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☒
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Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Texas
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74-0484030
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
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Smaller reporting company
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¨
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Emerging growth company
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¨
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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ITEM 15.
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ITEM 16.
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•
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A.M. Best Company: A
(1)
|
•
|
Standard & Poor’s (“S&P”): A
(2)
|
(1)
|
A.M. Best’s active company rating scale consists of thirteen ratings ranging from A++ (Superior) to D (poor).
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(2)
|
S&P’s active company ratings scale ‘AAA’ to ‘R’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.
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•
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reducing new sales of insurance and annuity products or increasing the number or amount of surrenders and withdrawals;
|
•
|
affecting our relationships with our sales force, independent sales intermediaries and credit counterparties;
|
•
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requiring us to offer higher crediting rates or greater policyholder guarantees on our insurance products in order to remain competitive; and
|
•
|
affecting our ability to obtain reinsurance at reasonable prices.
|
•
|
Three buildings in League City, Texas which are used by our Life, Health, and Corporate and Other segments.
|
•
|
Five buildings, four in Springfield, Missouri and the other in Glenmont, New York, which are used by our Property and Casualty segment.
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Equity Compensation Plan Information
|
|||||||||
|
|
Number of securities to be issued
upon exercise of outstanding
options, warrants and rights
|
|
Weighted-average exercise price
outstanding options, warrants
and rights
|
|
Number of securities remaining
available for future issuance under
equity compensation plans
(excluding securities reflected in
column (a))
|
|||||
|
|
(a)
|
|
(b)
|
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(c)
|
|||||
Plan category
|
|
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|
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|
|||||
Equity compensation plans
|
|
|
|
|
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|
|||||
Approved by security holders
|
|
—
|
|
|
$
|
80.05
|
|
|
$
|
2,391,739
|
|
Not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
—
|
|
|
$
|
80.05
|
|
|
$
|
2,391,739
|
|
|
|
December 31,
|
||||||||||||||||||||||
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||
American National
|
|
$
|
100.00
|
|
|
$
|
101.53
|
|
|
$
|
93.51
|
|
|
$
|
115.64
|
|
|
$
|
121.55
|
|
|
$
|
123.48
|
|
NASDAQ Total OMX
|
|
100.00
|
|
|
114.43
|
|
|
113.46
|
|
|
128.22
|
|
|
155.63
|
|
|
147.16
|
|
||||||
NASDAQ Insurance OMX
|
|
100.00
|
|
|
114.10
|
|
|
113.26
|
|
|
136.41
|
|
|
159.53
|
|
|
150.51
|
|
|
|
Years ended December 31,
|
||||||||||||||||||
(dollar amounts in millions, except per share amounts)
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Total premiums and other revenues
|
|
$
|
3,326
|
|
|
$
|
3,411
|
|
|
$
|
3,228
|
|
|
$
|
3,017
|
|
|
$
|
3,051
|
|
Income from continuing operations, net of tax*
|
|
160
|
|
|
496
|
|
|
183
|
|
|
242
|
|
|
247
|
|
|||||
Net income*
|
|
160
|
|
|
496
|
|
|
183
|
|
|
242
|
|
|
247
|
|
|||||
Net income attributable to American National*
|
|
159
|
|
|
494
|
|
|
181
|
|
|
243
|
|
|
245
|
|
|||||
Per common share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income from continuing operations, net of tax*
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
5.97
|
|
|
18.43
|
|
|
6.79
|
|
|
9.02
|
|
|
9.21
|
|
|||||
Diluted
|
|
5.96
|
|
|
18.38
|
|
|
6.77
|
|
|
8.99
|
|
|
9.17
|
|
|||||
Net income attributable to American National*
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
5.91
|
|
|
18.35
|
|
|
6.73
|
|
|
9.04
|
|
|
9.15
|
|
|||||
Diluted
|
|
5.91
|
|
|
18.31
|
|
|
6.71
|
|
|
9.02
|
|
|
9.11
|
|
|||||
Cash dividends per share
|
|
3.28
|
|
|
3.28
|
|
|
3.26
|
|
|
3.14
|
|
|
3.08
|
|
|
|
December 31,
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
Total assets
|
|
$
|
26,912
|
|
|
$
|
26,387
|
|
|
$
|
24,533
|
|
|
$
|
23,766
|
|
|
$
|
23,566
|
|
Total American National stockholders’ equity
|
|
5,257
|
|
|
5,247
|
|
|
4,652
|
|
|
4,452
|
|
|
4,428
|
|
|||||
Total equity
|
|
5,272
|
|
|
5,256
|
|
|
4,661
|
|
|
4,462
|
|
|
4,440
|
|
*
|
Results for the year ended December 31, 2017 include the impact of the U. S. Tax Cut and Jobs Act ("Tax Reform") of $206.4 million, primarily due to the remeasurement of our deferred tax balances to the new 21% corporate income tax rate. Excluding the impact of Tax Reform, the Company’s net income for the year ended December 31, 2017 would have been $287.3 million and net earnings per basic and diluted share of $10.68 and $10.65, respectively.
|
•
|
Future lapse rates will remain reasonably consistent with our current expectations;
|
•
|
Mortality rates will remain reasonably consistent within standard industry mortality table ranges; and
|
•
|
Future interest spreads will remain reasonably consistent with our current expectations.
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
|
Gross
|
|
Ceded
|
|
Net
|
|
Gross
|
|
Ceded
|
|
Net
|
||||||||||||
Case
|
|
$
|
858,800
|
|
|
$
|
58,381
|
|
|
$
|
800,419
|
|
|
$
|
544,256
|
|
|
$
|
62,629
|
|
|
$
|
481,627
|
|
IBNR
|
|
131,988
|
|
|
11,107
|
|
|
120,881
|
|
|
409,137
|
|
|
26,657
|
|
|
382,480
|
|
||||||
Total
|
|
$
|
990,788
|
|
|
$
|
69,488
|
|
|
$
|
921,300
|
|
|
$
|
953,393
|
|
|
$
|
89,286
|
|
|
$
|
864,107
|
|
•
|
Initial Expected Loss Ratio
–
This method calculates an estimate of ultimate losses by applying an estimated loss ratio to actual earned premium for each calendar/accident year. This method is appropriate for classes of business where the actual paid or reported loss experience is not yet mature enough to influence initial expectations of the ultimate loss ratios.
|
•
|
Bornhuetter-Ferguson
–
This method uses as a starting point an assumed initial expected loss ratio method and blends in the loss ratio implied by the claims experience to date by using loss development patterns based on our historical experience. This method is generally appropriate where there are few reported claims and an unstable pattern of reported losses.
|
•
|
Loss or Expense Development (Chain Ladder)
–
This method uses actual loss or defense and cost containment expense data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total. This method is appropriate when there is a relatively stable pattern of loss and expense emergence and a relatively large number of reported claims.
|
•
|
Ratio of Paid Defense and Cost Containment Expense to Paid Loss Development
–
This method uses the ratio of paid defense and cost containment expense to paid loss data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total. In this method, an ultimate ratio of paid defense and cost containment expense to paid loss is selected for each accident period. The selected paid defense and cost containment expense to paid loss ratio is then applied to the selected ultimate loss for each accident period to estimate the ultimate defense and cost containment expense. Paid defense and cost containment expense is then subtracted from the ultimate defense and cost containment expense to calculate the unpaid defense and cost containment expense for that accident period.
|
•
|
Calendar Year Paid Adjusting and Other Expense to Paid Loss
–
This method uses a selected prior calendar years’ paid expense to paid loss ratio to project ultimate loss adjustment expenses for adjusting and other expense. A percentage of the selected ratio is applied to the case reserves (depending on the line of insurance) and 100% to the indicated IBNR reserves. These ratios assume that a percentage of the expense is incurred when a claim is opened and the remaining percentage is paid throughout the claim's life.
|
•
|
Stability of future inflation rates and consistency with historical inflation norms;
|
•
|
The expected loss development patterns;
|
•
|
Consistent claims handling, reserving and payment processes;
|
•
|
No unusual growth patterns or unexpected changes in the mix of business; and
|
•
|
No significant prospective changes in laws that would significantly affect future payouts.
|
Cumulative Increase (Decrease) in Reserves
|
|
1.0% Decrease
|
|
3.0% Increase
|
||||
Personal
|
|
|
|
|
||||
Automobile
|
|
$
|
(6,038
|
)
|
|
$
|
18,582
|
|
Homeowner
|
|
(1,578
|
)
|
|
4,894
|
|
||
Commercial
|
|
|
|
|
||||
Agricultural Business
|
|
(6,544
|
)
|
|
22,323
|
|
||
Automobile
|
|
(2,799
|
)
|
|
7,965
|
|
|
Increase (Decrease) in DAC
|
||
Increase in future investment margins of 25 basis points
|
$
|
36,192
|
|
Decrease in future investment margins of 25 basis points
|
(39,335
|
)
|
|
Decrease in future life mortality by 1%
|
1,509
|
|
|
Increase in future life mortality by 1%
|
(1,520
|
)
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
|
$
|
2,228,193
|
|
|
$
|
2,067,202
|
|
|
$
|
1,996,648
|
|
|
$
|
160,991
|
|
|
$
|
70,554
|
|
Other policy revenues
|
|
285,549
|
|
|
248,526
|
|
|
306,880
|
|
|
37,023
|
|
|
(58,354
|
)
|
|||||
Net investment income
|
|
858,367
|
|
|
966,077
|
|
|
860,235
|
|
|
(107,710
|
)
|
|
105,842
|
|
|||||
Realized investments gains (losses), net
|
|
16,931
|
|
|
91,209
|
|
|
28,940
|
|
|
(74,278
|
)
|
|
62,269
|
|
|||||
Net losses on equity securities
|
|
(107,188
|
)
|
|
—
|
|
|
—
|
|
|
(107,188
|
)
|
|
—
|
|
|||||
Other income
|
|
44,530
|
|
|
37,986
|
|
|
35,248
|
|
|
6,544
|
|
|
2,738
|
|
|||||
Total premiums and other revenues
|
|
3,326,382
|
|
|
3,411,000
|
|
|
3,227,951
|
|
|
(84,618
|
)
|
|
183,049
|
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
|
708,313
|
|
|
681,122
|
|
|
726,399
|
|
|
27,191
|
|
|
(45,277
|
)
|
|||||
Claims incurred
|
|
1,171,659
|
|
|
1,037,081
|
|
|
1,015,609
|
|
|
134,578
|
|
|
21,472
|
|
|||||
Interest credited to policyholders’ account balances
|
|
315,684
|
|
|
415,190
|
|
|
331,770
|
|
|
(99,506
|
)
|
|
83,420
|
|
|||||
Commissions for acquiring and servicing policies
|
|
564,054
|
|
|
545,405
|
|
|
465,965
|
|
|
18,649
|
|
|
79,440
|
|
|||||
Other operating expenses
|
|
497,011
|
|
|
485,340
|
|
|
476,462
|
|
|
11,671
|
|
|
8,878
|
|
|||||
Change in deferred policy acquisition costs
(1)
|
|
(71,497
|
)
|
|
(81,484
|
)
|
|
1,152
|
|
|
9,987
|
|
|
(82,636
|
)
|
|||||
Total benefits, losses and expenses
|
|
3,185,224
|
|
|
3,082,654
|
|
|
3,017,357
|
|
|
102,570
|
|
|
65,297
|
|
|||||
Income before federal income taxes and other items
|
|
$
|
141,158
|
|
|
$
|
328,346
|
|
|
$
|
210,594
|
|
|
$
|
(187,188
|
)
|
|
$
|
117,752
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
|
$
|
350,012
|
|
|
$
|
328,570
|
|
|
$
|
318,953
|
|
|
$
|
21,442
|
|
|
$
|
9,617
|
|
Other policy revenues
|
|
270,839
|
|
|
234,979
|
|
|
295,289
|
|
|
35,860
|
|
|
(60,310
|
)
|
|||||
Net investment income
|
|
233,181
|
|
|
245,835
|
|
|
227,923
|
|
|
(12,654
|
)
|
|
17,912
|
|
|||||
Other income
|
|
2,266
|
|
|
2,256
|
|
|
2,067
|
|
|
10
|
|
|
189
|
|
|||||
Total premiums and other revenues
|
|
856,298
|
|
|
811,640
|
|
|
844,232
|
|
|
44,658
|
|
|
(32,592
|
)
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
|
417,702
|
|
|
410,152
|
|
|
429,813
|
|
|
7,550
|
|
|
(19,661
|
)
|
|||||
Interest credited to policyholders’ account balances
|
|
54,249
|
|
|
73,965
|
|
|
63,565
|
|
|
(19,716
|
)
|
|
10,400
|
|
|||||
Commissions for acquiring and servicing policies
|
|
158,657
|
|
|
147,176
|
|
|
132,428
|
|
|
11,481
|
|
|
14,748
|
|
|||||
Other operating expenses
|
|
190,835
|
|
|
190,482
|
|
|
186,879
|
|
|
353
|
|
|
3,603
|
|
|||||
Change in deferred policy acquisition costs
(1)
|
|
(33,893
|
)
|
|
(49,786
|
)
|
|
3,887
|
|
|
15,893
|
|
|
(53,673
|
)
|
|||||
Total benefits, losses and expenses
|
|
787,550
|
|
|
771,989
|
|
|
816,572
|
|
|
15,561
|
|
|
(44,583
|
)
|
|||||
Income before federal income taxes and other items
|
|
$
|
68,748
|
|
|
$
|
39,651
|
|
|
$
|
27,660
|
|
|
$
|
29,097
|
|
|
$
|
11,991
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Traditional Life
|
|
$
|
57,714
|
|
|
$
|
58,666
|
|
|
$
|
52,596
|
|
|
$
|
(952
|
)
|
|
$
|
6,070
|
|
Universal Life
|
|
25,270
|
|
|
23,833
|
|
|
19,543
|
|
|
1,437
|
|
|
4,290
|
|
|||||
Indexed UL
|
|
33,543
|
|
|
29,110
|
|
|
24,606
|
|
|
4,433
|
|
|
4,504
|
|
|||||
Total Recurring
|
|
$
|
116,527
|
|
|
$
|
111,609
|
|
|
$
|
96,745
|
|
|
$
|
4,918
|
|
|
$
|
14,864
|
|
Single and excess
(1)
|
|
$
|
3,336
|
|
|
$
|
3,026
|
|
|
$
|
1,932
|
|
|
$
|
310
|
|
|
$
|
1,094
|
|
Credit life
(1)
|
|
8,076
|
|
|
8,689
|
|
|
9,035
|
|
|
(613
|
)
|
|
(346
|
)
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Acquisition cost capitalized
|
|
$
|
131,156
|
|
|
$
|
123,854
|
|
|
$
|
108,825
|
|
|
$
|
7,302
|
|
|
$
|
15,029
|
|
Amortization of DAC
|
|
(97,263
|
)
|
|
(74,068
|
)
|
|
(112,712
|
)
|
|
(23,195
|
)
|
|
38,644
|
|
|||||
Change in DAC
|
|
$
|
33,893
|
|
|
$
|
49,786
|
|
|
$
|
(3,887
|
)
|
|
$
|
(15,893
|
)
|
|
$
|
53,673
|
|
|
|
December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Life insurance in-force
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Traditional life
|
|
$
|
78,872,533
|
|
|
$
|
73,452,519
|
|
|
$
|
67,649,433
|
|
|
$
|
5,420,014
|
|
|
$
|
5,803,086
|
|
Interest-sensitive life
|
|
31,483,582
|
|
|
29,648,405
|
|
|
27,971,646
|
|
|
1,835,177
|
|
|
1,676,759
|
|
|||||
Total life insurance in-force
|
|
$
|
110,356,115
|
|
|
$
|
103,100,924
|
|
|
$
|
95,621,079
|
|
|
$
|
7,255,191
|
|
|
$
|
7,479,845
|
|
|
|
December 31,
|
|
Change over prior year
|
|||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|||||
Number of policies in-force
|
|
|
|
|
|
|
|
|
|
|
|||||
Traditional life
|
|
1,701,980
|
|
|
1,800,425
|
|
|
1,841,359
|
|
|
(98,445
|
)
|
|
(40,934
|
)
|
Interest-sensitive life
|
|
243,447
|
|
|
232,251
|
|
|
222,845
|
|
|
11,196
|
|
|
9,406
|
|
Total number of policies in-force
|
|
1,945,427
|
|
|
2,032,676
|
|
|
2,064,204
|
|
|
(87,249
|
)
|
|
(31,528
|
)
|
|
|
Reserves
|
|
Premiums
|
||||||||||||||||||||
|
|
Years ended December 31,
|
|
Years ended December 31,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Reinsurance assumed
|
|
$
|
1,922
|
|
|
$
|
2,337
|
|
|
$
|
1,716
|
|
|
$
|
389
|
|
|
$
|
1,290
|
|
|
$
|
2,188
|
|
Reinsurance ceded
|
|
(248,688
|
)
|
|
(249,988
|
)
|
|
(219,375
|
)
|
|
(103,749
|
)
|
|
(104,599
|
)
|
|
(104,128
|
)
|
||||||
Total
|
|
$
|
(246,766
|
)
|
|
$
|
(247,651
|
)
|
|
$
|
(217,659
|
)
|
|
$
|
(103,360
|
)
|
|
$
|
(103,309
|
)
|
|
$
|
(101,940
|
)
|
Reinsurer
|
|
A.M. Best
Rating
(1)
|
|
Ceded
Premium
|
|
Percentage of
Gross Premium
|
|||
Swiss Re Life & Health of America Inc.
|
|
A+
|
|
$
|
27,892
|
|
|
4.1
|
%
|
SCOR Global Life Reinsurance Company of Delaware
|
|
A +
|
|
23,988
|
|
|
3.5
|
|
|
Munich American Reassurance Company
|
|
A+
|
|
16,251
|
|
|
2.4
|
|
|
Canada Life Reinsurance
|
|
A+
|
|
9,954
|
|
|
1.5
|
|
|
Reinsurance Group of America
|
|
A-
|
|
5,861
|
|
|
0.9
|
|
|
Other Reinsurers with no single company greater than 5% of the total ceded premium
|
|
|
|
19,803
|
|
|
2.9
|
|
|
Total life reinsurance ceded
|
|
|
|
$
|
103,749
|
|
|
15.3
|
%
|
(1)
|
A.M. Best rating as of the most current information available February 15, 2019.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
|
$
|
231,027
|
|
|
$
|
222,207
|
|
|
$
|
248,714
|
|
|
$
|
8,820
|
|
|
$
|
(26,507
|
)
|
Other policy revenues
|
|
14,710
|
|
|
13,547
|
|
|
11,591
|
|
|
1,163
|
|
|
1,956
|
|
|||||
Net investment income
|
|
467,788
|
|
|
573,789
|
|
|
500,726
|
|
|
(106,001
|
)
|
|
73,063
|
|
|||||
Other income
|
|
2,611
|
|
|
2,832
|
|
|
3,161
|
|
|
(221
|
)
|
|
(329
|
)
|
|||||
Total premiums and other revenues
|
|
716,136
|
|
|
812,375
|
|
|
764,192
|
|
|
(96,239
|
)
|
|
48,183
|
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Policyholder benefits
|
|
290,611
|
|
|
270,970
|
|
|
296,586
|
|
|
19,641
|
|
|
(25,616
|
)
|
|||||
Interest credited to policyholders’ account balances
|
|
261,435
|
|
|
341,225
|
|
|
268,205
|
|
|
(79,790
|
)
|
|
73,020
|
|
|||||
Commissions for acquiring and servicing policies
|
|
94,879
|
|
|
105,389
|
|
|
78,177
|
|
|
(10,510
|
)
|
|
27,212
|
|
|||||
Other operating expenses
|
|
46,859
|
|
|
44,486
|
|
|
51,283
|
|
|
2,373
|
|
|
(6,797
|
)
|
|||||
Change in deferred policy acquisition costs
(1)
|
|
(35,135
|
)
|
|
(30,022
|
)
|
|
(5,780
|
)
|
|
(5,113
|
)
|
|
(24,242
|
)
|
|||||
Total benefits, losses and expenses
|
|
658,649
|
|
|
732,048
|
|
|
688,471
|
|
|
(73,399
|
)
|
|
43,577
|
|
|||||
Income before federal income taxes and other items
|
|
$
|
57,487
|
|
|
$
|
80,327
|
|
|
$
|
75,721
|
|
|
$
|
(22,840
|
)
|
|
$
|
4,606
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Fixed deferred annuity
|
|
$
|
399,102
|
|
|
$
|
741,184
|
|
|
$
|
508,894
|
|
|
$
|
(342,082
|
)
|
|
$
|
232,290
|
|
Single premium immediate annuity
|
|
271,513
|
|
|
261,809
|
|
|
281,521
|
|
|
9,704
|
|
|
(19,712
|
)
|
|||||
Equity-indexed deferred annuity
|
|
858,283
|
|
|
893,032
|
|
|
572,473
|
|
|
(34,749
|
)
|
|
320,559
|
|
|||||
Variable deferred annuity
|
|
64,907
|
|
|
76,470
|
|
|
76,012
|
|
|
(11,563
|
)
|
|
458
|
|
|||||
Total premium and deposits
|
|
1,593,805
|
|
|
1,972,495
|
|
|
1,438,900
|
|
|
(378,690
|
)
|
|
533,595
|
|
|||||
Less: Policy deposits
|
|
1,362,778
|
|
|
1,750,288
|
|
|
1,190,186
|
|
|
(387,510
|
)
|
|
560,102
|
|
|||||
Total earned premiums
|
|
$
|
231,027
|
|
|
$
|
222,207
|
|
|
$
|
248,714
|
|
|
$
|
8,820
|
|
|
$
|
(26,507
|
)
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Acquisition cost capitalized
|
|
$
|
92,602
|
|
|
$
|
104,772
|
|
|
$
|
77,161
|
|
|
$
|
(12,170
|
)
|
|
$
|
27,611
|
|
Amortization of DAC
|
|
(57,467
|
)
|
|
(74,750
|
)
|
|
(71,381
|
)
|
|
17,283
|
|
|
(3,369
|
)
|
|||||
Change in DAC
|
|
$
|
35,135
|
|
|
$
|
30,022
|
|
|
$
|
5,780
|
|
|
$
|
5,113
|
|
|
$
|
24,242
|
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Fixed deferred annuities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed investment income
|
|
$
|
309,797
|
|
|
$
|
336,136
|
|
|
$
|
347,194
|
|
|
$
|
(26,339
|
)
|
|
$
|
(11,058
|
)
|
Interest credited
|
|
(196,610
|
)
|
|
(200,383
|
)
|
|
(209,730
|
)
|
|
3,773
|
|
|
9,347
|
|
|||||
Interest margin
|
|
113,187
|
|
|
135,753
|
|
|
137,464
|
|
|
(22,566
|
)
|
|
(1,711
|
)
|
|||||
Account balance, end of period
|
|
6,773,601
|
|
|
7,108,252
|
|
|
7,068,119
|
|
|
(334,651
|
)
|
|
40,133
|
|
|||||
Equity-indexed annuities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed investment income
|
|
135,595
|
|
|
91,010
|
|
|
66,347
|
|
|
44,585
|
|
|
24,663
|
|
|||||
Option return
|
|
(48,613
|
)
|
|
80,399
|
|
|
26,099
|
|
|
(129,012
|
)
|
|
54,300
|
|
|||||
Interest and mortality
|
|
(55,729
|
)
|
|
(133,177
|
)
|
|
(52,947
|
)
|
|
77,448
|
|
|
(80,230
|
)
|
|||||
Interest and mortality margin
|
|
31,253
|
|
|
38,232
|
|
|
39,499
|
|
|
(6,979
|
)
|
|
(1,267
|
)
|
|||||
Reserve, end of period
|
|
3,668,645
|
|
|
2,934,430
|
|
|
2,054,449
|
|
|
734,215
|
|
|
879,981
|
|
|||||
Single premium immediate annuities
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed investment income
|
|
71,009
|
|
|
66,244
|
|
|
61,083
|
|
|
4,765
|
|
|
5,161
|
|
|||||
Interest and mortality
|
|
(60,296
|
)
|
|
(47,768
|
)
|
|
(50,609
|
)
|
|
(12,528
|
)
|
|
2,841
|
|
|||||
Interest and mortality margin
|
|
10,713
|
|
|
18,476
|
|
|
10,474
|
|
|
(7,763
|
)
|
|
8,002
|
|
|||||
Reserve, end of period
|
|
1,826,137
|
|
|
1,691,502
|
|
|
1,566,440
|
|
|
134,635
|
|
|
125,062
|
|
|||||
Total interest and mortality margin
|
|
$
|
155,153
|
|
|
$
|
192,461
|
|
|
$
|
187,437
|
|
|
$
|
(37,308
|
)
|
|
$
|
5,024
|
|
Total account balance and reserve, end of period
|
|
$
|
12,268,383
|
|
|
$
|
11,734,184
|
|
|
$
|
10,689,008
|
|
|
$
|
534,199
|
|
|
$
|
1,045,176
|
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Premiums
|
|
$
|
180,414
|
|
|
$
|
156,436
|
|
|
$
|
175,589
|
|
|
$
|
23,978
|
|
|
$
|
(19,153
|
)
|
Net investment income
|
|
9,376
|
|
|
9,538
|
|
|
9,942
|
|
|
(162
|
)
|
|
(404
|
)
|
|||||
Other income
|
|
24,185
|
|
|
19,284
|
|
|
17,488
|
|
|
4,901
|
|
|
1,796
|
|
|||||
Total premiums and other revenues
|
|
213,975
|
|
|
185,258
|
|
|
203,019
|
|
|
28,717
|
|
|
(17,761
|
)
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claims incurred
|
|
122,547
|
|
|
103,037
|
|
|
132,390
|
|
|
19,510
|
|
|
(29,353
|
)
|
|||||
Commissions for acquiring and servicing policies
|
|
32,516
|
|
|
27,400
|
|
|
22,846
|
|
|
5,116
|
|
|
4,554
|
|
|||||
Other operating expenses
|
|
41,819
|
|
|
38,475
|
|
|
42,655
|
|
|
3,344
|
|
|
(4,180
|
)
|
|||||
Change in deferred policy acquisition costs
(1)
|
|
2,846
|
|
|
3,814
|
|
|
3,770
|
|
|
(968
|
)
|
|
44
|
|
|||||
Total benefits, losses and expenses
|
|
199,728
|
|
|
172,726
|
|
|
201,661
|
|
|
27,002
|
|
|
(28,935
|
)
|
|||||
Income before federal income taxes and other items
|
|
$
|
14,247
|
|
|
$
|
12,532
|
|
|
$
|
1,358
|
|
|
$
|
1,715
|
|
|
$
|
11,174
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Years ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
Medicare Supplement
|
|
$
|
71,357
|
|
|
39.6
|
%
|
|
$
|
66,550
|
|
|
42.4
|
%
|
|
$
|
68,376
|
|
|
38.9
|
%
|
Credit health
|
|
17,948
|
|
|
9.9
|
|
|
18,217
|
|
|
11.6
|
|
|
15,124
|
|
|
8.6
|
|
|||
MGU
|
|
46,133
|
|
|
25.5
|
|
|
26,574
|
|
|
17.0
|
|
|
17,611
|
|
|
10.0
|
|
|||
Supplemental insurance
|
|
24,119
|
|
|
13.4
|
|
|
25,321
|
|
|
16.2
|
|
|
23,876
|
|
|
13.6
|
|
|||
Medical expense
|
|
11,127
|
|
|
6.2
|
|
|
12,891
|
|
|
8.2
|
|
|
14,021
|
|
|
8.0
|
|
|||
Group health
|
|
3,063
|
|
|
1.7
|
|
|
2,239
|
|
|
1.4
|
|
|
30,974
|
|
|
17.6
|
|
|||
All other
|
|
6,667
|
|
|
3.7
|
|
|
4,644
|
|
|
3.2
|
|
|
5,607
|
|
|
3.3
|
|
|||
Total
|
|
$
|
180,414
|
|
|
100.0
|
%
|
|
$
|
156,436
|
|
|
100.0
|
%
|
|
$
|
175,589
|
|
|
100.0
|
%
|
|
|
Years ended December 31,
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
Medicare Supplement
|
|
36,679
|
|
|
5.9
|
%
|
|
35,481
|
|
|
6.8
|
%
|
|
33,815
|
|
|
6.3
|
%
|
Credit health
|
|
166,176
|
|
|
26.6
|
|
|
179,158
|
|
|
34.4
|
|
|
194,194
|
|
|
36.1
|
|
MGU
|
|
334,653
|
|
|
53.6
|
|
|
210,293
|
|
|
40.5
|
|
|
195,936
|
|
|
36.4
|
|
Supplemental insurance
|
|
53,415
|
|
|
8.5
|
|
|
55,559
|
|
|
10.7
|
|
|
60,261
|
|
|
11.2
|
|
Medical expense
|
|
1,452
|
|
|
0.2
|
|
|
1,878
|
|
|
0.4
|
|
|
2,228
|
|
|
0.4
|
|
Group health
|
|
8,852
|
|
|
1.4
|
|
|
10,577
|
|
|
2.0
|
|
|
17,485
|
|
|
3.3
|
|
All other
|
|
23,552
|
|
|
3.8
|
|
|
26,788
|
|
|
5.2
|
|
|
33,820
|
|
|
6.3
|
|
Total
|
|
624,779
|
|
|
100.0
|
%
|
|
519,734
|
|
|
100.0
|
%
|
|
537,739
|
|
|
100.0
|
%
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Acquisition cost capitalized
|
|
$
|
12,590
|
|
|
$
|
11,413
|
|
|
$
|
11,203
|
|
|
$
|
1,177
|
|
|
$
|
210
|
|
Amortization of DAC
|
|
(15,436
|
)
|
|
(15,227
|
)
|
|
(14,973
|
)
|
|
(209
|
)
|
|
(254
|
)
|
|||||
Change in DAC
|
|
$
|
(2,846
|
)
|
|
$
|
(3,814
|
)
|
|
$
|
(3,770
|
)
|
|
$
|
968
|
|
|
$
|
(44
|
)
|
Reinsurer
|
|
A.M. Best
Rating
(1)
|
|
Ceded
Premium
|
|
Percentage of
Gross Premium
|
||
Axis Insurance Company
|
|
A+
|
|
$
|
59,090
|
|
|
12.2
|
Munich Reinsurance America
|
|
A+
|
|
39,460
|
|
|
8.2
|
|
Navigator Insurance Company
|
|
A
|
|
23,894
|
|
|
4.9
|
|
PartnerRe America Insurance Company
|
|
A
|
|
15,816
|
|
|
3.3
|
|
American Healthcare Indemnity Company
|
|
A-
|
|
12,802
|
|
|
2.6
|
|
Other reinsurers with no single company greater than 5.0% of the total ceded premium
|
|
|
|
152,561
|
|
|
31.5
|
|
Total health reinsurance ceded
|
|
|
|
$
|
303,623
|
|
|
62.7
|
(1)
|
A.M. Best rating as of the most current information available February 15, 2019.
