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(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company |
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Emerging growth company |
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|||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Class | Outstanding at April 28, 2021 | |||||||
Common Stock, $1.00 Par Value |
|
Page | |||||||||||
PART I
. FINANCIAL INFORMATION
|
|||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART I
I. OTHER INFORMATION
|
|||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
March 31,
2021 |
December 31, 2020 | ||||||||||
Assets: | |||||||||||
Investments: | |||||||||||
Fixed maturities—available for sale, at fair value (amortized cost: 2021—$
2020—$
|
$ |
|
$ |
|
|||||||
Policy loans |
|
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|||||||||
Other long-term investments (includes: 2021—$
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|||||||||
Short-term investments |
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|||||||||
Total investments |
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|||||||||
Cash |
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|||||||||
Accrued investment income |
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|||||||||
Other receivables |
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|||||||||
Deferred acquisition costs |
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|||||||||
Goodwill |
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|||||||||
Other assets |
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|||||||||
Total assets | $ |
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$ |
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|||||||
Liabilities: | |||||||||||
Future policy benefits | $ |
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$ |
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|||||||
Unearned and advance premium |
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|||||||||
Policy claims and other benefits payable |
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|||||||||
Other policyholders' funds |
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|||||||||
Total policy liabilities |
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|||||||||
Current and deferred income taxes |
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|||||||||
Short-term debt |
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|||||||||
Long-term debt (estimated fair value: 2021—$
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|||||||||
Other liabilities |
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|||||||||
Total liabilities |
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|||||||||
Commitments and Contingencies (Note 5) |
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|
|||||||||
Shareholders' equity: | |||||||||||
Preferred stock, par value $
|
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|||||||||
Common stock, par value $
|
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|
|||||||||
Additional paid-in-capital |
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|||||||||
Accumulated other comprehensive income (loss) |
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|
|||||||||
Retained earnings |
|
|
|||||||||
Treasury stock, at cost: (2021—
|
(
|
(
|
|||||||||
Total shareholders' equity |
|
|
|||||||||
Total liabilities and shareholders' equity | $ |
|
$ |
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Life premium | $ |
|
$ |
|
|||||||||||||||||||
Health premium |
|
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|||||||||||||||||||||
Other premium |
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|
|||||||||||||||||||||
Total premium |
|
|
|||||||||||||||||||||
Net investment income |
|
|
|||||||||||||||||||||
Realized gains (losses) |
|
(
|
|||||||||||||||||||||
Other income |
|
|
|||||||||||||||||||||
Total revenue |
|
|
|||||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Life policyholder benefits |
|
|
|||||||||||||||||||||
Health policyholder benefits |
|
|
|||||||||||||||||||||
Other policyholder benefits |
|
|
|||||||||||||||||||||
Total policyholder benefits |
|
|
|||||||||||||||||||||
Amortization of deferred acquisition costs |
|
|
|||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition costs |
|
|
|||||||||||||||||||||
Other operating expense |
|
|
|||||||||||||||||||||
Interest expense |
|
|
|||||||||||||||||||||
Total benefits and expenses |
|
|
|||||||||||||||||||||
Income before income taxes |
|
|
|||||||||||||||||||||
Income tax benefit (expense) |
(
|
(
|
|||||||||||||||||||||
Net income
|
$ |
|
$ |
|
|||||||||||||||||||
Basic net income per common share
|
$ |
|
$ |
|
|||||||||||||||||||
Diluted net income per common share
|
$ |
|
$ |
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net income
|
$ |
|
$ |
|
|||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Unrealized gains (losses) on fixed maturities: | |||||||||||||||||||||||
Unrealized holding gains (losses) arising during period |
(
|
(
|
|||||||||||||||||||||
Other reclassification adjustments included in net income |
(
|
|
|||||||||||||||||||||
Foreign exchange adjustment on fixed maturities recorded at fair value |
|
(
|
|||||||||||||||||||||
Unrealized gains (losses) on fixed maturities |
(
|
(
|
|||||||||||||||||||||
Unrealized gains (losses) on other investments |
|
(
|
|||||||||||||||||||||
Total unrealized investment gains (losses) |
(
|
(
|
|||||||||||||||||||||
Less applicable tax (expense) benefit |
|
|
|||||||||||||||||||||
Unrealized gains (losses) on investments, net of tax |
(
|
(
|
|||||||||||||||||||||
Deferred acquisition costs: | |||||||||||||||||||||||
Unrealized gains (losses) attributable to deferred acquisition costs |
|
|
|||||||||||||||||||||
Less applicable tax (expense) benefit |
(
|
(
|
|||||||||||||||||||||
Unrealized gains (losses) attributable to deferred acquisition costs, net of tax |
|
|
|||||||||||||||||||||
Foreign exchange translation: | |||||||||||||||||||||||
Foreign exchange translation adjustments, other than securities |
(
|
(
|
|||||||||||||||||||||
Less applicable tax (expense) benefit |
|
|
|||||||||||||||||||||
Foreign exchange translation adjustments, other than securities, net of tax |
(
|
(
|
|||||||||||||||||||||
Pension: | |||||||||||||||||||||||
Pension adjustments |
|
|
|||||||||||||||||||||
Less applicable tax (expense) benefit |
(
|
(
|
|||||||||||||||||||||
Pension adjustments, net of tax |
|
|
|||||||||||||||||||||
Other comprehensive income (loss) |
(
|
(
|
|||||||||||||||||||||
Comprehensive income (loss)
|
$ |
(
|
$ |
(
|
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — |
(
|
|
— |
(
|
||||||||||||||||||||||||||||||||||
Common dividends declared
($
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — |
(
|
— |
|
|
|
||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — |
(
|
|
|
||||||||||||||||||||||||||||||||||
Balance at March 31, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2019
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||
Cumulative effect of change in accounting principles, net of tax
(1)
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
Balance at January 1, 2020
|
|
|
|
|
|
(
|
|
||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | — | — | — |
(
|
|
— |
(
|
||||||||||||||||||||||||||||||||||
Common dividends declared
($
|
— | — | — | — |
(
|
— |
(
|
||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — |
(
|
(
|
||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — |
(
|
— |
(
|
|
|
||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — |
(
|
|
|
||||||||||||||||||||||||||||||||||
Balance at March 31, 2020
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||||||||||
Three Months Ended
March 31, |
|||||||||||
2021 | 2020 | ||||||||||
Cash provided from (used for) operating activities
|
$ |
|
$ |
|
|||||||
Cash provided from (used for) investing activities: | |||||||||||
Investments sold or matured: | |||||||||||
Fixed maturities available for sale—sold |
|
|
|||||||||
Fixed maturities available for sale—matured or other redemptions |
|
|
|||||||||
Other long-term investments |
|
|
|||||||||
Total investments sold or matured |
|
|
|||||||||
Acquisition of investments: | |||||||||||
Fixed maturities—available for sale |
(
|
(
|
|||||||||
Other long-term investments |
(
|
(
|
|||||||||
Total investments acquired |
(
|
(
|
|||||||||
Net (increase) decrease in policy loans |
|
(
|
|||||||||
Net (increase) decrease in short-term investments |
|
(
|
|||||||||
Additions to properties |
(
|
(
|
|||||||||
Other investing activities |
|
|
|||||||||
Investments in low-income housing interests |
(
|
(
|
|||||||||
Cash provided from (used for) investing activities
|
(
|
(
|
|||||||||
Cash provided from (used for) financing activities: | |||||||||||
Issuance of common stock |
|
|
|||||||||
Cash dividends paid to shareholders |
(
|
(
|
|||||||||
Repayment of debt |
|
(
|
|||||||||
Net borrowing (repayment) of commercial paper |
|
|
|||||||||
Acquisition of treasury stock |
(
|
(
|
|||||||||
Net receipts (payments) from deposit-type products |
(
|
(
|
|||||||||
Cash provided from (used for) financing activities
|
(
|
(
|
|||||||||
Effect of foreign exchange rate changes on cash |
(
|
|
|||||||||
Net increase (decrease) in cash |
(
|
|
|||||||||
Cash at beginning of year |
|
|
|||||||||
Cash at end of period | $ |
|
$ |
|
Accounting Pronouncements Adopted in the Current Year | ||||||||||||||||||||
Standard | Description | Effective Date | Effect on the Consolidated Financial Statements | |||||||||||||||||
ASU No. 2020-08
, Codification Improvements to Subtopic 310-20, Receivables-Nonrefundable Fees and Other Costs
|
The standard was issued as an amendment to ASU 2017-08, and clarifies that callable debt securities with a premium should be amortized to the next call date. | This standard became effective on January 1, 2021. | The adoption of this standard did not have a material impact on the consolidated financial statements. | |||||||||||||||||
Accounting Pronouncements Yet to be Adopted | ||||||||||||||||||||
Standard | Description | Effective Date | Effect on the Consolidated Financial Statements | |||||||||||||||||
ASU No. 2018-12/2019-09/2020-11
,
Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts,
with clarification guidance issued in November 2019 and 2020.
|
ASU 2018-12 is a significant change to our current accounting and disclosure of long-duration contracts, which is our primary business. The guidance was primarily issued to: 1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, 2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, 3) simplify the amortization of deferred acquisition costs, and 4) improve the effectiveness of the required disclosures. |
As a result of the issuance of ASU 2020-11 in November 2020, the effective date for this standard was changed to January 1, 2023. Early adoption is available.
|
The Company is currently in the process of evaluating the impact this standard will have on the consolidated financial statements and disclosures, specifically assessing key accounting policies, assumption and data inputs, controls, and enhanced system solutions.
