Restatement of Previously Issued Condensed Consolidated Financial Statements (Tables)

6 Months Ended

Jun. 30, 2013

Restatement of Previously Issued Condensed Consolidated Financial Statements

Summary of effect of the restatement adjustment on the unaudited condensed consolidated balance sheet

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated balance sheet as of June 30, 2013:

	As previously
	reported		Adjustments			As restated
Fixed maturities, available-for-sale, at fair value (1)	$	18,209,545	$	(1,927,986	)	$	16,281,559
Total investments	27,767,018		(1,927,986		)	25,839,032
Deferred acquisition costs and value of business acquired	272,466		41,902			314,368
Investment income due and accrued	241,889		(779		)	241,110
Due from parent and affiliates	71,491		19,512			91,003
Other assets	654,493		4,686			659,179
Total assets	55,217,846		(1,862,665		)	53,355,181
Future policy benefits	23,749,694		42,803			23,792,497
Total policy benefit liabilities	24,519,529		42,803			24,562,332
Repurchase agreements	1,894,338		(1,894,338		)	—
Deferred income tax liabilities, net	124,047		(2,890		)	121,157
Other liabilities	710,799		35,746			746,545
Total liabilities	53,343,916		(1,818,679		)	51,525,237
Accumulated other comprehensive income (loss)	300,808		10,874			311,682
Retained earnings	793,730		(54,860		)	738,870
Total stockholder’s equity	1,873,930		(43,986		)	1,829,944
Total liabilities and stockholder’s equity	55,217,846		(1,862,665		)	53,355,181

(1)  Fixed maturities, available-for-sale, amortized cost 17,457,961 (1,948,194 ) 15,509,767

Summary of effect of the restatement adjustment on the unaudited condensed consolidated statement of income

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of income for the three months ended June 30, 2013:

	As previously
	reported			Adjustments			As restated
Fee income	$	163,331		$	(9,024	)	$	154,307
Net investment income	299,179			(50,576		)	248,603
Other realized investment (losses), net	(1,353		)	(23,320		)	(24,673		)
Total realized investment gains (losses), net	(994		)	(23,320		)	(24,314		)
Total revenues	527,873			(82,920		)	444,953
General insurance expenses	172,728			(9,024		)	163,704
Amortization of deferred acquisition costs and value of business acquired	16,783			(1,986		)	14,797
Total benefits and expenses, net	464,086			(11,010		)	453,076
Income (loss) before income taxes	63,787			(71,910		)	(8,123		)
Income tax expense (benefit)	20,374			(24,443		)	(4,069		)
Net income (loss)	43,413			(47,467		)	(4,054		)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of income for the six months ended June 30, 2013:

	As previously
	reported		Adjustments			As restated
Fee income	$	319,223	$	(17,970	)	$	301,253
Net investment income	589,581		(55,616		)	533,965
Other realized investment gains, net	20,998		(30,078		)	(9,080		)
Total realized investment gains (losses), net	20,503		(30,078		)	(9,575		)
Total revenues	1,181,340		(103,664		)	1,077,676
General insurance expenses	340,152		(17,970		)	322,182
Amortization of deferred acquisition costs and value of business acquired	32,881		(2,577		)	30,304
Total benefits and expenses, net	1,001,571		(20,547		)	981,024
Income before income taxes	179,769		(83,117		)	96,652
Income tax expense	62,129		(28,257		)	33,872
Net income	117,640		(54,860		)	62,780

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of income for the three months ended June 30, 2012:

	As previously
	reported		Adjustments			As restated
Net investment income	$	299,792	$	(3,706	)	$	296,086
Other realized investment gains, net	24,919		11,934			36,853
Total realized investment gains (losses), net	24,919		11,934			36,853
Total revenues	535,262		8,228			543,490
Amortization of deferred acquisition costs and value of business acquired	15,789		812			16,601
Total benefits and expenses, net	441,619		812			442,431
Income before income taxes	93,643		7,416			101,059
Income tax expense	32,595		2,439			35,034
Net income	61,048		4,977			66,025

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of income for the six months ended June 30, 2012:

	As previously
	reported		Adjustments			As restated
Net investment income	$	602,921	$	(9,654	)	$	593,267
Other realized investment gains, net	37,053		16,741			53,794
Total realized investment gains (losses), net	36,799		16,741			53,540
Total revenues	1,105,301		7,087			1,112,388
Amortization of deferred acquisition costs and value of business acquired	31,231		1,260			32,491
Total benefits and expenses, net	936,304		1,260			937,564
Income before income taxes	168,997		5,827			174,824
Income tax expense	56,955		1,921			58,876
Net income	112,042		3,906			115,948

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of comprehensive income

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income for the three months ended June 30, 2013:

	As previously
	reported			Adjustments			As restated
Net income (loss)	$	43,413		$	(47,467	)	$	(4,054	)
Unrealized gains (losses) arising on fixed maturities, available-for-sale	(612,083		)	23,390			(588,693		)
Reclassification adjustment for (gains) losses realized in net income	2,251			273			2,524
Net unrealized (gains) losses related to investments	(616,872		)	23,663			(593,209		)
Future policy benefits, deferred acquisition costs and value of business acquired adjustments	125,324			(4,150		)	121,174
Other comprehensive income (loss) before income taxes	(491,548		)	19,513			(472,035		)
Income tax (benefit) expense related to items of other comprehensive income (loss)	(172,042		)	6,829			(165,213		)
Other comprehensive income (loss)	(319,506		)	12,684			(306,822		)
Comprehensive income (loss)	(276,093		)	(34,783		)	(310,876		)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2013:

