Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Primerica, Inc. | pri-8k_20150925.htm |
Exhibit 99.1
Recast of Historical Segment
Operating Results and Certain
Supplemental Financial Information
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Table of Contents |
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Recast of Historical Segment Operating Results and Certain Supplemental Financial Information |
3 |
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Term Life Insurance – Financial Results and Analysis |
4 |
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Corporate & Other Distributed Products – Financial Results and Analysis |
5 |
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Operating Income |
6 |
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Reconciliation of Non-GAAP to GAAP Financial Measures |
7 |
Recast of Historical Segment Operating Results and Certain Supplemental Financial Information
This document recasts historical segment operating results and certain supplemental financial information contained within financial supplements to our quarterly earnings releases. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions.
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures in this document. Specifically, the Company presents adjusted direct premiums, other ceded premiums, operating revenues and operating income before income taxes. Adjusted direct premiums and other ceded premiums are net of amounts ceded to affiliates of Citigroup Inc. under coinsurance transactions that were executed concurrent with our initial public offering (“IPO”) for all periods presented. Operating revenues and operating income before income taxes exclude the impact of realized investment gains and losses for all periods presented. Operating income before income taxes also excludes (1) the expense associated with our IPO-related equity awards, (2) the impact of charges recorded in 2013 for the settlement of claims made by certain Florida Retirement System plan participants and (3) the compensation expense recorded in 2014 associated with the CEO transition agreements discussed in our Current Report on Form 8-K dated January 2, 2015. We exclude these items because they are considered unusual or not indicative of our ongoing operations. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
Certain items throughout this document may not add due to rounding and as such, may not agree to other public reporting of the respective item.
Page 3 of 7
Term Life Insurance - Financial Results and Analysis
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(Dollars in thousands) |
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Term Life Insurance Operating Income Before Income Taxes |
FY 2012 |
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FY 2013 |
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FY 2014 |
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Q1 2012 |
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Q2 2012 |
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Q3 2012 |
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Q4 2012 |
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Q1 2013 |
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Q2 2013 |
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Q3 2013 |
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Q4 2013 |
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Q1 2014 |
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Q2 2014 |
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Q3 2014 |
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Q4 2014 |
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Q1 2015 |
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Q2 2015 |
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Revenues: |
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Direct Premiums |
$ |
2,193,280 |
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$ |
2,229,204 |
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$ |
2,266,649 |
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$ |
542,157 |
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$ |
550,329 |
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$ |
549,069 |
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$ |
551,725 |
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$ |
552,034 |
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$ |
559,035 |
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$ |
557,486 |
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$ |
560,649 |
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$ |
559,663 |
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$ |
567,849 |
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$ |
568,592 |
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$ |
570,545 |
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$ |
569,164 |
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$ |
579,873 |
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Premiums ceded to Citi |
