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☒
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Quarterly 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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Title of Each Class
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Trading Symbol
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Name of Each Exchange on which Registered
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Common Stock, par value $1.00
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ANAT
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NASDAQ
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Large accelerated filer
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☒
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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 2.
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ITEM 3.
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ITEM 4.
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ITEM 1.
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ITEM 1A.
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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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June 30, 2019
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December 31, 2018
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||||
ASSETS
|
|
|
|
||||
Fixed maturity, bonds held-to-maturity, at amortized cost (Fair value $8,668,599 and $8,130,084)
|
$
|
8,394,157
|
|
|
$
|
8,211,449
|
|
Fixed maturity, bonds available-for-sale, at fair value (Amortized cost $6,609,357 and $6,261,621)
|
6,842,917
|
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6,215,563
|
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||
Equity securities, at fair value (Cost $685,095 and $714,504)
|
1,672,394
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1,530,228
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||
Mortgage loans on real estate, net of allowance
|
5,014,710
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5,124,707
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Policy loans
|
377,669
|
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376,254
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Investment real estate, net of accumulated depreciation of $280,597 and $267,920
|
582,756
|
|
|
587,516
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|
||
Short-term investments
|
597,183
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|
|
206,760
|
|
||
Other invested assets
|
54,018
|
|
|
50,087
|
|
||
Total investments
|
23,535,804
|
|
|
22,302,564
|
|
||
Cash and cash equivalents
|
312,835
|
|
|
268,164
|
|
||
Investments in unconsolidated affiliates
|
622,587
|
|
|
571,897
|
|
||
Accrued investment income
|
197,574
|
|
|
188,630
|
|
||
Reinsurance recoverables
|
437,152
|
|
|
427,475
|
|
||
Prepaid reinsurance premiums
|
50,994
|
|
|
53,622
|
|
||
Premiums due and other receivables
|
364,018
|
|
|
345,705
|
|
||
Deferred policy acquisition costs
|
1,486,347
|
|
|
1,497,261
|
|
||
Property and equipment, net of accumulated depreciation of $245,609 and $236,922
|
106,694
|
|
|
109,472
|
|
||
Current tax receivable
|
—
|
|
|
8,855
|
|
||
Prepaid pension
|
61,587
|
|
|
57,117
|
|
||
Other assets
|
181,627
|
|
|
163,222
|
|
||
Separate account assets
|
1,028,961
|
|
|
918,369
|
|
||
Total assets
|
$
|
28,386,180
|
|
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$
|
26,912,353
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LIABILITIES
|
|
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|
||||
Future policy benefits
|
|
|
|
||||
Life
|
$
|
3,065,431
|
|
|
$
|
3,047,421
|
|
Annuity
|
1,569,789
|
|
|
1,524,006
|
|
||
Health
|
50,372
|
|
|
51,347
|
|
||
Policyholders’ account balances
|
13,089,053
|
|
|
12,461,833
|
|
||
Policy and contract claims
|
1,477,780
|
|
|
1,481,294
|
|
||
Unearned premium reserve
|
953,324
|
|
|
908,856
|
|
||
Other policyholder funds
|
348,638
|
|
|
318,948
|
|
||
Liability for retirement benefits
|
72,448
|
|
|
73,631
|
|
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Notes payable
|
159,577
|
|
|
137,963
|
|
||
Deferred tax liabilities, net
|
373,700
|
|
|
264,185
|
|
||
Current tax payable
|
1,370
|
|
|
—
|
|
||
Other liabilities
|
428,155
|
|
|
452,985
|
|
||
Separate account liabilities
|
1,028,961
|
|
|
918,369
|
|
||
Total liabilities
|
22,618,598
|
|
|
21,640,838
|
|
||
EQUITY
|
|
|
|
||||
American National stockholders’ equity:
|
|
|
|
||||
Common stock, $1.00 par value, - Authorized 50,000,000, Issued 30,832,449 and 30,832,449
Outstanding 26,887,200 and 26,885,449 shares |
30,832
|
|
|
30,832
|
|
||
Additional paid-in capital
|
20,971
|
|
|
20,694
|
|
||
Accumulated other comprehensive income (loss)
|
86,852
|
|
|
(99,738
|
)
|
||
Retained earnings
|
5,727,649
|
|
|
5,413,952
|
|
||
Treasury stock, at cost
|
(108,469
|
)
|
|
(108,492
|
)
|
||
Total American National stockholders’ equity
|
5,757,835
|
|
|
5,257,248
|
|
||
Noncontrolling interest
|
9,747
|
|
|
14,267
|
|
||
Total equity
|
5,767,582
|
|
|
5,271,515
|
|
||
Total liabilities and equity
|
$
|
28,386,180
|
|
|
$
|
26,912,353
|
|
|
Three months ended June 30,
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|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
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|
||||||||
Premiums
|
|
|
|
|
|
|
|
||||||||
Life
|
$
|
86,087
|
|
|
$
|
84,595
|
|
|
$
|
172,555
|
|
|
$
|
165,971
|
|
Annuity
|
56,222
|
|
|
67,228
|
|
|
96,129
|
|
|
137,844
|
|
||||
Health
|
42,224
|
|
|
48,870
|
|
|
80,905
|
|
|
89,885
|
|
||||
Property and casualty
|
371,739
|
|
|
360,047
|
|
|
742,920
|
|
|
712,020
|
|
||||
Other policy revenues
|
75,146
|
|
|
71,138
|
|
|
149,394
|
|
|
142,477
|
|
||||
Net investment income
|
257,730
|
|
|
246,741
|
|
|
550,076
|
|
|
455,410
|
|
||||
Net realized investment gains (losses)
|
(2,937
|
)
|
|
5,007
|
|
|
10
|
|
|
6,051
|
|
||||
Other-than-temporary impairments
|
(6,968
|
)
|
|
—
|
|
|
(6,968
|
)
|
|
—
|
|
||||
Net gains on equity securities
|
67,060
|
|
|
57,162
|
|
|
273,437
|
|
|
23,992
|
|
||||
Other income
|
10,374
|
|
|
11,283
|
|
|
21,912
|
|
|
21,796
|
|
||||
Total premiums and other revenues
|
956,677
|
|
|
952,071
|
|
|
2,080,370
|
|
|
1,755,446
|
|
||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
||||||||
Policyholder benefits
|
|
|
|
|
|
|
|
||||||||
Life
|
104,462
|
|
|
96,958
|
|
|
213,927
|
|
|
195,504
|
|
||||
Annuity
|
72,788
|
|
|
82,103
|
|
|
131,549
|
|
|
166,849
|
|
||||
Claims incurred
|
|
|
|
|
|
|
|
||||||||
Health
|
26,708
|
|
|
32,310
|
|
|
52,475
|
|
|
60,450
|
|
||||
Property and casualty
|
271,608
|
|
|
280,126
|
|
|
509,752
|
|
|
522,616
|
|
||||
Interest credited to policyholders’ account balances
|
123,687
|
|
|
105,731
|
|
|
264,921
|
|
|
176,276
|
|
||||
Commissions for acquiring and servicing policies
|
141,295
|
|
|
149,737
|
|
|
279,940
|
|
|
294,433
|
|
||||
Other operating expenses
|
129,533
|
|
|
123,947
|
|
|
263,143
|
|
|
254,341
|
|
||||
Change in deferred policy acquisition costs
|
(17,308
|
)
|
|
(20,116
|
)
|
|
(23,939
|
)
|
|
(37,082
|
)
|
||||
Total benefits, losses and expenses
|
852,773
|
|
|
850,796
|
|
|
1,691,768
|
|
|
1,633,387
|
|
||||
Income before federal income tax and other items
|
103,904
|
|
|
101,275
|
|
|
388,602
|
|
|
122,059
|
|
||||
Less: Provision for federal income taxes
|
|
|
|
|
|
|
|
||||||||
Current
|
14,231
|
|
|
15,638
|
|
|
28,011
|
|
|
13,533
|
|
||||
Deferred
|
7,717
|
|
|
6,319
|
|
|
61,314
|
|
|
9,613
|
|
||||
Total provision for federal income taxes
|
21,948
|
|
|
21,957
|
|
|
89,325
|
|
|
23,146
|
|
||||
Income after federal income tax
|
81,956
|
|
|
79,318
|
|
|
299,277
|
|
|
98,913
|
|
||||
Equity in earnings of unconsolidated affiliates
|
16,790
|
|
|
6,421
|
|
|
57,250
|
|
|
5,876
|
|
||||
Other components of net periodic pension costs, net of tax
|
(871
|
)
|
|
(1,677
|
)
|
|
(1,785
|
)
|
|
(2,469
|
)
|
||||
Net income
|
97,875
|
|
|
84,062
|
|
|
354,742
|
|
|
102,320
|
|
||||
Less: Net loss attributable to noncontrolling interest, net of tax
|
(965
|
)
|
|
(77
|
)
|
|
(2,315
|
)
|
|
(596
|
)
|
||||
Net income attributable to American National
|
$
|
98,840
|
|
|
$
|
84,139
|
|
|
$
|
357,057
|
|
|
$
|
102,916
|
|
Amounts available to American National common stockholders
|
|
|
|
|
|
|
|
||||||||
Earnings per share
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.68
|
|
|
$
|
3.13
|
|
|
$
|
13.28
|
|
|
$
|
3.83
|
|
Diluted
|
3.67
|
|
|
3.12
|
|
|
13.28
|
|
|
3.82
|
|
||||
Cash dividends to common stockholders
|
0.82
|
|
|
0.82
|
|
|
1.64
|
|
|
1.64
|
|
||||
Weighted average common shares outstanding
|
26,881,700
|
|
|
26,883,276
|
|
|
26,883,699
|
|
|
26,886,196
|
|
||||
Weighted average common shares outstanding and dilutive potential common shares
|
26,888,964
|
|
|
26,910,257
|
|
|
26,889,936
|
|
|
26,933,123
|
|
|
Three months ended June 30,
|
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
97,875
|
|
|
$
|
84,062
|
|
|
|
$
|
354,742
|
|
|
$
|
102,320
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
||||||||
Change in net unrealized gains (losses) on securities
|
98,360
|
|
|
(36,388
|
)
|
|
|
183,874
|
|
|
(127,721
|
)
|
||||
Foreign currency transaction and translation adjustments
|
746
|
|
|
(134
|
)
|
|
|
590
|
|
|
(500
|
)
|
||||
Defined benefit pension plan adjustment
|
1,495
|
|
|
1,601
|
|
|
|
2,911
|
|
|
2,390
|
|
||||
Total other comprehensive income (loss), net of tax
|
100,601
|
|
|
(34,921
|
)
|
|
|
187,375
|
|
|
(125,831
|
)
|
||||
Total comprehensive income (loss)
|
198,476
|
|
|
49,141
|
|
|
|
542,117
|
|
|
(23,511
|
)
|
||||
Less: Comprehensive loss attributable to noncontrolling interest
|
(965
|
)
|
|
(77
|
)
|
|
|
(2,315
|
)
|
|
(596
|
)
|
||||
Total comprehensive income (loss) attributable to American National
|
$
|
199,441
|
|
|
$
|
49,218
|
|
|
|
$
|
544,432
|
|
|
$
|
(22,915
|
)
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||
Balance at December 31, 2018
|
$
|
30,832
|
|
|
$
|
20,694
|
|
|
$
|
(99,738
|
)
|
|
$
|
5,413,952
|
|
|
$
|
(108,492
|
)
|
|
$
|
14,267
|
|
|
$
|
5,271,515
|
|
Reissuance of treasury shares
|
—
|
|
|
237
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
260
|
|
|||||||
Amortization of restricted stock
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||||
Cumulative effect of accounting change
|
—
|
|
|
—
|
|
|
(785
|
)
|
|
785
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
86,774
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86,774
|
|
|||||||
Net income attributable to American National
|
—
|
|
|
—
|
|
|
—
|
|
|
258,217
|
|
|
—
|
|
|
—
|
|
|
258,217
|
|
|||||||
Cash dividends to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,101
|
)
|
|
—
|
|
|
—
|
|
|
(22,101
|
)
|
|||||||
Contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
|||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(419
|
)
|
|
(419
|
)
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,350
|
)
|
|
(1,350
|
)
|
|||||||
Balance at March 31, 2019
|
$
|
30,832
|
|
|
$
|
20,951
|
|
|
$
|
(13,749
|
)
|
|
$
|
5,650,853
|
|
|
$
|
(108,469
|
)
|
|
$
|
12,501
|
|
|
$
|
5,592,919
|
|