As of the balance sheet date, the Company is continuing to upgrade its valuation systems as part of its implementation plan. In addition, significant progress has been made allowing the Company to execute parallel valuation runs on major blocks of business and is updating its accounting policies. Due to the overall nature of the standard, the impact on the consolidated financial statements is expected to be significant. At this time, the Company does not have an estimate of the impact. The Company does not expect to early adopt this ASU and has selected a modified retrospective transition method. |
|||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Available
for Sale Assets |
Deferred
Acquisition Costs |
Foreign
Exchange |
Pension
Adjustments |
Total | |||||||||||||||||||||||||
Balance at January 1, 2021
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax |
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
Reclassifications, net of tax |
(
|
|
|
|
(
|
||||||||||||||||||||||||
Other comprehensive income (loss) |
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
Balance at March 31, 2021
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||
Available
for Sale Assets |
Deferred
Acquisition Costs |
Foreign
Exchange |
Pension
Adjustments |
Total | |||||||||||||||||||||||||
Balance at January 1, 2020
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|||||||||||||||||||
Other comprehensive income (loss) before reclassifications, net of tax |
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
Reclassifications, net of tax |
|
|
|
|
|
||||||||||||||||||||||||
Other comprehensive income (loss) |
(
|
|
(
|
|
(
|
||||||||||||||||||||||||
Balance at March 31, 2020
|
$ |
|
$ |
(
|
$ |
(
|
$ |
(
|
$ |
|
Three Months Ended March 31, | Affected line items in the Statement of Operations | |||||||||||||||||||||||||||||||
Component Line Item | 2021 | 2020 | ||||||||||||||||||||||||||||||
Unrealized investment (gains) losses on available for sale assets: | ||||||||||||||||||||||||||||||||
Realized (gains) losses | $ |
(
|
$ |
|
Realized (gains) losses | |||||||||||||||||||||||||||
Amortization of (discount) premium |
|
|
Net investment income | |||||||||||||||||||||||||||||
Total before tax |
(
|
|
||||||||||||||||||||||||||||||
Tax |
|
(
|
Income taxes | |||||||||||||||||||||||||||||
Total after-tax |
(
|
|
||||||||||||||||||||||||||||||
Pension adjustments: | ||||||||||||||||||||||||||||||||
Amortization of prior service cost |
|
|
Other operating expense | |||||||||||||||||||||||||||||
Amortization of actuarial (gain) loss |
|
|
Other operating expense | |||||||||||||||||||||||||||||
Total before tax |
|
|
||||||||||||||||||||||||||||||
Tax |
(
|
(
|
Income taxes | |||||||||||||||||||||||||||||
Total after-tax |
|
|
||||||||||||||||||||||||||||||
Total reclassification (after-tax)
|
$ |
(
|
$ |
|
At March 31, 2021 | |||||||||||||||||||||||||||||||||||
Amortized Cost |
Allowance for Credit Losses |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value
(1)
|
% of Total
Fixed
Maturities
(2)
|
||||||||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
||||||||||||||||||||||||
States, municipalities, and political subdivisions |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Foreign governments |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Utilities |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Energy |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Total corporates |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Amortized
Cost |
Allowance for Credit Losses |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value
(1)
|
% of Total
Fixed
Maturities
(2)
|
||||||||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
||||||||||||||||||||||||
States, municipalities, and political subdivisions |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Foreign governments |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Utilities |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Energy |
|
(
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Total corporates |
|
(
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
|
|
(
|
|
|
|||||||||||||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
|
At March 31, 2021 | |||||||||||
Amortized
Cost, net |
Fair
Value |
||||||||||
Fixed maturities available for sale: | |||||||||||
Due in one year or less | $ |
|
$ |
|
|||||||
Due after one year through five years |
|
|
|||||||||
Due after five years through ten years |
|
|
|||||||||
Due after ten years through twenty years |
|
|
|||||||||
Due after twenty years |
|
|
|||||||||
Mortgage-backed and asset-backed securities |
|
|
|||||||||
$ |
|
$ |
|
Three Months Ended
March 31, |
|||||||||||||||||||||||||||||||||||
2021 | 2020 | % Change | |||||||||||||||||||||||||||||||||
Fixed maturities available for sale | $ |
|
$ |
|
|
||||||||||||||||||||||||||||||
Policy loans |
|
|
|
||||||||||||||||||||||||||||||||
Other long-term investments
(1)
|
|
|
|
||||||||||||||||||||||||||||||||
Short-term investments |
|
|
(
|
||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
Less investment expense |
(
|
(
|
|
||||||||||||||||||||||||||||||||
Net investment income
|
$ |
|
$ |
|
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||
Proceeds from sales
(1)
|
$ |
|
$ |
|
|||||||||||||||||||
Gross realized gains |
|
|
|||||||||||||||||||||
Gross realized losses |
(
|
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Realized investment gains (losses): | |||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||
Sales and other
(1)
|
$ |
|
$ |
|
|||||||||||||||||||
Provision for credit losses |
|
(
|
|||||||||||||||||||||
Fair value option—change in fair value |
|
|
|||||||||||||||||||||
Other investments |
(
|
|
|||||||||||||||||||||
Realized gains (losses) from investments
|
|
(
|
|||||||||||||||||||||
Applicable tax |
(
|
|
|||||||||||||||||||||
Realized gains (losses), net of tax
|
$ |
|
$ |
(
|
Fair Value Measurement at March 31, 2021 Using: | |||||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total Fair
Value |
||||||||||||||||||||
Fixed maturities available for sale | |||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
States, municipalities, and political subdivisions |
|
|
|
|
|||||||||||||||||||
Foreign governments |
|
|
|
|
|||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||
Financial |
|
|
|
|
|||||||||||||||||||
Utilities |
|
|
|
|
|||||||||||||||||||
Energy |
|
|
|
|
|||||||||||||||||||
Other corporate sectors |
|
|
|
|
|||||||||||||||||||
Total corporates |
|
|
|
|
|||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|||||||||||||||||||
Other asset-backed securities |
|
|
|
|
|||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Percentage of total |
|
% |
|
% |
|
% |
|
% |
Fair Value Measurement at December 31, 2020 Using: | |||||||||||||||||||||||
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
Total Fair
Value |
||||||||||||||||||||
Fixed maturities available for sale | |||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
States, municipalities, and political subdivisions |
|
|
|
|
|||||||||||||||||||
Foreign governments |
|
|
|
|
|||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||
Financial |
|
|
|
|
|||||||||||||||||||
Utilities |
|
|
|
|
|||||||||||||||||||
Energy |
|
|
|
|
|||||||||||||||||||
Other corporate sectors |
|
|
|
|
|||||||||||||||||||
Total corporates |
|
|
|
|
|||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|||||||||||||||||||
Other asset-backed securities |
|
|
|
|
|||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Percentage of total |
|
% |
|
% |
|
% |
|
% |
Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Asset-
backed Securities
|
Collateralized
Debt Obligations |
Corporates | Total | ||||||||||||||||||||
Balance at January 1, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Included in realized gains / losses |
|
(
|
|
(
|
|||||||||||||||||||
Included in other comprehensive income |
(
|
|
(
|
(
|
|||||||||||||||||||
Acquisitions |
|
|
|
|
|||||||||||||||||||
Sales |
|
(
|
|
(
|
|||||||||||||||||||
Amortization |
|
|
|
|
|||||||||||||||||||
Other
(1)
|
|
(
|
(
|
(
|
|||||||||||||||||||
Transfers into Level 3
(2)
|
|
|
|
|
|||||||||||||||||||
Transfers out of Level 3
(2)
|
|
|
|
|
|||||||||||||||||||
Balance at March 31, 2021
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Percent of total fixed maturities |
|
% |
|
% |
|
% |
|
% |
Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Asset-
backed Securities
|
Collateralized
Debt Obligations |
Corporates | Total | ||||||||||||||||||||
Balance at January 1, 2020
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Included in realized gains / losses |
|
|
|
|
|||||||||||||||||||
Included in other comprehensive income |
(
|
(
|
(
|
(
|
|||||||||||||||||||
Acquisitions |
|
|
|
|
|||||||||||||||||||
Sales |
|
|
|
|
|||||||||||||||||||
Amortization |
|
|
|
|
|||||||||||||||||||
Other
(1)
|
(
|
(
|
(
|
(
|
|||||||||||||||||||
Transfers into Level 3
(2)
|
|
|
|
|
|||||||||||||||||||
Transfers out of Level 3
(2)
|
|
|
|
|
|||||||||||||||||||
Balance at March 31, 2020
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||
Percent of total fixed maturities |
|
% |
|
% |
|
% |
|
% |
Changes in Unrealized Gains/Losses included in Other Comprehensive Income for Assets Held at the End of the Period | |||||||||||||||||||||||
Asset-
backed Securities |
Collateralized
Debt Obligations |
Corporates | Total | ||||||||||||||||||||
At March 31, 2021
|
$ |
(
|
$ |
|
$ |
(
|
$ |
(
|
|||||||||||||||
At March 31, 2020
|
(
|
(
|
(
|
(
|
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||
Number of issues (CUSIPs) held: | |||||||||||||||||
As of March 31, 2021 |
|
|
|
||||||||||||||
As of December 31, 2020 |
|
|
|
At March 31, 2021 | |||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
||||||||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
Investment grade securities: | |||||||||||||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
States, municipalities and political subdivisions |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Foreign governments |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Utilities |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Energy |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Total corporates |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Total investment grade securities |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Below investment grade securities: | |||||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Utilities |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Energy |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total corporates |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total below investment grade securities |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
At December 31, 2020 | |||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Longer | Total | |||||||||||||||||||||||||||||||||
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
||||||||||||||||||||||||||||||
Fixed maturities available for sale: | |||||||||||||||||||||||||||||||||||
Investment grade securities: | |||||||||||||||||||||||||||||||||||
U.S. Government direct, guaranteed, and government-sponsored enterprises | $ |
|
$ |
(
|
$ |
|
$ |
|
$ |
|
$ |
(
|
|||||||||||||||||||||||
States, municipalities and political subdivisions |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Foreign governments |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Utilities |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Energy |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Total corporates |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
(
|
|
|
|
(
|
|||||||||||||||||||||||||||||
Total investment grade securities |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Below investment grade securities: | |||||||||||||||||||||||||||||||||||
States, municipalities and political subdivisions |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Corporates, by sector: | |||||||||||||||||||||||||||||||||||
Financial |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Utilities |
|
|
|
|
|
|
|||||||||||||||||||||||||||||
Energy |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Other corporate sectors |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total corporates |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Collateralized debt obligations |
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Other asset-backed securities |
|
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total below investment grade securities |
|
(
|
|
(
|
|
(
|
|||||||||||||||||||||||||||||
Total fixed maturities
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
$ |
|
$ |
(
|
Three Months Ended
March 31, |
||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Allowance for credit losses beginning balance
|
$ |
|
$ |
|
||||||||||||||||||||||
Additions to allowance for which credit losses were not previously recorded |
|
|
||||||||||||||||||||||||
Additions (reductions) to allowance for fixed maturities that previously had an allowance |
