,768			123,810			11,665			169,243
Total benefits and expenses	295,484			177,011			31,212			503,707
Income (loss) before income taxes	33,953			72,100			(795		)	105,258
Income tax expense (benefit)	10,716			22,866			(295		)	33,287
Net income (loss)	$	23,237		$	49,234		$	(500	)	$	71,971

	Nine Months Ended September 30, 2014
	Individual		Retirement
	Markets		Services		Other			Total
Revenue:
Premium income	$	302,070	$	1,213	$	60,610		$	363,893
Fee income	71,349		446,201		2,959			520,509
Net investment income	554,508		316,724		40,462			911,694
Realized investment gains (losses), net	26,182		60,933		380			87,495
Total revenues	954,109		825,071		104,411			1,883,591
Benefits and expenses:
Policyholder benefits	700,694		151,397		78,976			931,067
Operating expenses	123,892		433,529		44,574			601,995
Total benefits and expenses	824,586		584,926		123,550			1,533,062
Income (loss) before income taxes	129,523		240,145		(19,139		)	350,529
Income tax expense (benefit)	44,516		82,271		(6,463		)	120,324
Net income (loss)	$	85,007	$	157,874	$	(12,676	)	$	230,205

	Nine Months Ended September 30, 2013
	Individual		Retirement
	Markets		Services			Other			Total
Revenue:
Premium income	$	303,073	$	2,669		$	76,338		$	382,080
Fee income	67,393		382,809			3,394			453,596
Other revenue	7,355		—			—			7,355
Net investment income	551,167		320,179			37,660			909,006
Realized investment gains (losses), net	3,957		(69,365		)	13			(65,395		)
Total revenues	932,945		636,292			117,405			1,686,642
Benefits and expenses:
Policyholder benefits	715,691		146,562			82,076			944,329
Operating expenses	107,178		385,039			48,184			540,401
Total benefits and expenses	822,869		531,601			130,260			1,484,730
Income (loss) before income taxes	110,076		104,691			(12,855		)	201,912
Income tax expense (benefit)	38,349		33,509			(4,699		)	67,159
Net income (loss)	$	71,727	$	71,182		$	(8,156	)	$	134,753