| Schedule of Financial Performance of Reportable Segments |
The following schedule provides the financial performance of each of the three reportable operating segments of the Company. | | | | | | | | | | | | | | | | | | | | | | | | | | | Individual | | Group | | Old | | Intercompany | | | | | | | Insurance | | Insurance | | American | | Eliminations1 | | Consolidated | | Insurance revenues: | | | | | | | | | | | | | Second quarter: | 2014 | | $ | 39,100 |
| | $ | 14,379 |
| | $ | 18,791 |
| | $ | (102 | ) | | $ | 72,168 |
| | | 2013 | | 42,805 |
| 2 | 13,025 |
| | 18,230 |
| | (99 | ) | | 73,961 |
| 2 | Six months: | 2014 | | 76,991 |
| | 28,627 |
| | 37,338 |
| | (203 | ) | | 142,753 |
| | | 2013 | | 91,052 |
| 2 | 25,551 |
| | 36,319 |
| | (197 | ) | | 152,725 |
| 2 | | | | | | | | | | | | | | Net investment income: | | | | | | | | | | | | | Second quarter: | 2014 | | $ | 38,410 |
| | $ | 135 |
| | $ | 2,806 |
| | $ | — |
| | $ | 41,351 |
| | | 2013 | | 39,801 |
| | 118 |
| | 2,959 |
| | — |
| | 42,878 |
| | Six months: | 2014 | | 76,056 |
| | 260 |
| | 5,726 |
| | — |
| | 82,042 |
| | | 2013 | | 79,170 |
| | 249 |
| | 5,869 |
| | — |
| | 85,288 |
| | | | | | | | | | | | | | | Total benefits and expenses: | | | | | | | | | | | | | Second quarter: | 2014 | | $ | 69,621 |
| | $ | 14,415 |
| | $ | 20,121 |
| | $ | (102 | ) | | $ | 104,055 |
| | | 2013 | | 72,742 |
| 2 | 12,629 |
| | 19,586 |
| | (99 | ) | | 104,858 |
| 2 | Six months: | 2014 | | 140,327 |
| | 29,025 |
| | 42,054 |
| | (203 | ) | | 211,203 |
| | | 2013 | | 155,758 |
| 2 | 25,024 |
| | 40,453 |
| | (197 | ) | | 221,038 |
| 2 | | | | | | | | | | | | | | Net income (loss): | | | | | | | | | | | | | Second quarter: | 2014 | | $ | 7,394 |
| | $ | 97 |
| | $ | 966 |
| | $ | — |
| | $ | 8,457 |
| | | 2013 | | 9,465 |
| | 358 |
| | 1,028 |
| | — |
| | 10,851 |
| | Six months: | 2014 | | 13,153 |
| | (23 | ) | | 829 |
| | — |
| | 13,959 |
| | | 2013 | | 14,394 |
| | 550 |
| | 1,095 |
| | — |
| | 16,039 |
| |
| | 1 | Elimination entries to remove intercompany transactions for life and accident and health insurance that the Company purchases for its employees and agents were as follows: insurance revenues from the Group Insurance segment and operating expenses from the Individual Insurance segment to arrive at Consolidated Statements of Comprehensive Income. |
| | 2 | During the third quarter of 2013, the Company identified an immaterial correction of an error in the presentation of net premiums and policyholder benefits that resulted from the incorrect recognition of premiums related to the conversion of fixed deferred annuity contracts to immediate annuities with life contingencies. The impact of the correction was an equal and offsetting increase to both premiums and policyholder benefits. The error resulted in no impact to net income, earnings per share, stockholders' equity, or cash flows. Related to the immaterial correction, the Company understated the presentation of net premiums and policyholder benefits by $15.7 million in the first quarter and $8.4 million in the second quarter of 2013. The numbers reported above have been corrected to reflect these adjustments. |
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