|
|
||||||||||||||||||||||||
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period |
(
|
|
||||||||||||||||||||||||
Allowance for credit losses ending balance
|
$ |
|
$ |
|
March 31,
2021 |
December 31, 2020 | ||||||||||
Investment funds | $ |
|
$ |
|
|||||||
Commercial mortgage loan participations |
|
|
|||||||||
Other |
|
|
|||||||||
Total
|
$ |
|
$ |
|
Fair Value | Unfunded Commitments | ||||||||||||||||||||||||||||
Investment Category |
March 31,
2021 |
December 31, 2020 |
March 31,
2021 |
Redemption Term/Notice | |||||||||||||||||||||||||
Commercial mortgage loans | $ |
|
$ |
|
$ |
|
Portion non-redeemable and fully redeemable after
|
||||||||||||||||||||||
Opportunistic credit |
|
|
|
Initial
|
|||||||||||||||||||||||||
Other |
|
|
|
Not redeemable | |||||||||||||||||||||||||
Total investment funds | $ |
|
$ |
|
$ |
|
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||
Property type: | |||||||||||||||||||||||
Mixed use | $ |
|
|
$ |
|
|
|||||||||||||||||
Office |
|
|
|
|
|||||||||||||||||||
Hospitality |
|
|
|
|
|||||||||||||||||||
Retail |
|
|
|
|
|||||||||||||||||||
Industrial |
|
|
|
|
|||||||||||||||||||
Multi-family |
|
|
|
|
|||||||||||||||||||
Total recorded investment |
|
|
|
|
|||||||||||||||||||
Less allowance for credit losses |
(
|
(
|
(
|
(
|
|||||||||||||||||||
Carrying value, net of allowance for credit losses
|
$ |
|
|
$ |
|
|
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Value | % of Total | Carrying Value | % of Total | ||||||||||||||||||||
Geographic location: | |||||||||||||||||||||||
California | $ |
|
|
$ |
|
|
|||||||||||||||||
Virginia |
|
|
|
|
|||||||||||||||||||
New York |
|
|
|
|
|||||||||||||||||||
Pennsylvania |
|
|
|
|
|||||||||||||||||||
Indiana |
|
|
|
|
|||||||||||||||||||
Florida |
|
|
|
|
|||||||||||||||||||
Other |
|
|
|
|
|||||||||||||||||||
Total recorded investment |
|
|
|
|
|||||||||||||||||||
Less allowance for credit losses |
(
|
(
|
(
|
(
|
|||||||||||||||||||
Carrying value, net of allowance for credit losses
|
$ |
|
|
$ |
|
|
Net Book Value of Commercial Mortgage Loans Receivable by Year of Origination | ||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Risk Rating: | Number of Loans | 2021 | 2020 | 2019 | 2018 | 2017 | Total | |||||||||||||||||||||||||||||||||||||
Low |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||||||
Moderate |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
High |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total commercial mortgage loans |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
||||||||||||||||||||||||||||||||
Less allowance for credit losses on the investment pool |
(
|
|||||||||||||||||||||||||||||||||||||||||||
Less allowance for credit losses on individual loans |
|
|||||||||||||||||||||||||||||||||||||||||||
Carrying value, net of valuation allowance
|
$ |
|
Net Book Value of Commercial Mortgage Loans Receivable by Year of Origination | ||||||||||||||||||||||||||||||||||||||
As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Risk Rating: | Number of Loans | 2020 | 2019 | 2018 | 2017 | Total | ||||||||||||||||||||||||||||||||
Low |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||||||||||||
Moderate |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
High |
|
|
|
|
|
|
||||||||||||||||||||||||||||||||
Total commercial mortgage loans |
|
$ |
|
$ |
|
$ |
|
$ |
|
|
||||||||||||||||||||||||||||
Less allowance for credit losses on the investment pool |
(
|
|||||||||||||||||||||||||||||||||||||
Less allowance for credit losses on individual loans |
(
|
|||||||||||||||||||||||||||||||||||||
Carrying value, net of valuation allowance
|
$ |
|
Three Months Ended
March 31, |
||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Allowance for credit losses beginning balance
|
$ |
|
$ |
|
||||||||||||||||||||||
Cumulative effect of adoption ASU 2016-13 |
|
|
||||||||||||||||||||||||
Provision (reversal) for credit losses |
(
|
|
||||||||||||||||||||||||
Loans charge-off |
|
|
||||||||||||||||||||||||
Allowance for credit losses ending balance
|
$ |
|
$ |
|
March 31,
2021 |
December 31,
2020 |
||||||||||
Balance at beginning of period
|
$ |
|
$ |
|
|||||||
Incurred related to: | |||||||||||
Current year |
|
|
|||||||||
Prior year |
(
|
(
|
|||||||||
Total incurred |
|
|
|||||||||
Paid related to: | |||||||||||
Current year |
|
|
|||||||||
Prior year |
|
|
|||||||||
Total paid |
|
|
|||||||||
Balance at end of period
|
$ |
|
$ |
|
March 31,
2021 |
December 31,
2020 |
||||||||||
Policy claims and other benefits payable: | |||||||||||
Life insurance | $ |
|
$ |
|
|||||||
Health insurance |
|
|
|||||||||
Total | $ |
|
$ |
|
Fair Value Determined by: | |||||||||||||||||||||||||||||
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
Significant
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
Amount
|
% to
Total
|
|||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||
Financial | $ |
|
$ |
|
$ |
|
$ |
|
|
||||||||||||||||||||
Utilities |
|
|
|
|
|
||||||||||||||||||||||||
Energy |
|
|
|
|
|
||||||||||||||||||||||||
Other corporates |
|
|
|
|
|
||||||||||||||||||||||||
Total corporate bonds |
|
|
|
|
|
||||||||||||||||||||||||
Exchange traded fund
(1)
|
|
|
|
|
|
||||||||||||||||||||||||
Other bonds |
|
|
|
|
|
||||||||||||||||||||||||
Guaranteed annuity contract
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
Short-term investments |
|
|
|
|
|
||||||||||||||||||||||||
Other |
|
|
|
|
|
||||||||||||||||||||||||
$ |
|
$ |
|
$ |
|
|
|
||||||||||||||||||||||
Other long-term investments
(3)
|
|
|
|||||||||||||||||||||||||||
Total pension assets
|
$ |
|
|
Fair Value Determined by: | |||||||||||||||||||||||||||||
Quoted Prices in
Active Markets
for Identical
Assets (Level 1)
|
Significant
Observable
Inputs (Level 2)
|
Significant
Unobservable
Inputs (Level 3)
|
Total
Amount
|
% to
Total
|
|||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||
Financial | $ |
|
$ |
|
$ |
|
$ |
|
|
||||||||||||||||||||
Utilities |
|
|
|
|
|
||||||||||||||||||||||||
Energy |
|
|
|
|
|
||||||||||||||||||||||||
Other corporates |
|
|
|
|
|
||||||||||||||||||||||||
Total corporate bonds |
|
|
|
|
|
||||||||||||||||||||||||
Exchange traded fund
(1)
|
|
|
|
|
|
||||||||||||||||||||||||
Other bonds |
|
|
|
|
|
||||||||||||||||||||||||
Guaranteed annuity contract
(2)
|
|
|
|
|
|
||||||||||||||||||||||||
Short-term investments |
|
|
|
|
|
||||||||||||||||||||||||
Other |
|
|
|
|
|
||||||||||||||||||||||||
$ |
|
$ |
|
$ |
|
|
|
||||||||||||||||||||||
Other long-term investments
(3)
|
|
|
|||||||||||||||||||||||||||
Total pension assets
|
$ |
|
|
Three Months Ended
March 31, |
|||||||||||
2021 | 2020 | ||||||||||
Premiums paid for insurance coverage | $ |
|
$ |
|
|||||||
March 31,
2021 |
December 31,
2020 |
||||||||||
Total investments: | |||||||||||
Company owned life insurance | $ |
|
$ |
|
|||||||
Exchange traded funds |
|
|
|||||||||
$ |
|
$ |
|
March 31,
2021 |
December 31,
2020 |
||||||||||
Defined benefit pension | $ |
|
$ |
|
|||||||
SERP |
|
|
|||||||||
Pension benefit obligation | $ |
|
$ |
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Service cost | $ |
|
$ |
|
|||||||||||||||||||
Interest cost |
|
|
|||||||||||||||||||||
Expected return on assets |
(
|
(
|
|||||||||||||||||||||
Amortization: | |||||||||||||||||||||||
Prior service cost |
|
|
|||||||||||||||||||||
Actuarial (gain) loss |
|
|
|||||||||||||||||||||
Net periodic benefit cost
|
$ |
|
$ |
|
Three Months Ended
March 31, |
|||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Basic weighted average shares outstanding |
|
|
|||||||||||||||||||||
Weighted average dilutive options outstanding |
|
|
|||||||||||||||||||||
Diluted weighted average shares outstanding |
|
|
|||||||||||||||||||||
Antidilutive shares |
|
|
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Life | Health | Annuity | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Distribution Channel | Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
Amount |
% of
Total |
||||||||||||||||||||||||||||||||||||||||||
American Income | $ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||||||||||||||||||||||||||||||||||||
Direct to Consumer |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Liberty National |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
United American |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Family Heritage |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Other |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Life | Health | Annuity | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Distribution Channel | Amount |
% of
Total
|
Amount |
% of
Total
|
Amount |
% of
Total
|
Amount |
% of
Total
|
||||||||||||||||||||||||||||||||||||||||||
American Income | $ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
||||||||||||||||||||||||||||||||||||||
Direct to Consumer |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Liberty National |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
United American |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Family Heritage |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
Other |
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Life | Health | Annuity | Investment | Corporate & Other | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||
Premium | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||
Net investment income |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Other income |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total revenue |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Policy benefits |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Required interest on reserves |
(
|
(
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Required interest on DAC |
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Amortization of acquisition costs |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition costs |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Insurance administrative expense
(1)
|
|
|
|
|
|
|
(2) |
|
||||||||||||||||||||||||||||||||||||
Parent expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Interest expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total expenses |
|
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Subtotal |
|
|
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||||||||||
Non-operating items | — | — | — | — | — |
|
(2) |
|
||||||||||||||||||||||||||||||||||||
Measure of segment profitability (pretax)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
|||||||||||||||||||||||||||||||
Realized gain (loss)—investments |
|
|||||||||||||||||||||||||||||||||||||||||||
Legal proceedings |
(
|
|||||||||||||||||||||||||||||||||||||||||||
$ |
|
Three Months Ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Life | Health | Annuity | Investment | Corporate & Other | Adjustments | Consolidated | ||||||||||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||||||||||
Premium | $ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||||||||||||||||||||||||
Net investment income |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Other income |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total revenue |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Policy benefits |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Required interest on reserves |
(
|
(
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Required interest on DAC |
|
|
|
(
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Amortization of acquisition costs |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition costs |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Insurance administrative expense
(1)
|
|
|
|
|
|
|
(2) |
|
||||||||||||||||||||||||||||||||||||
Parent expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Stock-based compensation expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Interest expense |
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Total expenses |
|
|
(
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||
Subtotal |
|
|
|
|
(
|
(
|
|
|||||||||||||||||||||||||||||||||||||
Non-operating items | — | — | — | — | — |
|
(2) |
|
||||||||||||||||||||||||||||||||||||
Measure of segment profitability (pretax)
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
(
|
$ |
|
|
|||||||||||||||||||||||||||||||
Realized gain (loss)—investments |
(
|
|||||||||||||||||||||||||||||||||||||||||||
Legal proceedings |
(
|
|||||||||||||||||||||||||||||||||||||||||||
$ |
|
![]() |
How Globe Life Views Its Operations.
Globe Life Inc. is the holding company for a group of insurance companies that market primarily individual life and supplemental health insurance to lower middle to middle income households throughout the United States. We view our operations by segments, which are the insurance product lines of life, supplemental health, and annuities, and the investment segment that supports the product lines. Segments are aligned based on their common characteristics, comparability of the profit margins, and management techniques used to operate each segment.
|
|||||||
![]() |
Insurance Product Line Segments.