Amortization of restricted stock
|
—
|
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
100,601
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100,601
|
|
|||||||
Net income attributable to American National
|
—
|
|
|
—
|
|
|
—
|
|
|
98,840
|
|
|
—
|
|
|
—
|
|
|
98,840
|
|
|||||||
Cash dividends to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,044
|
)
|
|
—
|
|
|
—
|
|
|
(22,044
|
)
|
|||||||
Contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
168
|
|
|
168
|
|
|||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,957
|
)
|
|
(1,957
|
)
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(965
|
)
|
|
(965
|
)
|
|||||||
Balance at June 30, 2019
|
$
|
30,832
|
|
|
$
|
20,971
|
|
|
$
|
86,852
|
|
|
$
|
5,727,649
|
|
|
$
|
(108,469
|
)
|
|
$
|
9,747
|
|
|
$
|
5,767,582
|
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Noncontrolling Interest
|
|
Total Equity
|
||||||||||||||
Balance at December 31, 2017
|
$
|
30,832
|
|
|
$
|
19,193
|
|
|
$
|
642,216
|
|
|
$
|
4,656,134
|
|
|
$
|
(101,616
|
)
|
|
$
|
9,012
|
|
|
$
|
5,255,771
|
|
Reissuance of treasury shares
|
—
|
|
|
675
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
745
|
|
|||||||
Amortization of restricted stock
|
—
|
|
|
201
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|||||||
Cumulative effect of accounting changes
|
—
|
|
|
—
|
|
|
(637,376
|
)
|
|
697,307
|
|
|
—
|
|
|
—
|
|
|
59,931
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(90,910
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(90,910
|
)
|
|||||||
Net income attributable to American National
|
—
|
|
|
—
|
|
|
—
|
|
|
18,777
|
|
|
—
|
|
|
—
|
|
|
18,777
|
|
|||||||
Cash dividends to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,089
|
)
|
|
—
|
|
|
—
|
|
|
(22,089
|
)
|
|||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(397
|
)
|
|
(397
|
)
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(519
|
)
|
|
(519
|
)
|
|||||||
Balance at March 31, 2018
|
$
|
30,832
|
|
|
$
|
20,069
|
|
|
$
|
(86,070
|
)
|
|
$
|
5,350,129
|
|
|
$
|
(101,546
|
)
|
|
$
|
8,096
|
|
|
$
|
5,221,510
|
|
Reissuance of treasury shares
|
—
|
|
|
498
|
|
|
—
|
|
|
—
|
|
|
(6,946
|
)
|
|
—
|
|
|
(6,448
|
)
|
|||||||
Amortization of restricted stock
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|||||||
Cumulative effect of accounting changes
|
—
|
|
|
—
|
|
|
10,257
|
|
|
(10,256
|
)
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
(34,921
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(34,921
|
)
|
|||||||
Net income attributable to American National
|
—
|
|
|
—
|
|
|
—
|
|
|
84,139
|
|
|
—
|
|
|
—
|
|
|
84,139
|
|
|||||||
Cash dividends to common stockholders
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,047
|
)
|
|
—
|
|
|
—
|
|
|
(22,047
|
)
|
|||||||
Contributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Distributions
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|
(173
|
)
|
|||||||
Net loss attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
(77
|
)
|
|||||||
Balance at June 30, 2018
|
$
|
30,832
|
|
|
$
|
20,650
|
|
|
$
|
(110,734
|
)
|
|
$
|
5,401,965
|
|
|
$
|
(108,492
|
)
|
|
$
|
7,846
|
|
|
$
|
5,242,067
|
|
|
Six months ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
354,742
|
|
|
$
|
102,320
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
||||
Net realized investment gains
|
(10
|
)
|
|
(6,051
|
)
|
||
Other-than-temporary impairments
|
6,968
|
|
|
—
|
|
||
Accretion of premiums, discounts and loan origination fees
|
(2,547
|
)
|
|
(4,736
|
)
|
||
Net capitalized interest on policy loans and mortgage loans
|
(18,397
|
)
|
|
(20,555
|
)
|
||
Depreciation
|
30,621
|
|
|
25,783
|
|
||
Interest credited to policyholders’ account balances
|
264,921
|
|
|
176,276
|
|
||
Charges to policyholders’ account balances
|
(149,394
|
)
|
|
(142,477
|
)
|
||
Deferred federal income tax expense
|
61,314
|
|
|
9,613
|
|
||
Equity in earnings of unconsolidated affiliates
|
(57,250
|
)
|
|
(5,876
|
)
|
||
Distributions from equity method investments
|
64,224
|
|
|
371
|
|
||
Changes in
|
|
|
|
||||
Policyholder liabilities
|
120,652
|
|
|
205,125
|
|
||
Deferred policy acquisition costs
|
(23,939
|
)
|
|
(37,082
|
)
|
||
Reinsurance recoverables
|
(9,677
|
)
|
|
(17,543
|
)
|
||
Premiums due and other receivables
|
(18,313
|
)
|
|
(46,680
|
)
|
||
Prepaid reinsurance premiums
|
2,627
|
|
|
7,835
|
|
||
Accrued investment income
|
(8,945
|
)
|
|
(3,559
|
)
|
||
Current tax receivable/payable
|
10,223
|
|
|
43,453
|
|
||
Liability for retirement benefits
|
(1,969
|
)
|
|
(2,479
|
)
|
||
Fair value of option securities
|
(89,608
|
)
|
|
(7,534
|
)
|
||
Fair value of equity securities
|
(273,437
|
)
|
|
(23,992
|
)
|
||
Other, net
|
(31,034
|
)
|
|
1,911
|
|
||
Net cash provided by operating activities
|
231,772
|
|
|
254,123
|
|
||
INVESTING ACTIVITIES
|
|
|
|
||||
Proceeds from sale/maturity/prepayment of
|
|
|
|
||||
Held-to-maturity securities
|
299,968
|
|
|
395,053
|
|
||
Available-for-sale securities
|
164,925
|
|
|
277,143
|
|
||
Equity securities
|
149,397
|
|
|
24,369
|
|
||
Investment real estate
|
6,713
|
|
|
11,577
|
|
||
Mortgage loans
|
405,768
|
|
|
219,153
|
|
||
Policy loans
|
22,873
|
|
|
28,747
|
|
||
Other invested assets
|
41,262
|
|
|
50,238
|
|
||
Disposals of property and equipment
|
69
|
|
|
—
|
|
||
Distributions from unconsolidated affiliates
|
37,309
|
|
|
10,105
|
|
||
Payment for the purchase/origination of
|
|
|
|
||||
Held-to-maturity securities
|
(647,367
|
)
|
|
(780,263
|
)
|
||
Available-for-sale securities
|
(355,920
|
)
|
|
(317,902
|
)
|
||
Equity securities
|
(18,280
|
)
|
|
(36,894
|
)
|
||
Investment real estate
|
(19,520
|
)
|
|
(23,640
|
)
|
||
Mortgage loans
|
(283,312
|
)
|
|
(561,586
|
)
|
||
Policy loans
|
(12,033
|
)
|
|
(12,886
|
)
|
||
Other invested assets
|
(38,768
|
)
|
|
(46,212
|
)
|
||
Additions to property and equipment
|
(9,494
|
)
|
|
(8,825
|
)
|
||
Contributions to unconsolidated affiliates
|
(111,620
|
)
|
|
(56,907
|
)
|
||
Change in short-term investments
|
(390,423
|
)
|
|
355,880
|
|
||
Change in collateral held for derivatives
|
83,169
|
|
|
(1,532
|
)
|
||
Other, net
|
1,397
|
|
|
(5,739
|
)
|
||
Net cash used in investing activities
|
(673,887
|
)
|
|
(480,121
|
)
|
||
FINANCING ACTIVITIES
|
|
|
|
||||
Policyholders’ account deposits
|
1,288,581
|
|
|
973,556
|
|
||
Policyholders’ account withdrawals
|
(776,888
|
)
|
|
(636,727
|
)
|
||
Change in notes payable
|
21,614
|
|
|
(728
|
)
|
||
Dividends to stockholders
|
(44,145
|
)
|
|
(44,136
|
)
|
||
Payments to noncontrolling interest
|
(2,376
|
)
|
|
(570
|
)
|
||
Net cash provided by financing activities
|
486,786
|
|
|
291,395
|
|
||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
44,671
|
|
|
65,397
|
|
||
Beginning of the period
|
268,164
|
|
|
375,837
|
|
||
End of the period
|
$
|
312,835
|
|
|
$
|
441,234
|
|
|
June 30, 2019
|
||||||||||||||
|
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
|
$
|
207,563
|
|
|
$
|
7,146
|
|
|
$
|
(52
|
)
|
|
$
|
214,657
|
|
Foreign governments
|
3,934
|
|
|
492
|
|
|
—
|
|
|
4,426
|
|
||||
Corporate debt securities
|
7,849,211
|
|
|
267,162
|
|
|
(10,580
|
)
|
|
8,105,793
|
|
||||
Residential mortgage-backed securities
|
205,408
|
|
|
8,109
|
|
|
(737
|
)
|
|
212,780
|
|
||||
Collateralized debt securities
|
127,892
|
|
|
2,944
|
|
|
(43
|
)
|
|
130,793
|
|
||||
Other debt securities
|
149
|
|
|
1
|
|
|
—
|
|
|
150
|
|
||||
Total bonds held-to-maturity
|
8,394,157
|
|
|
285,854
|
|
|
(11,412
|
)
|
|
8,668,599
|
|
||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
28,300
|
|
|
489
|
|
|
(44
|
)
|
|
28,745
|
|
||||
U.S. states and political subdivisions
|
1,063,172
|
|
|
42,859
|
|
|
—
|
|
|
1,106,031
|
|
||||
Foreign governments
|
5,000
|
|
|
1,361
|
|
|
—
|
|
|
6,361
|
|
||||
Corporate debt securities
|
5,479,173
|
|
|
203,949
|
|
|
(16,576
|
)
|
|
5,666,546
|
|
||||
Residential mortgage-backed securities
|
24,006
|
|
|
848
|
|
|
(169
|
)
|
|
24,685
|
|
||||
Collateralized debt securities
|
9,706
|
|
|
843
|
|
|
—
|
|
|
10,549
|
|
||||
Total bonds available-for-sale
|
6,609,357
|
|
|
250,349
|
|
|
(16,789
|
)
|
|
6,842,917
|
|
||||
Total investments in securities
|
$
|
15,003,514
|
|
|
$
|
536,203
|
|
|
$
|
(28,201
|
)
|
|
$
|
15,511,516
|
|
|
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
|
|
|
June 30, 2019
|
||||||||||||||
|
Bonds Held-to-Maturity
|
|
Bonds Available-for-Sale
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Due in one year or less
|
$
|
430,988
|
|
|
$
|
436,069
|
|
|
$
|
243,111
|
|
|
$
|
245,596
|
|
Due after one year through five years
|
4,033,584
|
|
|
4,153,917
|
|
|
3,211,961
|
|
|
3,313,108
|
|
||||
Due after five years through ten years
|
3,099,228
|
|
|
3,223,700
|
|
|
2,513,056
|
|
|
2,623,952
|
|
||||
Due after ten years
|
830,357
|
|
|
854,913
|
|
|
641,229
|
|
|
660,261
|
|
||||
Total
|
$
|
8,394,157
|
|
|
$
|
8,668,599
|
|
|
$
|
6,609,357
|
|
|
$
|
6,842,917
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Proceeds from sales of fixed maturity available-for-sale securities
|
$
|
—
|
|
|
$
|
42,932
|
|
|
$
|
285
|
|
|
$
|
90,113
|
|
Gross realized gains
|
—
|
|
|
11,123
|
|
|
—
|
|
|
12,547
|
|
||||
Gross realized losses
|
—
|
|
|
(32
|
)
|
|
(23
|
)
|
|
(587
|
)
|
|
Six months ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Bonds available-for-sale: change in unrealized gains (losses)
|
$
|
279,618
|
|
|
$
|
(210,413
|
)
|
Adjustments for
|
|
|
|
||||
Deferred policy acquisition costs
|
(34,853
|
)
|
|
41,962
|
|
||
Participating policyholders’ interest
|
(12,811
|
)
|
|
11,924
|
|
||
Deferred federal income tax benefit (expense)
|
(48,080
|
)
|
|
28,806
|
|
||
Change in net unrealized gains (losses) on debt securities, net of tax
|
$
|
183,874
|
|
|
$
|
(127,721
|
)
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Unrealized gains on equity securities
|
$
|
51,933
|
|
|
$
|
46,087
|
|
|
$
|
254,955
|
|
|
$
|
11,862
|
|
Net gains on equity securities sold
|
15,127
|
|
|
11,075
|
|
|
18,482
|
|
|
12,130
|
|
||||
Net gains on equity securities
|
$
|
67,060
|
|
|
$
|
57,162
|
|
|
$
|
273,437
|
|
|
$
|
23,992
|
|
|
June 30, 2019
|
||||||||||||||||||||||
|
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
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(52
|
)
|
|
$
|
2,613
|
|
|
$
|
(52
|
)
|
|
$
|
2,613
|
|
Corporate debt securities
|
(1,661
|
)
|
|
137,818
|
|
|
(8,919
|
)
|
|
436,089
|
|
|
(10,580
|
)
|
|
573,907
|
|
||||||
Residential mortgage-backed securities
|
(19
|
)
|
|
7,368
|
|
|
(718
|
)
|
|
36,651
|
|
|
(737
|
)
|
|
44,019
|
|
||||||
Collateralized debt securities
|
(39
|
)
|
|
10,771
|
|
|
(4
|
)
|
|
917
|
|
|
(43
|
)
|
|
11,688
|
|
||||||
Total bonds held-to-maturity
|
(1,719
|
)
|
|
155,957
|
|
|
(9,693
|
)
|
|
476,270
|
|
|
(11,412
|
)
|
|
632,227
|
|
||||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. treasury and government
|
—
|
|
|
—
|
|
|
(44
|
)
|
|
11,124
|
|
|
(44
|
)
|
|
11,124
|
|
||||||
U.S. states and political subdivisions
|
—
|
|
|
1,808
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,808
|
|
||||||
Corporate debt securities
|
(1,338
|
)
|
|
91,488
|
|
|
(15,238
|
)
|
|
371,471
|
|
|
(16,576
|
)
|
|
462,959
|
