GREAT WEST LIFE & ANNUITY INSURANCE CO

CIK:0000744455|SEC Filings

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues:
Premium income	$ 130,953	$ 145,504	$ 353,790	$ 365,408
Fee income	290,790	264,304	853,450	786,758
Other revenue	3,078	3,322	9,140	9,367
Net investment income	322,425	300,582	988,037	911,274
Investment gains (losses), net	4,409	13,861	922	24,171
Total revenues	751,655	727,573	2,205,339	2,096,978
Benefits and expenses:
Life and other policy benefits	180,698	161,017	534,856	498,300
(Decrease) increase in future policy benefits	(13,058)	12,704	(112,448)	(51,148)
Interest credited or paid to contractholders	166,903	160,040	492,583	471,531
Provision for policyholders’ share of losses on participating business	(539)	(1,033)	(1,396)	(1,097)
Dividends to policyholders	8,990	11,513	28,669	35,627
Total benefits	342,994	344,241	942,264	953,213
General insurance expenses	298,669	293,176	905,347	884,670
Amortization of DAC and VOBA	14,241	14,076	56,490	39,798
Interest expense	7,082	7,811	24,479	23,087
Total benefits and expenses	662,986	659,304	1,928,580	1,900,768
Income before income taxes	88,669	68,269	276,759	196,210
Income tax expense	17,287	21,688	58,091	64,973
Net income	$ 71,382	$ 46,581	$ 218,668	$ 131,237

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities:
Net cash provided by operating activities	$ 316,452	$ 699,942
Proceeds from sales, maturities and redemptions of investments:
Fixed maturities, available-for-sale	2,892,673	3,920,591
Mortgage loans on real estate	288,150	322,326
Limited partnership interests and other investments	5,827	8,439
Purchases of investments:
Fixed maturities, available-for-sale	(2,786,257)	(4,313,849)
Mortgage loans on real estate	(650,495)	(689,122)
Limited partnership interests and other investments	(27,656)	(17,697)
Net change in short-term investments	(39,274)	(517,840)
Net change in policy loans	(1,057)	(9,677)
Purchases of furniture, equipment, and software	(39,541)	(30,867)
Net cash used in investing activities	(357,630)	(1,327,696)
Cash flows from financing activities:
Contract deposits	2,064,895	2,251,508
Contract withdrawals	(1,888,977)	(1,565,225)
Proceeds from surplus note issued to parent	346,218	0
Redemption of surplus note issued to parent	(333,400)	0
Dividends paid	(129,895)	(145,301)
Capital contribution	2,514	76,429
Payments for and interest paid on financing element derivatives, net	(724)	(3,290)
Net change in commercial paper borrowings	(194)	819
Net change in book overdrafts	(24,647)	15,659
Employee taxes paid for withheld shares	(41)	(671)
Net cash provided by financing activities	35,749	629,928
Net (decrease) increase in cash and cash equivalents	(5,429)	2,174
Cash and cash equivalents, beginning of year	17,211	18,321
Cash and cash equivalents, end of period	11,782	20,495
Net cash paid during the year for:
Income taxes	(17,070)	(17,449)
Interest	(16,728)	(16,447)
Non-cash investing and financing transactions during the years:
Share-based compensation expense	648	1,156
Fair value of assets acquired in settlement of fixed maturity investments	$ 28,315	$ 9,323

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Investments:
Fixed maturities, available-for-sale, at fair value (amortized cost $22,696,473 and $22,762,962)	$ 22,550,302	$ 23,593,139
Fixed maturities, held-for-trading, at fair value (amortized cost $142,981 and $20,512)	141,943	21,059
Mortgage loans on real estate (net of allowances of $773 and $773)	4,365,189	4,005,187
Policy loans	4,103,408	4,104,094
Short-term investments (amortized cost $415,189 and $350,266)	415,189	350,266
Limited partnership interests	71,895	45,540
Other investments	54,614	17,997
Total investments	31,702,540	32,137,282
Other assets:
Cash and cash equivalents	11,782	17,211
Reinsurance recoverable	581,026	589,080
Deferred acquisition costs (“DAC”) and value of business acquired (“VOBA”)	712,453	518,510
Investment income due and accrued	324,698	299,362
Deferred income tax assets, net	2,715	0
Collateral under securities lending agreements	66,784	0
Due from parent and affiliates	108,501	114,133
Goodwill	137,683	137,683
Other intangible assets	15,068	17,085
Other assets	1,033,650	954,250
Assets of discontinued operations	14,286	16,095
Separate account assets	26,142,156	27,660,571
Total assets	60,853,342	62,461,262
Policy benefit liabilities:
Future policy benefits	30,393,726	30,048,927
Policy and contract claims	380,903	389,029
Policyholders’ funds	239,576	280,578
Provision for policyholders’ dividends	40,061	41,972
Undistributed earnings on participating business	9,586	14,636
Total policy benefit liabilities	31,063,852	30,775,142
General liabilities:
Due to parent and affiliates	569,370	553,901
Commercial paper	99,692	99,886
Payable under securities lending agreements	66,784	0
Deferred income tax liabilities, net	0	93,203
Other liabilities	906,039	812,875
Liabilities of discontinued operations	14,286	16,095
Separate account liabilities	26,142,156	27,660,571
Total liabilities	58,862,179	60,011,673
Commitments and contingencies (See Note 14)
Stockholder’s equity:
Preferred stock, $1 par value, 50,000,000 shares authorized; none issued and outstanding	0	0
Common stock, $1 par value, 50,000,000 shares authorized; 7,320,176 shares issued and outstanding	7,320	7,320
Additional paid-in capital	952,682	949,520
Accumulated other comprehensive (loss) income	(142,356)	440,957
Retained earnings	1,173,517	1,051,792
Total stockholder’s equity	1,991,163	2,449,589
Total liabilities and stockholder’s equity	$ 60,853,342	$ 62,461,262