The insurance product line segments involve the marketing, underwriting, and administration of policies. Each product line is further segmented by the various distribution channels that market the insurance policies. Each distribution channel operates in a niche market offering insurance products designed for that particular market. Whether analyzing profitability of a segment as a whole, or the individual distribution channels within the segment, the measure of profitability used by management is the underwriting margin, as seen below:
|
|||||||
Premium revenue
(Policy obligations)
(Policy acquisition costs and commissions)
Underwriting margin
|
||||||||
![]() |
Investment Segment.
The investment segment involves the management of our capital resources, including investments and the management of corporate debt and liquidity. Our measure of profitability for the investment segment is excess investment income, as seen below:
|
|||||||
Net investment income
(Required interest on net policy liabilities)
(Financing costs)
Excess investment income
|
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | Change | % | ||||||||||||||||||||
Life insurance underwriting margin | $ | 136,646 | $ | 178,803 | $ | (42,157) | (24) | ||||||||||||||||
Health insurance underwriting margin | 72,180 | 63,465 | 8,715 | 14 | |||||||||||||||||||
Annuity underwriting margin | 2,187 | 2,270 | (83) | (4) | |||||||||||||||||||
Excess investment income | 60,544 | 62,737 | (2,193) | (3) | |||||||||||||||||||
Other insurance: | |||||||||||||||||||||||
Other income | 295 | 325 | (30) | (9) | |||||||||||||||||||
Administrative expense | (66,176) | (63,620) | (2,556) | 4 | |||||||||||||||||||
Corporate and other | (10,206) | (11,687) | 1,481 | (13) | |||||||||||||||||||
Pre-tax total | 195,470 | 232,293 | (36,823) | (16) | |||||||||||||||||||
Applicable taxes | (35,379) | (43,549) | 8,170 | (19) | |||||||||||||||||||
Net operating income
|
160,091 | 188,744 | (28,653) | (15) | |||||||||||||||||||
Reconciling items, net of tax: | |||||||||||||||||||||||
Realized gain (loss)—investments | 22,240 | (20,617) | 42,857 | ||||||||||||||||||||
Legal proceedings | (3,814) | (2,587) | (1,227) | ||||||||||||||||||||
Net income
|
$ | 178,517 | $ | 165,540 | $ | 12,977 | 8 |
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Premium | Amount | % of Premium | Amount | % | ||||||||||||||||||||||||||||||
Premium and policy charges | $ | 708,119 | 100 | $ | 649,630 | 100 | $ | 58,489 | 9 | ||||||||||||||||||||||||||
Policy obligations | 517,631 | 73 | 421,670 | 65 | 95,961 | 23 | |||||||||||||||||||||||||||||
Required interest on reserves | (179,925) | (25) | (171,205) | (27) | (8,720) | 5 | |||||||||||||||||||||||||||||
Net policy obligations | 337,706 | 48 | 250,465 | 38 | 87,241 | 35 | |||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition expenses | 56,668 | 8 | 53,936 | 8 | 2,732 | 5 | |||||||||||||||||||||||||||||
Amortization of acquisition costs | 177,099 | 25 | 166,426 | 26 | 10,673 | 6 | |||||||||||||||||||||||||||||
Total expense | 571,473 | 81 | 470,827 | 72 | 100,646 | 21 | |||||||||||||||||||||||||||||
Insurance underwriting margin
|
$ | 136,646 | 19 | $ | 178,803 | 28 | $ | (42,157) | (24) |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
American Income | $ | 334,895 | 47 | $ | 302,852 | 47 | $ | 32,043 | 11 | ||||||||||||||||||||||||||
Direct to Consumer | 244,028 | 34 | 220,043 | 34 | 23,985 | 11 | |||||||||||||||||||||||||||||
Liberty National | 75,737 | 11 | 72,868 | 11 | 2,869 | 4 | |||||||||||||||||||||||||||||
Other | 53,459 | 8 | 53,867 | 8 | (408) | (1) | |||||||||||||||||||||||||||||
Total
|
$ | 708,119 | 100 | $ | 649,630 | 100 | $ | 58,489 | 9 |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
American Income | $ | 69,623 | 54 | $ | 62,869 | 57 | $ | 6,754 | 11 | ||||||||||||||||||||||||||
Direct to Consumer | 39,691 | 31 | 32,547 | 29 | 7,144 | 22 | |||||||||||||||||||||||||||||
Liberty National | 16,225 | 13 | 12,488 | 11 | 3,737 | 30 | |||||||||||||||||||||||||||||
Other | 2,688 | 2 | 2,709 | 3 | (21) | (1) | |||||||||||||||||||||||||||||
Total
|
$ | 128,227 | 100 | $ | 110,613 | 100 | $ | 17,614 | 16 |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
American Income | $ | 58,597 | 57 | $ | 50,669 | 60 | $ | 7,928 | 16 | ||||||||||||||||||||||||||
Direct to Consumer | 30,627 | 30 | 21,094 | 25 | 9,533 | 45 | |||||||||||||||||||||||||||||
Liberty National | 11,240 | 11 | 10,666 | 12 | 574 | 5 | |||||||||||||||||||||||||||||
Other | 2,330 | 2 | 2,652 | 3 | (322) | (12) | |||||||||||||||||||||||||||||
Total
|
$ | 102,794 | 100 | $ | 85,081 | 100 | $ | 17,713 | 21 |
At March 31,
|
Change | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
American Income | 9,918 | 7,630 | 2,288 | 30 | |||||||||||||||||||
At March 31,
|
Change | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Liberty National | 2,734 | 2,648 | 86 | 3 |
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount |
% of
Premium |
Amount |
% of
Premium |
Amount | % | ||||||||||||||||||||||||||||||
Premium | $ | 294,173 | 100 | $ | 280,205 | 100 | $ | 13,968 | 5 | ||||||||||||||||||||||||||
Policy obligations | 187,829 | 64 | 178,711 | 64 | 9,118 | 5 | |||||||||||||||||||||||||||||
Required interest on reserves | (24,995) | (9) | (22,510) | (8) | (2,485) | 11 | |||||||||||||||||||||||||||||
Net policy obligations | 162,834 | 55 | 156,201 | 56 | 6,633 | 4 | |||||||||||||||||||||||||||||
Commissions, premium taxes, and non-deferred acquisition expenses | 22,990 | 8 | 24,995 | 9 | (2,005) | (8) | |||||||||||||||||||||||||||||
Amortization of acquisition costs | 36,169 | 12 | 35,544 | 12 | 625 | 2 | |||||||||||||||||||||||||||||
Total expense | 221,993 | 75 | 216,740 | 77 | 5,253 | 2 | |||||||||||||||||||||||||||||
Insurance underwriting margin
|
$ | 72,180 | 25 | $ | 63,465 | 23 | $ | 8,715 | 14 |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
United American | $ | 117,087 | 40 | $ | 110,059 | 39 | $ | 7,028 | 6 | ||||||||||||||||||||||||||
Family Heritage | 83,335 | 28 | 76,983 | 28 | 6,352 | 8 | |||||||||||||||||||||||||||||
Liberty National | 47,040 | 16 | 47,640 | 17 | (600) | (1) | |||||||||||||||||||||||||||||
American Income | 27,351 | 9 | 25,727 | 9 | 1,624 | 6 | |||||||||||||||||||||||||||||
Direct to Consumer | 19,360 | 7 | 19,796 | 7 | (436) | (2) | |||||||||||||||||||||||||||||
Total
|
$ | 294,173 | 100 | $ | 280,205 | 100 | $ | 13,968 | 5 |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
United American | $ | 12,945 | 33 | $ | 14,464 | 35 | $ | (1,519) | (11) | ||||||||||||||||||||||||||
Family Heritage | 15,579 | 39 | 16,281 | 39 | (702) | (4) | |||||||||||||||||||||||||||||
Liberty National | 5,839 | 15 | 5,943 | 14 | (104) | (2) | |||||||||||||||||||||||||||||
American Income | 4,611 | 12 | 4,752 | 11 | (141) | (3) | |||||||||||||||||||||||||||||
Direct to Consumer | 642 | 1 | 590 | 1 | 52 | 9 | |||||||||||||||||||||||||||||
Total
|
$ | 39,616 | 100 | $ | 42,030 | 100 | $ | (2,414) | (6) |
Three Months Ended March 31, |
Increase
(Decrease) |
||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % | ||||||||||||||||||||||||||||||
United American | $ | 14,306 | 37 | $ | 19,005 | 44 | $ | (4,699) | (25) | ||||||||||||||||||||||||||
Family Heritage | 13,811 | 36 | 13,446 | 31 | 365 | 3 | |||||||||||||||||||||||||||||
Liberty National | 4,815 | 13 | 5,286 | 12 | (471) | (9) | |||||||||||||||||||||||||||||
American Income | 4,587 | 12 | 4,507 | 11 | 80 | 2 | |||||||||||||||||||||||||||||
Direct to Consumer | 759 | 2 | 767 | 2 | (8) | (1) | |||||||||||||||||||||||||||||
Total
|
$ | 38,278 | 100 | $ | 43,011 | 100 | $ | (4,733) | (11) |
At March 31,
|
Change | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Family Heritage Division | 1,285 | 1,227 | 58 | 5 |
Three Months Ended
March 31, |
Change | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Net investment income | $ | 235,820 | $ | 228,991 | $ | 6,829 | 3 | ||||||||||||||||
Interest on net insurance policy liabilities: | |||||||||||||||||||||||
Interest on reserves | (214,925) | (204,171) | (10,754) | 5 | |||||||||||||||||||
Interest on deferred acquisition costs | 60,827 | 58,725 | 2,102 | 4 | |||||||||||||||||||
Net required interest | (154,098) | (145,446) | (8,652) | 6 | |||||||||||||||||||
Financing costs | (21,178) | (20,808) | (370) | 2 | |||||||||||||||||||
Excess investment income
|
$ | 60,544 | $ | 62,737 | $ | (2,193) | (3) | ||||||||||||||||
Excess investment income per diluted share
|
$ | 0.58 | $ | 0.57 | $ | 0.01 | 2 | ||||||||||||||||
Mean invested assets (at amortized cost) | $ | 18,646,061 | $ | 17,472,498 | $ | 1,173,563 | 7 | ||||||||||||||||
Average net insurance policy liabilities
(1)
|
10,775,618 | 10,277,692 | 497,926 | 5 | |||||||||||||||||||
Average debt and preferred securities (at amortized cost) | 1,939,394 | 1,720,755 | 218,639 | 13 |
Three Months Ended
March 31, |
Increase
(Decrease) |
||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Interest on funded debt | $ | 19,746 | $ | 17,491 | $ | 2,255 | 13 | ||||||||||||||||
Interest on term loans | — | 644 | (644) | (100) | |||||||||||||||||||
Interest on short-term debt | 1,432 | 2,673 | (1,241) | (46) | |||||||||||||||||||
Financing costs
|
$ | 21,178 | $ | 20,808 | $ | 370 | 2 |
Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