|
||||||
Residential mortgage-backed securities
|
—
|
|
|
—
|
|
|
(169
|
)
|
|
1,820
|
|
|
(169
|
)
|
|
1,820
|
|
||||||
Total bonds available-for-sale
|
(1,338
|
)
|
|
93,296
|
|
|
(15,451
|
)
|
|
384,415
|
|
|
(16,789
|
)
|
|
477,711
|
|
||||||
Total
|
$
|
(3,057
|
)
|
|
$
|
249,253
|
|
|
$
|
(25,144
|
)
|
|
$
|
860,685
|
|
|
$
|
(28,201
|
)
|
|
$
|
1,109,938
|
|
|
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
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
% of Fair
Value
|
|
Amortized
Cost
|
|
Estimated
Fair Value
|
|
% of Fair
Value
|
||||||||||
AAA
|
$
|
771,497
|
|
|
$
|
798,910
|
|
|
5.2
|
%
|
|
$
|
690,009
|
|
|
$
|
702,531
|
|
|
4.9
|
%
|
AA
|
1,302,861
|
|
|
1,348,881
|
|
|
8.7
|
|
|
1,326,947
|
|
|
1,336,380
|
|
|
9.3
|
|
||||
A
|
5,597,573
|
|
|
5,803,852
|
|
|
37.4
|
|
|
5,350,316
|
|
|
5,314,589
|
|
|
37.0
|
|
||||
BBB
|
6,873,228
|
|
|
7,109,627
|
|
|
45.8
|
|
|
6,584,478
|
|
|
6,507,212
|
|
|
45.4
|
|
||||
BB and below
|
458,355
|
|
|
450,246
|
|
|
2.9
|
|
|
521,320
|
|
|
484,935
|
|
|
3.4
|
|
||||
Total
|
$
|
15,003,514
|
|
|
$
|
15,511,516
|
|
|
100.0
|
%
|
|
$
|
14,473,070
|
|
|
$
|
14,345,647
|
|
|
100.0
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
||
Consumer goods
|
20.9
|
%
|
|
21.1
|
%
|
Energy and utilities
|
9.1
|
|
|
8.2
|
|
Finance
|
18.1
|
|
|
18.1
|
|
Healthcare
|
13.4
|
|
|
13.5
|
|
Industrials
|
8.0
|
|
|
9.0
|
|
Information technology
|
22.7
|
|
|
22.6
|
|
Other
|
7.8
|
|
|
7.5
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
||
East North Central
|
12.5
|
%
|
|
13.9
|
%
|
East South Central
|
2.6
|
|
|
2.8
|
|
Mountain
|
21.6
|
|
|
20.0
|
|
Pacific
|
17.3
|
|
|
16.2
|
|
South Atlantic
|
12.5
|
|
|
12.1
|
|
West South Central
|
26.0
|
|
|
27.2
|
|
Other
|
7.5
|
|
|
7.8
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
30-59 Days
|
|
60-89 Days
|
|
More Than
|
|
|
|
|
|
Total
|
|||||||||||||||
June 30, 2019
|
Past Due
|
|
Past Due
|
|
90 Days
|
|
Total
|
|
Current
|
|
Amount
|
|
Percent
|
|||||||||||||
Industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
571,320
|
|
|
$
|
571,320
|
|
|
11.3
|
%
|
Office
|
—
|
|
|
—
|
|
|
8,644
|
|
|
8,644
|
|
|
1,660,163
|
|
|
1,668,807
|
|
|
33.1
|
|
||||||
Retail
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
875,078
|
|
|
875,078
|
|
|
17.4
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,920,927
|
|
|
1,920,927
|
|
|
38.2
|
|
||||||
Total
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,644
|
|
|
$
|
8,644
|
|
|
$
|
5,027,488
|
|
|
$
|
5,036,132
|
|
|
100.0
|
%
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
(21,422
|
)
|
|
|
||||||||||||
Total, net of allowance
|
|
|
|
|
|
|
|
|
|
|
$
|
5,014,710
|
|
|
|
|||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
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
|
|
|
|
|
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
|
|||||||||||||||
Beginning balance at January 1, 2019
|
449
|
|
|
$
|
5,128,417
|
|
|
$
|
18,607
|
|
|
2
|
|
|
$
|
17,623
|
|
|
$
|
2,726
|
|
|
451
|
|
|
$
|
5,146,040
|
|
|
$
|
21,333
|
|
Change in allowance
|
—
|
|
|
—
|
|
|
(179
|
)
|
|
—
|
|
|
—
|
|
|
268
|
|
|
—
|
|
|
—
|
|
|
89
|
|
||||||
Net change in recorded investment
|
(9
|
)
|
|
(101,423
|
)
|
|
—
|
|
|
—
|
|
|
(8,485
|
)
|
|
—
|
|
|
(9
|
)
|
|
(109,908
|
)
|
|
—
|
|
||||||
Ending balance at June 30, 2019
|
440
|
|
|
$
|
5,026,994
|
|
|
$
|
18,428
|
|
|
2
|
|
|
$
|
9,138
|
|
|
$
|
2,994
|
|
|
442
|
|
|
$
|
5,036,132
|
|
|
$
|
21,422
|
|
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
|
2019
|
|
2018
|
||||||||||||||||||
|
|
Number of Loans
|
|
Recorded
Investment
Pre-Modification
|
|
Recorded
Investment
Post Modification
|
|
Number of Loans
|
|
Recorded
Investment
Pre-Modification
|
|
Recorded
Investment
Post Modification
|
||||||||||
Office
|
|
1
|
|
|
$
|
9,331
|
|
|
$
|
9,331
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Retail
|
|
2
|
|
|
40,249
|
|
|
40,249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Industrial
|
|
4
|
|
|
20,595
|
|
|
20,595
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
7
|
|
|
$
|
70,175
|
|
|
$
|
70,175
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||
Industrial
|
12.8
|
%
|
|
13.1
|
%
|
Office
|
38.0
|
|
|
37.3
|
|
Retail
|
37.6
|
|
|
37.0
|
|
Other
|
11.6
|
|
|
12.6
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
||
East North Central
|
5.6
|
%
|
|
5.6
|
%
|
East South Central
|
6.0
|
|
|
5.4
|
|
Mountain
|
12.0
|
|
|
11.9
|
|
Pacific
|
7.2
|
|
|
7.3
|
|
South Atlantic
|
15.1
|
|
|
13.8
|
|
West South Central
|
52.5
|
|
|
53.8
|
|
Other
|
1.6
|
|
|
2.2
|
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Investment real estate
|
$
|
135,235
|
|
|
$
|
141,843
|
|
Short-term investments
|
501
|
|
|
500
|
|
||
Cash and cash equivalents
|
10,697
|
|
|
10,392
|
|
||
Other receivables
|
3,721
|
|
|
3,939
|
|
||
Other assets
|
12,261
|
|
|
13,231
|
|
||
Total assets of consolidated VIEs
|
$
|
162,415
|
|
|
$
|
169,905
|
|
Notes payable
|
$
|
159,577
|
|
|
$
|
137,963
|
|
Other liabilities
|
4,755
|
|
|
7,145
|
|
||
Total liabilities of consolidated VIEs
|
$
|
164,332
|
|
|
$
|
145,108
|
|
Interest rate
|
|
Maturity
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
LIBOR
|
|
2020
|
|
$
|
10,842
|
|
|
$
|
10,834
|
|
4.18% fixed
|
|
2024
|
|
65,501
|
|
|
42,399
|
|
||
4% fixed
|
|
2022
|
|
83,234
|
|
|
84,730
|
|
||
Total
|
|
|
|
$
|
159,577
|
|
|
$
|
137,963
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss
|
|
Carrying
Amount
|
|
Maximum
Exposure
to Loss
|
||||||||
Investment in unconsolidated affiliates
|
$
|
322,901
|
|
|
$
|
322,901
|
|
|
$
|
330,730
|
|
|
$
|
330,730
|
|
Mortgage loans
|
623,141
|
|
|
623,141
|
|
|
633,533
|
|
|
633,533
|
|
||||
Accrued investment income
|
2,114
|
|
|
2,114
|
|
|
2,191
|
|
|
2,191
|
|
Derivatives Not Designated
as Hedging Instruments |
|
Location in the Consolidated
Statements of Financial Position |
|
June 30, 2019
|
|
December 31, 2018
|
|||||||||||||||||||
|
Number of
Instruments |
|
Notional
Amounts |
|
Estimated
Fair Value |
|
Number of
Instruments |
|
Notional
Amounts |
|
Estimated
Fair Value |
||||||||||||||
Equity-indexed options
|
|
Other invested assets
|
|
484
|
|
|
$
|
2,498,744
|
|
|
$
|
231,044
|
|
|
493
|
|
|
$
|
2,391,000
|
|
|
$
|
148,006
|
|
|
Equity-indexed embedded derivative
|
|
Policyholders’ account balances
|
|
96,014
|
|
|
2,455,001
|
|
|
695,676
|
|
|
90,440
|
|
|
2,327,769
|
|
|
596,075
|
|
Derivatives Not Designated
as Hedging Instruments
|
|
Location in the Consolidated
Statements of Operations
|
|
Gains (Losses) Recognized in Income on Derivatives
|
||||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||||
Equity-indexed options
|
|
Net investment income
|
|
$
|
23,125
|
|
|
$
|
21,778
|
|
|
$
|
89,610
|
|
|
$
|
7,633
|
|
Equity-indexed embedded derivative
|
|
Interest credited to policyholders’
account balances
|
|
(36,255
|
)
|
|
(17,599
|
)
|
|
(94,411
|
)
|
|
(4,163
|
)
|
|
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||
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
|
|
$
|
53,790
|
|
|
$
|
25,393
|
|
|
$
|
28,000
|
|
|
$
|
53,393
|
|
|
$
|
53,393
|
|
|
$
|
—
|
|
|
$
|
397
|
|
Credit Suisse
|
|
Baa2/BBB+
|
|
1,223
|
|
|
1,150
|
|
|
—
|
|
|
1,150
|
|
|
1,150
|
|
|
—
|
|
|
73
|
|
|||||||
Goldman-Sachs
|
|
A3/BBB+
|
|
909
|
|
|
670
|
|
|
—
|
|
|
670
|
|
|
670
|
|
|
—
|
|
|
239
|
|
|||||||
ING
|
|
Baa1/A-
|
|
28,382
|
|
|
12,830
|
|
|
16,000
|
|
|
28,830
|
|
|
28,382
|
|
|
448
|
|
|
—
|
|
|||||||
Morgan Stanley
|
|
A3/BBB+
|
|
26,538
|
|
|
17,516
|
|
|
9,000
|
|
|
26,516
|
|
|
26,516
|
|
|
—
|
|
|
22
|
|
|||||||
NATIXIS*
|
|
A1/A+
|
|
38,289
|
|
|
38,700
|
|
|
—
|
|
|
38,700
|
|
|
38,289
|
|
|
411
|
|
|
—
|
|
|||||||
SunTrust
|
|
Baa1/BBB+
|
|
48,347
|
|
|
32,350
|
|
|
17,000
|
|
|
49,350
|
|
|
48,320
|
|
|
1,030
|
|
|
27
|
|
|||||||
Wells Fargo
|
|
A2/A-
|
|
33,566
|
|
|
18,550
|
|
|
15,000
|
|
|
33,550
|
|
|
33,313
|
|
|
237
|
|
|
253
|
|
|||||||
Total
|
|
|
|
$
|
231,044
|
|
|
$
|
147,159
|
|
|
$
|
85,000
|
|
|
$
|
232,159
|
|
|
$
|
230,033
|
|
|
$
|
2,126
|
|
|
$
|
1,011
|
|
|
|
|
|
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
|
|
*
|
Includes collateral restrictions.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Bonds
|
$
|
150,907
|
|
|
$
|
142,529
|
|
|
$
|
298,464
|
|
|
$
|
282,624
|
|
Dividends on equity securities
|
9,015
|
|
|
10,898
|
|
|
17,307
|
|
|
20,338
|
|
||||
Mortgage loans
|
63,158
|
|
|
58,999
|
|
|
126,357
|
|
|
122,867
|
|
||||
Real estate
|
4,508
|
|
|
4,212
|
|
|
6,363
|
|
|
8,495
|
|
||||
Options
|
23,125
|
|
|
21,778
|
|
|
89,610
|
|
|
7,633
|
|
||||
Other invested assets
|
7,017
|
|
|
8,325
|
|
|
11,975
|
|
|
13,453
|
|
||||
Total
|
$
|
257,730
|
|
|
$
|
246,741
|
|
|
$
|
550,076
|
|
|
$
|
455,410
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Bonds
|
$
|
2,611
|
|
|
$
|
6,070
|
|
|
$
|
5,213
|
|
|
$
|
6,737
|
|
Mortgage loans
|
(544
|
)
|
|
(856
|
)
|
|
(89
|
)
|
|
(554
|
)
|
||||
Real estate
|
(2,728
|
)
|
|
(197
|
)
|
|
(2,886
|
)
|
|
(114
|
)
|
||||
Other invested assets
|
(2,276
|
)
|
|
(10
|
)
|
|
(2,228
|
)
|
|
(18
|
)
|
||||
Total
|
$
|
(2,937
|
)
|
|
$
|
5,007
|
|
|
$
|
10
|
|
|
$
|
6,051
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Bonds
|
$
|
(6,968
|
)
|
|
$
|
—
|
|
|
$
|
(6,968
|
)
|
|
$
|
—
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, bonds held-to-maturity
|
$
|
8,394,157
|
|
|
$
|
8,668,599
|
|
|
$
|
8,211,449
|
|
|
$
|
8,130,084
|
|
Fixed maturity securities, bonds available-for-sale
|
6,842,917
|
|
|
6,842,917
|
|
|
6,215,563
|
|
|
6,215,563
|
|
||||
Equity securities
|
1,672,394
|
|
|
1,672,394
|
|
|
1,530,228
|
|
|
1,530,228
|
|
||||
Equity-indexed options
|
231,044
|
|
|
231,044
|
|
|
148,006
|
|
|
148,006
|
|
||||
Mortgage loans on real estate, net of allowance
|
5,014,710
|
|
|
5,127,595
|
|
|
5,124,707
|
|
|
5,049,468
|
|
||||
Policy loans
|
377,669
|
|
|
377,669
|
|
|
376,254
|
|
|
376,254
|
|
||||
Short-term investments
|
597,183
|
|
|
597,183
|
|
|
206,760
|
|
|
206,760
|
|
||||
Separate account assets ($1,012,462 and $905,824 included in fair value hierarchy)
|
1,028,961
|
|
|
1,028,961
|
|
|
918,369
|
|
|
918,369
|
|
||||
Separately managed accounts
|
30,655
|
|
|
30,655
|
|
|
16,532
|
|
|
16,532
|
|
||||
Total financial assets
|
$
|
24,189,690
|
|
|
$
|
24,577,017
|
|
|
$
|
22,747,868
|
|
|
$
|
22,591,264
|
|
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Investment contracts
|
$
|
10,444,204
|
|
|
$
|
10,444,204
|
|
|
$
|
10,003,990
|
|
|
$
|
10,003,990
|
|
Embedded derivative liability for equity-indexed contracts
|
695,676
|
|
|
695,676
|
|
|
596,075
|
|
|
596,075
|
|
||||
Notes payable
|
159,577
|
|
|
159,577
|
|
|
137,963
|
|
|
137,963
|
|
||||
Separate account liabilities ($1,012,462 and $905,824 included in fair value hierarchy)
|
1,028,961
|
|
|
1,028,961
|
|
|
918,369
|
|
|
918,369
|
|
||||
Total financial liabilities
|
$
|
12,328,418
|
|
|
$
|
12,328,418
|
|
|
$
|
11,656,397
|
|
|
$
|
11,656,397
|
|
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 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 June 30, 2019 and December 31, 2018, the one year implied volatility used to estimate embedded derivative value was 13.3% and 23.2%, respectively.
