10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO

Commission File Number 001-38945

VERICITY, INC.

(Exact name of Registrant as specified in its Charter)

Delaware	46-2348863
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1350 E Touhy Avenue, Suite 205W, Des Plaines, Illinois	60018
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (312) 288-0073

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name on each exchange on which registered
Common Stock, Par Value $0.001 per share	VERY	NASDAQ Capital Market

Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☒

The number of shares of Registrant’s Common Stock outstanding as of May 1, 2024 was 14,875,000.

Table of Contents

			Page
PART I –	Financial Information		1
Item 1.	Financial Statements (Unaudited) (at March 31, 2024 and December 31, 2023 and for the three months ended March 31, 2024 and 2023		1
	Interim Condensed Consolidated Balance Sheets		1
	Interim Condensed Consolidated Statements of Operations		2
	Interim Condensed Consolidated Statements of Comprehensive (Loss) Income		3
	Interim Condensed Consolidated Statements of Changes in Shareholders' Equity		4
	Interim Condensed Consolidated Statements of Cash Flows		5
	Notes to the Interim Condensed Consolidated Financial Statements		6
		Note 1 – Summary of Significant Accounting Policies	6
		Note 2 – Investments	7
		Note 3 – Policy Liabilities	13
		Note 4 – Reinsurance	14
		Note 5 – Closed Block	14
		Note 6 – Commitments and Contingencies	16
		Note 7 – Assets and Liabilities Measured at Fair Value	17
		Note 8 – Long and Short-term Debt	21
		Note 9– Accumulated Other Comprehensive (Loss) Income	21
		Note 10 – Business Segments	22
		Note 11 – Subsequent Events	23
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		24
Item 4.	Controls and Procedures		34
PART II –	Other Information		35
Item 1.	Legal Proceedings		35
Item 1A.	Risk Factors		35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		35
Item 3.	Default upon Senior Securities		35
Item 4.	Mine Safety Disclosures		35
Item 5.	Other Information		35
Item 6.	Exhibits		37
Signature			38

Part 1. Financial Information

Item I. Financial Statements

Vericity, Inc.

Interim Condensed Consolidated Balance Sheets

(dollars in thousands)

	March 31,			December 31,
	2024			2023
	(Unaudited)			(Audited)
Assets
Investments:
Fixed maturities – available-for-sale – at fair value (amortized cost; $326,313    and $336,142, net of allowances for credit losses of $28 and $28)	$	301,524		$	313,382
Short-term investments - at fair value (amortized cost, $793 and $0)		830			—
Mortgage loans (net of allowances for credit losses of $566 and $573)		39,603			40,534
Policyholder loans		7,216			7,149
Other invested assets		2,603			2,364
Total investments		351,776			363,429
Cash, cash equivalents and restricted cash		13,740			8,044
Accrued investment income		3,727			3,630
Reinsurance recoverables (net of allowances for credit losses of $167 and $167)		240,224			238,598
Deferred policy acquisition costs		89,186			88,076
Commissions and agent balances (net of allowances for credit losses of $328 and $336)		58,291			53,494
Intangible assets		1,635			1,635
Deferred income tax assets, net		33,396			32,396
Other assets		35,359			33,516
Total assets		827,334			822,818
Liabilities and Shareholders' Equity
Liabilities
Future policy benefits and claims		512,494			502,464
Policyholder account balances		69,414			70,726
Other policyholder liabilities		40,580			41,450
Policy dividend obligations		9,783			9,636
Reinsurance liabilities and payables		12,032			6,262
Long-term debt		38,283			39,761
Short-term debt		12,976			9,249
Other liabilities		28,564			33,057
Total liabilities		724,126			712,605
Commitments and Contingencies (Note 6)
Shareholders' Equity
Common stock, $.001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding		15			15
Additional paid-in capital		39,840			39,840
Retained earnings		86,054			91,580
Accumulated other comprehensive (loss) income		(22,701	)		(21,222	)
Total shareholders' equity		103,208			110,213
Total liabilities and shareholders' equity	$	827,334		$	822,818

See notes to interim condensed consolidated financial statements

1

Vericity, Inc.

Interim Condensed Consolidated Statements of Operations

(dollars in thousands, except earnings per share)

	Three Months Ended March 31,
	2024			2023
	(Unaudited)			(Unaudited)
Revenues
Net insurance premiums	$	22,557		$	24,338
Net investment income		4,135			4,347
Net (losses) gains on investments		(380	)		(539	)
Earned commissions		16,798			14,749
Insurance lead sales		1,404			1,222
Other income		979			505
Total revenues		45,493			44,622
Benefits and expenses
Life, annuity, and health claim benefits		17,875			16,371
Interest credited to policyholder account balances		613			689
Operating costs and expenses		29,468			25,769
Amortization of deferred policy acquisition costs		3,749			3,648
Total benefits and expenses		51,705			46,477
Income (loss) before income tax		(6,212	)		(1,855	)
Income tax expense (benefit)		(686	)		26
Net (loss) income	$	(5,526	)	$	(1,881	)
Earnings per share for the periods
	Three Months Ended March 31,
	2024			2023
	(Unaudited)			(Unaudited)
Weighted average shares outstanding, basic and diluted		14,875,000			14,875,000
Basic earnings per share	$	(0.37	)	$	(0.13	)
Diluted earnings per share	$	(0.37	)	$	(0.13	)

See notes to interim condensed consolidated financial statements

2

Vericity, Inc.

Interim Condensed Consolidated Statements of Comprehensive (Loss) Income

(dollars in thousands)

	Three Months Ended March 31,
	2024			2023
	(Unaudited)
Net (loss) income	$	(5,526	)	$	(1,881	)
Other comprehensive (loss) income, net of tax:
Change in net unrealized (losses) gains		(1,479	)		6,313
Total other comprehensive (loss) income		(1,479	)		6,313
Total comprehensive (loss) income	$	(7,005	)	$	4,432

See notes to interim condensed consolidated financial statements

3

Vericity, Inc.

Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity

(dollars in thousands)

	Three Months Ended March 31,
	2024			2023
	(Unaudited)
Common stock
Balance – beginning of period	$	15		$	15
Balance – end of period	$	15		$	15
Additional paid-in capital
Balance – beginning of period	$	39,840		$	39,840
Balance – end of period	$	39,840		$	39,840
Retained earnings
Balance – beginning of period	$	91,580		$	101,660
Cumulative effect adjustment from changes in accounting guidance, net of tax		—			(187	)
Balance after adjustments - beginning of period	$	91,580		$	101,473
Net (loss) income		(5,526	)		(1,881	)
Balance – end of period	$	86,054		$	99,592
Accumulated other comprehensive income (loss)
Balance – beginning of period	$	(21,222	)	$	(30,172	)
Other comprehensive (loss) income		(1,479	)		6,313
Balance – end of period	$	(22,701	)	$	(23,859	)
Total shareholders' equity	$	103,208		$	115,588

See notes to interim condensed consolidated financial statements

4

Vericity, Inc.

Interim Condensed Consolidated Statements of Cash Flows

(dollars in thousands)

	Three Months Ended March 31,
	2024			2023
	(Unaudited)
Cash flows from operating activities
Net (loss) income	$	(5,526	)	$	(1,881	)
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Depreciation and amortization and other non-cash items		1,661			1,221
Interest credited to policyholder account balances		613			689
Deferred income tax		(686	)		(999	)
Net investment losses (gains)		380			539
Interest expense		719			492
Change in:
Accrued investment income		(97	)		(326	)
Reinsurance recoverables, net		(1,626	)		(9,651	)
Deferred policy acquisition costs		(1,110	)		1,515
Commissions and agent balances		(4,797	)		(8,734	)
Other assets		(4,625	)		(2,134	)
Insurance liabilities		9,464			9,283
Other liabilities		4,180			4,632
Net cash (used) provided by operating activities		(1,450	)		(5,354	)
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturities		21,951			22,384
Mortgage loans		938			1,709
Purchases of:
Fixed maturities		(12,664	)		(20,273	)
Short-term investments		(792	)		—
Mortgage loans		—			(144	)
Other invested assets		(127	)		(164	)
Change in policyholder loans, net		(67	)		(154	)
Other, net		(1,745	)		(1,120	)
Net cash provided (used) by investing activities		7,494			2,238
Cash flows from financing activities
Debt issued		4,945			12,876
Debt repaid		(3,415	)		(10,883	)
Deposits to policyholder account balances		141			210
Withdrawals from policyholder account balances		(2,019	)		(3,568	)
Net cash (used) provided by financing activities		(348	)		(1,365	)
Net increase (decrease) in cash, cash equivalents and restricted cash		5,696			(4,481	)
Cash, cash equivalents and restricted cash – beginning of period		8,044			9,776
Cash, cash equivalents and restricted cash – end of period	$	13,740		$	5,295
Supplemental cash flow information
Non-cash transactions:	$	—		$	—

See notes to interim condensed consolidated financial statements

5

Vericity, Inc.

Notes to Interim Condensed Consolidated Financial Statements

(dollars in thousands)

Note 1 – Summary of Significant Accounting Policies

Description of Business

Vericity, Inc. (the Company) is a Delaware corporation organized to be the stock holding company for Members Holding Company (Members) and its subsidiaries. On August 7, 2019, the Company completed the initial public offering of 14,875,000 shares of its common stock at a price of $10.00 per share (the IPO). The IPO was conducted in connection with the conversion of Members Mutual Holding Company from mutual to stock form and the acquisition by the Company of all of the capital stock of Members following its conversion to stock form after its plan of conversion and amended and restated articles of incorporation were approved at a special meeting of eligible members on August 6, 2019 (the Conversion). As a result of the Conversion, the Company became the holding company for converted Members Mutual Holding Company and its indirect subsidiaries, including Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial).

On October 3, 2023, the Company, announced that it entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, iA American Holdings Inc. (“iA” or “Parent”), Long Grove Acquisition Corp., a wholly owned subsidiary of Parent (“Merger Sub”), and, solely for purposes of Section 6.03 and Article IX thereof, iA Financial Corporation, Inc. (“Guarantor”).

On the terms and subject to the conditions of the Merger Agreement, at the closing, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving entity, which will become a wholly-owned subsidiary of Parent. The time that the Merger becomes effective is referred to as the “Effective Time.” The Merger was unanimously approved by the Company’s board of directors.

Following execution of the Merger Agreement, Apex Holdco L.P. (the “Consenting Stockholder” or “Apex”) executed and delivered to the Company a written consent (the “Stockholder Written Consent”), adopting the Merger Agreement and the transactions contemplated thereby, including the Merger.

As a result of the execution and delivery of the Stockholder Written Consent, the holders of at least a majority of the outstanding shares of Common Stock have adopted the Merger Agreement. No further approval of the stockholders of the Company is required to adopt the Merger Agreement.

As a result of the Merger, each share of Common Stock outstanding immediately prior to the Effective Time (subject to certain exceptions, including shares of Common Stock owned by stockholders of the Company who have not voted in favor of the adoption of the Merger Agreement and have properly exercised appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will, at the Effective Time, automatically be converted into the right to receive $11.43 in cash, without interest and subject to applicable withholding taxes (the “Merger Consideration”). The aggregate equity value of the Common Stock acquired by Parent will be approximately $170 million.

If the Merger is consummated, the Company’s Common Stock will be delisted from The Nasdaq Capital Market and deregistered under the Securities Exchange Act of 1934, as amended. The completion of the Merger is subject to satisfaction or waiver of certain closing conditions, including: (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), and receipt of certain regulatory approvals; (ii) there being no law or injunction prohibiting consummation of the Merger; (iii) subject to specified materiality standards, the accuracy of the representations and warranties of the other party; and (iv) compliance by the other party in all material respects with its covenants. Parent’s and Merger Sub’s obligations are also conditioned upon the absence of a material adverse effect on the Company and the absence of any burdensome condition (as defined in the Merger Agreement) imposed by any regulators as part of the regulatory approval process.

On October 3, 2023, the Company issued a Form 8-K and press release announcing the execution of the Merger Agreement and the Form 8-K is incorporated into this filing by reference. The Merger is expected to close in Q2, 2024.

The Company operates as a holding company and currently has no other business operations. Fidelity Life is an Illinois‑domiciled life insurance company that was founded in 1896. Fidelity Life markets life insurance products through independent and affiliated distributors and is licensed in the District of Columbia and all states, except New York and Wyoming. Efinancial markets life and other products for non‑affiliated insurance companies and sells life products for Fidelity Life.

The accompanying interim condensed consolidated financial statements present the accounts of the Company and subsidiaries for the three months ended March 31, 2024 and March 31, 2023 and at March 31, 2024 and December 31, 2023. These interim condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report in the Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

6

Basis of Presentation

These interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The unaudited interim condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this report, as is permitted by such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2023, and notes thereto, included in the Form 10-K.

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The more significant estimates employed in the preparation of the interim condensed consolidated financial statements include the determination of the valuation of investments in fixed maturity, investment impairments, the valuation of deferred tax assets, future policy benefits and other policyholder liabilities.

Accounting Standards Adopted and Pending

There were no significant accounting changes in 2024 that had a material impact on the Company's GAAP-basis financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance requires that Other-Than-Temporary Impairment (OTTI) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through net gains (losses) on investments. The guidance also requires enhanced disclosures. In March 2022, the FASB issued ASU 2022-02 – Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosure. This ASU was issued to eliminate the troubled debt restructuring recognition and measurement guidance for creditors that have adopted the current expected credit loss guidance while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. The Company has assessed the impact of ASU 2016-13 and has established an additional for credit losses on our mortgage portfolio of $237. The tax effected amount of $187 is reflected as a beginning of year equity as a Cumulative effect adjustment from changes in accounting guidance, net of tax. The Company has also assessed fixed maturities - available-for-sale, reinsurance recoverables and commissions and agent balances and determined no additional allowance for credit losses is needed. We also adopted the required disclosures within Note 2 Investments, Note 4 Reinsurance, Note 9 Accumulated Other Comprehensive Income and Note 10 Business Segments. Due to the adoption of the measurement of credit losses on financial instruments accounting standard, prior change in valuation allowance is now presented as a change in allowance for credit losses

Note 2 – Investments

The Company continuously monitors its investment strategies and individual holdings with consideration of current and projected market conditions, the composition of the Company’s liabilities, projected liquidity and capital investment needs, and compliance with investment policies and state regulatory guidelines.

7

Fixed Maturities

The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and net of allowances for credit losses are included in accumulated other comprehensive income (AOCI) of fixed maturities available-for-sale are as follows:

	March 31, 2024
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,171	$	257	$	(572	)	$	9,856
U.S. agency mortgage-backed		7,018		37		(595	)		6,460
State and political subdivisions		80,891		359		(9,692	)		71,558
Corporate and miscellaneous		165,521		1,796		(12,641	)		154,676
Foreign government		130		3		—			133
Residential mortgage-backed		8,194		80		(535	)		7,739
Commercial mortgage-backed		22,101		11		(1,512	)		20,600
Asset-backed		32,287		62		(1,847	)		30,502
Total fixed maturities	$	326,313	$	2,605	$	(27,394	)	$	301,524

	December 31, 2023
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,188	$	365	$	(488	)	$	10,065
U.S. agency mortgage-backed		7,173		61		(516	)		6,718
State and political subdivisions		79,362		347		(9,490	)		70,219
Corporate and miscellaneous		174,263		2,733		(11,700	)		165,296
Foreign government		130		5		—			135
Residential mortgage-backed		7,302		96		(523	)		6,875
Commercial mortgage-backed		22,043		23		(1,678	)		20,388
Asset-backed		35,681		86		(2,081	)		33,686
Total fixed maturities	$	336,142	$	3,716	$	(26,476	)	$	313,382

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Maturities of mortgage-backed and asset-backed securities may be substantially shorter than their contractual maturity because they may require monthly principal installments and such loans may prepay principal. The amortized cost and fair value of fixed maturities available-for-sale by contractual maturity, are presented in the following table:

	March 31, 2024
	Amortized Cost		Fair Value
Due in one year or less	$	6,207	$	6,126
Due after one year through five years		33,569		32,728
Due after five years through ten years		75,051		71,357
Due after ten years		141,885		126,012
Securities not due at a single maturity date — primarily mortgage and asset-backed		69,601		65,301
Total fixed maturities	$	326,313	$	301,524

8

Fixed maturities with a carrying value of $2,610 and $2,689 were on deposit with governmental authorities, as required by law at March 31, 2024 and December 31, 2023, respectively.

The Company’s fixed maturities portfolio was primarily composed of investment grade securities, defined as a security having a rating of Aaa, Aa, A, or Baa from Moody’s, AAA, AA, A, or BBB from Standard & Poor’s, or National Association of Insurance Commissioners (NAIC) rating of NAIC 1 or NAIC 2. Investment grade securities comprised 96.2% and 96.0% of the Company’s total fixed maturities portfolio at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, the Company had commitments to make investments in available-for-sale securities in the amount of $411 and $0, respectively.

Mortgage Loans

The Company makes investments in commercial mortgage loans. The Company, along with other investors, owns a pro rata share of each loan. The Company participates in 33 such investment instruments with ownership shares ranging from 0.6% to 30.0% of the trust at March 31, 2024. The Company owns a share of 307 mortgage loans with an average loan balance of $130 and a maximum exposure related to any single loan of $600. Mortgage loan holdings are diversified by geography and property type as follows:

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
Property Type:
Retail	$	12,367			30.7	%	$	12,812			31.2	%
Office		10,530			26.2	%		10,635			25.9	%
Industrial		7,386			18.4	%		7,476			18.2	%
Mixed use		4,654			11.6	%		4,798			11.7	%
Apartments		1,960			4.9	%		2,077			5.0	%
Medical office		2,393			6.0	%		2,423			5.9	%
Other		879			2.2	%		886			2.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
U.S. Region:
West South Central	$	9,935			24.7	%	$	10,038			24.3	%
East North Central		11,588			28.8	%		12,184			29.6	%
South Atlantic		7,938			19.8	%		8,046			19.6	%
West North Central		2,300			5.7	%		2,328			5.7	%
Mountain		2,524			6.3	%		2,560			6.2	%
Middle Atlantic		1,966			4.9	%		1,986			4.8	%
East South Central		3,480			8.7	%		3,519			8.7	%
Pacific		438			1.1	%		446			1.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

During the three months ended March 31, 2024 and March 31, 2023, $0 and $144 of new mortgage loans were purchased, respectively, which did not include second lien mortgage loans. There were no taxes, assessments, or any amounts advanced that were not included in the mortgage loan balances at March 31, 2024 and December 31, 2023. At March 31, 2024 and December 31, 2023, the Company had no mortgage loans that were in a restructured status, respectively. There were no impairments for mortgage loans during the three months ended March 31, 2024 and December 31, 2023.

9

The changes in the allowances for credit losses for commercial mortgage loans were as follows:

	Three Months Ended March 31, 2024			Year Ended December 31, 2023
Beginning balance	$	573		$	83
Net increase in allowances for credit losses related to change in accounting standards		—			237
Net (decrease) increase in allowances for credit losses		(7	)		253
Ending balance	$	566		$	573

At March 31, 2024 and December 31, 2023, the Company had no mortgage loans that were on non-accrual status.

At March 31, 2024 and December 31, 2023, the Company had commitments to make investments in mortgage loans in the amount of $3,828 and $3,734, respectively.

