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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Citizens Inc | NYSE:CIA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.03 | -1.40% | 2.11 | 2.17 | 2.05 | 2.13 | 118,280 | 00:58:25 |
|
CITIZENS, INC.
|
(Exact name of registrant as specified in its charter)
|
Colorado
|
84-0755371
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
|
|
400 East Anderson Lane, Austin, TX
|
78752
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(512) 837-7100
|
|
|
N/A
|
|
|
|
|
|
Page Number
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Part I.
|
Financial Information
|
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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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Part II.
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Other Information
|
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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.
|
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Financial Position
(In thousands)
|
||||||
|
|
|
|
|||
|
|
|
|
|||
|
June 30, 2017
|
|
December 31, 2016
|
|||
Assets
|
(Unaudited)
|
|
|
|||
Investments:
|
|
|
|
|||
Fixed maturities available-for-sale, at fair value (cost: $902,939 and $860,473 in 2017 and 2016, respectively)
|
$
|
933,697
|
|
|
881,668
|
|
Fixed maturities held-to-maturity, at amortized cost (fair value: $248,716 and $252,545 in 2017 and 2016, respectively)
|
241,644
|
|
|
247,004
|
|
|
Equity securities available-for-sale, at fair value (cost: $15,620 and $17,765 in 2017 and 2016, respectively)
|
16,143
|
|
|
18,159
|
|
|
Mortgage loans on real estate
|
198
|
|
|
232
|
|
|
Policy loans
|
69,382
|
|
|
66,672
|
|
|
Real estate held for investment (less $1,133 and $1,083 accumulated depreciation in 2017 and 2016, respectively)
|
5,869
|
|
|
5,919
|
|
|
Real estate held for sale (less $1,008 accumulated depreciation in 2016)
|
—
|
|
|
1,939
|
|
|
Other long-term investments
|
37
|
|
|
38
|
|
|
Short-term investments
|
—
|
|
|
508
|
|
|
Total investments
|
1,266,970
|
|
|
1,222,139
|
|
|
Cash and cash equivalents
|
33,749
|
|
|
35,510
|
|
|
Accrued investment income
|
18,667
|
|
|
17,903
|
|
|
Reinsurance recoverable
|
3,817
|
|
|
3,862
|
|
|
Deferred policy acquisition costs
|
166,478
|
|
|
167,790
|
|
|
Cost of customer relationships acquired
|
18,350
|
|
|
19,415
|
|
|
Goodwill
|
17,255
|
|
|
17,255
|
|
|
Other intangible assets
|
964
|
|
|
966
|
|
|
Deferred tax asset
|
75,462
|
|
|
76,869
|
|
|
Property and equipment, net
|
8,400
|
|
|
7,890
|
|
|
Due premiums, net (less $1,471 and $1,600 allowance for doubtful accounts in 2017 and 2016, respectively)
|
11,655
|
|
|
12,852
|
|
|
Prepaid expenses
|
1,362
|
|
|
299
|
|
|
Other assets
|
1,043
|
|
|
918
|
|
|
Total assets
|
$
|
1,624,172
|
|
|
1,583,668
|
|
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Financial Position
(In thousands, except share amounts)
|
||||||
|
|
|
|
|||
|
|
|
|
|||
|
June 30, 2017
|
|
December 31, 2016
|
|||
Liabilities and Stockholders' Equity
|
(Unaudited)
|
|
|
|||
Liabilities:
|
|
|
|
|||
Policy liabilities:
|
|
|
|
|||
Future policy benefit reserves:
|
|
|
|
|||
Life insurance
|
$
|
1,090,835
|
|
|
1,059,722
|
|
Annuities
|
72,016
|
|
|
69,578
|
|
|
Accident and health
|
971
|
|
|
1,022
|
|
|
Dividend accumulations
|
22,099
|
|
|
20,897
|
|
|
Premiums paid in advance
|
52,289
|
|
|
48,198
|
|
|
Policy claims payable
|
7,739
|
|
|
9,538
|
|
|
Other policyholders' funds
|
8,388
|
|
|
7,744
|
|
|
Total policy liabilities
|
1,254,337
|
|
|
1,216,699
|
|
|
Commissions payable
|
2,223
|
|
|
3,540
|
|
|
Federal income tax payable
|
84,970
|
|
|
81,270
|
|
|
Payable for securities in process of settlement
|
—
|
|
|
3,061
|
|
|
Other liabilities
|
24,629
|
|
|
29,998
|
|
|
Total liabilities
|
1,366,159
|
|
|
1,334,568
|
|
|
Commitments and contingencies (Note 8)
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
Class A, no par value, 100,000,000 shares authorized, 52,215,852 shares issued and outstanding in 2017 and 2016, including shares in treasury of 3,135,738 in 2017 and 2016
|
259,383
|
|
|
259,383
|
|
|
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2017 and 2016
|
3,184
|
|
|
3,184
|
|
|
Accumulated deficit
|
(13,620
|
)
|
|
(16,248
|
)
|
|
Accumulated other comprehensive income:
|
|
|
|
|
|
|
Unrealized gains on securities, net of tax
|
20,077
|
|
|
13,792
|
|
|
Treasury stock, at cost
|
(11,011
|
)
|
|
(11,011
|
)
|
|
Total stockholders' equity
|
258,013
|
|
|
249,100
|
|
|
Total liabilities and stockholders' equity
|
$
|
1,624,172
|
|
|
1,583,668
|
|
|
2017
|
|
2016
|
||||||||||
Revenues:
|
|
|
|
||||||||||
Premiums:
|
|
|
|
|
|
||||||||
Life insurance
|
|
|
$
|
46,155
|
|
|
|
|
47,351
|
|
|||
Accident and health insurance
|
|
|
345
|
|
|
|
|
395
|
|
||||
Property insurance
|
|
|
1,239
|
|
|
|
|
1,261
|
|
||||
Net investment income
|
|
|
13,073
|
|
|
|
|
12,000
|
|
||||
Realized investment losses, net
|
|
|
(117
|
)
|
|
|
|
(26
|
)
|
||||
Other income
|
|
|
157
|
|
|
|
|
256
|
|
||||
Total revenues
|
|
|
60,852
|
|
|
|
|
61,237
|
|
||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
||||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
||||||
Claims and surrenders
|
|
|
18,952
|
|
|
|
|
20,969
|
|
||||
Increase in future policy benefit reserves
|
|
|
17,820
|
|
|
|
|
17,372
|
|
||||
Policyholders' dividends
|
|
|
1,501
|
|
|
|
|
1,816
|
|
||||
Total insurance benefits paid or provided
|
|
|
38,273
|
|
|
|
|
40,157
|
|
||||
Commissions
|
|
|
9,894
|
|
|
|
|
10,777
|
|
||||
Other general expenses
|
|
|
9,355
|
|
|
|
|
8,566
|
|
||||
Capitalization of deferred policy acquisition costs
|
|
|
(6,883
|
)
|
|
|
|
(8,103
|
)
|
||||
Amortization of deferred policy acquisition costs
|
|
|
7,642
|
|
|
|
|
6,879
|
|
||||
Amortization of cost of customer relationships acquired
|
|
|
475
|
|
|
|
|
402
|
|
||||
Total benefits and expenses
|
|
|
58,756
|
|
|
|
|
58,678
|
|
||||
Income before federal income tax
|
|
|
2,096
|
|
|
|
|
2,559
|
|
||||
Federal income tax expense
|
|
|
1,524
|
|
|
|
|
1,077
|
|
||||
Net income
|
|
|
572
|
|
|
|
|
1,482
|
|
||||
Per Share Amounts:
|
|
|
|
|
|
|
|
|
|
|
|||
Basic earnings per share of Class A common stock
|
$
|
0.01
|
|
|
|
|
|
0.03
|
|
|
|
|
|
Basic earnings per share of Class B common stock
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
|
||
Diluted earnings per share of Class A common stock
|
0.01
|
|
|
|
|
|
0.03
|
|
|
|
|
||
Diluted earnings per share of Class B common stock
|
0.01
|
|
|
|
|
|
0.01
|
|
|
|
|
||
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|||
Unrealized gains on available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
||
Unrealized holding gains arising during period
|
|
|
|
4,573
|
|
|
|
|
|
16,374
|
|
||
Reclassification adjustment for (gains) losses included in net income
|
|
|
|
111
|
|
|
|
|
|
20
|
|
||
Unrealized gains on available-for-sale securities, net
|
|
|
|
4,684
|
|
|
|
|
|
16,394
|
|
||
Income tax expense on unrealized gains on available-for-sale securities
|
|
|
|
1,639
|
|
|
|
|
|
5,738
|
|
||
Other comprehensive income
|
|
|
|
3,045
|
|
|
|
|
|
10,656
|
|
||
Comprehensive income
|
|
|
|
$
|
3,617
|
|
|
|
|
|
12,138
|
|
|
|
|
|
|
|
|
|
|
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Comprehensive Income
Six Months Ended June 30,
(In thousands, except per share amounts)
(Unaudited)
|
||||||||||||||
|
2017
|
|
2016
|
|||||||||||
Revenues:
|
|
|
|
|
|
|||||||||
Premiums:
|
|
|
|
|
|
|
|
|||||||
Life insurance
|
|
|
$
|
89,959
|
|
|
|
|
90,124
|
|
||||
Accident and health insurance
|
|
|
673
|
|
|
|
|
785
|
|
|||||
Property insurance
|
|
