CUNA Mutual Holding Company and Subsidiaries Interim Financial Results, Unaudited As of March 31, 2016 and December 31, 2015 and For the three months

Transcription

1 CUNA Mutual Holding Company and Subsidiaries Interim Financial Results, Unaudited As of March 31, 2016 and December 31, 2015 and For the three months ended March 31, 2016 and 2015

2 Consolidated Balance Sheets, unaudited March 31, 2016 and December 31, 2015 Cash and investments March 31, December 31, Assets Debt securities, available for sale, at fair value $ 10,036,757 $ 9,696,441 Equity securities, available for sale, at fair value 73,361 70,599 Mortgage loans, less vauation allowance 1,743,910 1,717,149 Real estate, at cost, net 33,476 40,126 Policy loans 103, ,551 Equity in unconsolidated affiliates 19,337 16,953 Limited partnerships 800, ,850 Short-term investments 16,678 14,745 Student loans, at fair value 15,066 15,137 Other invested assets 168, ,980 Total investments 13,010,759 12,605,531 Cash and cash equivalents 324, ,600 Total cash and investments 13,334,832 12,806,131 Accrued investment income 115, ,144 Premiums receivable, net 289, ,123 Reinsurance recoverables 124, ,326 Deferred policy acquisition costs 459, ,542 Office properties, equipment and computer software at cost, net 171, ,937 Net deferred tax asset - 13,487 Goodwill, net 34,832 34,832 Intangible assets, net 3,793 4,070 Other assets and receivables 199, ,451 Assets of discontinued operations 4,278 3,578 Separate account assets 3,027,088 3,074,357 Total assets $ 17,763,593 $ 17,269,978 2

3 Consolidated Balance Sheets, unaudited - continued March 31, 2016 and December 31, 2015 Liabilities March 31, December 31, Liabilities and Policyholders' Surplus Policyholder account balances $ 5,862,793 $ 5,672,889 Claim and policy benefit reserves - life and health 3,637,325 3,570,753 Loss and loss adjustment expense reserves - property and casualty 404, ,043 Unearned premiums 468, ,792 Notes and interest payable 513, ,793 Dividends payable to policyholders 12,419 12,443 Reinsurance payable 74,776 78,150 Net deferred tax liability 66,373 - Net federal income taxes payable 29,462 18,574 Accrued pension and postretirement benefit liability 177, ,376 Accounts payable and other liabilities 557, ,451 Liabilities of discontinued operations 21,098 23,296 Separate account liabilities 3,027,088 3,074,357 Total liabilities 14,852,225 14,551,917 Policyholders' surplus Retained earnings 2,781,911 2,736,368 Accumulated other comprehensive income (loss), net 129,457 (18,307) Total policyholders' surplus 2,911,368 2,718,061 Total liabilities and policyholders' surplus $ 17,763,593 $ 17,269,978 3

4 Consolidated Statements of Comprehensive Income, unaudited Three Months Ended March 31, 2016 and 2015 March 31, March 31, Revenues Life and health premiums, net $ 347,732 $ 339,459 Contract charges 17,562 19,434 Property and casualty premiums, net 191, ,882 Net investment income 116, ,229 Net realized investment (losses) (9,669) (11,924) Commission and fee income 75,732 73,937 Other income 29,817 5,986 Total revenues 769, ,003 Benefits and expenses Life and health insurance claims and benefits, net 233, ,027 Property and casualty insurance loss and loss adjustment expenses, net 117, ,672 Interest credited to policyholder account balances 33,929 31,319 Policyholder dividends 6,241 6,680 Operating and other expenses 313, ,664 Total benefits and expenses 703, ,362 Income from continuing operations before income taxes and equity of unconsolidated affiliates 65,485 41,641 Income tax expense 19,522 11,785 Income from continuing operations before equity of unconsolidated affiliates 45,963 29,856 Equity in (loss) of unconsoldiated affiliates, net of tax (420) - Income from continuing operations 45,543 29,856 Gain from discontinued operations, net of tax - 19,666 Net income 45,543 49,522 Foreign currency translation adjustment, net of tax (1,131) (1,302) Change in unrealized gains, net of tax 146,334 76,254 Change in pension liability, net of tax 2,561 2,457 Change in discontinued operations, net of tax - 4 Other comprehensive income 147,764 77,413 Total comprehensive income $ 193,307 $ 126,935 4