Net Investment Income

The sources of net investment income are as follows:

	Three Months Ended March 31,
	2024			2023
Income from:
Fixed maturities	$	3,875		$	3,868
Policyholder loans		85			97
Mortgage loans		479			726
Cash, cash equivalents and restricted cash		44			31
Gross investment income		4,483			4,722
Investment expenses		(348	)		(375	)
Net investment income	$	4,135		$	4,347

Investment expenses include investment management fees, some of which include incentives based on market performance, custodial fees and internal costs for investment-related activities.

Net Investment (Losses) Gains

The sources of net investment gains (losses) are as follows:

	Three Months Ended March 31,
	2024			2023
Investment (losses) gains from sales:
Fixed maturities	$	(500	)	$	36
Mortgage loans		—			—
Gains and losses from sales		(500	)		36
Valuation change of other invested assets - (decline) appreciation:		113			(545	)
Change in allowance for credit losses		7			(30	)
Total net gains (losses) on investments	$	(380	)	$	(539	)

Change in Allowance for Credit Losses

The Company regularly reviews its fixed income portfolio to identify and evaluate whether a security may require a credit loss allowance. For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings. For all other securities in an unrealized loss position in which the Company does not expect to recover the entire amortized cost basis, the security is deemed to have a credit loss.

10

Significant judgment is required in the determination of whether a credit loss has occurred for a security. The Company has developed a consistent methodology and has identified significant inputs for determining whether a credit loss has occurred. Some of the factors considered in evaluating whether a decline in fair value is a credit loss are the financial condition and prospects of the issuer, payment status, the probability of collecting scheduled principal and interest payments when due, credit ratings of the securities, and the duration and severity of the decline.

The credit loss component of fixed maturity impairment is calculated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective rate implicit to the security at the date of purchase or prior impairment. The methodology and assumptions for estimating the cash flows vary depending on the type of security. For mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral characteristics, expectations of delinquency and default rates, and structural support, including subordination and guarantees. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss exists. The non-credit component, determined as the difference between the adjusted amortized cost basis and fair value, is recognized in other comprehensive (loss) income. The credit loss component of a fixed maturity security impairment is calculated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective rate implicit to the security at the date of purchase or prior impairment. The methodology and assumptions for estimating the cash flows vary depending on the type of security. For mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral characteristics, expectations of delinquency and default rates, and structural support, including subordination and guarantees. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss exists. The non-credit component, determined as the difference between the adjusted amortized cost basis and fair value, is recognized in other comprehensive (loss) income.

The measurement of credit losses for available-for-sale fixed income securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the credit loss adjustment is recognized through an allowance which may change over time but once recorded cannot subsequently be reduced to an amount below zero.

A roll-forward of the cumulative credit losses on fixed maturities are as follows:

	March 31,		December 31,
	2024		2023
Beginning allowance for credit loss balance	$	28	$	-
Increase in credit loss allowance		—		28
Reduction of credit losses allowances related to securities sold during period		—		—
Ending allowance for credit loss balance	$	28	$	28

Unrealized Losses for Fixed Maturities

The Company’s fair value and gross unrealized losses for fixed maturities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows:

	12 months or less					Longer than 12 months					Total
March 31, 2024	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. government and agencies	$	994	$	(6	)	$	2,652	$	(566	)	$	3,646	$	(572	)
U.S. agency mortgage-backed		452		(4	)		4,663		(591	)		5,115		(595	)
State and political subdivisions		9,992		(258	)		46,997		(9,434	)		56,989		(9,692	)
Corporate and miscellaneous		27,711		(2,044	)		60,852		(10,597	)		88,563		(12,641	)
Residential mortgage-backed		849		(12	)		3,135		(523	)		3,984		(535	)
Commercial mortgage-backed		1,246		(25	)		17,878		(1,487	)		19,124		(1,512	)
Asset-backed		4,286		(224	)		20,076		(1,623	)		24,362		(1,847	)
Total fixed maturities	$	45,530	$	(2,573	)	$	156,253	$	(24,821	)	$	201,783	$	(27,394	)

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	12 months or less					Longer than 12 months					Total
December 31, 2023	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. agency mortgage-backed	$	499	$	(1	)	$	2,732	$	(488	)	$	3,231	$	(489	)
U.S. agency mortgage-backed		94		—			4,879		(515	)		4,973		(515	)
State and political subdivisions		8,151		(176	)		45,628		(9,314	)		53,779		(9,490	)
Corporate and miscellaneous		22,527		(1,871	)		66,482		(9,829	)		89,009		(11,700	)
Residential mortgage-backed		269		(10	)		3,029		(513	)		3,298		(523	)
Commercial mortgage-backed		1,430		(53	)		17,582		(1,625	)		19,012		(1,678	)
Asset-backed		3,551		(190	)		26,644		(1,891	)		30,195		(2,081	)
Total fixed maturities	$	36,521	$	(2,301	)	$	166,976	$	(24,175	)	$	203,497	$	(26,476	)

The indicated gross unrealized losses in all fixed maturity categories increased to $27,394 from $26,476 at March 31, 2024 and December 31, 2023, respectively. Based on the Company’s current evaluation of its fixed maturities in an unrealized loss position, in accordance with our impairment policy and the Company’s current intentions to hold these securities, the Company concluded that these securities do not have credit losses.

Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include fixed maturities and number of securities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at March 31, 2024.

	Unrealized Losses 12 months or less
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(6	)	$	(6	)	$	—		$	—			100	%
U.S. agency mortgage-backed		(4	)		(4	)		—			—			100	%
State and political subdivisions		(258	)		(258	)		—			—			100	%
Corporate and miscellaneous		(2,044	)		(623	)		(771	)		(650	)		87	%
Residential mortgage-backed		(12	)		(8	)		—			(4	)		58	%
Commercial mortgage-backed		(25	)		(25	)		—			—			100	%
Asset-backed		(224	)		(128	)		(95	)		(1	)		100	%
Gross unrealized losses	$	(2,573	)	$	(1,052	)	$	(866	)	$	(655	)
Total number of fixed maturities	188				158			21			9

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	Unrealized Losses greater than 12 months
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(566	)	$	(72	)	$	—		$	(494	)		100	%
U.S. agency mortgage-backed		(591	)		(174	)		(417	)		—			100	%
State and political subdivisions		(9,434	)		(623	)		(3,636	)		(5,175	)		100	%
Corporate and miscellaneous		(10,597	)		(884	)		(4,678	)		(5,035	)		85	%
Residential mortgage-backed		(523	)		(59	)		(338	)		(126	)		79	%
Commercial mortgage-backed		(1,487	)		(915	)		(565	)		(7	)		100	%
Asset-backed		(1,623	)		(703	)		(900	)		(20	)		97	%
Gross unrealized losses	$	(24,821	)	$	(3,430	)	$	(10,534	)	$	(10,857	)
Total number of fixed maturities		574			206			235			133

	Investment Grade		Below Investment Grade		Total
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net (1) (2)	$	15,466	$	416	$	15,882
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net (3) (4)		11,064		448		11,512
Total unrealized losses	$	26,530	$	864	$	27,394

(1) Below investment grade fixed income securities include $108 that have been in an unrealized loss position for less than twelve months.

(2) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

(3) Below investment grade fixed income securities include $756 that have been in an unrealized loss position for a period of twelve or more consecutive months.

(4) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

Note 3 – Policy Liabilities

Future Policy Benefits

Future policy benefits represent the reserve for direct and assumed traditional life insurance policies and annuities in payout status.

The annuities in payout status are certain structured settlement contracts. The policy liability for structured settlement contracts of $12,400 and $12,665 at March 31, 2024 and December 31, 2023, respectively, is computed as the present value of contractually specified future benefits. The amounts included in the policy liability for structured settlements that are life contingent at March 31, 2024 and December 31, 2023, is $9,850 and $10,014, respectively.

To the extent that unrealized gains on fixed maturities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded. A liability of $429 and $629 is included as part of the liability for structured settlements with respect to this deficiency at March 31, 2024 and December 31, 2023, respectively. The offset to this liability is recorded as a reduction of the unrealized capital gains included in AOCI.

Participating life insurance in-force was 2.3% and 2.3% of the face value of total life insurance at March 31, 2024 and December 31, 2023, respectively.

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Note 4 – Reinsurance

The Company uses reinsurance to mitigate exposure to potential losses, provide additional capacity for growth, and provide greater diversity of business. For ceded reinsurance, the Company remains liable to the extent that reinsuring companies may not be able to meet their obligations under the reinsurance agreements. To manage the risk from failure of a reinsurer to meet its obligations, the Company periodically evaluates the financial condition of all of its reinsurers. The reinsurance recoverable balances are stated net of allowances for credit losses. We have recorded claim amounts anticipated to be uncollectible of $0.2 million as of March 31, 2024 and $0.2 million as of December 31, 2023.

On July 18, 2023, the Liquidation Order of Scottish Re was approved by the Delaware Court specifying the effective date of the liquidation as September 30, 2023. The Liquidation Order specifies that all reinsurance agreements of Scottish Re are cancelled effective September 30, 2023. Accordingly, ceded future policy benefits of $657 were taken down as of the effective date of the order. Amounts recoverable on paid claims of $1.4 million and $1.4 million as of March 31, 2024 and December 31, 2023, respectively have been evaluated for any further credit losses and all amounts recorded are expected to be collectible.

Reinsurance recoverables are as follows:

	March 31,		December 31,
	2024		2023
Ceded future policy benefits	$	205,552	$	198,973
Claims and other amounts recoverables		34,672		39,625
Ending balance	$	240,224	$	238,598

The reconciliation of direct premiums to net premiums is as follows:

	Three Months Ended March 31,
	2024			2023
Direct premiums	$	47,504		$	44,356
Assumed premiums		8,158			9,913
Ceded premiums		(33,105	)		(29,931	)
Net insurance premiums	$	22,557		$	24,338

The reconciliation of direct, assumed and ceded amounts for life, annuity, and health claim benefits is as follows:

	Three Months Ended March 31,
	2024			2023
Direct	$	35,751		$	34,056
Assumed		4,145			4,161
Ceded		(22,021	)		(21,846	)
Life, annuity, and health claim benefits	$	17,875		$	16,371

Net policy charges on universal life products were $47 and $47 for the three months ended March 31, 2024 and 2023, respectively and are included in other income.

At March 31, 2024 and December 31, 2023, reserves related to fixed‑rate annuity deposits assumed from a former affiliate company amounted to approximately $61,416 and $62,665, respectively, and are included with policyholder account balances in the Interim Condensed Consolidated Balance Sheets.

Note 5 – Closed Block

The Closed Block was formed at October 1, 2006 and contains all participating policies issued or assumed by Fidelity Life. The assets and future net cash flows of the Closed Block are available only for purposes of paying benefits, expenses and dividends of the Closed Block and are not available to the Company, except for an amount of additional funding that was established at the inception of the Closed Block. The additional funding was designed to protect the block against future experience, and if the funding is not required for that purpose, is subject to reversion to the Company in the future. Any reversion of Closed Block assets to the Company must be approved by the Illinois Department of Insurance (IDOI).

In October 2011, the IDOI approved a reversion of a portion of the initial funding that the Company had determined was not required to fund the Closed Block. The carrying value of the assets transferred from the Closed Block on October 31, 2011, the date of transfer, was $4,397.

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The assets and liabilities within the Closed Block are included in the Company’s condensed consolidated financial statements on the same basis as other accounts of the Company. The maximum future earnings and accumulated other comprehensive income to be recognized from Closed Block assets and liabilities represent the estimated future Closed Block profits that will accrue to the Company and is calculated as the excess of Closed Block assets over Closed Block liabilities. Included in Closed Block assets at March 31, 2024 and December 31, 2023 is $11,236 and $11,143 of additional Closed Block funding, plus accrued interest, that is eligible for reversion to the Company if not needed to fund Closed Block experience, respectively.

The Closed Block was funded based on a model developed to forecast the future cash flows of the Closed Block, which is referred to as the actuarial calculation. The actuarial calculation projected the anticipated future cash flows of the Closed Block as established at the initial funding. We compare the actual results of the Closed Block to expected results from the actuarial calculation as part of the annual assessment of the current level of policyholder dividends. The assessment of policyholder dividends includes projections of future experience of the Closed Block. The review of Closed Block experience also includes consideration of whether a policy dividend obligation should be recorded to reflect favorable Closed Block experience that has not yet been reflected in the dividend scales. At March 31, 2024 and December 31, 2023, the Company recognized a policyholder dividend obligation of $9,783 and $9,636, respectively, resulting from the excess of actual cumulative earnings over the expected cumulative earnings and from accumulated net unrealized investment gains (losses) that have arisen subsequent to the establishment of the Closed Block.

Information regarding the Closed Block liabilities (assets) designated to the Closed Block is as follows:

	March 31,			December 31,
Closed Block Liabilities	2024			2023
Future policy benefits and claims	$	28,989		$	29,144
Policyholder account balances		6,414			6,492
Other policyholder liabilities		2,489			5,207
Policyholder dividend obligations		9,783			9,636
Other liabilities		374			2,068
Total Closed Block liabilities		48,049			52,547
Assets Designated to the Closed Block
Investments:
Fixed maturities - available-for-sale (amortized cost $42,414 and    $42,506, respectively)		39,068			39,678
Policyholder loans		1,198			1,234
Total investments		40,266			40,912
Cash and Cash Equivalents		—			—
Premiums due and uncollected		164			81
Accrued investment income		528			484
Reinsurance recoverables		10,313			14,739
Deferred income tax assets, net		4,290			4,100
Total assets designated to the Closed Block		55,561			60,316
Excess of Closed Block assets over liabilities		7,512			7,769
Amounts included in accumulated other comprehensive income:
Unrealized investment loss (gains), net of income tax		(2,643	)		(2,234	)
Total amounts included in accumulated other comprehensive income		(2,643	)		(2,234	)
Maximum future earnings and accumulated other comprehensive income to    be recognized from Closed Block assets and liabilities (includes excess    assets of $11,236 and $11,143, respectively)	$	(10,155	)	$	(10,003	)

	March 31,		December 31,
Policyholder Dividend Obligations	2024		2023
Beginning balance	$	9,636	$	9,515
Impact from earnings allocable to policyholder dividend obligations		147		121
Change in net unrealized investment gains (losses) allocated to policyholder    dividend obligations		—		—
Ending balance	$	9,783	$	9,636

15

Information regarding the Closed Block revenues and expenses is as follows:

	Three Months Ended March 31,
	2024			2023
Revenues
Net insurance premiums	$	864		$	1,377
Net investment income		480			438
Net Realized Investment Gains (Losses)		1			1
Total revenues		1,345			1,816
Benefits and expenses
Life and annuity benefits - including policyholder dividends    of $339 and $325, respectively		1,150			1,682
Interest credited to policyholder account balances		52			41
Operating costs and expenses		(48	)		170
Total expenses		1,154			1,893
Revenues, net of expenses before provision for income tax    expense (benefit)		192			(77	)
Income tax expense (benefit)		40			(16	)
Revenues, net of expenses and provision for income tax    expense (benefit)	$	152		$	(61	)

The Company charges the Closed Block with federal income taxes and state and local premium taxes, policy maintenance costs and investment management expenses relating to the Closed Block as provided in the Closed Block Memorandum.

The following table presents the amortized cost and fair value of the Closed Block fixed maturities portfolio by contractual maturity at March 31, 2024. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:

	Amortized Cost		Fair Value
Due in one year or less	$	3,704	$	3,647
Due after one year through five years		3,922		3,913
Due after five years through ten years		6,825		6,473
Due after ten years		24,865		22,018
Securities not due at a single maturity date — primarily mortgage and asset-    backed		3,098		3,017
Total fixed maturities	$	42,414	$	39,068

Note 6 – Commitments and Contingencies

Litigation

The Company is subject to legal and regulatory actions in the course of our business. Management does not believe such litigation will have a material impact on the Company’s interim condensed consolidated financial statements. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible but not probable or, is probable but not reasonably able to be estimated, no accrual is established, but the matter, if material, is disclosed. The Company is not aware of any material legal or regulatory matters threatened or pending against the Company.

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Note 7 – Assets and Liabilities Measured at Fair Value

Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company attempts to establish fair value as an exit price consistent with transactions taking place under normal market conventions. The Company utilizes market observable information to the extent possible and seeks to obtain quoted market prices for all securities. If quoted market prices in active markets are not available, the Company uses a number of methodologies to establish fair value estimates including discounted cash flow models, prices from recently executed transactions of similar securities, or broker/dealer quotes.

Fair values for the Company’s fixed maturity and equity securities are determined by management, utilizing prices obtained from third-party pricing services. Management reviews on an ongoing basis the reasonableness of the methodologies used by the pricing services to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. The main procedure the Company employs in fulfillment of this objective includes back-testing transactions, where past fair value estimates are compared to actual transactions executed in the market on similar dates.

The Company’s assets and liabilities have been classified into a three-level hierarchy based on the priority of the inputs to the respective valuation technique. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Level 1 and Level 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

Level 1 – Unadjusted quoted prices for identical assets in active markets the Company can access. Level 1 assets include securities that are traded in an active exchange market.

Level 2 – This level includes fixed maturities priced principally by independent pricing services using observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments on inactive markets; and model-derived valuations for which all significant inputs are observable market data. Level 2 instruments include most corporate debt securities and U.S. government and agency mortgage-backed securities that are valued by models using inputs that are derived principally from or corroborated by observable market data.

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Level 3 instruments include less liquid assets for which significant inputs are unobservable in the market, such as structured securities with complex features that require significant management assumptions or estimation in the fair value measurement.

This hierarchy requires the use of observable market data when available.

Certain assets and liabilities are not carried at fair value on a recurring basis, including investments such as mortgage loans, intangible assets, future policy benefits excluding term life reserves and policyholder account balances. Accordingly, such items are only included in the fair value hierarchy disclosure when the items are subject to re-measurement at fair value after initial recognition (for example, when there is evidence of impairment) and the resulting re-measurement is reflected in the consolidated financial statements at the reporting date.

Recurring and Non-Recurring Fair Value Measurements

The Company’s assets that are carried at fair value on a recurring and non-recurring basis, by fair value hierarchy level, are as follows:

March 31, 2024	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	9,856	$	—	$	9,856
U.S. agency mortgage-backed		—		6,460		—		6,460
State and political subdivisions		—		71,058		500		71,558
Corporate and miscellaneous		2,290		126,535		25,851		154,676
Foreign government		—		133		—		133
Residential mortgage-backed		—		7,739		—		7,739
Commercial mortgage-backed		—		20,600		—		20,600
Asset-backed		—		27,149		3,353		30,502
Total fixed maturities		2,290		269,530		29,704		301,524
Total recurring assets	$	2,290	$	269,530	$	29,704	$	301,524

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December 31, 2023	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	10,065	$	—	$	10,065
U.S. agency mortgage-backed		—		6,718		—		6,718
State and political subdivisions		—		69,726		493		70,219
Corporate and miscellaneous		2,258		136,688		26,351		165,297
Foreign government		—		135		—		135
Residential mortgage-backed		—		6,875		—		6,875
Commercial mortgage-backed		—		20,388		—		20,388
Asset-backed		—		30,428		3,258		33,686
Total fixed maturities		2,258		281,023		30,102		313,383
Total recurring assets	$	2,258	$	281,023	$	30,102	$	313,383

Summary of Significant Valuation Techniques for Assets on a Recurring Basis

Level 1 securities include principally exchange‑traded funds that are valued based on quoted market prices for identical assets.