|
2,488
|
|
|
|
|
2,537
|
|
|||||
Net investment income
|
|
|
25,812
|
|
|
|
|
23,731
|
|
|||||
Realized investment gains (losses), net
|
|
|
1,146
|
|
|
|
|
(1,822
|
)
|
|||||
Other income
|
|
|
355
|
|
|
|
|
407
|
|
|||||
Total revenues
|
|
|
120,433
|
|
|
|
|
115,762
|
|
|||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|||||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|
|
|||||
Claims and surrenders
|
|
|
40,676
|
|
|
|
|
39,974
|
|
|||||
Increase in future policy benefit reserves
|
|
|
32,356
|
|
|
|
|
33,098
|
|
|||||
Policyholders' dividends
|
|
|
2,805
|
|
|
|
|
3,365
|
|
|||||
Total insurance benefits paid or provided
|
|
|
75,837
|
|
|
|
|
76,437
|
|
|||||
Commissions
|
|
|
19,819
|
|
|
|
|
20,245
|
|
|||||
Other general expenses
|
|
|
19,511
|
|
|
|
|
17,740
|
|
|||||
Capitalization of deferred policy acquisition costs
|
|
|
(13,784
|
)
|
|
|
|
(14,367
|
)
|
|||||
Amortization of deferred policy acquisition costs
|
|
|
15,017
|
|
|
|
|
13,510
|
|
|||||
Amortization of cost of customer relationships acquired
|
|
|
994
|
|
|
|
|
947
|
|
|||||
Total benefits and expenses
|
|
|
117,394
|
|
|
|
|
114,512
|
|
|||||
Income before federal income tax
|
|
|
3,039
|
|
|
|
|
1,250
|
|
|||||
Federal income tax expense
|
|
|
411
|
|
|
|
|
2,159
|
|
|||||
Net income (loss)
|
|
|
2,628
|
|
|
|
|
(909
|
)
|
|||||
Per Share Amounts:
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings (losses) per share of Class A common stock
|
$
|
0.05
|
|
|
|
|
|
$
|
(0.02
|
)
|
|
|
|
|
Basic earnings (losses) per share of Class B common stock
|
0.03
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|||
Diluted earnings (losses) per share of Class A common stock
|
0.05
|
|
|
|
|
|
(0.02
|
)
|
|
|
|
|||
Diluted earnings (losses) per share of Class B common stock
|
0.03
|
|
|
|
|
|
(0.01
|
)
|
|
|
|
|||
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Unrealized gains on available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|||
Unrealized holding gains arising during period
|
|
|
|
9,710
|
|
|
|
|
|
27,707
|
|
|||
Reclassification adjustment for (gains) losses included in net income
|
|
|
|
(41
|
)
|
|
|
|
|
1,816
|
|
|||
Unrealized gains on available-for-sale securities, net
|
|
|
|
9,669
|
|
|
|
|
|
29,523
|
|
|||
Income tax expense on unrealized gains on available-for-sale securities
|
|
|
|
3,384
|
|
|
|
|
|
10,333
|
|
|||
Other comprehensive income
|
|
|
|
6,285
|
|
|
|
|
|
19,190
|
|
|||
Comprehensive income
|
|
|
|
$
|
8,913
|
|
|
|
|
|
18,281
|
|
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Cash Flows
Six Months Ended June 30,
(In thousands)
(Unaudited)
|
||||||
|
2017
|
|
2016
|
|||
Cash flows from operating activities:
|
|
|
|
|||
Net income (loss)
|
$
|
2,628
|
|
|
(909
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
Realized (gains) losses on sale of investments and other assets
|
(1,146
|
)
|
|
1,822
|
|
|
Net deferred policy acquisition costs
|
1,233
|
|
|
(857
|
)
|
|
Amortization of cost of customer relationships acquired
|
994
|
|
|
947
|
|
|
Depreciation
|
504
|
|
|
405
|
|
|
Amortization of premiums and discounts on investments
|
8,283
|
|
|
6,966
|
|
|
Deferred federal income tax benefit
|
(1,977
|
)
|
|
(2,184
|
)
|
|
Change in:
|
|
|
|
|
|
|
Accrued investment income
|
(764
|
)
|
|
(1,313
|
)
|
|
Reinsurance recoverable
|
45
|
|
|
98
|
|
|
Due premiums
|
1,197
|
|
|
334
|
|
|
Future policy benefit reserves
|
32,335
|
|
|
31,890
|
|
|
Other policyholders' liabilities
|
4,138
|
|
|
2,316
|
|
|
Federal income tax payable
|
3,700
|
|
|
3,005
|
|
|
Commissions payable and other liabilities
|
(6,686
|
)
|
|
1,556
|
|
|
Other, net
|
(1,061
|
)
|
|
(1,031
|
)
|
|
Net cash provided by operating activities
|
43,423
|
|
|
43,045
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Sale of fixed maturities, available-for-sale
|
508
|
|
|
—
|
|
|
Maturities and calls of fixed maturities, available-for-sale
|
43,755
|
|
|
37,625
|
|
|
Maturities and calls of fixed maturities, held-to-maturity
|
3,390
|
|
|
6,275
|
|
|
Purchase of fixed maturities, available-for-sale
|
(96,279
|
)
|
|
(109,613
|
)
|
|
Purchase of fixed maturities, held-to-maturity
|
—
|
|
|
(5,507
|
)
|
|
Sale of equity securities, available-for-sale
|
1,940
|
|
|
403
|
|
|
Calls of equity securities, available-for-sale
|
300
|
|
|
273
|
|
|
Principal payments on mortgage loans
|
34
|
|
|
126
|
|
|
Increase in policy loans, net
|
(2,710
|
)
|
|
(2,991
|
)
|
|
Sale of other long-term investments and real estate
|
3,040
|
|
|
—
|
|
|
Purchase of property and equipment
|
(952
|
)
|
|
(527
|
)
|
|
Maturity of short-term investments
|
500
|
|
|
250
|
|
|
Purchase of short-term investments
|
—
|
|
|
(522
|
)
|
|
Net cash used in investing activities
|
(46,474
|
)
|
|
(74,208
|
)
|
|
|
|
|
|
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
Six Months Ended June 30,
(In thousands)
(Unaudited)
|
||||||
|
|
|
|
|||
|
2017
|
|
2016
|
|||
Cash flows from financing activities:
|
|
|
|
|||
Annuity deposits
|
$
|
4,365
|
|
|
3,980
|
|
Annuity withdrawals
|
(3,075
|
)
|
|
(2,707
|
)
|
|
Net cash provided by financing activities
|
1,290
|
|
|
1,273
|
|
|
Net decrease in cash and cash equivalents
|
(1,761
|
)
|
|
(29,890
|
)
|
|
Cash and cash equivalents at beginning of year
|
35,510
|
|
|
82,827
|
|
|
Cash and cash equivalents at end of period
|
$
|
33,749
|
|
|
52,937
|
|
Supplemental disclosures of operating activities:
|
|
|
|
|
|
|
Cash paid (received) during the period for income taxes, net
|
$
|
(1,312
|
)
|
|
1,339
|
|
|
Three Months Ended
|
|||||||||||
|
June 30, 2017
|
|||||||||||
|
Life
Insurance |
|
Home
Service Insurance |
|
Other
Non-Insurance Enterprises |
|
Consolidated
|
|||||
|
(In thousands)
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
35,960
|
|
|
11,779
|
|
|
—
|
|
|
47,739
|
|
Net investment income
|
9,496
|
|
|
3,250
|
|
|
327
|
|
|
13,073
|
|
|
Realized investment gains (losses), net
|
(141
|
)
|
|
24
|
|
|
—
|
|
|
(117
|
)
|
|
Other income
|
177
|
|
|
3
|
|
|
(23
|
)
|
|
157
|
|
|
Total revenue
|
45,492
|
|
|
15,056
|
|
|
304
|
|
|
60,852
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and surrenders
|
13,842
|
|
|
5,110
|
|
|
—
|
|
|
18,952
|
|
|
Increase in future policy benefit reserves
|
16,513
|
|
|
1,307
|
|
|
—
|
|
|
17,820
|
|
|
Policyholders' dividends
|
1,490
|
|
|
11
|
|
|
—
|
|
|
1,501
|
|
|
Total insurance benefits paid or provided
|
31,845
|
|
|
6,428
|
|
|
—
|
|
|
38,273
|
|
|
Commissions
|
5,866
|
|
|
4,028
|
|
|
—
|
|
|
9,894
|
|
|
Other general expenses
|
4,327
|
|
|
4,299
|
|
|
729
|
|
|
9,355
|
|
|
Capitalization of deferred policy acquisition costs
|
(5,223
|
)
|
|
(1,660
|
)
|
|
—
|
|
|
(6,883
|
)
|
|
Amortization of deferred policy acquisition costs
|
6,613
|
|
|
1,029
|
|
|
—
|
|
|
7,642
|
|
|
Amortization of cost of customer relationships acquired
|
144
|
|
|
331
|
|
|
—
|
|
|
475
|
|
|
Total benefits and expenses
|
43,572
|
|
|
14,455
|
|
|
729
|
|
|
58,756
|
|
|
Income (loss) before income tax expense
|
$
|
1,920
|
|
|
601
|
|
|
(425
|
)
|
|
2,096
|
|
|
Six Months Ended
|
|||||||||||
|
June 30, 2017
|
|||||||||||
|
Life
Insurance
|
|
Home
Service
Insurance
|
|
Other
Non-Insurance
Enterprises
|
|
Consolidated
|
|||||
|
(In thousands)
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
69,523
|
|
|
23,597
|
|
|
—
|
|
|
93,120
|
|
Net investment income
|
18,627
|
|
|
6,509
|
|
|
676
|
|
|
25,812
|
|
|
Realized investment gains (losses), net
|
(64
|
)
|
|
1,210
|
|
|
—
|
|
|
1,146
|
|
|
Other income
|
295
|
|
|
2
|
|
|
58
|
|
|
355
|
|
|
Total revenue
|
88,381
|
|
|
31,318
|
|
|
734
|
|
|
120,433
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and surrenders
|
