Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information

Segment Information

11.  Segment Information

The Company has three reportable segments: Individual Markets, Retirement Services and Other.  The Individual Markets segment distributes life insurance and individual annuity products to both individuals and businesses through various distribution channels.  Life insurance products in-force includes participating and non-participating term life, whole life, universal life and variable universal life.  The Retirement Services segment provides retirement plan enrollment services, communication materials, various retirement plan investment options and educational services to employer-sponsored defined contribution/defined benefit plans and 401(k) and 403(b) plans, as well as comprehensive administrative and record-keeping services for financial institutions and employers.  The Company’s Other segment includes corporate items not directly allocated to any of its other business segments, interest expense on long-term debt and the activities of a wholly-owned subsidiary whose sole business is the assumption of a certain block of term life insurance from an affiliated company.

The following table summarizes the financial results of the Company’s Individual Markets segment for the three and nine-month periods ended September 30, 2011 and 2010:

	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011		2010
Revenues:
Premium income	$	120,409	$	208,114	$	323,126	$	517,129
Fee income	15,580		13,925		48,019		41,544
Net investment income	178,131		185,060		534,568		539,981
Net realized gains (losses) on investments	10,762		4,250		16,570		(9,773		)
Total revenues	324,882		411,349		922,283		1,088,881
Benefits and expenses:
Policyholder benefits	262,973		355,774		731,455		918,576
Operating expenses	19,507		29,722		64,620		80,945
Total benefits and expenses	282,480		385,496		796,075		999,521
Income from continuing operations before income taxes	42,402		25,853		126,208		89,360
Income tax expense	14,937		4,189		39,610		26,745
Income from continuing operations	$	27,465	$	21,664	$	86,598	$	62,615

The following table summarizes the financial results of the Company’s Retirement Services segment for the three and nine-month periods ended September 30, 2011 and 2010:

	Three months ended					Nine months ended
	September 30,					September 30,
	2011			2010		2011		2010
Revenues:
Premium income	$	—		$	797	$	3,569	$	2,356
Fee income	103,298			96,984		311,780		287,646
Net investment income	97,284			99,072		297,644		289,974
Net realized gains (losses) on investments	(633		)	1,902		2,540		(24,734		)
Total revenues	199,949			198,755		615,533		555,242
Benefits and expenses:
Policyholder benefits	60,431			56,543		169,870		162,373
Operating expenses	97,022			90,011		303,641		285,495
Total benefits and expenses	157,453			146,554		473,511		447,868
Income from continuing operations before income taxes	42,496			52,201		142,022		107,374
Income tax expense	12,523			10,140		43,094		29,049
Income from continuing operations	$	29,973		$	42,061	$	98,928	$	78,325

The following table summarizes the financial results of the Company’s Other segment for the three and nine-month periods ended September 30, 2011 and 2010:

	Three months ended					Nine months ended
	September 30,					September 30,
	2011			2010		2011		2010
Revenues:
Premium income	$	38,279		$	29,636	$	100,184	$	94,420
Fee income	1,222			1,168		3,683		3,454
Net investment income	11,835			11,234		35,591		33,511
Net realized gains (losses) on investments	613			9		637		351
Total revenues	51,949			42,047		140,095		131,736
Benefits and expenses:
Policyholder benefits	25,020			20,658		71,176		67,024
Operating expenses	28,855			15,602		68,022		47,205
Total benefits and expenses	53,875			36,260		139,198		114,229
Income (loss) from continuing operations before income taxes	(1,926		)	5,787		897		17,507
Income tax expense (benefit)	(1,436		)	2,027		211		6,815
Income from continuing operations	$	(490	)	$	3,760	$	686	$	10,692