|
(1,473,314 |
) |
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(1,418,299 |
) |
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(1,366,697 |
) |
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(372,420 |
) |
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(371,184 |
) |
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(365,906 |
) |
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(363,804 |
) |
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(358,625 |
) |
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(357,613 |
) |
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(351,983 |
) |
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(350,077 |
) |
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(344,883 |
) |
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(344,143 |
) |
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(340,170 |
) |
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(337,501 |
) |
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(331,733 |
) |
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(331,984 |
) |
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Adjusted direct premiums |
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719,966 |
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810,905 |
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899,952 |
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169,737 |
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179,145 |
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183,163 |
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187,921 |
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193,409 |
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201,422 |
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205,503 |
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210,572 |
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214,780 |
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223,706 |
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228,422 |
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233,044 |
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237,430 |
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247,889 |
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Other ceded premiums |
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(176,308 |
) |
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(213,743 |
) |
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(239,268 |
) |
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(42,139 |
) |
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(40,854 |
) |
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(45,334 |
) |
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(47,981 |
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(49,229 |
) |
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(56,608 |
) |
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(52,476 |
) |
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(55,430 |
) |
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(55,450 |
) |
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(63,424 |
) |
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(59,417 |
) |
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(60,978 |
) |
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(63,389 |
) |
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(72,227 |
) |
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Net premiums |
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543,658 |
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597,162 |
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660,684 |
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127,598 |
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138,292 |
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137,829 |
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139,939 |
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144,180 |
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144,813 |
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153,027 |
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155,142 |
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159,330 |
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160,282 |
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169,005 |
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172,067 |
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174,042 |
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175,662 |
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Allocated net investment income |
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2,483 |
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3,029 |
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4,446 |
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|
677 |
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580 |