29,518
|
|
|
11,158
|
|
|
—
|
|
|
40,676
|
|
|
Increase in future policy benefit reserves
|
29,773
|
|
|
2,583
|
|
|
—
|
|
|
32,356
|
|
|
Policyholders' dividends
|
2,785
|
|
|
20
|
|
|
—
|
|
|
2,805
|
|
|
Total insurance benefits paid or provided
|
62,076
|
|
|
13,761
|
|
|
—
|
|
|
75,837
|
|
|
Commissions
|
11,873
|
|
|
7,946
|
|
|
—
|
|
|
19,819
|
|
|
Other general expenses
|
8,199
|
|
|
9,157
|
|
|
2,155
|
|
|
19,511
|
|
|
Capitalization of deferred policy acquisition costs
|
(10,601
|
)
|
|
(3,183
|
)
|
|
—
|
|
|
(13,784
|
)
|
|
Amortization of deferred policy acquisition costs
|
12,919
|
|
|
2,098
|
|
|
—
|
|
|
15,017
|
|
|
Amortization of cost of customer relationships acquired
|
316
|
|
|
678
|
|
|
—
|
|
|
994
|
|
|
Total benefits and expenses
|
84,782
|
|
|
30,457
|
|
|
2,155
|
|
|
117,394
|
|
|
Income (loss) before income tax expense
|
$
|
3,599
|
|
|
861
|
|
|
(1,421
|
)
|
|
3,039
|
|
|
Three Months Ended
|
|||||||||||
|
June 30, 2016
|
|||||||||||
|
Life
Insurance |
|
Home
Service Insurance |
|
Other
Non-Insurance Enterprises |
|
Consolidated
|
|||||
|
(In thousands)
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
37,111
|
|
|
11,896
|
|
|
—
|
|
|
49,007
|
|
Net investment income
|
8,107
|
|
|
3,505
|
|
|
388
|
|
|
12,000
|
|
|
Realized investment gains (losses), net
|
208
|
|
|
(234
|
)
|
|
—
|
|
|
(26
|
)
|
|
Other income
|
256
|
|
|
—
|
|
|
—
|
|
|
256
|
|
|
Total revenue
|
45,682
|
|
|
15,167
|
|
|
388
|
|
|
61,237
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and surrenders
|
15,157
|
|
|
5,812
|
|
|
—
|
|
|
20,969
|
|
|
Increase in future policy benefit reserves
|
15,976
|
|
|
1,396
|
|
|
—
|
|
|
17,372
|
|
|
Policyholders' dividends
|
1,802
|
|
|
14
|
|
|
—
|
|
|
1,816
|
|
|
Total insurance benefits paid or provided
|
32,935
|
|
|
7,222
|
|
|
—
|
|
|
40,157
|
|
|
Commissions
|
6,768
|
|
|
4,009
|
|
|
—
|
|
|
10,777
|
|
|
Other general expenses
|
4,041
|
|
|
3,557
|
|
|
968
|
|
|
8,566
|
|
|
Capitalization of deferred policy acquisition costs
|
(6,492
|
)
|
|
(1,611
|
)
|
|
—
|
|
|
(8,103
|
)
|
|
Amortization of deferred policy acquisition costs
|
6,114
|
|
|
765
|
|
|
—
|
|
|
6,879
|
|
|
Amortization of cost of customer relationships acquired
|
130
|
|
|
272
|
|
|
—
|
|
|
402
|
|
|
Total benefits and expenses
|
43,496
|
|
|
14,214
|
|
|
968
|
|
|
58,678
|
|
|
Income (loss) before income tax expense
|
$
|
2,186
|
|
|
953
|
|
|
(580
|
)
|
|
2,559
|
|
|
Six Months Ended
|
|||||||||||
|
June 30, 2016
|
|||||||||||
|
Life
Insurance
|
|
Home
Service
Insurance
|
|
Other
Non-Insurance
Enterprises
|
|
Consolidated
|
|||||
|
(In thousands)
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
69,959
|
|
|
23,487
|
|
|
—
|
|
|
93,446
|
|
Net investment income
|
16,061
|
|
|
6,919
|
|
|
751
|
|
|
23,731
|
|
|
Realized investment losses, net
|
(660
|
)
|
|
(1,162
|
)
|
|
—
|
|
|
(1,822
|
)
|
|
Other income
|
371
|
|
|
3
|
|
|
33
|
|
|
407
|
|
|
Total revenue
|
85,731
|
|
|
29,247
|
|
|
784
|
|
|
115,762
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|
|
|
|
|
Claims and surrenders
|
28,621
|
|
|
11,353
|
|
|
—
|
|
|
39,974
|
|
|
Increase in future policy benefit reserves
|
30,516
|
|
|
2,582
|
|
|
—
|
|
|
33,098
|
|
|
Policyholders' dividends
|
3,338
|
|
|
27
|
|
|
—
|
|
|
3,365
|
|
|
Total insurance benefits paid or provided
|
62,475
|
|
|
13,962
|
|
|
—
|
|
|
76,437
|
|
|
Commissions
|
12,571
|
|
|
7,674
|
|
|
—
|
|
|
20,245
|
|
|
Other general expenses
|
8,125
|
|
|
7,747
|
|
|
1,868
|
|
|
17,740
|
|
|
Capitalization of deferred policy acquisition costs
|
(11,418
|
)
|
|
(2,949
|
)
|
|
—
|
|
|
(14,367
|
)
|
|
Amortization of deferred policy acquisition costs
|
11,918
|
|
|
1,592
|
|
|
—
|
|
|
13,510
|
|
|
Amortization of cost of customer relationships acquired
|
300
|
|
|
647
|
|
|
—
|
|
|
947
|
|
|
Total benefits and expenses
|
83,971
|
|
|
28,673
|
|
|
1,868
|
|
|
114,512
|
|
|
Income (loss) before income tax expense
|
$
|
1,760
|
|
|
574
|
|
|
(1,084
|
)
|
|
1,250
|
|
|
Three Months Ended
|
|||||
|
June 30, 2017
|
|
June 30, 2016
|
|||
|
(In thousands,
except per share amounts) |
|||||
Basic and diluted earnings per share:
|
|
|
|
|||
Numerator:
|
|
|
|
|||
Net income
|
$
|
572
|
|
|
1,482
|
|
Net income allocated to Class A common stock
|
566
|
|
|
1,467
|
|
|
Net income allocated to Class B common stock
|
6
|
|
|
15
|
|
|
Net income
|
$
|
572
|
|
|
1,482
|
|
Denominator:
|
|
|
|
|||
Weighted average shares of Class A outstanding - basic
|
49,080
|
|
|
49,080
|
|
|
Weighted average shares of Class A outstanding - diluted
|
49,080
|
|
|
49,080
|
|
|
Weighted average shares of Class B outstanding - basic and diluted
|
1,002
|
|
|
1,002
|
|
|
Basic earnings per share of Class A common stock
|
$
|
0.01
|
|
|
0.03
|
|
Basic earnings per share of Class B common stock
|
0.01
|
|
|
0.01
|
|
|
Diluted earnings per share of Class A common stock
|
0.01
|
|
|
0.03
|
|
|
Diluted earnings per share of Class B common stock
|
0.01
|
|
|
0.01
|
|
|
Six Months Ended
|
|||||
|
June 30, 2017
|
|
June 30, 2016
|
|||
|
(In thousands,
except per share amounts)
|
|||||
Basic and diluted earnings per share:
|
|
|
|
|||
Numerator:
|
|
|
|
|||
Net income (loss)
|
$
|
2,628
|
|
|
(909
|
)
|
Net income (loss) allocated to Class A common stock
|
$
|
2,601
|
|
|
(900
|
)
|
Net income (loss) allocated to Class B common stock
|
27
|
|
|
(9
|
)
|
|
Net income (loss)
|
$
|
2,628
|
|
|
(909
|
)
|
Denominator:
|
|
|
|
|||
Weighted average shares of Class A outstanding - basic
|
49,080
|
|
|
49,080
|
|
|
Weighted average shares of Class A outstanding - diluted
|
49,080
|
|
|
49,080
|
|
|
Weighted average shares of Class B outstanding - basic and diluted
|
1,002
|
|
|
1,002
|
|
|
Basic earnings (losses) per share of Class A common stock
|
$
|
0.05
|
|
|
(0.02
|
)
|
Basic earnings (losses) per share of Class B common stock
|
0.03
|
|
|
(0.01
|
)
|
|
Diluted earnings (losses) per share of Class A common stock
|
0.05
|
|
|
(0.02
|
)
|
|
Diluted earnings (losses) per share of Class B common stock
|
0.03
|
|
|
(0.01
|
)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
|
Carrying
Value
|
|
% of Total
Carrying Value
|
|
Carrying
Value
|
|
% of Total
Carrying Value
|
||||||
|
(In thousands)
|
|
|
|
(In thousands)
|
|
|
||||||
Fixed maturity securities
|
$
|
1,175,341
|
|
|
90.4
|
|
|
$
|
1,128,672
|
|
|
89.7
|
|
Equity securities
|
16,143
|
|
|
1.2
|
|
|
18,159
|
|
|
1.6
|
|
||
Mortgage loans
|
198
|
|
|
—
|
|
|
232
|
|
|
0.0
|
|
||
Policy loans
|
69,382
|
|
|
5.3
|
|
|
66,672
|
|
|
5.3
|
|
||
Real estate and other long-term investments
|
5,906
|
|
|
0.5
|
|
|
7,896
|
|
|
0.6
|
|
||
Short-term investments
|
—
|
|
|
—
|
|
|
508
|
|
|
—
|
|
||
Cash and cash equivalents
|
33,749
|
|
|
2.6
|
|
|
35,510
|
|
|
2.8
|
|
||
Total cash, cash equivalents and investments
|
$
|
1,300,719
|
|
|
100.0
|
|
|
$
|
1,257,649
|
|
|
100.0
|
|
|
June 30, 2017
|
|||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|||||
|
(In thousands)
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|||||
Available-for-sale:
|
|
|
|
|
|
|
|
|||||
U.S. Treasury securities
|
$
|
9,895
|
|
|
2,249
|
|
|
—
|
|
|
12,144
|
|
U.S. Government-sponsored enterprises
|
3,582
|
|
|
966
|
|
|
—
|
|
|
4,548
|
|
|
States and political subdivisions
|
564,289
|
|
|
17,400
|
|
|
3,162
|
|
|
578,527
|
|
|
Foreign governments
|
103
|
|
|
22
|
|
|
—
|
|
|
125
|
|
|
Corporate
|
323,014
|
|
|
15,308
|
|
|
2,176
|
|
|
336,146
|
|
|
Commercial mortgage-backed
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
Residential mortgage-backed
|
2,048
|
|
|
153
|
|
|
2
|
|
|
2,199
|
|
|
Total available-for-sale securities
|
902,939
|
|
|
36,098
|
|
|
5,340
|
|
|
933,697