|
|
Fair Value
|
|
|
|
Range
|
||||||||
|
June 30, 2019
|
|
December 31, 2018
|
|
Unobservable Input
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Indexed Annuities
|
$
|
680.5
|
|
|
$
|
592.8
|
|
|
Lapse Rate
|
|
1-70%
|
|
1-70%
|
|
|
|
|
|
Mortality Multiplier
|
|
90-100%
|
|
90-100%
|
||||
|
|
|
|
|
Equity Volatility
|
|
13-30%
|
|
19-26%
|
||||
Indexed Life
|
15.2
|
|
|
3.3
|
|
|
Equity Volatility
|
|
13-30%
|
|
19-26%
|
|
Assets and Liabilities Carried at Fair Value by Hierarchy Level as of June 30, 2019
|
||||||||||||||
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Fixed maturity securities, bonds available-for-sale
|
|
|
|
|
|
|
|
||||||||
U.S. treasury and government
|
$
|
28,745
|
|
|
$
|
—
|
|
|
$
|
28,745
|
|
|
$
|
—
|
|
U.S. states and political subdivisions
|
1,106,031
|
|
|
—
|
|
|
1,106,031
|
|
|
—
|
|
||||
Foreign governments
|
6,361
|
|
|
—
|
|
|
6,361
|
|
|
—
|
|
||||
Corporate debt securities
|
5,666,546
|
|
|
—
|
|
|
5,662,313
|
|
|
4,233
|
|
||||
Residential mortgage-backed securities
|
24,685
|
|
|
—
|
|
|
24,685
|
|
|
—
|
|
||||
Collateralized debt securities
|
10,549
|
|
|
—
|
|
|
10,549
|
|
|
—
|
|
||||
Total bonds available-for-sale
|
6,842,917
|
|
|
—
|
|
|
6,838,684
|
|
|
4,233
|
|
||||
Equity securities
|
|
|
|
|
|
|
|
||||||||
Common stock
|
1,651,398
|
|
|
1,651,285
|
|
|
—
|
|
|
113
|
|
||||
Preferred stock
|
20,996
|
|
|
20,996
|
|
|
—
|
|
|
—
|
|
||||
Total equity securities
|
1,672,394
|
|
|
1,672,281
|
|
|
—
|
|
|
113
|
|
||||
Options
|
231,044
|
|
|
—
|
|
|
—
|
|
|
231,044
|
|
||||
Short-term investments
|
597,183
|
|
|
—
|
|
|
597,183
|
|
|
—
|
|
||||
Separate account assets
|
1,012,462
|
|
|
253,053
|
|
|
759,409
|
|
|
—
|
|
||||
Total financial assets
|
$
|
10,356,000
|
|
|
$
|
1,925,334
|
|
|
$
|
8,195,276
|
|
|
$
|
235,390
|
|
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Embedded derivative liability for equity-indexed contracts
|
$
|
695,676
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
695,676
|
|
Separate account liabilities
|
1,012,462
|
|
|
253,053
|
|
|
759,409
|
|
|
—
|
|
||||
Total financial liabilities
|
$
|
1,708,138
|
|
|
$
|
253,053
|
|
|
$
|
759,409
|
|
|
$
|
695,676
|
|
|
Assets and Liabilities Carried at Fair Value by Hierarchy Level as of December 31, 2018
|
||||||||||||||
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
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
|
|
||||
Short-term investments
|
206,760
|
|
|
—
|
|
|
206,760
|
|
|
—
|
|
||||
Separate account assets
|
905,824
|
|
|
227,448
|
|
|
678,376
|
|
|
—
|
|
||||
Total financial assets
|
$
|
9,006,381
|
|
|
$
|
1,757,563
|
|
|
$
|
7,096,466
|
|
|
$
|
152,352
|
|
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Embedded derivative liability for equity-indexed contracts
|
$
|
596,075
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
596,075
|
|
Separate account liabilities
|
905,824
|
|
|
227,448
|
|
|
678,376
|
|
|
—
|
|
||||
Total financial liabilities
|
$
|
1,501,899
|
|
|
$
|
227,448
|
|
|
$
|
678,376
|
|
|
$
|
596,075
|
|
|
Level 3
|
||||||||||||||||||||||
|
Three months ended June 30, 2019
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||
|
Assets
|
|
Liability
|
|
Assets
|
|
Liability
|
||||||||||||||||
|
Investment
Securities
|
|
Equity-Indexed
Options
|
|
Embedded
Derivative
|
|
Investment
Securities
|
|
Equity-Indexed
Options
|
|
Embedded
Derivative
|
||||||||||||
Beginning balance at January 1, 2019
|
$
|
4,346
|
|
|
$
|
216,156
|
|
|
$
|
668,485
|
|
|
$
|
4,346
|
|
|
$
|
148,006
|
|
|
$
|
596,075
|
|
Net gain for derivatives included in net investment
income
|
—
|
|
|
23,125
|
|
|
—
|
|
|
—
|
|
|
89,610
|
|
|
—
|
|
||||||
Net change included in interest credited
|
—
|
|
|
—
|
|
|
36,255
|
|
|
—
|
|
|
—
|
|
|
94,411
|
|
||||||
Purchases, sales and settlements or maturities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases
|
—
|
|
|
21,412
|
|
|
—
|
|
|
—
|
|
|
38,768
|
|
|
—
|
|
||||||
Settlements or maturities
|
—
|
|
|
(29,649
|
)
|
|
—
|
|
|
—
|
|
|
(45,340
|
)
|
|
—
|
|
||||||
Premiums less benefits
|
—
|
|
|
—
|
|
|
(9,064
|
)
|
|
—
|
|
|
—
|
|
|
5,190
|
|
||||||
Ending balance at June 30, 2019
|
$
|
4,346
|
|
|
$
|
231,044
|
|
|
$
|
695,676
|
|
|
$
|
4,346
|
|
|
$
|
231,044
|
|
|
$
|
695,676
|
|
Beginning balance at January 1, 2018
|
$
|
—
|
|
|
$
|
204,308
|
|
|
$
|
535,641
|
|
|
$
|
—
|
|
|
$
|
220,190
|
|
|
$
|
512,526
|
|
Net gain for derivatives included in net investment
income
|
—
|
|
|
21,712
|
|
|
—
|
|
|
—
|
|
|
7,567
|
|
|
—
|
|
||||||
Net change included in interest credited
|
—
|
|
|
—
|
|
|
17,599
|
|
|
—
|
|
|
—
|
|
|
4,163
|
|
||||||
Purchases, sales and settlements or maturities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases
|
—
|
|
|
26,084
|
|
|
—
|
|
|
—
|
|
|
43,012
|
|
|
—
|
|
||||||
Settlements or maturities
|
—
|
|
|
(34,763
|
)
|
|
—
|
|
|
—
|
|
|
(53,428
|
)
|
|
—
|
|
||||||
Premiums less benefits
|
—
|
|
|
—
|
|
|
39,673
|
|
|
—
|
|
|
—
|
|
|
76,224
|
|
||||||
Ending balance at June 30, 2018
|
$
|
—
|
|
|
$
|
217,341
|
|
|
$
|
592,913
|
|
|
$
|
—
|
|
|
$
|
217,341
|
|
|
$
|
592,913
|
|
|
Life
|
|
Annuity
|
|
Health
|
|
Property
& Casualty
|
|
Total
|
||||||||||
Beginning balance at January 1, 2019
|
$
|
839,133
|
|
|
$
|
499,588
|
|
|
$
|
33,960
|
|
|
$
|
124,580
|
|
|
$
|
1,497,261
|
|
Additions
|
64,419
|
|
|
48,168
|
|
|
6,544
|
|
|
158,129
|
|
|
277,260
|
|
|||||
Amortization
|
(50,379
|
)
|
|
(40,779
|
)
|
|
(7,205
|
)
|
|
(154,958
|
)
|
|
(253,321
|
)
|
|||||
Effect of change in unrealized gains on available-for-sale debt securities
|
(9,809
|
)
|
|
(25,044
|
)
|
|
—
|
|
|
—
|
|
|
(34,853
|
)
|
|||||
Net change
|
4,231
|
|
|
(17,655
|
)
|
|
(661
|
)
|
|
3,171
|
|
|
(10,914
|
)
|
|||||
Ending balance at June 30, 2019
|
$
|
843,364
|
|
|
$
|
481,933
|
|
|
$
|
33,299
|
|
|
$
|
127,751
|
|
|
$
|
1,486,347
|
|
|
Six months ended June 30,
|
||||||
|
2019
|
|
2018
|
||||
Unpaid claims balance, beginning
|
$
|
1,305,396
|
|
|
$
|
1,218,824
|
|
Less reinsurance recoverables
|
254,466
|
|
|
241,302
|
|
||
Net beginning balance
|
1,050,930
|
|
|
977,522
|
|
||
Incurred related to
|
|
|
|
||||
Current
|
591,073
|
|
|
586,516
|
|
||
Prior years
|
(30,691
|
)
|
|
(2,501
|
)
|
||
Total incurred claims
|
560,382
|
|
|
584,015
|
|
||
Paid claims related to
|
|
|
|
||||
Current
|
272,650
|
|
|
261,019
|
|
||
Prior years
|
276,738
|
|
|
268,116
|
|
||
Total paid claims
|
549,388
|
|
|
529,135
|
|
||
Net balance
|
1,061,924
|
|
|
1,032,402
|
|
||
Plus reinsurance recoverables
|
249,245
|
|
|
255,684
|
|
||
Unpaid claims balance, ending
|
$
|
1,311,169
|
|
|
$
|
1,288,086
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
||||||||||||
Income tax expense before tax on equity in earnings of unconsolidated affiliates
|
$
|
21,819
|
|
|
18.1
|
%
|
|
$
|
21,267
|
|
|
20.0
|
%
|
|
$
|
81,606
|
|
|
18.3
|
%
|
|
$
|
25,632
|
|
|
20.0
|
%
|
Tax on equity in earnings of unconsolidated affiliates
|
3,526
|
|
|
2.9
|
|
|
1,348
|
|
|
1.0
|
|
|
12,023
|
|
|
2.7
|
|
|
1,234
|
|
|
1.0
|
|
||||
Total expected income tax expense at the statutory rate
|
25,345
|
|
|
21.0
|
|
|
22,615
|
|
|
21.0
|
|
|
93,629
|
|
|
21.0
|
|
|
26,866
|
|
|
21.0
|
|
||||
Tax-exempt investment income
|
(1,109
|
)
|
|
(0.9
|
)
|
|
(836
|
)
|
|
(0.8
|
)
|
|
(1,918
|
)
|
|
(0.4
|
)
|
|
(1,679
|
)
|
|
(1.3
|
)
|
||||
Deferred tax change
|
—
|
|
|
—
|
|
|
(600
|
)
|
|
(0.6
|
)
|
|
—
|
|
|
—
|
|
|
(909
|
)
|
|
(0.7
|
)
|
||||
Dividend exclusion
|
(860
|
)
|
|
(0.7
|
)
|
|
(1,001
|
)
|
|
(0.9
|
)
|
|
(1,781
|
)
|
|
(0.4
|
)
|
|
(1,986
|
)
|
|
(1.6
|
)
|
||||
Miscellaneous tax credits, net
|
(3,299
|
)
|
|
(2.7
|
)
|
|
(2,529
|
)
|
|
(2.3
|
)
|
|
(4,991
|
)
|
|
(1.1
|
)
|
|
(4,742
|
)
|
|
(3.7
|
)
|
||||
Low income housing tax credit expense
|
1,783
|
|
|
1.5
|
|
|
1,252
|
|
|
1.2
|
|
|
2,941
|
|
|
0.6
|
|
|
2,504
|
|
|
2.0
|
|
||||
Change in valuation allowance
|
165
|
|
|
0.1
|
|
|
2,700
|
|
|
2.5
|
|
|
165
|
|
|
—
|
|
|
2,700
|
|
|
2.1
|
|
||||
Other items, net
|
(77
|
)
|
|
(0.1
|
)
|
|
356
|
|
|
0.3
|
|
|
1,280
|
|
|
0.3
|
|
|
392
|
|
|
0.3
|
|
||||
Provision for federal income taxes
|
$
|
21,948
|
|
|
18.2
|
%
|
|
$
|
21,957
|
|
|
20.4
|
%
|
|
$
|
89,325
|
|
|
20.0
|
%
|
|
$
|
23,146
|
|
|
18.1
|
%
|
|
Net Unrealized
Gains (Losses)
on Securities
|
|
Defined
Benefit
Pension Plan
Adjustments
|
|
Foreign
Currency
Adjustments
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||
Beginning balance at January 1, 2019
|
$
|
(42,469
|
)
|
|
$
|
(54,236
|
)
|
|
$
|
(3,033
|
)
|
|
$
|
(99,738
|
)
|
Amounts reclassified from AOCI (net of tax expense $565 and $774)
|
2,126
|
|
|
2,911
|
|
|
—
|
|
|
5,037
|
|
||||
Unrealized holding gains arising during the period (net of tax expense $58,322)
|
219,402
|
|
|
—
|
|
|
—
|
|
|
219,402
|
|
||||
Unrealized adjustment to DAC (net of tax benefit $7,320)
|
(27,533
|
)
|
|
—
|
|
|
—
|
|
|
(27,533
|
)
|
||||
Unrealized gains on investments attributable to participating policyholders’ interest (net of tax benefit $2,690)
|
(10,121
|
)
|
|
—
|
|
|
—
|
|
|
(10,121
|
)
|
||||
Foreign currency adjustment (net of tax expense $157)
|
—
|
|
|
—
|
|
|
590
|
|
|
590
|
|
||||
Cumulative effect of changes in accounting
|
16,166
|
|
|
(16,493
|
)
|
|
(458
|
)
|
|
(785
|
)
|
||||
Ending balance at June 30, 2019
|
$
|
157,571
|
|
|
$
|
(67,818
|
)
|
|
$
|
(2,901
|
)
|
|
$
|
86,852
|
|
Beginning balance at January 1, 2018
|
$
|
716,878
|
|
|
$
|
(72,772
|
)
|
|
$
|
(1,890
|
)
|
|
$
|
642,216
|
|
Amounts reclassified from AOCI (net of tax benefit $462 and expense $635)
|
(1,740
|
)
|
|
2,390
|
|
|
—
|
|
|
650
|
|
||||
Unrealized holding losses arising during the period (net of tax benefit $39,660)
|
(168,551
|
)
|
|
—
|
|
|
—
|
|
|
(168,551
|
)
|
||||
Unrealized adjustment to DAC (net of tax expense $8,812)
|
33,150
|
|
|
—
|
|
|
—
|
|
|
33,150
|
|
||||
Unrealized losses on investments attributable to participating policyholders’ interest (net of tax expense $2,504)
|
9,420
|
|
|
—
|
|
|
—
|
|
|
9,420
|
|
||||
Foreign currency adjustment (net of tax benefit $133)
|
—
|
|
|
—
|
|
|
(500
|
)
|
|
(500
|
)
|
||||
Cumulative effect of changes in accounting (net of tax benefit $334,955)
|
(627,119
|
)
|
|
—
|
|
|
—
|
|
|
(627,119
|
)
|
||||
Ending balance at June 30, 2018
|
$
|
(37,962
|
)
|
|
$
|
(70,382
|
)
|
|
$
|
(2,390
|
)
|
|
$
|
(110,734
|
)
|
|
June 30, 2019
|
|
December 31, 2018
|
||
Common stock
|
|
|
|
||
Shares issued
|
30,832,449
|
|
|
30,832,449
|
|
Treasury shares
|
(3,945,249
|
)
|
|
(3,947,000
|
)
|
Outstanding shares
|
26,887,200
|
|
|
26,885,449
|
|
Restricted shares
|
(10,000
|
)
|
|
(10,000
|
)
|
Unrestricted outstanding shares
|
26,877,200
|
|
|
26,875,449
|
|
|
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, 2018
|
335
|
|
|
$
|
84.41
|
|
|
10,000
|
|
|
$
|
80.05
|
|
|
18,316
|
|
|
$
|
111.12
|
|
Granted
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,250
|
|
|
113.19
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,316
|
)
|
|
111.12
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Expired
|
(269
|
)
|
|
77.90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at June 30, 2019
|
66
|
|
|
$
|
110.83
|
|
|
10,000
|
|
|
$
|
80.05
|
|
|
8,250
|
|
|
$
|
113.19
|
|
|
SAR
|
|
RS Shares
|
|
RS Units
|
||||||
Weighted-average contractual remaining life (in years)
|
0.84
|
|
|
3.67
|
|
|
0.84
|
|
|||
Exercisable shares
|
66
|
|
|
N/A
|
|
|
N/A
|
|
|||
Weighted-average exercise price
|
$
|
110.83
|
|
|
$
|
80.05
|
|
|
$
|
111.12
|
|
Weighted-average exercise price exercisable shares
|
110.83
|
|
|
N/A
|
|
|
N/A
|
|
|||
Compensation expense (credit)
|
|
|
|
|
|
||||||
Three months ended June 30, 2019
|
$
|
(12,000
|
)
|
|
$
|
20,000
|
|
|
$
|
578,000
|
|
Three months ended June 30, 2018
|
(5,000
|
)
|
|
83,000
|
|
|
760,000
|
|
|||
Six months ended June 30, 2019
|
$
|
(15,000
|
)
|
|
$
|
40,000
|
|
|
$
|
941,000
|
|
Six months ended June 30, 2018
|
(34,000
|
)
|
|
284,000
|
|
|
549,000
|
|
|||
Fair value of liability award
|
|
|
|
|
|
||||||
June 30, 2019
|
$
|
1,000
|
|
|
N/A
|
|
|
$
|
961,000
|
|
|
December 31, 2018
|
33,000
|
|
|
N/A
|
|
|
2,426,000
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Weighted average shares outstanding
|
26,881,700
|
|
|
26,883,276
|
|
|
26,883,699
|
|
|
26,886,196
|
|
||||
Incremental shares from RS awards and RSUs
|
7,264
|
|
|
26,981
|
|
|
6,237
|
|
|
46,927
|
|
||||
Total shares for diluted calculations
|
26,888,964
|
|
|
26,910,257
|
|
|
26,889,936
|
|
|
26,933,123
|
|
||||
Net income attributable to American National (in thousands)
|
$
|
98,840
|
|
|
$
|
84,139
|
|
|
$
|
357,057
|
|
|
$
|
102,916
|
|
Basic earnings per share
|
$
|
3.68
|
|
|
$
|
3.13
|
|
|
$
|
13.28
|
|
|
$
|
3.83
|
|
Diluted earnings per share
|
$
|
3.67
|
|
|
$
|
3.12
|
|
|
$
|
13.28
|
|
|
$
|
3.82
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
Statutory capital and surplus
|
|
|
|
|
||||
Life insurance entities
|
|
$
|
2,146,806
|
|
|
$
|
1,989,586
|
|
Property and casualty insurance entities
|
|
1,268,057
|
|
|
1,183,913
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Statutory net income (loss)
|
|
|
|
|
|
|
|
||||||||
Life insurance entities
|
$
|
12,782
|
|
|
$
|
12,850
|
|
|
$
|
5,698
|
|
|
$
|
16,113
|
|
Property and casualty insurance entities
|
12,344
|
|
|
(3,828
|
)
|
|
50,464
|
|
|
9,230
|
|
•
|
Life—consists of whole, term, universal, indexed and variable life insurance. Products are primarily sold through career, multiple-line, and independent agents as well as direct marketing channels.