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|
586 |
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|
641 |
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|
688 |
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|
713 |
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|
764 |
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|
864 |
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1,000 |
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1,033 |
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1,142 |
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1,270 |
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1,405 |
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1,436 |
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Other, net |
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30,357 |
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29,017 |
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28,838 |
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7,547 |
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7,753 |
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7,788 |
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7,268 |
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6,984 |
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7,436 |
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7,399 |
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7,199 |
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6,937 |
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7,245 |
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7,337 |
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7,318 |
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7,042 |
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7,641 |
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Operating revenues |
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576,498 |
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629,208 |
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693,968 |
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135,822 |
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146,625 |
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146,203 |
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147,848 |
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151,851 |
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152,962 |
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161,190 |
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163,204 |
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167,267 |
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168,561 |
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177,485 |
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180,655 |
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182,489 |
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184,738 |
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Benefits and expenses: |
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Benefits and claims |
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239,346 |
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262,357 |
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295,332 |
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57,509 |
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59,984 |
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60,733 |
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61,120 |
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65,547 |
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61,689 |
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67,788 |
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67,334 |
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71,263 |
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68,287 |
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77,722 |
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78,059 |
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77,990 |
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78,268 |
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Amortization of DAC |
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104,272 |
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115,891 |
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133,331 |
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23,933 |
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22,547 |
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27,645 |
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30,147 |
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27,865 |
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25,777 |
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29,679 |
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32,570 |
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32,721 |
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29,778 |