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
States and political subdivisions
|
220,674
|
|
|
7,819
|
|
|
740
|
|
|
227,753
|
|
|
Corporate
|
20,970
|
|
|
852
|
|
|
859
|
|
|
20,963
|
|
|
Total held-to-maturity securities
|
241,644
|
|
|
8,671
|
|
|
1,599
|
|
|
248,716
|
|
|
Total fixed maturities
|
$
|
1,144,583
|
|
|
44,769
|
|
|
6,939
|
|
|
1,182,413
|
|
|
|
|
|
|
|
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock mutual funds
|
$
|
2,867
|
|
|
211
|
|
|
—
|
|
|
3,078
|
|
Bond mutual funds
|
12,071
|
|
|
377
|
|
|
114
|
|
|
12,334
|
|
|
Common stock
|
22
|
|
|
—
|
|
|
2
|
|
|
20
|
|
|
Redeemable preferred stock
|
660
|
|
|
51
|
|
|
—
|
|
|
711
|
|
|
Total equity securities
|
$
|
15,620
|
|
|
639
|
|
|
116
|
|
|
16,143
|
|
|
December 31, 2016
|
|||||||||||
|
Cost or
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
|||||
|
(In thousands)
|
|||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|||||
U.S. Treasury securities
|
$
|
9,929
|
|
|
2,261
|
|
|
—
|
|
|
12,190
|
|
U.S. Government-sponsored enterprises
|
7,639
|
|
|
863
|
|
|
—
|
|
|
8,502
|
|
|
States and political subdivisions
|
563,279
|
|
|
15,017
|
|
|
5,022
|
|
|
573,274
|
|
|
Foreign governments
|
103
|
|
|
23
|
|
|
—
|
|
|
126
|
|
|
Corporate
|
277,226
|
|
|
12,095
|
|
|
4,222
|
|
|
285,099
|
|
|
Commercial mortgage-backed
|
50
|
|
|
1
|
|
|
—
|
|
|
51
|
|
|
Residential mortgage-backed
|
2,247
|
|
|
181
|
|
|
2
|
|
|
2,426
|
|
|
Total available-for-sale securities
|
860,473
|
|
|
30,441
|
|
|
9,246
|
|
|
881,668
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Government-sponsored enterprises
|
2,003
|
|
|
28
|
|
|
—
|
|
|
2,031
|
|
|
States and political subdivisions
|
223,966
|
|
|
6,916
|
|
|
1,599
|
|
|
229,283
|
|
|
Corporate
|
21,035
|
|
|
888
|
|
|
692
|
|
|
21,231
|
|
|
Total held-to-maturity securities
|
247,004
|
|
|
7,832
|
|
|
2,291
|
|
|
252,545
|
|
|
Total fixed maturity securities
|
$
|
1,107,477
|
|
|
38,273
|
|
|
11,537
|
|
|
1,134,213
|
|
|
|
|
|
|
|
|
|
|||||
Short-term investments
|
$
|
508
|
|
|
—
|
|
|
—
|
|
|
508
|
|
|
|
|
|
|
|
|
|
|||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock mutual funds
|
$
|
2,867
|
|
|
79
|
|
|
—
|
|
|
2,946
|
|
Bond mutual funds
|
14,040
|
|
|
265
|
|
|
108
|
|
|
14,197
|
|
|
Common stock
|
39
|
|
|
3
|
|
|
17
|
|
|
25
|
|
|
Redeemable preferred stock
|
819
|
|
|
174
|
|
|
2
|
|
|
991
|
|
|
Total equity securities
|
$
|
17,765
|
|
|
521
|
|
|
127
|
|
|
18,159
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
|
Less than 12 months
|
|
Greater than 12 months
|
|
Total
|
||||||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
||||||||||
|
(In thousands, except for # of securities)
|
||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
138,043
|
|
|
1,686
|
|
|
112
|
|
|
9,127
|
|
|
1,476
|
|
|
10
|
|
|
147,170
|
|
|
3,162
|
|
|
122
|
|
Corporate
|
70,235
|
|
|
1,561
|
|
|
51
|
|
|
1,576
|
|
|
615
|
|
|
6
|
|
|
71,811
|
|
|
2,176
|
|
|
57
|
|
|
Residential mortgage-backed
|
107
|
|
|
1
|
|
|
3
|
|
|
103
|
|
|
1
|
|
|
2
|
|
|
210
|
|
|
2
|
|
|
5
|
|
|
Total available-for-sale securities
|
208,385
|
|
|
3,248
|
|
|
166
|
|
|
10,806
|
|
|
2,092
|
|
|
18
|
|
|
219,191
|
|
|
5,340
|
|
|
184
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
States and political subdivisions
|
22,373
|
|
|
457
|
|
|
31
|
|
|
1,342
|
|
|
283
|
|
|
2
|
|
|
23,715
|
|
|
740
|
|
|
33
|
|
|
Corporate
|
—
|
|
|
—
|
|
|
—
|
|
|
1,979
|
|
|
859
|
|
|
2
|
|
|
1,979
|
|
|
859
|
|
|
2
|
|
|
Total held-to-maturity securities
|
22,373
|
|
|
457
|
|
|
31
|
|
|
3,321
|
|
|
1,142
|
|
|
4
|
|
|
25,694
|
|
|
1,599
|
|
|
35
|
|
|
Total fixed maturities
|
$
|
230,758
|
|
|
3,705
|
|
|
197
|
|
|
14,127
|
|
|
3,234
|
|
|
22
|
|
|
244,885
|
|
|
6,939
|
|
|
219
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bond mutual funds
|
$
|
8,183
|
|
|
114
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,183
|
|
|
114
|
|
|
1
|
|
Common stocks
|
21
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
2
|
|
|
2
|
|
|
|
$
|
8,204
|
|
|
116
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,204
|
|
|
116
|
|
|
3
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
Less than 12 months
|
|
Greater than 12 months
|
|
Total
|
||||||||||||||||||||||
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
|
Fair
Value
|
|
Unrealized
Losses
|
|
# of
Securities
|
||||||||||
|
(In thousands, except for # of securities)
|
||||||||||||||||||||||||||
Fixed maturities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
States and political subdivisions
|
$
|
202,788
|
|
|
3,513
|
|
|
184
|
|
|
8,018
|
|
|
1,509
|
|
|
8
|
|
|
210,806
|
|
|
5,022
|
|
|
192
|
|
Corporate
|
91,527
|
|
|
3,578
|
|
|
70
|
|
|
6,102
|
|
|
644
|
|
|
8
|
|
|
97,629
|
|
|
4,222
|
|
|
78
|
|
|
Residential mortgage-backed
|
116
|
|
|
1
|
|
|
4
|
|
|
105
|
|
|
1
|
|
|
2
|
|
|
221
|
|
|
2
|
|
|
6
|
|
|
Total available-for-sale securities
|
294,431
|
|
|
7,092
|
|
|
258
|
|
|
14,225
|
|
|
2,154
|
|
|
18
|
|
|
308,656
|
|
|
9,246
|
|
|
276
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
States and political subdivisions
|
43,659
|
|
|
1,562
|
|
|
47
|
|
|
509
|
|
|
37
|
|
|
1
|
|
|
44,168
|
|
|
1,599
|
|
|
48
|
|
|
Corporate
|
3,587
|
|
|
12
|
|
|
3
|
|
|
2,171
|
|
|
680
|
|
|
2
|
|
|
5,758
|
|
|
692
|
|
|
5
|
|
|
Total held-to-maturity securities
|
47,246
|
|
|
1,574
|
|
|
50
|
|
|
2,680
|
|
|
717
|
|
|
3
|
|
|
49,926
|
|
|
2,291
|
|
|
53
|
|
|
Total fixed maturities
|
$
|
341,677
|
|
|
8,666
|
|
|
308
|
|
|
16,905
|
|
|
2,871
|
|
|
21
|
|
|
358,582
|
|
|
11,537
|
|
|
329
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bond mutual funds
|
$
|
10,160
|
|
|
108
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,160
|
|
|
108
|
|
|
2
|
|
Common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
1
|
|
|
—
|
|
|
17
|
|
|
1
|
|
|
Redeemable preferred stocks
|
201
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
201
|
|
|
2
|
|
|
2
|
|
|
Total equities
|
$
|
10,361
|
|
|
110
|
|
|
4
|
|
|
—
|
|
|
17
|
|
|
1
|
|
|
10,361
|
|
|
127
|
|
|
5
|
|
|
June 30, 2017
|
|||||
|
Amortized
Cost
|
|
Fair
Value
|
|||
|
(In thousands)
|
|||||
Available-for-sale securities:
|
|
|
|
|||
Due in one year or less
|
$
|
50,852
|
|
|
51,396
|
|
Due after one year through five years
|
103,179
|
|
|
106,605
|
|
|
Due after five years through ten years
|
117,410
|
|
|
124,665
|
|
|
Due after ten years
|
631,498
|
|
|
651,031
|
|
|
Total available-for-sale securities
|
902,939
|
|
|
933,697
|
|
|
Held-to-maturity securities:
|
|
|
|
|
|
|
Due in one year or less
|
17,820
|
|
|
18,074
|
|
|
Due after one year through five years
|
48,056
|
|
|
49,477
|
|
|
Due after five years through ten years
|
42,472
|
|
|
44,461
|
|
|
Due after ten years
|
133,296
|
|
|
136,704
|
|
|
Total held-to-maturity securities
|
241,644
|
|
|
248,716
|
|
|
Total fixed maturities
|
$
|
1,144,583
|
|
|
1,182,413
|
|
|
Fixed Maturities, Available-for-Sale
|
|
Equity Securities
|
|||||||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||||||
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|||||||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Proceeds
|
$
|
—
|
|
|
—
|
|
|
508
|
|
|
—
|
|
|
—
|
|
|
403
|
|
|
1,940
|
|
|
403
|
|
Gross realized gains
|
$
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
40
|
|
|
—
|
|
|
40
|
|
Gross realized losses
|
$
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
30
|
|
|
36
|
|
•
|
Level 1 - Quoted prices for identical instruments in active markets.
|
•
|
Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs or whose significant value drivers are observable.
|
•
|
Level 3 - Instruments whose significant value drivers are unobservable.