|
•
|
Annuity—consists of fixed, indexed, and variable annuity products. Products are primarily sold through independent agents, brokers, and financial institutions, along with multiple-line and career agents.
|
•
|
Health—consists of Medicare Supplement, stop loss, other supplemental health products and credit disability insurance. Products are typically distributed through independent agents and managing general underwriters.
|
•
|
Property and Casualty—consists of personal, agricultural and targeted commercial coverages and credit-related property insurance. Products are primarily sold through multiple-line and independent agents or managing general agents.
|
•
|
Corporate and Other—consists of net investment income from investments and certain expenses not allocated to the insurance segments and revenues and related expenses from non-insurance operations.
|
•
|
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.
|
|
Three months ended June 30, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Property
|
|
Corporate
|
|
|
||||||||||||
|
Life
|
|
Annuity
|
|
Health
|
|
& Casualty
|
|
& Other
|
|
Total
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
$
|
86,087
|
|
|
$
|
56,222
|
|
|
$
|
42,224
|
|
|
$
|
371,739
|
|
|
$
|
—
|
|
|
$
|
556,272
|
|
Other policy revenues
|
70,610
|
|
|
4,536
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75,146
|
|
||||||
Net investment income
|
63,916
|
|
|
155,355
|
|
|
2,376
|
|
|
16,706
|
|
|
19,377
|
|
|
257,730
|
|
||||||
Net realized investment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,905
|
)
|
|
(9,905
|
)
|
||||||
Net gains on equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,060
|
|
|
67,060
|
|
||||||
Other income
|
469
|
|
|
574
|
|
|
5,534
|
|
|
2,830
|
|
|
967
|
|
|
10,374
|
|
||||||
Total premiums and other revenues
|
221,082
|
|
|
216,687
|
|
|
50,134
|
|
|
391,275
|
|
|
77,499
|
|
|
956,677
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
104,462
|
|
|
72,788
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
177,250
|
|
||||||
Claims incurred
|
—
|
|
|
—
|
|
|
26,708
|
|
|
271,608
|
|
|
—
|
|
|
298,316
|
|
||||||
Interest credited to policyholders’ account balances
|
15,197
|
|
|
108,490
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,687
|
|
||||||
Commissions for acquiring and servicing policies
|
40,881
|
|
|
23,139
|
|
|
8,692
|
|
|
68,583
|
|
|
—
|
|
|
141,295
|
|
||||||
Other operating expenses
|
46,669
|
|
|
13,349
|
|
|
10,707
|
|
|
49,681
|
|
|
9,127
|
|
|
129,533
|
|
||||||
Change in deferred policy acquisition costs
|
(9,205
|
)
|
|
(4,369
|
)
|
|
(146
|
)
|
|
(3,588
|
)
|
|
—
|
|
|
(17,308
|
)
|
||||||
Total benefits, losses and expenses
|
198,004
|
|
|
213,397
|
|
|
45,961
|
|
|
386,284
|
|
|
9,127
|
|
|
852,773
|
|
||||||
Income before federal income tax and other items
|
$
|
23,078
|
|
|
$
|
3,290
|
|
|
$
|
4,173
|
|
|
$
|
4,991
|
|
|
$
|
68,372
|
|
|
$
|
103,904
|
|
|
Three months ended June 30, 2018
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Property
|
|
Corporate
|
|
|
||||||||||||
|
Life
|
|
Annuity
|
|
Health
|
|
& Casualty
|
|
& Other
|
|
Total
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
$
|
84,595
|
|
|
$
|
67,228
|
|
|
$
|
48,870
|
|
|
$
|
360,047
|
|
|
$
|
—
|
|
|
$
|
560,740
|
|
Other policy revenues
|
67,231
|
|
|
3,907
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71,138
|
|
||||||
Net investment income
|
61,082
|
|
|
148,710
|
|
|
2,263
|
|
|
15,493
|
|
|
19,193
|
|
|
246,741
|
|
||||||
Net realized investment gains
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,007
|
|
|
5,007
|
|
||||||
Net gains on equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,162
|
|
|
57,162
|
|
||||||
Other income
|
512
|
|
|
631
|
|
|
6,809
|
|
|
2,264
|
|
|
1,067
|
|
|
11,283
|
|
||||||
Total premiums and other revenues
|
213,420
|
|
|
220,476
|
|
|
57,942
|
|
|
377,804
|
|
|
82,429
|
|
|
952,071
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
96,958
|
|
|
82,103
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
179,061
|
|
||||||
Claims incurred
|
—
|
|
|
—
|
|
|
32,310
|
|
|
280,126
|
|
|
—
|
|
|
312,436
|
|
||||||
Interest credited to policyholders’ account balances
|
21,046
|
|
|
84,685
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105,731
|
|
||||||
Commissions for acquiring and servicing policies
|
39,391
|
|
|
30,355
|
|
|
9,126
|
|
|
70,865
|
|
|
—
|
|
|
149,737
|
|
||||||
Other operating expenses
|
48,189
|
|
|
11,853
|
|
|
10,090
|
|
|
45,166
|
|
|
8,649
|
|
|
123,947
|
|
||||||
Change in deferred policy acquisition costs
|
(7,249
|
)
|
|
(8,811
|
)
|
|
506
|
|
|
(4,562
|
)
|
|
—
|
|
|
(20,116
|
)
|
||||||
Total benefits, losses and expenses
|
198,335
|
|
|
200,185
|
|
|
52,032
|
|
|
391,595
|
|
|
8,649
|
|
|
850,796
|
|
||||||
Income (loss) before federal income tax and other items
|
$
|
15,085
|
|
|
$
|
20,291
|
|
|
$
|
5,910
|
|
|
$
|
(13,791
|
)
|
|
$
|
73,780
|
|
|
$
|
101,275
|
|
|
Six months ended June 30, 2019
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Property
|
|
Corporate
|
|
|
||||||||||||
|
Life
|
|
Annuity
|
|
Health
|
|
& Casualty
|
|
& Other
|
|
Total
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
$
|
172,555
|
|
|
$
|
96,129
|
|
|
$
|
80,905
|
|
|
$
|
742,920
|
|
|
$
|
—
|
|
|
$
|
1,092,509
|
|
Other policy revenues
|
140,854
|
|
|
8,540
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149,394
|
|
||||||
Net investment income
|
132,672
|
|
|
346,066
|
|
|
4,796
|
|
|
31,728
|
|
|
34,814
|
|
|
550,076
|
|
||||||
Net realized investment losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,958
|
)
|
|
(6,958
|
)
|
||||||
Net gains on equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
273,437
|
|
|
273,437
|
|
||||||
Other income
|
1,145
|
|
|
1,263
|
|
|
10,919
|
|
|
5,552
|
|
|
3,033
|
|
|
21,912
|
|
||||||
Total premiums and other revenues
|
447,226
|
|
|
451,998
|
|
|
96,620
|
|
|
780,200
|
|
|
304,326
|
|
|
2,080,370
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
213,927
|
|
|
131,549
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
345,476
|
|
||||||
Claims incurred
|
—
|
|
|
—
|
|
|
52,475
|
|
|
509,752
|
|
|
—
|
|
|
562,227
|
|
||||||
Interest credited to policyholders’ account balances
|
35,516
|
|
|
229,405
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
264,921
|
|
||||||
Commissions for acquiring and servicing policies
|
78,623
|
|
|
50,005
|
|
|
15,570
|
|
|
135,742
|
|
|
—
|
|
|
279,940
|
|
||||||
Other operating expenses
|
95,647
|
|
|
25,823
|
|
|
21,699
|
|
|
101,566
|
|
|
18,408
|
|
|
263,143
|
|
||||||
Change in deferred policy acquisition costs
|
(14,040
|
)
|
|
(7,389
|
)
|
|
661
|
|
|
(3,171
|
)
|
|
—
|
|
|
(23,939
|
)
|
||||||
Total benefits, losses and expenses
|
409,673
|
|
|
429,393
|
|
|
90,405
|
|
|
743,889
|
|
|
18,408
|
|
|
1,691,768
|
|
||||||
Income before federal income tax and other items
|
$
|
37,553
|
|
|
$
|
22,605
|
|
|
$
|
6,215
|
|
|
$
|
36,311
|
|
|
$
|
285,918
|
|
|
$
|
388,602
|
|
|
Six months ended June 30, 2018
|
||||||||||||||||||||||
|
|
|
|
|
|
|
Property
|
|
Corporate
|
|
|
||||||||||||
|
Life
|
|
Annuity
|
|
Health
|
|
& Casualty
|
|
& Other
|
|
Total
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
$
|
165,971
|
|
|
$
|
137,844
|
|
|
$
|
89,885
|
|
|
$
|
712,020
|
|
|
$
|
—
|
|
|
$
|
1,105,720
|
|
Other policy revenues
|
134,962
|
|
|
7,515
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
142,477
|
|
||||||
Net investment income
|
118,850
|
|
|
262,190
|
|
|
4,617
|
|
|
31,354
|
|
|
38,399
|
|
|
455,410
|
|
||||||
Net realized investment gains
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,051
|
|
|
6,051
|
|
||||||
Net gains on equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,992
|
|
|
23,992
|
|
||||||
Other income
|
1,267
|
|
|
1,356
|
|
|
11,966
|
|
|
4,327
|
|
|
2,880
|
|
|
21,796
|
|
||||||
Total premiums and other revenues
|
421,050
|
|
|
408,905
|
|
|
106,468
|
|
|
747,701
|
|
|
71,322
|
|
|
1,755,446
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
195,504
|
|
|
166,849
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362,353
|
|
||||||
Claims incurred
|
—
|
|
|
—
|
|
|
60,450
|
|
|
522,616
|
|
|
—
|
|
|
583,066
|
|
||||||
Interest credited to policyholders’ account balances
|
37,311
|
|
|
138,965
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
176,276
|
|
||||||
Commissions for acquiring and servicing policies
|
78,911
|
|
|
60,359
|
|
|
15,142
|
|
|
140,021
|
|
|
—
|
|
|
294,433
|
|
||||||
Other operating expenses
|
99,139
|
|
|
23,172
|
|
|
20,448
|
|
|
92,967
|
|
|
18,615
|
|
|
254,341
|
|
||||||
Change in deferred policy acquisition costs
|
(13,692
|
)
|
|
(17,684
|
)
|
|
1,594
|
|
|
(7,300
|
)
|
|
—
|
|
|
(37,082
|
)
|
||||||
Total benefits, losses and expenses
|
397,173
|
|
|
371,661
|
|
|
97,634
|
|
|
748,304
|
|
|
18,615
|
|
|
1,633,387
|
|
||||||
Income (loss) before federal income tax and other items
|
$
|
23,877
|
|
|
$
|
37,244
|
|
|
$
|
8,834
|
|
|
$
|
(603
|
)
|
|
$
|
52,707
|
|
|
$
|
122,059
|
|
|
|
|
|
Dollar Amount of Transactions
|
|
|
||||||||||||
|
|
|
|
Six months ended June 30,
|
|
Amount due to (from) American National
|
||||||||||||
Related Party
|
|
Financial Statement Line Impacted
|
|
2019
|
|
2018
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||
Gal-Tex Hotel Corporation
|
|
Mortgage loan on real estate
|
|
$
|
576
|
|
|
$
|
809
|
|
|
$
|
—
|
|
|
$
|
576
|
|
Gal-Tex Hotel Corporation
|
|
Net investment income
|
|
9
|
|
|
68
|
|
|
—
|
|
|
3
|
|
||||
Greer, Herz & Adams, LLP
|
|
Other operating expenses
|
|
5,896
|
|
|
5,379
|
|
|
(494
|
)
|
|
(329
|
)
|
•
|
Economic & Investment Risk Factors
|
•
|
the potential for difficult conditions in the economy, which may not improve in the near future, and risks related to persistently low or unpredictable interest rates;
|
•
|
fluctuations in the markets for fixed maturity securities, equity securities, and commercial real estate, which could adversely affect the valuation of our investment portfolio, our net investment income, our retirement expense, and sales of or fees from certain of our products;