Level 2 securities are based on prices obtained from independent pricing services. All of the Company’s prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type and region of the world, based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type and region. For fixed maturities that do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications which incorporate a variety of inputs including, but not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, and U.S. Treasury curves. Specifically, for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Securities with validated quotes from pricing services are reflected within Level 2 of the fair value hierarchy, as they generally are based on observable pricing for similar assets or other market significant observable inputs.

18

Level 3 fair value classification consists of investments in securities where the fair value of the security is determined by a pricing service using internal pricing models where one or more of the significant inputs is unobservable in the marketplace, or there is a single broker/dealer quote. The fair value of a broker-quoted asset is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant. The fair value of Level 3 liabilities is estimated on the discounted cash flows of contractual payments.

If the Company believes the pricing information received from third-party pricing services is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service. Historically, the Company has not challenged or updated the prices provided by third-party pricing services. However, any such updates by a pricing service to be more consistent with the presented market observations, or any adjustments made by the Company to prices provided by third-party pricing services would be reflected in the balance sheet for the current period.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). Net transfers into and/or out of Level 3 are reported as having occurred at the beginning of the period and are based on observable inputs received from pricing sources; therefore, all net realized and unrealized gains and losses on these securities for the period are reflected in the table that follows. A summary of changes in fair value of Level 3 assets held at fair value on a recurring basis is as follows:

			Total gains (losses) included in:
	Balance at January 1, 2024		Net Income (Loss)			OCI			Purchases		Sales			Settlements		Net Transfers			Balance at March 31, 2024
Financial Assets
Fixed maturities
State and political subdivision	$	492	$	—		$	8		$	—	$	—		$	—	$	—		$	500
Corporate and miscellaneous		26,351		(142	)		14			3,064		(3,190	)		—		(246	)		25,851
Asset-backed		3,259		53			(19	)		143		(83	)		—		—			3,353
Total assets	$	30,102	$	(89	)	$	3		$	3,207	$	(3,273	)	$	—	$	(246	)	$	29,704

			Total gains (losses) included in:
	Balance at January 1, 2023		Net Income			OCI		Purchases		Sales			Settlements		Net Transfers		Balance at December 31, 2023
Financial Assets
Fixed maturities
State and political subdivisions	$	442	$	—		$	50	$	—	$	—		$	—	$	—	$	492
Corporate and miscellaneous		26,991		(38	)		74		2,982		(4,030	)		—		372		26,351
Asset-backed		3,133		106			182		658		(820	)		—		—		3,259
Total assets	$	30,566	$	68		$	306	$	3,640	$	(4,850	)	$	-	$	372	$	30,102

There was 1 transfer from Level 3 to Level 2 and no transfer from Level 2 to Level 3 in 2024. There were 3 transfers from Level 2 to Level 3 and 1 transfer from Level 3 to Level 2 in 2023.

19

Financial Instruments not Measured at Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude cash and cash equivalents and accrued investment income, that are not securities and therefore are not included in the three-level hierarchy table disclosed in the “Recurring and Non-Recurring Fair Value Measurements” section. The carrying amount and estimated fair values of the Company’s financial instruments that are not measured at fair value on the Interim Condensed Consolidated Balance Sheets are as follows:

			Estimated Fair Value
March 31, 2024	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	39,603	$	—	$	—	$	36,357	$	36,357
Policyholder loans	$	7,216	$	—	$	—	$	8,310	$	8,310
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	$	16,017	$	—	$	—	$	15,119	$	15,119
Long/short-term debt	$	51,259	$	—	$	—	$	49,244	$	49,244
Policyholder account balances	$	69,414	$	—	$	—	$	64,748	$	64,748

			Estimated Fair Value
December 31, 2023	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	40,534	$	—	$	—	$	37,005	$	37,005
Policyholder loans	$	7,149	$	—	$	—	$	8,234	$	8,234
Financial instruments recorded    as liabilities:
Future policy benefits, excluding term    life reserves	$	16,307	$	—	$	—	$	15,319	$	15,319
Long/short-term debt	$	49,010	$	—	$	—	$	51,927	$	51,927
Policyholder account balances	$	70,726	$	—	$	—	$	65,881	$	65,881

The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities.

Mortgage Loans — Fair value was based on the discounted value of future cash flows for all first mortgage loans adjusted for specific loan risk. The discount rate was based on the rate that would be offered for similar loans at the reporting date. Fair value excludes $1,005 and $1,098 of second and mezzanine mortgages carried at cost for which fair value is not measurable at March 31, 2024 and December 31, 2023, respectively.

Policyholder Loans — Fair value of policyholder loans was estimated using discounted cash flows using risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash value of the underlying insurance policy.

Future Policy Benefits and Policyholder Account Balances — Liabilities with interest rate guarantees greater than one year or with defined maturities, the fair value was estimated by calculating an average present value of expected cash flows over a broad range of interest rate scenarios using the current market risk‑free interest rates adjusted for spreads required for publicly traded bonds issued by comparably rated insurers. Certain non-interest sensitive reserves are at carrying value, which approximates fair value.

Long and Short-Term Debt — Fair value was calculated using the discounted value of future cash flows method. The discount rate was based on the rate that is commensurable to the level of risk. The carrying amounts reported on the Interim Condensed Consolidated Balance Sheets have been divided into short and long-term based upon expected maturity dates.

20

Note 8 – Long and Short-Term Debt

Beginning January 1, 2024, the commission financing agreement, which has been effective since 2022 has been terminated relating to any new business. At March 31, 2024 and December 31, 2023, the Company had a net advance of $36,622 and $40,393, respectively, under this arrangement. At March 31, 2024, the Company expects to pay back the aggregate amounts as presented in the following table.

	March 31, 2024
Due in one year or less	$	12,976
Due after one year through two years		6,408
Due after two years through three years		5,994
Due after three years through four years		5,556
Due after four years through five years		5,091
Due after five years		39,837
Less discount		(24,603	)
Total long/short-term debt	$	51,259

Federal Home Loan Bank of Chicago

The Company is a member of the Federal Home Loan Bank of Chicago (FHLBC). As a member, the Company is able to borrow on a collateralized basis from the FHLBC which can be used as an alternative source of liquidity. The FHLBC membership requires the Company to own member stock. At March 31, 2024 and December 31, 2023, the Company held $270 and $270 of FHLBC common stock, which is included in Other invested assets, respectively. The Company's ability to borrow under this facility is subject to the FHLBC's discretion and requires the availability of qualifying assets. During the first three months of 2024, the Company received advances of $5,300, which remains outstanding as of March 31, 2024 and is included in the Due in one year or less line in the table above.

Note 9 – Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income, net of taxes are as follows:

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2024	$	362	$	(21,584	)	$	(21,222	)
Unrealized holding (losses) gains from changes in the market value of securities		—		(1,991	)		(1,991	)
Impact on Policy benefit liabilities of changes in market value of securities		—		199			199
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		—			-
Income tax benefit (expense)		—		313			313
Other comprehensive income (loss), net of tax		—		(1,479	)		(1,479	)
Balance at March 31, 2024	$	362	$	(23,063	)	$	(22,701	)

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2023	$	362	$	(30,534	)	$	(30,172	)
Unrealized holding (losses) gains from changes in the market value of securities		—		7,927			7,927
Impact on Policy benefit liabilities of changes in market value of securities		—		(251	)		(251	)
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		-			-
Income tax (expense) benefit		—		(1,363	)		(1,363	)
Other comprehensive income (loss), net of tax		—		6,313			6,313
Balance at March 31, 2023	$	362	$	(24,221	)	$	(23,859	)

21

Note 10 – Business Segments

Our Chief Operating Decision Maker makes decisions by analyzing our segment information. For internal decision-making purposes and external reporting purposes, we do not disaggregate revenue beyond our segment information and believe that any further disaggregation is immaterial. The Company’s current operations were organized into three reportable segments: Insurance, Agency, and Corporate & Other.

The Insurance Segment is composed of three broad lines consisting of Traditional Life, Closed Block, and Assumed Life and Annuities. Traditional Life and the Closed Block are distinct operations; the Assumed life and annuities business and the small amount of structured settlements are all blocks in runoff from a prior management arrangement.

The Agency Segment includes the insurance distribution operations of the Company and includes commission revenue from the sale of Fidelity Life products.

The Corporate & Other Segment includes expenses that will benefit the overall organization, which are not allocated to a segment. This segment recognizes net investment income on cash and invested assets held mainly as a result of the IPO and transaction expenses related to our recently announced merger transaction and interest expense on the commission financing agreement.

All intercompany accounts and transactions have been eliminated in consolidation, including any profit or loss from the sale of Insurance Segment products through the Agency Segment.

The segment results are as follows:

	Three Months Ended March 31, 2024												Three Months Ended March 31, 2023
	Insurance			Agency			Corporate & Other			Total Consolidated			Insurance			Agency		Corporate & Other			Total Consolidated
Net insurance premiums	$	22,557		$	—		$	—		$	22,557		$	24,338		$	—	$	—		$	24,338
Net investment income		4,079			—			56			4,135			4,273			—		74			4,347
Net (losses) gains on investments		(380	)		—			—			(380	)		(307	)		—		(232	)		(539	)
Earned commissions		—			16,798			—			16,798			—			15,094		(345	)		14,749
Other income		438			1,945			—			2,383			275			1,452		—			1,727
Total revenues		26,694			18,743			56			45,493			28,579			16,546		(503	)		44,622
Life, annuity, and health claim benefits		18,488			—			—			18,488			17,060			—		—			17,060
Operating costs and expenses		8,199			19,814			1,455			29,468			7,704			16,419		1,646			25,769
Amortization of deferred policy acquisition costs		3,749			—			—			3,749			3,648			—		—			3,648
Total benefits and expenses		30,436			19,814			1,455			51,705			28,412			16,419		1,646			46,477
Income (loss) before income taxes	$	(3,742	)	$	(1,071	)	$	(1,399	)	$	(6,212	)	$	167		$	127	$	(2,149	)	$	(1,855	)

	March 31, 2024								December 31, 2023
	Insurance		Agency		Corporate & Other		Total Consolidated		Insurance		Agency		Corporate & Other		Total Consolidated
Investments and cash	$	364,457	$	844	$	215	$	365,516	$	367,746	$	643	$	3,084	$	371,473
Commissions and agent balances		13,059		45,232		—		58,291		8,471		45,023		—		53,494
Deferred policy acquisition costs		89,186		—		—		89,186		88,076		—		—		88,076
Intangible assets		—		1,635		—		1,635		—		1,635		—		1,635
Reinsurance recoverables net		240,224		—		—		240,224		238,598		—		—		238,598
Deferred income tax assets, net		20,612		—		12,784		33,396		19,195		—		13,201		32,396
Other		29,600		9,095		391		39,086		27,623		9,009		514		37,146
Total assets	$	757,138	$	56,806	$	13,390	$	827,334	$	749,709	$	56,310	$	16,799	$	822,818

All the Company’s significant revenues and long-lived assets are located in the United States, which is the Company’s country of domicile.

22

Note 11 –Subsequent Events

Management has evaluated subsequent events up to and including May 15, 2024, the date these Interim Condensed Consolidated Financial Statements were issued and determined there were no reportable subsequent events.

23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for the three months ended March 31, 2024 and 2023

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This Form 10-Q contains “forward-looking” statements that are intended to enhance the reader’s ability to assess our future financial and business performance. Forward-looking statements include, but are not limited to, statements that represent our beliefs concerning future operations, strategies, financial results or other developments, and contain words and phrases such as “may,” “expects,” “should,” “believes,” “anticipates,” “estimates,” “intends” or similar expressions. In addition, statements that refer to our future financial performance, anticipated growth and trends in our business and in our industry and other characterizations of future events or circumstances are forward-looking statements. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different.

Consequently, such forward-looking statements should be regarded solely as our current plans, estimates and beliefs with respect to, among other things, future events and financial performance. Except as required under the federal securities laws, we do not intend, and do not undertake, any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

The forward-looking statements include, among other things, those items listed below:

•future economic conditions in the markets in which we compete that could be less favorable than expected and could have impacts on demand for our products and services;

•our ability to grow and develop our Agency business through expansion of retail call centers, online sales, wholesale operations and other areas of opportunity;

•our ability to grow and develop our insurance business and successfully develop and market new products;

•our ability to enter new markets successfully and capitalize on growth opportunities either through acquisitions or organically;

•financial market conditions, including, but not limited to, changes in interest rates and the level and trends of stock market prices causing a reduction of net investment income or realized losses and reduction in the value of our investment portfolios;

•increased competition in our businesses, including the potential impacts of aggressive price competition by other insurance companies, payment of higher commissions to agents that could affect demand for our insurance products and impact the ability to grow and retain agents in our Agency Segment and the entry of new competitors and the development of new products by new or existing competitors, resulting in a reduction in the demand for our products and services;

•the effect of legislative, judicial, economic, demographic, and regulatory events in the jurisdictions where we do business;

•the effect of challenges to our patents and other intellectual property;

•costs, availability, and collectability of reinsurance;

•the potential impact on our reported net income that could result from the adoption of future accounting standards issued by the Financial Accounting Standards Board or other standard-setting bodies;

•the inability to maintain or grow our strategic partnerships or our inability to realize the expected benefits from our relationship with the Standby Purchaser;

•the inability to manage future growth and integration of our operations; and

•changes in industry trends and financial strength ratings assigned by nationally recognized statistical rating organizations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and accompanying notes included in Item 1 of this Form 10-Q. Some of the information contained in this discussion and analysis and set forth elsewhere in this Form 10-Q constitutes forward looking information that involves risks and uncertainties. You should review “Forward Looking Statements” for a discussion of important factors that could cause actual results to differ materially from the results described, or implied by, the forward-looking statements contained herein.

24

Overview

We provide life insurance protection targeted to the middle American market. We believe there is a substantial unmet need for life insurance, particularly among domestirc households with annual incomes of between $50,000 and $125,000, a market we refer to as our target Middle Market. We differentiate our product and service offerings through innovative product design and sales processes, with an emphasis on rapidly issued products that are not medically underwritten at the time of sale.

We conduct our business through our two operating subsidiaries, Fidelity Life, an Illinois-domiciled life insurance company, and Efinancial, a call center-based insurance agency. Efinancial sells Fidelity Life products through its own call center distribution platform, independent agents and other marketing organizations. Efinancial, in addition to offering Fidelity Life products, sells insurance products of unaffiliated carriers. We report our operating results in three segments: Agency, Insurance and Corporate & Other.

COVID-19

The stress and disruption placed on the global economy and financial markets from the outbreak of COVID-19 may continue to have near and long-term negative effects on investment valuations, returns, and credit allowance exposure. The Company will continue to closely monitor the situation, including potential negative impacts on sales of new policies and mortality; however, due to the highly uncertain nature of these conditions, it is not possible to reliably estimate the length and severity of COVID-19 or its impact to the Company’s operations, but the effect could be material.

War in Ukraine and Israel

The Company believes the wars in Ukraine and in and around Israel do not have a material impact on the interim condensed consolidated financial statements of the Company at March 31, 2024.

National Service Group of AmeriLife, LLC

In the second quarter 2020, Fidelity Life entered into a General Agent’s agreement with an unaffiliated third party, National Service Group of AmeriLife, LLC (“AmeriLife”). The President of this entity, Scott Perry also sits on the Company’s Board of Directors. This agreement provides Fidelity Life access to AmeriLife distribution channels, its commission systems and assists in streamlining administrative processes related to commissions. This agreement also allows Efinancial to operate as a sub agent to AmeriLife. On May 15, 2020, the Company began selling products using this new distribution arrangement. Due to the large amount of the Company’s insurance policies now being sold through AmeriLife, dissolution of this agency arrangement could have a material impact on the Company’s financial statements. The Company has additional arrangements with AmeriLife wherein Efinancial’s sub agents may sell third party products through AmeriLife. To date it is not believed that any of these arrangements will exceed the related party thresholds described in 17 CFR § 229.404. Should these or other arrangements change or exceed the aforementioned threshold, after review by the CFO and General Counsel, the Company’s Chairman will be advised and written sign-off will be required from the Company's Chairman.

Agency Segment

This segment primarily consists of the operations of Efinancial. Efinancial is a call center-based insurance agency that markets life insurance for Fidelity Life and unaffiliated insurance companies. Efinancial’s primary operations are conducted through employee agents from three call center locations, which we refer to as our retail channel. In addition, Efinancial operates as a wholesale agency, assisting independent agents that seek to produce business for the carriers that Efinancial represents, which we refer to as our wholesale channel. The Agency Segment’s main source of revenue is commissions earned on the sale of insurance policies sold through our retail and wholesale channels. Efinancial also generates data and click-through revenue (reported as part of Insurance Lead Sales on the related Interim Condensed Consolidated Statements of Operations) through its eCoverage web presence.

Agency Segment expenses consist of marketing costs to acquire potential customers, salary and bonuses paid to our employee agents, salary and other costs of employees involved in managing the underwriting process for our insurance applications, sales management, agent licensing, training and compliance costs. Other Agency Segment expenses include costs associated with financial and administrative employees, facilities rent, and information technology. After payroll, the most significant Agency Segment expense is the cost of acquiring leads. We partially offset our sales leads expense through advertising revenues from individuals who click on specific advertisements while viewing one of our web pages, and through the resale of leads that are not well suited for our call center.

Insurance Segment

This segment consists of the operations of Fidelity Life. Fidelity Life underwrites primarily term life insurance through Efinancial and a diverse group of independent insurance distributors. Fidelity Life specializes in life insurance products that can be issued immediately or within a short period following a sales call, using non-medical underwriting at the time of policy issuance.

25

Fidelity Life engages in the following business lines:

Core Life - Our Core Life insurance business is the primary business of the Insurance Segment. Core Life represents a significant portion of the insurance business written by Fidelity Life since it resumed independent operations in 2005. Our Core Life business consists of in­force policies that are considered to be of high strategic importance to Fidelity Life.

Non ­Core Life - Our Non­ Core Life business consists of: products that are currently being marketed but are not deemed to be of high strategic importance to the Company in­force policies from product lines introduced since Fidelity Life resumed independent operations in 2005 but were subsequently discontinued and an older annuity block of business that was not included in the Closed Block.

Closed Block - Our Closed Block represents all in­force participating insurance policies of Fidelity Life. The Closed Block was established in connection with our 2007 reorganization into a mutual holding company structure.

Annuities and Assumed Life - We have assumed reinsurance commitments with respect to annuity contract holder deposits and a block of life insurance contracts that were ceded by former affiliates of Fidelity Life. Under an agreement with Protective Life Insurance Company (Protective Life), the successor to a former affiliate of Fidelity Life, Fidelity Life had assumed a portion of risk on a group of life insurance contracts primarily written in the 1980s and early 1990s.