|
|
June 30, 2017
|
|||||||||||
Available-for-sale investments
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
|||||
|
(In thousands)
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|||||
Fixed maturities:
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and U.S. Government-sponsored enterprises
|
$
|
12,144
|
|
|
4,548
|
|
|
—
|
|
|
16,692
|
|
States and political subdivisions
|
—
|
|
|
578,527
|
|
|
—
|
|
|
578,527
|
|
|
Corporate
|
—
|
|
|
336,146
|
|
|
—
|
|
|
336,146
|
|
|
Commercial mortgage-backed
|
—
|
|
|
—
|
|
|
8
|
|
|
8
|
|
|
Residential mortgage-backed
|
—
|
|
|
2,199
|
|
|
—
|
|
|
2,199
|
|
|
Foreign governments
|
—
|
|
|
125
|
|
|
—
|
|
|
125
|
|
|
Total fixed maturities
|
12,144
|
|
|
921,545
|
|
|
8
|
|
|
933,697
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock mutual funds
|
3,078
|
|
|
—
|
|
|
—
|
|
|
3,078
|
|
|
Bond mutual funds
|
12,334
|
|
|
—
|
|
|
—
|
|
|
12,334
|
|
|
Common stock
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
Redeemable preferred stock
|
711
|
|
|
—
|
|
|
—
|
|
|
711
|
|
|
Total equity securities
|
16,143
|
|
|
—
|
|
|
—
|
|
|
16,143
|
|
|
Total financial assets
|
$
|
28,287
|
|
|
921,545
|
|
|
8
|
|
|
949,840
|
|
|
December 31, 2016
|
|||||||||||
Available-for-sale investments
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
|||||
|
(In thousands)
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|||||
Fixed maturities:
|
|
|
|
|
|
|
|
|||||
U.S. Treasury and U.S. Government-sponsored enterprises
|
$
|
12,190
|
|
|
8,502
|
|
|
—
|
|
|
20,692
|
|
States and political subdivisions
|
—
|
|
|
573,274
|
|
|
—
|
|
|
573,274
|
|
|
Corporate
|
—
|
|
|
285,099
|
|
|
—
|
|
|
285,099
|
|
|
Commercial mortgage-backed
|
—
|
|
|
—
|
|
|
51
|
|
|
51
|
|
|
Residential mortgage-backed
|
—
|
|
|
2,426
|
|
|
—
|
|
|
2,426
|
|
|
Foreign governments
|
—
|
|
|
126
|
|
|
—
|
|
|
126
|
|
|
Total fixed maturities
|
12,190
|
|
|
869,427
|
|
|
51
|
|
|
881,668
|
|
|
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock mutual funds
|
2,946
|
|
|
—
|
|
|
—
|
|
|
2,946
|
|
|
Bond mutual funds
|
14,197
|
|
|
—
|
|
|
—
|
|
|
14,197
|
|
|
Common stock
|
25
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
Redeemable preferred stock
|
991
|
|
|
—
|
|
|
—
|
|
|
991
|
|
|
Total equity securities
|
18,159
|
|
|
—
|
|
|
—
|
|
|
18,159
|
|
|
Total financial assets
|
$
|
30,349
|
|
|
869,427
|
|
|
51
|
|
|
899,827
|
|
|
June 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
|
|
|
|
|||
Balance at beginning of period
|
$
|
51
|
|
|
145
|
|
Total realized and unrealized gains (losses)
|
|
|
|
|
|
|
Included in net income
|
—
|
|
|
—
|
|
|
Included in other comprehensive income
|
—
|
|
|
(4
|
)
|
|
Principal paydowns
|
(43
|
)
|
|
(90
|
)
|
|
Transfer in and (out) of Level 3
|
—
|
|
|
—
|
|
|
Balance at end of period
|
$
|
8
|
|
|
51
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||||||
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
|||||
|
(In thousands)
|
|||||||||||
Financial assets:
|
|
|
|
|
|
|
|
|||||
Fixed maturities, held-to-maturity
|
$
|
241,644
|
|
|
248,716
|
|
|
247,004
|
|
|
252,545
|
|
Mortgage loans
|
198
|
|
|
230
|
|
|
232
|
|
|
269
|
|
|
Policy loans
|
69,382
|
|
|
69,382
|
|
|
66,672
|
|
|
66,672
|
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
508
|
|
|
508
|
|
|
Cash and cash equivalents
|
33,749
|
|
|
33,749
|
|
|
35,510
|
|
|
35,510
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Annuity - investment contracts
|
53,137
|
|
|
52,794
|
|
|
50,952
|
|
|
52,173
|
|
|
June 30,
|
|
June 30,
|
|||
|
2017
|
|
2016
|
|||
|
|
|
|
|||
Policy claims payable at January 1
|
$
|
543
|
|
|
514
|
|
Less: reinsurance recoverable
|
—
|
|
|
—
|
|
|
Net balance at January 1
|
543
|
|
|
514
|
|
|
Add claims incurred, related to:
|
|
|
|
|
|
|
Current year
|
1,046
|
|
|
1,065
|
|
|
Prior years
|
(10
|
)
|
|
(118
|
)
|
|
|
1,036
|
|
|
947
|
|
|
Deduct claims paid, related to:
|
|
|
|
|
|
|
Current year
|
758
|
|
|
769
|
|
|
Prior years
|
377
|
|
|
265
|
|
|
|
1,135
|
|
|
1,034
|
|
|
Net balance June 30
|
444
|
|
|
427
|
|
|
Plus: reinsurance recoverable
|
—
|
|
|
—
|
|
|
Policy claims payable, June 30
|
$
|
444
|
|
|
427
|
|
•
|
Changes in the application, interpretation or enforcement of foreign insurance laws that impact our business, which derives the majority of its revenues from residents of foreign countries;
|
•
|
Potential changes in amounts reserved for in connection with the noncompliance of a portion of our insurance policies with Sections 7702 under the Internal Revenue Code, the failure of certain annuity contracts to qualify under Section 72(s) of the Internal Revenue Code and the anticipated timing of our filings with the IRS to address these matters;
|
•
|
Changes in foreign and U.S. general economic, market, and political conditions, including the performance of financial markets and interest rates;
|
•
|
Changes in consumer behavior or regulatory oversight, which may affect the Company's ability to sell its products and retain business;
|
•
|
The timely development of and acceptance of new products of the Company and perceived overall value of these products and services by existing and potential customers;
|
•
|
Fluctuations in experience regarding current mortality, morbidity, persistency and interest rates relative to expected amounts used in pricing the Company's products;
|
•
|
The performance of our investment portfolio, which may be adversely affected by changes in interest rates, adverse developments and ratings of issuers whose debt securities we may hold, and other adverse macroeconomic events;
|
•
|
Results of litigation we may be involved in;
|
•
|
Changes in assumptions related to deferred acquisition costs and the value of any businesses we may acquire;
|
•
|
Regulatory, accounting or tax changes that may affect the cost of, or the demand for, the Company's products or services;
|
•
|
Our concentration of business from persons residing in Latin America and the Pacific Rim;
|
•
|
Changes in tax laws;
|
•
|
Effects of acquisitions and restructuring, including possible difficulties in integrating and realizing the projected results of acquisitions;
|
•
|
Changes in statutory or U.S. Generally Accepted Accounting Principles ("U.S. GAAP"), policies or practices;
|
•
|
Changes in leadership among our board and senior management team.
|
•
|
Our success at managing risks involved in the foregoing; and
|
•
|
The risk factors discussed in "Part 1I-Item 1A-Risk Factors" of this report.
|
•
|
U.S. Dollar-denominated ordinary whole life insurance and endowment policies predominantly sold to foreign residents, located principally in Latin America and the Pacific Rim through independent marketing consultants;
|
•
|
ordinary whole life insurance policies to middle income households concentrated in the Midwest, Mountain West and southern United States through independent marketing consultants; and
|
•
|
final expense and limited liability property policies to middle and lower income households in Louisiana, Arkansas and Mississippi through employee and independent agents in our home service distribution channel and funeral homes.
|
•
|
Insurance premiums decreased slightly for the
three and six
month periods ended
June 30, 2017
to
$47.7 million
and
$93.1 million
from
$49.0 million
and
$93.4 million
for the corresponding periods in
2016
, a decrease of
2.6%
and
0.3%
driven by a decrease in first year premiums in our Life segment, offset somewhat by a slight increases in renewal premiums in both our Life and Home Service segments.
|
•
|
Net investment income increased
8.9%
and
8.8%
for the
three and six
month periods ended
June 30, 2017
, compared to the corresponding periods in
2016
, primarily due to a growing asset base from strong cash flows from our insurance operations. The average yield on the consolidated portfolio as of the
six
months ended
June 30, 2017
decreased to an annualized rate of
4.24%
down from
4.31%
for the same period in 2016.
|
•
|
A realized gain of $1.1 million was recorded for the
six
month period ended
June 30, 2017
related to the sale of our Markham building in Little Rock Arkansas in the first quarter of 2017. The Company recorded a small other-than-temporary impairment on a common stock in 2017. Other-than-temporary impairments were recorded for the three and six month periods ended June 30, 2016 totaling $0.4 million and $2.3 million, respectively, related to mutual fund impairments in the second quarter of 2016 and one available-for-sale fixed maturity security impairment in the first quarter of 2016.
|
•
|
Claims and surrenders expense decreased
9.6%
for the three months ended
June 30, 2017
, while increasing
1.8%
for the
six
month period ended
June 30, 2017
, compared to corresponding periods in
2016
.
|
•
|
General expenses have increased
9.2%
and
10.0%
for the
three and six
month periods ended
June 30, 2017
, respectively, due primarily to additional audit fees related to the
2016
audit, higher legal and consulting fees and higher permanent and temporary salaries, somewhat offset by a decrease in our 7702/72(s) tax compliance best estimate liability.
|
•
|
Life Insurance
|
•
|
Home Service Insurance
|
•
|
Other Non-Insurance Enterprises
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||
|
Amount of
Insurance Issued |
|
Number of
Policies Issued |
|
Average Policy
Face Amount Issued |
|
Amount of
Insurance Issued |
|
Number of
Policies Issued |
|
Average Policy
Face Amount Issued |
||||||||||
Life
|
$
|
135,569,222
|
|
|
2,506
|
|
|
$
|
54,098
|
|
|
$
|
156,783,055
|
|
|
2,788
|
|
|
$
|
56,235
|
|
Home Service
|
97,758,971
|
|
|
14,356
|
|
|
6,810
|
|
|
95,113,712
|
|
|
14,400
|
|
|
6,605
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Revenues:
|
|
|
|
|
|
|
|
|||||
Premiums:
|
|
|
|
|
|
|
|
|||||
Life insurance
|
$
|
46,155
|
|
|
47,351
|
|
|
89,959
|
|
|
90,124
|
|
Accident and health insurance
|
345
|
|
|
395
|
|
|
673
|
|
|
785
|
|
|
Property insurance
|
1,239
|
|
|
1,261
|
|
|
2,488
|
|
|
2,537
|
|
|
Net investment income
|
13,073
|
|
|
12,000
|
|
|
25,812
|
|
|
23,731
|
|
|
Realized investment gains (losses), net
|
(117
|
)
|
|
(26
|
)
|
|
1,146
|
|
|
(1,822
|
)
|
|
Other income
|
157
|
|
|
256
|
|
|
355
|
|
|
407
|
|
|
Total revenues
|
$
|
60,852
|
|
|
61,237
|
|
|
120,433
|
|
|
115,762
|
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2016
|
|
2016
|
||||
|
(In thousands, except for %)
|
||||||||
Net investment income, annualized
|
$
|
51,624
|
|
|
48,560
|
|
|
47,462
|
|
Average invested assets, at amortized cost
|
1,218,120
|
|
|
1,133,705
|
|
|
1,101,388
|
|
|
Annualized yield on average invested assets
|
4.24
|
%
|
|
4.28
|
%
|
|
4.31
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Gross investment income:
|
|
|
|
|
|
|
|
|||||
Fixed maturity securities
|
$
|
11,908
|
|
|
10,827
|
|
|
23,413
|
|
|
21,448
|
|
Equity securities
|
175
|
|
|
264
|
|
|
367
|
|
|
388
|
|
|
Mortgage loans
|
2
|
|
|
8
|
|
|
5
|
|
|
17
|
|
|
Policy loans
|
1,401
|
|
|
1,285
|
|
|
2,788
|
|
|
2,550
|
|
|
Long-term investments
|
15
|
|
|
101
|
|
|
66
|
|
|
152
|
|
|
Other investment income
|
16
|
|
|
19
|
|
|
23
|
|
|
30
|
|
|
Total investment income
|
13,517
|
|
|
12,504
|
|
|
26,662
|
|
|
24,585
|
|
|
Investment expenses
|
(444
|
)
|
|
(504
|
)
|
|
(850
|
)
|
|
(854
|
)
|
|
Net investment income
|
$
|
13,073
|
|
|
12,000
|
|
|
25,812
|
|
|
23,731
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Benefits and expenses:
|
|
|
|
|
|
|
|
|||||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|||||
Claims and surrenders
|
$
|
18,952
|
|
|
20,969
|
|
|
40,676
|
|
|
39,974
|
|
Increase in future policy benefit reserves
|
17,820
|
|
|
17,372
|
|
|
32,356
|
|
|
33,098
|
|
|
Policyholders' dividends
|
1,501
|
|
|
1,816
|
|
|
2,805
|
|
|
3,365
|
|
|
Total insurance benefits paid or provided
|
38,273
|
|
|
40,157
|
|
|
75,837
|
|
|
76,437
|
|
|
Commissions
|
9,894
|
|
|
10,777
|
|
|
19,819
|
|
|
20,245
|
|
|
Other general expenses
|
9,355
|
|
|
8,566
|
|
|
19,511
|
|
|
17,740
|
|
|
Capitalization of deferred policy acquisition costs
|
(6,883
|
)
|
|
(8,103
|
)
|
|
(13,784
|
)
|
|
(14,367
|
)
|
|
Amortization of deferred policy acquisition costs
|
7,642
|
|
|
6,879
|
|
|
15,017
|
|
|
13,510
|
|
|
Amortization of cost of customer relationships acquired
|
475
|
|
|
402
|
|
|
994
|
|
|
947
|
|
|
Total benefits and expenses
|
$
|
58,756
|
|
|
58,678
|
|
|
117,394
|
|
|
114,512
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Death claims
|
$
|
5,009
|
|
|
6,007
|
|
|
11,313
|
|
|
11,980
|
|
Surrender benefits
|
8,655
|
|
|
9,003
|
|
|
18,485
|
|
|
16,944
|
|
|
Endowments
|
3,572
|
|
|
3,976
|
|
|
7,179
|
|
|
7,692
|
|
|
Matured endowments
|
585
|
|
|
819
|
|
|
1,234
|
|
|
1,029
|
|
|
Property claims
|
378
|
|
|
434
|
|
|
1,000
|
|
|
884
|
|
|
Accident and health benefits
|
(4
|
)
|
|
72
|
|
|
88
|
|
|
169
|
|
|
Other policy benefits
|
757
|
|
|
658
|
|
|
1,377
|
|
|
1,276
|
|
|
Total claims and surrenders
|
$
|
18,952
|
|
|
20,969
|
|
|
40,676
|
|
|
39,974
|
|
•
|
Death claims decreased
16.6%
and
5.6%
for the
three and six
months ended
June 30, 2017
compared to the same periods in
2016
. Mortality experience is closely monitored by the Company and the activity is within expected levels.