|
•
|
lack of liquidity for certain of our investments;
|
•
|
risk of investment losses and defaults;
|
•
|
Operational Risk Factors
|
•
|
differences between actual experience regarding mortality, morbidity, persistency, expense, surrenders and investment returns, and our assumptions for product pricing, establishing liabilities and reserves or for other purposes;
|
•
|
potential ineffectiveness of our risk management policies and procedures;
|
•
|
changes in our experience related to deferred policy acquisition costs;
|
•
|
failures or limitations of our computer, information security and administration systems;
|
•
|
potential employee error or misconduct, which may result in fraud or adversely affect the execution and administration of our policies and claims;
|
•
|
potential ineffectiveness of our internal controls over financial reporting;
|
•
|
Catastrophic Event Risk Factors
|
•
|
natural or man-made catastrophes, pandemic disease, or other events resulting in increased claims activity from catastrophic loss of life or property;
|
•
|
the effects of unanticipated events on our disaster recovery and business continuity planning;
|
•
|
Marketplace Risk Factors
|
•
|
the highly competitive nature of the insurance and annuity business;
|
•
|
potential difficulty in attraction and retention of qualified employees and agents;
|
•
|
the introduction of alternative healthcare solutions or changes in federal healthcare policy, both of which could impact our supplemental healthcare business;
|
•
|
Litigation and Regulation Risk Factors
|
•
|
adverse determinations in litigation or regulatory proceedings which may result in significant financial losses and harm our reputation;
|
•
|
significant changes in government regulation;
|
•
|
changes in tax law;
|
•
|
changes in statutory or U.S. generally accepted accounting principles (“GAAP”), practices or policies;
|
•
|
Reinsurance and Counterparty Risk Factors
|
•
|
potential changes in the availability, affordability, adequacy and collectability of reinsurance protection;
|
•
|
potential default or failure to perform by the counterparties to our reinsurance arrangements and derivative instruments;
|
•
|
Other Risk Factors
|
•
|
potentially adverse rating agency actions;
|
•
|
control of our company by a small number of stockholders; and
|
•
|
advances in medical technology and testing, which may increase our adverse selection risk.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
|
$
|
556,272
|
|
|
$
|
560,740
|
|
|
$
|
(4,468
|
)
|
|
$
|
1,092,509
|
|
|
$
|
1,105,720
|
|
|
$
|
(13,211
|
)
|
Other policy revenues
|
|
75,146
|
|
|
71,138
|
|
|
4,008
|
|
|
149,394
|
|
|
142,477
|
|
|
6,917
|
|
||||||
Net investment income
|
|
257,730
|
|
|
246,741
|
|
|
10,989
|
|
|
550,076
|
|
|
455,410
|
|
|
94,666
|
|
||||||
Net realized investments gains (losses)
|
|
(9,905
|
)
|
|
5,007
|
|
|
(14,912
|
)
|
|
(6,958
|
)
|
|
6,051
|
|
|
(13,009
|
)
|
||||||
Net gains on equity securities
|
|
67,060
|
|
|
57,162
|
|
|
9,898
|
|
|
273,437
|
|
|
23,992
|
|
|
249,445
|
|
||||||
Other income
|
|
10,374
|
|
|
11,283
|
|
|
(909
|
)
|
|
21,912
|
|
|
21,796
|
|
|
116
|
|
||||||
Total premiums and other revenues
|
|
956,677
|
|
|
952,071
|
|
|
4,606
|
|
|
2,080,370
|
|
|
1,755,446
|
|
|
324,924
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
|
177,250
|
|
|
179,061
|
|
|
(1,811
|
)
|
|
345,476
|
|
|
362,353
|
|
|
(16,877
|
)
|
||||||
Claims incurred
|
|
298,316
|
|
|
312,436
|
|
|
(14,120
|
)
|
|
562,227
|
|
|
583,066
|
|
|
(20,839
|
)
|
||||||
Interest credited to policyholders’ account balances
|
|
123,687
|
|
|
105,731
|
|
|
17,956
|
|
|
264,921
|
|
|
176,276
|
|
|
88,645
|
|
||||||
Commissions for acquiring and servicing policies
|
|
141,295
|
|
|
149,737
|
|
|
(8,442
|
)
|
|
279,940
|
|
|
294,433
|
|
|
(14,493
|
)
|
||||||
Other operating expenses
|
|
129,533
|
|
|
123,947
|
|
|
5,586
|
|
|
263,143
|
|
|
254,341
|
|
|
8,802
|
|
||||||
Change in deferred policy acquisition costs (1)
|
|
(17,308
|
)
|
|
(20,116
|
)
|
|
2,808
|
|
|
(23,939
|
)
|
|
(37,082
|
)
|
|
13,143
|
|
||||||
Total benefits, losses and expenses
|
|
852,773
|
|
|
850,796
|
|
|
1,977
|
|
|
1,691,768
|
|
|
1,633,387
|
|
|
58,381
|
|
||||||
Income before federal income taxes other items
|
|
$
|
103,904
|
|
|
$
|
101,275
|
|
|
$
|
2,629
|
|
|
$
|
388,602
|
|
|
$
|
122,059
|
|
|
$
|
266,543
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
|
$
|
86,087
|
|
|
$
|
84,595
|
|
|
$
|
1,492
|
|
|
$
|
172,555
|
|
|
$
|
165,971
|
|
|
$
|
6,584
|
|
Other policy revenues
|
|
70,610
|
|
|
67,231
|
|
|
3,379
|
|
|
140,854
|
|
|
134,962
|
|
|
5,892
|
|
||||||
Net investment income
|
|
63,916
|
|
|
61,082
|
|
|
2,834
|
|
|
132,672
|
|
|
118,850
|
|
|
13,822
|
|
||||||
Other income
|
|
469
|
|
|
512
|
|
|
(43
|
)
|
|
1,145
|
|
|
1,267
|
|
|
(122
|
)
|
||||||
Total premiums and other revenues
|
|
221,082
|
|
|
213,420
|
|
|
7,662
|
|
|
447,226
|
|
|
421,050
|
|
|
26,176
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
|
104,462
|
|
|
96,958
|
|
|
7,504
|
|
|
213,927
|
|
|
195,504
|
|
|
18,423
|
|
||||||
Interest credited to policyholders’ account balances
|
|
15,197
|
|
|
21,046
|
|
|
(5,849
|
)
|
|
35,516
|
|
|
37,311
|
|
|
(1,795
|
)
|
||||||
Commissions for acquiring and servicing policies
|
|
40,881
|
|
|
39,391
|
|
|
1,490
|
|
|
78,623
|
|
|
78,911
|
|
|
(288
|
)
|
||||||
Other operating expenses
|
|
46,669
|
|
|
48,189
|
|
|
(1,520
|
)
|
|
95,647
|
|
|
99,139
|
|
|
(3,492
|
)
|
||||||
Change in deferred policy acquisition costs (1)
|
|
(9,205
|
)
|
|
(7,249
|
)
|
|
(1,956
|
)
|
|
(14,040
|
)
|
|
(13,692
|
)
|
|
(348
|
)
|
||||||
Total benefits, losses and expenses
|
|
198,004
|
|
|
198,335
|
|
|
(331
|
)
|
|
409,673
|
|
|
397,173
|
|
|
12,500
|
|
||||||
Income before federal income taxes and other items
|
|
$
|
23,078
|
|
|
$
|
15,085
|
|
|
$
|
7,993
|
|
|
$
|
37,553
|
|
|
$
|
23,877
|
|
|
$
|
13,676
|
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Traditional Life
|
|
$
|
14,711
|
|
|
$
|
15,367
|
|
|
$
|
(656
|
)
|
|
$
|
28,698
|
|
|
$
|
30,489
|
|
|
$
|
(1,791
|
)
|
Universal Life
|
|
7,557
|
|
|
6,195
|
|
|
1,362
|
|
|
13,697
|
|
|
12,104
|
|
|
1,593
|
|
||||||
Indexed UL
|
|
9,035
|
|
|
7,821
|
|
|
1,214
|
|
|
17,001
|
|
|
15,284
|
|
|
1,717
|
|
||||||
Total recurring
|
|
$
|
31,303
|
|
|
$
|
29,383
|
|
|
$
|
1,920
|
|
|
$
|
59,396
|
|
|
$
|
57,877
|
|
|
$
|
1,519
|
|
Single and excess (1)
|
|
$
|
482
|
|
|
$
|
752
|
|
|
$
|
(270
|
)
|
|
$
|
915
|
|
|
$
|
1,214
|
|
|
$
|
(299
|
)
|
Credit life (1)
|
|
2,855
|
|
|
2,202
|
|
|
653
|
|
|
5,468
|
|
|
4,178
|
|
|
1,290
|
|
||||||
Total annualized premium
|
|
$
|
34,640
|
|
|
$
|
32,337
|
|
|
$
|
2,303
|
|
|
$
|
65,779
|
|
|
$
|
63,269
|
|
|
$
|
2,510
|
|
(1)
|
These are weighted amounts representing 10% of single and excess premiums and 44% and 31% of Credit Life premiums for 2019 and 2018, respectively.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Acquisition cost capitalized
|
|
$
|
33,656
|
|
|
$
|
32,953
|
|
|
$
|
703
|
|
|
$
|
64,419
|
|
|
$
|
65,577
|
|
|
$
|
(1,158
|
)
|
Amortization of DAC
|
|
(24,451
|
)
|
|
(25,704
|
)
|
|
1,253
|
|
|
(50,379
|
)
|
|
(51,885
|
)
|
|
1,506
|
|
||||||
Change in DAC
|
|
$
|
9,205
|
|
|
$
|
7,249
|
|
|
$
|
1,956
|
|
|
$
|
14,040
|
|
|
$
|
13,692
|
|
|
$
|
348
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change
|
||||||
Life insurance in-force
|
|
|
|
|
|
|
||||||
Traditional life
|
|
$
|
81,545,128
|
|
|
$
|
78,872,533
|
|
|
$
|
2,672,595
|
|
Interest-sensitive life
|
|
32,757,720
|
|
|
31,483,582
|
|
|
1,274,138
|
|
|||
Total life insurance in-force
|
|
$
|
114,302,848
|
|
|
$
|
110,356,115
|
|
|
$
|
3,946,733
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change
|
|||
Number of policies in-force
|
|
|
|
|
|
|
|||
Traditional life
|
|
1,744,941
|
|
|
1,763,028
|
|
|
(18,087
|
)
|
Interest-sensitive life
|
|
249,856
|
|
|
243,447
|
|
|
6,409
|
|
Total number of policies in-force
|
|
1,994,797
|
|
|
2,006,475
|
|
|
(11,678
|
)
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
|
$
|
56,222
|
|
|
$
|
67,228
|
|
|
$
|
(11,006
|
)
|
|
$
|
96,129
|
|
|
$
|
137,844
|
|
|
$
|
(41,715
|
)
|
Other policy revenues
|
|
4,536
|
|
|
3,907
|
|
|
629
|
|
|
8,540
|
|
|
7,515
|
|
|
1,025
|
|
||||||
Net investment income
|
|
155,355
|
|
|
148,710
|
|
|
6,645
|
|
|
346,066
|
|
|
262,190
|
|
|
83,876
|
|
||||||
Other income
|
|
574
|
|
|
631
|
|
|
(57
|
)
|
|
1,263
|
|
|
1,356
|
|
|
(93
|
)
|
||||||
Total premiums and other revenues
|
|
216,687
|
|
|
220,476
|
|
|
(3,789
|
)
|
|
451,998
|
|
|
408,905
|
|
|
43,093
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Policyholder benefits
|
|
72,788
|
|
|
82,103
|
|
|
(9,315
|
)
|
|
131,549
|
|
|
166,849
|
|
|
(35,300
|
)
|
||||||
Interest credited to policyholders’ account balances
|
|
108,490
|
|
|
84,685
|
|
|
23,805
|
|
|
229,405
|
|
|
138,965
|
|
|
90,440
|
|
||||||
Commissions for acquiring and servicing policies
|
|
23,139
|
|
|
30,355
|
|
|
(7,216
|
)
|
|
50,005
|
|
|
60,359
|
|
|
(10,354
|
)
|
||||||
Other operating expenses
|
|
13,349
|
|
|
11,853
|
|
|
1,496
|
|
|
25,823
|
|
|
23,172
|
|
|
2,651
|
|
||||||
Change in deferred policy acquisition costs (1)
|
|
(4,369
|
)
|
|
(8,811
|
)
|
|
4,442
|
|
|
(7,389
|
)
|
|
(17,684
|
)
|
|
10,295
|
|
||||||
Total benefits, losses and expenses
|
|
213,397
|
|
|
200,185
|
|
|
13,212
|
|
|
429,393
|
|
|
371,661
|
|
|
57,732
|
|
||||||
Income before federal income taxes and other items
|
|
$
|
3,290
|
|
|
$
|
20,291
|
|
|
$
|
(17,001
|
)
|
|
$
|
22,605
|
|
|
$
|
37,244
|
|
|
$
|
(14,639
|
)
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Fixed deferred annuity
|
|
$
|
311,269
|
|
|
$
|
86,768
|
|
|
$
|
224,501
|
|
|
$
|
832,517
|
|
|
$
|
165,894
|
|
|
$
|
666,623
|
|
Single premium immediate annuity
|
|
77,879
|
|
|
85,412
|
|
|
(7,533
|
)
|
|
134,008
|
|
|
165,224
|
|
|
(31,216
|
)
|
||||||
Equity-indexed deferred annuity
|
|
106,098
|
|
|
304,839
|
|
|
(198,741
|
)
|
|
206,844
|
|
|
578,610