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34,171 |
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36,661 |
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35,017 |
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32,797 |
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Insurance commissions |
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9,599 |
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4,600 |
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4,003 |
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3,577 |
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2,314 |
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2,168 |
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1,539 |
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1,199 |
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1,062 |
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901 |
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1,437 |
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1,315 |
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929 |
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1,070 |
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|
690 |
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|
601 |
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1,382 |
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Insurance expenses |
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85,156 |
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98,081 |
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109,198 |
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19,717 |
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21,782 |
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20,532 |
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23,125 |
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23,846 |
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24,508 |
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25,125 |
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24,603 |
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26,413 |
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26,293 |
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30,514 |
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25,978 |
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32,804 |
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27,603 |
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Interest expense |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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— |
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Operating benefits and expenses |
|
438,373 |
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|
480,928 |
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541,865 |
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|
104,736 |
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|
106,628 |
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|
111,078 |
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|
115,931 |
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|
118,456 |
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|
113,035 |
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|
123,493 |
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|
125,944 |
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|
131,713 |
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|
125,287 |
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|
143,477 |
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|
141,388 |
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|
146,413 |
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|
140,049 |
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Operating income before income taxes |
$ |
138,126 |
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$ |
148,280 |
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$ |
152,103 |
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$ |
31,087 |
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$ |
39,997 |
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$ |
35,125 |
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$ |
31,918 |
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$ |
33,395 |
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$ |
39,927 |
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$ |
37,698 |
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$ |
37,260 |
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$ |
35,555 |
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$ |
43,274 |
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$ |
34,008 |
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$ |
39,267 |
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$ |
36,076 |
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$ |
44,689 |
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Total Term Life Insurance - Financial Analysis |