|
|
|
Years ended December 31,
|
|
Change over prior years
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written
|
|
$
|
1,514,563
|
|
|
$
|
1,414,024
|
|
|
$
|
1,282,876
|
|
|
$
|
100,539
|
|
|
$
|
131,148
|
|
Net premiums earned
|
|
$
|
1,466,740
|
|
|
$
|
1,359,989
|
|
|
$
|
1,253,392
|
|
|
$
|
106,751
|
|
|
$
|
106,597
|
|
Net investment income
|
|
62,320
|
|
|
61,688
|
|
|
57,091
|
|
|
632
|
|
|
4,597
|
|
|||||
Other income
|
|
10,628
|
|
|
8,372
|
|
|
4,588
|
|
|
2,256
|
|
|
3,784
|
|
|||||
Total premiums and other revenues
|
|
1,539,688
|
|
|
1,430,049
|
|
|
1,315,071
|
|
|
109,639
|
|
|
114,978
|
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Claims incurred
|
|
1,049,112
|
|
|
934,044
|
|
|
883,219
|
|
|
115,068
|
|
|
50,825
|
|
|||||
Commissions for acquiring and servicing policies
|
|
278,002
|
|
|
265,440
|
|
|
232,514
|
|
|
12,562
|
|
|
32,926
|
|
|||||
Other operating expenses
|
|
186,019
|
|
|
177,345
|
|
|
165,278
|
|
|
8,674
|
|
|
12,067
|
|
|||||
Change in deferred policy acquisition costs
(1)
|
|
(5,315
|
)
|
|
(5,490
|
)
|
|
(725
|
)
|
|
175
|
|
|
(4,765
|
)
|
|||||
Total benefits, losses and expenses
|
|
1,507,818
|
|
|
1,371,339
|
|
|
1,280,286
|
|
|
136,479
|
|
|
91,053
|
|
|||||
Income before federal income taxes and other items
|
|
$
|
31,870
|
|
|
$
|
58,710
|
|
|
$
|
34,785
|
|
|
$
|
(26,840
|
)
|
|
$
|
23,925
|
|
Loss ratio
|
|
71.5
|
%
|
|
68.7
|
%
|
|
70.5
|
%
|
|
2.8
|
%
|
|
(1.8
|
)%
|
|||||
Underwriting expense ratio
|
|
31.3
|
|
|
32.1
|
|
|
31.7
|
|
|
(0.8
|
)
|
|
0.4
|
|
|||||
Combined ratio
|
|
102.8
|
%
|
|
100.8
|
%
|
|
102.2
|
%
|
|
2.0
|
%
|
|
(1.4
|
)%
|
|||||
Impact of catastrophe events on combined ratio
|
|
7.1
|
|
|
7.8
|
|
|
6.8
|
|
|
(0.7
|
)
|
|
1.0
|
|
|||||
Combined ratio without impact of catastrophe events
|
|
95.7
|
%
|
|
93.0
|
%
|
|
95.4
|
%
|
|
2.7
|
%
|
|
(2.4
|
)%
|
|||||
Gross catastrophe losses
|
|
$
|
103,890
|
|
|
$
|
111,455
|
|
|
$
|
85,252
|
|
|
$
|
(7,565
|
)
|
|
$
|
26,203
|
|
Net catastrophe losses
|
|
$
|
105,670
|
|
|
$
|
105,880
|
|
|
$
|
84,989
|
|
|
$
|
(210
|
)
|
|
$
|
20,891
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
|
$
|
564,833
|
|
|
$
|
506,110
|
|
|
$
|
445,860
|
|
|
$
|
58,723
|
|
|
$
|
60,250
|
|
Homeowner
|
|
275,986
|
|
|
259,319
|
|
|
238,967
|
|
|
16,667
|
|
|
20,352
|
|
|||||
Other Personal
|
|
50,651
|
|
|
46,026
|
|
|
42,484
|
|
|
4,625
|
|
|
3,542
|
|
|||||
Total net premiums written
|
|
$
|
891,470
|
|
|
$
|
811,455
|
|
|
$
|
727,311
|
|
|
$
|
80,015
|
|
|
$
|
84,144
|
|
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
|
$
|
543,163
|
|
|
$
|
482,851
|
|
|
$
|
431,580
|
|
|
$
|
60,312
|
|
|
$
|
51,271
|
|
Homeowner
|
|
264,603
|
|
|
247,575
|
|
|
230,565
|
|
|
17,028
|
|
|
17,010
|
|
|||||
Other Personal
|
|
48,105
|
|
|
44,306
|
|
|
42,122
|
|
|
3,799
|
|
|
2,184
|
|
|||||
Total net premiums earned
|
|
$
|
855,871
|
|
|
$
|
774,732
|
|
|
$
|
704,267
|
|
|
$
|
81,139
|
|
|
$
|
70,465
|
|
Loss ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
|
81.4
|
%
|
|
80.3
|
%
|
|
85.7
|
%
|
|
1.1
|
%
|
|
(5.4
|
)%
|
|||||
Homeowner
|
|
76.6
|
|
|
74.7
|
|
|
71.8
|
|
|
1.9
|
|
|
2.9
|
|
|||||
Other Personal
|
|
62.0
|
|
|
68.3
|
|
|
55.3
|
|
|
(6.3
|
)
|
|
13.0
|
|
|||||
Personal line loss ratio
|
|
78.8
|
%
|
|
77.9
|
%
|
|
79.3
|
%
|
|
0.9
|
%
|
|
(1.4
|
)%
|
|||||
Combined Ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Automobile
|
|
104.3
|
%
|
|
103.5
|
%
|
|
110.9
|
%
|
|
0.8
|
%
|
|
(7.4
|
)%
|
|||||
Homeowner
|
|
111.0
|
|
|
108.4
|
|
|
100.0
|
|
|
2.6
|
|
|
8.4
|
|
|||||
Other Personal
|
|
97.8
|
|
|
99.4
|
|
|
79.1
|
|
|
(1.6
|
)
|
|
20.3
|
|
|||||
Personal line combined ratio
|
|
106.0
|
%
|
|
104.8
|
%
|
|
105.5
|
%
|
|
1.2
|
%
|
|
(0.7
|
)%
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commercial
|
|
$
|
217,196
|
|
|
$
|
197,772
|
|
|
$
|
172,667
|
|
|
$
|
19,424
|
|
|
$
|
25,105
|
|
Agricultural Business
|
|
146,461
|
|
|
142,241
|
|
|
137,182
|
|
|
4,220
|
|
|
5,059
|
|
|||||
Automobile
|
|
110,259
|
|
|
103,048
|
|
|
96,939
|
|
|
7,211
|
|
|
6,109
|
|
|||||
Total net premiums written
|
|
$
|
473,916
|
|
|
$
|
443,061
|
|
|
$
|
406,788
|
|
|
$
|
30,855
|
|
|
$
|
36,273
|
|
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commercial
|
|
$
|
212,145
|
|
|
$
|
188,077
|
|
|
$
|
165,828
|
|
|
$
|
24,068
|
|
|
$
|
22,249
|
|
Agricultural Business
|
|
142,996
|
|
|
139,573
|
|
|
133,436
|
|
|
3,423
|
|
|
6,137
|
|
|||||
Automobile
|
|
106,718
|
|
|
100,196
|
|
|
94,423
|
|
|
6,522
|
|
|
5,773
|
|
|||||
Total net premiums earned
|
|
$
|
461,859
|
|
|
$
|
427,846
|
|
|
$
|
393,687
|
|
|
$
|
34,013
|
|
|
$
|
34,159
|
|
Loss ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commercial
|
|
47.2
|
%
|
|
50.5
|
%
|
|
63.1
|
%
|
|
(3.3
|
)%
|
|
(12.6
|
)%
|
|||||
Agricultural Business
|
|
62.7
|
|
|
57.2
|
|
|
58.1
|
|
|
5.5
|
|
|
(0.9
|
)
|
|||||
Automobile
|
|
89.0
|
|
|
62.2
|
|
|
70.8
|
|
|
26.8
|
|
|
(8.6
|
)
|
|||||
Commercial line loss ratio
|
|
61.7
|
%
|
|
55.4
|
%
|
|
63.2
|
%
|
|
6.3
|
%
|
|
(7.8
|
)%
|
|||||
Combined ratio
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Commercial
|
|
80.1
|
%
|
|
83.5
|
%
|
|
94.7
|
%
|
|
(3.4
|
)%
|
|
(11.2
|
)%
|
|||||
Agricultural Business
|
|
101.2
|
|
|
95.4
|
|
|
95.4
|
|
|
5.8
|
|
|
—
|
|
|||||
Automobile
|
|
113.4
|
|
|
86.1
|
|
|
95.6
|
|
|
27.3
|
|
|
(9.5
|
)
|
|||||
Commercial line combined ratio
|
|
94.3
|
%
|
|
88.0
|
%
|
|
95.1
|
%
|
|
6.3
|
%
|
|
(7.1
|
)%
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
Net premiums written
|
|
$
|
149,177
|
|
|
$
|
159,508
|
|
|
$
|
148,777
|
|
|
$
|
(10,331
|
)
|
|
$
|
10,731
|
|
Net premiums earned
|
|
149,010
|
|
|
157,411
|
|
|
155,437
|
|
|
(8,401
|
)
|
|
1,974
|
|
|||||
Loss ratio
|
|
60.1
|
%
|
|
59.6
|
%
|
|
48.7
|
%
|
|
0.5
|
%
|
|
10.9
|
%
|
|||||
Combined ratio
|
|
110.8
|
%
|
|
116.2
|
%
|
|
107.2
|
%
|
|
(5.4
|
)%
|
|
9.0
|
%
|
Layer of Loss
|
|
Catastrophe Reinsurance Coverage In Force
|
Less than $10.0 million
|
|
100% of loss retained except for certain losses covered by the
Catastrophe
Aggregate
and
Stretch & Aggregate
coverage described below
|
|
|
|
$10.0 million - $17.5 million
|
|
100% of earthquake losses countrywide
|
|
|
|
$17.5 million - $500 million
|
|
100% of multiple peril losses covered by
Corporate Program
(1)
(all perils)
|
(1)
|
The Corporate Program covers all non-credit property and casualty business, subject to certain limits, and is not specific to the Company or any of its subsidiaries, or any state or region. The program does cover the "MSI" and "GAP" business written by the Specialty Markets Group.
|
|
|
A.M. Best
Rating(1)
|
|
Percent of Risk Covered
|
||||
Reinsurer
|
|
Non–Catastrophe
|
|
Catastrophe
|
||||
Lloyd’s Syndicates
|
|
A
|
|
38.6
|
%
|
|
40.3
|
%
|
Swiss Re
|
|
A+
|
|
12.1
|
|
|
6.3
|
|
Safety National Casualty Corporation
|
|
A+
|
|
18.2
|
|
|
—
|
|
Hannover Ruckversicherung-Aktiengesellschaft, Germany
|
|
A+
|
|
9.9
|
|
|
—
|
|
Tokio Millennium Re Ltd.
|
|
A+
|
|
—
|
|
|
8.9
|
|
Other Reinsurers with no single company with greater than a 8% share
|
|
|
|
21.2
|
|
|
44.5
|
|
Total Reinsurance Coverage
|
|
|
|
100.0
|
%
|
|
100.0
|
%
|
(1)
|
A.M. Best rating as of the most current information available February 20, 2019.
|
|
|
Years ended December 31,
|
|
Change over prior year
|
||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
||||||||||
OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment income
|
|
$
|
85,702
|
|
|
$
|
75,227
|
|
|
$
|
64,553
|
|
|
$
|
10,475
|
|
|
$
|
10,674
|
|
Realized investment gains, net
|
|
16,931
|
|
|
91,209
|
|
|
28,940
|
|
|
(74,278
|
)
|
|
62,269
|
|
|||||
Net losses on equity securities*
|
|
(107,188
|
)
|
|
—
|
|
|
—
|
|
|
(107,188
|
)
|
|
—
|
|
|||||
Other income
|
|
4,840
|
|
|
5,242
|
|
|
7,944
|
|
|
(402
|
)
|
|
(2,702
|
)
|
|||||
Total other revenues
|
|
285
|
|
|
171,678
|
|
|
101,437
|
|
|
(171,393
|
)
|
|
70,241
|
|
|||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other operating expenses
|
|
31,479
|
|
|
34,552
|
|
|
30,367
|
|
|
(3,073
|
)
|
|
4,185
|
|
|||||
Total benefits, losses and expenses
|
|
31,479
|
|
|
34,552
|
|
|
30,367
|
|
|
(3,073
|
)
|
|
4,185
|
|
|||||
Income before federal income taxes and other items
|
|
$
|
(31,194
|
)
|
|
$
|
137,126
|
|
|
$
|
71,070
|
|
|
$
|
(168,320
|
)
|
|
$
|
66,056
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
Fixed maturity, bonds held-to-maturity, at amortized cost
|
|
$
|
8,211,449
|
|
|
36.8
|
%
|
|
$
|
7,552,959
|
|
|
34.5
|
%
|
Fixed maturity, bonds available-for-sale, at fair value
|
|
6,215,563
|
|
|
27.9
|
|
|
6,145,308
|
|
|
28.1
|
|
||
Equity securities, at fair value
|
|
1,530,228
|
|
|
6.9
|
|
|
1,784,226
|
|
|
8.2
|
|
||
Mortgage loans on real estate, net of allowance
|
|
5,124,707
|
|
|
23.0
|
|
|
4,749,999
|
|
|
21.7
|
|
||
Policy loans
|
|
376,254
|
|
|
1.7
|
|
|
377,103
|
|
|
1.7
|
|
||
Investment real estate, net of accumulated depreciation
|
|
587,516
|
|
|
2.6
|
|
|
532,346
|
|
|
2.4
|
|
||
Short-term investments
|
|
206,760
|
|
|
0.9
|
|
|
658,765
|
|
|
3.0
|
|
||
Other invested assets
|
|
50,087
|
|
|
0.2
|
|
|
80,165
|
|
|
0.4
|
|
||
Total investments
|
|
$
|
22,302,564
|
|
|
100.0
|
%
|
|
$
|
21,880,871
|
|
|
100.0
|
%
|
|
|
December 31,
|
|
|
||||||||
|
|
2018
|
|
2017
|
|
Change
|
||||||
Held-to-Maturity
|
|
|
|
|
|
|
||||||
Gains
|
|
$
|
72,403
|
|
|
$
|
240,713
|
|
|
$
|
(168,310
|
)
|
Losses
|
|
(153,768
|
)
|
|
(19,319
|
)
|
|
(134,449
|
)
|
|||
Net gains (losses)
|
|
(81,365
|
)
|
|
221,394
|
|
|
(302,759
|
)
|
|||
Available-for-Sale
|
|
|
|
|
|
|
||||||
Gains
|
|
61,286
|
|
|
204,803
|
|
|
(143,517
|
)
|
|||
Losses
|
|
(107,344
|
)
|
|
(17,396
|
)
|
|
(89,948
|
)
|
|||
Net gains (losses)
|
|
(46,058
|
)
|
|
187,407
|
|
|
(233,465
|
)
|
|||
Total
|
|
$
|
(127,423
|
)
|
|
$
|
408,801
|
|
|
$
|
(536,224
|
)
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
American National stockholders’ equity, excluding accumulated other comprehensive income, net of tax (“AOCI”)
|
|
$
|
5,356,986
|
|
|
$
|
4,604,543
|
|
|
$
|
4,196,279
|
|
Accumulated other comprehensive income (loss)
|
|
(99,738
|
)
|
|
642,216
|
|
|
455,899
|
|
|||
Total American National stockholders’ equity
|
|
$
|
5,257,248
|
|
|
$
|
5,246,759
|
|
|
$
|
4,652,178
|
|
|
|
Years ended
|
||||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
|
Capital and
Retained
Earnings
|
|
Accumulated Other Comprehensive Income (loss)
|
|
Total
|
|
Capital and
Retained
Earnings
|
|
Accumulated Other Comprehensive Income
|
|
Total
|
||||||||||||
Net income attributable to American National
|
|
$
|
158,995
|
|
|
$
|
—
|
|
|
$
|
158,995
|
|
|
$
|
493,651
|
|
|
$
|
—
|
|
|
$
|
493,651
|
|
Dividends to shareholders
|
|
(88,228
|
)
|
|
—
|
|
|
(88,228
|
)
|
|
(88,335
|
)
|
|
—
|
|
|
(88,335
|
)
|
||||||
Change in net unrealized gains on debt securities
|
|
—
|
|
|
(136,261
|
)
|
|
(136,261
|
)
|
|
—
|
|
|
169,740
|
|
|
169,740
|
|
||||||
Foreign currency transaction and translation adjustment
|
|
—
|
|
|
(900
|
)
|
|
(900
|
)
|
|
—
|
|
|
746
|
|
|
746
|
|
||||||
Defined benefit pension plan adjustment
|
|
—
|
|
|
22,326
|
|
|
22,326
|
|
|
—
|
|
|
15,831
|
|
|
15,831
|
|
||||||
Cumulative effect of accounting changes
|
|
687,051
|
|
|
(627,119
|
)
|
|
59,932
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
|
(5,375
|
)
|
|
—
|
|
|
(5,375
|
)
|
|
2,948
|
|
|
—
|
|
|
2,948
|
|
||||||
Total
|
|
$
|
752,443
|
|
|
$
|
(741,954
|
)
|
|
$
|
10,489
|
|
|
$
|
408,264
|
|
|
$
|
186,317
|
|
|
$
|
594,581
|
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
|
Total
|
|
Less than
1 year
|
|
1-3 years
|
|
3-5 years
|
|
More than
5 years
|
||||||||||
Life insurance obligations
(1)
|
|
$
|
5,164,156
|
|
|
$
|
(14,430
|
)
|
|
$
|
(12,922
|
)
|
|
$
|
97,139
|
|
|
$
|
5,094,369
|
|
Annuity obligations
(1)
|
|
15,652,997
|
|
|
1,291,792
|
|
|
2,568,730
|
|
|
2,187,036
|
|
|
9,605,439
|
|
|||||
Property and casualty insurance obligations
(2)
|
|
959,140
|
|
|
424,109
|
|
|
342,658
|
|
|
109,475
|
|
|
82,898
|
|
|||||
Health insurance obligations
(3)
|
|
279,082
|
|
|
174,428
|
|
|
28,657
|
|
|
14,521
|
|
|
61,476
|
|
|||||
Purchase obligations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commitments to purchase and fund investments
|
|
349,258
|
|
|
162,937
|
|
|
156,329
|
|
|
28,565
|
|
|
1,427
|
|
|||||
Mortgage loan commitments
|
|
505,592
|
|
|
371,226
|
|
|
134,366
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
|
13,781
|
|
|
4,104
|
|
|
6,604
|
|
|
2,513
|
|
|
560
|
|
|||||
Defined benefit pension plans
(4)
|
|
82,059
|
|
|
15,386
|
|
|
16,961
|
|
|
14,980
|
|
|
34,732
|
|
|||||
Notes payable
(5)
|
|
137,963
|
|
|
—
|
|
|
10,835
|
|
|
42,399
|
|
|
84,729
|
|
|||||
Total
|
|
$
|
23,144,028
|
|
|
$
|
2,429,552
|
|
|
$
|
3,252,218
|
|
|
$
|
2,496,628
|
|
|
$
|
14,965,630
|
|
(1)
|
Life and annuity obligations include undiscounted estimated claim, benefit, surrender and commission obligations offset by expected future premiums and deposits on in-force insurance policies and annuity contracts. All amounts are gross of any reinsurance recoverable. Estimated claim, benefit and surrender obligations are based on mortality and lapse assumptions comparable with historical experience. Estimated payments on interest-sensitive life and annuity obligations include interest credited to those products. The interest crediting rates are derived by deducting current product spreads from a constant investment yield. As a result, the estimated obligations for insurance liabilities included in the table exceed the liabilities recorded in the liability for future policy benefits and policy and contract claims. Due to the significance of the assumptions used, the amounts presented could materially differ from actual payments. Separate account obligations have not been included in the table since those obligations are not part of the general account obligations and will be funded by cash flows from separate account assets. The general account obligations for insurance liabilities will be funded by cash flows from general account assets and future premiums and deposits. Participating policyholder dividends payable consists of liabilities related to dividends payable in the following calendar year and are presented in the less than one-year category. All estimated cash payments are net of estimated future premiums on policies currently in-force net of future policyholder dividends payable. The participating policyholders’ share obligation included in other policyholder funds and the timing and amount of the ultimate participating policyholder obligation is subject to significant uncertainty and the amount of the participating policyholder obligation is based upon a long-term projection of the performance of the participating policy block.
|
(2)
|
Includes undiscounted case reserves for reported claims and reserves for IBNR with the timing of future payments based on our historical payment patterns. The timing of these payments may vary significantly from the pattern shown in the preceding table. The ultimate losses may vary materially from the recorded amounts, which are our best estimates.
|
(3)
|
Reflects estimated future claim payments for claims incurred based on mortality and morbidity assumptions that are consistent with historical claims experience. These are not discounted with interest and will exceed the liabilities recorded in reserves for future claim payment, which are discounted with interest. Due to the significance of the assumptions used, the amounts presented could materially differ from actual payments.
|
(4)
|
Estimated payments through continuing operations for benefit obligations of the non-qualified defined benefit pension plan. A liability has been established for the full amount of benefits accrued.
|
(5)
|
The estimated payments due by period for notes payable reflect the contractual maturities of principal for amounts borrowed by real estate joint ventures and collateralized by real-estate owned by the respective entity. American National’s liability is limited to its investment in the respective joint venture. See Note 6, Real Estate and Other Investments, of the Notes to the Consolidated Financial Statements for additional details.
|
•
|
Identifying evolving and potential risks and events that may affect us;
|
•
|
managing risks within our risk profile;
|
•
|
appropriate escalation of risks and disclosure of any risk limit breaches within the enterprise, along with the correction method if appropriate;
|
•
|
tracking actual risk levels against predetermined thresholds; and
|
•
|
monitoring our capital adequacy.