|
|
|
(371,766
|
)
|
||||||
Variable deferred annuity
|
|
16,012
|
|
|
17,075
|
|
|
(1,063
|
)
|
|
32,111
|
|
|
32,747
|
|
|
(636
|
)
|
||||||
Total premium and deposits
|
|
511,258
|
|
|
494,094
|
|
|
17,164
|
|
|
1,205,480
|
|
|
942,475
|
|
|
263,005
|
|
||||||
Less: Policy deposits
|
|
455,036
|
|
|
426,866
|
|
|
28,170
|
|
|
1,109,351
|
|
|
804,631
|
|
|
304,720
|
|
||||||
Total earned premiums
|
|
$
|
56,222
|
|
|
$
|
67,228
|
|
|
$
|
(11,006
|
)
|
|
$
|
96,129
|
|
|
$
|
137,844
|
|
|
$
|
(41,715
|
)
|
|
|
Six months ended June 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Fixed deferred annuity
|
|
|
|
|
||||
Reserve, beginning of period
|
|
$
|
6,773,603
|
|
|
$
|
7,108,254
|
|
Premiums
|
|
832,517
|
|
|
165,894
|
|
||
Net flows other than surrenders
|
|
(117,126
|
)
|
|
(136,040
|
)
|
||
Surrenders
|
|
(453,917
|
)
|
|
(296,713
|
)
|
||
Fees
|
|
(1,516
|
)
|
|
(1,677
|
)
|
||
Interest and mortality
|
|
101,243
|
|
|
97,492
|
|
||
Reserve, end of period
|
|
7,134,804
|
|
|
6,937,210
|
|
||
Equity-indexed annuity
|
|
|
|
|
||||
Reserves, beginning period
|
|
3,668,645
|
|
|
2,934,430
|
|
||
Premiums
|
|
206,844
|
|
|
578,610
|
|
||
Net flows other than surrenders
|
|
(16,946
|
)
|
|
(20,852
|
)
|
||
Surrenders
|
|
(85,951
|
)
|
|
(67,996
|
)
|
||
Fees
|
|
(1,922
|
)
|
|
(1,985
|
)
|
||
Interest and mortality
|
|
126,454
|
|
|
39,243
|
|
||
Reserve, end of period
|
|
3,897,124
|
|
|
3,461,450
|
|
||
Single premium immediate annuity
|
|
|
|
|
||||
Reserve, beginning of period
|
|
1,826,137
|
|
|
1,691,502
|
|
||
Premiums
|
|
134,008
|
|
|
165,224
|
|
||
Net flows other than premiums
|
|
(106,973
|
)
|
|
(101,600
|
)
|
||
Interest and mortality
|
|
29,896
|
|
|
28,920
|
|
||
Reserve, end of period
|
|
1,883,068
|
|
|
1,784,046
|
|
||
Variable deferred annuity
|
|
|
|
|
||||
Account value, beginning of period
|
|
332,898
|
|
|
381,903
|
|
||
Premiums
|
|
32,111
|
|
|
32,747
|
|
||
Net flows other than premiums and surrenders
|
|
987
|
|
|
124
|
|
||
Surrenders
|
|
(42,217
|
)
|
|
(50,417
|
)
|
||
Fees
|
|
(2,338
|
)
|
|
(2,306
|
)
|
||
Change in market value and other
|
|
48,712
|
|
|
8,403
|
|
||
Reserve, end of period
|
|
370,153
|
|
|
370,454
|
|
||
Total reserve, end of period
|
|
$
|
13,285,149
|
|
|
$
|
12,553,160
|
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Acquisition cost capitalized
|
|
$
|
23,091
|
|
|
$
|
30,174
|
|
|
$
|
(7,083
|
)
|
|
$
|
48,168
|
|
|
$
|
59,691
|
|
|
$
|
(11,523
|
)
|
Amortization of DAC
|
|
(18,722
|
)
|
|
(21,363
|
)
|
|
2,641
|
|
|
(40,779
|
)
|
|
(42,007
|
)
|
|
1,228
|
|
||||||
Change in DAC
|
|
$
|
4,369
|
|
|
$
|
8,811
|
|
|
$
|
(4,442
|
)
|
|
$
|
7,389
|
|
|
$
|
17,684
|
|
|
$
|
(10,295
|
)
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Fixed annuity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed investment income
|
|
$
|
97,099
|
|
|
$
|
96,066
|
|
|
$
|
1,033
|
|
|
$
|
191,491
|
|
|
$
|
192,316
|
|
|
$
|
(825
|
)
|
Interest credited and mortality
|
|
(67,746
|
)
|
|
(63,301
|
)
|
|
(4,445
|
)
|
|
(131,139
|
)
|
|
(126,412
|
)
|
|
(4,727
|
)
|
||||||
Interest and mortality margin
|
|
29,353
|
|
|
32,765
|
|
|
(3,412
|
)
|
|
60,352
|
|
|
65,904
|
|
|
(5,552
|
)
|
||||||
Equity-indexed annuity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Fixed investment income
|
|
37,692
|
|
|
32,980
|
|
|
4,712
|
|
|
74,715
|
|
|
63,266
|
|
|
11,449
|
|
||||||
Option return
|
|
20,565
|
|
|
19,664
|
|
|
901
|
|
|
79,861
|
|
|
6,607
|
|
|
73,254
|
|
||||||
Interest credited and mortality
|
|
(54,213
|
)
|
|
(35,253
|
)
|
|
(18,960
|
)
|
|
(126,454
|
)
|
|
(39,243
|
)
|
|
(87,211
|
)
|
||||||
Interest and mortality margin
|
|
4,044
|
|
|
17,391
|
|
|
(13,347
|
)
|
|
28,122
|
|
|
30,630
|
|
|
(2,508
|
)
|
||||||
Variable annuity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Separate account management fees
|
|
1,041
|
|
|
1,066
|
|
|
(25
|
)
|
|
2,016
|
|
|
2,141
|
|
|
(125
|
)
|
||||||
Interest and mortality margin
|
|
1,041
|
|
|
1,066
|
|
|
(25
|
)
|
|
2,016
|
|
|
2,141
|
|
|
(125
|
)
|
||||||
Total interest and mortality margin
|
|
$
|
34,438
|
|
|
$
|
51,222
|
|
|
$
|
(16,784
|
)
|
|
$
|
90,490
|
|
|
$
|
98,675
|
|
|
$
|
(8,185
|
)
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Premiums
|
|
$
|
42,224
|
|
|
$
|
48,870
|
|
|
$
|
(6,646
|
)
|
|
$
|
80,905
|
|
|
$
|
89,885
|
|
|
$
|
(8,980
|
)
|
Net investment income
|
|
2,376
|
|
|
2,263
|
|
|
113
|
|
|
4,796
|
|
|
4,617
|
|
|
179
|
|
||||||
Other income
|
|
5,534
|
|
|
6,809
|
|
|
(1,275
|
)
|
|
10,919
|
|
|
11,966
|
|
|
(1,047
|
)
|
||||||
Total premiums and other revenues
|
|
50,134
|
|
|
57,942
|
|
|
(7,808
|
)
|
|
96,620
|
|
|
106,468
|
|
|
(9,848
|
)
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Claims incurred
|
|
26,708
|
|
|
32,310
|
|
|
(5,602
|
)
|
|
52,475
|
|
|
60,450
|
|
|
(7,975
|
)
|
||||||
Commissions for acquiring and servicing policies
|
|
8,692
|
|
|
9,126
|
|
|
(434
|
)
|
|
15,570
|
|
|
15,142
|
|
|
428
|
|
||||||
Other operating expenses
|
|
10,707
|
|
|
10,090
|
|
|
617
|
|
|
21,699
|
|
|
20,448
|
|
|
1,251
|
|
||||||
Change in deferred policy acquisition costs (1)
|
|
(146
|
)
|
|
506
|
|
|
(652
|
)
|
|
661
|
|
|
1,594
|
|
|
(933
|
)
|
||||||
Total benefits, losses and expenses
|
|
45,961
|
|
|
52,032
|
|
|
(6,071
|
)
|
|
90,405
|
|
|
97,634
|
|
|
(7,229
|
)
|
||||||
Income before federal income taxes and other items
|
|
$
|
4,173
|
|
|
$
|
5,910
|
|
|
$
|
(1,737
|
)
|
|
$
|
6,215
|
|
|
$
|
8,834
|
|
|
$
|
(2,619
|
)
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Three months ended June 30,
|
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Medicare Supplement
|
|
$
|
18,870
|
|
|
$
|
17,638
|
|
|
$
|
1,232
|
|
|
|
$
|
37,229
|
|
|
$
|
34,904
|
|
|
$
|
2,325
|
|
MGU
|
|
8,562
|
|
|
15,635
|
|
|
(7,073
|
)
|
|
|
14,986
|
|
|
23,002
|
|
|
(8,016
|
)
|
||||||
Supplemental insurance
|
|
5,434
|
|
|
6,657
|
|
|
(1,223
|
)
|
|
|
10,889
|
|
|
13,314
|
|
|
(2,425
|
)
|
||||||
Credit Health
|
|
4,582
|
|
|
4,425
|
|
|
157
|
|
|
|
8,983
|
|
|
8,915
|
|
|
68
|
|
||||||
Medical expense
|
|
2,411
|
|
|
2,809
|
|
|
(398
|
)
|
|
|
4,847
|
|
|
5,683
|
|
|
(836
|
)
|
||||||
All other
|
|
2,365
|
|
|
1,706
|
|
|
659
|
|
|
|
3,971
|
|
|
4,067
|
|
|
(96
|
)
|
||||||
Total
|
|
$
|
42,224
|
|
|
$
|
48,870
|
|
|
$
|
(6,646
|
)
|
|
|
$
|
80,905
|
|
|
$
|
89,885
|
|
|
$
|
(8,980
|
)
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Medicare Supplement
|
|
$
|
15,282
|
|
|
$
|
13,451
|
|
|
$
|
1,831
|
|
|
$
|
30,418
|
|
|
$
|
26,667
|
|
|
$
|
3,751
|
|
MGU
|
|
6,665
|
|
|
13,992
|
|
|
(7,327
|
)
|
|
12,761
|
|
|
20,462
|
|
|
(7,701
|
)
|
||||||
Supplemental insurance
|
|
2,261
|
|
|
1,971
|
|
|
290
|
|
|
4,272
|
|
|
4,337
|
|
|
(65
|
)
|
||||||
Credit Health
|
|
437
|
|
|
1,110
|
|
|
(673
|
)
|
|
1,473
|
|
|
2,362
|
|
|
(889
|
)
|
||||||
Medical expense
|
|
1,262
|
|
|
2,046
|
|
|
(784
|
)
|
|
2,363
|
|
|
3,603
|
|
|
(1,240
|
)
|
||||||
All other
|
|
801
|
|
|
(260
|
)
|
|
1,061
|
|
|
1,188
|
|
|
3,019
|
|
|
(1,831
|
)
|
||||||
Total
|
|
$
|
26,708
|
|
|
$
|
32,310
|
|
|
$
|
(5,602
|
)
|
|
$
|
52,475
|
|
|
$
|
60,450
|
|
|
$
|
(7,975
|
)
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Acquisition cost capitalized
|
|
$
|
3,457
|
|
|
$
|
3,119
|
|
|
$
|
338
|
|
|
$
|
6,544
|
|
|
$
|
5,931
|
|
|
$
|
613
|
|
Amortization of DAC
|
|
(3,311
|
)
|
|
(3,625
|
)
|
|
314
|
|
|
(7,205
|
)
|
|
(7,525
|
)
|
|
320
|
|
||||||
Change in DAC
|
|
$
|
146
|
|
|
$
|
(506
|
)
|
|
$
|
652
|
|
|
$
|
(661
|
)
|
|
$
|
(1,594
|
)
|
|
$
|
933
|
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
PREMIUMS AND OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums written
|
|
$
|
403,977
|
|
|
$
|
395,676
|
|
|
$
|
8,301
|
|
|
$
|
789,653
|
|
|
$
|
775,181
|
|
|
$
|
14,472
|
|
Net premiums earned
|
|
$
|
371,739
|
|
|
$
|
360,047
|
|
|
$
|
11,692
|
|
|
$
|
742,920
|
|
|
$
|
712,020
|
|
|
$
|
30,900
|
|
Net investment income
|
|
16,706
|
|
|
15,493
|
|
|
1,213
|
|
|
31,728
|
|
|
31,354
|
|
|
374
|
|
||||||
Other income
|
|
2,830
|
|
|
2,264
|
|
|
566
|
|
|
5,552
|
|
|
4,327
|
|
|
1,225
|
|
||||||
Total premiums and other revenues
|
|
391,275
|
|
|
377,804
|
|
|
13,471
|
|
|
780,200
|
|
|
747,701
|
|
|
32,499
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Claims incurred
|
|
271,608
|
|
|
280,126
|
|
|
(8,518
|
)
|
|
509,752
|
|
|
522,616
|
|
|
(12,864
|
)
|
||||||
Commissions for acquiring and servicing policies
|
|
68,583
|
|
|
70,865
|
|
|
(2,282
|
)
|
|
135,742
|
|
|
140,021
|
|
|
(4,279
|
)
|
||||||
Other operating expenses
|
|
49,681
|
|
|
45,166
|
|
|
4,515
|
|
|
101,566
|
|
|
92,967
|
|
|
8,599
|
|
||||||
Change in deferred policy acquisition costs (1)
|
|
(3,588
|
)
|
|
(4,562
|
)
|
|
974
|
|
|
(3,171
|
)
|
|
(7,300
|
)
|
|
4,129
|
|
||||||
Total benefits, losses and expenses
|
|
386,284
|
|
|
391,595
|
|
|
(5,311
|
)
|
|
743,889
|
|
|
748,304
|
|
|
(4,415
|
)
|
||||||
Income (Loss) before federal income taxes and other items
|
|
$
|
4,991
|
|
|
$
|
(13,791
|
)
|
|
$
|
18,782
|
|
|
$
|
36,311
|
|
|
$
|
(603
|
)
|
|
$
|
36,914
|
|
Loss ratio
|
|
73.1
|
%
|
|
77.8
|
%
|
|
(4.7
|
)%
|
|
68.6
|
%
|
|
73.4
|
%
|
|
(4.8
|
)%
|
||||||
Underwriting expense ratio
|
|
30.8
|
|
|
31.0
|
|
|
(0.2
|
)
|
|
31.5
|
|
|
31.7
|
|
|
(0.2
|
)
|
||||||
Combined ratio
|
|
103.9
|
%
|
|
108.8
|
%
|
|
(4.9
|
)%
|
|
100.1
|
%
|
|
105.1
|
%
|
|
(5.0
|
)%
|
||||||
Impact of catastrophe events on combined ratio
|
|
7.7
|
|
|
11.8
|
|
|
(4.1
|
)
|
|
5.9
|
|
|
7.1
|
|
|
(1.2
|
)
|
||||||
Combined ratio without impact of catastrophe events
|
|
96.2
|
%
|
|
97.0
|
%
|
|
(0.8
|
)%
|
|
94.2
|
%
|
|
98.0
|
%
|
|
(3.8
|
)%
|
||||||
Gross catastrophe losses
|
|
$
|
28,234
|
|
|
$
|
42,529
|
|
|
$
|
(14,295
|
)
|
|
$
|
44,004
|
|
|
$
|
50,831
|
|
|
$
|
(6,827
|
)
|
Net catastrophe losses
|
|
$
|
28,616
|
|
|
$
|
42,121
|
|
|
$
|
(13,505
|
)
|
|
$
|
44,210
|
|
|
$
|
53,003
|
|
|
$
|
(8,793
|
)
|
(1)
|
A negative amount of net change indicates more expense was deferred than amortized and represents a decrease to expenses in the period indicated.