|
•
|
Surrenders decreased
3.9%
and increased
9.1%
for the
three and six
months ended
June 30, 2017
compared to
2016
primarily due to activity in the life insurance segment. This increased surrender activity is in the later durations after the surrender charges are reduced or for periods in which the surrender charges have concluded. This is due to a maturing book of business.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Life Insurance
|
$
|
1,920
|
|
|
2,186
|
|
|
3,599
|
|
|
1,760
|
|
Home Service Insurance
|
601
|
|
|
953
|
|
|
861
|
|
|
574
|
|
|
Other Non-Insurance Enterprises
|
(425
|
)
|
|
(580
|
)
|
|
(1,421
|
)
|
|
(1,084
|
)
|
|
Total
|
$
|
2,096
|
|
|
2,559
|
|
|
3,039
|
|
|
1,250
|
|
•
|
larger face amount policies typically issued when compared to our U.S. operations, which results in lower underwriting and administrative costs per unit of coverage;
|
•
|
premiums typically paid annually rather than monthly or quarterly, which reduces our administrative expenses, accelerates cash flow and results in lower policy lapse rates than premiums with more frequently scheduled payments; and
|
•
|
persistency experience and mortality rates that are comparable to U.S. policies.
|
•
|
U.S. Dollar-denominated cash values that accumulate, beginning in the first policy year, to a policyholder during his or her lifetime;
|
•
|
premium rates that are competitive with or better than most foreign local companies;
|
•
|
a hedge against local currency inflation;
|
•
|
protection against devaluation of foreign currency;
|
•
|
capital investment in a more secure economic environment (i.e., the United States); and
|
•
|
lifetime income guarantees for an insured or for surviving beneficiaries.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Country
|
|
|
|
|
|
|
|
|||||
Venezuela
|
$
|
7,092
|
|
|
7,826
|
|
|
13,858
|
|
|
14,857
|
|
Colombia
|
6,859
|
|
|
7,396
|
|
|
13,245
|
|
|
13,367
|
|
|
Taiwan
|
4,158
|
|
|
4,202
|
|
|
9,265
|
|
|
8,814
|
|
|
Ecuador
|
4,183
|
|
|
3,908
|
|
|
7,745
|
|
|
7,245
|
|
|
Argentina
|
2,514
|
|
|
2,571
|
|
|
4,556
|
|
|
4,390
|
|
|
Other Non-U.S.
|
10,173
|
|
|
10,178
|
|
|
18,766
|
|
|
19,193
|
|
|
Total
|
$
|
34,979
|
|
|
36,081
|
|
|
67,435
|
|
|
67,866
|
|
•
|
cash accumulation/living benefits;
|
•
|
tax-deferred annuity interest earnings;
|
•
|
guaranteed lifetime income options;
|
•
|
monthly income for surviving family members;
|
•
|
accidental death benefit coverage options; and
|
•
|
an option to waive premium payments in the event of disability.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
State
|
|
|
|
|
|
|
|
|||||
Texas
|
$
|
496
|
|
|
570
|
|
|
972
|
|
|
1,101
|
|
Indiana
|
320
|
|
|
330
|
|
|
634
|
|
|
628
|
|
|
Florida
|
118
|
|
|
99
|
|
|
261
|
|
|
236
|
|
|
Missouri
|
106
|
|
|
111
|
|
|
219
|
|
|
227
|
|
|
Kentucky
|
72
|
|
|
93
|
|
|
155
|
|
|
192
|
|
|
Other States
|
505
|
|
|
420
|
|
|
1,016
|
|
|
861
|
|
|
Total
|
$
|
1,617
|
|
|
1,623
|
|
|
3,257
|
|
|
3,245
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Revenue:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
35,960
|
|
|
37,111
|
|
|
69,523
|
|
|
69,959
|
|
Net investment income
|
9,496
|
|
|
8,107
|
|
|
18,627
|
|
|
16,061
|
|
|
Realized investment gains (losses), net
|
(141
|
)
|
|
208
|
|
|
(64
|
)
|
|
(660
|
)
|
|
Other income
|
177
|
|
|
256
|
|
|
295
|
|
|
371
|
|
|
Total revenue
|
45,492
|
|
|
45,682
|
|
|
88,381
|
|
|
85,731
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|||||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|||||
Claims and surrenders
|
13,842
|
|
|
15,157
|
|
|
29,518
|
|
|
28,621
|
|
|
Increase in future policy benefit reserves
|
16,513
|
|
|
15,976
|
|
|
29,773
|
|
|
30,516
|
|
|
Policyholders' dividends
|
1,490
|
|
|
1,802
|
|
|
2,785
|
|
|
3,338
|
|
|
Total insurance benefits paid or provided
|
31,845
|
|
|
32,935
|
|
|
62,076
|
|
|
62,475
|
|
|
Commissions
|
5,866
|
|
|
6,768
|
|
|
11,873
|
|
|
12,571
|
|
|
Other general expenses
|
4,327
|
|
|
4,041
|
|
|
8,199
|
|
|
8,125
|
|
|
Capitalization of deferred policy acquisition costs
|
(5,223
|
)
|
|
(6,492
|
)
|
|
(10,601
|
)
|
|
(11,418
|
)
|
|
Amortization of deferred policy acquisition costs
|
6,613
|
|
|
6,114
|
|
|
12,919
|
|
|
11,918
|
|
|
Amortization of cost of customer relationships acquired
|
144
|
|
|
130
|
|
|
316
|
|
|
300
|
|
|
Total benefits and expenses
|
43,572
|
|
|
43,496
|
|
|
84,782
|
|
|
83,971
|
|
|
Income (loss) before income tax expense
|
$
|
1,920
|
|
|
2,186
|
|
|
3,599
|
|
|
1,760
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Premiums:
|
|
|
|
|
|
|
|
|||||
First year
|
$
|
3,842
|
|
|
4,788
|
|
|
8,015
|
|
|
8,759
|
|
Renewal
|
32,118
|
|
|
32,323
|
|
|
61,508
|
|
|
61,200
|
|
|
Total premiums
|
$
|
35,960
|
|
|
37,111
|
|
|
69,523
|
|
|
69,959
|
|
|
Six Months Ended
|
|
Year Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2016
|
|
2016
|
||||
|
(In thousands, except for %)
|
||||||||
Net investment income, annualized
|
$
|
37,254
|
|
|
33,350
|
|
|
32,122
|
|
Average invested assets, at amortized cost
|
873,083
|
|
|
779,592
|
|
|
740,441
|
|
|
Annualized yield on average invested assets
|
4.27
|
%
|
|
4.28
|
%
|
|
4.34
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Death claims
|
$
|
1,026
|
|
|
1,529
|
|
|
2,821
|
|
|
3,259
|
|
Surrender benefits
|
7,998
|
|
|
8,228
|
|
|
17,110
|
|
|
15,462
|
|
|
Endowment benefits
|
3,568
|
|
|
3,974
|
|
|
7,166
|
|
|
7,684
|
|
|
Matured endowments
|
454
|
|
|
679
|
|
|
956
|
|
|
771
|
|
|
Accident and health benefits
|
45
|
|
|
94
|
|
|
97
|
|
|
178
|
|
|
Other policy benefits
|
751
|
|
|
653
|
|
|
1,368
|
|
|
1,267
|
|
|
Total claims and surrenders
|
$
|
13,842
|
|
|
15,157
|
|
|
29,518
|
|
|
28,621
|
|
•
|
Death claims expense was favorable for the
three and six
months ended
June 30, 2017
compared with the same period in
2016
. Mortality experience is closely monitored by the Company as a key performance indicator and these amounts were within expected levels.
|
•
|
Surrenders increased in the
six
month period ended
June 30, 2017
by
10.7%
compared to
2016
. Surrenders were down slightly for the three months ended
June 30, 2017
compared to
2016
. The majority of policy surrender benefits paid is attributable to our international business and is in the later durations after the surrender charges are reduced or for periods in which the surrender charges have concluded. This is due to a maturing book of business.
|
•
|
Endowment benefit expense primarily results from the election by policyholders of a product feature providing an annual guaranteed benefit. This is a fixed benefit over the life of the contract, thus this expense will vary with new sales and persistency of the business.
|
•
|
Matured endowments increased for the
six
month period ended
June 30, 2017
, compared to 2016, as this block of business increases, persists and policies begin to reach maturity.
|
•
|
Other policy benefits resulted primarily from interest paid on premium deposits and policy benefit accumulations.