Insurance Segment revenues consist of net insurance premiums, net investment income, and net realized gains (losses) on investments. We recognize premium revenue from our policyholders. We purchase reinsurance coverage to help manage the risk on our insurance policies by paying, or ceding, a portion of the policyholder premiums to the reinsurance company. Our net insurance premiums reflect amounts collected from policyholders, plus premiums assumed under reinsurance agreements less premiums ceded to reinsurance companies. Net investment income represents primarily interest income earned on fixed maturity investments. We also realize gains and losses on sales of investment securities.

Insurance Segment expenses consist of benefits paid to policyholders or their beneficiaries under life insurance policies. Benefit expenses also include additions to the reserve for future policyholder benefits to recognize our estimated future obligations under the policies. Benefit expenses are shown net of amounts ceded under our reinsurance contracts. Our Insurance Segment also incurs policy acquisition costs that consist of commissions paid to agents, policy underwriting, issue costs and variable sales costs. A portion of these policy acquisition costs are deferred and expensed over the life of the insurance policies acquired during the period. In addition to policy acquisition costs, we incur expenses that vary based on the number of contracts that we have in-force, or variable policy administrative costs. These variable costs consist of expenses paid to third-party administrators based on rates for each policy administered. Our insurance operations also incur overhead costs for functional and administrative staff to support insurance operations, financial reporting and information technology.

Corporate & Other Segment

The results of this segment consist of net investment income and net gains (losses) on investments earned on invested assets. We also include certain corporate expenses, including severance costs that are not allocated to our other segments, including expenses of Vericity, Inc., board of director's expenses, allocation of executive management time spent on corporate matters, and financial reporting and auditing costs related to our consolidation and internal controls. Our Corporate & Other Segment recognizes income (loss) to the extent that net investment income and net gains (losses) on investments exceed (are less than) corporate expenses.

Included in the Corporate & Other Segment is the elimination of intercompany transactions which primarily consists of the sales by our Agency Segment of life products of our Insurance Segment. The eliminations represent the amounts required to eliminate the intercompany transactions as recorded in our segment results, and in particular, to eliminate any intersegment profits resulting from such transactions. Our segment results follow the accounting principles and methods applicable to each segment as if the intercompany transactions were with unaffiliated organizations: See "Corporate & Other" segment results included in this Management Discussion & Analysis for further discussion.

Critical Accounting Policies

Our critical accounting policies are described in “Note 1—Basis of Presentation and Summary of Significant Accounting Policies” to our Consolidated Financial Statements as of and for the year ended December 31, 2023 included in the Form 10-K. The preparation of the Interim Condensed Consolidated Financial Statements in conformity with GAAP requires management to use judgment in making estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses and related disclosures. We regularly evaluate our estimates and judgments based on historical experience, market indicators and other relevant factors and circumstances. Actual results may differ from these estimates under different assumptions or conditions and may affect our financial position and results of operations. Accordingly, these Interim Condensed Consolidated Financial Statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2023, and notes thereto, included in the Form 10-K.

26

Results of Operations

The major components of operating revenues, benefits and expenses and net (loss) income were as follows:

Vericity, Inc. Consolidated Results of Operations

(dollars in thousands)

	Three Months Ended March 31,
(dollars in thousands)
Revenues	2024			2023
Net insurance premiums	$	22,557		$	24,338
Net investment income		4,135			4,347
Net (losses) gains on investments		(380	)		(539	)
Earned commissions		16,798			14,749
Insurance lead sales		1,404			1,222
Other income		979			505
Total revenues		45,493			44,622
Benefits and expenses
Life, annuity, and health claim benefits		17,875			16,371
Interest credited to policyholder account balances		613			689
Operating costs and expenses		29,468			25,769
Amortization of deferred policy acquisition costs		3,749			3,648
Total benefits and expenses		51,705			46,477
(Loss) Income before income taxes		(6,212	)		(1,855	)
Income tax (benefit) expense		(686	)		26
Net (loss) income	$	(5,526	)	$	(1,881	)

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Total Revenues

For the three months ended March 31, 2024, total revenues were $45.5 million compared to $44.6 million for the three months ended March 31, 2023. This increase of $0.9 million resulted primarily from an increase in earned commissions, other income, insurance lead sales, partially offset by a decrease in net insurance premiums and net investment income.

Benefits and Expenses

For the three months ended March 31, 2024, total benefits and expenses were $51.7 million compared to $46.5 million for the three months ended March 31, 2023. This increase of $5.2 million is driven by higher operating expenses and claim benefits.

Income (Loss) Before Income Taxes

For the three months ended March 31, 2024, net loss before taxes was $6.2 million compared to net loss before taxes of $1.9 million for the three months ended March 31, 2023. This increase in net loss of $4.3 million was primarily due to lower net insurance premiums and higher operating expenses and higher claim benefits, partially offset by an increase from earned commissions.

Consolidated Results

The following analysis reconciles the reported segment results to the Company’s total consolidated results.

	Three Months Ended March 31,
	2024			2023
	(dollars in thousands)
(Loss) Income before income tax by segment
Agency	$	(1,071	)	$	127
Insurance		(3,742	)		167
Corporate & Other		(1,399	)		(2,149	)
(Loss) Income from operations before income tax		(6,212	)		(1,855	)
Income tax (benefit) expense		(686	)		26
Net (loss) income	$	(5,526	)	$	(1,881	)

27

Agency Segment

The results of our Agency Segment were as follows:

	Three Months Ended March 31,
	2024			2023
	(dollars in thousands)
Revenues
Earned commissions	$	16,798		$	15,094
Insurance lead sales & Other		1,945			1,452
Total revenues		18,743			16,546
Expenses
Operating costs and expenses		19,814			16,419
Total expenses		19,814			16,419
(Loss) Income before income taxes	$	(1,071	)	$	127

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Earned Commissions

For the three months ended March 31, 2024, earned commissions were $16.8 million compared to $15.1 million for the three months ended March 31, 2023. This increase of $1.7 million resulted from increased sales in the retail channel.

Operating Costs and Expenses

For the three months ended March 31, 2024, operating costs and expenses were $19.8 million compared to $16.4 million for the three months ended March 31, 2023. This increase of $3.4 million was primarily due to an increase in variable costs.

Income (Loss) Before Income Taxes

For the three months ended March 31, 2024, the Agency Segment net loss before taxes was $1.1 million compared to net income of $0.1 million for the three months ended March 31, 2023. This decrease in net income of $1.2 million was the result of higher operating expenses, partially offset by increased earned commissions.

Insurance Segment

The results of our Insurance Segment were as follows:

	Three Months Ended March 31,
	2024			2023
(dollars in thousands)
Revenues
Net insurance premiums	$	22,557		$	24,338
Net investment income		4,079			4,273
Net (losses) gains on investments		(380	)		(307	)
Other income		438			275
Total revenues	$	26,694		$	28,579
Benefits and expenses
Life, annuity, and health claim benefits		17,875			16,371
Interest credited to policyholder account balances		613			689
Operating costs and expenses		8,199			7,704
Amortization of deferred policy acquisition costs		3,749			3,648
Total benefits and expenses		30,436			28,412
(Loss) Income before income taxes	$	(3,742	)	$	167

28

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Net Insurance Premiums

For the three months ended March 31, 2024, net insurance premiums were $22.6 million compared to $24.3 million for the three months ended March 31, 2023. This decrease of $1.7 million in net insurance premiums was attributable to a decrease of $1.7 million related to the LifeTime Benefit term product.

Other Income

For the three months ended March 31, 2024, other income increased to $0.4 million compared to $0.3 million for the three months ended March 31, 2023. The $0.1 million increase was mainly due to our licensing arrangement on our patented LifeTime Benefit term product.

Life, Annuity and Health Claim Benefits

For the three months ended March 31, 2024, life, annuity and health claim benefits were $17.9 million compared with $16.4 million for the three months ended March 31, 2023. This increase of $1.5 million was primarily due to our Non Core lines of $1.4 million and our Core lines of $0.4 million, partially offset by a decrease in Closed Block of $0.5 million.

Operating Costs and Expenses

For the three months ended March 31, 2024, operating costs and expenses were $8.2 million compared to $7.7 million for the three months ended March 31, 2023. The $0.5 million increase was primarily due to increased staff costs.

Amortization of Deferred Policy Acquisition Costs

For the three months ended March 31, 2024, amortization of deferred policy acquisition costs was $3.7 million compared to $3.6 million for the three months ended March 31, 2023. This decrease of $0.1 million is primarily related to a decrease of $0.3 million in Closed Block and an increase in Non core of $0.2 million and Core of $0.1 million.

Income (Loss) Before Income Taxes

For the three months ended March 31, 2024, net loss was $3.7 million compared to net income of $0.2 million for the three months ended March 31, 2023. This increase in net loss of $3.9 million resulted primarily from a decrease in net insurance premiums of $1.7 million, increased claim benefits of $1.5 million, and higher operating costs and expenses of $0.5 million.

Closed Block

The Closed Block was formed as of October 1, 2006 and contains all participating policies issued or assumed by Fidelity Life. The assets and future net cash flows of the Closed Block are available only for purposes of paying benefits, expenses and dividends of the Closed Block and are not available to the Company, except for an amount of additional funding that was established at inception. The additional funding was designed to protect the block against future adverse experience, and if the funding is not required for that purpose, it is subject to reversion to the Company in the future. Any reversion of Closed Block assets to the Company must be approved by the IDOI.

The maximum future earnings to be recognized from Closed Block assets and liabilities represent the estimated future Closed Block profits that will accrue to the Company and is calculated as the excess of Closed Block assets over Closed Block liabilities. Included in Closed Block assets at March 31, 2024 and December 31, 2023, are $11.2 million and $11.1 million, respectively, of additional Closed Block funding, plus accrued interest, that is eligible for reversion to the Company if not needed to fund Closed Block experience.

The Closed Block was funded based on a model developed to forecast the future cash flows of the Closed Block which is referred to as the “glide path.” The glide path model projected the anticipated future cash flows of the Closed Block as established at the initial funding. We compare the actual results of the Closed Block to expected results from the glide path as part of the annual assessment of the current level of policyholder dividends. The assessment of policyholder dividends includes projections of future experience of the Closed Block policies and the investment experience of the Closed Block assets. The review of Closed Block experience also includes consideration of whether a policy dividend obligation should be recorded to reflect favorable Closed Block experience that has not yet been reflected in the dividend scales. See “Note 5—Closed Block” in the accompanying Notes to the Interim Condensed Consolidated Financial Statements.

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Corporate & Other Segment

The results of the Corporate & Other Segment were as follows:

	Three Months Ended March 31,
	2024			2023
	(dollars in thousands)
Revenues
Net investment income	$	56		$	74
Net (losses) gains on investments		—			(232	)
Earned commissions		—			(345	)
Total revenues		56			(503	)
Expenses
Operating costs and expenses		1,455			1,646
Total expenses		1,455			1,646
(Loss) income from operations before income tax	$	(1,399	)	$	(2,149	)

Three Months Ended March 31, 2024 Compared to the Three Months Ended March 31, 2023

Net (Losses) Gains on Investments

For the three months ended March 31, 2024, net losses on investments was zero compared to $0.2 million for the three months ended March 31, 2023. The decrease in net loss is attributable to market value losses on other invested assets held in the Corporate segment during 2023.

Earned Commissions

For the three months ended March 31, 2024, earned commissions were zero compared to ($0.3) million for the three months ended March 31, 2023. This change is attributable to no intersegment earned commissions in the Corporate and Other segment.

Operating Expenses

For the three months ended March 31, 2024, operating expenses were $1.5 million compared to $1.6 million for the three months ended March 31, 2023. This decrease of $0.1 million is attributable to a decrease in staff costs.

(Loss) Income Before Income Taxes

For the three months ended March 31, 2024, net loss decreased $1.4 million from $2.1 million for the three months ended March 31, 2023. The decreased loss is primarily due to no earned commissions and a decrease in operating costs and expenses.

Investments

Investment Returns

We invest available cash and funds that support our regulatory capital, surplus requirements and policy reserves in investment securities that are included in the Insurance and Corporate & Other Segments. We earn income on these investments in the form of interest on fixed maturities (bonds and mortgage loans) and dividends (equity holdings). Net investment income is recorded as revenue, net of investment related expenses. The amount of net investment income that we recognize will vary depending on the amount of invested assets that we own, the types of investments, the interest rates earned, and amount of dividends received on our investments.

Gains and losses on sales of investments are classified as “realized investment gains (losses)” and are recorded as revenue. Capital appreciation and depreciation caused by changes in the market value of investments classified as “available-for-sale” is recorded in accumulated other comprehensive income. The amount of investment gains and losses that we recognize depends on the amount of and the types of invested assets we own, and the market conditions related to those investments. Our cash needs can vary from time to time and could require that we sell invested assets to fund cash needs.

Investment Guidelines

Our investment strategy and guidelines are developed by management and approved by the Investment Committee of Fidelity Life’s board of directors. Our investment strategy related to the Insurance Segment is designed to maintain a well-diversified, high quality fixed income portfolio that will provide adequate levels of net investment income and liquidity to meet our policyholder

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obligations under our life insurance policies and our assumed annuity deposits. To help maintain liquidity, we establish the duration of invested assets within a tolerance to the policy liability duration. The investments of the Insurance Segment are managed with an emphasis on current income within quality and diversification constraints. The focus is on book yield of the fixed income portfolio as the anticipated portfolio yield is a key element used in pricing our insurance products and establishing policyholder crediting rates on our annuity contracts.

We apply our overall investment strategy and guidelines on a consolidated basis for purposes of monitoring compliance with our overall guidelines. All of our investments are owned by Fidelity Life and are maintained in compliance with insurance regulations. Critical guidelines of our investment plan include:

•Asset concentration guidelines that limit the amount that we hold in any one issuer of securities,

•Asset quality guidelines applied on a portfolio basis and for individual issues that establish a minimum asset quality standard for portfolios and establish minimum asset quality standards for investment purchases and investment holdings,

•Liquidity guidelines that limit the amount of illiquid assets that can be held at any time, and

•Diversification guidelines that limit the exposure at any time to the total portfolio by investment sectors.

Our investment portfolios are all managed by third-party investment managers that specialize in insurance company asset management. These managers are selected based upon their expertise in the particular asset classes that we own. We contract with an investment management firm to provide overall assistance with oversight of our portfolio managers, evaluation of investment performance and assistance with development and implementation of our investment strategy. This investment management firm reports to our Chief Financial Officer and to the Investment Committee of Fidelity Life’s board of directors. On a quarterly basis, or more frequently if circumstances require, we review the performance of all portfolios and portfolio managers with the Investment Committee.

The following table shows the distribution of the fixed maturities classified as available-for-sale by quality rating using the rating assigned by Standard & Poor’s (S&P), a nationally recognized statistical rating organization. For securities where the S&P rating is not available (not rated), the NAIC rating is used. Over the periods presented, we have maintained a consistent weighted average bond quality rating of “A.” The percentage allocation of total investment grade securities was 96.2% and 96.0% at March 31, 2024 and December 31, 2023, respectively.

	Estimated Fair Value
	March 31, 2024				December 31, 2023
	(dollars in thousands)
S&P Rating
AAA	$	35,969	11.9	%	$	36,750	11.7	%
AA		79,904	26.6	%		81,513	26.0	%
A		69,083	22.9	%		70,682	22.6	%
BBB		44,552	14.8	%		51,638	16.5	%
Not rated		60,444	20.0	%		60,263	19.2	%
Total investment grade		289,952	96.2	%		300,846	96.0	%
BB		4,616	1.5	%		5,134	1.6	%
B		1,841	0.6	%		2,844	1.0	%
CCC		869	0.3	%		407	0.1	%
Not rated		4,246	1.4	%		4,151	1.3	%
Total below investment grade		11,572	3.8	%		12,536	4.0	%
Total	$	301,524	100.0	%	$	313,382	100.0	%

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The following table sets forth the maturity profile of our fixed maturities at March 31, 2024 from December 31, 2023. Expected maturities could differ from contractual maturities because borrowers may have the right to call or prepay obligations, with or without penalty.

	March 31, 2024										December 31, 2023
(dollars in thousands)	Amortized Cost		%			Fair Value		%			Amortized Cost		%			Fair Value		%
Due in one year or less	$	6,207		1.9	%	$	6,126		2.0	%	$	7,754		2.3	%	$	7,670		2.4	%
Due after one year through five years		33,569		10.3	%		32,728		10.9	%		37,576		11.2	%		36,830		11.8	%
Due after five years through ten years		75,051		23.0	%		71,357		23.7	%		74,512		22.2	%		71,313		22.8	%
Due after ten years		141,885		43.5	%		126,012		41.8	%		144,102		42.9	%		129,902		41.5	%
Securities not due at a single    maturity date-primarily mortgage    and asset-backed securities		69,601		21.3	%		65,301		21.6	%		72,198		21.5	%		67,667		21.6	%
Total fixed maturities	$	326,313		100.0	%	$	301,524		100.0	%	$	336,142		100.1	%	$	313,382		100.0	%

Every quarter, we review all investments where the market value is less than the carrying value to ascertain if the impairment of the security’s value has credit losses. The quarterly review is targeted to focus on securities with larger impairments and that have been in an impaired status for longer periods of time. See “Note 2 – Investments” in the accompanying Interim Condensed Consolidated Financial Statements included in this Form 10-Q.

Net Investment Income

One key measure of our net investment income is the book yield on our holdings of fixed maturities classified as available-for-sale. Fair value of these securities totaled $301.5 million and $313.4 million as of March 31, 2024 and December 31, 2023, respectively. Book yield is the effective interest rate, before investment expenses, that we earn on these investments. Book yield is calculated as the percent of net investment income to the average amortized cost of the underlying investments for the period. For the three months ended March 31, 2024 and 2023, our book yield on fixed maturities available-for-sale was 4.7% and 4.6%, respectively. See “Note 2 – Investments” in the Notes to the Interim Condensed Consolidated Financial Statements included in this Form 10-Q.

Interest Credited to Policyholder Account Balances

Included with the future policy benefits is the liability for contract holder deposits on deferred annuity contracts assumed through two reinsurance agreements effective in 1991 and 1992 and certain other policy funds left on deposit with the Company. The aggregate liability for deposits is as follows:

	March 31, 2024		December 31, 2023		March 31, 2024		March 31, 2023
	Ending Balance		Ending Balance		Year to Date Interest Credited		Year to Date Interest Credited
	(dollars in thousands)
Annuity contract holder deposits—assumed	$	61,416	$	62,665	$	553	$	640
Dividends left on deposit		6,414		6,492		52		41
Other		1,584		1,569		8		9
Total	$	69,414	$	70,726	$	613	$	690

The liability for deferred annuity deposits represents the contract holder account balances. Due to the declines in market interest rates and the book yield on our investment portfolio, we credit interest on all contract holder deposit liabilities at contractual rates that are currently at the minimum rate allowed by the contract or by state regulations.

Our Insurance Segment realizes operating profit from the excess of our book yield realized on fixed maturities that support our contract holder deposits over the amount of interest that we credit to the contract holder. We refer to this operating profit as the “spread” we earn on contract holder deposits. If book yields decline further, the amount of spread between the interest earned and credited will be reduced.

Net Gains (Losses) on Investments

Net gains (losses) on investments are subject to general economic trends and generally correlate with movements in major market indexes. The amounts classified as net realized gains (losses) in our Interim Condensed Consolidated Statements of Operations include amounts realized from sales of investments, mark-to-market adjustments and allowances for credit loss of individual securities related to credit impairment. See “Note 2 – Investments” in the Notes to the Interim Condensed Consolidated Financial Statements included in this Form 10-Q.