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Primary direct premiums |
$ |
361,596 |
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$ |
465,730 |
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$ |
567,380 |
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$ |
79,146 |
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$ |
88,860 |
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$ |
94,133 |
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$ |
99,458 |
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$ |
106,077 |
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$ |
114,407 |
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$ |
119,852 |
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$ |
125,394 |
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$ |
130,855 |
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$ |
139,973 |
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$ |
145,636 |
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$ |
150,916 |
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$ |
156,714 |
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$ |
167,118 |
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Legacy direct premiums |
|
1,831,684 |
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1,763,473 |
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1,699,269 |
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|
463,011 |
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461,470 |
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|
454,936 |
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|
452,267 |
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|
445,957 |
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444,628 |
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|
437,634 |
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|
435,255 |
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428,809 |
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427,876 |
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|
422,956 |
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|
419,629 |
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|
412,449 |
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|
412,754 |
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Total direct premiums |
$ |
2,193,280 |
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$ |
2,229,204 |
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$ |
2,266,649 |
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$ |
542,157 |
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$ |
550,329 |
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$ |
549,069 |
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$ |
551,725 |
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$ |
552,034 |
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$ |
559,035 |
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$ |
557,486 |
|
$ |
560,649 |
|
$ |
559,663 |
|
$ |
567,849 |
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$ |
568,592 |
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$ |
570,545 |
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$ |
569,164 |
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$ |
579,873 |
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Premiums ceded to Citi |
$ |
1,473,314 |
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$ |
1,418,299 |
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$ |
1,366,697 |
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$ |
372,420 |
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$ |
371,184 |
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$ |
365,906 |
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$ |
363,804 |
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$ |
358,625 |
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$ |
357,613 |
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$ |
351,983 |
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$ |
350,077 |
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$ |
344,883 |
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$ |
344,143 |
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$ |
340,170 |
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$ |
337,501 |
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$ |
331,733 |
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$ |
331,984 |
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% of Legacy direct premiums |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
|
80.4 |
% |
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Benefits and claims, net |
$ |
415,654 |
|
$ |
476,100 |
|
$ |
534,600 |
|
$ |
99,648 |
|
$ |
100,838 |
|
$ |
106,067 |
|
$ |
109,101 |
|
$ |
114,776 |
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$ |
118,297 |
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$ |
120,263 |
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$ |
122,764 |