|
|
|
December 31,
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
Bonds held-to-maturity
|
|
$
|
8,211,449
|
|
|
56.9
|
%
|
|
$
|
7,552,959
|
|
|
55.1
|
%
|
Bonds available-for-sale
|
|
6,215,563
|
|
|
43.1
|
|
|
6,145,308
|
|
|
44.9
|
|
||
Net unrealized gains (losses) on available-for-sale bonds
|
|
(46,058
|
)
|
|
(0.7
|
)
|
|
187,407
|
|
|
3.1
|
|
|
|
Increase (Decrease) in Market Value Given an Interest Rate
Increase (Decrease) of X Basis Points
|
||||||||||||||
|
|
(100)
|
|
(50)
|
|
50
|
|
100
|
||||||||
December 31, 2018
|
|
$
|
628,238
|
|
|
$
|
311,485
|
|
|
$
|
(307,352
|
)
|
|
$
|
(609,109
|
)
|
December 31, 2017
|
|
$
|
647,685
|
|
|
$
|
320,670
|
|
|
$
|
(317,212
|
)
|
|
$
|
(637,882
|
)
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Fixed maturity, bonds held-to-maturity, at amortized cost
(Fair value $8,130,084 and $7,774,353) |
|
$
|
8,211,449
|
|
|
$
|
7,552,959
|
|
Fixed maturity, bonds available-for-sale, at fair value
(Amortized cost $6,261,621 and $5,957,901) |
|
6,215,563
|
|
|
6,145,308
|
|
||
Equity securities, at fair value
(Cost $714,504 and $757,583) |
|
1,530,228
|
|
|
1,784,226
|
|
||
Mortgage loans on real estate, net of allowance
|
|
5,124,707
|
|
|
4,749,999
|
|
||
Policy loans
|
|
376,254
|
|
|
377,103
|
|
||
Investment real estate, net of accumulated depreciation of $267,920 and $260,904
|
|
587,516
|
|
|
532,346
|
|
||
Short-term investments
|
|
206,760
|
|
|
658,765
|
|
||
Other invested assets
|
|
50,087
|
|
|
80,165
|
|
||
Total investments
|
|
22,302,564
|
|
|
21,880,871
|
|
||
Cash and cash equivalents
|
|
268,164
|
|
|
375,837
|
|
||
Investments in unconsolidated affiliates
|
|
571,897
|
|
|
484,207
|
|
||
Accrued investment income
|
|
188,630
|
|
|
187,670
|
|
||
Reinsurance recoverables
|
|
427,475
|
|
|
418,589
|
|
||
Prepaid reinsurance premiums
|
|
53,622
|
|
|
63,625
|
|
||
Premiums due and other receivables
|
|
345,705
|
|
|
314,345
|
|
||
Deferred policy acquisition costs
|
|
1,497,261
|
|
|
1,373,844
|
|
||
Property and equipment, net of accumulated depreciation of $236,922 and $217,076
|
|
109,472
|
|
|
115,818
|
|
||
Current tax receivable
|
|
8,855
|
|
|
44,170
|
|
||
Prepaid pension
|
|
57,117
|
|
|
—
|
|
||
Other assets
|
|
163,222
|
|
|
158,024
|
|
||
Separate account assets
|
|
918,369
|
|
|
969,764
|
|
||
Total assets
|
|
$
|
26,912,353
|
|
|
$
|
26,386,764
|
|
LIABILITIES
|
|
|
|
|
||||
Future policy benefits
|
|
|
|
|
||||
Life
|
|
$
|
3,047,421
|
|
|
$
|
2,997,353
|
|
Annuity
|
|
1,524,006
|
|
|
1,400,150
|
|
||
Health
|
|
51,347
|
|
|
57,104
|
|
||
Policyholders’ account balances
|
|
12,461,833
|
|
|
12,060,045
|
|
||
Policy and contract claims
|
|
1,481,294
|
|
|
1,390,561
|
|
||
Unearned premium reserve
|
|
908,856
|
|
|
875,294
|
|
||
Other policyholder funds
|
|
318,948
|
|
|
334,501
|
|
||
Liability for retirement benefits
|
|
73,631
|
|
|
114,538
|
|
||
Notes payable
|
|
137,963
|
|
|
137,458
|
|
||
Deferred tax liabilities, net
|
|
264,185
|
|
|
316,370
|
|
||
Other liabilities
|
|
452,985
|
|
|
477,855
|
|
||
Separate account liabilities
|
|
918,369
|
|
|
969,764
|
|
||
Total liabilities
|
|
$
|
21,640,838
|
|
|
$
|
21,130,993
|
|
EQUITY
|
|
|
|
|
||||
American National stockholders’ equity:
|
|
|
|
|
||||
Common stock, $1.00 par value, - Authorized 50,000,000, Issued 30,832,449 and 30,832,449 Outstanding 26,885,449 and 26,931,884 shares
|
|
30,832
|
|
|
30,832
|
|
||
Additional paid-in capital
|
|
20,694
|
|
|
19,193
|
|
||
Accumulated other comprehensive income (loss)
|
|
(99,738
|
)
|
|
642,216
|
|
||
Retained earnings
|
|
5,413,952
|
|
|
4,656,134
|
|
||
Treasury stock, at cost
|
|
(108,492
|
)
|
|
(101,616
|
)
|
||
Total American National stockholders’ equity
|
|
5,257,248
|
|
|
5,246,759
|
|
||
Noncontrolling interest
|
|
14,267
|
|
|
9,012
|
|
||
Total equity
|
|
5,271,515
|
|
|
5,255,771
|
|
||
Total liabilities and equity
|
|
$
|
26,912,353
|
|
|
$
|
26,386,764
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
||||||
Premiums
|
|
|
|
|
|
|
||||||
Life
|
|
$
|
350,012
|
|
|
$
|
328,570
|
|
|
$
|
318,953
|
|
Annuity
|
|
231,027
|
|
|
222,207
|
|
|
248,714
|
|
|||
Health
|
|
180,414
|
|
|
156,436
|
|
|
175,589
|
|
|||
Property and casualty
|
|
1,466,740
|
|
|
1,359,989
|
|
|
1,253,392
|
|
|||
Other policy revenues
|
|
285,549
|
|
|
248,526
|
|
|
306,880
|
|
|||
Net investment income
|
|
858,367
|
|
|
966,077
|
|
|
860,235
|
|
|||
Net realized investment gains
|
|
18,174
|
|
|
104,595
|
|
|
46,607
|
|
|||
Other-than-temporary impairments
|
|
(1,243
|
)
|
|
(13,386
|
)
|
|
(17,667
|
)
|
|||
Net losses on equity securities
|
|
(107,188
|
)
|
|
—
|
|
|
—
|
|
|||
Other income
|
|
44,530
|
|
|
37,986
|
|
|
35,248
|
|
|||
Total premiums and other revenues
|
|
3,326,382
|
|
|
3,411,000
|
|
|
3,227,951
|
|
|||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
||||||
Policyholder benefits
|
|
|
|
|
|
|
||||||
Life
|
|
417,702
|
|
|
410,152
|
|
|
429,813
|
|
|||
Annuity
|
|
290,611
|
|
|
270,970
|
|
|
296,586
|
|
|||
Claims incurred
|
|
|
|
|
|
|
||||||
Health
|
|
122,547
|
|
|
103,037
|
|
|
132,390
|
|
|||
Property and casualty
|
|
1,049,112
|
|
|
934,044
|
|
|
883,219
|
|
|||
Interest credited to policyholders’ account balances
|
|
315,684
|
|
|
415,190
|
|
|
331,770
|
|
|||
Commissions for acquiring and servicing policies
|
|
564,054
|
|
|
545,405
|
|
|
465,965
|
|
|||
Other operating expenses
|
|
497,011
|
|
|
485,340
|
|
|
476,462
|
|
|||
Change in deferred policy acquisition costs
|
|
(71,497
|
)
|
|
(81,484
|
)
|
|
1,152
|
|
|||
Total benefits, losses and expenses
|
|
3,185,224
|
|
|
3,082,654
|
|
|
3,017,357
|
|
|||
Income before federal income tax and other items
|
|
141,158
|
|
|
328,346
|
|
|
210,594
|
|
|||
Less: Provision (benefit) for federal income taxes
|
|
|
|
|
|
|
||||||
Current
|
|
24,044
|
|
|
49,101
|
|
|
(15,376
|
)
|
|||
Deferred
|
|
(22,599
|
)
|
|
(142,096
|
)
|
|
93,082
|
|
|||
Total provision (benefit) for federal income taxes
|
|
1,445
|
|
|
(92,995
|
)
|
|
77,706
|
|
|||
Income after federal income tax
|
|
139,713
|
|
|
421,341
|
|
|
132,888
|
|
|||
Equity in earnings of unconsolidated affiliates
|
|
21,281
|
|
|
86,674
|
|
|
57,200
|
|
|||
Other components of net periodic pension costs, net of tax
|
|
(572
|
)
|
|
(12,408
|
)
|
|
(7,421
|
)
|
|||
Net income
|
|
160,422
|
|
|
495,607
|
|
|
182,667
|
|
|||
Less
:
Net income attributable to noncontrolling interest, net of tax
|
|
1,427
|
|
|
1,956
|
|
|
1,664
|
|
|||
Net income attributable to American National
|
|
$
|
158,995
|
|
|
$
|
493,651
|
|
|
$
|
181,003
|
|
Amounts available to American National common stockholders
|
|
|
|
|
|
|
||||||
Earnings per share
|
|
|
|
|
|
|
||||||
Basic
|
|
$
|
5.91
|
|
|
$
|
18.35
|
|
|
$
|
6.73
|
|
Diluted
|
|
5.91
|
|
|
18.31
|
|
|
6.71
|
|
|||
Cash dividends to common stockholders
|
|
3.28
|
|
|
3.28
|
|
|
3.26
|
|
|||
Weighted average common shares outstanding
|
|
26,886,357
|
|
|
26,896,926
|
|
|
26,908,570
|
|
|||
Weighted average common shares outstanding and dilutive potential common shares
|
|
26,916,643
|
|
|
26,960,695
|
|
|
26,967,072
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Net income
|
|
$
|
160,422
|
|
|
$
|
495,607
|
|
|
$
|
182,667
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
||||||
Change in net unrealized gains (losses) on securities
|
|
(136,261
|
)
|
|
169,740
|
|
|
93,704
|
|
|||
Foreign currency transaction and translation adjustments
|
|
(900
|
)
|
|
746
|
|
|
289
|
|
|||
Defined benefit pension plan adjustment
|
|
22,326
|
|
|
15,831
|
|
|
9,286
|
|
|||
Other comprehensive income (loss), net of tax
|
|
(114,835
|
)
|
|
186,317
|
|
|
103,279
|
|
|||
Total comprehensive income
|
|
45,587
|
|
|
681,924
|
|
|
285,946
|
|
|||
Less: Comprehensive income attributable to noncontrolling interest
|
|
1,427
|
|
|
1,956
|
|
|
1,664
|
|
|||
Total comprehensive income attributable to American National
|
|
$
|
44,160
|
|
|
$
|
679,968
|
|
|
$
|
284,282
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Common Stock
|
|
|
|
|
|
|
||||||
Balance at beginning and end of the period
|
|
$
|
30,832
|
|
|
$
|
30,832
|
|
|
$
|
30,832
|
|
Additional Paid-In Capital
|
|
|
|
|
|
|
||||||
Balance as of January 1,
|
|
19,193
|
|
|
16,406
|
|
|
13,689
|
|
|||
Reissuance of treasury shares
|
|
1,173
|
|
|
1,964
|
|
|
1,825
|
|
|||
Income tax effect from restricted stock arrangement
|
|
—
|
|
|
—
|
|
|
49
|
|
|||
Amortization of restricted stock
|
|
328
|
|
|
823
|
|
|
843
|
|
|||
Balance at end of the period
|
|
20,694
|
|
|
19,193
|
|
|
16,406
|
|
|||
Accumulated Other Comprehensive Income
|
|
|
|
|
|
|
||||||
Balance as of January 1,
|
|
642,216
|
|
|
455,899
|
|
|
352,620
|
|
|||
Cumulative effect of accounting change
|
|
(627,119
|
)
|
|
—
|
|
|
—
|
|
|||
Other comprehensive income (loss)
|
|
(114,835
|
)
|
|
186,317
|
|
|
103,279
|
|
|||
Balance at end of the period
|
|
(99,738
|
)
|
|
642,216
|
|
|
455,899
|
|
|||
Retained Earnings
|
|
|
|
|
|
|
||||||
Balance as of January 1,
|
|
4,656,134
|
|
|
4,250,818
|
|
|
4,157,184
|
|
|||
Cumulative effect of accounting changes
|
|
687,051
|
|
|
—
|
|
|
372
|
|
|||
Net income attributable to American National
|
|
158,995
|
|
|
493,651
|
|
|
181,003
|
|
|||
Cash dividends to common stockholders
|
|
(88,228
|
)
|
|
(88,335
|
)
|
|
(87,741
|
)
|
|||
Balance at end of the period
|
|
5,413,952
|
|
|
4,656,134
|
|
|
4,250,818
|
|
|||
Treasury Stock
|
|
|
|
|
|
|
||||||
Balance as of January 1,
|
|
(101,616
|
)
|
|
(101,777
|
)
|
|
(102,043
|
)
|
|||
Reissuance (purchase) of treasury shares
|
|
(6,876
|
)
|
|
161
|
|
|
266
|
|
|||
Balance at end of the period
|
|
(108,492
|
)
|
|
(101,616
|
)
|
|
(101,777
|
)
|
|||
Noncontrolling Interest
|
|
|
|
|
|
|
||||||
Balance as of January 1,
|
|
9,012
|
|
|
9,317
|
|
|
10,189
|
|
|||
Contributions
|
|
6,182
|
|
|
26
|
|
|
—
|
|
|||
Distributions
|
|
(2,354
|
)
|
|
(2,287
|
)
|
|
(2,536
|
)
|
|||
Net income attributable to noncontrolling interest
|
|
1,427
|
|
|
1,956
|
|
|
1,664
|
|
|||
Balance at end of the period
|
|
14,267
|
|
|
9,012
|
|
|
9,317
|
|
|||
Total Equity
|
|
$
|
5,271,515
|
|
|
$
|
5,255,771
|
|
|
$
|
4,661,495
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
160,422
|
|
|
$
|
495,607
|
|
|
$
|
182,667
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Net realized investment gains
|
|
(18,174
|
)
|
|
(104,595
|
)
|
|
(46,607
|
)
|
|||
Other-than-temporary impairments
|
|
1,243
|
|
|
13,386
|
|
|
17,667
|
|
|||
Accretion of premiums, discounts and loan origination fees
|
|
(6,163
|
)
|
|
(2,008
|
)
|
|
(2,926
|
)
|
|||
Net capitalized interest on policy loans and mortgage loans
|
|
(39,262
|
)
|
|
(32,551
|
)
|
|
(32,813
|
)
|
|||
Depreciation
|
|
52,049
|
|
|
53,937
|
|
|
45,278
|
|
|||
Interest credited to policyholders’ account balances
|
|
315,684
|
|
|
415,190
|
|
|
331,770
|
|
|||
Charges to policyholders’ account balances
|
|
(285,549
|
)
|
|
(248,526
|
)
|
|
(306,880
|
)
|
|||
Deferred federal income tax expense (benefit)
|
|
(22,599
|
)
|
|
(142,096
|
)
|
|
93,082
|
|
|||
Equity in earnings of unconsolidated affiliates
|
|
(21,281
|
)
|
|
(86,674
|
)
|
|
(57,200
|
)
|
|||
Distributions from equity method investments
|
|
21,453
|
|
|
21,541
|
|
|
1,096
|
|
|||
Changes in
|
|
|
|
|
|
|
||||||
Policyholder liabilities
|
|
288,065
|
|
|
320,743
|
|
|
282,159
|
|
|||
Deferred policy acquisition costs
|
|
(71,497
|
)
|
|
(81,484
|
)
|
|
1,152
|
|
|||
Reinsurance recoverables
|
|
(8,886
|
)
|
|
(16,880
|
)
|
|
12,172
|
|
|||
Premiums due and other receivables
|
|
(31,360
|
)
|
|
(19,445
|
)
|
|
(11,691
|
)
|
|||
Prepaid reinsurance premiums
|
|
10,003
|
|
|
(599
|
)
|
|
14,881
|
|
|||
Accrued investment income
|
|
(960
|
)
|
|
(7,347
|
)
|
|
(2,849
|
)
|
|||
Current tax receivable/payable
|
|
35,315
|
|
|
17,252
|
|
|
(57,332
|
)
|
|||
Liability for retirement benefits
|
|
(69,762
|
)
|
|
(14,127
|
)
|
|
(53,979
|
)
|
|||
Fair value of option securities
|
|
54,951
|
|
|
(90,357
|
)
|
|
(28,401
|
)
|
|||
Fair value of equity securities
|
|
107,188
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
24,630
|
|
|
4,958
|
|
|
20,331
|
|
|||
Net cash provided by operating activities
|
|
495,510
|
|
|
495,925
|
|
|
401,577
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Proceeds from sale/maturity/prepayment of
|
|
|
|
|
|
|
||||||
Held-to-maturity securities
|
|
629,359
|
|
|
893,977
|
|
|
491,478
|
|
|||
Available-for-sale securities
|
|
451,292
|
|
|
489,902
|
|
|
348,317
|
|
|||
Equity securities
|
|
214,737
|
|
|
137,780
|
|
|
111,194
|
|
|||
Investment real estate
|
|
11,577
|
|
|
67,227
|
|
|
12,833
|
|
|||
Mortgage loans
|
|
812,239
|
|
|
811,049
|
|
|
587,355
|
|
|||
Policy loans
|
|
52,606
|
|
|
42,580
|
|
|
59,920
|
|
|||
Other invested assets
|
|
118,846
|
|
|
80,901
|
|
|
30,743
|
|
|||
Disposals of property and equipment
|
|
—
|
|
|
554
|
|
|
16,240
|
|
|||
Distributions from unconsolidated affiliates
|
|
58,287
|
|
|
102,000
|
|
|
55,311
|
|
|||
Payment for the purchase/origination of
|
|
|
|
|
|
|
||||||
Held-to-maturity securities
|
|
(1,349,008
|
)
|
|
(1,215,311
|
)
|
|
(156,453
|
)
|
|||
Available-for-sale securities
|
|
(680,477
|
)
|
|
(737,651
|
)
|
|
(656,974
|
)
|
|||
Equity securities
|
|
(79,514
|
)
|
|
(108,054
|
)
|
|
(26,154
|
)
|
|||
Investment real estate
|
|
(71,732
|
)
|
|
(33,844
|
)
|
|
(45,631
|
)
|
|||
Mortgage loans
|
|
(1,173,189
|
)
|
|
(1,194,672
|
)
|
|
(1,428,471
|
)
|
|||
Policy loans
|
|
(26,147
|
)
|
|
(23,325
|
)
|
|
(25,480
|
)
|
|||
Other invested assets
|
|
(75,233
|
)
|
|
(47,134
|
)
|
|
(67,571
|
)
|
|||
Additions to property and equipment
|
|
(17,670
|
)
|
|
(24,395
|
)
|
|
(47,301
|
)
|
|||
Contributions to unconsolidated affiliates
|
|
(151,261
|
)
|
|
(27,869
|
)
|
|
(135,208
|
)
|
|||
Change in short-term investments
|
|
452,005
|
|
|
(466,539
|
)
|
|
268,386
|
|
|||
Change in collateral held for derivatives
|
|
(68,565
|
)
|
|
89,981
|
|
|
24,349
|
|
|||
Other, net
|
|
7,087
|
|
|
18,030
|
|
|
27,869
|
|
|||
Net cash used in investing activities
|
|
(884,761
|
)
|
|
(1,144,813
|
)
|
|
(555,248
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Policyholders’ account deposits
|
|
1,717,153
|
|
|
2,095,734
|
|
|
1,528,107
|
|
|||
Policyholders’ account withdrawals
|
|
(1,345,498
|
)
|
|
(1,271,128
|
)
|
|
(1,313,394
|
)
|
|||
Change in notes payable
|
|
505
|
|
|
1,377
|
|
|
7,643
|
|
|||
Dividends to stockholders
|
|
(88,228
|
)
|
|
(88,335
|
)
|
|
(87,741
|
)
|
|||
Payments to noncontrolling interest
|
|
(2,354
|
)
|
|
(2,261
|
)
|
|
(2,536
|
)
|
|||
Net cash provided by financing activities
|
|
281,578
|
|
|
735,387
|
|
|
132,079
|
|
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(107,673
|
)
|
|
86,499
|
|
|
(21,592
|
)
|
|||
Beginning of the period
|
|
375,837
|
|
|
289,338
|
|
|
310,930
|
|
|||
End of the period
|
|
$
|
268,164
|
|
|
$
|
375,837
|
|
|
$
|
289,338
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair Value
|
||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. states and political subdivisions
|
|
$
|
245,360
|
|
|
$
|
5,840
|
|
|
$
|
(301
|
)
|
|
$
|
250,899
|
|
Foreign governments
|
|
3,961
|
|
|
469
|
|
|
—
|
|
|
4,430
|
|
||||
Corporate debt securities
|
|
7,640,891
|
|
|
58,772
|
|
|
(150,834
|
)
|
|
7,548,829
|
|
||||
Residential mortgage-backed securities
|
|
315,306
|
|
|
7,237
|
|
|
(2,633
|
)
|
|
319,910
|
|
||||
Collateralized debt securities
|
|
5,214
|
|
|
71
|
|
|
—
|
|
|
5,285
|
|
||||
Other debt securities
|
|
717
|
|
|
14
|
|
|
—
|
|
|
731
|
|
||||
Total bonds held-to-maturity
|
|
8,211,449
|
|
|
72,403
|
|
|
(153,768
|
)
|
|
8,130,084
|
|
||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
|
28,304
|
|
|
338
|
|
|
(243
|
)
|
|
28,399
|
|
||||
U.S. states and political subdivisions
|
|
848,228
|
|
|
16,827
|
|
|
(3,025
|
)
|
|
862,030
|
|
||||
Foreign governments
|
|
5,000
|
|
|
1,210
|
|
|
—
|
|
|
6,210
|
|
||||
Corporate debt securities
|
|
5,345,579
|
|
|
41,812
|
|
|
(103,573
|
)
|
|
5,283,818
|
|
||||
Residential mortgage-backed securities
|
|
31,735
|
|
|
424
|
|
|
(497
|
)
|
|
31,662
|
|
||||
Collateralized debt securities
|
|
2,775
|
|
|
675
|
|
|
(6
|
)
|
|
3,444
|
|
||||
Total bonds available-for-sale
|
|
6,261,621
|
|
|
61,286
|
|
|
(107,344
|
)
|
|
6,215,563
|
|
||||
Total investments in securities
|
|
$
|
14,473,070
|
|
|
$
|
133,689
|
|
|
$
|
(261,112
|
)
|
|
$
|
14,345,647
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
(Losses)
|
|
Fair Value
|
||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. states and political subdivisions
|
|
$
|
266,966
|
|
|
$
|
12,466
|
|
|
$
|
(37
|
)
|
|
$
|
279,395
|
|
Foreign governments
|
|
4,011
|
|
|
582
|
|
|
—
|
|
|
4,593
|
|
||||
Corporate debt securities
|
|
7,032,464
|
|
|
217,883
|
|
|
(18,020
|
)
|
|
7,232,327
|
|
||||
Residential mortgage-backed securities
|
|
246,803
|
|
|
9,702
|
|
|
(1,262
|
)
|
|
255,243
|
|
||||
Collateralized debt securities
|
|
923
|
|
|
31
|
|
|
—
|
|
|
954
|
|
||||
Other debt securities
|
|
1,792
|
|
|
49
|
|
|
—
|
|
|
1,841
|
|
||||
Total bonds held-to-maturity
|
|
7,552,959
|
|
|
240,713
|
|
|
(19,319
|
)
|
|
7,774,353
|
|
||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
|
27,569
|
|
|
475
|
|
|
(146
|
)
|
|
27,898
|
|
||||
U.S. states and political subdivisions
|
|
866,250
|
|
|
31,621
|
|
|
(824
|
)
|
|
897,047
|
|
||||
Foreign governments
|
|
5,000
|
|
|
1,460
|
|
|
—
|
|
|
6,460
|
|
||||
Corporate debt securities
|
|
5,038,908
|
|
|
170,112
|
|
|
(16,093
|
)
|
|
5,192,927
|
|
||||
Residential mortgage-backed securities
|
|
15,009
|
|
|
37
|
|
|
(329
|
)
|
|
14,717
|
|
||||
Collateralized debt securities
|
|
3,171
|
|
|
651
|
|
|
(4
|
)
|
|
3,818
|
|
||||
Other debt securities
|
|
1,994
|
|
|
447
|
|
|
—
|
|
|
2,441
|
|
||||
Total bonds available-for-sale
|
|
5,957,901
|
|
|
204,803
|
|
|
(17,396
|
)
|
|
6,145,308
|
|
||||
Equity securities*
|
|
|
|
|
|
|
|
|
||||||||
Common stock
|
|
738,453
|
|
|
1,029,340
|
|
|
(7,166
|
)
|
|
1,760,627
|
|
||||
Preferred stock
|
|
19,130
|
|
|
4,469
|
|
|
—
|
|
|
23,599
|
|
||||
Total equity securities
|
|
757,583
|
|
|
1,033,809
|
|
|
(7,166
|
)
|
|
1,784,226
|
|
||||
Total investments in securities
|
|
$
|
14,268,443
|
|
|
$
|
1,479,325
|
|
|
$
|
(43,881
|
)
|
|
$
|
15,703,887
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Bonds Held-to-Maturity
|
|
Bonds Available-for-Sale
|
||||||||||||
|
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Due in one year or less
|
|
$
|
383,192
|
|
|
$
|
386,893
|
|
|
$
|
76,516
|
|
|
$
|
77,149
|
|
Due after one year through five years
|
|
4,214,944
|
|
|
4,228,048
|
|
|
2,841,372
|
|
|
2,852,085
|
|
||||
Due after five years through ten years
|
|
2,968,600
|
|
|
2,888,783
|
|
|
2,846,375