Fixed maturities: | |||||||||||||||||||||||
Sales | $ | (8,599) | $ | (0.08) | $ | 2,087 | $ | 0.02 | |||||||||||||||
Matured or other redemptions
(1)
|
20,800 | 0.20 | 1,811 | 0.02 | |||||||||||||||||||
Provision for credit losses | 2,643 | 0.02 | (25,165) | (0.23) | |||||||||||||||||||
Fair value option—change in fair value | 7,809 | 0.07 | 461 | — | |||||||||||||||||||
Other | (413) | — | 189 | — | |||||||||||||||||||
Total realized gains (losses) | $ | 22,240 | $ | 0.21 | $ | (20,617) | $ | (0.19) |
Three Months Ended
March 31, |
|||||||||||
2021 | 2020 | ||||||||||
Cost of acquisitions: | |||||||||||
Investment-grade corporate securities | $ | 260,002 | $ | 85,409 | |||||||
Investment-grade municipal securities | 33,228 | 117,601 | |||||||||
Other investment-grade securities | 5,619 | 8,744 | |||||||||
Total fixed maturity acquisitions
(1)
|
$ | 298,849 | $ | 211,754 | |||||||
Effective annual yield (one year compounded)
(2)
|
3.41 | % | 3.81 | % | |||||||
Average life (in years, to next call) | 29.6 | 14.9 | |||||||||
Average life (in years, to maturity) | 33.7 | 27.0 | |||||||||
Average rating | A | A+ |
At | |||||||||||||||||
March 31,
2021 |
December 31, 2020 |
March 31,
2020 |
|||||||||||||||
Average annual effective yield
(1)
|
5.24% | 5.28% | 5.39% | ||||||||||||||
Average life, in years, to: | |||||||||||||||||
Next call
(2)
|
16.2 | 16.2 | 16.7 | ||||||||||||||
Maturity
(2)
|
19.0 | 19.0 | 19.2 | ||||||||||||||
Effective duration to: | |||||||||||||||||
Next call
(2,3)
|
10.6 | 11.0 | 10.6 | ||||||||||||||
Maturity
(2,3)
|
11.9 | 12.3 | 11.6 |
Below Investment Grade | Total Fixed Maturities | % of Total Fixed Maturities | ||||||||||||||||||||||||||||||||||||
Amortized
Cost, net |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
Amortized
Cost, net |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
At Amortized Cost, net | At Fair Value | |||||||||||||||||||||||||||||
Corporates: | ||||||||||||||||||||||||||||||||||||||
Financial | ||||||||||||||||||||||||||||||||||||||
Insurance - life, health, P&C | $ | 57,612 | $ | 4,076 | $ | (8,484) | $ | 53,204 | $ | 2,271,939 | $ | 410,461 | $ | (11,885) | $ | 2,670,515 | 13 | 13 | ||||||||||||||||||||
Banks | 27,005 | 422 | — | 27,427 | 969,244 | 169,848 | (4,044) | 1,135,048 | 6 | 6 | ||||||||||||||||||||||||||||
Other financial | 114,935 | 17 | (5,872) | 109,080 | 1,216,893 | 139,185 | (11,737) | 1,344,341 | 7 | 7 | ||||||||||||||||||||||||||||
Total financial | 199,552 | 4,515 | (14,356) | 189,711 | 4,458,076 | 719,494 | (27,666) | 5,149,904 | 26 | 26 | ||||||||||||||||||||||||||||
Utilities | ||||||||||||||||||||||||||||||||||||||
Electric | 50,079 | 5,135 | (297) | 54,917 | 1,415,221 | 337,625 | (763) | 1,752,083 | 8 | 9 | ||||||||||||||||||||||||||||
Gas and water | — | — | — | — | 561,650 | 87,510 | (1,538) | 647,622 | 3 | 3 | ||||||||||||||||||||||||||||
Total utilities | 50,079 | 5,135 | (297) | 54,917 | 1,976,871 | 425,135 | (2,301) | 2,399,705 | 11 | 12 | ||||||||||||||||||||||||||||
Industrial - Energy | ||||||||||||||||||||||||||||||||||||||
Pipelines | 85,302 | 2,009 | (2,782) | 84,529 | 921,637 | 144,321 | (3,305) | 1,062,653 | 5 | 5 | ||||||||||||||||||||||||||||
Exploration and production | 100,712 | 10,316 | (542) | 110,486 | 576,633 | 82,332 | (6,511) | 652,454 | 4 | 3 | ||||||||||||||||||||||||||||
Oil field services | — | — | — | — | 49,794 | 11,160 | — | 60,954 | — | — | ||||||||||||||||||||||||||||
Refiner | — | — | — | — | 89,288 | 20,167 | — | 109,455 | 1 | 1 | ||||||||||||||||||||||||||||
Driller | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total energy | 186,014 | 12,325 | (3,324) | 195,015 | 1,637,352 | 257,980 | (9,816) | 1,885,516 | 10 | 9 | ||||||||||||||||||||||||||||
Industrial - Basic materials | ||||||||||||||||||||||||||||||||||||||
Chemicals | — | — | — | — | 669,487 | 99,334 | (1,875) | 766,946 | 4 | 4 | ||||||||||||||||||||||||||||
Metals and mining | — | — | — | — | 406,445 | 105,609 | — | 512,054 | 2 | 2 | ||||||||||||||||||||||||||||
Forestry products and paper | — | — | — | — | 88,681 | 15,792 | — | 104,473 | 1 | 1 | ||||||||||||||||||||||||||||
Total basic materials | — | — | — | — | 1,164,613 | 220,735 | (1,875) | 1,383,473 | 7 | 7 | ||||||||||||||||||||||||||||
Industrial - Consumer, non-cyclical | 84,358 | 6,887 | (2,173) | 89,072 | 2,215,755 | 356,403 | (4,168) | 2,567,990 | 13 | 13 | ||||||||||||||||||||||||||||
Other industrials | 25,638 | 3,344 | — | 28,982 | 1,268,921 | 223,307 | (2,628) | 1,489,600 | 7 | 7 | ||||||||||||||||||||||||||||
Industrial - Transportation | 25,659 | 3,951 | (120) | 29,490 | 567,389 | 117,883 | (150) | 685,122 | 3 | 3 | ||||||||||||||||||||||||||||
Other corporate sectors | 179,727 | 18,328 | (3,634) | 194,421 | 1,612,317 | 218,475 | (15,932) | 1,814,860 | 9 | 9 | ||||||||||||||||||||||||||||
Total corporates | 751,027 | 54,485 | (23,904) | 781,608 | 14,901,294 | 2,539,412 | (64,536) | 17,376,170 | 86 | 86 | ||||||||||||||||||||||||||||
Other fixed maturities: | ||||||||||||||||||||||||||||||||||||||
Government (U.S., municipal, and foreign) | — | — | — | — | 2,339,237 | 254,974 | (12,268) | 2,581,943 | 13 | 13 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 36,810 | 24,491 | — | 61,301 | 36,810 | 24,491 | — | 61,301 | — | — | ||||||||||||||||||||||||||||
Other asset-backed securities | 13,875 | — | (2,299) | 11,576 | 134,273 | 4,459 | (3,623) | 135,109 | 1 | 1 | ||||||||||||||||||||||||||||
Mortgage-backed securities
(1)
|
— | — | — | — | 345 | 42 | — | 387 | — | — | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 801,712 | $ | 78,976 | $ | (26,203) | $ | 854,485 | $ | 17,411,959 | $ | 2,823,378 | $ | (80,427) | $ | 20,154,910 | 100 | 100 |
Below Investment Grade | Total Fixed Maturities | % of Total Fixed Maturities | ||||||||||||||||||||||||||||||||||||
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
At Amortized Cost | At Fair Value | |||||||||||||||||||||||||||||
Corporates: | ||||||||||||||||||||||||||||||||||||||
Financial | ||||||||||||||||||||||||||||||||||||||
Insurance - life, health, P&C | $ | 57,658 | $ | 3,894 | $ | (10,788) | $ | 50,764 | $ | 2,275,843 | $ | 563,349 | $ | (14,769) | $ | 2,824,423 | 13 | 13 | ||||||||||||||||||||
Banks | 27,014 | 15 | (456) | 26,573 | 993,946 | 259,489 | (1,050) | 1,252,385 | 6 | 6 | ||||||||||||||||||||||||||||
Other financial | 114,919 | 271 | (8,245) | 106,945 | 1,134,414 | 193,975 | (8,402) | 1,319,987 | 7 | 6 | ||||||||||||||||||||||||||||
Total financial | 199,591 | 4,180 | (19,489) | 184,282 | 4,404,203 | 1,016,813 | (24,221) | 5,396,795 | 26 | 25 | ||||||||||||||||||||||||||||
Utilities | ||||||||||||||||||||||||||||||||||||||
Electric | 50,663 | 6,289 | — | 56,952 | 1,438,796 | 476,744 | (108) | 1,915,432 | 9 | 9 | ||||||||||||||||||||||||||||
Gas and water | — | — | — | — | 536,664 | 131,851 | — | 668,515 | 3 | 3 | ||||||||||||||||||||||||||||
Total utilities | 50,663 | 6,289 | — | 56,952 | 1,975,460 | 608,595 | (108) | 2,583,947 | 12 | 12 | ||||||||||||||||||||||||||||
Industrial - Energy | ||||||||||||||||||||||||||||||||||||||
Pipelines | 85,327 | 1,624 | (2,309) | 84,642 | 923,756 | 187,851 | (2,423) | 1,109,184 | 5 | 5 | ||||||||||||||||||||||||||||
Exploration and production | 104,719 | 5,980 | (678) | 110,021 | 555,796 | 121,940 | (678) | 677,058 | 3 | 3 | ||||||||||||||||||||||||||||
Oil field services | — | — | — | — | 49,799 | 13,613 | — | 63,412 | — | — | ||||||||||||||||||||||||||||
Refiner | — | — | — | — | 89,371 | 22,793 | — | 112,164 | 1 | 1 | ||||||||||||||||||||||||||||
Driller | 1,902 | — | 18 | 1,920 | 1,902 | — | 18 | 1,920 | — | — | ||||||||||||||||||||||||||||
Total energy | 191,948 | 7,604 | (2,969) | 196,583 | 1,620,624 | 346,197 | (3,083) | 1,963,738 | 9 | 9 | ||||||||||||||||||||||||||||
Industrial - Basic materials | ||||||||||||||||||||||||||||||||||||||
Chemicals | — | — | — | — | 642,258 | 152,016 | — | 794,274 | 4 | 4 | ||||||||||||||||||||||||||||
Metals and mining | — | — | — | — | 406,564 | 144,110 | — | 550,674 | 2 | 3 | ||||||||||||||||||||||||||||
Forestry products and paper | — | — | — | — | 88,804 | 21,588 | — | 110,392 | 1 | 1 | ||||||||||||||||||||||||||||
Total basic materials | — | — | — | — | 1,137,626 | 317,714 | — | 1,455,340 | 7 | 8 | ||||||||||||||||||||||||||||
Industrial - Consumer, non-cyclical | 96,265 | 8,680 | (1,903) | 103,042 | 2,233,324 | 576,007 | (2,070) | 2,807,261 | 13 | 13 | ||||||||||||||||||||||||||||
Other industrials | 25,661 | 3,925 | — | 29,586 | 1,260,646 | 328,986 | (6) | 1,589,626 | 7 | 7 | ||||||||||||||||||||||||||||
Industrial - Transportation | 25,777 | 4,315 | — | 30,092 | 566,935 | 175,405 | — | 742,340 | 3 | 3 | ||||||||||||||||||||||||||||
Other corporate sectors | 179,878 | 17,459 | (3,595) | 193,742 | 1,489,113 | 329,254 | (4,142) | 1,814,225 | 9 | 9 | ||||||||||||||||||||||||||||
Total corporates | 769,783 | 52,452 | (27,956) | 794,279 | 14,687,931 | 3,698,971 | (33,630) | 18,353,272 | 86 | 86 | ||||||||||||||||||||||||||||
Other fixed maturities: | ||||||||||||||||||||||||||||||||||||||
Government (U.S., municipal, and foreign) | — | — | — | — | 2,313,855 | 341,176 | (1,256) | 2,653,775 | 13 | 13 | ||||||||||||||||||||||||||||
Collateralized debt obligations | 57,007 | 23,460 | (8,869) | 71,598 | 57,007 | 23,460 | (8,869) | 71,598 | — | — | ||||||||||||||||||||||||||||