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$ |
126,713 |
|
$ |
131,711 |
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$ |
137,139 |
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$ |
139,037 |
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$ |
141,379 |
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$ |
150,494 |
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% of adjusted direct premiums |
|
57.7 |
% |
|
58.7 |
% |
|
59.4 |
% |
|
58.7 |
% |
|
56.3 |
% |
|
57.9 |
% |
|
58.1 |
% |
|
59.3 |
% |
|
58.7 |
% |
|
58.5 |
% |
|
58.3 |
% |
|
59.0 |
% |
|
58.9 |
% |
|
60.0 |
% |
|
59.7 |
% |
|
59.5 |
% |
|
60.7 |
% |
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DAC amortization & insurance commissions |
$ |
113,871 |
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$ |
120,490 |
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$ |
137,335 |
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$ |
27,510 |
|
$ |
24,861 |
|
$ |
29,813 |
|
$ |
31,686 |
|
$ |
29,064 |
|
$ |
26,839 |
|
$ |
30,580 |
|
$ |
34,007 |
|
$ |
34,036 |
|
$ |
30,707 |
|
$ |
35,241 |
|
$ |
37,351 |
|
$ |
35,619 |
|
$ |
34,179 |
|
|
% of adjusted direct premiums |
|
15.8 |
% |
|
14.9 |
% |
|
15.3 |
% |
|
16.2 |
% |
|
13.9 |
% |
|
16.3 |
% |
|
16.9 |
% |
|
15.0 |
% |
|
13.3 |
% |
|
14.9 |
% |
|
16.1 |
% |
|
15.8 |
% |
|
13.7 |
% |
|
15.4 |
% |
|
16.0 |
% |
|
15.0 |
% |
|
13.8 |
% |
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Insurance expenses, net |
$ |
54,798 |
|
$ |
69,063 |
|
$ |
80,361 |
|
$ |
12,169 |
|
$ |
14,029 |
|
$ |
12,743 |
|
$ |
15,857 |
|
$ |
16,862 |
|
$ |
17,072 |
|
$ |
17,726 |
|
$ |
17,404 |
|
$ |
19,476 |
|
$ |
19,047 |
|
$ |
23,177 |
|
$ |
18,660 |
|
$ |
25,762 |
|
$ |
19,962 |
|
|
% of adjusted direct premiums |
|
7.6 |
% |
|
8.5 |
% |
|
8.9 |
% |
|
7.2 |
% |
|
7.8 |
% |
|
7.0 |
% |
|
8.4 |
% |
|
8.7 |
% |
|
8.5 |
% |
|
8.6 |
% |
|
8.3 |
% |
|
9.1 |
% |
|
8.5 |
% |
|
10.1 |
% |
|
8.0 |
% |
|
10.9 |
% |
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total term life operating income before income taxes |
$ |
138,126 |
|
$ |
148,280 |
|
$ |
152,103 |
|
$ |
31,087 |
|
$ |
39,997 |
|
$ |
35,125 |
|
$ |
31,918 |
|
$ |
33,395 |
|
$ |
39,927 |
|
$ |
37,698 |
|
$ |
37,260 |
|
$ |
35,555 |
|
$ |
43,274 |
|
$ |
34,008 |
|
$ |
39,267 |
|
$ |
36,076 |
|
$ |
44,689 |
|
|
% of adjusted direct premiums |
|
19.2 |
% |
|
18.3 |
% |
|
16.9 |
% |
|
18.3 |
% |
|
22.3 |
% |
|
19.2 |
% |
|
17.0 |
% |
|
17.3 |
% |
|
19.8 |
% |
|
18.3 |
% |
|
17.7 |
% |
|
16.6 |
% |
|
19.3 |
% |
|
14.9 |
% |
|
16.8 |
% |
|
15.2 |
% |
|
18.0 |
% |
Recast due to change in segment measurement
Page 4 of 7
Corporate & Other Distributed Products – Financial Results and Analysis
|
(Dollars in thousands) |
FY 2012 |
|
FY 2013 |
|
FY 2014 |
|
Q1 2012 |
|
Q2 2012 |
|
Q3 2012 |
|
Q4 2012 |
|
Q1 2013 |
|
Q2 2013 |
|
Q3 2013 |
|
Q4 2013 |
|
Q1 2014 |
|
Q2 2014 |
|
Q3 2014 |
|
Q4 2014 |
|
Q1 2015 |
|
Q2 2015 |
|
|||||||||||||||||
|
Corporate & Other Distributed Products |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct premiums |
$ |
37,751 |
|
$ |
35,987 |
|
$ |
34,683 |
|
$ |
9,713 |
|
$ |
10,275 |
|
$ |
9,061 |
|
$ |
8,703 |
|
$ |
8,870 |
|
$ |
9,356 |
|
$ |
9,561 |
|
$ |
8,200 |
|
$ |
8,542 |
|
$ |
8,892 |
|
$ |
8,890 |
|
$ |
8,360 |
|
$ |
8,295 |
|
$ |
8,376 |
|
|
Ceded premiums |
|
(14,130 |
) |
|
(12,117 |
) |
|
(10,852 |
) |
|
(3,604 |
) |
|
(3,777 |
) |
|
(3,752 |
) |
|
(2,998 |
) |
|
(2,750 |
) |
|
(3,229 |
) |
|
(3,030 |
) |
|
(3,109 |
) |
|
(2,381 |
) |
|
(2,980 |
) |
|
(2,611 |
) |
|
(2,880 |
) |
|
(2,419 |
) |
|
(2,644 |
) |
|
Net premiums |
|
23,620 |
|
|
23,870 |
|
|
23,831 |
|
|
6,108 |
|
|
6,499 |
|
|
5,309 |
|
|
5,705 |
|
|
6,120 |
|
|
6,127 |
|
|
6,531 |
|
|
5,091 |
|
|
6,160 |
|
|
5,912 |
|
|
6,279 |
|
|
5,480 |
|
|
5,876 |
|
|
5,732 |
|
|
Allocated net investment income |
|
98,321 |
|
|
85,723 |
|
|
82,027 |
|
|
25,419 |
|
|
23,025 |
|
|
26,296 |
|
|
23,580 |
|
|
22,528 |
|
|
20,314 |
|
|
21,338 |
|
|
21,543 |
|
|
20,598 |
|
|
20,648 |
|
|
19,323 |
|
|
21,458 |
|
|
19,768 |
|
|
17,640 |
|
|
Commissions and fees: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
2,378 |
|
|
1,220 |
|
|
447 |
|
|
913 |
|
|
627 |
|
|
438 |
|
|
400 |
|
|
293 |
|
|
406 |
|
|
264 |
|
|
256 |
|
|
200 |
|
|
101 |
|
|
78 |
|
|
69 |
|
|
42 |
|
|
43 |
|
|
DebtWatchers |
|
2,522 |
|
|
1,846 |
|
|
1,398 |
|
|
717 |
|
|
648 |
|
|
609 |
|
|
548 |
|
|
491 |
|
|
462 |
|
|
482 |
|
|
411 |
|
|
385 |
|
|
360 |
|
|
337 |
|
|
316 |
|
|
307 |
|
|
311 |
|
|
Prepaid Legal Services |
|
9,236 |
|
|
9,321 |
|
|
10,336 |
|
|
2,289 |
|
|
2,266 |
|
|
2,364 |
|
|
2,318 |
|
|
2,254 |
|
|
2,255 |
|
|
2,396 |
|
|
2,415 |
|
|
2,339 |
|
|
2,285 |
|
|
2,487 |
|
|
3,225 |
|
|
2,468 |
|
|
2,494 |
|
|
Auto and Homeowners Insurance |
|
6,588 |
|
|
7,028 |
|
|
7,354 |
|
|
1,689 |
|
|
1,836 |
|
|
1,271 |
|
|
1,791 |
|
|
1,685 |
|
|
1,890 |
|
|
1,470 |
|
|
1,982 |
|
|
1,719 |
|
|
1,998 |
|
|
1,606 |
|
|
2,032 |
|
|
1,770 |
|
|
2,096 |
|
|
Long-Term Care Insurance |
|
2,905 |
|
|
2,562 |
|
|