|
|
|
2,791,623
|
|
||||
Due after ten years
|
|
644,713
|
|
|
626,360
|
|
|
497,358
|
|
|
494,706
|
|
||||
Total
|
|
$
|
8,211,449
|
|
|
$
|
8,130,084
|
|
|
$
|
6,261,621
|
|
|
$
|
6,215,563
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Proceeds from sales of fixed maturity available-for-sale securities
|
|
$
|
85,590
|
|
|
$
|
161,223
|
|
|
$
|
138,665
|
|
Gross realized gains
|
|
376
|
|
|
63,075
|
|
|
34,135
|
|
|||
Gross realized losses
|
|
(2,298
|
)
|
|
(6,406
|
)
|
|
(7,775
|
)
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Bonds available-for-sale
|
|
$
|
(233,465
|
)
|
|
$
|
53,115
|
|
|
$
|
78,207
|
|
Adjustments for
|
|
|
|
|
|
|
||||||
Deferred policy acquisition costs
|
|
51,920
|
|
|
(2,083
|
)
|
|
(29,074
|
)
|
|||
Participating policyholders’ interest
|
|
11,157
|
|
|
(7,086
|
)
|
|
(10,282
|
)
|
|||
Deferred federal income tax benefit (expense)
|
|
34,127
|
|
|
(15,516
|
)
|
|
(13,456
|
)
|
|||
Change in net unrealized gains (losses) on debt securities, net of tax
|
|
$
|
(136,261
|
)
|
|
$
|
28,430
|
|
|
$
|
25,395
|
|
|
Year ended December 31, 2018
|
||
Unrealized losses on equity securities
|
$
|
(108,693
|
)
|
Less: Net gain on equity securities sold
|
1,505
|
|
|
Net losses on equity securities
|
$
|
(107,188
|
)
|
|
|
December 31, 2018
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 Months or more
|
|
Total
|
||||||||||||||||||
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. states and political subdivisions
|
|
$
|
(301
|
)
|
|
$
|
22,605
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(301
|
)
|
|
$
|
22,605
|
|
Corporate debt securities
|
|
(90,931
|
)
|
|
2,969,461
|
|
|
(59,903
|
)
|
|
1,063,679
|
|
|
(150,834
|
)
|
|
4,033,140
|
|
||||||
Residential mortgage-backed securities
|
|
(703
|
)
|
|
58,119
|
|
|
(1,930
|
)
|
|
57,661
|
|
|
(2,633
|
)
|
|
115,780
|
|
||||||
Total bonds held-to-maturity
|
|
(91,935
|
)
|
|
3,050,185
|
|
|
(61,833
|
)
|
|
1,121,340
|
|
|
(153,768
|
)
|
|
4,171,525
|
|
||||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury and government
|
|
(29
|
)
|
|
9,741
|
|
|
(214
|
)
|
|
13,478
|
|
|
(243
|
)
|
|
23,219
|
|
||||||
U.S. states and political subdivisions
|
|
(1,274
|
)
|
|
119,987
|
|
|
(1,751
|
)
|
|
61,992
|
|
|
(3,025
|
)
|
|
181,979
|
|
||||||
Corporate debt securities
|
|
(65,492
|
)
|
|
2,383,548
|
|
|
(38,081
|
)
|
|
572,600
|
|
|
(103,573
|
)
|
|
2,956,148
|
|
||||||
Residential mortgage-backed securities
|
|
(54
|
)
|
|
6,034
|
|
|
(443
|
)
|
|
13,515
|
|
|
(497
|
)
|
|
19,549
|
|
||||||
Collateralized debt securities
|
|
(2
|
)
|
|
158
|
|
|
(4
|
)
|
|
100
|
|
|
(6
|
)
|
|
258
|
|
||||||
Total bonds available-for-sale
|
|
(66,851
|
)
|
|
2,519,468
|
|
|
(40,493
|
)
|
|
661,685
|
|
|
(107,344
|
)
|
|
3,181,153
|
|
||||||
Total
|
|
$
|
(158,786
|
)
|
|
$
|
5,569,653
|
|
|
$
|
(102,326
|
)
|
|
$
|
1,783,025
|
|
|
$
|
(261,112
|
)
|
|
$
|
7,352,678
|
|
|
|
December 31, 2017
|
||||||||||||||||||||||
|
|
Less than 12 months
|
|
12 Months or more
|
|
Total
|
||||||||||||||||||
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
|
Unrealized
(Losses)
|
|
Fair
Value
|
||||||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. states and political subdivisions
|
|
$
|
(37
|
)
|
|
$
|
1,937
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(37
|
)
|
|
$
|
1,937
|
|
Corporate debt securities
|
|
(8,444
|
)
|
|
951,425
|
|
|
(9,576
|
)
|
|
192,737
|
|
|
(18,020
|
)
|
|
1,144,162
|
|
||||||
Residential mortgage-backed securities
|
|
(325
|
)
|
|
49,283
|
|
|
(937
|
)
|
|
18,888
|
|
|
(1,262
|
)
|
|
68,171
|
|
||||||
Total bonds held-to-maturity
|
|
(8,806
|
)
|
|
1,002,645
|
|
|
(10,513
|
)
|
|
211,625
|
|
|
(19,319
|
)
|
|
1,214,270
|
|
||||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury and government
|
|
(141
|
)
|
|
20,352
|
|
|
(5
|
)
|
|
3,875
|
|
|
(146
|
)
|
|
24,227
|
|
||||||
U.S. states and political subdivisions
|
|
(160
|
)
|
|
27,669
|
|
|
(664
|
)
|
|
28,010
|
|
|
(824
|
)
|
|
55,679
|
|
||||||
Corporate debt securities
|
|
(6,657
|
)
|
|
559,710
|
|
|
(9,436
|
)
|
|
159,532
|
|
|
(16,093
|
)
|
|
719,242
|
|
||||||
Residential mortgage-backed securities
|
|
(193
|
)
|
|
12,419
|
|
|
(136
|
)
|
|
1,428
|
|
|
(329
|
)
|
|
13,847
|
|
||||||
Collateralized debt securities
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
123
|
|
|
(4
|
)
|
|
123
|
|
||||||
Total bonds available-for-sale
|
|
(7,151
|
)
|
|
620,150
|
|
|
(10,245
|
)
|
|
192,968
|
|
|
(17,396
|
)
|
|
813,118
|
|
||||||
Equity securities*
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Common stock
|
|
(7,166
|
)
|
|
60,391
|
|
|
—
|
|
|
—
|
|
|
(7,166
|
)
|
|
60,391
|
|
||||||
Total equity securities
|
|
(7,166
|
)
|
|
60,391
|
|
|
—
|
|
|
—
|
|
|
(7,166
|
)
|
|
60,391
|
|
||||||
Total
|
|
$
|
(23,123
|
)
|
|
$
|
1,683,186
|
|
|
$
|
(20,758
|
)
|
|
$
|
404,593
|
|
|
$
|
(43,881
|
)
|
|
$
|
2,087,779
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
% of Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
% of Fair
Value
|
||||||||||
AAA
|
|
$
|
690,009
|
|
|
$
|
702,531
|
|
|
4.9
|
%
|
|
$
|
638,039
|
|
|
$
|
664,396
|
|
|
4.8
|
%
|
AA
|
|
1,326,947
|
|
|
1,336,380
|
|
|
9.3
|
|
|
1,220,544
|
|
|
1,264,282
|
|
|
9.0
|
|
||||
A
|
|
5,350,316
|
|
|
5,314,589
|
|
|
37.0
|
|
|
4,856,802
|
|
|
4,997,574
|
|
|
35.9
|
|
||||
BBB
|
|
6,584,478
|
|
|
6,507,212
|
|
|
45.4
|
|
|
6,273,220
|
|
|
6,480,719
|
|
|
46.6
|
|
||||
BB and below
|
|
521,320
|
|
|
484,935
|
|
|
3.4
|
|
|
522,255
|
|
|
512,690
|
|
|
3.7
|
|
||||
Total
|
|
$
|
14,473,070
|
|
|
$
|
14,345,647
|
|
|
100.0
|
%
|
|
$
|
13,510,860
|
|
|
$
|
13,919,661
|
|
|
100.0
|
%
|
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
||
Consumer goods
|
|
21.1
|
%
|
|
20.2
|
%
|
Energy and utilities
|
|
8.2
|
|
|
8.6
|
|
Finance
|
|
18.1
|
|
|
21.9
|
|
Healthcare
|
|
13.5
|
|
|
11.8
|
|
Industrials
|
|
9.0
|
|
|
9.5
|
|
Information technology
|
|
22.6
|
|
|
20.0
|
|
Other
|
|
7.5
|
|
|
8.0
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
||
East North Central
|
|
13.9
|
%
|
|
15.4
|
%
|
East South Central
|
|
2.8
|
|
|
3.1
|
|
Mountain
|
|
20.0
|
|
|
14.0
|
|
Pacific
|
|
16.2
|
|
|
16.5
|
|
South Atlantic
|
|
12.1
|
|
|
14.1
|
|
West South Central
|
|
27.2
|
|
|
29.8
|
|
Other
|
|
7.8
|
|
|
7.1
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
30-59 Days
|
|
60-89 Days
|
|
More Than
|
|
|
|
|
|
Total
|
|||||||||||||||
December 31, 2018
|
|
Past Due
|
|
Past Due
|
|
90 Days
|
|
Total
|
|
Current
|
|
Amount
|
|
Percent
|
|||||||||||||
Industrial
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
761,294
|
|
|
$
|
761,294
|
|
|
14.8
|
%
|
Office
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,747,926
|
|
|
1,747,926
|
|
|
34.0
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
896,429
|
|
|
896,429
|
|
|
17.4
|
|
||||||
Other
|
|
—
|
|
|
4,000
|
|
|
18,888
|
|
|
22,888
|
|
|
1,717,503
|
|
|
1,740,391
|
|
|
33.8
|
|
||||||
Total
|
|
$
|
—
|
|
|
$
|
4,000
|
|
|
$
|
18,888
|
|
|
$
|
22,888
|
|
|
$
|
5,123,152
|
|
|
$
|
5,146,040
|
|
|
100.0
|
%
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
(21,333
|
)
|
|
|
||||||||||||
Total, net of allowance
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,124,707
|
|
|
|
|||||||||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Industrial
|
|
$
|
4,985
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,985
|
|
|
$
|
781,385
|
|
|
$
|
786,370
|
|
|
16.5
|
%
|
Office
|
|
—
|
|
|
10,713
|
|
|
8,881
|
|
|
19,594
|
|
|
1,764,151
|
|
|
1,783,745
|
|
|
37.4
|
|
||||||
Retail
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
750,979
|
|
|
750,979
|
|
|
15.7
|
|
||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,447,771
|
|
|
1,447,771
|
|
|
30.4
|
|
||||||
Total
|
|
$
|
4,985
|
|
|
$
|
10,713
|
|
|
$
|
8,881
|
|
|
$
|
24,579
|
|
|
$
|
4,744,286
|
|
|
$
|
4,768,865
|
|
|
100.0
|
%
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
(18,866
|
)
|
|
|
||||||||||||
Total, net of allowance
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,749,999
|
|
|
|
|
Collectively Evaluated for Impairment
|
|
Individually Impaired
|
|
Total
|
|||||||||||||||||||||||||||
|
Number
of Loans
|
|
Recorded
Investment
|
|
Valuation
Allowance
|
|
Number
of Loans
|
|
Recorded
Investment
|
|
Valuation
Allowance
|
|
Number
of Loans
|
|
Recorded
Investment
|
|
Valuation
Allowance
|
|||||||||||||||
Balance at
December 31, 2016 |
430
|
|
|
$
|
4,358,596
|
|
|
$
|
11,488
|
|
|
2
|
|
|
$
|
1,940
|
|
|
$
|
1,002
|
|
|
432
|
|
|
$
|
4,360,536
|
|
|
$
|
12,490
|
|
Change in allowance
|
—
|
|
|
—
|
|
|
4,553
|
|
|
—
|
|
|
—
|
|
|
1,823
|
|
|
—
|
|
|
—
|
|
|
6,376
|
|
||||||
Net change in recorded investment
|
21
|
|
|
403,719
|
|
|
—
|
|
|
1
|
|
|
4,610
|
|
|
—
|
|
|
22
|
|
|
408,329
|
|
|
—
|
|
||||||
Balance at
December 31, 2017 |
451
|
|
|
4,762,315
|
|
|
16,041
|
|
|
3
|
|
|
6,550
|
|
|
2,825
|
|
|
454
|
|
|
4,768,865
|
|
|
18,866
|
|
||||||
Change in allowance
|
—
|
|
|
—
|
|
|
2,566
|
|
|
—
|
|
|
—
|
|
|
(99
|
)
|
|
—
|
|
|
—
|
|
|
2,467
|
|
||||||
Net change in recorded investment
|
(2
|
)
|
|
366,102
|
|
|
—
|
|
|
(1
|
)
|
|
11,073
|
|
|
—
|
|
|
(3
|
)
|
|
377,175
|
|
|
—
|
|
||||||
Balance at
December 31, 2018 |
449
|
|
|
$
|
5,128,417
|
|
|
$
|
18,607
|
|
|
2
|
|
|
$
|
17,623
|
|
|
$
|
2,726
|
|
|
451
|
|
|
$
|
5,146,040
|
|
|
$
|
21,333
|
|
|
|
Years ended December 31,
|
||||||||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||||||||
|
|
Number of loans
|
|
Recorded
investment
pre-modification
|
|
Recorded
investment
post modification
|
|
Number of loans
|
|
Recorded
investment
pre-modification
|
|
Recorded
investment
post modification
|
||||||||||
Office
|
|
1
|
|
|
$
|
5,164
|
|
|
$
|
5,164
|
|
|
2
|
|
|
$
|
34,207
|
|
|
$
|
34,207
|
|
Retail
|
|
1
|
|
|
42,448
|
|
|
42,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Other (hotel/motel)
|
|
1
|
|
|
8,203
|
|
|
8,203
|
|
|
5
|
|
|
24,801
|
|
|
24,801
|
|
||||
Total
|
|
3
|
|
|
$
|
55,815
|
|
|
$
|
55,815
|
|
|
7
|
|
|
$
|
59,008
|
|
|
$
|
59,008
|
|
|
|
December 31,
|
||||
|
|
2018
|
|
2017
|
||
East North Central
|
|
5.6
|
%
|
|
6.1
|
%
|
East South Central
|
|
5.4
|
|
|
3.6
|
|
Mountain
|
|
11.9
|
|
|
13.2
|
|
Pacific
|
|
7.3
|
|
|
8.5
|
|
South Atlantic
|
|
13.8
|
|
|
14.0
|
|
West South Central
|
|
53.8
|
|
|
52.4
|
|
Other
|
|
2.2
|
|
|
2.2
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Investment real estate
|
|
$
|
141,843
|
|
|
$
|
148,456
|
|
Short-term investments
|
|
500
|
|
|
501
|
|
||
Cash and cash equivalents
|
|
10,392
|
|
|
6,320
|
|
||
Other receivables
|
|
3,939
|
|
|
4,461
|
|
||
Other assets
|
|
13,231
|
|
|
15,920
|
|
||
Total assets of consolidated VIEs
|
|
$
|
169,905
|
|
|
$
|
175,658
|
|
Notes payable
|
|
$
|
137,963
|
|
|
$
|
137,458
|
|
Other liabilities
|
|
7,145
|
|
|
5,616
|
|
||
Total liabilities of consolidated VIEs
|
|
$
|
145,108
|
|
|
$
|
143,074
|
|
|
|
|
|
|
December 31,
|
||||||
Interest rate
|
|
|
Maturity
|
|
2018
|
|
2017
|
||||
LIBOR
|
|
|
2020
|
|
$
|
10,834
|
|
|
$
|
9,702
|
|
90 day LIBOR + 2.5%
|
|
|
2021
|
|
42,399
|
|
|
40,124
|
|
||
4% fixed
|
|
|
2022
|
|
84,730
|
|
|
87,632
|
|
||
Total
|
|
|
|
|
$
|
137,963
|
|
|
$
|
137,458
|
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss
|
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss
|
||||||||
Investment in unconsolidated affiliates
|
|
$
|
330,730
|
|
|
$
|
330,730
|
|
|
$
|
314,808
|
|
|
$
|
314,808
|
|
Mortgage loans
|
|
633,533
|
|
|
633,533
|
|
|
493,014
|
|
|
493,014
|
|
||||
Accrued investment income
|
|
2,191
|
|
|
2,191
|
|
|
1,817
|
|
|
1,817
|
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Real estate
|
|
$
|
386,981
|
|
|
$
|
359,130
|
|
Equity and fixed income
|
|
156,121
|
|
|
95,819
|
|
||
Other
|
|
28,795
|
|
|
29,258
|
|
||
Total investments in unconsolidated affiliates
|
|
$
|
571,897
|
|
|
$
|
484,207
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Income from operations
|
|
$
|
7,595
|
|
|
$
|
16,663
|
|
|
$
|
19,005
|
|
Net gain on sales
|
|
13,686
|
|
|
70,011
|
|
|
38,195
|
|
|||
Equity in earnings of unconsolidated affiliates
|
|
$
|
21,281
|
|
|
$
|
86,674
|
|
|
$
|
57,200
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||
Derivatives Not Designated
as Hedging Instruments
|
|
Location in the Consolidated
Statements of Financial Position
|
|
2018
|
|
2017
|
||||||||||||||||||
Number of
Instruments
|
|
Notional
Amounts
|
|
Estimated
Fair Value
|
|
Number of
Instruments
|
|
Notional
Amounts
|
|
Estimated
Fair Value
|
||||||||||||||
Equity-indexed options
|
|
Other invested assets
|
|
493
|
|
|
$
|
2,391,000
|
|
|
$
|
148,006
|
|
|
468
|
|
|
$
|
1,885,600
|
|
|
$
|
220,190
|
|
Equity-indexed embedded
derivative
|
|
Policyholders’ account
balances
|
|
90,440
|
|
|
2,327,769
|
|
|
596,075
|
|
|
76,621
|
|
|
1,819,523
|
|
|
512,526
|
|
|
|
|
|
Gains (Losses) Recognized in Income on Derivatives
|
||||||||||
Derivatives Not Designated
as Hedging Instruments
|
|
Location in the Consolidated
Statements of Operations
|
|
Years ended December 31,
|
||||||||||
2018
|
|
2017
|
|
2016
|
||||||||||
Equity-indexed options
|
|
Net investment income
|
|
$
|
(54,951
|
)
|
|
$
|
91,055
|
|
|
$
|
28,869
|
|
Equity-indexed embedded
derivative
|
|
Interest credited to policyholders’
account balances
|
|
17,862
|
|
|
(98,351
|
)
|
|
(25,239
|
)
|
|
|
|
|
December 31, 2018
|
||||||||||||||||||||||||||
Counterparty
|
|
Moody/S&P
Rating
|
|
Options Fair
Value
|
|
Collateral Held in Cash
|
|
Collateral Held in Invested Assets
|
|
Total Collateral
Held |
|
Collateral
Amounts used to Offset Exposure
|
|
Excess
Collateral
|
|
Exposure Net
of Collateral
|
||||||||||||||
Barclays
|
|
Baa3/BBB
|
|
$
|
38,905
|
|
|
$
|
11,063
|
|
|
$
|
28,041
|
|
|
$
|
39,104
|
|
|
$
|
38,905
|
|
|
$
|
199
|
|
|
$
|
—
|
|
Goldman-Sachs
|
|
A3/BBB+
|
|
615
|
|
|
670
|
|
|
—
|
|
|
670
|
|
|
615
|
|
|
55
|
|
|
—
|
|
|||||||
ING
|
|
Baa1/A-
|
|
24,183
|
|
|
7,960
|
|
|
16,023
|
|
|
23,983
|
|
|
23,983
|
|
|
—
|
|
|
200
|
|
|||||||
Morgan Stanley
|
|
A3/BBB+
|
|
11,649
|
|
|
2,046
|
|
|
9,013
|
|
|
11,059
|
|
|
11,059
|
|
|
—
|
|
|
590
|
|
|||||||
NATIXIS*
|
|
A1/A+
|
|
26,786
|
|
|
27,610
|
|
|
—
|
|
|
27,610
|
|
|
26,786
|
|
|
824
|
|
|
—
|
|
|||||||
SunTrust
|
|
Baa1/BBB+
|
|
23,488
|
|
|
6,520
|
|
|
17,025
|
|
|
23,545
|
|
|
23,464
|
|
|
81
|
|
|
24
|
|
|||||||
Wells Fargo
|
|
A2/A-
|
|
22,380
|
|
|
7,030
|
|
|
15,022
|
|
|
22,052
|
|
|
22,052
|
|
|
—
|
|
|
328
|
|
|||||||
Total
|
|
|
|
$
|
148,006
|
|
|
$
|
62,899
|
|
|
$
|
85,124
|
|
|
$
|
148,023
|
|
|
$
|
146,864
|
|
|
$
|
1,159
|
|
|
$
|
1,142
|
|
|
|
|
|
December 31, 2017
|
||||||||||||||||||
Counterparty
|
|
Moody/S&P
Rating
|
|
Options Fair
Value
|
|
Collateral
Held
|
|
Collateral
Amounts used to
Offset Exposure
|
|
Excess
Collateral
|
|
Exposure Net
of Collateral
|
||||||||||
Barclays
|
|
Baa2/BBB
|
|
$
|
55,215
|
|
|
$
|
56,883
|
|
|
$
|
55,215
|
|
|
$
|
1,668
|
|
|
$
|
—
|
|
Goldman-Sachs
|
|
A3/BBB+
|
|
956
|
|
|
780
|
|
|
780
|
|
|
—
|
|
|
176
|
|
|||||
ING
|
|
Baa1/A-
|
|
26,650
|
|
|
27,330
|
|
|
26,650
|
|
|
680
|
|
|
—
|
|
|||||
JP Morgan
|
|
A3/A-
|
|
189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
189
|
|
|||||
Morgan Stanley
|
|
A3/BBB+
|
|
17,490
|
|
|
18,776
|
|
|
17,490
|
|
|
1,286
|
|
|
—
|
|
|||||
NATIXIS*
|
|
A2/A
|
|
37,550
|
|
|
33,860
|
|
|
33,860
|
|
|
—
|
|
|
3,690
|
|
|||||
SunTrust
|
|
Baa1/BBB+
|
|
37,266
|
|
|
36,560
|
|
|
36,560
|
|
|
—
|
|
|
706
|
|
|||||
Wells Fargo
|
|
A2/A
|
|
44,874
|
|
|
47,230
|
|
|
44,874
|
|
|
2,356
|
|
|
—
|
|
|||||
Total
|
|
|
|
$
|
220,190
|
|
|
$
|
221,419
|
|
|
$
|
215,429
|
|
|
$
|
5,990
|
|
|
$
|
4,761
|
|
*
|
Includes collateral restrictions
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Bonds
|
|
$
|
566,513
|
|
|
$
|
541,772
|
|
|
$
|
551,849
|
|
Dividends on equity securities
|
|
39,193
|
|
|
38,730
|
|
|
38,680
|
|
|||
Mortgage loans
|
|
258,102
|
|
|
245,116
|
|
|
211,972
|
|
|||
Real estate
|
|
13,533
|
|
|
12,672
|
|
|
6,743
|
|
|||
Options
|
|
(54,951
|
)
|
|
91,055
|
|
|
28,869
|
|
|||
Other invested assets
|
|
35,977
|
|
|
36,732
|
|
|
22,122
|
|
|||
Total
|
|
$
|
858,367
|
|
|
$
|
966,077
|
|
|
$
|
860,235
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Bonds
|
|
$
|
10,903
|
|
|
$
|
27,061
|
|
|
$
|
16,705
|
|
Equity securities*
|
|
—
|
|
|
56,528
|
|
|
33,348
|
|
|||
Mortgage loans
|
|
(4,798
|
)
|
|
(7,700
|
)
|
|
405
|
|
|||
Real estate
|
|
12,076
|
|
|
28,853
|
|
|
2,188
|
|
|||
Other invested assets
|
|
(7
|
)
|
|
(147
|
)
|
|
(6,039
|
)
|
|||
Total
|
|
$
|
18,174
|
|
|
$
|
104,595
|
|
|
$
|
46,607
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Bonds
|
|
$
|
(1,243
|
)
|
|
$
|
(6,416
|
)
|
|
$
|
(94
|
)
|
Equity securities*
|
|
—
|
|
|
(6,970
|
)
|
|
(17,573
|
)
|
|||
Total
|
|
$
|
(1,243
|
)
|
|
$
|
(13,386
|
)
|
|
$
|
(17,667
|
)
|
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
||||||||||||
|
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
Financial assets
|
|
|
||||||||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
$
|
8,211,449
|
|
|
$
|
8,130,084
|
|
|
$
|
7,552,959
|
|
|
$
|
7,774,353
|
|
Fixed maturity securities, bonds available-for-sale
|
|
6,215,563
|
|
|
6,215,563
|
|
|
6,145,308
|
|
|
6,145,308
|
|
||||
Equity securities
|
|
1,530,228
|
|
|
1,530,228
|
|
|
1,784,226
|
|
|
1,784,226
|
|
||||
Equity-indexed options
|
|
148,006
|
|
|
148,006
|
|
|
220,190
|
|
|
220,190
|
|
||||
Mortgage loans on real estate, net of allowance
|
|
5,124,707
|
|
|
5,049,468
|
|
|
4,749,999
|
|
|
4,811,006
|
|
||||
Policy loans
|
|
376,254
|
|
|
376,254
|
|
|
377,103
|
|
|
377,103
|
|
||||
Short-term investments
|
|
206,760
|
|
|
206,760
|
|
|
658,765
|
|
|
658,765
|
|
||||
Separate account assets ($905,824 and $965,575 included in fair value hierarchy)
|
|
918,369
|
|
|
918,369
|
|
|
969,764
|
|
|
969,764
|
|
||||
Separately managed accounts
|
|
16,532
|
|
|
16,532
|
|
|
851
|
|
|
851
|
|
||||
Total financial assets
|
|
$
|
22,747,868
|
|
|
$
|
22,591,264
|
|
|
$
|
22,459,165
|
|
|
$
|
22,741,566
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Investment contracts
|
|
$
|
10,003,990
|
|
|
$
|
10,003,990
|
|
|
$
|
8,990,771
|
|
|
$
|
8,990,771
|
|
Embedded derivative liability for equity-indexed contracts
|
|
596,075
|
|
|
596,075
|
|
|
512,526
|
|
|
512,526
|
|
||||
Notes payable
|
|
137,963
|
|
|
137,963
|
|
|
137,458
|
|
|
137,458
|
|
||||
Separate account liabilities ($905,824 and $965,575 included in fair value hierarchy)
|
|
918,369
|
|
|
918,369
|
|
|
969,764
|
|
|
969,764
|
|
||||
Total financial liabilities
|
|
$
|
11,656,397
|
|
|
$
|
11,656,397
|
|
|
$
|
10,610,519
|
|
|
$
|
10,610,519
|
|
Level 1
|
|
Unadjusted quoted prices in active markets for identical assets or liabilities.