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Unrealized Holding Gains (Losses)

The Company records capital appreciation/depreciation on the available-for-sale fixed maturities. At March 31, 2024 and March 31, 2023, accumulated other comprehensive income (loss), from mark-to-market adjustments of our available-for-sale fixed income securities, net of federal income taxes and reserves was ($1.5) million and $6.3 million, respectively. See “Note 9 – Accumulated other comprehensive (loss) income” in the Notes to the Interim Condensed Consolidated Financial Statements included in this Form 10-Q.

At March 31, 2024 our fixed maturity securities had an unrealized loss of $24.7 million compared to an unrealized loss of $22.8 million at December 31, 2023. The Company’s unrealized loss incurred in 2024 was $2.0 million in our fixed maturities portfolio, which has a duration of 7.0 years, convexity of 0.787, and current yield of 5.6%, is primarily accounted for by the increase in the 10-year treasury bill yield for the first three months of 2024 of 32 basis points, partially offset by compressed credit spreads during the same period.

Financial Position

At March 31, 2024, we had total assets of $827.3 million compared to total assets at December 31, 2023 of $822.8 million, an increase of $4.5 million.

Cash and cash equivalents increased $5.7 million, which is attributable to cash inflows from investing activities, offset by cash outflows from operating and financing activities. See Cash Flows section for further discussion on changes in cash. Commission and agent balances increased $4.8 million due to increased commission advanced in the Insurance segment. Other assets increased $1.8 million, primarily due to unsettled trades of fixed maturities. Reinsurance recoverables increased $1.6 million as a result of a $4.5 million increase in ceded policy and claim reserves, offset by a $2.9 million decrease related to the timing of reinsured claim settlements. Deferred policy acquisition costs increased $1.1 million, resulting from deferrals of new business of $4.8 million and amortization of $3.8 million. Deferred income tax assets increased $1.0 million due to a tax credit of $0.7 million and an increase of $0.3 million as a result of a deferred tax on increased unrealized investment gains. The above increases were partially offset by a decrease in the invested asset base of $11.7 million, mainly due to $9.3 million in net sales along with an increase in net unrealized losses of $2.0 million in our fixed maturities portfolio.

At March 31, 2024, we had total liabilities of $724.1 million compared to total liabilities of $712.6 million at December 31, 2023, an increase of $11.5 million. Future policy benefits and claims increased $10.0 million, primarily due to a $10.8 million increase in Core Life and Non Core Life lines, resulting from growth of the underlying blocks of business, partially offset by decreases in Annuities and assumed life of $0.3 million and Closed Block of $0.2 million. Reinsurance liabilities and payables increased $5.8 million, primarily due to timing of reinsurance settlements. Debt increased $2.2 million related to an increase in short-term debt of $3.7 million offset by a decrease in $1.5 million in long-term debt. The above increases were partially offset by decreases in Other liabilities of $4.5 million and a $1.3 million decrease in Policyholder account balances, largely due to annuity payments.

At March 31, 2024, total equity decreased to $103.2 million from $110.2 million at December 31, 2023. This decrease in equity of $7.0 million primarily consists of a net loss of $5.5 million and a decrease of $1.5 million in other comprehensive income.

Liquidity and Capital Resources

Our principal sources of funds are from premium revenues, commission revenues, net investment income and proceeds from the sale or maturity of investments and net borrowings. The Company’s primary uses of funds are for payment of life, annuity and health claim benefits, contract holder withdrawals on assumed annuity contracts, new business acquisition costs for our insurance operations (i.e., commissions, underwriting and issue costs), cost of sales for Agency operations (i.e., agent compensation, purchased lead and lead generation costs), operating costs and expenses and purchases of investments. Our investment portfolio is structured to provide funds periodically over time, through net investment income and maturities, for the payment of policy benefits and contract holder withdrawals.

Under our commission financing arrangement with Hannover Life, which ended on January 1, 2024, Fidelity Life was able to pay level annual commissions instead of first year only commissions to Efinancial for sales of RAPIDecision® Life policies and Hannover Life advanced to Efinancial amounts approximately equal to first year only commissions for sales of those policies. This arrangement reduces Fidelity Life’s surplus strain associated with issuing RAPIDecision® Life business while helping to provide liquidity for Efinancial through the receipt of larger first year only commissions. As of March 31, 2024 and December 31, 2023, we had net advances of $36.6 million and $40.4 million, respectively, under this arrangement.

We are a member of the Federal Home Loan Bank of Chicago (FHLBC). As a member, we are able to borrow on a collateralized basis from the FHLBC. At March 31, 2024 and December 31, 2023, the Company held $270 and $270 of FHLBC common stock, which is included in Other invested assets, respectively. The Company's ability to borrow under this facility is subject to the FHLBC's discretion and requires the availability of qualifying assets. Interest on borrowed funds is charged at variable rates established from time to time by the FHLBC based on the interest rate option selected at the time of the borrowing. The Company borrowed $5.3 million and $21 million in the three months ended March 31, 2024 and the twelve months ended December 31, 2023, respectively.

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Cash Flows

For the three months ended March 31, 2024, the Company had a net increase in cash of $5.7 million compared to a net decrease of $4.5 million for the three months ended March 31, 2023.

The increase in cash flows from operating activities is primarily due to timing related to both reinsurance recoverables settlements and payments of reinsurance liabilities.

Cash flows from investing activities mainly includes our fixed maturities and mortgage loans. Period to period, the cash flows associated with the changes in these portfolios will vary between cash sources and cash uses depending on the need for cash or the excess of cash from operating activities, as well as portfolio trading due to investment market conditions. In the first three months of 2024, cash of $7.5 million was provided by investing activities and includes $9.3 million of investment sales and maturities net of purchases, primarily in the fixed maturities portfolio, partially offset by $1.7 million of capitalized software.

Cash flows used financing activities were $0.4 million which includes $2.0 million in cash withdrawals, net of deposits, by contract holders of annuities that were primarily written in the late 1980s, partially offset by $1.5 million net proceeds comprised of our borrowings from the FHLBC less net payments under from our commission financing program.

The following table summarizes our cash flows for the three months ended March 31, 2024 and 2023:

	Three Months Ended March 31,
	2024			2023
	(dollars in thousands)
Consolidated Summary of Cash Flows
Net cash (used) provided by operating activities	$	(1,450	)	$	(5,354	)
Net cash provided (used) by investing activities		7,494			2,238
Net cash (used) provided by financing activities		(348	)		(1,365	)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	5,696		$	(4,481	)

Recent Accounting Pronouncements

All applicable adopted accounting pronouncements have been reflected in our Interim Condensed Consolidated Financial Statements as of and for the three months ended March 31, 2024.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our principal executive officer and principal financial officer have concluded that, as of such date, our disclosure controls and procedures were effective at a reasonable assurance level.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting (as defined in Rules 13a-15(d) and 15d-15(d) under the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Effectiveness of Controls and Procedures

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control include providing management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of consolidated financial statements in conformity with GAAP.

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Part II. OTHER INFORMATION

Item 1. Legal Proceedings

We are, from time to time, involved in various legal proceedings in the ordinary course of business. These matters often raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities, including but not limited to the underlying facts of each matter; novel legal issues; differences or developments in applicable laws and judicial interpretations; class certification issues; judges reconsidering prior rulings; the length of time before many of these matters might be resolved by settlement, through litigation, or otherwise.

The outcome of these matters may be affected by many factors included but not limited to decisions, verdicts, and settlements in other individual and class action lawsuits that involve the Company, other insurers, or other entities and/or by other legal, governmental, and regulatory actions that involve the Company, other insurers, or other entities.

While it is not possible to forecast the outcome of such legal proceedings, in light of known facts, current issues under consideration via motions to dismiss or otherwise, existing insurance, reinsurance, and established reserves, we believe that there is no individual or class action case pending against the Company that is currently likely to have a material adverse effect on our financial condition or results of operations.

Item 1A. Risk Factors

Not applicable to smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Use of IPO Proceeds

None since initial public offering of August 7, 2019

Item 3. Default upon Senior Securities

None

Item 4. Mine Safety Disclosures

None

Item 5. Other Information

Rule 16a-1(f)

During the three months ended March 31, 2024, none of the officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) or directors of the Company adopted or, terminated or, modified any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement,” as such term is defined in Item 408(a) of Regulation S-K.

Cybersecurity

Vericity maintains a dedicated Cybersecurity Department with a mission to safeguard the confidentiality, integrity, and availability of our information systems, identity systems, and data assets to help our company remain a trusted and secure brand by accelerating risk reduction in a way that lines up with business goals and constraints on budget and resources.

The cybersecurity framework is in alignment with corporate governance programs and regulatory requirements such as the following:

•Enterprise Risk Management led by the Legal Department

•SEC, Sarbanes-Oxley Compliance Program, and IDOI compliance led by Internal Audit

•Privacy and GLBA Compliance led by the Privacy and Compliance Teams.

The Cybersecurity Department uses the Center for Internet Security Controls as a base to safeguard our company and the team focuses on Data Protection and Compliance. The Cybersecurity Department establishes, implements and tests multiple policies, principles, standards and guidelines including, but not limited to, Cybersecurity Incident Response Plan, Disaster Recovery Plan, Access Review, Application Security, Cloud Security, Data Loss Prevention, Email Security, Endpoint Security, Penetration Testing, Privilege Management, Risk Assessments, Risk Identification, Security Awareness Training and Vulnerability Management.

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We also use various tools to help manage our overall program including third party threat detection, email filtering, security training, penetration testing and other tools typically associated with protecting company data.

With a more than 20 years of experience in the information technology field, the team is led by our Director of Cybersecurity who in turn reports directly to Vericity’s Chief Information Officer. Vericity’s Board of Directors oversees cybersecurity risk management and delegates oversight of our information security program to our executive officers and our Chief Information Officer reports quarterly to our Board of Directors. Vericity’s partially outsourced internal audit team reports to Vericity’s Audit Committee on Cybersecurity testing and the program itself.

Like most companies, our systems are exposed to cybersecurity threats on a regular basis and our efforts may be insufficient to prevent or defend against incidents or an attack. We, and certain of our third-party vendors, have experienced attacks and incidents in the past, and there can be no assurance that we, or any vendor, will be successful in preventing future attacks or incidents or detecting and stopping them once they have begun. Through the date hereof, risks from cybersecurity threats, including prior incidents and attacks, have not materially affected, and we do not believe are reasonably likely to materially affect, our business strategy, results of operations, or financial condition. However, we cannot guarantee that we will not be materially affected in the future. Cybersecurity risks rapidly evolve and are complex, so we must continually adapt and enhance our processes and defenses. As we do this, we must make judgments about where to invest resources to most effectively protect ourselves from cybersecurity risks. These are inherently challenging processes, and we can provide no assurance that processes and defenses that we implement will be effective.

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Item 6. Exhibits

31.1	Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
31.2	Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
32.1	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document.
101.SCH	Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents.
101.CAL	Inline XBRL Taxonomy Extension Calculation Document.
101.DEF	Inline XBRL Taxonomy Extension Definition Document.
101.LAB	Inline XBRL Taxonomy Extension Label Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Document.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Vericity, Inc.
Date: May 15, 2024	By:	/s/ Chris S. Kim
		Chris S. Kim
		Executive Vice President, Chief Financial Officer and Treasurer

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EX-31.1

Exhibit 31.1

I, James Hohmann, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Vericity Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ James E. Hohmann

James E. Hohmann

Chief Executive Officer and President, Vericity, Inc.

EX-31.2

Exhibit 31.2

I, Chris Kim, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Vericity Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 15, 2024

/s/ Chris S. Kim

Chris S. Kim

Executive Vice President, Chief Financial Officer and Treasurer, Vericity, Inc.

EX-32.1

Exhibit 32.1

Vericity, Inc.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned officer of Vericity, Inc. (“Vericity”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Vericity for the period ended March 31, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Vericity.

Dated: May 15, 2024	By:	/s/ James E. Hohmann
		James E. Hohmann
		Chief Executive Officer and President, Vericity, Inc.

EX-32.2

Exhibit 32.2

Vericity, Inc.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

The undersigned officer of Vericity, Inc. (“Vericity”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Vericity for the period ended March 31, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Vericity.

Dated: May 15, 2024	By:	/s/ Chris S. Kim
		Chris S. Kim
		Executive Vice President, Chief Financial Officer and Treasurer, Vericity, Inc.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 01, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Registrant Name	VERICITY, INC.
Trading Symbol	VERY
Entity Central Index Key	0001575434
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		14,875,000
Entity Current Reporting Status	Yes
Entity File Number	001-38945
Entity Tax Identification Number	46-2348863
Entity Address, Address Line One	1350 E Touhy Avenue
Entity Address, Address Line Two	Suite 205W
Entity Address, City or Town	Des Plaines
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60018
City Area Code	312
Local Phone Number	288-0073
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, Par Value $0.001 per share
Security Exchange Name	NASDAQ
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false

XML

Interim Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments:
Fixed maturities - available-for-sale - at fair value (amortized cost; $326,313 and $336,142, net of allowances for credit losses of $28 and $28)	$ 301,524	$ 313,382
Short-term investments - at fair value (amortized cost, $793 and $0)	830
Mortgage loans (net of allowances for credit losses of $566 and $573)	39,603	40,534
Policyholder loans	7,216	7,149
Other invested assets	2,603	2,364
Total investments	351,776	363,429
Cash, cash equivalents and restricted cash	13,740	8,044
Accrued investment income	3,727	3,630
Reinsurance recoverables (net of allowances for credit losses of $167 and $167)	240,224	238,598
Deferred policy acquisition costs	89,186	88,076
Commissions and agent balances (net of allowances for credit losses of $328 and $336)	58,291	53,494
Intangible assets	1,635	1,635
Deferred income tax assets, net	33,396	32,396
Other assets	35,359	33,516
Total assets	827,334	822,818
Liabilities
Future policy benefits and claims	512,494	502,464
Policyholder account balances	69,414	70,726
Other policyholder liabilities	40,580	41,450
Policy dividend obligations	9,783	9,636
Reinsurance liabilities and payables	12,032	6,262
Long-term debt	38,283	39,761
Short-term debt	12,976	9,249
Other liabilities	28,564	33,057
Total liabilities	724,126	712,605
Commitments and Contingencies (Note 6)
Shareholders' Equity
Common stock, $.001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding	15	15
Additional paid-in capital	39,840	39,840
Retained earnings	86,054	91,580
Accumulated other comprehensive (loss) income	(22,701)	(21,222)
Total shareholders' equity	103,208	110,213
Total liabilities and shareholders' equity	$ 827,334	$ 822,818

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Interim Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Fixed maturities - available-for-sale -amortized cost	$ 326,313	$ 336,142
Fixed maturities - available-for-sale, allowances for credit losses	28	28
Short-term investments - amortized cost	793	0
Mortgage loans, valuation allowances for credit losses	566	573
Reinsurance recoverable, allowances for credit losses	167	167
Commissions and agent balances, allowances for credit losses	$ 328	$ 336
Common stock, par value	$ 0.001	$ 0.001
Common stock, authorized shares	30,000,000	30,000,000
Common stock, shares issued	14,875,000	14,875,000
Common stock, shares outstanding	14,875,000	14,875,000

XML

Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues
Net insurance premiums	$ 22,557	$ 24,338
Net investment income	4,135	4,347
Net (losses) gains on investments	(380)	(539)
Earned commissions	16,798	14,749
Insurance lead sales	1,404	1,222
Other income	979	505
Total revenues	45,493	44,622
Benefits and expenses
Life, annuity, and health claim benefits	17,875	16,371
Interest credited to policyholder account balances	613	689
Operating costs and expenses	29,468	25,769
Amortization of deferred policy acquisition costs	3,749	3,648
Total benefits and expenses	51,705	46,477
Income (loss) before income tax	(6,212)	(1,855)
Income tax expense (benefit)	(686)	26
Net (loss) income	$ (5,526)	$ (1,881)
Weighted average shares outstanding, basic	14,875,000	14,875,000
Weighted average shares outstanding,diluted	14,875,000	14,875,000
Basic earnings per share	$ (0.37)	$ (0.13)
Diluted earnings per share	$ (0.37)	$ (0.13)

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Interim Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ (5,526)	$ (1,881)
Other comprehensive (loss) income, net of tax:
Change in net unrealized (losses) gains	(1,479)	6,313
Total other comprehensive income (loss)	(1,479)	6,313
Total comprehensive (loss) income	$ (7,005)	$ 4,432

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Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Cumulative Effect Adjustment from Changes in Accounting Guidance, Net of Tax	Common Stock	Additional Paid-in Capital	Retained Earnings	Retained Earnings Cumulative Effect Adjustment from Changes in Accounting Guidance, Net of Tax	Retained Earnings Balance After Adjustments	Accumulated Other Comprehensive Income (loss)
Balance – beginning of period at Dec. 31, 2022			$ 15	$ 39,840	$ 101,660		$ 101,473	$ (30,172)
Net Income (Loss)	$ (1,881)				(1,881)
Other comprehensive (loss) income								6,313
Balance – end of period at Mar. 31, 2023	115,588		15	39,840	99,592			(23,859)
Balance – beginning of period at Dec. 31, 2023	110,213		15	39,840	91,580	$ (187)	$ 91,580	(21,222)
Net Income (Loss)	(5,526)				(5,526)
Other comprehensive (loss) income								(1,479)
Balance – end of period at Mar. 31, 2024	$ 103,208	$ 187	$ 15	$ 39,840	$ 86,054			$ (22,701)

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Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net (loss) income	$ (5,526)	$ (1,881)
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities:
Depreciation and amortization and other non-cash items	1,661	1,221
Interest credited to policyholder account balances	613	689
Deferred income tax	(686)	(999)
Net investment losses (gains)	380	539
Interest expense	719	492
Change in:
Accrued investment income	(97)	(326)
Reinsurance recoverables, net	(1,626)	(9,651)
Deferred policy acquisition costs	(1,110)	1,515
Commissions and agent balances	(4,797)	(8,734)
Other assets	(4,625)	(2,134)
Insurance liabilities	9,464	9,283
Other liabilities	4,180	4,632
Net cash (used) provided by operating activities	(1,450)	(5,354)
Sales, maturities and repayments of:
Fixed maturities	21,951	22,384
Mortgage loans	938	1,709
Purchases of:
Fixed maturities	(12,664)	(20,273)
Short-term investments	(792)
Mortgage loans	0	(144)
Other invested assets	(127)	(164)
Change in policyholder loans, net	(67)	(154)
Other, net	(1,745)	(1,120)
Net cash provided (used) by investing activities	7,494	2,238
Cash flows from financing activities
Debt issued	4,945	12,876
Debt repaid	(3,415)	(10,883)
Deposits to policyholder account balances	141	210
Withdrawals from policyholder account balances	(2,019)	(3,568)
Net cash (used) provided by financing activities	(348)	(1,365)
Net increase (decrease) in cash, cash equivalents and restricted cash	5,696	(4,481)
Cash, cash equivalents and restricted cash – beginning of period	8,044	9,776
Cash, cash equivalents and restricted cash – end of period	$ 13,740	$ 5,295

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (5,526)	$ (1,881)

XML

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 – Summary of Significant Accounting Policies

Description of Business

Vericity, Inc. (the Company) is a Delaware corporation organized to be the stock holding company for Members Holding Company (Members) and its subsidiaries. On August 7, 2019, the Company completed the initial public offering of 14,875,000 shares of its common stock at a price of $10.00 per share (the IPO). The IPO was conducted in connection with the conversion of Members Mutual Holding Company from mutual to stock form and the acquisition by the Company of all of the capital stock of Members following its conversion to stock form after its plan of conversion and amended and restated articles of incorporation were approved at a special meeting of eligible members on August 6, 2019 (the Conversion). As a result of the Conversion, the Company became the holding company for converted Members Mutual Holding Company and its indirect subsidiaries, including Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial).