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
State
|
|
|
|
|
|
|
|
|||||
Louisiana
|
$
|
10,734
|
|
|
10,732
|
|
|
21,386
|
|
|
21,318
|
|
Mississippi
|
562
|
|
|
764
|
|
|
1,263
|
|
|
1,370
|
|
|
Arkansas
|
454
|
|
|
387
|
|
|
912
|
|
|
793
|
|
|
Other States
|
225
|
|
|
225
|
|
|
444
|
|
|
442
|
|
|
Total
|
$
|
11,975
|
|
|
12,108
|
|
|
24,005
|
|
|
23,923
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Revenue:
|
|
|
|
|
|
|
|
|||||
Premiums
|
$
|
11,779
|
|
|
11,896
|
|
|
23,597
|
|
|
23,487
|
|
Net investment income
|
3,250
|
|
|
3,505
|
|
|
6,509
|
|
|
6,919
|
|
|
Realized investment gains (losses), net
|
24
|
|
|
(234
|
)
|
|
1,210
|
|
|
(1,162
|
)
|
|
Other income
|
3
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
Total revenue
|
15,056
|
|
|
15,167
|
|
|
31,318
|
|
|
29,247
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|||||
Insurance benefits paid or provided:
|
|
|
|
|
|
|
|
|||||
Claims and surrenders
|
5,110
|
|
|
5,812
|
|
|
11,158
|
|
|
11,353
|
|
|
Increase in future policy benefit reserves
|
1,307
|
|
|
1,396
|
|
|
2,583
|
|
|
2,582
|
|
|
Policyholders' dividends
|
11
|
|
|
14
|
|
|
20
|
|
|
27
|
|
|
Total insurance benefits paid or provided
|
6,428
|
|
|
7,222
|
|
|
13,761
|
|
|
13,962
|
|
|
Commissions
|
4,028
|
|
|
4,009
|
|
|
7,946
|
|
|
7,674
|
|
|
Other general expenses
|
4,299
|
|
|
3,557
|
|
|
9,157
|
|
|
7,747
|
|
|
Capitalization of deferred policy acquisition costs
|
(1,660
|
)
|
|
(1,611
|
)
|
|
(3,183
|
)
|
|
(2,949
|
)
|
|
Amortization of deferred policy acquisition costs
|
1,029
|
|
|
765
|
|
|
2,098
|
|
|
1,592
|
|
|
Amortization of cost of customer relationships acquired
|
331
|
|
|
272
|
|
|
678
|
|
|
647
|
|
|
Total benefits and expenses
|
14,455
|
|
|
14,214
|
|
|
30,457
|
|
|
28,673
|
|
|
Income (loss) before income tax expense
|
$
|
601
|
|
|
953
|
|
|
861
|
|
|
574
|
|
|
Six Months Ended
|
|
Year Ended
|
|
Six Months Ended
|
||||
|
June 30,
|
|
December 31,
|
|
June 30,
|
||||
|
2017
|
|
2016
|
|
2016
|
||||
|
(In thousands, except for %)
|
||||||||
Net investment income, annualized
|
$
|
13,018
|
|
|
13,705
|
|
|
13,838
|
|
Average invested assets, at amortized cost
|
290,430
|
|
|
294,132
|
|
|
299,453
|
|
|
Annualized yield on average invested assets
|
4.48
|
%
|
|
4.66
|
%
|
|
4.62
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||
|
June 30,
|
|
June 30,
|
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Death claims
|
$
|
3,983
|
|
|
4,479
|
|
|
8,492
|
|
|
8,722
|
|
Surrender benefits
|
657
|
|
|
774
|
|
|
1,375
|
|
|
1,481
|
|
|
Endowment benefits
|
4
|
|
|
3
|
|
|
13
|
|
|
8
|
|
|
Matured endowments
|
131
|
|
|
140
|
|
|
278
|
|
|
258
|
|
|
Property claims
|
378
|
|
|
434
|
|
|
1,000
|
|
|
884
|
|
|
Accident and health benefits
|
(49
|
)
|
|
(22
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|
Other policy benefits
|
6
|
|
|
4
|
|
|
9
|
|
|
9
|
|
|
Total claims and surrenders
|
$
|
5,110
|
|
|
5,812
|
|
|
11,158
|
|
|
11,353
|
|
•
|
Death claims expense fluctuates based upon reported claims. We experienced a smaller number of reported claims in the
three and six
months ended
June 30, 2017
. Mortality experience is closely monitored by the Company as a key performance indicator and amounts were within expected levels.
|
•
|
Surrender benefits decreased slightly for the
three and six
months ended
June 30, 2017
compared to the same period in
2016
. Management is not aware of any unusual surrender activity, but will continue to monitor for any developing trends.
|
•
|
Property claims increased 13.1% for the
six
months ended
June 30, 2017
as we experienced more weather-related claims in the first quarter of
2017
, primarily due to tornadoes in Louisiana.
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||
|
Carrying
Value
|
|
% of Total
Carrying Value
|
|
Carrying
Value
|
|
% of Total
Carrying Value
|
||||
|
(In thousands)
|
|
|
|
(In thousands)
|
|
|
||||
Marketable debt securities:
|
|
|
|
|
|
|
|
||||
U.S. Treasury and U.S. Government-sponsored enterprises
|
$
|
16,692
|
|
|
1.3
|
|
$
|
22,695
|
|
|
1.8
|
States and political subdivisions
|
799,201
|
|
|
61.4
|
|
797,240
|
|
|
63.4
|
||
Corporate
|
357,116
|
|
|
27.5
|
|
306,134
|
|
|
24.4
|
||
Mortgage-backed (1)
|
2,207
|
|
|
0.2
|
|
2,477
|
|
|
0.2
|
||
Foreign governments
|
125
|
|
|
—
|
|
126
|
|
|
—
|
||
Total fixed maturity securities
|
1,175,341
|
|
|
90.4
|
|
1,128,672
|
|
|
89.8
|
||
Short-term investments
|
—
|
|
|
—
|
|
508
|
|
|
—
|
||
Cash and cash equivalents
|
33,749
|
|
|
2.6
|
|
35,510
|
|
|
2.8
|
||
Other investments:
|
|
|
|
|
|
|
|
|
|
||
Policy loans
|
69,382
|
|
|
5.3
|
|
66,672
|
|
|
5.3
|
||
Equity securities
|
16,143
|
|
|
1.2
|
|
18,159
|
|
|
1.4
|
||
Mortgage loans
|
198
|
|
|
—
|
|
232
|
|
|
—
|
||
Real estate held for investment
|
5,869
|
|
|
0.5
|
|
5,919
|
|
|
0.5
|
||
Real estate held for sale
|
—
|
|
|
—
|
|
1,939
|
|
|
0.2
|
||
Other long-term investments
|
37
|
|
|
—
|
|
38
|
|
|
—
|
||
Total cash, cash equivalents and investments
|
$
|
1,300,719
|
|
|
100.0
|
|
$
|
1,257,649
|
|
|
100.0
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||
|
Carrying
Value
|
|
% of Total
Carrying Value
|
|
Carrying
Value
|
|
% of Total
Carrying Value
|
||||
|
(In thousands)
|
|
|
|
(In thousands)
|
|
|
||||
AAA
|
$
|
96,467
|
|
|
8.2
|
|
$
|
88,853
|
|
|
7.8
|
AA
|
524,364
|
|
|
44.6
|
|
554,211
|
|
|
50.0
|
||
A
|
284,886
|
|
|
24.2
|
|
238,350
|
|
|
24.6
|
||
BBB
|
240,226
|
|
|
20.4
|
|
215,499
|
|
|
15.3
|
||
BB and other
|
29,398
|
|
|
2.6
|
|
31,759
|
|
|
2.3
|
||
Totals
|
$
|
1,175,341
|
|
|
100.0
|
|
$
|
1,128,672
|
|
|
100.0
|
|
June 30, 2017
|
|||||||||||||||||||||||||
|
General Obligation
|
|
Special Revenue
|
|
Other
|
|
Total
|
|
% Based on
|
|||||||||||||||||
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Amortized
Cost |
|||||||||
|
(In thousands)
|
|
|
|||||||||||||||||||||||
AAA
|
$
|
61,234
|
|
|
59,096
|
|
|
33,005
|
|
|
32,378
|
|
|
—
|
|
|
—
|
|
|
94,239
|
|
|
91,474
|
|
|
11.7
|
AA
|
179,033
|
|
|
174,256
|
|
|
280,759
|
|
|
272,694
|
|
|
23,967
|
|
|
23,086
|
|
|
483,759
|
|
|
470,036
|
|
|
59.9
|
|
A
|
20,684
|
|
|
20,350
|
|
|
156,549
|
|
|
150,923
|
|
|
12,379
|
|
|
11,874
|
|
|
189,612
|
|
|
183,147
|
|
|
23.3
|
|
BBB
|
7,781
|
|
|
8,265
|
|
|
22,583
|
|
|
22,283
|
|
|
2,011
|
|
|
2,016
|
|
|
32,375
|
|
|
32,564
|
|
|
4.1
|
|
BB and other
|
2,775
|
|
|
3,723
|
|
|
3,245
|
|
|
3,744
|
|
|
275
|
|
|
275
|
|
|
6,295
|
|
|
7,742
|
|
|
1.0
|
|
Total
|
$
|
271,507
|
|
|
265,690
|
|
|
496,141
|
|
|
482,022
|
|
|
38,632
|
|
|
37,251
|
|
|
806,280
|
|
|
784,963
|
|
|
100.0
|
|
June 30, 2017
|
|||||||||||||||||||||||||
|
General Obligation
|
|
Special Revenue
|
|
Other
|
|
Total
|
|
% Based on
|
|||||||||||||||||
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Amortized
Cost |
|||||||||
|
(In thousands)
|
|
|
|||||||||||||||||||||||
AAA
|
$
|
35,421
|
|
|
35,027
|
|
|
11,807
|
|
|
11,806
|
|
|
—
|
|
|
—
|
|
|
47,228
|
|
|
46,833
|
|
|
6.0
|
AA
|
146,834
|
|
|
142,698
|
|
|
230,159
|
|
|
223,259
|
|
|
16,877
|
|
|
15,950
|
|
|
393,870
|
|
|
381,907
|
|
|
48.6
|
|
A
|
42,545
|
|
|
41,294
|
|
|
163,830
|
|
|
158,055
|
|
|
12,800
|
|
|
12,311
|
|
|
219,175
|
|
|
211,660
|
|
|
27.0
|
|
BBB
|
11,607
|
|
|
11,899
|
|
|
39,840
|
|
|
39,079
|
|
|
—
|
|
|
—
|
|
|
51,447
|
|
|
50,978
|
|
|
6.5
|
|
BB and other
|
35,100
|
|
|
34,772
|
|
|
50,505
|
|
|
49,823
|
|
|
8,955
|
|
|
8,990
|
|
|
94,560
|
|
|
93,585
|
|
|
11.9
|
|
Total
|
$
|
271,507
|
|
|
265,690
|
|
|
496,141
|
|
|
482,022
|
|
|
38,632
|
|
|
37,251
|
|
|
806,280
|
|
|
784,963
|
|
|
100.0
|
|
Fair Value
|
|
Amortized
Cost |
|
% of Total
Fair Value |
||||
|
(In thousands)
|
|
|
||||||
Utilities
|
$
|
161,572
|
|
|
155,760
|
|
|
20.0
|
%
|
|
|
|
|
|
|
||||
Education
|
113,873
|
|
|
110,132
|
|
|
14.1
|
%
|
|
June 30, 2017
|
|||||||||||||||||||||||
|
General Obligation
|
|
Special Revenue
|
|
Other
|
|
Total
|
|||||||||||||||||
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Texas securities including third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
$
|
59,166
|
|
|
57,091
|
|
|
15,112
|
|
|
14,631
|
|
|
—
|
|
|
—
|
|
|
74,278
|
|
|
71,722
|
|
AA
|
54,999
|
|
|
54,000
|
|
|
33,511
|
|
|
32,506
|
|
|
—
|
|
|
—
|
|
|
88,510
|
|
|
86,506
|
|
|
A
|
200
|