|
|
|
|
Level 2
|
|
Quoted prices in markets that are not active or inputs that are observable directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities other than quoted prices in Level 1; quoted prices in markets that are not active; or other inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
|
|
|
|
Level 3
|
|
Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect American National’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. Level 3 assets and liabilities include financial instruments whose values are determined using pricing models and third-party evaluation, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
|
•
|
Lapse rate assumptions are determined by company experience. Lapse rates are generally assumed to be lower during a contract’s surrender charge period and then higher once the surrender charge period has ended. Decreases to the assumed lapse rates generally increase the fair value of the liability as more policyholders persist to collect the crediting interest pertaining to the indexed product. Increases to the lapse rate assumption will have the inverse effect of decreasing the fair value.
|
•
|
Mortality rate assumptions vary by age and by gender based on company and industry experience. Decreases to the assumed mortality rates increase the fair value of the liabilities as more policyholders earn crediting interest. Increases to the assumed mortality rates decrease the fair value as higher decrements reduce the potential for future interest credits.
|
•
|
Equity volatility assumptions begin with current market volatilities and grow to long-term values. Increases to the assumed volatility will increase the fair value of liabilities, as future projections will produce higher increases in the linked index. At
December 31, 2018
and
2017
, the one-year implied volatility used to estimate embedded derivative value was
23.2%
and
13.7%
, respectively
|
|
|
Fair Value
|
|
|
|
Range
|
||||||||
|
|
December 31,
|
|
|
|
December 31,
|
||||||||
|
|
2018
|
|
2017
|
|
Unobservable Input
|
|
2018
|
|
2017
|
||||
Indexed Annuities
|
|
$
|
592.8
|
|
|
$
|
498.3
|
|
|
Lapse Rate
|
|
1-70%
|
|
1-66%
|
|
|
|
|
|
|
Mortality Multiplier
|
|
90-100%
|
|
90-100%
|
||||
|
|
|
|
|
|
Equity Volatility
|
|
19-26%
|
|
7-30%
|
||||
Indexed Life
|
|
3.3
|
|
|
14.2
|
|
|
Equity Volatility
|
|
19-26%
|
|
7-30%
|
|
|
Fair Value Measurement as of December 31, 2018
|
||||||||||||||
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets
|
|
|
||||||||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. states and political subdivisions
|
|
$
|
250,899
|
|
|
$
|
—
|
|
|
$
|
250,899
|
|
|
$
|
—
|
|
Foreign governments
|
|
4,430
|
|
|
—
|
|
|
4,430
|
|
|
—
|
|
||||
Corporate debt securities
|
|
7,548,829
|
|
|
—
|
|
|
7,548,829
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
319,910
|
|
|
—
|
|
|
319,910
|
|
|
—
|
|
||||
Collateralized debt securities
|
|
5,285
|
|
|
—
|
|
|
5,285
|
|
|
—
|
|
||||
Other debt securities
|
|
731
|
|
|
—
|
|
|
731
|
|
|
—
|
|
||||
Total bonds held-to-maturity
|
|
8,130,084
|
|
|
—
|
|
|
8,130,084
|
|
|
—
|
|
||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
|
28,399
|
|
|
—
|
|
|
28,399
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
|
862,030
|
|
|
—
|
|
|
862,030
|
|
|
—
|
|
||||
Foreign governments
|
|
6,210
|
|
|
—
|
|
|
6,210
|
|
|
—
|
|
||||
Corporate debt securities
|
|
5,283,818
|
|
|
—
|
|
|
5,279,585
|
|
|
4,233
|
|
||||
Residential mortgage-backed securities
|
|
31,662
|
|
|
—
|
|
|
31,662
|
|
|
—
|
|
||||
Collateralized debt securities
|
|
3,444
|
|
|
—
|
|
|
3,444
|
|
|
—
|
|
||||
Total bonds available-for-sale
|
|
6,215,563
|
|
|
—
|
|
|
6,211,330
|
|
|
4,233
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
Common stock
|
|
1,509,186
|
|
|
1,509,073
|
|
|
—
|
|
|
113
|
|
||||
Preferred stock
|
|
21,042
|
|
|
21,042
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
|
1,530,228
|
|
|
1,530,115
|
|
|
—
|
|
|
113
|
|
||||
Options
|
|
148,006
|
|
|
—
|
|
|
—
|
|
|
148,006
|
|
||||
Mortgage loans on real estate
|
|
5,049,468
|
|
|
—
|
|
|
5,049,468
|
|
|
—
|
|
||||
Policy loans
|
|
376,254
|
|
|
—
|
|
|
—
|
|
|
376,254
|
|
||||
Short-term investments
|
|
206,760
|
|
|
—
|
|
|
206,760
|
|
|
—
|
|
||||
Separate account assets
|
|
905,824
|
|
|
227,448
|
|
|
678,376
|
|
|
—
|
|
||||
Separately managed accounts
|
|
16,532
|
|
|
—
|
|
|
—
|
|
|
16,532
|
|
||||
Total financial assets
|
|
$
|
22,578,719
|
|
|
$
|
1,757,563
|
|
|
$
|
20,276,018
|
|
|
$
|
545,138
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Investment contracts
|
|
$
|
10,003,990
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,003,990
|
|
Embedded derivative liability for equity-indexed contracts
|
|
596,075
|
|
|
—
|
|
|
—
|
|
|
596,075
|
|
||||
Notes payable
|
|
137,963
|
|
|
—
|
|
|
—
|
|
|
137,963
|
|
||||
Separate account liabilities
|
|
905,824
|
|
|
227,448
|
|
|
678,376
|
|
|
—
|
|
||||
Total financial liabilities
|
|
$
|
11,643,852
|
|
|
$
|
227,448
|
|
|
$
|
678,376
|
|
|
$
|
10,738,028
|
|
|
|
Fair Value Measurement as of December 31, 2017
|
||||||||||||||
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, bonds held-to-maturity
|
|
|
|
|
|
|
|
|
||||||||
U.S. states and political subdivisions
|
|
$
|
279,395
|
|
|
$
|
—
|
|
|
$
|
276,450
|
|
|
$
|
2,945
|
|
Foreign governments
|
|
4,593
|
|
|
—
|
|
|
4,593
|
|
|
—
|
|
||||
Corporate debt securities
|
|
7,232,327
|
|
|
—
|
|
|
7,232,327
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
255,243
|
|
|
—
|
|
|
255,243
|
|
|
—
|
|
||||
Collateralized debt securities
|
|
954
|
|
|
—
|
|
|
954
|
|
|
—
|
|
||||
Other debt securities
|
|
1,841
|
|
|
—
|
|
|
1,841
|
|
|
—
|
|
||||
Total bonds held-to-maturity
|
|
7,774,353
|
|
|
—
|
|
|
7,771,408
|
|
|
2,945
|
|
||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
|
27,898
|
|
|
—
|
|
|
27,898
|
|
|
—
|
|
||||
U.S. states and political subdivisions
|
|
897,047
|
|
|
—
|
|
|
897,047
|
|
|
—
|
|
||||
Foreign governments
|
|
6,460
|
|
|
—
|
|
|
6,460
|
|
|
—
|
|
||||
Corporate debt securities
|
|
5,192,927
|
|
|
—
|
|
|
5,192,927
|
|
|
—
|
|
||||
Residential mortgage-backed securities
|
|
14,717
|
|
|
—
|
|
|
14,717
|
|
|
—
|
|
||||
Collateralized debt securities
|
|
3,818
|
|
|
—
|
|
|
3,818
|
|
|
—
|
|
||||
Other debt securities
|
|
2,441
|
|
|
—
|
|
|
2,441
|
|
|
—
|
|
||||
Total bonds available-for-sale
|
|
6,145,308
|
|
|
—
|
|
|
6,145,308
|
|
|
—
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
|
||||||||
Common stock
|
|
1,760,627
|
|
|
1,760,499
|
|
|
—
|
|
|
128
|
|
||||
Preferred stock
|
|
23,599
|
|
|
23,599
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
|
1,784,226
|
|
|
1,784,098
|
|
|
—
|
|
|
128
|
|
||||
Options
|
|
220,190
|
|
|
—
|
|
|
—
|
|
|
220,190
|
|
||||
Mortgage loans on real estate
|
|
4,811,006
|
|
|
—
|
|
|
4,811,006
|
|
|
—
|
|
||||
Policy loans
|
|
377,103
|
|
|
—
|
|
|
—
|
|
|
377,103
|
|
||||
Short-term investments
|
|
658,765
|
|
|
—
|
|
|
658,765
|
|
|
—
|
|
||||
Separate account assets
|
|
965,575
|
|
|
257,209
|
|
|
708,366
|
|
|
—
|
|
||||
Separately managed accounts
|
|
851
|
|
|
—
|
|
|
—
|
|
|
851
|
|
||||
Total financial assets
|
|
$
|
22,737,377
|
|
|
$
|
2,041,307
|
|
|
$
|
20,094,853
|
|
|
$
|
601,217
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
||||||||
Investment contracts
|
|
$
|
8,990,771
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,990,771
|
|
Embedded derivative liability for equity-indexed contracts
|
|
512,526
|
|
|
—
|
|
|
—
|
|
|
512,526
|
|
||||
Notes payable
|
|
137,458
|
|
|
—
|
|
|
—
|
|
|
137,458
|
|
||||
Separate account liabilities
|
|
965,575
|
|
|
257,209
|
|
|
708,366
|
|
|
—
|
|
||||
Total financial liabilities
|
|
$
|
10,606,330
|
|
|
$
|
257,209
|
|
|
$
|
708,366
|
|
|
$
|
9,640,755
|
|
|
|
Level 3
|
||||||||||
|
|
Assets
|
|
Liability
|
||||||||
|
|
Investment
Securities
|
|
Equity-Indexed
Options
|
|
Embedded
Derivative
|
||||||
Balance at December 31, 2015
|
|
$
|
20,130
|
|
|
$
|
123,007
|
|
|
$
|
242,412
|
|
Total realized and unrealized investment gains included in other comprehensive income
|
|
481
|
|
|
—
|
|
|
—
|
|
|||
Net fair value change included in realized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net gain for derivatives included in net investment income
|
|
—
|
|
|
28,400
|
|
|
—
|
|
|||
Net change included in interest credited
|
|
—
|
|
|
—
|
|
|
25,239
|
|
|||
Purchases, sales and settlements or maturities
|
|
|
|
|
|
|
||||||
Purchases
|
|
—
|
|
|
27,961
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements or maturities
|
|
(425
|
)
|
|
(22,889
|
)
|
|
—
|
|
|||
Premiums less benefits
|
|
—
|
|
|
—
|
|
|
46,679
|
|
|||
Gross transfers into Level 3
|
|
908
|
|
|
—
|
|
|
—
|
|
|||
Gross transfers out of Level 3
|
|
(6,830
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at December 31, 2016
|
|
$
|
14,264
|
|
|
$
|
156,479
|
|
|
$
|
314,330
|
|
Total realized and unrealized investment gains included in other comprehensive income
|
|
(4,465
|
)
|
|
—
|
|
|
—
|
|
|||
Net fair value change included in realized gains (losses)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net gain for derivatives included in net investment income
|
|
—
|
|
|
90,433
|
|
|
—
|
|
|||
Net change included in interest credited
|
|
—
|
|
|
—
|
|
|
98,351
|
|
|||
Purchases, sales and settlements or maturities
|
|
|
|
|
|
|
||||||
Purchases
|
|
—
|
|
|
47,134
|
|
|
—
|
|
|||
Sales
|
|
(12,436
|
)
|
|
(12,837
|
)
|
|
—
|
|
|||
Settlements or maturities
|
|
(7,020
|
)
|
|
(61,019
|
)
|
|
—
|
|
|||
Premiums less benefits
|
|
—
|
|
|
—
|
|
|
99,845
|
|
|||
Carry value transfers in
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|||
Gross transfers into Level 3
|
|
382
|
|
|
—
|
|
|
—
|
|
|||
Gross transfers out of Level 3
|
|
(5,725
|
)
|
|
—
|
|
|
—
|
|
|||
Balance at December 31, 2017
|
|
$
|
—
|
|
|
$
|
220,190
|
|
|
$
|
512,526
|
|
Net loss for derivatives included in net investment income
|
|
—
|
|
|
(55,093
|
)
|
|
—
|
|
|||
Net change included in interest credited
|
|
—
|
|
|
—
|
|
|
(17,862
|
)
|
|||
Purchases, sales and settlements or maturities
|
|
|
|
|
|
|
||||||
Purchases
|
|
4,346
|
|
|
72,033
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|||
Settlements or maturities
|
|
—
|
|
|
(89,106
|
)
|
|
—
|
|
|||
Premiums less benefits
|
|
—
|
|
|
—
|
|
|
101,411
|
|
|||
Balance at December 31, 2018
|
|
$
|
4,346
|
|
|
$
|
148,006
|
|
|
$
|
596,075
|
|
|
|
Life
|
|
Annuity
|
|
Health
|
|
Property
& Casualty
|
|
Total
|
||||||||||
Balance at December 31, 2015
|
|
$
|
756,023
|
|
|
$
|
411,206
|
|
|
$
|
44,390
|
|
|
$
|
113,050
|
|
|
$
|
1,324,669
|
|
Additions
|
|
108,825
|
|
|
77,161
|
|
|
11,203
|
|
|
263,024
|
|
|
460,213
|
|
|||||
Amortization
|
|
(112,712
|
)
|
|
(71,381
|
)
|
|
(14,973
|
)
|
|
(262,299
|
)
|
|
(461,365
|
)
|
|||||
Effect of change in unrealized gains on available-for-sale debt securities
|
|
(6,296
|
)
|
|
(22,778
|
)
|
|
—
|
|
|
—
|
|
|
(29,074
|
)
|
|||||
Net change
|
|
(10,183
|
)
|
|
(16,998
|
)
|
|
(3,770
|
)
|
|
725
|
|
|
(30,226
|
)
|
|||||
Balance at December 31, 2016
|
|
745,840
|
|
|
394,208
|
|
|
40,620
|
|
|
113,775
|
|
|
1,294,443
|
|
|||||
Additions
|
|
123,854
|
|
|
104,772
|
|
|
11,413
|
|
|
285,796
|
|
|
525,835
|
|
|||||
Amortization
|
|
(74,068
|
)
|
|
(74,750
|
)
|
|
(15,227
|
)
|
|
(280,306
|
)
|
|
(444,351
|
)
|
|||||
Effect of change in unrealized gains on available-for-sale debt securities
|
|
(4,350
|
)
|
|
2,267
|
|
|
—
|
|
|
—
|
|
|
(2,083
|
)
|
|||||
Net change
|
|
45,436
|
|
|
32,289
|
|
|
(3,814
|
)
|
|
5,490
|
|
|
79,401
|
|
|||||
Balance at December 31, 2017
|
|
791,276
|
|
|
426,497
|
|
|
36,806
|
|
|
119,265
|
|
|
1,373,844
|
|
|||||
Additions
|
|
131,156
|
|
|
92,603
|
|
|
12,590
|
|
|
315,305
|
|
|
551,654
|
|
|||||
Amortization
|
|
(97,263
|
)
|
|
(57,468
|
)
|
|
(15,436
|
)
|
|
(309,990
|
)
|
|
(480,157
|
)
|
|||||
Effect of change in unrealized gains on available-for-sale debt securities
|
|
13,964
|
|
|
37,956
|
|
|
—
|
|
|
—
|
|
|
51,920
|
|
|||||
Net change
|
|
47,857
|
|
|
73,091
|
|
|
(2,846
|
)
|
|
5,315
|
|
|
123,417
|
|
|||||
Balance at December 31, 2018
|
|
$
|
839,133
|
|
|
$
|
499,588
|
|
|
$
|
33,960
|
|
|
$
|
124,580
|
|
|
$
|
1,497,261
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Unpaid claims balance, beginning
|
|
$
|
1,199,233
|
|
|
$
|
1,140,723
|
|
|
$
|
1,104,302
|
|
Less reinsurance recoverables
|
|
237,439
|
|
|
216,903
|
|
|
217,337
|
|
|||
Net beginning balance
|
|
961,794
|
|
|
923,820
|
|
|
886,965
|
|
|||
Incurred related to
|
|
|
|
|
|
|
||||||
Current
|
|
1,193,216
|
|
|
1,097,730
|
|
|
1,055,796
|
|
|||
Prior years
|
|
(19,852
|
)
|
|
(77,296
|
)
|
|
(36,788
|
)
|
|||
Total incurred claims
|
|
1,173,364
|
|
|
1,020,434
|
|
|
1,019,008
|
|
|||
Paid claims related to
|
|
|
|
|
|
|
||||||
Current
|
|
688,493
|
|
|
661,662
|
|
|
654,175
|
|
|||
Prior years
|
|
411,463
|
|
|
320,798
|
|
|
327,978
|
|
|||
Total paid claims
|
|
1,099,956
|
|
|
982,460
|
|
|
982,153
|
|
|||
Net balance
|
|
1,035,373
|
|
|
961,794
|
|
|
923,820
|
|
|||
Plus reinsurance recoverables
|
|
254,466
|
|
|
237,439
|
|
|
216,903
|
|
|||
Unpaid claims balance, ending
|
|
$
|
1,289,839
|
|
|
$
|
1,199,233
|
|
|
$
|
1,140,723
|
|
|
December 31, 2018
|
||
Net outstanding liabilities
|
|
||
Auto Liability
|
$
|
448,736
|
|
Non-Auto Liability
|
256,558
|
|
|
Commercial Multi-Peril
|
92,695
|
|
|
Homeowners
|
72,895
|
|
|
Short Tail Property
|
33,801
|
|
|
Credit
|
16,615
|
|
|
Health
|
40,361
|
|
|
Other
|
2,091
|
|
|
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance
|
963,752
|
|
|
Reinsurance recoverable on unpaid claims
|
|
||
Auto Liability
|
11,731
|
|
|
Non-Auto Liability
|
37,234
|
|
|
Commercial Multi-Peril
|
3,381
|
|
|
Homeowners
|
2,993
|
|
|
Short Tail Property
|
3,124
|
|
|
Credit
|
11,025
|
|
|
Health
|
173,329
|
|
|
Other
|
7,600
|
|
|
Total reinsurance recoverable on unpaid claims
|
250,417
|
|
|
Insurance lines other than short-duration
|
215,966
|
|
|
Unallocated claims adjustment expenses
|
51,159
|
|
|
|
267,125
|
|
|
Total gross liability for unpaid claims and claim adjustment expense
|
$
|
1,481,294
|
|
•
|
Initial Expected Loss Ratio—This method calculates an estimate of ultimate losses by applying an estimated loss ratio to actual earned premium for each calendar/accident year.
|
•
|
Bornhuetter-Ferguson—This method uses as a starting point an assumed initial expected loss ratio method and blends in the loss ratio implied by the claims experience to date by using loss development patterns based on our historical experience.
|
•
|
Loss or Expense Development (Chain Ladder)—This method uses actual loss or defense and cost containment expense data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total.
|
•
|
Ratio of Paid Defense and Cost Containment Expense to Paid Loss Development—This method uses the ratio of paid defense and cost containment expense to paid loss data and the historical development profiles on older accident periods to project more recent, less developed periods to their ultimate total. In this method, an ultimate ratio of paid defense and cost containment expense to paid loss is selected for each accident period. The selected paid defense and cost containment expense to paid loss ratio is then applied to the selected ultimate loss for each accident period to estimate the ultimate defense and cost containment expense. Paid defense and cost containment expense is then subtracted from the ultimate defense and cost containment expense to calculate the unpaid defense and cost containment expense for that accident period.
|
•
|
Calendar Year Paid Adjusting and Other Expense to Paid Loss—This method uses a selected prior calendar years’ paid expense to paid loss ratio to project ultimate loss adjustment expenses for adjusting and other expense. A percentage of the selected ratio is applied to the case reserves (depending on the line of insurance) and
100%
to the indicated IBNR reserves. These ratios assume that a percentage of the expense is incurred when a claim is opened and the remaining percentage is paid throughout the claim’s life.
|
•
|
Pegged Frequency and Severity—Uses actual claims count data and emergence patterns of older accident periods to project the ultimate number of reported claims for a given accident year. A similar process projects the ultimate average severity per claim so that the product of the 2 projections results in a projection of ultimate loss for a given accident year.