On October 3, 2023, the Company, announced that it entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, iA American Holdings Inc. (“iA” or “Parent”), Long Grove Acquisition Corp., a wholly owned subsidiary of Parent (“Merger Sub”), and, solely for purposes of Section 6.03 and Article IX thereof, iA Financial Corporation, Inc. (“Guarantor”).

On the terms and subject to the conditions of the Merger Agreement, at the closing, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving entity, which will become a wholly-owned subsidiary of Parent. The time that the Merger becomes effective is referred to as the “Effective Time.” The Merger was unanimously approved by the Company’s board of directors.

Following execution of the Merger Agreement, Apex Holdco L.P. (the “Consenting Stockholder” or “Apex”) executed and delivered to the Company a written consent (the “Stockholder Written Consent”), adopting the Merger Agreement and the transactions contemplated thereby, including the Merger.

As a result of the execution and delivery of the Stockholder Written Consent, the holders of at least a majority of the outstanding shares of Common Stock have adopted the Merger Agreement. No further approval of the stockholders of the Company is required to adopt the Merger Agreement.

As a result of the Merger, each share of Common Stock outstanding immediately prior to the Effective Time (subject to certain exceptions, including shares of Common Stock owned by stockholders of the Company who have not voted in favor of the adoption of the Merger Agreement and have properly exercised appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will, at the Effective Time, automatically be converted into the right to receive $11.43 in cash, without interest and subject to applicable withholding taxes (the “Merger Consideration”). The aggregate equity value of the Common Stock acquired by Parent will be approximately $170 million.

If the Merger is consummated, the Company’s Common Stock will be delisted from The Nasdaq Capital Market and deregistered under the Securities Exchange Act of 1934, as amended. The completion of the Merger is subject to satisfaction or waiver of certain closing conditions, including: (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), and receipt of certain regulatory approvals; (ii) there being no law or injunction prohibiting consummation of the Merger; (iii) subject to specified materiality standards, the accuracy of the representations and warranties of the other party; and (iv) compliance by the other party in all material respects with its covenants. Parent’s and Merger Sub’s obligations are also conditioned upon the absence of a material adverse effect on the Company and the absence of any burdensome condition (as defined in the Merger Agreement) imposed by any regulators as part of the regulatory approval process.

On October 3, 2023, the Company issued a Form 8-K and press release announcing the execution of the Merger Agreement and the Form 8-K is incorporated into this filing by reference. The Merger is expected to close in Q2, 2024.

The Company operates as a holding company and currently has no other business operations. Fidelity Life is an Illinois‑domiciled life insurance company that was founded in 1896. Fidelity Life markets life insurance products through independent and affiliated distributors and is licensed in the District of Columbia and all states, except New York and Wyoming. Efinancial markets life and other products for non‑affiliated insurance companies and sells life products for Fidelity Life.

The accompanying interim condensed consolidated financial statements present the accounts of the Company and subsidiaries for the three months ended March 31, 2024 and March 31, 2023 and at March 31, 2024 and December 31, 2023. These interim condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report in the Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

Basis of Presentation

These interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The unaudited interim condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this report, as is permitted by such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2023, and notes thereto, included in the Form 10-K.

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The more significant estimates employed in the preparation of the interim condensed consolidated financial statements include the determination of the valuation of investments in fixed maturity, investment impairments, the valuation of deferred tax assets, future policy benefits and other policyholder liabilities.

Accounting Standards Adopted and Pending

There were no significant accounting changes in 2024 that had a material impact on the Company's GAAP-basis financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance requires that Other-Than-Temporary Impairment (OTTI) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through net gains (losses) on investments. The guidance also requires enhanced disclosures. In March 2022, the FASB issued ASU 2022-02 – Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosure. This ASU was issued to eliminate the troubled debt restructuring recognition and measurement guidance for creditors that have adopted the current expected credit loss guidance while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. The Company has assessed the impact of ASU 2016-13 and has established an additional for credit losses on our mortgage portfolio of $237. The tax effected amount of $187 is reflected as a beginning of year equity as a Cumulative effect adjustment from changes in accounting guidance, net of tax. The Company has also assessed fixed maturities - available-for-sale, reinsurance recoverables and commissions and agent balances and determined no additional allowance for credit losses is needed. We also adopted the required disclosures within Note 2 Investments, Note 4 Reinsurance, Note 9 Accumulated Other Comprehensive Income and Note 10 Business Segments. Due to the adoption of the measurement of credit losses on financial instruments accounting standard, prior change in valuation allowance is now presented as a change in allowance for credit losses

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Investments

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Investments

Note 2 – Investments

The Company continuously monitors its investment strategies and individual holdings with consideration of current and projected market conditions, the composition of the Company’s liabilities, projected liquidity and capital investment needs, and compliance with investment policies and state regulatory guidelines.

Fixed Maturities

The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and net of allowances for credit losses are included in accumulated other comprehensive income (AOCI) of fixed maturities available-for-sale are as follows:

	March 31, 2024
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,171	$	257	$	(572	)	$	9,856
U.S. agency mortgage-backed		7,018		37		(595	)		6,460
State and political subdivisions		80,891		359		(9,692	)		71,558
Corporate and miscellaneous		165,521		1,796		(12,641	)		154,676
Foreign government		130		3		—			133
Residential mortgage-backed		8,194		80		(535	)		7,739
Commercial mortgage-backed		22,101		11		(1,512	)		20,600
Asset-backed		32,287		62		(1,847	)		30,502
Total fixed maturities	$	326,313	$	2,605	$	(27,394	)	$	301,524

	December 31, 2023
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,188	$	365	$	(488	)	$	10,065
U.S. agency mortgage-backed		7,173		61		(516	)		6,718
State and political subdivisions		79,362		347		(9,490	)		70,219
Corporate and miscellaneous		174,263		2,733		(11,700	)		165,296
Foreign government		130		5		—			135
Residential mortgage-backed		7,302		96		(523	)		6,875
Commercial mortgage-backed		22,043		23		(1,678	)		20,388
Asset-backed		35,681		86		(2,081	)		33,686
Total fixed maturities	$	336,142	$	3,716	$	(26,476	)	$	313,382

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Maturities of mortgage-backed and asset-backed securities may be substantially shorter than their contractual maturity because they may require monthly principal installments and such loans may prepay principal. The amortized cost and fair value of fixed maturities available-for-sale by contractual maturity, are presented in the following table:

	March 31, 2024
	Amortized Cost		Fair Value
Due in one year or less	$	6,207	$	6,126
Due after one year through five years		33,569		32,728
Due after five years through ten years		75,051		71,357
Due after ten years		141,885		126,012
Securities not due at a single maturity date — primarily mortgage and asset-backed		69,601		65,301
Total fixed maturities	$	326,313	$	301,524

Fixed maturities with a carrying value of $2,610 and $2,689 were on deposit with governmental authorities, as required by law at March 31, 2024 and December 31, 2023, respectively.

The Company’s fixed maturities portfolio was primarily composed of investment grade securities, defined as a security having a rating of Aaa, Aa, A, or Baa from Moody’s, AAA, AA, A, or BBB from Standard & Poor’s, or National Association of Insurance Commissioners (NAIC) rating of NAIC 1 or NAIC 2. Investment grade securities comprised 96.2% and 96.0% of the Company’s total fixed maturities portfolio at March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, the Company had commitments to make investments in available-for-sale securities in the amount of $411 and $0, respectively.

Mortgage Loans

The Company makes investments in commercial mortgage loans. The Company, along with other investors, owns a pro rata share of each loan. The Company participates in 33 such investment instruments with ownership shares ranging from 0.6% to 30.0% of the trust at March 31, 2024. The Company owns a share of 307 mortgage loans with an average loan balance of $130 and a maximum exposure related to any single loan of $600. Mortgage loan holdings are diversified by geography and property type as follows:

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
Property Type:
Retail	$	12,367			30.7	%	$	12,812			31.2	%
Office		10,530			26.2	%		10,635			25.9	%
Industrial		7,386			18.4	%		7,476			18.2	%
Mixed use		4,654			11.6	%		4,798			11.7	%
Apartments		1,960			4.9	%		2,077			5.0	%
Medical office		2,393			6.0	%		2,423			5.9	%
Other		879			2.2	%		886			2.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
U.S. Region:
West South Central	$	9,935			24.7	%	$	10,038			24.3	%
East North Central		11,588			28.8	%		12,184			29.6	%
South Atlantic		7,938			19.8	%		8,046			19.6	%
West North Central		2,300			5.7	%		2,328			5.7	%
Mountain		2,524			6.3	%		2,560			6.2	%
Middle Atlantic		1,966			4.9	%		1,986			4.8	%
East South Central		3,480			8.7	%		3,519			8.7	%
Pacific		438			1.1	%		446			1.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

During the three months ended March 31, 2024 and March 31, 2023, $0 and $144 of new mortgage loans were purchased, respectively, which did not include second lien mortgage loans. There were no taxes, assessments, or any amounts advanced that were not included in the mortgage loan balances at March 31, 2024 and December 31, 2023. At March 31, 2024 and December 31, 2023, the Company had no mortgage loans that were in a restructured status, respectively. There were no impairments for mortgage loans during the three months ended March 31, 2024 and December 31, 2023.

The changes in the allowances for credit losses for commercial mortgage loans were as follows:

	Three Months Ended March 31, 2024			Year Ended December 31, 2023
Beginning balance	$	573		$	83
Net increase in allowances for credit losses related to change in accounting standards		—			237
Net (decrease) increase in allowances for credit losses		(7	)		253
Ending balance	$	566		$	573

At March 31, 2024 and December 31, 2023, the Company had no mortgage loans that were on non-accrual status.

At March 31, 2024 and December 31, 2023, the Company had commitments to make investments in mortgage loans in the amount of $3,828 and $3,734, respectively.

Net Investment Income

The sources of net investment income are as follows:

	Three Months Ended March 31,
	2024			2023
Income from:
Fixed maturities	$	3,875		$	3,868
Policyholder loans		85			97
Mortgage loans		479			726
Cash, cash equivalents and restricted cash		44			31
Gross investment income		4,483			4,722
Investment expenses		(348	)		(375	)
Net investment income	$	4,135		$	4,347

Investment expenses include investment management fees, some of which include incentives based on market performance, custodial fees and internal costs for investment-related activities.

Net Investment (Losses) Gains

The sources of net investment gains (losses) are as follows:

	Three Months Ended March 31,
	2024			2023
Investment (losses) gains from sales:
Fixed maturities	$	(500	)	$	36
Mortgage loans		—			—
Gains and losses from sales		(500	)		36
Valuation change of other invested assets - (decline) appreciation:		113			(545	)
Change in allowance for credit losses		7			(30	)
Total net gains (losses) on investments	$	(380	)	$	(539	)

Change in Allowance for Credit Losses

The Company regularly reviews its fixed income portfolio to identify and evaluate whether a security may require a credit loss allowance. For each fixed income security in an unrealized loss position, the Company assesses whether management with the appropriate authority has made the decision to sell or whether it is more likely than not the Company will be required to sell the security before recovery of the amortized cost basis for reasons such as liquidity, contractual or regulatory purposes. If a security meets either of these criteria, any existing credit loss allowance would be written-off against the amortized cost basis of the asset along with any remaining unrealized losses, with incremental losses recorded in earnings. For all other securities in an unrealized loss position in which the Company does not expect to recover the entire amortized cost basis, the security is deemed to have a credit loss.

Significant judgment is required in the determination of whether a credit loss has occurred for a security. The Company has developed a consistent methodology and has identified significant inputs for determining whether a credit loss has occurred. Some of the factors considered in evaluating whether a decline in fair value is a credit loss are the financial condition and prospects of the issuer, payment status, the probability of collecting scheduled principal and interest payments when due, credit ratings of the securities, and the duration and severity of the decline.

The credit loss component of fixed maturity impairment is calculated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective rate implicit to the security at the date of purchase or prior impairment. The methodology and assumptions for estimating the cash flows vary depending on the type of security. For mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral characteristics, expectations of delinquency and default rates, and structural support, including subordination and guarantees. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss exists. The non-credit component, determined as the difference between the adjusted amortized cost basis and fair value, is recognized in other comprehensive (loss) income. The credit loss component of a fixed maturity security impairment is calculated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective rate implicit to the security at the date of purchase or prior impairment. The methodology and assumptions for estimating the cash flows vary depending on the type of security. For mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral characteristics, expectations of delinquency and default rates, and structural support, including subordination and guarantees. If the Company does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the fixed maturity security, a credit loss allowance is recorded in earnings for the shortfall in expected cash flows; however, the amortized cost, net of the credit loss allowance, may not be lower than the fair value of the security. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss exists. The non-credit component, determined as the difference between the adjusted amortized cost basis and fair value, is recognized in other comprehensive (loss) income.

The measurement of credit losses for available-for-sale fixed income securities measured at fair value is not affected except that credit losses recognized are limited to the amount by which fair value is below amortized cost and the credit loss adjustment is recognized through an allowance which may change over time but once recorded cannot subsequently be reduced to an amount below zero.

A roll-forward of the cumulative credit losses on fixed maturities are as follows:

	March 31,		December 31,
	2024		2023
Beginning allowance for credit loss balance	$	28	$	-
Increase in credit loss allowance		—		28
Reduction of credit losses allowances related to securities sold during period		—		—
Ending allowance for credit loss balance	$	28	$	28

Unrealized Losses for Fixed Maturities

The Company’s fair value and gross unrealized losses for fixed maturities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows:

	12 months or less					Longer than 12 months					Total
March 31, 2024	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. government and agencies	$	994	$	(6	)	$	2,652	$	(566	)	$	3,646	$	(572	)
U.S. agency mortgage-backed		452		(4	)		4,663		(591	)		5,115		(595	)
State and political subdivisions		9,992		(258	)		46,997		(9,434	)		56,989		(9,692	)
Corporate and miscellaneous		27,711		(2,044	)		60,852		(10,597	)		88,563		(12,641	)
Residential mortgage-backed		849		(12	)		3,135		(523	)		3,984		(535	)
Commercial mortgage-backed		1,246		(25	)		17,878		(1,487	)		19,124		(1,512	)
Asset-backed		4,286		(224	)		20,076		(1,623	)		24,362		(1,847	)
Total fixed maturities	$	45,530	$	(2,573	)	$	156,253	$	(24,821	)	$	201,783	$	(27,394	)

	12 months or less					Longer than 12 months					Total
December 31, 2023	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. agency mortgage-backed	$	499	$	(1	)	$	2,732	$	(488	)	$	3,231	$	(489	)
U.S. agency mortgage-backed		94		—			4,879		(515	)		4,973		(515	)
State and political subdivisions		8,151		(176	)		45,628		(9,314	)		53,779		(9,490	)
Corporate and miscellaneous		22,527		(1,871	)		66,482		(9,829	)		89,009		(11,700	)
Residential mortgage-backed		269		(10	)		3,029		(513	)		3,298		(523	)
Commercial mortgage-backed		1,430		(53	)		17,582		(1,625	)		19,012		(1,678	)
Asset-backed		3,551		(190	)		26,644		(1,891	)		30,195		(2,081	)
Total fixed maturities	$	36,521	$	(2,301	)	$	166,976	$	(24,175	)	$	203,497	$	(26,476	)

The indicated gross unrealized losses in all fixed maturity categories increased to $27,394 from $26,476 at March 31, 2024 and December 31, 2023, respectively. Based on the Company’s current evaluation of its fixed maturities in an unrealized loss position, in accordance with our impairment policy and the Company’s current intentions to hold these securities, the Company concluded that these securities do not have credit losses.

Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include fixed maturities and number of securities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at March 31, 2024.

	Unrealized Losses 12 months or less
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(6	)	$	(6	)	$	—		$	—			100	%
U.S. agency mortgage-backed		(4	)		(4	)		—			—			100	%
State and political subdivisions		(258	)		(258	)		—			—			100	%
Corporate and miscellaneous		(2,044	)		(623	)		(771	)		(650	)		87	%
Residential mortgage-backed		(12	)		(8	)		—			(4	)		58	%
Commercial mortgage-backed		(25	)		(25	)		—			—			100	%
Asset-backed		(224	)		(128	)		(95	)		(1	)		100	%
Gross unrealized losses	$	(2,573	)	$	(1,052	)	$	(866	)	$	(655	)
Total number of fixed maturities	188				158			21			9

	Unrealized Losses greater than 12 months
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(566	)	$	(72	)	$	—		$	(494	)		100	%
U.S. agency mortgage-backed		(591	)		(174	)		(417	)		—			100	%
State and political subdivisions		(9,434	)		(623	)		(3,636	)		(5,175	)		100	%
Corporate and miscellaneous		(10,597	)		(884	)		(4,678	)		(5,035	)		85	%
Residential mortgage-backed		(523	)		(59	)		(338	)		(126	)		79	%
Commercial mortgage-backed		(1,487	)		(915	)		(565	)		(7	)		100	%
Asset-backed		(1,623	)		(703	)		(900	)		(20	)		97	%
Gross unrealized losses	$	(24,821	)	$	(3,430	)	$	(10,534	)	$	(10,857	)
Total number of fixed maturities		574			206			235			133

	Investment Grade		Below Investment Grade		Total
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net (1) (2)	$	15,466	$	416	$	15,882
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net (3) (4)		11,064		448		11,512
Total unrealized losses	$	26,530	$	864	$	27,394

(1) Below investment grade fixed income securities include $108 that have been in an unrealized loss position for less than twelve months.

(2) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

(3) Below investment grade fixed income securities include $756 that have been in an unrealized loss position for a period of twelve or more consecutive months.

(4) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

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Policy Liabilities

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Policy Liabilities

Note 3 – Policy Liabilities

Future Policy Benefits

Future policy benefits represent the reserve for direct and assumed traditional life insurance policies and annuities in payout status.

The annuities in payout status are certain structured settlement contracts. The policy liability for structured settlement contracts of $12,400 and $12,665 at March 31, 2024 and December 31, 2023, respectively, is computed as the present value of contractually specified future benefits. The amounts included in the policy liability for structured settlements that are life contingent at March 31, 2024 and December 31, 2023, is $9,850 and $10,014, respectively.

To the extent that unrealized gains on fixed maturities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded. A liability of $429 and $629 is included as part of the liability for structured settlements with respect to this deficiency at March 31, 2024 and December 31, 2023, respectively. The offset to this liability is recorded as a reduction of the unrealized capital gains included in AOCI.

Participating life insurance in-force was 2.3% and 2.3% of the face value of total life insurance at March 31, 2024 and December 31, 2023, respectively.