	As previously
	reported			Adjustments			As restated
Net income	$	117,640		$	(54,860	)	$	62,780
Unrealized gains (losses) arising on fixed maturities, available-for-sale	(652,701		)	22,828			(629,873		)
Reclassification adjustment for (gains) losses realized in net income	(19,436		)	(2,620		)	(22,056		)
Net unrealized (gains) losses related to investments	(655,229		)	20,208			(635,021		)
Future policy benefits, deferred acquisition costs and value of business acquired adjustments	140,011			(3,479		)	136,532
Other comprehensive income (loss) before income taxes	(515,218		)	16,729			(498,489		)
Income tax (benefit) expense related to items of other comprehensive income (loss)	(180,327		)	5,855			(174,472		)
Other comprehensive income (loss)	(334,891		)	10,874			(324,017		)
Comprehensive income (loss)	(217,251		)	(43,986		)	(261,237		)

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income for the three months ended June 30, 2012:

	As previously
	reported			Adjustments			As restated
Net income	$	61,048		$	4,977		$	66,025
Unrealized gains (losses) arising on fixed maturities, available-for-sale	177,624			(5,299		)	172,325
Reclassification adjustment for (gains) losses realized in net income	(27,290		)	2,414			(24,876		)
Net unrealized (gains) losses related to investments	161,919			(2,885		)	159,034
Future policy benefits, deferred acquisition costs and value of business acquired adjustments	(41,214		)	482			(40,732		)
Other comprehensive income (loss) before income taxes	120,705			(2,403		)	118,302
Income tax (benefit) expense related to items of other comprehensive income (loss)	42,247			(841		)	41,406
Other comprehensive income (loss)	78,458			(1,562		)	76,896
Comprehensive income (loss)	139,506			3,415			142,921

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of comprehensive income for the six months ended June 30, 2012:

	As previously
	reported			Adjustments			As restated
Net income	$	112,042		$	3,906		$	115,948
Unrealized gains (losses) arising on fixed maturities, available-for-sale	211,734			(4,676		)	207,058
Reclassification adjustment for (gains) losses realized in net income	(44,681		)	1,914			(42,767		)
Net unrealized (gains) losses related to investments	174,092			(2,762		)	171,330
Future policy benefits, deferred acquisition costs and value of business acquired adjustments	(29,063		)	439			(28,624		)
Other comprehensive income (loss) before income taxes	145,029			(2,323		)	142,706
Income tax (benefit) expense related to items of other comprehensive income (loss)	50,760			(813		)	49,947
Other comprehensive income (loss)	94,269			(1,510		)	92,759
Comprehensive income (loss)	206,311			2,396			208,707

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of stockholder's equity

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of stockholder’s equity for the six months ended June 30, 2013:

	As previously
	reported			Adjustments			As restated
Net income	$	117,640		$	(54,860	)	$	62,780
Other comprehensive income (loss), net of income taxes	(334,891		)	10,874			(324,017		)
Accumulated other comprehensive income (loss)	300,808			10,874			311,682
Retained earnings	793,730			(54,860		)	738,870
Total	1,873,930			(43,986		)	1,829,944

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of stockholder’s equity for the six months ended June 30, 2012:

	As previously
	reported		Adjustments			As restated
Net income	$	112,042	$	3,906		$	115,948
Other comprehensive income (loss), net of income taxes	94,269		(1,510		)	92,759
Accumulated other comprehensive income (loss)	564,251		(1,510		)	562,741
Retained earnings	677,654		3,906			681,560
Total	2,018,351		2,396			2,020,747

Summary of effects of the restatement adjustments on the unaudited condensed consolidated statement of cash flows

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of cash flows items for the six months ended June 30, 2013:

	As previously
	reported			Adjustments			As restated
Net cash provided by operating activities	$	581,270		$	(36,964	)	$	544,306
Net change in short-term investments	(3,682,162		)	1,950,814			(1,731,348		)
Net change in repurchase agreements	1,894,338			(1,894,338		)	—
Net cash used in investing activities	(698,175		)	56,476			(641,699		)
Change in due to parent and affiliates	499			(19,512		)	(19,013		)
Net cash provided by financing activities	111,076			(19,512		)	91,564

The following table summarizes the effects of the restatement adjustments, previously discussed, on the unaudited condensed consolidated statement of cash flows items for the six months ended June 30, 2012:

	As previously
	reported			Adjustments			As restated
Net cash provided by operating activities	$	226,115		$	5,249		$	231,364
Net change in short-term investments	(2,115,747		)	1,091,967			(1,023,780		)
Net change in repurchase agreements	1,098,522			(1,098,522		)	—
Net cash used in investing activities	(466,925		)	(6,555		)	(473,480		)
Change in due to parent and affiliates	(10,279		)	1,306			(8,973		)
Net cash provided by financing activities	242,377			1,306			243,683