2,206 |
|
|
729 |
|
|
653 |
|
|
756 |
|
|
767 |
|
|
628 |
|
|
664 |
|
|
705 |
|
|
565 |
|
|
521 |
|
|
570 |
|
|
565 |
|
|
550 |
|
|
534 |
|
|
583 |
|
|
Other sales commissions |
|
915 |
|
|
1,369 |
|
|
1,392 |
|
|
6 |
|
|
219 |
|
|
325 |
|
|
364 |
|
|
323 |
|
|
316 |
|
|
341 |
|
|
389 |
|
|
337 |
|
|
399 |
|
|
467 |
|
|
188 |
|
|
391 |
|
|
412 |
|
|
Other, net |
|
5,442 |
|
|
5,040 |
|
|
5,259 |
|
|
1,475 |
|
|
1,373 |
|
|
1,337 |
|
|
1,257 |
|
|
1,270 |
|
|
1,263 |
|
|
1,374 |
|
|
1,133 |
|
|
1,269 |
|
|
1,318 |
|
|
1,569 |
|
|
1,103 |
|
|
1,136 |
|
|
1,140 |
|
|
Operating revenues |
|
151,927 |
|
|
137,978 |
|
|
134,250 |
|
|
39,346 |
|
|
37,145 |
|
|
38,705 |
|
|
36,731 |
|
|
35,592 |
|
|
33,699 |
|
|
34,902 |
|
|
33,786 |
|
|
33,527 |
|
|
33,591 |
|
|
32,710 |
|
|
34,422 |
|
|
32,291 |
|
|
30,451 |
|
|
Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and claims |
|
14,701 |
|
|
17,574 |
|
|
16,085 |
|
|
4,511 |
|
|
2,435 |
|
|
3,619 |
|
|
4,137 |
|
|
3,269 |
|
|
2,634 |
|
|
8,760 |
|
|
2,912 |
|
|
3,928 |
|
|
4,125 |
|
|
3,513 |
|
|
4,519 |
|
|
4,510 |
|
|
4,253 |
|
|
Amortization of DAC |
|
3,371 |
|
|
2,097 |
|
|
2,313 |
|
|
(625 |
) |
|
2,778 |
|
|
178 |
|
|
1,040 |
|
|
496 |
|
|
459 |
|
|
(29 |
) |
|
1,171 |
|
|
137 |
|
|
747 |
|
|
289 |
|
|
1,141 |
|
|
(5 |
) |
|
685 |
|
|
Insurance commissions |
|
3,055 |
|
|
2,883 |
|
|
2,550 |
|
|
1,040 |
|
|
566 |
|
|
874 |
|
|
574 |
|
|
750 |
|
|
738 |
|
|
783 |
|
|
612 |
|
|
681 |
|
|
715 |
|
|
686 |
|
|
468 |
|
|
617 |
|
|
581 |
|
|
Insurance expenses |
|
5,738 |
|
|
7,376 |
|
|
6,254 |
|
|
1,417 |
|
|
1,300 |
|
|
2,179 |
|
|
843 |
|
|
1,667 |
|
|
2,006 |
|
|
1,451 |
|
|
2,252 |
|
|
2,088 |
|
|
1,900 |
|
|
981 |
|
|
1,285 |
|
|
1,837 |
|
|
1,491 |
|
|
Sales commissions |
|
13,164 |
|
|
12,439 |
|
|
11,593 |
|
|
3,371 |
|
|
3,159 |
|
|
3,292 |
|
|
3,342 |
|
|
3,007 |
|
|
3,129 |
|
|
3,316 |
|
|
2,986 |
|
|
2,833 |
|
|
2,803 |
|
|
2,929 |
|
|
3,029 |
|
|
2,764 |
|
|
2,845 |
|
|
Interest expense |
|
33,101 |
|
|
35,018 |
|
|
34,570 |
|
|
6,910 |
|
|
8,505 |
|
|
8,829 |
|
|
8,857 |
|
|
8,795 |
|
|
8,792 |
|
|
8,726 |
|
|
8,704 |
|
|
8,606 |
|
|
8,552 |
|
|
8,712 |
|
|
8,700 |
|
|
8,676 |
|
|
8,642 |
|
|
Other operating expenses |
|
70,884 |
|
|
72,075 |
|
|
78,792 |
|
|
18,489 |
|
|
17,189 |
|
|
17,092 |
|
|
18,113 |
|
|
17,492 |
|
|
19,698 |
|
|
17,911 |
|
|
16,975 |
|
|
18,266 |
|
|
19,161 |
|
|
22,211 |
|
|
19,154 |
|
|
19,486 |
|
|
18,161 |
|
|
Operating benefits and expenses |
|
144,014 |
|
|
149,463 |
|
|
152,159 |
|
|
35,113 |
|
|
35,933 |
|
|
36,063 |
|
|
36,905 |
|
|
35,476 |
|
|
37,456 |
|
|
40,919 |
|
|
35,611 |
|
|
36,540 |
|
|
38,002 |
|
|
39,321 |
|
|
38,295 |
|
|
37,886 |
|
|
36,657 |
|
|
Operating income before income taxes |
$ |
7,913 |
|
$ |
(11,485 |
) |
$ |
(17,909 |
) |
$ |
4,233 |
|
$ |
1,213 |
|
$ |
2,642 |
|
$ |
(174 |
) |
$ |
116 |
|
$ |
(3,758 |
) |
$ |
(6,017 |
) |
$ |
(1,826 |
) |
$ |
(3,013 |
) |
$ |
(4,412 |
) |
$ |
(6,611 |
) |
$ |
(3,874 |
) |
$ |
(5,595 |
) |
$ |
(6,207 |
) |
Recast due to change in segment measurement
Page 5 of 7
Operating Income
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income Before Income Taxes |
FY 2012 |
|
FY 2013 |
|
FY 2014 |
|
Q1 2012 |
|
Q2 2012 |
|
Q3 2012 |
|
Q4 2012 |
|
Q1 2013 |
|
Q2 2013 |
|
Q3 2013 |
|
Q4 2013 |
|
Q1 2014 |
|
Q2 2014 |
|
Q3 2014 |
|
Q4 2014 |
|
Q1 2015 |
|
Q2 2015 |
|
|||||||||||||||||
|
Term life insurance segment |
$ |
138,126 |
|
$ |
148,280 |
|
$ |
152,103 |
|
$ |
31,087 |
|
$ |
39,997 |
|
$ |
35,125 |
|
$ |
31,918 |
|
$ |
33,395 |
|
$ |
39,927 |
|
$ |
37,698 |
|
$ |
37,260 |
|
$ |
35,555 |
|
$ |
43,274 |
|
$ |
34,008 |
|
$ |
39,267 |
|
$ |
36,076 |
|
$ |
44,689 |
|
|
Investment and savings products segment |
|
121,116 |
|
|
120,888 |
|
|
146,017 |
|
|
28,869 |
|
|
29,445 |
|
|
31,608 |
|
|
31,194 |
|
|
26,353 |
|
|
27,675 |
|
|
31,498 |
|
|
35,361 |
|
|
34,028 |
|
|
36,047 |
|
|
36,904 |
|
|
39,039 |
|
|
35,044 |
|
|
37,746 |
|
|
Corporate and other distributed products segment |
|
7,913 |
|
|
(11,485 |
) |
|
(17,909 |
) |
|
4,233 |
|
|
1,213 |
|
|
2,642 |
|
|
(174 |
) |
|
116 |
|
|
(3,758 |
) |
|
(6,017 |
) |
|
(1,826 |
) |
|
(3,013 |
) |
|
(4,412 |
) |
|
(6,611 |
) |
|
(3,874 |
) |
|
(5,595 |
) |
|
(6,207 |
) |
|
Total consolidated operating income before income taxes |
$ |
267,155 |
|
$ |
257,683 |
|
$ |
280,211 |
|
$ |
64,189 |
|
$ |
70,654 |
|
$ |
69,374 |
|
$ |
62,937 |
|
$ |
59,864 |
|
$ |
63,844 |
|
$ |
63,179 |
|
$ |
70,795 |
|
$ |
66,569 |
|
$ |
74,909 |
|
$ |
64,301 |
|
$ |
74,432 |
|
$ |
65,525 |
|
$ |
76,228 |
|
Recast due to change in segment measurement
Page 6 of 7
Reconciliation of Non-GAAP to GAAP Financial Measures
|
(Dollars in thousands) |
FY 2012 |
|
FY 2013 |
|
FY 2014 |
|
Q1 2012 |
|
Q2 2012 |
|
Q3 2012 |
|
Q4 2012 |
|
Q1 2013 |
|
Q2 2013 |
|
Q3 2013 |
|
Q4 2013 |
|
Q1 2014 |
|
Q2 2014 |
|
Q3 2014 |
|
Q4 2014 |
|
Q1 2015 |
|
Q2 2015 |
|
|||||||||||||||||
|
Reconciliation from Term Life Adjusted Direct Premiums to Term Life Direct Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Life adjusted direct premiums |
