Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Segment Information

16.   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 and individual annuity products 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 reinsurance agreement between GWSC 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 for the year ended and as of December 31, 2012:

	Year ended December 31, 2012
	Individual		Retirement
	Markets		Services		Other			Total
Revenue:
Premium income	$	314,350	$	3,670	$	104,133		$	422,153
Fee income	74,985		456,052		4,786			535,823
Net investment income	729,885		414,114		47,552			1,191,551
Net realized gains on investments	55,959		60,726		32			116,717
Total revenues	1,175,179		934,562		156,503			2,266,244
Benefits and expenses:
Policyholder benefits	882,726		204,296		111,288			1,198,310
Operating expenses	136,895		492,427		65,193			694,515
Total benefits and expenses	1,019,621		696,723		176,481			1,892,825
Income (loss) from continuing operations before income taxes	155,558		237,839		(19,978		)	373,419
Income tax expense (benefit)	50,869		78,150		6,286			135,305
Income (loss) from continuing operations	$	104,689	$	159,689	$	(26,264	)	$	238,114

	December 31, 2012
	Individual		Retirement
	Markets		Services		Other		Total
Assets:
Investments	$	14,797,517	$	9,761,036	$	1,551,823	$	26,110,376
Other assets	1,172,932		773,712		123,006		2,069,650
Separate account assets	6,363,214		18,242,312		—		24,605,526
Assets of continuing operations	$	22,333,663	$	28,777,060	$	1,674,829	52,785,552
Assets of discontinued operations							33,053
Total assets							$	52,818,605

The following tables summarize segment financial information for the year ended and as of December 31, 2011:

	Year ended December 31, 2011 (1)
	Individual		Retirement
	Markets		Services		Other			Total
Revenue:
Premium income	$	395,923	$	1,960	$	125,333		$	523,216
Fee income	65,487		416,405		4,903			486,795
Net investment income	714,228		399,222		45,036			1,158,486
Net realized gains on investments	20,533		3,311		651			24,495
Total revenues	1,196,171		820,898		175,923			2,192,992
Benefits and expenses:
Policyholder benefits	937,885		222,642		103,435			1,263,962
Operating expenses	109,005		435,149		88,821			632,975
Total benefits and expenses	1,046,890		657,791		192,256			1,896,937
Income (loss) from continuing operations before income taxes	149,281		163,107		(16,333		)	296,055
Income tax expense (benefit)	49,221		50,869		(6,272		)	93,818
Income (loss) from continuing operations	$	100,060	$	112,238	$	(10,061	)	$	202,237

	December 31, 2011 (1)
	Individual		Retirement
	Markets		Services		Other		Total
Assets:
Investments	$	13,702,356	$	8,752,301	$	1,540,575	$	23,995,232
Other assets	1,108,744		610,971		126,468		1,846,183
Separate account assets	5,884,676		16,446,714		—		22,331,391
Assets of continuing operations	$	20,695,776	$	25,809,986	$	1,667,043	48,172,806
Assets of discontinued operations							39,621
Total assets							$	48,212,427

(1) As adjusted; See Note 1

The following tables summarize segment financial information for the year ended December 31, 2010:

	Year ended December 31, 2010 (1)
	Individual			Retirement
	Markets			Services			Other			Total
Revenue:
Premium income	$	676,395		$	5,509		$	123,718		$	805,622
Fee income	56,232			387,103			4,619			447,954
Net investment income	730,439			399,456			44,849			1,174,744
Net realized losses on investments	(1,239		)	(23,229		)	(27		)	(24,495		)
Total revenues	1,461,827			768,839			173,159			2,403,825
Benefits and expenses:
Policyholder benefits	1,218,791			221,943			99,673			1,540,407
Operating expenses	134,445			401,117			62,095			597,657
Total benefits and expenses	1,353,236			623,060			161,768			2,138,064
Income from continuing operations before income taxes	108,591			145,779			11,391			265,761
Income tax expense	29,487			34,547			4,593			68,627
Income from continuing operations	$	79,104		$	111,232		$	6,798		$	197,134

(1) As adjusted; See Note 1