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Reinsurance

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Reinsurance

Note 4 – Reinsurance

The Company uses reinsurance to mitigate exposure to potential losses, provide additional capacity for growth, and provide greater diversity of business. For ceded reinsurance, the Company remains liable to the extent that reinsuring companies may not be able to meet their obligations under the reinsurance agreements. To manage the risk from failure of a reinsurer to meet its obligations, the Company periodically evaluates the financial condition of all of its reinsurers. The reinsurance recoverable balances are stated net of allowances for credit losses. We have recorded claim amounts anticipated to be uncollectible of $0.2 million as of March 31, 2024 and $0.2 million as of December 31, 2023.

On July 18, 2023, the Liquidation Order of Scottish Re was approved by the Delaware Court specifying the effective date of the liquidation as September 30, 2023. The Liquidation Order specifies that all reinsurance agreements of Scottish Re are cancelled effective September 30, 2023. Accordingly, ceded future policy benefits of $657 were taken down as of the effective date of the order. Amounts recoverable on paid claims of $1.4 million and $1.4 million as of March 31, 2024 and December 31, 2023, respectively have been evaluated for any further credit losses and all amounts recorded are expected to be collectible.

Reinsurance recoverables are as follows:

	March 31,		December 31,
	2024		2023
Ceded future policy benefits	$	205,552	$	198,973
Claims and other amounts recoverables		34,672		39,625
Ending balance	$	240,224	$	238,598

The reconciliation of direct premiums to net premiums is as follows:

	Three Months Ended March 31,
	2024			2023
Direct premiums	$	47,504		$	44,356
Assumed premiums		8,158			9,913
Ceded premiums		(33,105	)		(29,931	)
Net insurance premiums	$	22,557		$	24,338

The reconciliation of direct, assumed and ceded amounts for life, annuity, and health claim benefits is as follows:

	Three Months Ended March 31,
	2024			2023
Direct	$	35,751		$	34,056
Assumed		4,145			4,161
Ceded		(22,021	)		(21,846	)
Life, annuity, and health claim benefits	$	17,875		$	16,371

Net policy charges on universal life products were $47 and $47 for the three months ended March 31, 2024 and 2023, respectively and are included in other income.

At March 31, 2024 and December 31, 2023, reserves related to fixed‑rate annuity deposits assumed from a former affiliate company amounted to approximately $61,416 and $62,665, respectively, and are included with policyholder account balances in the Interim Condensed Consolidated Balance Sheets.

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Closed Block

3 Months Ended

Mar. 31, 2024

Closed Block Disclosure [Abstract]

Closed Block

Note 5 – Closed Block

The Closed Block was formed at October 1, 2006 and contains all participating policies issued or assumed by Fidelity Life. The assets and future net cash flows of the Closed Block are available only for purposes of paying benefits, expenses and dividends of the Closed Block and are not available to the Company, except for an amount of additional funding that was established at the inception of the Closed Block. The additional funding was designed to protect the block against future experience, and if the funding is not required for that purpose, is subject to reversion to the Company in the future. Any reversion of Closed Block assets to the Company must be approved by the Illinois Department of Insurance (IDOI).

In October 2011, the IDOI approved a reversion of a portion of the initial funding that the Company had determined was not required to fund the Closed Block. The carrying value of the assets transferred from the Closed Block on October 31, 2011, the date of transfer, was $4,397.

The assets and liabilities within the Closed Block are included in the Company’s condensed consolidated financial statements on the same basis as other accounts of the Company. The maximum future earnings and accumulated other comprehensive income to be recognized from Closed Block assets and liabilities represent the estimated future Closed Block profits that will accrue to the Company and is calculated as the excess of Closed Block assets over Closed Block liabilities. Included in Closed Block assets at March 31, 2024 and December 31, 2023 is $11,236 and $11,143 of additional Closed Block funding, plus accrued interest, that is eligible for reversion to the Company if not needed to fund Closed Block experience, respectively.

The Closed Block was funded based on a model developed to forecast the future cash flows of the Closed Block, which is referred to as the actuarial calculation. The actuarial calculation projected the anticipated future cash flows of the Closed Block as established at the initial funding. We compare the actual results of the Closed Block to expected results from the actuarial calculation as part of the annual assessment of the current level of policyholder dividends. The assessment of policyholder dividends includes projections of future experience of the Closed Block. The review of Closed Block experience also includes consideration of whether a policy dividend obligation should be recorded to reflect favorable Closed Block experience that has not yet been reflected in the dividend scales. At March 31, 2024 and December 31, 2023, the Company recognized a policyholder dividend obligation of $9,783 and $9,636, respectively, resulting from the excess of actual cumulative earnings over the expected cumulative earnings and from accumulated net unrealized investment gains (losses) that have arisen subsequent to the establishment of the Closed Block.

Information regarding the Closed Block liabilities (assets) designated to the Closed Block is as follows:

	March 31,			December 31,
Closed Block Liabilities	2024			2023
Future policy benefits and claims	$	28,989		$	29,144
Policyholder account balances		6,414			6,492
Other policyholder liabilities		2,489			5,207
Policyholder dividend obligations		9,783			9,636
Other liabilities		374			2,068
Total Closed Block liabilities		48,049			52,547
Assets Designated to the Closed Block
Investments:
Fixed maturities - available-for-sale (amortized cost $42,414 and    $42,506, respectively)		39,068			39,678
Policyholder loans		1,198			1,234
Total investments		40,266			40,912
Cash and Cash Equivalents		—			—
Premiums due and uncollected		164			81
Accrued investment income		528			484
Reinsurance recoverables		10,313			14,739
Deferred income tax assets, net		4,290			4,100
Total assets designated to the Closed Block		55,561			60,316
Excess of Closed Block assets over liabilities		7,512			7,769
Amounts included in accumulated other comprehensive income:
Unrealized investment loss (gains), net of income tax		(2,643	)		(2,234	)
Total amounts included in accumulated other comprehensive income		(2,643	)		(2,234	)
Maximum future earnings and accumulated other comprehensive income to    be recognized from Closed Block assets and liabilities (includes excess    assets of $11,236 and $11,143, respectively)	$	(10,155	)	$	(10,003	)

	March 31,		December 31,
Policyholder Dividend Obligations	2024		2023
Beginning balance	$	9,636	$	9,515
Impact from earnings allocable to policyholder dividend obligations		147		121
Change in net unrealized investment gains (losses) allocated to policyholder    dividend obligations		—		—
Ending balance	$	9,783	$	9,636

Information regarding the Closed Block revenues and expenses is as follows:

	Three Months Ended March 31,
	2024			2023
Revenues
Net insurance premiums	$	864		$	1,377
Net investment income		480			438
Net Realized Investment Gains (Losses)		1			1
Total revenues		1,345			1,816
Benefits and expenses
Life and annuity benefits - including policyholder dividends    of $339 and $325, respectively		1,150			1,682
Interest credited to policyholder account balances		52			41
Operating costs and expenses		(48	)		170
Total expenses		1,154			1,893
Revenues, net of expenses before provision for income tax    expense (benefit)		192			(77	)
Income tax expense (benefit)		40			(16	)
Revenues, net of expenses and provision for income tax    expense (benefit)	$	152		$	(61	)

The Company charges the Closed Block with federal income taxes and state and local premium taxes, policy maintenance costs and investment management expenses relating to the Closed Block as provided in the Closed Block Memorandum.

The following table presents the amortized cost and fair value of the Closed Block fixed maturities portfolio by contractual maturity at March 31, 2024. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:

	Amortized Cost		Fair Value
Due in one year or less	$	3,704	$	3,647
Due after one year through five years		3,922		3,913
Due after five years through ten years		6,825		6,473
Due after ten years		24,865		22,018
Securities not due at a single maturity date — primarily mortgage and asset-    backed		3,098		3,017
Total fixed maturities	$	42,414	$	39,068

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 6 – Commitments and Contingencies

Litigation

The Company is subject to legal and regulatory actions in the course of our business. Management does not believe such litigation will have a material impact on the Company’s interim condensed consolidated financial statements. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible but not probable or, is probable but not reasonably able to be estimated, no accrual is established, but the matter, if material, is disclosed. The Company is not aware of any material legal or regulatory matters threatened or pending against the Company.

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Assets and Liabilities Measured at Fair Value

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

Note 7 – Assets and Liabilities Measured at Fair Value

Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company attempts to establish fair value as an exit price consistent with transactions taking place under normal market conventions. The Company utilizes market observable information to the extent possible and seeks to obtain quoted market prices for all securities. If quoted market prices in active markets are not available, the Company uses a number of methodologies to establish fair value estimates including discounted cash flow models, prices from recently executed transactions of similar securities, or broker/dealer quotes.

Fair values for the Company’s fixed maturity and equity securities are determined by management, utilizing prices obtained from third-party pricing services. Management reviews on an ongoing basis the reasonableness of the methodologies used by the pricing services to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. The main procedure the Company employs in fulfillment of this objective includes back-testing transactions, where past fair value estimates are compared to actual transactions executed in the market on similar dates.

The Company’s assets and liabilities have been classified into a three-level hierarchy based on the priority of the inputs to the respective valuation technique. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Level 1 and Level 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:

Level 1 – Unadjusted quoted prices for identical assets in active markets the Company can access. Level 1 assets include securities that are traded in an active exchange market.

Level 2 – This level includes fixed maturities priced principally by independent pricing services using observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments on inactive markets; and model-derived valuations for which all significant inputs are observable market data. Level 2 instruments include most corporate debt securities and U.S. government and agency mortgage-backed securities that are valued by models using inputs that are derived principally from or corroborated by observable market data.

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Level 3 instruments include less liquid assets for which significant inputs are unobservable in the market, such as structured securities with complex features that require significant management assumptions or estimation in the fair value measurement.

This hierarchy requires the use of observable market data when available.

Certain assets and liabilities are not carried at fair value on a recurring basis, including investments such as mortgage loans, intangible assets, future policy benefits excluding term life reserves and policyholder account balances. Accordingly, such items are only included in the fair value hierarchy disclosure when the items are subject to re-measurement at fair value after initial recognition (for example, when there is evidence of impairment) and the resulting re-measurement is reflected in the consolidated financial statements at the reporting date.

Recurring and Non-Recurring Fair Value Measurements

The Company’s assets that are carried at fair value on a recurring and non-recurring basis, by fair value hierarchy level, are as follows:

March 31, 2024	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	9,856	$	—	$	9,856
U.S. agency mortgage-backed		—		6,460		—		6,460
State and political subdivisions		—		71,058		500		71,558
Corporate and miscellaneous		2,290		126,535		25,851		154,676
Foreign government		—		133		—		133
Residential mortgage-backed		—		7,739		—		7,739
Commercial mortgage-backed		—		20,600		—		20,600
Asset-backed		—		27,149		3,353		30,502
Total fixed maturities		2,290		269,530		29,704		301,524
Total recurring assets	$	2,290	$	269,530	$	29,704	$	301,524

December 31, 2023	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	10,065	$	—	$	10,065
U.S. agency mortgage-backed		—		6,718		—		6,718
State and political subdivisions		—		69,726		493		70,219
Corporate and miscellaneous		2,258		136,688		26,351		165,297
Foreign government		—		135		—		135
Residential mortgage-backed		—		6,875		—		6,875
Commercial mortgage-backed		—		20,388		—		20,388
Asset-backed		—		30,428		3,258		33,686
Total fixed maturities		2,258		281,023		30,102		313,383
Total recurring assets	$	2,258	$	281,023	$	30,102	$	313,383

Summary of Significant Valuation Techniques for Assets on a Recurring Basis

Level 1 securities include principally exchange‑traded funds that are valued based on quoted market prices for identical assets.

Level 2 securities are based on prices obtained from independent pricing services. All of the Company’s prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type and region of the world, based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type and region. For fixed maturities that do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications which incorporate a variety of inputs including, but not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, and U.S. Treasury curves. Specifically, for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Securities with validated quotes from pricing services are reflected within Level 2 of the fair value hierarchy, as they generally are based on observable pricing for similar assets or other market significant observable inputs.

Level 3 fair value classification consists of investments in securities where the fair value of the security is determined by a pricing service using internal pricing models where one or more of the significant inputs is unobservable in the marketplace, or there is a single broker/dealer quote. The fair value of a broker-quoted asset is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant. The fair value of Level 3 liabilities is estimated on the discounted cash flows of contractual payments.

If the Company believes the pricing information received from third-party pricing services is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service. Historically, the Company has not challenged or updated the prices provided by third-party pricing services. However, any such updates by a pricing service to be more consistent with the presented market observations, or any adjustments made by the Company to prices provided by third-party pricing services would be reflected in the balance sheet for the current period.

When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). Net transfers into and/or out of Level 3 are reported as having occurred at the beginning of the period and are based on observable inputs received from pricing sources; therefore, all net realized and unrealized gains and losses on these securities for the period are reflected in the table that follows. A summary of changes in fair value of Level 3 assets held at fair value on a recurring basis is as follows:

			Total gains (losses) included in:
	Balance at January 1, 2024		Net Income (Loss)			OCI			Purchases		Sales			Settlements		Net Transfers			Balance at March 31, 2024
Financial Assets
Fixed maturities
State and political subdivision	$	492	$	—		$	8		$	—	$	—		$	—	$	—		$	500
Corporate and miscellaneous		26,351		(142	)		14			3,064		(3,190	)		—		(246	)		25,851
Asset-backed		3,259		53			(19	)		143		(83	)		—		—			3,353
Total assets	$	30,102	$	(89	)	$	3		$	3,207	$	(3,273	)	$	—	$	(246	)	$	29,704

			Total gains (losses) included in:
	Balance at January 1, 2023		Net Income			OCI		Purchases		Sales			Settlements		Net Transfers		Balance at December 31, 2023
Financial Assets
Fixed maturities
State and political subdivisions	$	442	$	—		$	50	$	—	$	—		$	—	$	—	$	492
Corporate and miscellaneous		26,991		(38	)		74		2,982		(4,030	)		—		372		26,351
Asset-backed		3,133		106			182		658		(820	)		—		—		3,259
Total assets	$	30,566	$	68		$	306	$	3,640	$	(4,850	)	$	-	$	372	$	30,102

There was 1 transfer from Level 3 to Level 2 and no transfer from Level 2 to Level 3 in 2024. There were 3 transfers from Level 2 to Level 3 and 1 transfer from Level 3 to Level 2 in 2023.

Financial Instruments not Measured at Fair Value

The following tables provide fair value information for financial instruments that are carried on the balance sheet at amounts other than fair value. These tables exclude cash and cash equivalents and accrued investment income, that are not securities and therefore are not included in the three-level hierarchy table disclosed in the “Recurring and Non-Recurring Fair Value Measurements” section. The carrying amount and estimated fair values of the Company’s financial instruments that are not measured at fair value on the Interim Condensed Consolidated Balance Sheets are as follows:

			Estimated Fair Value
March 31, 2024	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	39,603	$	—	$	—	$	36,357	$	36,357
Policyholder loans	$	7,216	$	—	$	—	$	8,310	$	8,310
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	$	16,017	$	—	$	—	$	15,119	$	15,119
Long/short-term debt	$	51,259	$	—	$	—	$	49,244	$	49,244
Policyholder account balances	$	69,414	$	—	$	—	$	64,748	$	64,748

			Estimated Fair Value
December 31, 2023	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	40,534	$	—	$	—	$	37,005	$	37,005
Policyholder loans	$	7,149	$	—	$	—	$	8,234	$	8,234
Financial instruments recorded    as liabilities:
Future policy benefits, excluding term    life reserves	$	16,307	$	—	$	—	$	15,319	$	15,319
Long/short-term debt	$	49,010	$	—	$	—	$	51,927	$	51,927
Policyholder account balances	$	70,726	$	—	$	—	$	65,881	$	65,881

The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities.

Mortgage Loans — Fair value was based on the discounted value of future cash flows for all first mortgage loans adjusted for specific loan risk. The discount rate was based on the rate that would be offered for similar loans at the reporting date. Fair value excludes $1,005 and $1,098 of second and mezzanine mortgages carried at cost for which fair value is not measurable at March 31, 2024 and December 31, 2023, respectively.

Policyholder Loans — Fair value of policyholder loans was estimated using discounted cash flows using risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash value of the underlying insurance policy.

Future Policy Benefits and Policyholder Account Balances — Liabilities with interest rate guarantees greater than one year or with defined maturities, the fair value was estimated by calculating an average present value of expected cash flows over a broad range of interest rate scenarios using the current market risk‑free interest rates adjusted for spreads required for publicly traded bonds issued by comparably rated insurers. Certain non-interest sensitive reserves are at carrying value, which approximates fair value.

Long and Short-Term Debt — Fair value was calculated using the discounted value of future cash flows method. The discount rate was based on the rate that is commensurable to the level of risk. The carrying amounts reported on the Interim Condensed Consolidated Balance Sheets have been divided into short and long-term based upon expected maturity dates.

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Long and Short-Term Debt

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Long and Short-Term Debt

Note 8 – Long and Short-Term Debt

Beginning January 1, 2024, the commission financing agreement, which has been effective since 2022 has been terminated relating to any new business. At March 31, 2024 and December 31, 2023, the Company had a net advance of $36,622 and $40,393, respectively, under this arrangement. At March 31, 2024, the Company expects to pay back the aggregate amounts as presented in the following table.

	March 31, 2024
Due in one year or less	$	12,976
Due after one year through two years		6,408
Due after two years through three years		5,994
Due after three years through four years		5,556
Due after four years through five years		5,091
Due after five years		39,837
Less discount		(24,603	)
Total long/short-term debt	$	51,259

Federal Home Loan Bank of Chicago

The Company is a member of the Federal Home Loan Bank of Chicago (FHLBC). As a member, the Company is able to borrow on a collateralized basis from the FHLBC which can be used as an alternative source of liquidity. The FHLBC membership requires the Company to own member stock. At March 31, 2024 and December 31, 2023, the Company held $270 and $270 of FHLBC common stock, which is included in Other invested assets, respectively. The Company's ability to borrow under this facility is subject to the FHLBC's discretion and requires the availability of qualifying assets. During the first three months of 2024, the Company received advances of $5,300, which remains outstanding as of March 31, 2024 and is included in the Due in one year or less line in the table above.

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Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2024

Equity, Attributable to Parent [Abstract]

Accumulated Other Comprehensive (Loss) Income

Note 9 – Accumulated Other Comprehensive (Loss) Income

Changes in accumulated other comprehensive (loss) income, net of taxes are as follows:

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2024	$	362	$	(21,584	)	$	(21,222	)
Unrealized holding (losses) gains from changes in the market value of securities		—		(1,991	)		(1,991	)
Impact on Policy benefit liabilities of changes in market value of securities		—		199			199
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		—			-
Income tax benefit (expense)		—		313			313
Other comprehensive income (loss), net of tax		—		(1,479	)		(1,479	)
Balance at March 31, 2024	$	362	$	(23,063	)	$	(22,701	)

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2023	$	362	$	(30,534	)	$	(30,172	)
Unrealized holding (losses) gains from changes in the market value of securities		—		7,927			7,927
Impact on Policy benefit liabilities of changes in market value of securities		—		(251	)		(251	)
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		-			-
Income tax (expense) benefit		—		(1,363	)		(1,363	)
Other comprehensive income (loss), net of tax		—		6,313			6,313
Balance at March 31, 2023	$	362	$	(24,221	)	$	(23,859	)

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Business Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Business Segments

Note 10 – Business Segments

Our Chief Operating Decision Maker makes decisions by analyzing our segment information. For internal decision-making purposes and external reporting purposes, we do not disaggregate revenue beyond our segment information and believe that any further disaggregation is immaterial. The Company’s current operations were organized into three reportable segments: Insurance, Agency, and Corporate & Other.