Other asset-backed securities | 13,949 | — | (2,727) | 11,222 | 134,616 | 3,591 | (3,778) | 134,429 | 1 | 1 | ||||||||||||||||||||||||||||
Mortgage-backed securities
(1)
|
— | — | — | — | 390 | 45 | — | 435 | — | — | ||||||||||||||||||||||||||||
Total fixed maturities | $ | 840,739 | $ | 75,912 | $ | (39,552) | $ | 877,099 | $ | 17,193,799 | $ | 4,067,243 | $ | (47,533) | $ | 21,213,509 | 100 | 100 |
Amortized Cost, net | % of Total |
Fair
Value |
% of Total | Average Composite Quality Rating on Amortized Cost, net | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
AAA | $ | 743,505 | 4 | $ | 834,683 | 4 | |||||||||||||||||||||||
AA | 1,745,884 | 10 | 1,868,577 | 9 | |||||||||||||||||||||||||
A | 4,443,827 | 25 | 5,344,601 | 27 | |||||||||||||||||||||||||
BBB+ | 3,752,952 | 22 | 4,426,767 | 22 | |||||||||||||||||||||||||
BBB | 4,287,007 | 25 | 4,953,231 | 25 | |||||||||||||||||||||||||
BBB- | 1,637,072 | 9 | 1,872,566 | 9 | |||||||||||||||||||||||||
Total investment grade
|
16,610,247 | 95 | 19,300,425 | 96 | A- | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
BB | 626,703 | 4 | 647,531 | 3 | |||||||||||||||||||||||||
B | 138,199 | 1 | 145,653 | 1 | |||||||||||||||||||||||||
Below B | 36,810 | — | 61,301 | — | |||||||||||||||||||||||||
Total below investment grade
|
801,712 | 5 | 854,485 | 4 | BB- | ||||||||||||||||||||||||
$ | 17,411,959 | 100 | $ | 20,154,910 | 100 | ||||||||||||||||||||||||
Weighted average composite quality rating
|
A- |
Amortized
Cost
|
% of Total |
Fair
Value
|
% of Total | Average Composite Quality Rating on Amortized Cost | |||||||||||||||||||||||||
Investment grade: | |||||||||||||||||||||||||||||
AAA | $ | 713,053 | 4 | $ | 848,621 | 4 | |||||||||||||||||||||||
AA | 1,657,270 | 10 | 1,873,323 | 9 | |||||||||||||||||||||||||
A | 4,566,999 | 26 | 5,969,677 | 28 | |||||||||||||||||||||||||
BBB+ | 3,634,583 | 21 | 4,612,898 | 22 | |||||||||||||||||||||||||
BBB | 4,137,099 | 24 | 5,088,114 | 24 | |||||||||||||||||||||||||
BBB- | 1,644,056 | 10 | 1,943,777 | 9 | |||||||||||||||||||||||||
Total investment grade
|
16,353,060 | 95 | 20,336,410 | 96 | A- | ||||||||||||||||||||||||
Below investment grade: | |||||||||||||||||||||||||||||
BB | 686,184 | 4 | 692,609 | 3 | |||||||||||||||||||||||||
B | 115,646 | 1 | 122,104 | 1 | |||||||||||||||||||||||||
Below B | 38,909 | — | 62,386 | — | |||||||||||||||||||||||||
Total below investment grade
|
840,739 | 5 | 877,099 | 4 | BB- | ||||||||||||||||||||||||
$ | 17,193,799 | 100 | $ | 21,213,509 | 100 | ||||||||||||||||||||||||
Weighted average composite quality rating
|
A- |
Three Months Ended
March 31, |
|||||||||||
2021 | 2020 | ||||||||||
Balance at beginning of period
|
$ | 840,739 | $ | 674,155 | |||||||
Downgrades by rating agencies | — | 102,488 | |||||||||
Upgrades by rating agencies | — | — | |||||||||
Dispositions | (43,141) | (5,398) | |||||||||
Provision for credit losses | 3,346 | (31,854) | |||||||||
Amortization and other | 768 | 818 | |||||||||
Balance at end of period
|
$ | 801,712 | $ | 740,209 |
Three Months Ended March 31, | Increase | ||||||||||||||||||||||||||||||||||
2021 | 2020 | (Decrease) | |||||||||||||||||||||||||||||||||
Amount |
% of
Premium |
Amount |
% of
Premium |
Amount | % | ||||||||||||||||||||||||||||||
Insurance administrative expenses: | |||||||||||||||||||||||||||||||||||
Salaries | $ | 28,180 | 2.8 | $ | 26,179 | 2.8 | $ | 2,001 | 8 | ||||||||||||||||||||||||||
Other employee costs | 11,447 | 1.2 | 11,261 | 1.2 | 186 | 2 | |||||||||||||||||||||||||||||
Information technology costs | 11,404 | 1.1 | 11,216 | 1.2 | 188 | 2 | |||||||||||||||||||||||||||||
Legal costs | 2,833 | 0.3 | 2,715 | 0.3 | 118 | 4 | |||||||||||||||||||||||||||||
Other administrative costs | 12,312 | 1.2 | 12,249 | 1.3 | 63 | 1 | |||||||||||||||||||||||||||||
Total insurance administrative expenses | 66,176 | 6.6 | 63,620 | 6.8 | 2,556 | 4 | |||||||||||||||||||||||||||||
Parent company expense | 2,318 | 2,331 | (13) | ||||||||||||||||||||||||||||||||
Stock compensation expense | 7,888 | 9,356 | (1,468) | ||||||||||||||||||||||||||||||||
Legal proceedings | 4,828 | 3,275 | 1,553 | ||||||||||||||||||||||||||||||||
$ | 81,210 | $ | 78,582 | $ | 2,628 | 3 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Shares | Amount |
Average
Price |
Shares | Amount |
Average
Price |
||||||||||||||||||||||||||||||
Purchases with: | |||||||||||||||||||||||||||||||||||
Excess cash flow at the Parent Company | 944 | $ | 90,149 | $ | 95.47 | 1,629 | $ | 139,254 | $ | 85.47 | |||||||||||||||||||||||||
Option exercise proceeds | 435 | 42,571 | 97.89 | 267 | 27,475 | 103.13 | |||||||||||||||||||||||||||||
Total | 1,379 | $ | 132,720 | $ | 96.23 | 1,896 | $ | 166,729 | $ | 87.95 |
Three Months Ended
March 31, |
Twelve Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | Projected 2021 | 2020 | ||||||||||||||||||||
Liquidity Sources: | |||||||||||||||||||||||
Dividends from Subsidiaries | $ | 120,728 | $ | 219,709 | $ | 480,000 | $ | 485,871 | |||||||||||||||
Excess Cash Flows | 88,922 | 189,171 | 365,000 | 387,606 |
At | |||||||||||||||||
March 31,
2021 |
December 31, 2020 |
March 31,
2020 |
|||||||||||||||
Balance of commercial paper at end of period (par value) | $ | 275,000 | $ | 255,000 | $ | 450,000 | |||||||||||
Annualized interest rate | 0.23 | % | 0.27 | % | 2.37 | % | |||||||||||
Letters of credit outstanding | $ | 135,000 | $ | 135,000 | $ | 150,000 | |||||||||||
Remaining amount available under credit line | 340,000 | 360,000 | 150,000 |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Average balance of commercial paper outstanding during period (par value) | $ | 300,444 | $ | 363,176 | |||||||
Daily-weighted average interest rate (annualized) | 0.24 | % | 1.96 | % | |||||||
Maximum daily amount outstanding during period (par value) | $ | 355,000 | $ | 470,000 |
Instrument | Issue Date | Maturity Date | Coupon Rate | Interest Payment Dates |
Par
Value |
Book
Value |
Fair
Value |
||||||||||||||||||||||||||||||||||
Senior notes | 05/27/1993 | 05/15/2023 | 7.875% | semiannual | $ | 165,612 | $ | 165,018 | $ | 189,687 | |||||||||||||||||||||||||||||||
Senior notes
(1)
|
09/24/2012 | 09/15/2022 | 3.800% | semiannual | 150,000 | 149,497 | 156,464 | ||||||||||||||||||||||||||||||||||
Senior notes | 09/27/2018 | 09/15/2028 | 4.550% | semiannual | 550,000 | 544,483 | 633,286 | ||||||||||||||||||||||||||||||||||
Senior notes | 08/21/2020 | 08/15/2030 | 2.150% | semiannual | 400,000 | 395,269 | 383,644 | ||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 05/17/2016 | 06/15/2056 | 6.125% | quarterly | 300,000 | 290,670 | 306,000 | ||||||||||||||||||||||||||||||||||
Junior subordinated debentures | 11/17/2017 | 11/17/2057 | 5.275% | semiannual | 125,000 | 123,385 | 130,048 | ||||||||||||||||||||||||||||||||||
Total long-term debt
|
1,690,612 | 1,668,322 | 1,799,129 | ||||||||||||||||||||||||||||||||||||||
Commercial paper | 275,000 | 274,919 | 274,919 | ||||||||||||||||||||||||||||||||||||||
Total short-term debt
|
275,000 | 274,919 | 274,919 | ||||||||||||||||||||||||||||||||||||||
Total debt
|
$ | 1,965,612 | $ | 1,943,241 | $ | 2,074,048 |
At | |||||||||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||||||||
GAAP |
Effect of
Accounting
Rule
Requiring
Revaluation
(1)
|
GAAP |
Effect of
Accounting
Rule
Requiring
Revaluation
(1)
|
GAAP |
Effect of
Accounting
Rule
Requiring
Revaluation
(1)
|
||||||||||||||||||||||||||||||
Fixed maturities | $ | 20,154,910 | $ | 2,742,951 | $ | 21,213,509 | $ | 4,019,710 | $ | 17,879,541 | $ | 1,539,451 | |||||||||||||||||||||||
Deferred acquisition costs
(2)
|
4,662,509 | (5,596) | 4,595,444 | (5,955) | 4,386,478 | (7,095) | |||||||||||||||||||||||||||||
Total assets | 28,112,896 | 2,737,355 | 29,046,731 | 4,013,755 | 25,351,914 | 1,532,356 | |||||||||||||||||||||||||||||
Short-term debt | 274,919 | — | 254,918 | — | 458,127 | — | |||||||||||||||||||||||||||||
Long-term debt | 1,668,322 | — | 1,667,886 | — | 1,346,795 | — | |||||||||||||||||||||||||||||
Shareholders' equity | 7,832,337 | 2,162,510 | 8,771,092 | 3,170,866 | 6,520,282 | 1,210,561 | |||||||||||||||||||||||||||||
Book value per diluted share | 75.10 | 20.74 | 83.19 | 30.07 | 60.98 | 11.32 | |||||||||||||||||||||||||||||
Debt to capitalization
(3)
|
19.9 | % | (5.6) | % | 18.0 | % | (7.6) | % | 21.7 | % | (3.7) | % | |||||||||||||||||||||||
Diluted shares outstanding | 104,292 | 105,429 | 106,926 | ||||||||||||||||||||||||||||||||
Actual shares outstanding | 103,193 | 103,797 | 106,434 |
Period |
(a) Total Number
of Shares
Purchased
|
(b) Average
Price Paid
Per Share
|
(c) Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
(d) Maximum Number
of Shares (or
Approximate Dollar
Amount) that May
Yet Be Purchased
Under the Plans or
Programs
|
||||||||||||||||||||||
January 1-31, 2021 | 315,768 | $ | 94.92 | 315,768 | ||||||||||||||||||||||
February 1-28, 2021 | 426,625 | 94.69 | 426,625 | |||||||||||||||||||||||
March 1-31, 2021 | 636,798 | 97.91 | 636,798 |
Exhibit No. | Description | |||||||
31.1 | ||||||||
31.2 | ||||||||
31.3 | ||||||||
32.1 | ||||||||
101.INS | XBRL Instance Document- the instance document does not appear in the Interactive Data file because the XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
GLOBE LIFE INC. | |||||||||||
Date: May 5, 2021 | /s/ Gary L. Coleman | ||||||||||