5 Consolidated Statement of Policyholders Surplus, unaudited Three Months Ended March 31, 2016 Accumulated other Total Retained comprehensive policyholders' earnings income (loss) surplus Balance, December 31, 2015 $ 2,736,368 $ (18,307) $ 2,718,061 Net income 45,543-45,543 Other comprehensive income - 147, ,764 Balance, March 31, 2016 $ 2,781,911 $ 129,457 $ 2,911,368 5

6 Consolidated Statements of Cash Flows, unaudited Three Months Ended March 31, 2016 and 2015 March 31, March 31, Cash flows from continuing operating activities Income from continuing operations $ 45,543 $ 29,856 Adjustments to reconcile income from continuing operations to net cash provided by continuing operating activities: Undistributed losses of limited partnerships 34,958 25,285 Net realized investment losses 9,669 11,924 Undistributed losses of unconsolidated subsidiaries Amortization of deferred policy acquisition costs 63,843 77,187 Policy acquisition costs deferred (74,792) (88,219) Depreciation of office properties, equipment, software and real estate 7,930 8,023 Amortization of intangible assets Amortization of bond premium and discount (1,503) (3,497) Deferred income taxes - (940) Policyholder charges on investment-type contracts (5,879) (6,006) Interest credited to policyholder account balances 33,929 31,319 Changes in other assets and liabilities Accrued investment income (3,831) (3,339) Premiums receivable (9,081) (7,950) Reinsurance recoverables (901) (545) Net federal income taxes 10,876 20,860 Other assets and receivables (27,408) (5,707) Insurance reserves 59,295 56,131 Unearned premiums 20,338 2,657 Reinsurance payable (3,364) 876 Accounts payable and other liabilities (20,480) (3,977) Net cash provided by continuing operating activities 139, ,228 6

7 Consolidated Statements of Cash Flows, unaudited - continued Three Months Ended March 31, 2016 and 2015 March 31, March 31, Cash flows from investing activities Purchases of investments Debt securities $ (371,691) $ (347,225) Equity securities (3,933) (20) Mortgage loans (78,730) (69,645) Real estate (698) (851) Short-term investments (3,202) (7) Limited parnerships (49,995) (42,159) Other invested assets (117,625) (91,079) Proceeds on sale or maturity of investments Debt securities 278, ,946 Equity securities 2,548 - Mortgage loans 51,818 34,175 Real estate 7,102 - Short-term investments 1,290 - Limited parnerships 20,651 18,686 Other invested assets 112,318 96,241 Purchases of office properties, equipment, and computer software, net (9,775) (12,515) Proceeds from sales of subsidiaries - 104,466 Investment in unconsolidated affiliate (3,000) - Change in policy loans Net cash used in investing activities (164,298) (144,182) Cash flows from financing activities Policyholder account deposits 410, ,160 Policyholder account withdrawals (253,729) (275,201) Notes payable - borrowings 125, ,000 Notes payable - repayments (131,369) (143,179) Change in bank overdrafts 4,213 7,120 Capital lease payments (3,422) (2,696) Net cash provided by (used in) financing activities 150,936 (5,796) Change in cash and cash equivalents 126,477 (5,750) Cash flows from discontinued operations (2,898) (27,100) Effect of foreign exchange rate on cash (106) (2,127) Cash and cash equivalents at beginning of year 200, ,447 Cash and cash equivalents at end of period $ 324,073 $ 241,470 7