|
|
199
|
|
|
16,729
|
|
|
16,057
|
|
|
—
|
|
|
—
|
|
|
16,929
|
|
|
16,256
|
|
|
BBB
|
—
|
|
|
—
|
|
|
7,160
|
|
|
6,679
|
|
|
—
|
|
|
—
|
|
|
7,160
|
|
|
6,679
|
|
|
BB and other
|
—
|
|
|
—
|
|
|
1,870
|
|
|
2,381
|
|
|
—
|
|
|
—
|
|
|
1,870
|
|
|
2,381
|
|
|
Total
|
$
|
114,365
|
|
|
111,290
|
|
|
74,382
|
|
|
72,254
|
|
|
—
|
|
|
—
|
|
|
188,747
|
|
|
183,544
|
|
Texas securities excluding third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AAA
|
$
|
34,443
|
|
|
34,050
|
|
|
1,005
|
|
|
1,003
|
|
|
—
|
|
|
—
|
|
|
35,448
|
|
|
35,053
|
|
AA
|
69,222
|
|
|
66,917
|
|
|
33,439
|
|
|
32,326
|
|
|
—
|
|
|
—
|
|
|
102,661
|
|
|
99,243
|
|
|
A
|
8,901
|
|
|
8,617
|
|
|
23,460
|
|
|
22,500
|
|
|
—
|
|
|
—
|
|
|
32,361
|
|
|
31,117
|
|
|
BBB
|
200
|
|
|
199
|
|
|
10,385
|
|
|
9,866
|
|
|
—
|
|
|
—
|
|
|
10,585
|
|
|
10,065
|
|
|
BB and other
|
1,599
|
|
|
1,507
|
|
|
6,093
|
|
|
6,559
|
|
|
—
|
|
|
—
|
|
|
7,692
|
|
|
8,066
|
|
|
Total
|
$
|
114,365
|
|
|
111,290
|
|
|
74,382
|
|
|
72,254
|
|
|
—
|
|
|
—
|
|
|
188,747
|
|
|
183,544
|
|
Louisiana securities including third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AA
|
$
|
7,046
|
|
|
6,851
|
|
|
15,661
|
|
|
15,078
|
|
|
—
|
|
|
—
|
|
|
22,707
|
|
|
21,929
|
|
A
|
5,313
|
|
|
5,146
|
|
|
6,660
|
|
|
6,489
|
|
|
—
|
|
|
—
|
|
|
11,973
|
|
|
11,635
|
|
|
BBB
|
—
|
|
|
—
|
|
|
376
|
|
|
375
|
|
|
—
|
|
|
—
|
|
|
376
|
|
|
375
|
|
|
BB and other
|
—
|
|
|
—
|
|
|
363
|
|
|
358
|
|
|
—
|
|
|
—
|
|
|
363
|
|
|
358
|
|
|
Total
|
$
|
12,359
|
|
|
11,997
|
|
|
23,060
|
|
|
22,300
|
|
|
—
|
|
|
—
|
|
|
35,419
|
|
|
34,297
|
|
Louisiana securities excluding third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AA
|
$
|
9,598
|
|
|
9,296
|
|
|
11,743
|
|
|
11,385
|
|
|
—
|
|
|
—
|
|
|
21,341
|
|
|
20,681
|
|
A
|
2,250
|
|
|
2,177
|
|
|
7,825
|
|
|
7,584
|
|
|
—
|
|
|
—
|
|
|
10,075
|
|
|
9,761
|
|
|
BBB
|
—
|
|
|
—
|
|
|
1,057
|
|
|
1,004
|
|
|
—
|
|
|
—
|
|
|
1,057
|
|
|
1,004
|
|
|
BB and other
|
511
|
|
|
524
|
|
|
2,435
|
|
|
2,327
|
|
|
—
|
|
|
—
|
|
|
2,946
|
|
|
2,851
|
|
|
Total
|
$
|
12,359
|
|
|
11,997
|
|
|
23,060
|
|
|
22,300
|
|
|
—
|
|
|
—
|
|
|
35,419
|
|
|
34,297
|
|
|
June 30, 2017
|
|||||||||||||||||||||||
|
General Obligation
|
|
Special Revenue
|
|
Other
|
|
Total
|
|||||||||||||||||
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|
Fair
Value |
|
Amortized
Cost |
|||||||||
|
(In thousands)
|
|||||||||||||||||||||||
Florida securities including third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AAA
|
$
|
534
|
|
|
515
|
|
|
3,739
|
|
|
3,603
|
|
|
—
|
|
|
—
|
|
|
4,273
|
|
|
4,118
|
|
AA
|
—
|
|
|
—
|
|
|
60,569
|
|
|
59,307
|
|
|
3,801
|
|
|
3,838
|
|
|
64,370
|
|
|
63,145
|
|
|
A
|
—
|
|
|
—
|
|
|
13,183
|
|
|
12,781
|
|
|
12,379
|
|
|
11,874
|
|
|
25,562
|
|
|
24,655
|
|
|
BBB
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
BB and other
|
—
|
|
|
—
|
|
|
486
|
|
|
478
|
|
|
—
|
|
|
—
|
|
|
486
|
|
|
478
|
|
|
Total
|
$
|
534
|
|
|
515
|
|
|
77,977
|
|
|
76,169
|
|
|
16,180
|
|
|
15,712
|
|
|
94,691
|
|
|
92,396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Florida securities excluding third party guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
AAA
|
$
|
—
|
|
|
—
|
|
|
1,063
|
|
|
1,040
|
|
|
—
|
|
|
—
|
|
|
1,063
|
|
|
1,040
|
|
AA
|
534
|
|
|
515
|
|
|
43,217
|
|
|
42,222
|
|
|
3,801
|
|
|
3,838
|
|
|
47,552
|
|
|
46,575
|
|
|
A
|
—
|
|
|
—
|
|
|
29,366
|
|
|
28,659
|
|
|
10,849
|
|
|
10,348
|
|
|
40,215
|
|
|
39,007
|
|
|
BBB
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
BB and other
|
—
|
|
|
—
|
|
|
4,331
|
|
|
4,248
|
|
|
1,530
|
|
|
1,526
|
|
|
5,861
|
|
|
5,774
|
|
|
Total
|
$
|
534
|
|
|
515
|
|
|
77,977
|
|
|
76,169
|
|
|
16,180
|
|
|
15,712
|
|
|
94,691
|
|
|
92,396
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|||||||||||||||
|
Amortized
Cost |
|
Fair
Value |
|
Net
Unrealized Gains (Losses) |
|
Amortized
Cost |
|
Fair
Value |
|
Net
Unrealized Gains |
|||||||
|
(In thousands)
|
|||||||||||||||||
Fixed maturities, available-for-sale
|
$
|
902,939
|
|
|
933,697
|
|
|
30,758
|
|
|
860,473
|
|
|
881,668
|
|
|
21,195
|
|
Fixed maturities, held-to-maturity
|
241,644
|
|
|
248,716
|
|
|
7,072
|
|
|
247,004
|
|
|
252,545
|
|
|
5,541
|
|
|
Short-term investments
|
—
|
|
|
—
|
|
|
—
|
|
|
508
|
|
|
508
|
|
|
—
|
|
|
Total fixed maturities
|
$
|
1,144,583
|
|
|
1,182,413
|
|
|
37,830
|
|
|
1,107,985
|
|
|
1,134,721
|
|
|
26,736
|
|
Total equity securities
|
$
|
15,620
|
|
|
16,143
|
|
|
523
|
|
|
17,765
|
|
|
18,159
|
|
|
394
|
|
•
|
regulatory compliance with U.S. federal securities laws, tax, anti-money laundering, bank secrecy, anti-bribery, anti-corruption and foreign asset control laws, among others;
|
•
|
disputes with our independent marketing firms, independent consultants and employee-agents over compensation, termination of contracts, noncompliance with applicable laws and regulations and related claims;
|
•
|
Foreign operated companies with U.S. Dollar-denominated policies. We face direct competition from companies that operate in the same manner as we operate in our international markets.
|
•
|
Companies foreign to the countries in which their policies are sold but that issue local currency policies. Another group of our competitors in the international marketplace consists of companies that are foreign to the countries in which their policies are sold but issue life insurance policies denominated in the local currencies of those countries. Local currency policies provide the benefit of assets located in the country of foreign residents, but entail risks of uncertainty due to local currency fluctuations, as well as the perceived instability and weakness of local currencies.
|
•
|
Locally operated companies with local currency policies. We compete with companies formed and operated in the country in which our foreign insureds reside. Generally, these companies are subject to risks of currency fluctuations, and they primarily use mortality tables based on experience of the local population as a whole. These mortality tables are typically based on significantly shorter life spans than those we use. As a result, the cost of insurance from these companies tends to be higher than ours. Although these companies typically market their policies to a broader section of the population than do our independent marketing firms and independent consultants, there can be no assurance that these companies will not endeavor to place a greater emphasis on our target market and compete more directly with us.
|
•
|
holders of shares of our Class B common stock elect a simple majority of our board of directors, and all of these shares are owned by the Harold E. Riley Trust; and
|
•
|
our board of directors may issue one or more series of preferred stock without the approval of our shareholders.
|
Exhibit Number
|
|
The following exhibits are filed herewith:
|
3.1
|
|
Restated and Amended Articles of Incorporation (a)
|
|
|
|
3.2
|
|
Amended and Restated Bylaws dated March 1, 2013 (b)
|
|
|
|
11
|
|
Statement re: Computation of per share earnings (see financial statements)
|
|
|
|
31.1
|
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act*
|
|
|
|
31.2
|
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act*
|
|
|
|
32.1
|
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act*
|
|
|
|
32.2
|
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act*
|
|
|
|
101.INS
|
|
XBRL Instance Document*
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema*
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase*
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase*
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase*
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase*
|
|
|
__________________
|
|
|
CITIZENS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Geoffrey M. Kolander
|
|
|
|
Geoffrey M. Kolander
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kay E. Osbourn
|
|
|
|
Kay E. Osbourn
|
|
|
|
President
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ David S. Jorgensen
|
|
|
|
David S. Jorgensen
|
|
|
|
Vice President, Chief Financial Officer and Treasurer
|
|
|
|
|
|
|
|
|
Date:
|
August 4, 2017
|
|
|
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