|
|
|
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
For the Years Ended December 31,
|
|
IBNR Plus
Expected
Development
|
|
Cumulative Number of
Reported Claims
|
|||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
|
||||||||||||||||||||||||||
2009
|
|
$
|
299,753
|
|
|
$
|
273,551
|
|
|
$
|
263,269
|
|
|
$
|
258,749
|
|
|
$
|
260,029
|
|
|
$
|
258,200
|
|
|
$
|
257,678
|
|
|
$
|
256,586
|
|
|
$
|
256,407
|
|
|
$
|
256,634
|
|
|
$
|
23
|
|
|
47,070
|
|
2010
|
|
|
|
288,166
|
|
|
270,935
|
|
|
266,223
|
|
|
265,949
|
|
|
264,104
|
|
|
263,040
|
|
|
261,930
|
|
|
261,092
|
|
|
261,207
|
|
|
111
|
|
|
47,099
|
|
||||||||||||
2011
|
|
|
|
|
|
263,411
|
|
|
250,659
|
|
|
248,865
|
|
|
244,519
|
|
|
244,436
|
|
|
242,619
|
|
|
241,711
|
|
|
240,997
|
|
|
225
|
|
|
47,067
|
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
251,593
|
|
|
242,255
|
|
|
231,312
|
|
|
228,013
|
|
|
229,426
|
|
|
228,559
|
|
|
228,864
|
|
|
489
|
|
|
44,713
|
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
242,364
|
|
|
236,432
|
|
|
233,068
|
|
|
231,301
|
|
|
228,285
|
|
|
226,608
|
|
|
1,207
|
|
|
38,720
|
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
232,146
|
|
|
223,386
|
|
|
217,819
|
|
|
215,419
|
|
|
214,870
|
|
|
2,355
|
|
|
35,966
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
237,578
|
|
|
240,697
|
|
|
239,421
|
|
|
245,775
|
|
|
6,698
|
|
|
36,033
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
259,177
|
|
|
256,080
|
|
|
261,400
|
|
|
17,057
|
|
|
36,904
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
269,803
|
|
|
280,012
|
|
|
39,501
|
|
|
38,087
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
314,467
|
|
|
94,962
|
|
|
34,697
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
2,530,834
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
||||||||||||||||||||
2009
|
|
$
|
95,847
|
|
|
$
|
166,441
|
|
|
$
|
203,869
|
|
|
$
|
228,650
|
|
|
$
|
242,768
|
|
|
$
|
250,681
|
|
|
$
|
253,417
|
|
|
$
|
254,988
|
|
|
$
|
255,308
|
|
|
$
|
256,241
|
|
2010
|
|
|
|
92,589
|
|
|
164,298
|
|
|
208,531
|
|
|
237,540
|
|
|
250,647
|
|
|
257,021
|
|
|
259,173
|
|
|
259,966
|
|
|
260,404
|
|
|||||||||||
2011
|
|
|
|
|
|
93,245
|
|
|
161,387
|
|
|
197,326
|
|
|
217,640
|
|
|
230,585
|
|
|
236,187
|
|
|
238,510
|
|
|
239,409
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
82,531
|
|
|
150,323
|
|
|
183,448
|
|
|
204,980
|
|
|
214,467
|
|
|
219,170
|
|
|
222,117
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
79,358
|
|
|
143,709
|
|
|
181,535
|
|
|
204,480
|
|
|
215,280
|
|
|
219,303
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
72,838
|
|
|
134,376
|
|
|
166,947
|
|
|
187,375
|
|
|
204,057
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
78,861
|
|
|
149,366
|
|
|
186,281
|
|
|
211,908
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86,492
|
|
|
153,911
|
|
|
198,326
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,357
|
|
|
175,175
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
95,777
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
2,082,717
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance*
|
|
|
619
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
448,736
|
|
*
|
Unaudited supplemental information
|
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
IBNR Plus
Expected
Development
|
|
Cumulative Number of
Reported
Claims
|
|||||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
|
||||||||||||||||||||||||||
2009
|
|
$
|
83,773
|
|
|
$
|
75,857
|
|
|
$
|
70,905
|
|
|
$
|
72,267
|
|
|
$
|
72,490
|
|
|
$
|
72,077
|
|
|
$
|
71,003
|
|
|
$
|
71,517
|
|
|
$
|
69,099
|
|
|
$
|
69,696
|
|
|
$
|
1,632
|
|
|
13,275
|
|
2010
|
|
|
|
91,191
|
|
|
85,498
|
|
|
83,724
|
|
|
82,287
|
|
|
82,145
|
|
|
82,087
|
|
|
80,920
|
|
|
78,279
|
|
|
77,985
|
|
|
2,255
|
|
|
7,820
|
|
||||||||||||
2011
|
|
|
|
|
|
86,409
|
|
|
76,038
|
|
|
75,390
|
|
|
74,372
|
|
|
73,647
|
|
|
71,423
|
|
|
68,248
|
|
|
67,979
|
|
|
2,480
|
|
|
5,656
|
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
83,146
|
|
|
80,470
|
|
|
78,644
|
|
|
75,226
|
|
|
68,017
|
|
|
63,630
|
|
|
64,118
|
|
|
3,490
|
|
|
4,785
|
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
74,183
|
|
|
75,815
|
|
|
70,772
|
|
|
67,841
|
|
|
65,096
|
|
|
64,564
|
|
|
4,085
|
|
|
4,435
|
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
83,084
|
|
|
75,550
|
|
|
72,624
|
|
|
67,339
|
|
|
67,865
|
|
|
5,575
|
|
|
5,914
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83,897
|
|
|
78,968
|
|
|
76,724
|
|
|
67,548
|
|
|
10,626
|
|
|
5,344
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86,935
|
|
|
83,179
|
|
|
73,764
|
|
|
19,334
|
|
|
4,065
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,616
|
|
|
88,902
|
|
|
27,488
|
|
|
7,400
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88,986
|
|
|
52,227
|
|
|
10,347
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
731,407
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
||||||||||||||||||||
2009
|
|
$
|
15,389
|
|
|
$
|
28,725
|
|
|
$
|
41,424
|
|
|
$
|
49,895
|
|
|
$
|
55,391
|
|
|
$
|
61,277
|
|
|
$
|
63,039
|
|
|
$
|
64,755
|
|
|
$
|
65,441
|
|
|
$
|
66,047
|
|
2010
|
|
|
|
16,473
|
|
|
31,819
|
|
|
46,746
|
|
|
57,354
|
|
|
65,557
|
|
|
69,091
|
|
|
70,369
|
|
|
71,509
|
|
|
72,261
|
|
|||||||||||
2011
|
|
|
|
|
|
13,848
|
|
|
31,943
|
|
|
41,814
|
|
|
52,003
|
|
|
56,791
|
|
|
60,706
|
|
|
62,414
|
|
|
63,121
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
13,862
|
|
|
27,574
|
|
|
38,826
|
|
|
49,585
|
|
|
55,194
|
|
|
57,863
|
|
|
59,528
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
12,794
|
|
|
22,743
|
|
|
32,474
|
|
|
42,504
|
|
|
47,987
|
|
|
51,672
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
11,201
|
|
|
26,587
|
|
|
36,220
|
|
|
45,206
|
|
|
51,853
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,979
|
|
|
23,488
|
|
|
37,059
|
|
|
46,285
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,733
|
|
|
24,633
|
|
|
35,502
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,865
|
|
|
37,139
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,156
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
496,564
|
|
|||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance*
|
|
|
21,715
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
256,558
|
|
*
|
Unaudited supplemental information
|
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
IBNR Plus Expected
Development
|
|
Cumulative Number of
Reported Claims
|
|||||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
|
||||||||||||||||||||||||||
2009
|
|
$
|
41,027
|
|
|
$
|
38,666
|
|
|
$
|
36,610
|
|
|
$
|
35,354
|
|
|
$
|
34,884
|
|
|
$
|
34,381
|
|
|
$
|
34,529
|
|
|
$
|
34,079
|
|
|
$
|
33,515
|
|
|
$
|
33,423
|
|
|
$
|
17
|
|
|
3,516
|
|
2010
|
|
|
|
41,116
|
|
|
37,736
|
|
|
40,243
|
|
|
37,520
|
|
|
35,914
|
|
|
37,839
|
|
|
37,215
|
|
|
36,367
|
|
|
35,923
|
|
|
191
|
|
|
3,589
|
|
||||||||||||
2011
|
|
|
|
|
|
42,185
|
|
|
40,825
|
|
|
39,037
|
|
|
38,160
|
|
|
38,456
|
|
|
36,945
|
|
|
37,014
|
|
|
36,638
|
|
|
485
|
|
|
3,559
|
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
35,169
|
|
|
28,548
|
|
|
26,805
|
|
|
23,258
|
|
|
23,385
|
|
|
23,090
|
|
|
22,481
|
|
|
606
|
|
|
2,715
|
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
33,979
|
|
|
27,592
|
|
|
27,867
|
|
|
26,970
|
|
|
25,948
|
|
|
26,028
|
|
|
1,122
|
|
|
2,220
|
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
36,852
|
|
|
31,220
|
|
|
34,911
|
|
|
33,962
|
|
|
36,132
|
|
|
1,370
|
|
|
2,303
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33,997
|
|
|
31,488
|
|
|
29,023
|
|
|
32,282
|
|
|
2,238
|
|
|
2,203
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,115
|
|
|
33,475
|
|
|
33,080
|
|
|
7,460
|
|
|
4,575
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,411
|
|
|
37,079
|
|
|
9,740
|
|
|
6,403
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50,784
|
|
|
23,785
|
|
|
7,422
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
343,850
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
||||||||||||||||||||
2009
|
|
$
|
11,101
|
|
|
$
|
17,248
|
|
|
$
|
21,660
|
|
|
$
|
25,779
|
|
|
$
|
30,272
|
|
|
$
|
32,150
|
|
|
$
|
32,623
|
|
|
$
|
32,842
|
|
|
$
|
32,977
|
|
|
$
|
33,349
|
|
2010
|
|
|
|
12,511
|
|
|
17,490
|
|
|
22,135
|
|
|
27,152
|
|
|
31,378
|
|
|
33,384
|
|
|
34,888
|
|
|
34,764
|
|
|
34,903
|
|
|||||||||||
2011
|
|
|
|
|
|
13,092
|
|
|
18,390
|
|
|
22,616
|
|
|
28,291
|
|
|
30,458
|
|
|
32,692
|
|
|
34,177
|
|
|
34,782
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
11,525
|
|
|
14,454
|
|
|
16,263
|
|
|
18,670
|
|
|
20,716
|
|
|
21,026
|
|
|
21,352
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
9,374
|
|
|
12,723
|
|
|
15,426
|
|
|
18,406
|
|
|
20,816
|
|
|
21,718
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
12,001
|
|
|
16,484
|
|
|
20,199
|
|
|
24,602
|
|
|
27,339
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,820
|
|
|
12,956
|
|
|
16,402
|
|
|
21,680
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,327
|
|
|
17,193
|
|
|
19,085
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12,458
|
|
|
20,828
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,027
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
253,063
|
|
|||||||||||||||||
|
|
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance*
|
|
|
1,908
|
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
92,695
|
|
*
|
Unaudited supplemental information
|
|
|
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||||||||||||||||||||||||||||||||
|
|
|
|
For the Years Ended December 31,
|
|
IBNR Plus Expected
Development
|
|
Cumulative Number of
Reported Claims
|
|||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
|
||||||||||||||||||||||||||
2009
|
|
$
|
183,437
|
|
|
$
|
178,420
|
|
|
$
|
179,249
|
|
|
$
|
177,534
|
|
|
$
|
177,798
|
|
|
$
|
177,989
|
|
|
$
|
178,372
|
|
|
$
|
178,073
|
|
|
$
|
178,008
|
|
|
$
|
177,916
|
|
|
$
|
2
|
|
|
31,489
|
|
2010
|
|
|
|
206,606
|
|
|
200,318
|
|
|
198,111
|
|
|
198,029
|
|
|
197,443
|
|
|
197,675
|
|
|
197,465
|
|
|
197,067
|
|
|
196,639
|
|
|
72
|
|
|
37,069
|
|
||||||||||||
2011
|
|
|
|
|
|
203,301
|
|
|
200,356
|
|
|
198,757
|
|
|
197,581
|
|
|
197,381
|
|
|
197,451
|
|
|
197,239
|
|
|
197,070
|
|
|
89
|
|
|
38,758
|
|
|||||||||||||
2012
|
|
|
|
|
|
|
|
181,284
|
|
|
177,664
|
|
|
175,523
|
|
|
175,509
|
|
|
175,178
|
|
|
175,032
|
|
|
174,611
|
|
|
168
|
|
|
30,990
|
|
||||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
152,208
|
|
|
149,080
|
|
|
149,272
|
|
|
148,231
|
|
|
147,927
|
|
|
147,444
|
|
|
171
|
|
|
20,035
|
|
|||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
132,651
|
|
|
131,634
|
|
|
130,287
|
|
|
131,546
|
|
|
130,895
|
|
|
195
|
|
|
18,153
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
125,430
|
|
|
124,199
|
|
|
123,619
|
|
|
123,824
|
|
|
262
|
|
|
17,721
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
147,264
|
|
|
145,373
|
|
|
144,376
|
|
|
607
|
|
|
21,460
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
164,284
|
|
|
172,274
|
|
|
1,578
|
|
|
23,405
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
174,495
|
|
|
15,491
|
|
|
21,355
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,639,544
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||||||||||||||||||||||
Accident Year
|
|
2009*
|
|
2010*
|
|
2011*
|
|
2012*
|
|
2013*
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
||||||||||||||||||||
2009
|
|
$
|
142,781
|
|
|
$
|
170,372
|
|
|
$
|
173,985
|
|
|
$
|
175,220
|
|
|
$
|
176,588
|
|
|
$
|
176,985
|
|
|
$
|
177,428
|
|
|
$
|
177,615
|
|
|
$
|
177,670
|
|
|
$
|
177,689
|
|
2010
|
|
|
|
149,755
|
|
|
189,046
|
|
|
193,006
|
|
|
195,365
|
|
|
195,714
|
|
|
196,281
|
|
|
196,419
|
|
|
196,504
|
|
|
196,480
|
|
|||||||||||
2011
|
|
|
|
|
|
160,625
|
|
|
190,946
|
|
|
194,237
|
|
|
195,327
|
|
|
196,575
|
|
|
196,628
|
|
|
196,717
|
|
|
196,757
|
|
||||||||||||
2012
|
|
|
|
|
|
|
|
143,797
|
|
|
169,415
|
|
|
171,842
|
|
|
173,170
|
|
|
173,676
|
|
|
174,139
|
|
|
174,247
|
|
|||||||||||||
2013
|
|
|
|
|
|
|
|
|
|
115,605
|
|
|
140,309
|
|
|
145,152
|
|
|
146,650
|
|
|
146,920
|
|
|
147,145
|
|
||||||||||||||
2014
|
|
|
|
|
|
|
|
|
|
|
|
96,300
|
|
|
122,601
|
|
|
126,245
|
|
|
129,467
|
|
|
130,059
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86,617
|
|
|
114,696
|
|
|
119,331
|
|
|
122,585
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
105,415
|
|
|
136,796
|
|
|
140,972
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
116,075
|
|
|
159,107
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
121,631
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,566,672
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance*
|
|
|
23
|
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
72,895
|
|
*
|
Unaudited supplemental information
|
|
|
Incurred Claims and Allocated Claim Adjustment
Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||
|
|
For the Years Ended December 31,
|
|
IBNR Plus Expected
Development
|
|
Cumulative Number of
Reported Claims
|
|||||||||
Accident Year
|
|
2017*
|
|
2018
|
|
||||||||||
2017
|
|
$
|
229,284
|
|
|
$
|
227,106
|
|
|
$
|
91
|
|
|
82,343
|
|
2018
|
|
—
|
|
|
248,182
|
|
|
(1,840
|
)
|
|
63,360
|
|
|||
|
|
Total
|
|
|
$
|
475,288
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim
Adjustment Expenses, Net of Reinsurance
|
||||||
|
|
For the Years Ended December 31,
|
||||||
Accident Year
|
|
2017*
|
|
2018
|
||||
2017
|
|
$
|
205,245
|
|
|
225,141
|
|
|
2018
|
|
—
|
|
|
218,095
|
|
||
|
|
Total
|
|
|
$
|
443,236
|
|
|
All outstanding liabilities before 2017, net of reinsurance*
|
|
|
1,749
|
|
||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
33,801
|
|
*
|
Unaudited supplemental information
|
|
|
Incurred Claims and Allocated Claim Adjustment
Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||
|
|
For the Years Ended December 31,
|
|
IBNR Plus Expected
Development
|
|
Cumulative Number of
Reported Claims
|
|||||||||
Accident Year
|
|
2017*
|
|
2018
|
|
||||||||||
2017
|
|
$
|
93,571
|
|
|
$
|
93,572
|
|
|
$
|
—
|
|
|
57,364
|
|
2018
|
|
—
|
|
|
89,308
|
|
|
7,947
|
|
|
47,075
|
|
|||
|
|
Total
|
|
|
$
|
182,880
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim
Adjustment Expenses, Net of Reinsurance
|
||||||
|
|
For the Years Ended December 31,
|
||||||
Accident Year
|
|
2017*
|
|
2018
|
||||
2017
|
|
$
|
73,838
|
|
|
$
|
93,572
|
|
2018
|
|
—
|
|
|
72,693
|
|
||
|
|
Total
|
|
|
$
|
166,265
|
|
|
All outstanding liabilities before 2017, net of reinsurance*
|
|
|
—
|
|
||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
16,615
|
|
*
|
Unaudited supplemental information
|
|
|
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2018
|
|||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
IBNR Plus
Expected
Development
|
|
Cumulative
Number of
Reported Claims
|
|||||||||||||||||||||
Accident Year
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
|
||||||||||||||||
2014
|
|
$
|
38,102
|
|
|
$
|
67,545
|
|
|
$
|
62,802
|
|
|
$
|
62,906
|
|
|
$
|
62,919
|
|
|
$
|
1
|
|
|
35,346
|
|
2015
|
|
|
|
34,069
|
|
|
45,167
|
|
|
41,513
|
|
|
41,514
|
|
|
1
|
|
|
32,527
|
|
|||||||
2016
|
|
|
|
|
|
36,198
|
|
|
41,236
|
|
|
37,164
|
|
|
7
|
|
|
28,706
|
|
||||||||
2017
|
|
|
|
|
|
|
|
41,544
|
|
|
39,930
|
|
|
4,531
|
|
|
31,323
|
|
|||||||||
2018
|
|
|
|
|
|
|
|
|
|
64,686
|
|
|
28,967
|
|
|
28,503
|
|
||||||||||
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
246,213
|
|
|
|
|
|
|
|
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||
|
|
For the Years Ended December 31,
|
||||||||||||||||||
Accident Year
|
|
2014*
|
|
2015*
|
|
2016*
|
|
2017*
|
|
2018
|
||||||||||
2014
|
|
$
|
25,436
|
|
|
$
|
62,632
|
|
|
$
|
62,678
|
|
|
$
|
62,819
|
|
|
$
|
62,819
|
|
2015
|
|
|
|
23,574
|
|
|
41,491
|
|
|
41,436
|
|
|
41,462
|
|
||||||
2016
|
|
|
|
|
|
24,357
|
|
|
37,040
|
|
|
37,115
|
|
|||||||
2017
|
|
|
|
|
|
|
|
25,358
|
|
|
35,392
|
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
34,894
|
|
|||||||||
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
211,682
|
|
|||||||
All outstanding liabilities before 2014, net of reinsurance*
|
|
|
5,830
|
|
||||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance
|
|
|
$
|
40,361
|
|
*
|
Unaudited supplemental information
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Direct premiums
|
|
$
|
2,499,584
|
|
|
$
|
2,341,088
|
|
|
$
|
2,246,595
|
|
Reinsurance premiums assumed from other companies
|
|
286,165
|
|
|
227,053
|
|
|
194,910
|
|
|||
Reinsurance premiums ceded to other companies
|
|
(557,556
|
)
|
|
(500,939
|
)
|
|
(444,857
|
)
|
|||
Net premiums
|
|
$
|
2,228,193
|
|
|
$
|
2,067,202
|
|
|
$
|
1,996,648
|
|
|
|
December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Direct life insurance in-force
|
|
$
|
110,125,270
|
|
|
$
|
102,843,372
|
|
|
$
|
95,439,425
|
|
Reinsurance risks assumed from other companies
|
|
230,845
|
|
|
257,552
|
|
|
181,655
|
|
|||
Reinsurance risks ceded to other companies
|
|
(26,601,422
|
)
|
|
(29,646,646
|
)
|
|
(29,980,485
|
)
|
|||
Net life insurance in-force
|
|
$
|
83,754,693
|
|
|
$
|
73,454,278
|
|
|
$
|
65,640,595
|
|
|
|
Years ended December 31,
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
Amount
|
|
Rate
|
|
Amount*
|
|
Rate*
|
|
Amount*
|
|
Rate*
|
|||||||||
Income tax expense before tax on equity in earnings of unconsolidated affiliates
|
|
$
|
29,643
|
|
|
18.2
|
%
|
|
$
|
114,921
|
|
|
27.7
|
%
|
|
$
|
73,708
|
|
|
27.5
|
%
|
Tax on equity in earnings of unconsolidated affiliates
|
|
4,469
|
|
|
2.8
|
|
|
30,336
|
|
|
7.3
|
|
|
20,020
|
|
|
7.5
|
|
|||
Total expected income tax expense at the statutory rate
|
|
34,112
|
|
|
21.0
|
|
|
145,257
|
|
|
35.0
|
|
|
93,728
|
|
|
35.0
|
|
|||
Tax-exempt investment income
|
|
(3,323
|
)
|
|
(2.0
|
)
|
|
(6,887
|
)
|
|
(1.7
|
)
|
|
(7,834
|
)
|
|
(2.9
|
)
|
|||
Deferred tax change
|
|
(4,354
|
)
|
|
(2.7
|
)
|
|
(217,622
|
)
|
|
(52.4
|
)
|
|
6,699
|
|
|
2.5
|
|
|||
Dividend exclusion
|
|
(4,080
|
)
|
|
(2.5
|
)
|
|
(8,701
|
)
|
|
(2.1
|
)
|
|
(8,490
|
)
|
|
(3.2
|
)
|
|||
Miscellaneous tax credits, net
|
|
(7,802
|
)
|
|
(4.8
|
)
|
|
(9,524
|
)
|
|
(2.3
|
)
|
|
(9,993
|
)
|
|
(3.7
|
)
|
|||
Low income housing tax credit expense
|
|
6,231
|
|
|
3.8
|
|
|
5,263
|
|
|
1.3
|
|
|
4,795
|
|
|
1.8
|
|
|||
Change in valuation allowance
|
|
2,700
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Tax accrual adjustment
|
|
(2,893
|
)
|
|
(1.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Return to provision
|
|
(20,301
|
)
|
|
(12.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Other items, net
|
|
1,155
|
|
|
0.6
|
|
|
1,905
|
|
|
0.5
|
|
|
(3,885
|
)
|
|
(1.5
|
)
|
|||
Provision for federal income tax before interest expense
|
|
1,445
|
|
|
0.8
|
|
|
(90,309
|
)
|
|
(21.7
|
)
|
|
75,020
|
|
|
28.0
|
|
|||
Interest expense (benefit)
|
|
—
|
|
|
—
|
|
|
(2,686
|
)
|
|
(0.6
|
)
|
|
2,686
|
|
|
1.0
|
|
|||
Total
|
|
$
|
1,445
|
|
|
0.8
|
%
|
|
$
|
(92,995
|
)
|
|
(22.3
|
)%
|
|
$
|
77,706
|
|
|
29.0
|
%
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
DEFERRED TAX ASSETS
|
|
|
|
|
||||
Invested assets, principally due to impairment losses
|
|
$
|
18,148
|
|
|
$
|
23,570
|
|
Investment in real estate and other invested assets, principally due to investment valuation allowances
|
|
8,424
|
|
|
8,547
|
|
||
Policyholder funds, principally due to policy reserve discount
|
|
91,362
|
|
|
90,480
|
|
||
Policyholder funds, principally due to unearned premium reserve
|
|
24,586
|
|
|
23,001
|
|
||
Participating policyholders’ surplus
|
|
32,785
|
|
|
34,538
|
|
||
Pension
|
|
3,598
|
|
|
26,274
|
|
||
Commissions and other expenses
|
|
3,108
|
|
|
3,796
|
|
||
Other assets
|
|
9,756
|
|
|
15,745
|
|
||
Tax carryforwards
|
|
138
|
|
|
60
|
|
||
Gross deferred tax assets before valuation allowance
|
|
191,905
|
|
|
226,011
|
|
||
Valuation allowance
|
|
(2,700
|
)
|
|
—
|
|
||
Gross deferred tax assets after valuation allowance
|
|
189,205
|
|
|
226,011
|
|
||
|
|
|
|
|
||||
DEFERRED TAX LIABILITIES
|
|
|
|
|
||||
Marketable securities, principally due to net unrealized gains
|
|
161,256
|
|
|
253,526
|
|
||
Investment in bonds, principally due to differences between GAAP and tax basis
|
|
13,088
|
|
|
12,547
|
|
||
Deferred policy acquisition costs, due to difference between GAAP and tax amortization methods
|
|
240,731
|
|
|
220,809
|
|
||
Property, plant and equipment, principally due to difference between GAAP and tax depreciation methods
|
|
22,204
|
|
|
19,203
|
|
||
Other liabilities
|
|
16,111
|
|
|
36,296
|
|
||
Gross deferred tax liabilities
|
|
453,390
|
|
|
542,381
|
|
||
Total net deferred tax liability
|
|
$
|
264,185
|
|
|
$
|
316,370
|
|
|
|
Net Unrealized
Gains (Losses)
on Securities
|
|
Defined
Benefit
Pension Plan
Adjustments
|
|
Foreign
Currency
Adjustments
|
|
Accumulated other Comprehensive Income (Loss)
|
||||||||
Balance at December 31, 2015
|
|
$
|
457,467
|
|
|
$
|
(101,679
|
)
|
|
$
|
(3,168
|
)
|
|
$
|
352,620
|
|
Amounts reclassified from AOCI (net of tax benefit $7,705 and expense $4,438)
|
|
(14,308
|
)
|
|
8,242
|
|
|
—
|
|
|
(6,066
|
)
|
||||
Unrealized holding gains arising during the period (net of tax expense $71,859)
|
|
133,451
|
|
|
—
|
|
|
—
|
|
|
133,451
|
|
||||
Unrealized adjustment to DAC (net of tax benefit $10,318)
|
|
(18,756
|
)
|
|
—
|
|
|
—
|
|
|
(18,756
|
)
|
||||
Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $3,599)
|
|
(6,683
|
)
|
|
—
|
|
|
—
|
|
|
(6,683
|
)
|
||||
Actuarial gain arising during the period (net of tax expense of $562)
|
|
—
|
|
|
1,044
|
|
|
—
|
|
|
1,044
|
|
||||
Foreign currency adjustment (net of tax expense $156)
|
|
—
|
|
|
—
|
|
|
289
|
|
|
289
|
|
||||
Balance at December 31, 2016
|
|
551,171
|
|
|
(92,393
|
)
|
|
(2,879
|
)
|
|
455,899
|
|
||||
Amounts reclassified from AOCI (net of tax benefit $18,789 and expense $5,005)
|
|
(34,895
|
)
|
|
18,827
|
|
|
—
|
|
|
(16,068
|
)
|
||||
Unrealized holding gains arising during the period (net of tax expense $113,604)
|
|
210,595
|
|
|
—
|
|
|
—
|
|
|
210,595
|
|
||||
Unrealized adjustment to DAC (net of tax benefit $729)
|
|
(1,354
|
)
|
|
—
|
|
|
—
|
|
|
(1,354
|
)
|
||||
Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $2,480)
|
|
(4,606
|
)
|
|
—
|
|
|
—
|
|
|
(4,606
|
)
|
||||
Actuarial loss arising during the period (net of tax benefit of $796)
|
|
—
|
|
|
(2,996
|
)
|
|
—
|
|
|
(2,996
|
)
|
||||
Foreign currency adjustment (net of tax expense $198)
|
|
—
|
|
|
—
|
|
|
746
|
|
|
746
|
|
||||
Balance at December 31, 2017
|
|
720,911
|
|
|
(76,562
|
)
|
|
(2,133
|
)
|
|
642,216
|
|
||||
Amounts reclassified from AOCI (net of tax benefit $561 and expense $1,532)
|
|
(2,111
|
)
|
|
5,764
|
|
|
—
|
|
|
3,653
|
|
||||
Unrealized holding losses arising during the period (net of tax benefit $46,812)
|
|
(183,981
|
)
|
|
—
|
|
|
—
|
|
|
(183,981
|
)
|
||||
Unrealized adjustment to DAC (net of tax expense $10,903)
|
|
41,017
|
|
|
—
|
|
|
—
|
|
|
41,017
|
|
||||
Unrealized gains on investments attributable to participating policyholders’ interest (net of tax expense $2,343)
|
|
8,814
|
|
|
—
|
|
|
—
|
|
|
8,814
|
|
||||
Actuarial gain arising during the period (net of tax expense of $4,402)
|
|
—
|
|
|
16,562
|
|
|
—
|
|
|
16,562
|
|
||||
Foreign currency adjustment (net of tax benefit $239)
|
|
—
|
|
|
—
|
|
|
(900
|
)
|
|
(900
|
)
|
||||
Cumulative effect of changes in accounting (net of tax benefit $334,955)
|
|
(627,119
|
)
|
|
—
|
|
|
—
|
|
|
(627,119
|
)
|
||||
Balance at December 31, 2018
|
|
$
|
(42,469
|
)
|
|
$
|
(54,236
|
)
|
|
$
|
(3,033
|
)
|
|
$
|
(99,738
|
)
|
|
|
Years ended December 31,
|
|||||||
|
|
2018
|
|
2017
|
|
2016
|
|||
Common stock
|
|
|
|
|
|
|
|||
Shares issued
|
|
30,832,449
|
|
|
30,832,449
|
|
|
30,832,449
|
|
Treasury shares
|
|
(3,947,000
|
)
|
|
(3,900,565
|
)
|
|
(3,917,933
|
)
|
Outstanding shares
|
|
26,885,449
|
|
|
26,931,884
|
|
|
26,914,516
|
|
Restricted shares
|
|
(10,000
|
)
|
|
(74,000
|
)
|
|
(76,000
|
)
|
Unrestricted outstanding shares
|
|
26,875,449
|
|
|
26,857,884
|
|
|
26,838,516
|
|
|
|
SAR
|
|
RS Shares
|
|
RS Units
|
|||||||||||||||
|
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|
Shares
|
|
Weighted-Average
Grant Date
Fair Value
|
|
Units
|
|
Weighted-Average
Grant Date
Fair Value
|
|||||||||
Outstanding at December 31, 2015
|
|
38,092
|
|
|
$
|
115.18
|
|
|
76,000
|
|
|
$
|
110.73
|
|
|
135,725
|
|
|
$
|
103.73
|
|
Granted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36,849
|
|
|
103.58
|
|
|||
Exercised
|
|
(15,375
|
)
|
|
114.07
|
|
|
—
|
|
|
—
|
|
|
(66,581
|
)
|
|
100.06
|
|
|||
Forfeited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,548
|
)
|
|
106.10
|
|
|||
Expired
|
|
(16,564
|
)
|
|
116.88
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at December 31, 2016
|
|
6,153
|
|
|
113.36
|
|
|
76,000
|
|
|
110.73
|
|
|
100,445
|
|
|
105.97
|
|
|||
Granted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,500
|
|
|
117.69
|
|
|||
Exercised
|
|
(333
|
)
|
|
116.48
|
|
|
(2,000
|
)
|
|
130.52
|
|
|
(62,111
|
)
|
|
108.90
|
|
|||
Forfeited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,069
|
)
|
|
104.17
|
|
|||
Expired
|
|
(3,234
|
)
|
|
118.37
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at December 31, 2017
|
|
2,586
|
|
|
106.70
|
|
|
74,000
|
|
|
110.19
|
|
|
52,765
|
|
|
106.26
|
|
|||
Granted
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,250
|
|
|
121.93
|
|
|||
Exercised
|
|
(650
|
)
|
|
99.79
|
|
|
(64,000
|
)
|
|
114.90
|
|
|
(41,949
|
)
|
|
106.94
|
|
|||
Forfeited
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(750
|
)
|
|
121.93
|
|
|||
Expired
|
|
(1,601
|
)
|
|
114.17
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at December 31, 2018
|
|
335
|
|
|
$
|
84.41
|
|
|
10,000
|
|
|
$
|
80.05
|
|
|
18,316
|
|
|
$
|
111.12
|
|
|
|
SAR
|
|
RS Shares
|
|
RS Units
|
||||||
Weighted-average contractual remaining life (in years)
|
|
0.54
|
|
|
4.17
|
|
|
0.29
|
|
|||
Exercisable shares
|
|
335
|
|
|
N/A
|
|
|
N/A
|
|
|||
Weighted-average exercise price
|
|
$
|
84.54
|
|
|
$
|
114.9
|
|
|
$
|
106.94
|
|
Weighted-average exercise price exercisable shares
|
|
84.54
|
|
|
N/A
|
|
|
N/A
|
|
|||
Compensation expense (credit)
|
|
|
|
|
|
|
||||||
Year ended December 31, 2018
|
|
$
|
(28,000
|
)
|
|
$
|
328,000
|
|
|
$
|
1,098,000
|
|
Year ended December 31, 2017
|
|
(15,000
|
)
|
|
823,000
|
|
|
3,227,000
|
|
|||
Year ended December 31, 2016
|
|
179,000
|
|
|
843,000
|
|
|
6,539,000
|
|
|||
Fair value of liability award
|
|
|
|
|
|
|
||||||
December 31, 2018
|
|
$
|
33,000
|
|
|
N/A
|
|
|
$
|
2,426,000
|
|
|
December 31, 2017
|
|
63,000
|
|
|
N/A
|
|
|
6,376,000
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Weighted average shares outstanding
|
|
26,886,357
|
|
|
26,896,926
|
|
|
26,908,570
|
|
|||
Incremental shares from RS awards and RSUs
|
|
30,286
|
|
|
63,769
|
|
|
58,502
|
|
|||
Total shares for diluted calculations
|
|
26,916,643
|
|
|
26,960,695
|
|
|
26,967,072
|
|
|||
Net income attributable to American National (in thousands)*
|
|
$
|
158,995
|
|
|
$
|
493,651
|
|
|
$
|
181,003
|
|
Basic earnings per share*
|
|
$
|
5.91
|
|
|
$
|
18.35
|
|
|
$
|
6.73
|
|
Diluted earnings per share*
|
|
$
|
5.91
|
|
|
$
|
18.31
|
|
|
$
|
6.71
|
|
*
|
This includes the impact of the U. S. Tax Cut and Jobs Act ("Tax Reform") of $206.4 million, primarily due to the remeasurement of our deferred tax balances to the new 21% corporate income tax rate. Excluding the impact of Tax Reform, the Company’s 2017 net income would have been $287.3 million and net earnings per basic and diluted share of $10.68 and $10.65, respectively.
|
|
|
December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Statutory capital and surplus
|
|
|
|
|
||||
Life insurance entities
|
|
$
|
1,989,586
|
|
|
$
|
2,141,573
|
|
Property and casualty insurance entities
|
|
1,183,913
|
|
|
1,162,761
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Statutory net income
|
|
|
|
|
|
|
||||||
Life insurance entities
|
|
$
|
59,909
|
|
|
$
|
46,820
|
|
|
$
|
82,101
|
|
Property and casualty insurance entities
|
|
66,680
|
|
|
72,267
|
|
|
48,378
|
|
•
|
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, independent agents and 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.
|
•
|
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.
