Segment Information

12 Months Ended

Dec. 31, 2019

Management organizes the business into five operating segments:


•	Life—consists of whole, term, universal, indexed and variable life insurance. Products are primarily sold through career, multiple-line, and independent agents as well as direct marketing channels.


•	Annuity—consists of fixed, indexed, and variable annuity products. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.


•	Health—consists of Medicare Supplement, stop loss, other supplemental health products and credit disability insurance. Products are typically distributed through independent agents and managing general underwriters.


•	Property and Casualty—consists of personal, agricultural and targeted commercial coverages and credit-related property insurance. Products are primarily sold through multiple-line and independent agents or managing general agents.


•	Corporate and Other—consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations.

The accounting policies of the segments are the same as those described in Note 2 to the consolidated financial statements. All revenues and expenses specifically attributable to policy transactions are recorded directly to the appropriate operating segment. Revenues and expenses not specifically attributable to policy transactions are allocated to each segment as follows:


•	Recurring income from bonds and mortgage loans is allocated based on the assets allocated to each line of business at the average yield available from these assets.


•	Net investment income from all other assets is allocated to the insurance segments in accordance with the amount of capital allocated to each segment, with the remainder recorded in the Corporate and Other segment.


•	Expenses are charged to segments through direct identification and allocations based upon various factors.

The following summarizes total assets by operating segments (in thousands):



	Years ended December 31,
	2019		2018		2017
Total Assets
Life	$	6,825,120	$	6,263,366	$	6,101,458
Annuity	13,808,302		12,900,650		12,345,215
Health	511,440		527,525		468,947
Property and Casualty	2,570,818		2,216,628		2,189,515
Corporate and Other	4,881,886		5,004,184		5,281,629
Total	$	28,597,566	$	26,912,353	$	26,386,764

The results of operations measured as the income before federal income taxes and other items by operating segments are summarized below (in thousands):



	Year ended December 31, 2019
								Property		Corporate
	Life			Annuity		Health		& Casualty		& Other		Total
PREMIUMS AND OTHER REVENUES
Premiums	$	359,419		$	147,139	$	165,035	$	1,511,201	$	—	$	2,182,794
Other policy revenues	288,061			17,195		—		—		—		305,256
Net investment income	263,788			663,895		9,467		64,263		75,993		1,077,406
Net realized investment gains	—			—		—		—		30,751		30,751
Net gains on equity securities	—			—		—		—		422,535		422,535
Other income	1,967			2,727		20,762		11,897		14,048		51,401
Total premiums and other revenues	913,235			830,956		195,264		1,587,361		543,327		4,070,143
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits	449,252			218,576		—		—		—		667,828
Claims incurred	—			—		109,013		1,042,153		—		1,151,166
Interest credited to policyholders' account balances	80,950			431,049		—		—		—		511,999
Commissions for acquiring and servicing policies	162,203			71,350		31,624		267,457		—		532,634
Other operating expenses	190,104			50,507		41,475		201,580		41,222		524,888
Change in deferred policy acquisition costs	(26,036		)	9,474		1,382		2,431		—		(12,749		)
Total benefits, losses and expenses	856,473			780,956		183,494		1,513,621		41,222		3,375,766
Income before federal income tax and other items	$	56,762		$	50,000	$	11,770	$	73,740	$	502,105	$	694,377



	Year ended December 31, 2018
									Property			Corporate
	Life			Annuity			Health		& Casualty			& Other			Total
PREMIUMS AND OTHER REVENUES
Premiums	$	350,012		$	231,027		$	180,414	$	1,466,740		$	—		$	2,228,193
Other policy revenues	270,839			14,710			—		—			—			285,549
Net investment income	233,181			467,788			9,376		62,320			85,702			858,367
Net realized investment gains	—			—			—		—			16,931			16,931
Net losses on equity securities	—			—			—		—			(107,188		)	(107,188		)
Other income	2,266			2,611			24,185		10,628			4,840			44,530
Total premiums and other revenues	856,298			716,136			213,975		1,539,688			285			3,326,382
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits	417,702			290,611			—		—			—			708,313
Claims incurred	—			—			122,547		1,049,112			—			1,171,659
Interest credited to policyholders' account balances	54,249			261,435			—		—			—			315,684
Commissions for acquiring and servicing policies	158,657			94,879			32,516		278,002			—			564,054
Other operating expenses	190,835			46,859			41,819		186,019			31,479			497,011
Change in deferred policy acquisition costs	(33,893		)	(35,135		)	2,846		(5,315		)	—			(71,497		)
Total benefits, losses and expenses	787,550			658,649			199,728		1,507,818			31,479			3,185,224
Income before federal income tax and other items	$	68,748		$	57,487		$	14,247	$	31,870		$	(31,194	)	$	141,158



	Year ended December 31, 2017
									Property			Corporate
	Life			Annuity			Health		& Casualty			& Other		Total
PREMIUMS AND OTHER REVENUES
Premiums	$	328,570		$	222,207		$	156,436	$	1,359,989		$	—	$	2,067,202
Other policy revenues	234,979			13,547			—		—			—		248,526
Net investment income	245,835			573,789			9,538		61,688			75,227		966,077
Net realized investment gains	—			—			—		—			91,209		91,209
Other income	2,256			2,832			19,284		8,372			5,242		37,986
Total premiums and other revenues	811,640			812,375			185,258		1,430,049			171,678		3,411,000
BENEFITS, LOSSES AND EXPENSES
Policyholder benefits	410,152			270,970			—		—			—		681,122
Claims incurred	—			—			103,037		934,044			—		1,037,081
Interest credited to policyholders' account balances	73,965			341,225			—		—			—		415,190
Commissions for acquiring and servicing policies	147,176			105,389			27,400		265,440			—		545,405
Other operating expenses	190,482			44,486			38,475		177,345			34,552		485,340
Change in deferred policy acquisition costs	(49,786		)	(30,022		)	3,814		(5,490		)	—		(81,484		)
Total benefits, losses and expenses	771,989			732,048			172,726		1,371,339			34,552		3,082,654
Income before federal income tax and other items	$	39,651		$	80,327		$	12,532	$	58,710		$	137,126	$	328,346