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automobile
|
|
$
|
140,913
|
|
|
$
|
139,878
|
|
|
$
|
1,035
|
|
|
$
|
287,222
|
|
|
$
|
281,737
|
|
|
$
|
5,485
|
|
Homeowner
|
|
78,513
|
|
|
75,759
|
|
|
2,754
|
|
|
140,181
|
|
|
134,478
|
|
|
5,703
|
|
||||||
Other Personal
|
|
14,651
|
|
|
13,098
|
|
|
1,553
|
|
|
27,959
|
|
|
25,472
|
|
|
2,487
|
|
||||||
Total net premiums written
|
|
$
|
234,077
|
|
|
$
|
228,735
|
|
|
$
|
5,342
|
|
|
$
|
455,362
|
|
|
$
|
441,687
|
|
|
$
|
13,675
|
|
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automobile
|
|
$
|
139,583
|
|
|
$
|
134,179
|
|
|
$
|
5,404
|
|
|
$
|
277,191
|
|
|
$
|
262,141
|
|
|
$
|
15,050
|
|
Homeowner
|
|
68,711
|
|
|
65,257
|
|
|
3,454
|
|
|
136,351
|
|
|
128,668
|
|
|
7,683
|
|
||||||
Other Personal
|
|
13,035
|
|
|
11,756
|
|
|
1,279
|
|
|
25,652
|
|
|
23,085
|
|
|
2,567
|
|
||||||
Total net premiums earned
|
|
$
|
221,329
|
|
|
$
|
211,192
|
|
|
$
|
10,137
|
|
|
$
|
439,194
|
|
|
$
|
413,894
|
|
|
$
|
25,300
|
|
Loss ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automobile
|
|
75.9
|
%
|
|
78.3
|
%
|
|
(2.4
|
)%
|
|
71.6
|
%
|
|
77.4
|
%
|
|
(5.8
|
)%
|
||||||
Homeowner
|
|
81.6
|
|
|
95.7
|
|
|
(14.1
|
)
|
|
73.3
|
|
|
80.5
|
|
|
(7.2
|
)
|
||||||
Other Personal
|
|
59.9
|
|
|
69.2
|
|
|
(9.3
|
)
|
|
58.8
|
|
|
69.9
|
|
|
(11.1
|
)
|
||||||
Personal line loss ratio
|
|
76.6
|
%
|
|
83.1
|
%
|
|
(6.5
|
)%
|
|
71.4
|
%
|
|
78.0
|
%
|
|
(6.6
|
)%
|
||||||
Combined Ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Automobile
|
|
99.1
|
%
|
|
101.2
|
%
|
|
(2.1
|
)%
|
|
94.9
|
%
|
|
100.8
|
%
|
|
(5.9
|
)%
|
||||||
Homeowner
|
|
117.5
|
|
|
128.6
|
|
|
(11.1
|
)
|
|
109.3
|
|
|
114.8
|
|
|
(5.5
|
)
|
||||||
Other Personal
|
|
103.2
|
|
|
105.1
|
|
|
(1.9
|
)
|
|
104.1
|
|
|
107.1
|
|
|
(3.0
|
)
|
||||||
Personal line combined ratio
|
|
105.1
|
%
|
|
109.9
|
%
|
|
(4.8
|
)%
|
|
99.9
|
%
|
|
105.5
|
%
|
|
(5.6
|
)%
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Net premiums written
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Commercial
|
|
$
|
64,832
|
|
|
$
|
62,221
|
|
|
$
|
2,611
|
|
|
$
|
125,746
|
|
|
$
|
121,442
|
|
|
$
|
4,304
|
|
Agricultural Business
|
|
43,294
|
|
|
40,735
|
|
|
2,559
|
|
|
81,297
|
|
|
76,809
|
|
|
4,488
|
|
||||||
Automobile
|
|
34,652
|
|
|
31,385
|
|
|
3,267
|
|
|
69,134
|
|
|
63,299
|
|
|
5,835
|
|
||||||
Total net premiums written
|
|
$
|
142,778
|
|
|
$
|
134,341
|
|
|
$
|
8,437
|
|
|
$
|
276,177
|
|
|
$
|
261,550
|
|
|
$
|
14,627
|
|
Net premiums earned
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Commercial
|
|
$
|
54,982
|
|
|
$
|
51,564
|
|
|
$
|
3,418
|
|
|
$
|
109,781
|
|
|
$
|
101,541
|
|
|
$
|
8,240
|
|
Agricultural Business
|
|
37,399
|
|
|
35,572
|
|
|
1,827
|
|
|
74,006
|
|
|
70,267
|
|
|
3,739
|
|
||||||
Automobile
|
|
28,531
|
|
|
26,282
|
|
|
2,249
|
|
|
56,014
|
|
|
51,841
|
|
|
4,173
|
|
||||||
Total net premiums earned
|
|
$
|
120,912
|
|
|
$
|
113,418
|
|
|
$
|
7,494
|
|
|
$
|
239,801
|
|
|
$
|
223,649
|
|
|
$
|
16,152
|
|
Loss ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Commercial
|
|
55.7
|
%
|
|
47.1
|
%
|
|
8.6
|
%
|
|
50.3
|
%
|
|
51.0
|
%
|
|
(0.7
|
)%
|
||||||
Agricultural Business
|
|
71.2
|
|
|
82.3
|
|
|
(11.1
|
)
|
|
76.6
|
|
|
82.0
|
|
|
(5.4
|
)
|
||||||
Automobile
|
|
82.5
|
|
|
101.7
|
|
|
(19.2
|
)
|
|
77.9
|
|
|
83.2
|
|
|
(5.3
|
)
|
||||||
Commercial line loss ratio
|
|
66.9
|
%
|
|
70.8
|
%
|
|
(3.9
|
)%
|
|
64.8
|
%
|
|
68.2
|
%
|
|
(3.4
|
)%
|
||||||
Combined ratio
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Commercial
|
|
89.0
|
%
|
|
79.6
|
%
|
|
9.4
|
%
|
|
83.8
|
%
|
|
83.6
|
%
|
|
0.2
|
%
|
||||||
Agricultural Business
|
|
107.5
|
|
|
119.9
|
|
|
(12.4
|
)
|
|
113.7
|
|
|
120.4
|
|
|
(6.7
|
)
|
||||||
Automobile
|
|
107.2
|
|
|
125.8
|
|
|
(18.6
|
)
|
|
103.0
|
|
|
107.6
|
|
|
(4.6
|
)
|
||||||
Commercial line combined ratio
|
|
99.0
|
%
|
|
103.0
|
%
|
|
(4.0
|
)%
|
|
97.5
|
%
|
|
100.7
|
%
|
|
(3.2
|
)%
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
Net premiums written
|
|
$
|
27,122
|
|
|
$
|
32,600
|
|
|
$
|
(5,478
|
)
|
|
$
|
58,114
|
|
|
$
|
71,944
|
|
|
$
|
(13,830
|
)
|
Net premiums earned
|
|
29,498
|
|
|
35,437
|
|
|
(5,939
|
)
|
|
63,925
|
|
|
74,477
|
|
|
(10,552
|
)
|
||||||
Loss ratio
|
|
71.5
|
%
|
|
68.5
|
%
|
|
3.0
|
%
|
|
63.8
|
%
|
|
63.7
|
%
|
|
0.1
|
%
|
||||||
Combined ratio
|
|
115.3
|
%
|
|
120.4
|
%
|
|
(5.1
|
)%
|
|
111.6
|
%
|
|
116.2
|
%
|
|
(4.6
|
)%
|
|
|
Three months ended June 30,
|
|
|
|
Six months ended June 30,
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||||
OTHER REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net investment income
|
|
$
|
19,377
|
|
|
$
|
19,193
|
|
|
$
|
184
|
|
|
$
|
34,814
|
|
|
$
|
38,399
|
|
|
$
|
(3,585
|
)
|
Net realized investment gains (losses)
|
|
(9,905
|
)
|
|
5,007
|
|
|
(14,912
|
)
|
|
(6,958
|
)
|
|
6,051
|
|
|
(13,009
|
)
|
||||||
Net gains on equity securities
|
|
67,060
|
|
|
57,162
|
|
|
9,898
|
|
|
273,437
|
|
|
23,992
|
|
|
249,445
|
|
||||||
Other Income
|
|
967
|
|
|
1,067
|
|
|
(100
|
)
|
|
3,033
|
|
|
2,880
|
|
|
153
|
|
||||||
Total other revenues
|
|
77,499
|
|
|
82,429
|
|
|
(4,930
|
)
|
|
304,326
|
|
|
71,322
|
|
|
233,004
|
|
||||||
BENEFITS, LOSSES AND EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other operating expenses
|
|
9,127
|
|
|
8,649
|
|
|
478
|
|
|
18,408
|
|
|
18,615
|
|
|
(207
|
)
|
||||||
Total benefits, losses and expenses
|
|
9,127
|
|
|
8,649
|
|
|
478
|
|
|
18,408
|
|
|
18,615
|
|
|
(207
|
)
|
||||||
Income before federal income taxes and other items
|
|
$
|
68,372
|
|
|
$
|
73,780
|
|
|
$
|
(5,408
|
)
|
|
$
|
285,918
|
|
|
$
|
52,707
|
|
|
$
|
233,211
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
|
Change
|
||||||
Held-to-Maturity
|
|
|
|
|
|
|
||||||
Gains
|
|
$
|
285,854
|
|
|
$
|
72,403
|
|
|
$
|
213,451
|
|
Losses
|
|
(11,412
|
)
|
|
(153,768
|
)
|
|
142,356
|
|
|||
Net gains (losses)
|
|
274,442
|
|
|
(81,365
|
)
|
|
355,807
|
|
|||
Available-for-Sale
|
|
|
|
|
|
|
||||||
Gains
|
|
250,349
|
|
|
61,286
|
|
|
189,063
|
|
|||
Losses
|
|
(16,789
|
)
|
|
(107,344
|
)
|
|
90,555
|
|
|||
Net gains (losses)
|
|
233,560
|
|
|
(46,058
|
)
|
|
279,618
|
|
|||
Total
|
|
$
|
508,002
|
|
|
$
|
(127,423
|
)
|
|
$
|
635,425
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||
American National stockholders’ equity, excluding accumulated other comprehensive income, net of tax (“AOCI”)
|
|
$
|
5,670,983
|
|
|
$
|
5,356,986
|
|
Accumulated other comprehensive income (loss)
|
|
86,852
|
|
|
(99,738
|
)
|
||
Total American National stockholders’ equity
|
|
$
|
5,757,835
|
|
|
$
|
5,257,248
|
|
|
|
June 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
|
Capital and
Retained Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
|
Capital and
Retained Earnings |
|
Accumulated
Other Comprehensive Income (Loss) |
|
Total
|
||||||||||||
Net income attributable to American National
|
|
$
|
357,057
|
|
|
$
|
—
|
|
|
$
|
357,057
|
|
|
$
|
158,995
|
|
|
$
|
—
|
|
|
$
|
158,995
|
|
Dividends to shareholders
|
|
(44,145
|
)
|
|
—
|
|
|
(44,145
|
)
|
|
(88,228
|
)
|
|
—
|
|
|
(88,228
|
)
|
||||||
Change in net unrealized gains (losses) on debt securities
|
|
—
|
|
|
183,874
|
|
|
183,874
|
|
|
—
|
|
|
(136,261
|
)
|
|
(136,261
|
)
|
||||||
Foreign currency transaction and translation adjustment
|
|
—
|
|
|
590
|
|
|
590
|
|
|
—
|
|
|
(900
|
)
|
|
(900
|
)
|
||||||
Defined benefit pension plan adjustment
|
|
—
|
|
|
2,911
|
|
|
2,911
|
|
|
—
|
|
|
22,326
|
|
|
22,326
|
|
||||||
Cumulative effect of accounting change
|
|
785
|
|
|
(785
|
)
|
|
—
|
|
|
687,051
|
|
|
(627,119
|
)
|
|
59,932
|
|
||||||
Other
|
|
300
|
|
|
—
|
|
|
300
|
|
|
(5,375
|
)
|
|
—
|
|
|
(5,375
|
)
|
||||||
Total
|
|
$
|
313,997
|
|
|
$
|
186,590
|
|
|
$
|
500,587
|
|
|
$
|
752,443
|
|
|
$
|
(741,954
|
)
|
|
$
|
10,489
|
|
ITEM 6.
|
EXHIBITS
|
Exhibit
Number
|
|
Basic Documents
|
|
|
|
3.1
|
|
|
|
|
|
3.2
|
|
|
|
|
|
10.10
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
101
|
|
The following unaudited financial information from American National Insurance Company’s Quarterly Report on Form 10-Q for six months ended June 30, 2019 formatted in eXtensible Business Reporting Language (“XBRL”): (i) Consolidated Statements of Financial Position, (ii) Consolidated Statements of Operations, (iii) Consolidated Statements of Comprehensive Income (Loss), (iv) Consolidated Statements of Changes in Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to the Unaudited Consolidated Financial Statements. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
|
By:
|
|
/s/ James E. Pozzi
|
Name:
|
|
James E. Pozzi
|
Title:
|
|
President and Chief Executive Officer
|
|
|
|
By:
|
|
/s/ Timothy A. Walsh
|
Name:
|
|
Timothy A.Walsh
|
Title:
|
|
Executive Vice President, CFO, Treasurer and ML and P&C Operations
|
(a)
|
Except as hereinafter provided, "Compensation" for any Plan Year shall mean all payments made by an Employer (in the course of the Employer's trade or business) to a Participant for services for which the Employer is required to furnish the employee a written statement under Code Sections 6041(d), 6051(a)(3), and 6052 (W-2 or equivalent).
|
(b)
|
Compensation shall include any amount which is contributed by the Employer pursuant to a salary reduction agreement and which is not includible in the gross income of the employee under Sections 125, 132(1)(4), 402(e)(3), 402(h)(1)(B) or 403(b) of the Code.
|
(c)
|
Compensation shall not include reimbursements or other expense allowances, fringe benefits (cash or non-cash), moving expenses, deferred compensation and welfare benefits.
|
(d)
|
Compensation shall not include any amount otherwise includable in Compensation that results from restricted stock, restricted stock units, book value units or stock appreciation rights or Christmas bonuses.
|
(e)
|
In determining the Employer Matching Contribution to which a Participant is entitled under Article IV, the Participant's Compensation shall be determined before any Deferral made under this Plan.
|
|
/s/ James E. Pozzi
|
James E. Pozzi
|
President and Chief Executive Officer
|
(Principal Executive Officer)
|
|
Date: August 6, 2019
|
|
/s/ Timothy A. Walsh
|
Timothy A. Walsh
|
Executive Vice President,
|
CFO, Treasurer and ML and P&C Operations
|
(Principal Financial Officer)
|
|
Date: August 6, 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)
|