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Total Assets
|
|
|
|
|
|
|
||||||
Life
|
|
$
|
6,263,366
|
|
|
$
|
6,101,458
|
|
|
$
|
5,921,208
|
|
Annuity
|
|
12,900,650
|
|
|
12,345,215
|
|
|
11,310,936
|
|
|||
Health
|
|
527,525
|
|
|
468,947
|
|
|
472,369
|
|
|||
Property and Casualty
|
|
2,216,628
|
|
|
2,189,515
|
|
|
2,046,303
|
|
|||
Corporate and other
|
|
5,004,184
|
|
|
5,281,629
|
|
|
4,782,406
|
|
|||
Total
|
|
$
|
26,912,353
|
|
|
$
|
26,386,764
|
|
|
$
|
24,533,222
|
|
|
|
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
|
|
|
|
Year ended December 31, 2016
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
Property
|
|
Corporate
|
|
|
||||||||||||
|
|
Life
|
|
Annuity
|
|
Health
|
|
& Casualty
|
|
& Other
|
|
Total
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
|
$
|
318,953
|
|
|
$
|
248,714
|
|
|
$
|
175,589
|
|
|
$
|
1,253,392
|
|
|
$
|
—
|
|
|
$
|
1,996,648
|
|
Other policy revenues
|
|
295,289
|
|
|
11,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
306,880
|
|
||||||
Net investment income
|
|
227,923
|
|
|
500,726
|
|
|
9,942
|
|
|
57,091
|
|
|
64,553
|
|
|
860,235
|
|
||||||
Net realized investment gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,940
|
|
|
28,940
|
|
||||||
Other income
|
|
2,067
|
|
|
3,161
|
|
|
17,488
|
|
|
4,588
|
|
|
7,944
|
|
|
35,248
|
|
||||||
Total premiums and other revenues
|
|
844,232
|
|
|
764,192
|
|
|
203,019
|
|
|
1,315,071
|
|
|
101,437
|
|
|
3,227,951
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Policyholder benefits
|
|
429,813
|
|
|
296,586
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
726,399
|
|
||||||
Claims incurred
|
|
—
|
|
|
—
|
|
|
132,390
|
|
|
883,219
|
|
|
—
|
|
|
1,015,609
|
|
||||||
Interest credited to policyholders' account balances
|
|
63,565
|
|
|
268,205
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
331,770
|
|
||||||
Commissions for acquiring and servicing policies
|
|
132,428
|
|
|
78,177
|
|
|
22,846
|
|
|
232,514
|
|
|
—
|
|
|
465,965
|
|
||||||
Other operating expenses
|
|
186,879
|
|
|
51,283
|
|
|
42,655
|
|
|
165,278
|
|
|
30,367
|
|
|
476,462
|
|
||||||
Change in deferred policy acquisition costs
|
|
3,887
|
|
|
(5,780
|
)
|
|
3,770
|
|
|
(725
|
)
|
|
—
|
|
|
1,152
|
|
||||||
Total benefits, losses and expenses
|
|
816,572
|
|
|
688,471
|
|
|
201,661
|
|
|
1,280,286
|
|
|
30,367
|
|
|
3,017,357
|
|
||||||
Income before federal income tax and other items
|
|
$
|
27,660
|
|
|
$
|
75,721
|
|
|
$
|
1,358
|
|
|
$
|
34,785
|
|
|
$
|
71,070
|
|
|
$
|
210,594
|
|
|
|
Qualified
|
|
Non-qualified
|
||||||||||||
|
|
December 31,
|
||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Reconciliation of benefit obligation
|
|
|
|
|
|
|
|
|
||||||||
Obligation at January 1,
|
|
$
|
386,672
|
|
|
$
|
402,150
|
|
|
$
|
104,166
|
|
|
$
|
111,382
|
|
Service cost
|
|
433
|
|
|
—
|
|
|
65
|
|
|
63
|
|
||||
Interest cost on projected benefit obligation
|
|
12,378
|
|
|
14,593
|
|
|
3,469
|
|
|
4,179
|
|
||||
Actuarial (gain) loss
|
|
(56,672
|
)
|
|
22,003
|
|
|
(1,631
|
)
|
|
5,069
|
|
||||
Benefits paid
|
|
(23,981
|
)
|
|
(52,074
|
)
|
|
(11,890
|
)
|
|
(16,527
|
)
|
||||
Obligation at December 31,
|
|
318,830
|
|
|
386,672
|
|
|
94,179
|
|
|
104,166
|
|
||||
Reconciliation of fair value of plan assets
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at January 1,
|
|
351,958
|
|
|
336,174
|
|
|
30,766
|
|
|
31,059
|
|
||||
Actual return on plan assets
|
|
(12,032
|
)
|
|
42,858
|
|
|
(1,152
|
)
|
|
4,000
|
|
||||
Employer contributions
|
|
60,000
|
|
|
25,000
|
|
|
8,901
|
|
|
12,234
|
|
||||
Benefits paid
|
|
(23,979
|
)
|
|
(52,074
|
)
|
|
(11,883
|
)
|
|
(16,527
|
)
|
||||
Fair value of plan assets at December 31,
|
|
375,947
|
|
|
351,958
|
|
|
26,632
|
|
|
30,766
|
|
||||
Funded status at December 31,
|
|
$
|
57,117
|
|
|
$
|
(34,714
|
)
|
|
$
|
(67,547
|
)
|
|
$
|
(73,400
|
)
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Service cost
|
|
$
|
499
|
|
|
$
|
63
|
|
|
$
|
59
|
|
Interest cost
|
|
15,846
|
|
|
18,772
|
|
|
20,690
|
|
|||
Expected return on plan assets
|
|
(24,164
|
)
|
|
(23,579
|
)
|
|
(22,013
|
)
|
|||
Amortization of net actuarial loss
|
|
8,560
|
|
|
23,832
|
|
|
12,680
|
|
|||
Net periodic benefit cost
|
|
$
|
741
|
|
|
$
|
19,088
|
|
|
$
|
11,416
|
|
|
|
Years ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
Actuarial gain
|
|
$
|
28,260
|
|
|
$
|
20,040
|
|
|
$
|
14,286
|
|
Deferred tax expense
|
|
(5,934
|
)
|
|
(4,209
|
)
|
|
(5,000
|
)
|
|||
Other comprehensive income, net of tax
|
|
$
|
22,326
|
|
|
$
|
15,831
|
|
|
$
|
9,286
|
|
|
|
Years ended December 31,
|
||||||
|
|
2018
|
|
2017
|
||||
Net actuarial loss
|
|
$
|
(68,653
|
)
|
|
$
|
(96,913
|
)
|
Deferred tax benefit
|
|
14,417
|
|
|
20,351
|
|
||
Amounts included in AOCI
|
|
$
|
(54,236
|
)
|
|
$
|
(76,562
|
)
|
|
|
Used for Net Benefit
Cost in Fiscal Year 1/1/2018 to 12/31/2018 |
|
Used for Benefit
Obligations as of 12/31/2018 |
||
Discount rate
|
|
3.44
|
%
|
|
4.50
|
%
|
Long-term rate of return
|
|
6.25
|
|
|
N/A
|
|
2019
|
|
$
|
41,558
|
|
2020
|
|
31,057
|
|
|
2021
|
|
33,098
|
|
|
2022
|
|
32,488
|
|
|
2023
|
|
30,768
|
|
|
2024-2028
|
|
139,897
|
|
|
|
December 31, 2018
|
||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
|
$
|
140,836
|
|
|
$
|
—
|
|
|
$
|
140,836
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
|
4,644
|
|
|
—
|
|
|
4,644
|
|
|
—
|
|
||||
Mutual fund
|
|
9,161
|
|
|
9,161
|
|
|
—
|
|
|
—
|
|
||||
Equity securities by sector
|
|
|
|
|
|
|
|
|
||||||||
Consumer goods
|
|
44,746
|
|
|
44,746
|
|
|
—
|
|
|
—
|
|
||||
Energy and utilities
|
|
23,844
|
|
|
23,844
|
|
|
—
|
|
|
—
|
|
||||
Finance
|
|
45,131
|
|
|
45,131
|
|
|
—
|
|
|
—
|
|
||||
Healthcare
|
|
31,259
|
|
|
31,259
|
|
|
—
|
|
|
—
|
|
||||
Industrials
|
|
16,033
|
|
|
16,033
|
|
|
—
|
|
|
—
|
|
||||
Information technology
|
|
47,226
|
|
|
47,226
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
28,963
|
|
|
28,963
|
|
|
—
|
|
|
—
|
|
||||
Commercial paper
|
|
6,836
|
|
|
—
|
|
|
6,836
|
|
|
—
|
|
||||
Unallocated group annuity contract
|
|
1,131
|
|
|
—
|
|
|
1,131
|
|
|
—
|
|
||||
Other
|
|
2,769
|
|
|
2,714
|
|
|
55
|
|
|
—
|
|
||||
Total
|
|
$
|
402,579
|
|
|
$
|
249,077
|
|
|
$
|
153,502
|
|
|
$
|
—
|
|
|
|
December 31, 2017
|
||||||||||||||
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Asset Category
|
|
|
|
|
|
|
|
|
||||||||
Corporate debt securities
|
|
$
|
93,051
|
|
|
$
|
—
|
|
|
$
|
93,051
|
|
|
$
|
—
|
|
Residential mortgage-backed securities
|
|
1,119
|
|
|
—
|
|
|
1,119
|
|
|
—
|
|
||||
Mutual fund
|
|
9,513
|
|
|
9,513
|
|
|
—
|
|
|
—
|
|
||||
Equity securities by sector
|
|
|
|
|
|
|
|
|
||||||||
Consumer goods
|
|
55,411
|
|
|
55,411
|
|
|
—
|
|
|
—
|
|
||||
Energy and utilities
|
|
26,693
|
|
|
26,693
|
|
|
—
|
|
|
—
|
|
||||
Finance
|
|
58,008
|
|
|
58,008
|
|
|
—
|
|
|
—
|
|
||||
Healthcare
|
|
30,214
|
|
|
30,214
|
|
|
—
|
|
|
—
|
|
||||
Industrials
|
|
20,141
|
|
|
20,141
|
|
|
—
|
|
|
—
|
|
||||
Information technology
|
|
46,520
|
|
|
46,520
|
|
|
—
|
|
|
—
|
|
||||
Other
|
|
31,545
|
|
|
31,545
|
|
|
—
|
|
|
—
|
|
||||
Commercial paper
|
|
7,152
|
|
|
—
|
|
|
7,152
|
|
|
—
|
|
||||
Unallocated group annuity contract
|
|
1,280
|
|
|
—
|
|
|
1,280
|
|
|
—
|
|
||||
Other
|
|
2,077
|
|
|
1,991
|
|
|
86
|
|
|
—
|
|
||||
Total
|
|
$
|
382,724
|
|
|
$
|
280,036
|
|
|
$
|
102,688
|
|
|
$
|
—
|
|
|
|
|
|
Dollar Amount of Transactions
|
|
Amount due to (from) American National
|
||||||||||||
|
|
|
|
Years ended December 31,
|
|
December 31,
|
||||||||||||
Related Party
|
|
Financial Statement Line Impacted
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gal-Tex Hotel Corporation
|
|
Mortgage loan on real estate
|
|
$
|
1,647
|
|
|
$
|
1,533
|
|
|
$
|
576
|
|
|
$
|
2,223
|
|
Gal-Tex Hotel Corporation
|
|
Net investment income
|
|
107
|
|
|
222
|
|
|
3
|
|
|
13
|
|
||||
Greer, Herz & Adams, LLP
|
|
Other operating expenses
|
|
11,173
|
|
|
10,181
|
|
|
(329
|
)
|
|
(386
|
)
|
|
|
Three months ended
|
||||||||||||||||||||||||||||||
|
|
March 31,
|
|
June 30,
|
|
September 30,
|
|
December 31,
|
||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
2018
|
|
2017*
|
||||||||||||||||
Total premiums and other revenues
|
|
$
|
803,375
|
|
|
$
|
779,797
|
|
|
$
|
952,071
|
|
|
$
|
834,093
|
|
|
$
|
1,052,236
|
|
|
$
|
872,750
|
|
|
$
|
518,700
|
|
|
$
|
924,360
|
|
Total benefits, losses and expenses
|
|
782,591
|
|
|
735,139
|
|
|
850,796
|
|
|
791,595
|
|
|
868,969
|
|
|
779,806
|
|
|
682,868
|
|
|
776,114
|
|
||||||||
Income (loss) before federal income tax and other items
|
|
20,784
|
|
|
44,658
|
|
|
101,275
|
|
|
42,498
|
|
|
183,267
|
|
|
92,944
|
|
|
(164,168
|
)
|
|
148,246
|
|
||||||||
Total provision (benefit) for federal income taxes*
|
|
1,189
|
|
|
13,735
|
|
|
21,957
|
|
|
13,524
|
|
|
19,219
|
|
|
37,183
|
|
|
(40,920
|
)
|
|
(157,437
|
)
|
||||||||
Equity in earnings of unconsolidated affiliates
|
|
(545
|
)
|
|
9,500
|
|
|
6,421
|
|
|
12,313
|
|
|
13,029
|
|
|
22,387
|
|
|
2,376
|
|
|
42,474
|
|
||||||||
Other components of net periodic pension benefit (costs), net of tax
|
|
(792
|
)
|
|
(1,232
|
)
|
|
(1,677
|
)
|
|
(5,588
|
)
|
|
(1,236
|
)
|
|
(1,545
|
)
|
|
3,133
|
|
|
(4,043
|
)
|
||||||||
Net income (loss)*
|
|
18,258
|
|
|
39,191
|
|
|
84,062
|
|
|
35,699
|
|
|
175,841
|
|
|
76,603
|
|
|
(117,739
|
)
|
|
344,114
|
|
||||||||
Net income (loss) attributable to noncontrolling interest, net of tax
|
|
(519
|
)
|
|
(649
|
)
|
|
(77
|
)
|
|
(260
|
)
|
|
2,377
|
|
|
3,334
|
|
|
(354
|
)
|
|
(469
|
)
|
||||||||
Net income (loss) attributable to American National*
|
|
$
|
18,777
|
|
|
$
|
39,840
|
|
|
$
|
84,139
|
|
|
$
|
35,959
|
|
|
$
|
173,464
|
|
|
$
|
73,269
|
|
|
$
|
(117,385
|
)
|
|
$
|
344,583
|
|
Earnings (loss) per share attributable to American National*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
|
$
|
0.70
|
|
|
$
|
1.48
|
|
|
$
|
3.13
|
|
|
$
|
1.34
|
|
|
$
|
6.45
|
|
|
$
|
2.72
|
|
|
$
|
(4.37
|
)
|
|
$
|
12.81
|
|
Diluted
|
|
0.70
|
|
|
1.48
|
|
|
3.12
|
|
|
1.33
|
|
|
6.44
|
|
|
2.72
|
|
|
(4.37
|
)
|
|
12.78
|
|
*
|
The fourth quarter of 2017 includes the impact of the U. S. Tax Cut and Jobs Act ("Tax Reform") of $206.4 million, in Q4 of 2017 primarily due to the remeasurement of our deferred tax balances to the new 21% corporate income tax rate. Excluding the impact of Tax Reform, the Company’s net income for the three months ended December 31, 2017 would have been $138.2 million and net earnings per basic and diluted share of $5.14 and $5.12, respectively.
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
|
Exhibit
Number
|
|
Basic Documents
|
|
|
|
|
||
|
|
|
|
Amended and Restated Bylaws (incorporated by reference to Exhibit No. 3.2 to the registrant’s Current Report on Form 8-K filed February 23, 2018).
|
|
|
|
|
|
Specimen copy of Stock Certificate (incorporated by reference to Exhibit No. 4.1 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009).
|
|
|
|
|
|
American National Insurance Company Amended and Restated 1999 Stock and Incentive Plan (the “Stock and Incentive Plan”)(incorporated by reference to Exhibit No. 10.2 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009).
|
|
|
|
|
|
Form of Restricted Stock Agreement for Directors under the Stock and Incentive Plan (incorporated by reference to Exhibit No. 10.3 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009).
|
|
|
|
|
|
Form of Restricted Stock Agreement for Employees under the Stock and Incentive Plan (incorporated by reference to Exhibit No. 10.4 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009).
|
|
|
|
|
|
American National Insurance Company Nonqualified Retirement Plan for Certain Salaried Employees (incorporated by reference to Exhibit No. 10.6 to the registrant’s Registration Statement on Form 10-12B filed April 10, 2009).
|
|
|
|
|
|
Amendment to the American National Insurance Company Nonqualified Retirement Plan for Certain Salaried Employees (incorporated by reference to Exhibit No. 10.2 to the registrant’s amended Current Report on Form 8-K/A filed on November 6, 2013).
|
|
|
|
|
|
American National Family of Companies Executive Supplemental Savings Plan (incorporated by reference to Exhibit No. 10.3 to the registrant’s amended Current Report on Form 8-K/A filed on November 6, 2013).
|
|
|
|
|
Amendments One and Two to the American National Family of Companies Executive Supplemental Savings plan (incorporated by reference to Exhibit No. 10.15 to the registrant’s Quarterly Report on Form 10-Q filed on May 8, 2015).
|
|
|
|
|
|
Form of Restricted Stock Unit Agreement for Executive Officers under the Stock and Incentive Plan (incorporated by reference to Exhibit No. 10.16 to the registrant’s Quarterly Report on Form 10-Q filed on May 8, 2015).
|
|
|
|
|
|
Form of Restricted Stock Unit Agreement for Directors under the Stock and Incentive Plan (filed herewith).
|
|
|
|
|
|
Subsidiaries (filed herewith).
|
|
|
|
|
|
Consent of KPMG LLP (filed herewith).
|
|
|
|
|
|
||
|
|
|
|
Certification of the principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
|
|
Certification of the principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
|
|
|
|
101
|
|
The following financial information from American National Insurance Company’s Annual Report on Form 10-K for the year ended December 31, 2018 formatted in extensible Business Reporting Language (“XBRL”): (i) Consolidated Statements of Financial Position, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to the Consolidated Financial Statements.
|
*
|
Management contract or compensatory plan or arrangement.
|
ITEM 16.
|
FORM 10-K SUMMARY
|
AMERICAN NATIONAL INSURANCE COMPANY
|
||
|
|
|
By:
|
|
/s/ James E. Pozzi
|
Name:
|
|
James E. Pozzi
|
Title:
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
Signature
|
|
Title
|
|
Date
|
|
|
|
||
/s/ James E. Pozzi
|
|
President and Chief Executive Officer
(Principal Executive Officer)
|
|
February 28, 2019
|
James E. Pozzi
|
|
|
||
|
|
|
||
/s/ Timothy A. Walsh
|
|
Executive Vice President,
CFO, Treasurer and ML and P&C Operations
(Principal Financial Officer)
|
|
February 28, 2019
|
Timothy A. Walsh
|
|
|
||
|
|
|
||
|
|
|
||
/s/ Michelle A. Gage
|
|
Vice President, and
Controller
|
|
February 28, 2019
|
Michelle A. Gage
|
|
|
||
|
|
|
||
/s/ William C. Ansell
|
|
Director
|
|
February 28, 2019
|
William C. Ansell
|
|
|
|
|
|
|
|
||
/s/ Arthur O. Dummer
|
|
Director
|
|
February 28, 2019
|
Arthur O. Dummer
|
|
|
|
|
|
|
|
||
/s/ Irwin M. Herz, Jr.
|
|
Director
|
|
February 28, 2019
|
Irwin M. Herz, Jr.
|
|
|
|
|
|
|
|
||
/s/ E. Douglas McLeod
|
|
Director
|
|
February 28, 2019
|
E. Douglas McLeod
|
|
|
|
|
|
|
|
||
/s/ Frances A. Moody-Dahlberg
|
|
Director
|
|
February 28, 2019
|
Frances A. Moody-Dahlberg
|
|
|
|
|
|
|
|
||
/s/ Ross R. Moody
|
|
Director
|
|
February 28, 2019
|
Ross R. Moody
|
|
|
|
|
|
|
|
||
/s/ James P. Payne
|
|
Director
|
|
February 28, 2019
|
James P. Payne
|
|
|
|
|
|
|
|
||
/s/ E.J. Pederson
|
|
Director
|
|
February 28, 2019
|
E.J. Pederson
|
|
|
|
|
|
|
|
||
/s/ James D. Yarbrough
|
|
Director
|
|
February 28, 2019
|
James D. Yarbrough
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
||||||||||
Type of Investment
|
|
Cost or
Amortized Cost
(1)
|
|
Estimated
Fair Value
|
|
Amount at Which
Shown in the
Balance Sheet
|
||||||
Fixed maturities
|
|
|
|
|
|
|
||||||
Bonds held-to-maturity
|
|
|
|
|
|
|
||||||
U.S. states and political subdivisions
|
|
$
|
245,360
|
|
|
$
|
250,899
|
|
|
$
|
245,360
|
|
Foreign governments
|
|
3,961
|
|
|
4,430
|
|
|
3,961
|
|
|||
Corporate debt securities
|
|
7,640,891
|
|
|
7,548,829
|
|
|
7,640,891
|
|
|||
Residential mortgage-backed securities
|
|
315,306
|
|
|
319,910
|
|
|
315,306
|
|
|||
Collateralized debt securities
|
|
5,214
|
|
|
5,285
|
|
|
5,214
|
|
|||
Other debt securities
|
|
717
|
|
|
731
|
|
|
717
|
|
|||
Bonds available-for-sale
|
|
|
|
|
|
|
||||||
U.S.treasury and government
|
|
28,304
|
|
|
28,399
|
|
|
28,399
|
|
|||
U.S. states and political subdivisions
|
|
848,228
|
|
|
862,030
|
|
|
862,030
|
|
|||
Foreign governments
|
|
5,000
|
|
|
6,210
|
|
|
6,210
|
|
|||
Corporate debt securities
|
|
5,345,579
|
|
|
5,283,818
|
|
|
5,283,818
|
|
|||
Residential mortgage-backed securities
|
|
31,735
|
|
|
31,662
|
|
|
31,662
|
|
|||
Collateralized debt securities
|
|
2,775
|
|
|
3,444
|
|
|
3,444
|
|
|||
Equity securities
|
|
|
|
|
|
|
||||||
Common stocks
|
|
|
|
|
|
|
||||||
Consumer goods
|
|
148,635
|
|
|
322,934
|
|
|
322,934
|
|
|||
Energy and utilities
|
|
91,725
|
|
|
121,756
|
|
|
121,756
|
|
|||
Finance
|
|
127,396
|
|
|
259,918
|
|
|
259,918
|
|
|||
Healthcare
|
|
68,731
|
|
|
206,399
|
|
|
206,399
|
|
|||
Industrials
|
|
43,871
|
|
|
136,601
|
|
|
136,601
|
|
|||
Information technology
|
|
118,495
|
|
|
346,384
|
|
|
346,384
|
|
|||
Other
|
|
95,669
|
|
|
115,193
|
|
|
115,193
|
|
|||
Preferred stocks
|
|
19,982
|
|
|
21,042
|
|
|
21,042
|
|
|||
Other Investments
|
|
|
|
|
|
|
||||||
Mortgage loans on real estate, net of allowance
|
|
5,124,707
|
|
|
5,049,468
|
|
|
5,124,707
|
|
|||
Investment real estate, net of accumulated depreciation
|
|
544,823
|
|
|
—
|
|
|
544,823
|
|
|||
Real estate acquired in satisfaction of debt
|
|
42,694
|
|
|
—
|
|
|
42,694
|
|
|||
Policy loans
|
|
376,254
|
|
|
376,254
|
|
|
376,254
|
|
|||
Options
(2)
|
|
108,803
|
|
|
148,006
|
|
|
1,142
|
|
|||
Other long-term investments
|
|
48,945
|
|
|
—
|
|
|
48,945
|
|
|||
Short-term investments
|
|
206,760
|
|
|
206,760
|
|
|
206,760
|
|
|||
Total investments
|
|
$
|
21,640,560
|
|
|
$
|
21,656,362
|
|
|
$
|
22,302,564
|
|
(1)
|
Original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and valuation write-downs and adjusted for amortization of premiums or accrual of discounts.
