EXHIBIT 99.2
ITEM 6. SELECTED FINANCIAL DATA.
The selected financial data should be read in conjunction with the section entitled “Management's Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated and combined financial statements and accompanying notes included elsewhere in this report.
The selected historical income statement data may not be indicative of the revenues and expenses that would have existed or resulted if we had operated independently of Citi. Similarly, the selected historical balance sheet data as of and prior to December 31, 2009 may not be indicative of the assets and liabilities that would have existed or resulted if we had operated independently of Citi. The selected historical financial data are not necessarily indicative of the financial position or results of operations as of any future date or for any future period.
Our corporate reorganization has resulted and will continue to result in financial performance that is materially different from that reflected in the historical financial data that appear elsewhere in this report. Due to the timing of our corporate reorganization and its impact on our financial position and results of operations, year-over-year comparisons of our financial position and results of operations will reflect significant non-comparable accounting transactions and account balances. See “Management's Discussion and Analysis of Financial Condition and Results of Operations – The Transactions.”
Year ended December 31, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 (2) | 2007 | |||||||||||||||
(In thousands, except per-share amounts) | |||||||||||||||||||
Statements of income data | |||||||||||||||||||
Revenues: | |||||||||||||||||||
Direct premiums | $ | 2,229,467 | $ | 2,181,074 | $ | 2,112,781 | $ | 2,092,792 | $ | 2,003,595 | |||||||||
Ceded premiums | (1,703,075 | ) | (1,450,367 | ) | (610,754 | ) | (629,074 | ) | (535,833 | ) | |||||||||
Net premiums | 526,392 | 730,707 | 1,502,027 | 1,463,718 | 1,467,762 | ||||||||||||||
Commissions and fees | 412,979 | 382,940 | 335,986 | 466,484 | 545,584 | ||||||||||||||
Net investment income | 108,601 | 165,111 | 351,326 | 314,035 | 328,609 | ||||||||||||||
Realized investment gains (losses), including other-than-temporary impairment losses | 6,440 | 34,145 | (21,970 | ) | (103,480 | ) | 6,527 | ||||||||||||
Other, net | 48,681 | 48,960 | 53,032 | 56,187 | 41,856 | ||||||||||||||
Total revenues | 1,103,093 | 1,361,863 | 2,220,401 | 2,196,944 | 2,390,338 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||||
Benefits and claims | 242,696 | 317,703 | 600,273 | 938,370 | 557,422 | ||||||||||||||
Amortization of deferred policy acquisition costs | 104,034 | 147,841 | 352,257 | 127,922 | 295,437 | ||||||||||||||
Sales commissions | 191,722 | 180,054 | 162,756 | 248,020 | 296,521 | ||||||||||||||
Insurance expenses | 89,192 | 105,132 | 179,592 | 173,341 | 163,888 | ||||||||||||||
Insurance commissions | 38,618 | 48,182 | 50,750 | 33,081 | 35,643 | ||||||||||||||
Interest expense | 27,968 | 20,872 | — | — | — | ||||||||||||||
Goodwill impairment | — | — | — | 194,992 | — | ||||||||||||||
Other operating expenses | 164,954 | 180,610 | 132,978 | 152,773 | 136,634 | ||||||||||||||
Total benefits and expenses | 859,184 | 1,000,394 | 1,478,606 | 1,868,499 | 1,485,545 | ||||||||||||||
Income before income taxes | 243,909 | 361,469 | 741,795 | 328,445 | 904,793 | ||||||||||||||
Income taxes | 86,718 | 129,013 | 259,114 | 177,051 | 317,436 | ||||||||||||||
Net income | $ | 157,191 | $ | 232,456 | $ | 482,681 | $ | 151,394 | $ | 587,357 | |||||||||
Earnings per share - basic | $ | 2.11 | $ | 3.09 | (1) | n/a | n/a | n/a | |||||||||||
Earnings per share - diluted | $ | 2.08 | $ | 3.06 | (1) | n/a | n/a | n/a | |||||||||||
Dividends per common share | $ | 0.10 | $ | 0.02 | n/a | n/a | n/a |
EX 99.2-1
December 31, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 (2) | 2007 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Balance sheet data | |||||||||||||||||||
Investments | $ | 2,021,504 | $ | 2,153,584 | $ | 6,471,448 | $ | 5,355,458 | $ | 5,494,495 | |||||||||
Cash and cash equivalents | 136,078 | 126,038 | 602,522 | 302,354 | 625,350 | ||||||||||||||
Due from reinsurers | 3,855,318 | 3,731,002 | 851,635 | 825,791 | 822,750 | ||||||||||||||
Deferred policy acquisition costs, net | 904,485 | 738,946 | 2,520,251 | 2,478,565 | 2,282,434 | ||||||||||||||
Total assets | 9,851,820 | 9,769,409 | 13,429,883 | 11,253,055 | 12,778,607 | ||||||||||||||
Future policy benefits | 4,614,860 | 4,409,183 | 4,197,454 | 4,023,009 | 3,650,192 | ||||||||||||||
Note payable | 300,000 | 300,000 | — | — | — | ||||||||||||||
Total liabilities | 8,525,170 | 8,412,881 | 8,662,612 | 7,303,772 | 8,147,447 | ||||||||||||||
Stockholders' equity | 1,326,650 | 1,356,528 | 4,767,271 | 3,949,283 | 4,631,160 |
____________________
(1) | Calculated on a pro forma basis using weighted-average shares, including the shares issued or issuable upon lapse of restrictions following our April 1, 2010 corporate reorganization as though they had been issued and outstanding on January 1, 2010. |
(2) | Includes a $207.5 million pre-tax charge due to a change in our DAC and reserve estimation approach implemented as of December 31, 2008. |
EX 99.2-2