$ |
719,966 |
|
$ |
810,905 |
|
$ |
899,952 |
|
$ |
169,737 |
|
$ |
179,145 |
|
$ |
183,163 |
|
$ |
187,921 |
|
$ |
193,409 |
|
$ |
201,422 |
|
$ |
205,503 |
|
$ |
210,572 |
|
$ |
214,780 |
|
$ |
223,706 |
|
$ |
228,422 |
|
$ |
233,044 |
|
$ |
237,430 |
|
$ |
247,889 |
|
|
Premiums ceded to Citi |
|
1,473,314 |
|
|
1,418,299 |
|
|
1,366,697 |
|
|
372,420 |
|
|
371,184 |
|
|
365,906 |
|
|
363,804 |
|
|
358,625 |
|
|
357,613 |
|
|
351,983 |
|
|
350,077 |
|
|
344,883 |
|
|
344,143 |
|
|
340,170 |
|
|
337,501 |
|
|
331,733 |
|
|
331,984 |
|
|
Term Life direct premiums |
$ |
2,193,280 |
|
$ |
2,229,204 |
|
$ |
2,266,649 |
|
$ |
542,157 |
|
$ |
550,329 |
|
$ |
549,069 |
|
$ |
551,725 |
|
$ |
552,034 |
|
$ |
559,035 |
|
$ |
557,486 |
|
$ |
560,649 |
|
$ |
559,663 |
|
$ |
567,849 |
|
$ |
568,592 |
|
$ |
570,545 |
|
$ |
569,164 |
|
$ |
579,873 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Term Life Other Ceded Premiums to Term Life Ceded Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term Life other ceded premiums |
$ |
(176,308 |
) |
$ |
(213,743 |
) |
$ |
(239,268 |
) |
$ |
(42,139 |
) |
$ |
(40,854 |
) |
$ |
(45,334 |
) |
$ |
(47,981 |
) |
$ |
(49,229 |
) |
$ |
(56,608 |
) |
$ |
(52,476 |
) |
$ |
(55,430 |
) |
$ |
(55,450 |
) |
$ |
(63,424 |
) |
$ |
(59,417 |
) |
$ |
(60,978 |
) |
$ |
(63,389 |
) |
$ |
(72,227 |
) |
|
Premiums ceded to Citi |
|
(1,473,314 |
) |
|
(1,418,299 |
) |
|
(1,366,697 |
) |
|
(372,420 |
) |
|
(371,184 |
) |
|
(365,906 |
) |
|
(363,804 |
) |
|
(358,625 |
) |
|
(357,613 |
) |
|
(351,983 |
) |
|
(350,077 |
) |
|
(344,883 |
) |
|
(344,143 |
) |
|
(340,170 |
) |
|
(337,501 |
) |
|
(331,733 |
) |
|
(331,984 |
) |
|
Term Life ceded premiums |
$ |
(1,649,622 |
) |
$ |
(1,632,041 |
) |
$ |
(1,605,965 |
) |
$ |
(414,559 |
) |
$ |
(412,038 |
) |
$ |
(411,240 |
) |
$ |
(411,786 |
) |
$ |
(407,854 |
) |
$ |
(414,222 |
) |
$ |
(404,459 |
) |
$ |
(405,506 |
) |
$ |
(400,334 |
) |
$ |
(407,566 |
) |
$ |
(399,587 |
) |
$ |
(398,478 |
) |
$ |
(395,122 |
) |
$ |
(404,211 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Consolidated Operating Revenues to Consolidated Total Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
$ |
1,142,390 |
|
$ |
1,224,324 |
|
$ |
1,340,290 |
|
$ |
275,302 |
|
$ |
286,737 |
|
$ |
286,071 |
|
$ |
294,280 |
|
$ |
296,164 |
|
$ |
300,022 |
|
$ |
310,815 |
|
$ |
317,323 |
|
$ |
324,065 |
|
$ |
330,299 |
|
$ |
339,468 |
|
$ |
346,459 |
|
$ |
343,854 |
|
$ |
350,270 |
|
|
Realized investment gains/(losses) |
|
11,382 |
|
|
6,246 |
|
|
(261 |
) |
|
2,132 |
|
|
4,320 |
|
|
3,872 |
|
|
1,058 |
|
|
2,286 |
|
|
3,468 |
|
|
(407 |
) |
|
899 |
|
|
263 |
|
|
831 |
|
|
(281 |
) |
|
(1,074 |
) |
|
1,284 |
|
|
597 |
|
|
Total revenues |
$ |
1,153,772 |
|
$ |
1,230,570 |
|
$ |
1,340,030 |
|
$ |
277,434 |
|
$ |
291,057 |
|
$ |
289,944 |
|
$ |
295,337 |
|
$ |
298,450 |
|
$ |
303,490 |
|
$ |
310,408 |
|
$ |
318,222 |
|
$ |
324,328 |
|
$ |
331,130 |
|
$ |
339,187 |
|
$ |
345,385 |
|
$ |
345,139 |
|
$ |
350,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation from Consolidated Operating Income Before Income Taxes to Consolidated Income from Continued Operations Before Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before income taxes |
$ |
267,155 |
|
$ |
257,683 |
|
$ |
280,211 |
|
$ |
64,189 |
|
$ |
70,654 |
|
$ |
69,374 |
|
$ |
62,937 |
|
$ |
59,864 |
|
$ |
63,844 |
|
$ |
63,179 |
|
$ |
70,795 |
|
$ |
66,569 |
|
$ |
74,909 |
|
$ |
64,301 |
|
$ |
74,432 |
|
$ |
65,525 |
|
$ |
76,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before income taxes reconciling items: |
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized investment gains/(losses) |
|
11,382 |
|
|
6,246 |
|
|
(261 |
) |
|
2,132 |
|
|
4,320 |
|
|
3,872 |
|
|
1,058 |
|
|
2,286 |
|
|
3,468 |
|
|
(407 |
) |
|
899 |
|
|
263 |
|
|
831 |
|
|
(281 |
) |
|
(1,074 |
) |
|
1,284 |
|
|
597 |
|
|
Co-CEOs transition expenses |
|
— |
|
|
— |
|
|
(4,228 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(4,228 |
) |
|
— |
|
|
— |
|
|
FRS legal settlements |
|
— |
|
|
(15,738 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(188 |
) |
|
— |
|
|
(15,551 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
IPO equity award grants |
|
(12,415 |
) |
|
(3,184 |
) |
|
— |
|
|
(3,068 |
) |
|
(3,184 |
) |
|
(3,096 |
) |
|
(3,067 |
) |
|
(3,010 |
) |
|
(174 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Total operating income before income taxes reconciling items |
|
(1,033 |
) |
|
(12,677 |
) |
|
(4,489 |
) |
|
(936 |
) |
|
1,136 |
|
|
776 |
|
|
(2,009 |
) |
|
(724 |
) |
|
3,106 |
|
|
(407 |
) |
|
(14,652 |
) |
|
263 |
|
|
831 |
|
|
(281 |
) |
|
(5,302 |
) |
|
1,284 |
|
|
597 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continued operations before income taxes |
$ |
266,121 |
|
$ |
245,006 |
|
$ |
275,723 |
|
$ |
63,253 |
|
$ |
71,790 |
|
$ |
70,150 |
|
$ |
60,928 |
|
$ |
59,140 |
|
$ |
66,950 |
|
$ |
62,772 |
|
$ |
56,143 |
|
$ |
66,832 |
|
$ |
75,740 |
|
$ |
64,020 |
|
$ |
69,130 |
|
$ |
66,809 |
|
$ |
76,825 |
|
Page 7 of 7