|
(2)
|
The amount shown in the Consolidated Statement of Financial Position represents options exposure net of collateral. See Note 7, Derivative Instruments, of the Notes to the Consolidated Financial Statements for more information.
|
|
|
December 31,
|
||||||
Condensed Statements of Financial Position
|
|
2018
|
|
2017
|
||||
ASSETS
|
|
|
|
|
||||
Fixed maturity securities
|
|
$
|
9,660,562
|
|
|
$
|
9,093,442
|
|
Equity securities
|
|
6,252
|
|
|
4,976
|
|
||
Mortgage loans on real estate, net of allowance
|
|
4,772,085
|
|
|
4,533,620
|
|
||
Other invested assets
|
|
1,487,383
|
|
|
1,961,343
|
|
||
Investment in subsidiaries
|
|
3,121,901
|
|
|
3,090,883
|
|
||
Deferred policy acquisition costs
|
|
1,224,752
|
|
|
1,116,862
|
|
||
Separate account assets
|
|
918,369
|
|
|
969,764
|
|
||
Prepaid pension
|
|
57,117
|
|
|
—
|
|
||
Other assets
|
|
763,458
|
|
|
873,470
|
|
||
Total assets
|
|
$
|
22,011,879
|
|
|
$
|
21,644,360
|
|
LIABILITIES
|
|
|
|
|
||||
Policy liabilities
|
|
$
|
4,373,398
|
|
|
$
|
4,207,467
|
|
Policyholders’ account balances
|
|
10,943,189
|
|
|
10,690,282
|
|
||
Separate account liabilities
|
|
918,369
|
|
|
969,764
|
|
||
Other liabilities
|
|
519,675
|
|
|
530,088
|
|
||
Total liabilities
|
|
$
|
16,754,631
|
|
|
$
|
16,397,601
|
|
EQUITY
|
|
|
|
|
||||
Common stock
|
|
30,832
|
|
|
30,832
|
|
||
Additional paid-in capital
|
|
20,694
|
|
|
19,193
|
|
||
Accumulated other comprehensive income
|
|
(99,738
|
)
|
|
642,216
|
|
||
Retained earnings
|
|
5,413,952
|
|
|
4,656,134
|
|
||
Treasury stock, at cost
|
|
(108,492
|
)
|
|
(101,616
|
)
|
||
Total equity
|
|
5,257,248
|
|
|
5,246,759
|
|
||
Total liabilities and equity
|
|
$
|
22,011,879
|
|
|
$
|
21,644,360
|
|
|
|
Years ended December 31,
|
||||||||||
Condensed Statements of Operations
|
|
2018
|
|
2017
|
|
2016
|
||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
||||||
Premiums and other policy revenues
|
|
$
|
943,071
|
|
|
$
|
889,346
|
|
|
$
|
987,994
|
|
Net investment income
|
|
686,569
|
|
|
794,277
|
|
|
713,589
|
|
|||
Net realized investment gains
|
|
2,053
|
|
|
21,052
|
|
|
16,111
|
|
|||
Other-than-temporary impairments
|
|
(1,243
|
)
|
|
(6,105
|
)
|
|
(10
|
)
|
|||
Net losses on equity securities
|
|
(208
|
)
|
|
—
|
|
|
—
|
|
|||
Other income
|
|
19,028
|
|
|
17,558
|
|
|
15,944
|
|
|||
Total premiums and other revenues
|
|
1,649,270
|
|
|
1,716,128
|
|
|
1,733,628
|
|
|||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
||||||
Policyholder benefits
|
|
716,959
|
|
|
682,707
|
|
|
749,179
|
|
|||
Other operating expenses
|
|
773,329
|
|
|
871,935
|
|
|
843,500
|
|
|||
Total benefits, losses and expenses
|
|
1,490,288
|
|
|
1,554,642
|
|
|
1,592,679
|
|
|||
Income before federal income tax and other items
|
|
158,982
|
|
|
161,486
|
|
|
140,949
|
|
|||
Provision (benefit) for federal income taxes
|
|
28,308
|
|
|
(53,728
|
)
|
|
52,336
|
|
|||
Equity in earnings of subsidiaries, net of tax
|
|
24,789
|
|
|
286,579
|
|
|
95,356
|
|
|||
Other components of net periodic pension costs, net of tax
|
|
3,532
|
|
|
(8,142
|
)
|
|
(2,966
|
)
|
|||
Net income attributable to American National
|
|
$
|
158,995
|
|
|
$
|
493,651
|
|
|
$
|
181,003
|
|
|
|
Years ended December 31,
|
||||||||||
Condensed Statements of Cash Flows
|
|
2018
|
|
2017
|
|
2016
|
||||||
OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net income
|
|
$
|
158,995
|
|
|
$
|
493,651
|
|
|
$
|
181,003
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
||||||
Net realized investments gains
|
|
(2,053
|
)
|
|
(21,052
|
)
|
|
(16,111
|
)
|
|||
Other-than-temporary impairments
|
|
1,243
|
|
|
6,105
|
|
|
10
|
|
|||
Accretion of premiums, discounts and loan origination fees
|
|
(11,236
|
)
|
|
(6,615
|
)
|
|
(7,675
|
)
|
|||
Net capitalized interest on policy loans and mortgage loans
|
|
(36,784
|
)
|
|
(31,853
|
)
|
|
(28,943
|
)
|
|||
Depreciation
|
|
30,492
|
|
|
32,991
|
|
|
28,510
|
|
|||
Interest credited to policyholders’ account balances
|
|
269,933
|
|
|
370,270
|
|
|
297,526
|
|
|||
Charges to policyholders’ account balances
|
|
(272,638
|
)
|
|
(236,336
|
)
|
|
(295,000
|
)
|
|||
Deferred federal income tax expense (benefit)
|
|
10,564
|
|
|
(57,337
|
)
|
|
89,089
|
|
|||
Equity in earnings of affiliates
|
|
(8,323
|
)
|
|
(10,840
|
)
|
|
(5,985
|
)
|
|||
Net income of subsidiaries
|
|
(16,466
|
)
|
|
(275,739
|
)
|
|
(89,371
|
)
|
|||
Distributions from equity method investments
|
|
5,319
|
|
|
—
|
|
|
—
|
|
|||
Changes in
|
|
|
|
|
|
|
||||||
Policyholder liabilities
|
|
165,931
|
|
|
179,497
|
|
|
186,472
|
|
|||
Deferred policy acquisition costs
|
|
(61,881
|
)
|
|
(66,219
|
)
|
|
8,684
|
|
|||
Reinsurance recoverables
|
|
(9,855
|
)
|
|
584
|
|
|
11,545
|
|
|||
Premiums due and other receivables
|
|
(1,302
|
)
|
|
12,343
|
|
|
(8,427
|
)
|
|||
Prepaid reinsurance premiums
|
|
3,213
|
|
|
3,392
|
|
|
88
|
|
|||
Accrued investment income
|
|
2,306
|
|
|
(3,138
|
)
|
|
351
|
|
|||
Current tax receivable/payable
|
|
79,168
|
|
|
1,725
|
|
|
(24,833
|
)
|
|||
Liability for retirement benefits
|
|
(64,824
|
)
|
|
(31,830
|
)
|
|
(29,678
|
)
|
|||
Fair value of option securities
|
|
50,299
|
|
|
(86,259
|
)
|
|
(27,534
|
)
|
|||
Fair value of equity securities
|
|
208
|
|
|
—
|
|
|
—
|
|
|||
Other, net
|
|
(17,943
|
)
|
|
20,437
|
|
|
(48,112
|
)
|
|||
Net cash provided by operating activities
|
|
274,366
|
|
|
293,777
|
|
|
221,609
|
|
|||
INVESTING ACTIVITIES
|
|
|
|
|
|
|
||||||
Proceeds from sale/maturity/prepayment of
|
|
|
|
|
|
|
||||||
Held-to-maturity securities
|
|
514,393
|
|
|
730,143
|
|
|
382,390
|
|
|||
Available-for-sale securities
|
|
296,545
|
|
|
315,030
|
|
|
282,834
|
|
|||
Equity securities
|
|
—
|
|
|
5,635
|
|
|
—
|
|
|||
Investment real estate
|
|
3,782
|
|
|
58,840
|
|
|
6,651
|
|
|||
Mortgage loans
|
|
799,413
|
|
|
794,011
|
|
|
547,553
|
|
|||
Policy loans
|
|
42,407
|
|
|
44,253
|
|
|
49,260
|
|
|||
Other invested assets
|
|
110,415
|
|
|
76,521
|
|
|
28,155
|
|
|||
Disposals of property and equipment
|
|
—
|
|
|
158
|
|
|
13,171
|
|
|||
Distributions from affiliates and subsidiaries
|
|
17,795
|
|
|
20,038
|
|
|
9,909
|
|
|||
Payment for the purchase/origination of
|
|
|
|
|
|
|
||||||
Held-to-maturity securities
|
|
(971,396
|
)
|
|
(824,831
|
)
|
|
(60,639
|
)
|
|||
Available-for-sale securities
|
|
(535,233
|
)
|
|
(345,677
|
)
|
|
(159,534
|
)
|
|||
Equity securities
|
|
(1,485
|
)
|
|
(128
|
)
|
|
(2,000
|
)
|
|||
Investment real estate
|
|
(23,790
|
)
|
|
(26,936
|
)
|
|
(31,234
|
)
|
|||
Mortgage loans
|
|
(1,021,303
|
)
|
|
(1,117,320
|
)
|
|
(1,327,395
|
)
|
|||
Policy loans
|
|
(23,014
|
)
|
|
(22,978
|
)
|
|
(21,526
|
)
|
|||
Other invested assets
|
|
(67,914
|
)
|
|
(42,849
|
)
|
|
(65,965
|
)
|
|||
Additions to property and equipment
|
|
(10,767
|
)
|
|
(20,441
|
)
|
|
(39,856
|
)
|
|||
Contributions to unconsolidated affiliates
|
|
(95,091
|
)
|
|
(26,056
|
)
|
|
(40,404
|
)
|
|||
Change in short-term investments
|
|
360,837
|
|
|
(401,110
|
)
|
|
207,546
|
|
|||
Change in investment in subsidiaries
|
|
100,000
|
|
|
—
|
|
|
20,044
|
|
|||
Change in collateral held for derivatives
|
|
(63,069
|
)
|
|
84,325
|
|
|
22,789
|
|
|||
Other, net
|
|
191
|
|
|
15,751
|
|
|
17,167
|
|
|||
Net cash used in investing activities
|
|
(567,284
|
)
|
|
(683,621
|
)
|
|
(161,084
|
)
|
|||
FINANCING ACTIVITIES
|
|
|
|
|
|
|
||||||
Policyholders’ account deposits
|
|
1,513,478
|
|
|
1,732,494
|
|
|
1,287,366
|
|
|||
Policyholders’ account withdrawals
|
|
(1,243,641
|
)
|
|
(1,182,754
|
)
|
|
(1,229,039
|
)
|
|||
Dividends to stockholders
|
|
(88,228
|
)
|
|
(88,335
|
)
|
|
(87,741
|
)
|
|||
Net cash provided by (used in) financing activities
|
|
181,609
|
|
|
461,405
|
|
|
(29,414
|
)
|
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
(111,309
|
)
|
|
71,561
|
|
|
31,111
|
|
|||
Beginning of the period
|
|
262,901
|
|
|
191,340
|
|
|
160,229
|
|
|||
End of the period
|
|
$
|
151,592
|
|
|
$
|
262,901
|
|
|
$
|
191,340
|
|
Segment
|
|
Deferred
Policy
Acquisition
Cost
|
|
Future Policy
Benefits, Policyholders’
Account Balances,
Policy and
Contract Claims
and Other
Policyholder Funds
|
|
Unearned
Premiums
|
|
Premium
Revenue
|
|
Net
Investment
Income
(1)
|
|
Benefits,
Claims, Losses
and
Settlement
Expenses
|
|
Amortization
of Deferred
Policy
Acquisition
Costs
|
|
Other
Operating
Expenses
(2)
|
|
Premiums
Written
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Life
|
|
$
|
839,133
|
|
|
$
|
5,158,377
|
|
|
$
|
29,901
|
|
|
$
|
350,012
|
|
|
$
|
233,181
|
|
|
$
|
417,702
|
|
|
$
|
97,263
|
|
|
$
|
190,835
|
|
|
$
|
—
|
|
Annuity
|
|
499,588
|
|
|
12,372,418
|
|
|
—
|
|
|
231,027
|
|
|
467,788
|
|
|
290,611
|
|
|
57,468
|
|
|
46,859
|
|
|
—
|
|
|||||||||
Health
|
|
33,960
|
|
|
319,789
|
|
|
37,261
|
|
|
180,414
|
|
|
9,376
|
|
|
122,547
|
|
|
15,436
|
|
|
41,819
|
|
|
—
|
|
|||||||||
Property & Casualty
|
|
124,580
|
|
|
1,034,265
|
|
|
841,694
|
|
|
1,466,740
|
|
|
62,320
|
|
|
1,049,112
|
|
|
309,990
|
|
|
186,019
|
|
|
1,514,563
|
|
|||||||||
Corporate & Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85,702
|
|
|
—
|
|
|
—
|
|
|
31,479
|
|
|
—
|
|
|||||||||
Total
|
|
$
|
1,497,261
|
|
|
$
|
18,884,849
|
|
|
$
|
908,856
|
|
|
$
|
2,228,193
|
|
|
$
|
858,367
|
|
|
$
|
1,879,972
|
|
|
$
|
480,157
|
|
|
$
|
497,011
|
|
|
$
|
1,514,563
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Life
|
|
$
|
791,276
|
|
|
$
|
5,432,688
|
|
|
$
|
33,298
|
|
|
$
|
328,570
|
|
|
$
|
245,835
|
|
|
$
|
410,152
|
|
|
$
|
74,068
|
|
|
$
|
190,482
|
|
|
$
|
—
|
|
Annuity
|
|
426,497
|
|
|
11,533,813
|
|
|
—
|
|
|
222,207
|
|
|
573,789
|
|
|
270,970
|
|
|
74,750
|
|
|
44,486
|
|
|
—
|
|
|||||||||
Health
|
|
36,806
|
|
|
282,872
|
|
|
40,665
|
|
|
156,436
|
|
|
9,538
|
|
|
103,037
|
|
|
15,227
|
|
|
38,475
|
|
|
—
|
|
|||||||||
Property & Casualty
|
|
119,265
|
|
|
990,341
|
|
|
801,331
|
|
|
1,359,989
|
|
|
61,688
|
|
|
934,044
|
|
|
280,306
|
|
|
177,345
|
|
|
1,414,024
|
|
|||||||||
Corporate & Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,227
|
|
|
—
|
|
|
—
|
|
|
34,552
|
|
|
—
|
|
|||||||||
Total
|
|
$
|
1,373,844
|
|
|
$
|
18,239,714
|
|
|
$
|
875,294
|
|
|
$
|
2,067,202
|
|
|
$
|
966,077
|
|
|
$
|
1,718,203
|
|
|
$
|
444,351
|
|
|
$
|
485,340
|
|
|
$
|
1,414,024
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Life
|
|
$
|
745,840
|
|
|
$
|
4,937,467
|
|
|
$
|
35,133
|
|
|
$
|
318,953
|
|
|
$
|
227,923
|
|
|
$
|
429,813
|
|
|
$
|
112,712
|
|
|
$
|
186,879
|
|
|
$
|
—
|
|
Annuity
|
|
394,208
|
|
|
10,821,889
|
|
|
—
|
|
|
248,714
|
|
|
500,726
|
|
|
296,586
|
|
|
71,381
|
|
|
51,283
|
|
|
—
|
|
|||||||||
Health
|
|
40,620
|
|
|
272,802
|
|
|
43,155
|
|
|
175,589
|
|
|
9,942
|
|
|
132,390
|
|
|
14,973
|
|
|
42,655
|
|
|
—
|
|
|||||||||
Property & Casualty
|
|
113,775
|
|
|
935,998
|
|
|
745,650
|
|
|
1,253,392
|
|
|
57,091
|
|
|
883,219
|
|
|
262,299
|
|
|
165,278
|
|
|
1,282,876
|
|
|||||||||
Corporate & Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,553
|
|
|
—
|
|
|
—
|
|
|
30,367
|
|
|
—
|
|
|||||||||
Total
|
|
$
|
1,294,443
|
|
|
$
|
16,968,156
|
|
|
$
|
823,938
|
|
|
$
|
1,996,648
|
|
|
$
|
860,235
|
|
|
$
|
1,742,008
|
|
|
$
|
461,365
|
|
|
$
|
476,462
|
|
|
$
|
1,282,876
|
|
(1)
|
Net investment income from fixed income assets (bonds and mortgage loans on real estate) is allocated to insurance lines based on the funds generated by each line at the average yield available from these fixed income assets at the time such funds become available. Net investment income from policy loans is allocated to the insurance lines according to the amount of loans made by each line. Net investment income from all other assets is allocated to the insurance lines as necessary to support the equity assigned to that line with the remainder allocated to capital & surplus.
|
(2)
|
Identifiable expenses are charged directly to the appropriate line of business. The remaining expenses are allocated to the lines based upon various factors including premium ratio within the respective lines.
|
|
|
Direct
Amount
|
|
Ceded to
Other
Companies
|
|
Assumed
from Other
Companies
|
|
Net
Amount
|
|
Percentage of
Amount
Assumed to Net
|
|||||||||
Years Ended December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
110,125,270
|
|
|
$
|
26,601,422
|
|
|
$
|
230,845
|
|
|
$
|
83,754,693
|
|
|
0.3
|
%
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life and annuity
|
|
$
|
684,399
|
|
|
$
|
103,749
|
|
|
$
|
389
|
|
|
$
|
581,039
|
|
|
0.1
|
|
Health
|
|
209,109
|
|
|
303,623
|
|
|
274,928
|
|
|
180,414
|
|
|
152.4
|
|
||||
Property and casualty
|
|
1,606,076
|
|
|
150,184
|
|
|
10,848
|
|
|
1,466,740
|
|
|
0.7
|
|
||||
Total premiums
|
|
$
|
2,499,584
|
|
|
$
|
557,556
|
|
|
$
|
286,165
|
|
|
$
|
2,228,193
|
|
|
12.8
|
|
Years Ended December 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
102,843,372
|
|
|
$
|
29,646,646
|
|
|
$
|
257,552
|
|
|
$
|
73,454,278
|
|
|
0.4
|
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life and annuity
|
|
$
|
654,086
|
|
|
$
|
104,599
|
|
|
$
|
1,290
|
|
|
$
|
550,777
|
|
|
0.2
|
|
Health
|
|
194,516
|
|
|
253,110
|
|
|
215,030
|
|
|
156,436
|
|
|
137.5
|
|
||||
Property and casualty
|
|
1,492,486
|
|
|
143,230
|
|
|
10,733
|
|
|
1,359,989
|
|
|
0.8
|
|
||||
Total premiums
|
|
$
|
2,341,088
|
|
|
$
|
500,939
|
|
|
$
|
227,053
|
|
|
$
|
2,067,202
|
|
|
11.0
|
|
Years Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in-force
|
|
$
|
95,439,425
|
|
|
$
|
29,980,485
|
|
|
$
|
181,655
|
|
|
$
|
65,640,595
|
|
|
0.3
|
|
Premiums earned
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Life and annuity
|
|
$
|
669,607
|
|
|
$
|
104,128
|
|
|
$
|
2,188
|
|
|
$
|
567,667
|
|
|
0.4
|
|
Health
|
|
227,691
|
|
|
235,807
|
|
|
183,705
|
|
|
175,589
|
|
|
104.6
|
|
||||
Property and casualty
|
|
1,349,297
|
|
|
104,922
|
|
|
9,017
|
|
|
1,253,392
|
|
|
0.7
|
|
||||
Total premiums
|
|
$
|
2,246,595
|
|
|
$
|
444,857
|
|
|
$
|
194,910
|
|
|
$
|
1,996,648
|
|
|
9.8
|
%
|
|
|
|
|
Additions
|
|
Deductions
|
|
|
||||||||||||
|
|
Balance at
Beginning of
Period
|
|
Charged to costs
and expenses
|
|
Written off
|
|
Change in
Estimate
|
|
Balance at
End of
Period
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment valuation allowances:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans on real estate
|
|
$
|
18,866
|
|
|
$
|
4,798
|
|
|
$
|
(2,331
|
)
|
|
$
|
—
|
|
|
$
|
21,333
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment valuation allowances:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans on real estate
|
|
$
|
12,490
|
|
|
$
|
7,700
|
|
|
$
|
(1,324
|
)
|
|
$
|
—
|
|
|
$
|
18,866
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment valuation allowances:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans on real estate
|
|
$
|
12,895
|
|
|
$
|
(405
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
12,490
|
|
(i)
|
“Retirement” shall occur on the effective date of the Recipient’s retirement as a director or advisory director of the Company at or after attaining the age of 65.
|
(ii)
|
“Death” shall be the date of the Recipient’s death.
|
(iii)
|
“Disability” shall be the date the Company determines, in good faith, that, by reason of a physical or mental condition which has existed for thirty days or more, the Recipient is no longer able to perform the material duties of a director or an advisory director of the Company.
|
Beneficiary
|
|
Street Address
|
|
City
|
|
State
|
|
Zip
|
|
(i)
|
Any Restricted Stock Units that become Vested RSUs shall be settled as soon as administratively practicable after the date such Restricted Stock Units become Vested RSUs. Subject to the provisions of Sections 2(d)(ii) and (iii) below, Restricted Stock Units shall be settled by the Company by delivering a number of shares (“Shares”) of the Company’s common stock, par value $1.00 per share, to the Recipient equal to the number of Vested RSUs. The Company may issue the Shares either in certificated or uncertificated form registered in the name of the Recipient. Delivery of the Shares may be made to the Recipient in person at the Company’s home office or to the Recipient’s last address reflected in the records of the Company. Neither the Recipient nor any of the Recipient’s successors, heirs, assigns or personal representatives shall have any further rights or interests in the Vested RSUs which are settled in accordance with this Section 2(d). Notwithstanding anything herein to the contrary, the Company has no obligation to deliver any Shares if counsel to the Company determines that such delivery would violate any applicable law or any rule or regulation of any governmental authority or any rule or regulation of, or agreement of the
|
(ii)
|
Recipient may elect to have all or a specified portion of the Vested RSUs settled and converted to cash by completing, signing and delivering to the Company a “Settlement Option Notice,” as described herein, in the manner and by the deadline prescribed by the Settlement Option Notice. The Company shall provide Recipient a Settlement Option Notice prior to the settlement of any Vested RSUs. The Settlement Option Notice will provide options for Recipient to elect to receive all or certain portions specified in the Settlement Option Notice of the Vested RSUs in cash. Vested RSUs converted to cash as described in this Section 2(d) will be converted at Fair Market Value, as defined in the Plan, on the date on which the Restricted Stock Units vest.
|
(iii)
|
Unless the Recipient provides otherwise in the Settlement Option Notice, the Company shall withhold all federal taxes, and may withhold any state, local and other taxes, applicable to the vesting and settlement of Vested RSUs at the time of such settlement. Such withholding shall be at rates required by and otherwise in accordance with applicable laws and regulations. Unless Recipient provides otherwise in the Settlement Option Notice, the Company shall obtain the cash necessary for such withholding by reducing the number of Vested RSUs settled and converting to cash those Vested RSUs which remain unsettled. If the Company’s calculation of the number of Vested RSUs necessary to satisfy the tax withholding obligations results in a fractional number of Vested RSUs, the number of Shares to be issued shall be rounded down to the nearest whole number and the number of Vested RSUs to be used to provide cash for the withholding taxes shall be rounded up to the nearest whole number.
|
Name of Subsidiary
|
Jurisdiction of Incorporation or Organization
|
|
|
Alternative Benefit Management, Inc.
|
Nevada
|
American National Administrators, Inc.
|
Texas
|
American National County Mutual Insurance Company
1
|
Texas
|
American National General Insurance Company
|
Missouri
|
American National Insurance Service Company
|
Missouri
|
American National Life Insurance Company of Texas
|
Texas
|
American National Life Insurance Company of New York
|
New York
|
American National Lloyds Insurance Company
2
|
Texas
|
American National Holdings, Inc.
|
Nevada
|
American National Property and Casualty Company
|
Missouri
|
American National Registered Investment Advisor, Inc.
|
Texas
|
ANICO Eagle, LLC
|
Texas
|
ANICO Eagle 99, LLC
|
Texas
|
ANICO Financial Services, Inc.
|
Texas
|
AN/CAN Investments, Inc.
|
Canada
|
ANDV 97, LLC.
|
Texas
|
ANH20, Inc.
|
Texas
|
ANIND TX, LLC.
|
Texas
|
ANPAC Lloyds Insurance Management, Inc.
|
Texas
|
ANPAC Louisiana Insurance Company
|
Louisiana
|
ANPIN, L.P.
|
Texas
|
ANREINV, LLC.
|
Texas
|
ANTAC, LLC.
|
Texas
|
Baron Phoenix Apts, LLC
|
Arizona
|
Chipman Development Corporation
|
Canada
|
Eagle AN, L.P.
|
Texas
|
Eagle Ind., L.P.
|
Texas
|
Farm Family Casualty Insurance Company
|
New York
|
Galveston Island Water Park, L.P.
|
Texas
|
Garden State Life Insurance Company
|
Texas
|
Germann Road Land Development, LLC
|
Colorado
|
Pacific Property and Casualty Company
|
California
|
PCO Battery Brooke Parkway, L.P.
|
Virginia
|
South Shore Harbour Development, LLC
|
Texas
|
Standard Life and Accident Insurance Company
|
Texas
|
Standard Plus, Inc.
|
Texas
|
United Farm Family Insurance Company
|
New York
|
|
/s/ James E. Pozzi
|
James E. Pozzi
|
President and Chief Executive Officer
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(Principal Executive Officer)
|
|
Date: February 28, 2019
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/s/ Timothy A. Walsh
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Timothy A. Walsh
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Executive Vice President,
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CFO, Treasurer and ML and P&C Operations
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(Principal Financial Officer)
|
|
Date: February 28, 2019
|
/s/ James E. Pozzi
|
James E. Pozzi
|
President and Chief Executive Officer
|
(Principal Executive Officer)
|
|
/s/ Timothy A. Walsh
|
Timothy A. Walsh
|
Executive Vice President,
|
CFO, Treasurer and ML and P&C Operations
|
(Principal Financial Officer)
|