Gary L. Coleman | |||||||||||
Co-Chairman and Chief Executive Officer | |||||||||||
Date: May 5, 2021 | /s/ Larry M. Hutchison | ||||||||||
Larry M. Hutchison | |||||||||||
Co-Chairman and Chief Executive Officer | |||||||||||
Date: May 5, 2021 | /s/ Frank M. Svoboda | ||||||||||
Frank M. Svoboda | |||||||||||
Executive Vice President and Chief Financial Officer | |||||||||||
No information found
* THE VALUE IS THE MARKET VALUE AS OF THE LAST DAY OF THE QUARTER FOR WHICH THE 13F WAS FILED.
FUND | NUMBER OF SHARES | VALUE ($) | PUT OR CALL |
---|
DIRECTORS | AGE | BIO | OTHER DIRECTOR MEMBERSHIPS |
---|---|---|---|
Philip M. Jacobs Retired Principal, U.S. Insurance Tax Sector Leader, KPMG US | |||
Matthew J. Adams Retired Senior Partner and U.S. Insurance Practice Leader, PricewaterhouseCoopers LLP | |||
Matthew J. Adams Retired Senior Partner and U.S. Insurance Practice Leader, PricewaterhouseCoopers LLP | |||
Reasons for Nomination Ms. Thigpen provides the Board with expertise in technology, cybersecurity, strategic planning, corporate governance, enterprise and systemic risk management, international business, digital sales and marketing developed as a result of her time as CEO of OpsDataStore and as CEO of North Plains, LLC and through senior leadership positions at Cox Communications, BearingPoint, Arthur Anderson LLP and Hewlett-Packard Company, as well as through her consultancy practice. Select Business Experience • Self-employed consultant providing advisory services in digital transformation strategies, technology and cybersecurity assessments, and systemic risk mitigation competencies (2019--present and 2015–2017) • Chief Executive Officer, OpsDataStore, LLC, Johns Creek, Georgia, a big data analytics, AI, and visualization software company (2017–2019) • Chief Executive Officer, North Plains, LLC, Toronto, Canada (2014–2015) • Self-employed consultant providing advisory services in strategy development, technology assessments, and global go-to-market operational competencies (2011–2013) • Senior Vice President of Strategy, Cox Communications, Atlanta, GA (2004–2011) • Managing Director, BearingPoint, Atlanta, GA (2003–2004) • Partner, Arthur Anderson Business Consulting (1998–2002) • Various global sales, marketing and production innovation positions, Hewlett-Packard Company (1982–1998) Other Public Company Directorships None Former Public Company Directorships (2020–2024) • Member, Board of Directors, Hope Bancorp, Inc. (NASDAQ:HOPE) (2021–2024) • Member, Board of Directors, Opus Bank (NASDAQ:OPB) (2019–2020) Other Notable Professional Affiliations • Member, Board of Directors, Achievelt Online, LLC (2016–present) • Member, Board of Directors, Bank of Hope (an affiliate of Hope Bancorp, Inc.) (2021–2024) Education/Certifications • B.S. in Mathematical and Computer Science, Clemson University | |||
Marketing/advertising experience, including social media and digital marketing, can provide expertise directly relevant to us as a consumer-driven business and can help to ensure that our marketing and branding efforts are properly aligned with our long-term strategic objectives. | |||
Reasons for Nomination Through his 35+ years of experience in insurance, banking and professional services, with senior roles at KPMG, Barclays, AIG and GE, Mr. Jacobs has gained significant relevant expertise in accounting and taxation in the financial services industry (including in the life insurance sector). As a global tax leader, he offers the Board valuable strategic insights into taxation, accounting and risk management issues. His core competencies also include capital markets, mergers and acquisitions, legal/regulatory issues and crisis readiness. Select Business Experience • Principal, U.S. Insurance Tax Sector Leader, KPMG, a Big Four accounting firm (2015–2023) • Global Head of Corporate Development and Tax, XL Catlin, Stamford, CT (2013–2015) • Global Head of Tax, Barclays, New York, NY (2009–2013) • Global Tax Director, Head of Divestitures, AIG, New York, NY (2006–2009) • Senior Tax Advisor, Business Tax Director, GE Capital, Stamford, CT (1993–2006) Other Public Company Directorships None Former Public Company Directorships (2020–2024) None Other Notable Professional Affiliations • Member, Board of Directors, XL Catlin Ireland Subsidiaries: XLIT, Ltd; XL Financial Holdings Ltd; XL Financial Holdings Ltd; and XL Financial Ltd (2014–2015) Education/Certifications • B.A. in History, Princeton University • CPA License (Inactive) | |||
Reasons for Nomination As a global business leader and chief executive with more than four decades of practical experience, Ms. Addison brings a broad array of management skills and operational experience to the Board, including expertise in corporate governance, climate leadership oversight, cybersecurity oversight, strategic planning, enterprise risk management, legal/regulatory/compliance, compensation, mergers and acquisitions, and human capital management. Select Business Experience • Norton Rose Fulbright US LLP (2013–present) ▪ Of Counsel (2017–present) ▪ Managing Partner and Chair, Management Committee (2013–2017) • Global Head of Dispute Resolution, Norton Rose Fulbright (2013–2014) • Partner-in-Charge, New York Office, Fulbright & Jaworski L.L.P. (2009–2013) Other Public Company Directorships None Former Public Company Directorships (2020–2024) • Member, Board of Directors, Good Works II Acquisition Corp. (2021–2022) Other Notable Professional Affiliations • Member, Board of Directors, Lexitas, a leading national provider of technology-enabled litigation support services to law firms and companies (2013–present) • Independent Director, KPMG LLP, a Big Four accounting firm (2018–2023) • Member, Dean's Advisory Council, McCombs School of Business, (2022–present) • Member, Council on Foreign Relations (2014–present) • Senior Member, M.D. Anderson Center, Board of Visitors, an advisory board to M.D. Anderson leadership (2004–present) • Senior Trustee, University of Texas Law School Foundation, an educational foundation supporting The University of Texas School of Law (2004–present) • Chair, University of Texas System Chancellor's Council (2023–2024) • Member, Board of Directors, Catalyst, a global non-profit working to accelerate progress for women through workplace inclusion (2015–2024); Honorary Director (2024–present) Education/Certifications • B.A., University of Texas at Austin • J.D., University of Texas School of Law • Bar Membership: Texas, New York, U.S. Supreme Court • Certification in Climate Leadership Oversight, Diligent Institute • CERT Certificate in Cybersecurity Oversight, Carnegie Mellon University's Software Engineering Institute | |||
Reasons for Nomination With nearly thirty years of relevant knowledge and experience in the insurance and financial services industry, and having held a variety of C-suite positions during his distinguished career, Mr. Brannen brings to the Board demonstrated corporate leadership and extensive expertise in business operations, finance, capital management, strategic planning and executive management. Select Business Experience • FBL Financial Group, Inc., a financial services holding company operating under the consumer brand name Farm Bureau Financial Services, West Des Moines, IA ▪ Chief Executive Officer (2012–2019) ▪ Chief Financial Officer, Chief Administrative Officer and Treasurer (2007–2012) ▪ Vice President - Finance (1999–2006) ▪ Tax Vice President (1991–1999) • Tax Manager, Ernst & Young, LLC (1985–1991) Other Public Company Directorships None Former Public Company Directorships (2020–2024) • Member, Board of Directors, First Interstate BancSystem (NASDAQ: FIBK) (2022–2023) • Member, Board of Directors, Great Western Bancorp, Inc. (NYSE:GWB) (2015–2022) Other Notable Professional Affiliations • Member, Board of Directors, Amerisure Mutual Insurance Company (2020–present) • Member, Board of Directors, FBL Financial Group Inc. (2012–2019) • Member, Board of Directors, Greater Des Moines Partnership (2012–2019) • Member, Board of Directors, Property Casualty Insurers Association of America (2012–2019) • Member, Board of Directors, United Way of Central Iowa (2010–2016) Education/Certifications • B.B.A. in Accounting, University of Iowa • American Institute of Certified Public Accountants • Iowa Society of Certified Public Accountants | |||
Reasons for Nomination Mr. Svoboda has more than 37 years of direct insurance industry experience, including in the areas of tax, accounting, consulting, business combination and capital market transactions. As the Company’s Chief Financial Officer for more than a decade, with overall responsibility for various accounting, financial and executive functions at the Company and its subsidiaries, and through his service as his Company’s Vice President of Tax for nine years prior thereto, as well as the 19 years spent in public accounting at KPMG LLP, he provides the Board with significant financial and operational expertise. Select Business Experience • Globe Life Inc., McKinney, TX ▪ Co-Chairman and Chief Executive Officer (2023–present) ▪ Senior Executive Vice President and Chief Financial Officer (2022) ▪ Executive Vice President and Chief Financial Officer (2012–2022) ▪ President of subsidiaries Globe Life And Accident Insurance Company (2018–2022) and American Income Life Insurance Company (2017–2018) ▪ Vice President and Director of Tax (2014–2018) • Partner, Insurance Tax, KPMG LLP, a Big Four accounting firm (1984–2003) Other Public Company Directorships None Former Public Company Directorships (2020–2024) None Other Notable Professional Affiliations • American Institute of Certified Public Accountants • The Texas Society of Certified Public Accountants Education/Certifications • B.A. in Accounting and Finance, Nebraska Wesleyan University | |||
Reasons for Nomination Mr. Rodriguez brings to the Board extensive experience in human resource management, including organizational culture and inclusion, through a 36-year career at companies including Marriott International, Citicorp/Citibank and Avon Products, and his service on the Board of Woodmark Corporation and the Board of Trustees of the SIOP Foundation. Select Business Experience • Marriott International (2006–2021) ▪ Global Chief Human Resources Officer (2006–2021) ▪ Executive Vice President - Corporate Human Resources and U.S. Hotel Division (2003–2006) ▪ Senior Vice President - Corporate Human Resources (1998–2002) • Citicorp/Citibank - various HR leadership roles culminating with Chief Human Resources Officer, Citibank Credit Cards Division (1989–1998) Other Public Company Directorships • American Woodmark Corporation, one of the three largest cabinetmakers in the U.S. (2020–present) Former Public Company Directorships (2020–2024) None Other Notable Professional Affiliations • Member, Board of Trustees, The Society for Industrial and Organizational Psychology ("SIOP") Foundation Education/Certifications • B.A. in Psychology, New York University • M.A., Ph.D. in Industrial/Organizational Psychology, New York University • Fellow, National Academy of Human Resources • Fellow, Society for Industrial and Organizational Psychology | |||
Reasons for Nomination With a career spanning more than 21 years in the financial services industry, including positions at ERF, Cigna Corporation and Chase Global Securities, Ms. Alston brings to the Board significant experience in the areas of strategic planning, investment management, asset allocation, corporate governance, finance and budget administration. Select Business Experience • Executive Director and Chief Investment Officer of ERF, a $4 billion pension plan for the City’s civilian employees (2004–present) • Appointed by President Barack Obama to the Pension Benefit Guaranty Corporation Advisory Committee (2011–2016) (two terms) • Cigna Corporation, Hartford, CT (1998–2004) ▪ Vice President, Retirement & Investment Services Division, Cigna Retirement and Investment Services (2002–2004) ▪ Assistant Vice President, Retirement & Investment Services Division, Cigna Retirement and Investment Services (1998–2002) Other Public Company Directorships Member, Board of Trustees, Janus Henderson Mutual Fund (NYSE: JHG) (2022–present) Former Public Company Directorships (2020–2024) None Other Notable Professional Affiliations • Member, Board of Directors, Tides Center, a non-profit working to advance social justice (2018–present) • Member, Board of Directors, Blue Cross Blue Shield of Kansas City (2016–present) • Member, Board of Directors, CHRISTUS Health (2012–present) • Member, Board of Directors, Federal Home Loan Bank of Dallas (2017–2021) • Former Member, Board of Directors, Mercy Health, St. Louis, MO Education/Certifications • B.S. in Economics, The Wharton School, University of Pennsylvania • M.B.A., Leonard N. Stern School of Business, New York University • Harvard Business School Executive Education | |||
Reasons for Nomination As a global business leader and chief executive with more than four decades of practical experience, Ms. Addison brings a broad array of management skills and operational experience to the Board, including expertise in corporate governance, climate leadership oversight, cybersecurity oversight, strategic planning, enterprise risk management, legal/regulatory/compliance, compensation, mergers and acquisitions, and human capital management. Select Business Experience • Norton Rose Fulbright US LLP (2013–present) ▪ Of Counsel (2017–present) ▪ Managing Partner and Chair, Management Committee (2013–2017) • Global Head of Dispute Resolution, Norton Rose Fulbright (2013–2014) • Partner-in-Charge, New York Office, Fulbright & Jaworski L.L.P. (2009–2013) Other Public Company Directorships None Former Public Company Directorships (2020–2024) • Member, Board of Directors, Good Works II Acquisition Corp. (2021–2022) Other Notable Professional Affiliations • Member, Board of Directors, Lexitas, a leading national provider of technology-enabled litigation support services to law firms and companies (2013–present) • Independent Director, KPMG LLP, a Big Four accounting firm (2018–2023) • Member, Dean's Advisory Council, McCombs School of Business, (2022–present) • Member, Council on Foreign Relations (2014–present) • Senior Member, M.D. Anderson Center, Board of Visitors, an advisory board to M.D. Anderson leadership (2004–present) • Senior Trustee, University of Texas Law School Foundation, an educational foundation supporting The University of Texas School of Law (2004–present) • Chair, University of Texas System Chancellor's Council (2023–2024) • Member, Board of Directors, Catalyst, a global non-profit working to accelerate progress for women through workplace inclusion (2015–2024); Honorary Director (2024–present) Education/Certifications • B.A., University of Texas at Austin • J.D., University of Texas School of Law • Bar Membership: Texas, New York, U.S. Supreme Court • Certification in Climate Leadership Oversight, Diligent Institute • CERT Certificate in Cybersecurity Oversight, Carnegie Mellon University's Software Engineering Institute |
Name and Principal Position
|
Year |
Salary
($) |
Bonus
($) |
Stock
Awards
1,2,3
($)
|
Option
Awards
4
($)
|
Non-Equity
Incentive Plan Compensation ($) |
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
5
($)
|
All Other
Compensation
6
($)
|
Total
($) |
|||||||||||||||||||||||||||||
Frank M. Svoboda
|
2024 | 900,000 | 0 | 2,978,880 | 2,432,880 | 1,967,580 | 368,244 | 79,714 | 8,727,298 | |||||||||||||||||||||||||||||
Co-Chairman & Chief Executive Officer
|
2023 | 850,000 | 0 | 2,008,568 | 2,015,625 | 1,535,000 | 733,218 | 63,660 | 7,206,071 | |||||||||||||||||||||||||||||
2022 | 650,000 | 0 | 1,135,530 | 1,432,600 | 535,000 | 0 | 32,036 | 3,785,166 | ||||||||||||||||||||||||||||||
J. Matthew Darden
|
2024 | 900,000 | 0 | 2,978,880 | 2,432,880 | 1,967,580 | 138,054 | 41,772 | 8,459,166 | |||||||||||||||||||||||||||||
Co-Chairman & Chief Executive Officer
|
2023 | 850,000 | 0 | 2,008,568 | 2,015,625 | 1,535,000 | 399,676 | 52,027 | 6,860,896 | |||||||||||||||||||||||||||||
2022 | 650,000 | 0 | 1,135,530 | 1,432,600 | 535,000 | 0 | 26,586 | 3,779,716 | ||||||||||||||||||||||||||||||
Thomas P. Kalmbach
|
2024 | 572,000 | 0 | 1,168,440 | 780,549 | 560,000 | 315,588 | 38,744 | 3,435,321 | |||||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer
|
2023 | 520,000 | 0 | 804,873 | 809,475 | 405,000 | 251,152 | 31,747 | 2,822,247 | |||||||||||||||||||||||||||||
Michael C. Majors | 2024 | 515,000 | 0 | 832,032 | 834,613 | 470,000 | 615,160 | 17,111 | 3,283,916 | |||||||||||||||||||||||||||||
Executive Vice President, Policy Acquisitions and Chief Strategy Officer
|
2023 | 495,000 | 0 | 781,980 | 786,900 | 380,000 | 749,141 | 16,199 | 3,209,220 | |||||||||||||||||||||||||||||
2022 | 465,000 | 0 | 722,610 | 815,480 | 234,000 | 0 | 15,090 | 2,252,180 | ||||||||||||||||||||||||||||||
R. Brian Mitchell
|
2024 | 515,000 | 0 | 796,080 | 794,065 | 445,000 | 413,028 | 34,303 | 2,997,476 | |||||||||||||||||||||||||||||
Executive Vice President, General Counsel and Chief Risk Officer
|
2023 | 495,000 | 0 | 773,546 | 774,000 | 300,000 | 585,923 | 30,917 | 2,959,386 | |||||||||||||||||||||||||||||
Robert E. Hensley
|
2024 | 510,000 | 0 | 955,296 | 635,252 | 470,000 | 250,686 | 10,325 | 2,831,559 | |||||||||||||||||||||||||||||
Executive Vice President and Chief Investments Officer
|
2023 | 485,000 | 0 | 837,406 | 561,150 | 360,000 | 195,386 | 13,496 | 2,452,438 |
No Customers Found
Price
Yield
Owner | Position | Direct Shares | Indirect Shares |
---|---|---|---|
COLEMAN GARY L | - | 637,079 | 63,663 |
BUCHAN MELISSA JANE | - | 81,423 | 0 |
BUCHAN JANE | - | 80,285 | 0 |
Darden James Matthew | - | 38,973 | 4,161 |
MAJORS MICHAEL CLAY | - | 35,015 | 0 |
SVOBODA FRANK M | - | 31,298 | 1,940 |
Darden James Matthew | - | 26,070 | 1,474 |
Kalmbach Thomas Peter | - | 24,597 | 974 |
Addison Linda | - | 19,443 | 0 |
Thigpen Mary E | - | 15,605 | 0 |
Zorn Rebecca E | - | 13,649 | 0 |
Haworth Jennifer Allison | - | 13,485 | 1,810 |
Hensley Robert Edward | - | 10,193 | 0 |
Kalmbach Thomas Peter | - | 10,071 | 810 |
Zorn Rebecca E | - | 8,452 | 0 |
DICHIARO STEVEN JOHN | - | 8,372 | 4,238 |
BRANNEN JAMES | - | 7,030 | 0 |
Alston Cheryl | - | 6,238 | 0 |
Skarjune Dolores L | - | 4,956 | 2,213 |
SVOBODA FRANK M | - | 3,370 | 1,893 |
HENRIE MICHAEL SHANE | - | 3,040 | 149 |
MITCHELL ROBERT BRIAN | - | 2,520 | 11,912 |
Cho Alice S | - | 1,352 | 0 |
MITCHELL ROBERT BRIAN | - | 1,320 | 11,247 |
Rodriguez David A | - | 1,205 | 0 |
HENRIE MICHAEL SHANE | - | 700 | 135 |