The Insurance Segment is composed of three broad lines consisting of Traditional Life, Closed Block, and Assumed Life and Annuities. Traditional Life and the Closed Block are distinct operations; the Assumed life and annuities business and the small amount of structured settlements are all blocks in runoff from a prior management arrangement.

The Agency Segment includes the insurance distribution operations of the Company and includes commission revenue from the sale of Fidelity Life products.

The Corporate & Other Segment includes expenses that will benefit the overall organization, which are not allocated to a segment. This segment recognizes net investment income on cash and invested assets held mainly as a result of the IPO and transaction expenses related to our recently announced merger transaction and interest expense on the commission financing agreement.

All intercompany accounts and transactions have been eliminated in consolidation, including any profit or loss from the sale of Insurance Segment products through the Agency Segment.

The segment results are as follows:

	Three Months Ended March 31, 2024												Three Months Ended March 31, 2023
	Insurance			Agency			Corporate & Other			Total Consolidated			Insurance			Agency		Corporate & Other			Total Consolidated
Net insurance premiums	$	22,557		$	—		$	—		$	22,557		$	24,338		$	—	$	—		$	24,338
Net investment income		4,079			—			56			4,135			4,273			—		74			4,347
Net (losses) gains on investments		(380	)		—			—			(380	)		(307	)		—		(232	)		(539	)
Earned commissions		—			16,798			—			16,798			—			15,094		(345	)		14,749
Other income		438			1,945			—			2,383			275			1,452		—			1,727
Total revenues		26,694			18,743			56			45,493			28,579			16,546		(503	)		44,622
Life, annuity, and health claim benefits		18,488			—			—			18,488			17,060			—		—			17,060
Operating costs and expenses		8,199			19,814			1,455			29,468			7,704			16,419		1,646			25,769
Amortization of deferred policy acquisition costs		3,749			—			—			3,749			3,648			—		—			3,648
Total benefits and expenses		30,436			19,814			1,455			51,705			28,412			16,419		1,646			46,477
Income (loss) before income taxes	$	(3,742	)	$	(1,071	)	$	(1,399	)	$	(6,212	)	$	167		$	127	$	(2,149	)	$	(1,855	)

	March 31, 2024								December 31, 2023
	Insurance		Agency		Corporate & Other		Total Consolidated		Insurance		Agency		Corporate & Other		Total Consolidated
Investments and cash	$	364,457	$	844	$	215	$	365,516	$	367,746	$	643	$	3,084	$	371,473
Commissions and agent balances		13,059		45,232		—		58,291		8,471		45,023		—		53,494
Deferred policy acquisition costs		89,186		—		—		89,186		88,076		—		—		88,076
Intangible assets		—		1,635		—		1,635		—		1,635		—		1,635
Reinsurance recoverables net		240,224		—		—		240,224		238,598		—		—		238,598
Deferred income tax assets, net		20,612		—		12,784		33,396		19,195		—		13,201		32,396
Other		29,600		9,095		391		39,086		27,623		9,009		514		37,146
Total assets	$	757,138	$	56,806	$	13,390	$	827,334	$	749,709	$	56,310	$	16,799	$	822,818

All the Company’s significant revenues and long-lived assets are located in the United States, which is the Company’s country of domicile.

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Subsequent Events

3 Months Ended

Mar. 31, 2024

Subsequent Events [Abstract]

Subsequent Events

Note 11 –Subsequent Events

Management has evaluated subsequent events up to and including May 15, 2024, the date these Interim Condensed Consolidated Financial Statements were issued and determined there were no reportable subsequent events.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

Description of Business

Description of Business

Vericity, Inc. (the Company) is a Delaware corporation organized to be the stock holding company for Members Holding Company (Members) and its subsidiaries. On August 7, 2019, the Company completed the initial public offering of 14,875,000 shares of its common stock at a price of $10.00 per share (the IPO). The IPO was conducted in connection with the conversion of Members Mutual Holding Company from mutual to stock form and the acquisition by the Company of all of the capital stock of Members following its conversion to stock form after its plan of conversion and amended and restated articles of incorporation were approved at a special meeting of eligible members on August 6, 2019 (the Conversion). As a result of the Conversion, the Company became the holding company for converted Members Mutual Holding Company and its indirect subsidiaries, including Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial).

On October 3, 2023, the Company, announced that it entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, iA American Holdings Inc. (“iA” or “Parent”), Long Grove Acquisition Corp., a wholly owned subsidiary of Parent (“Merger Sub”), and, solely for purposes of Section 6.03 and Article IX thereof, iA Financial Corporation, Inc. (“Guarantor”).

On the terms and subject to the conditions of the Merger Agreement, at the closing, Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving entity, which will become a wholly-owned subsidiary of Parent. The time that the Merger becomes effective is referred to as the “Effective Time.” The Merger was unanimously approved by the Company’s board of directors.

Following execution of the Merger Agreement, Apex Holdco L.P. (the “Consenting Stockholder” or “Apex”) executed and delivered to the Company a written consent (the “Stockholder Written Consent”), adopting the Merger Agreement and the transactions contemplated thereby, including the Merger.

As a result of the execution and delivery of the Stockholder Written Consent, the holders of at least a majority of the outstanding shares of Common Stock have adopted the Merger Agreement. No further approval of the stockholders of the Company is required to adopt the Merger Agreement.

As a result of the Merger, each share of Common Stock outstanding immediately prior to the Effective Time (subject to certain exceptions, including shares of Common Stock owned by stockholders of the Company who have not voted in favor of the adoption of the Merger Agreement and have properly exercised appraisal rights in accordance with Section 262 of the General Corporation Law of the State of Delaware) will, at the Effective Time, automatically be converted into the right to receive $11.43 in cash, without interest and subject to applicable withholding taxes (the “Merger Consideration”). The aggregate equity value of the Common Stock acquired by Parent will be approximately $170 million.

If the Merger is consummated, the Company’s Common Stock will be delisted from The Nasdaq Capital Market and deregistered under the Securities Exchange Act of 1934, as amended. The completion of the Merger is subject to satisfaction or waiver of certain closing conditions, including: (i) the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”), and receipt of certain regulatory approvals; (ii) there being no law or injunction prohibiting consummation of the Merger; (iii) subject to specified materiality standards, the accuracy of the representations and warranties of the other party; and (iv) compliance by the other party in all material respects with its covenants. Parent’s and Merger Sub’s obligations are also conditioned upon the absence of a material adverse effect on the Company and the absence of any burdensome condition (as defined in the Merger Agreement) imposed by any regulators as part of the regulatory approval process.

On October 3, 2023, the Company issued a Form 8-K and press release announcing the execution of the Merger Agreement and the Form 8-K is incorporated into this filing by reference. The Merger is expected to close in Q2, 2024.

The Company operates as a holding company and currently has no other business operations. Fidelity Life is an Illinois‑domiciled life insurance company that was founded in 1896. Fidelity Life markets life insurance products through independent and affiliated distributors and is licensed in the District of Columbia and all states, except New York and Wyoming. Efinancial markets life and other products for non‑affiliated insurance companies and sells life products for Fidelity Life.

The accompanying interim condensed consolidated financial statements present the accounts of the Company and subsidiaries for the three months ended March 31, 2024 and March 31, 2023 and at March 31, 2024 and December 31, 2023. These interim condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report in the Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods should not be considered indicative of results to be expected for the full year.

Basis of Presentation

Basis of Presentation

These interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The unaudited interim condensed consolidated financial information furnished herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal recurring nature. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted from this report, as is permitted by such rules and regulations. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the financial statements as of and for the year ended December 31, 2023, and notes thereto, included in the Form 10-K.

Use of Estimates

Use of Estimates

The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The more significant estimates employed in the preparation of the interim condensed consolidated financial statements include the determination of the valuation of investments in fixed maturity, investment impairments, the valuation of deferred tax assets, future policy benefits and other policyholder liabilities.

Accounting Standards Adopted and Pending

Accounting Standards Adopted and Pending

There were no significant accounting changes in 2024 that had a material impact on the Company's GAAP-basis financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments— Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance requires that Other-Than-Temporary Impairment (OTTI) on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through net gains (losses) on investments. The guidance also requires enhanced disclosures. In March 2022, the FASB issued ASU 2022-02 – Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosure. This ASU was issued to eliminate the troubled debt restructuring recognition and measurement guidance for creditors that have adopted the current expected credit loss guidance while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. The Company has assessed the impact of ASU 2016-13 and has established an additional for credit losses on our mortgage portfolio of $237. The tax effected amount of $187 is reflected as a beginning of year equity as a Cumulative effect adjustment from changes in accounting guidance, net of tax. The Company has also assessed fixed maturities - available-for-sale, reinsurance recoverables and commissions and agent balances and determined no additional allowance for credit losses is needed. We also adopted the required disclosures within Note 2 Investments, Note 4 Reinsurance, Note 9 Accumulated Other Comprehensive Income and Note 10 Business Segments. Due to the adoption of the measurement of credit losses on financial instruments accounting standard, prior change in valuation allowance is now presented as a change in allowance for credit losses

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Investments (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturities

The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and net of allowances for credit losses are included in accumulated other comprehensive income (AOCI) of fixed maturities available-for-sale are as follows:

	March 31, 2024
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,171	$	257	$	(572	)	$	9,856
U.S. agency mortgage-backed		7,018		37		(595	)		6,460
State and political subdivisions		80,891		359		(9,692	)		71,558
Corporate and miscellaneous		165,521		1,796		(12,641	)		154,676
Foreign government		130		3		—			133
Residential mortgage-backed		8,194		80		(535	)		7,739
Commercial mortgage-backed		22,101		11		(1,512	)		20,600
Asset-backed		32,287		62		(1,847	)		30,502
Total fixed maturities	$	326,313	$	2,605	$	(27,394	)	$	301,524

	December 31, 2023
Fixed maturities	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. government and agencies	$	10,188	$	365	$	(488	)	$	10,065
U.S. agency mortgage-backed		7,173		61		(516	)		6,718
State and political subdivisions		79,362		347		(9,490	)		70,219
Corporate and miscellaneous		174,263		2,733		(11,700	)		165,296
Foreign government		130		5		—			135
Residential mortgage-backed		7,302		96		(523	)		6,875
Commercial mortgage-backed		22,043		23		(1,678	)		20,388
Asset-backed		35,681		86		(2,081	)		33,686
Total fixed maturities	$	336,142	$	3,716	$	(26,476	)	$	313,382

Schedule of Amortized Cost and Fair Value of Fixed Maturities Available-for-sale by Contractual Maturity

The amortized cost and fair value of fixed maturities available-for-sale by contractual maturity, are presented in the following table:

	March 31, 2024
	Amortized Cost		Fair Value
Due in one year or less	$	6,207	$	6,126
Due after one year through five years		33,569		32,728
Due after five years through ten years		75,051		71,357
Due after ten years		141,885		126,012
Securities not due at a single maturity date — primarily mortgage and asset-backed		69,601		65,301
Total fixed maturities	$	326,313	$	301,524

Schedule of Mortgage Loan Holdings Diversified by Geography and Property

Mortgage loan holdings are diversified by geography and property type as follows:

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
Property Type:
Retail	$	12,367			30.7	%	$	12,812			31.2	%
Office		10,530			26.2	%		10,635			25.9	%
Industrial		7,386			18.4	%		7,476			18.2	%
Mixed use		4,654			11.6	%		4,798			11.7	%
Apartments		1,960			4.9	%		2,077			5.0	%
Medical office		2,393			6.0	%		2,423			5.9	%
Other		879			2.2	%		886			2.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

	March 31, 2024						December 31, 2023
	Gross Carrying Value			% of Total			Gross Carrying Value			% of Total
U.S. Region:
West South Central	$	9,935			24.7	%	$	10,038			24.3	%
East North Central		11,588			28.8	%		12,184			29.6	%
South Atlantic		7,938			19.8	%		8,046			19.6	%
West North Central		2,300			5.7	%		2,328			5.7	%
Mountain		2,524			6.3	%		2,560			6.2	%
Middle Atlantic		1,966			4.9	%		1,986			4.8	%
East South Central		3,480			8.7	%		3,519			8.7	%
Pacific		438			1.1	%		446			1.1	%
Gross carrying value of mortgage loans		40,169			100.0	%		41,107			100.0	%
Credit loss allowance		(566	)					(573	)
Net carrying value of mortgage loans	$	39,603					$	40,534

Schedule of Changes in Valuation Allowance for Commercial Mortgage Loans

The changes in the allowances for credit losses for commercial mortgage loans were as follows:

	Three Months Ended March 31, 2024			Year Ended December 31, 2023
Beginning balance	$	573		$	83
Net increase in allowances for credit losses related to change in accounting standards		—			237
Net (decrease) increase in allowances for credit losses		(7	)		253
Ending balance	$	566		$	573

Schedule of Net Investment Income

The sources of net investment income are as follows:

	Three Months Ended March 31,
	2024			2023
Income from:
Fixed maturities	$	3,875		$	3,868
Policyholder loans		85			97
Mortgage loans		479			726
Cash, cash equivalents and restricted cash		44			31
Gross investment income		4,483			4,722
Investment expenses		(348	)		(375	)
Net investment income	$	4,135		$	4,347

Schedule of Net Investment Gains (Losses)

The sources of net investment gains (losses) are as follows:

	Three Months Ended March 31,
	2024			2023
Investment (losses) gains from sales:
Fixed maturities	$	(500	)	$	36
Mortgage loans		—			—
Gains and losses from sales		(500	)		36
Valuation change of other invested assets - (decline) appreciation:		113			(545	)
Change in allowance for credit losses		7			(30	)
Total net gains (losses) on investments	$	(380	)	$	(539	)

Rollforward of Cumulative Credit Losses on Fixed Maturities

A roll-forward of the cumulative credit losses on fixed maturities are as follows:

	March 31,		December 31,
	2024		2023
Beginning allowance for credit loss balance	$	28	$	-
Increase in credit loss allowance		—		28
Reduction of credit losses allowances related to securities sold during period		—		—
Ending allowance for credit loss balance	$	28	$	28

Fair Value and Gross Unrealized Losses for Fixed Maturities Available-for-sale in Continuous Gross Unrealized Loss Position

The Company’s fair value and gross unrealized losses for fixed maturities available-for-sale, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows:

	12 months or less					Longer than 12 months					Total
March 31, 2024	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. government and agencies	$	994	$	(6	)	$	2,652	$	(566	)	$	3,646	$	(572	)
U.S. agency mortgage-backed		452		(4	)		4,663		(591	)		5,115		(595	)
State and political subdivisions		9,992		(258	)		46,997		(9,434	)		56,989		(9,692	)
Corporate and miscellaneous		27,711		(2,044	)		60,852		(10,597	)		88,563		(12,641	)
Residential mortgage-backed		849		(12	)		3,135		(523	)		3,984		(535	)
Commercial mortgage-backed		1,246		(25	)		17,878		(1,487	)		19,124		(1,512	)
Asset-backed		4,286		(224	)		20,076		(1,623	)		24,362		(1,847	)
Total fixed maturities	$	45,530	$	(2,573	)	$	156,253	$	(24,821	)	$	201,783	$	(27,394	)

	12 months or less					Longer than 12 months					Total
December 31, 2023	Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses			Estimated Fair Value		Gross Unrealized Losses
Fixed maturities
U.S. agency mortgage-backed	$	499	$	(1	)	$	2,732	$	(488	)	$	3,231	$	(489	)
U.S. agency mortgage-backed		94		—			4,879		(515	)		4,973		(515	)
State and political subdivisions		8,151		(176	)		45,628		(9,314	)		53,779		(9,490	)
Corporate and miscellaneous		22,527		(1,871	)		66,482		(9,829	)		89,009		(11,700	)
Residential mortgage-backed		269		(10	)		3,029		(513	)		3,298		(523	)
Commercial mortgage-backed		1,430		(53	)		17,582		(1,625	)		19,012		(1,678	)
Asset-backed		3,551		(190	)		26,644		(1,891	)		30,195		(2,081	)
Total fixed maturities	$	36,521	$	(2,301	)	$	166,976	$	(24,175	)	$	203,497	$	(26,476	)

Schedule of Number of Fixed Maturities in Unrealized Loss Position and Percentage Investment Grade

Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include fixed maturities and number of securities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at March 31, 2024.

	Unrealized Losses 12 months or less
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(6	)	$	(6	)	$	—		$	—			100	%
U.S. agency mortgage-backed		(4	)		(4	)		—			—			100	%
State and political subdivisions		(258	)		(258	)		—			—			100	%
Corporate and miscellaneous		(2,044	)		(623	)		(771	)		(650	)		87	%
Residential mortgage-backed		(12	)		(8	)		—			(4	)		58	%
Commercial mortgage-backed		(25	)		(25	)		—			—			100	%
Asset-backed		(224	)		(128	)		(95	)		(1	)		100	%
Gross unrealized losses	$	(2,573	)	$	(1,052	)	$	(866	)	$	(655	)
Total number of fixed maturities	188				158			21			9

	Unrealized Losses greater than 12 months
	Gross Unrealized Losses			Impairment is Less than 10% of Amortized Cost			Impairment is Between 10% and 20% of Amortized Cost			Impairment is Greater than 20% of Amortized Cost			Percent Investment Grade
Fixed maturities
U.S. government and agencies	$	(566	)	$	(72	)	$	—		$	(494	)		100	%
U.S. agency mortgage-backed		(591	)		(174	)		(417	)		—			100	%
State and political subdivisions		(9,434	)		(623	)		(3,636	)		(5,175	)		100	%
Corporate and miscellaneous		(10,597	)		(884	)		(4,678	)		(5,035	)		85	%
Residential mortgage-backed		(523	)		(59	)		(338	)		(126	)		79	%
Commercial mortgage-backed		(1,487	)		(915	)		(565	)		(7	)		100	%
Asset-backed		(1,623	)		(703	)		(900	)		(20	)		97	%
Gross unrealized losses	$	(24,821	)	$	(3,430	)	$	(10,534	)	$	(10,857	)
Total number of fixed maturities		574			206			235			133

Schedule of Gross Unrealized Losses By Unrealized Loss Position and Credit Quality

	Investment Grade		Below Investment Grade		Total
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net (1) (2)	$	15,466	$	416	$	15,882
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net (3) (4)		11,064		448		11,512
Total unrealized losses	$	26,530	$	864	$	27,394

(1) Below investment grade fixed income securities include $108 that have been in an unrealized loss position for less than twelve months.

(2) Related to securities with an unrealized loss position less than 20% of amortized cost, net, the degree of which suggests that these securities do not pose a high risk of having credit losses.

(3) Below investment grade fixed income securities include $756 that have been in an unrealized loss position for a period of twelve or more consecutive months.

(4) Evaluated based on factors such as discounted cash flows and the financial condition and near-term and long-term prospects of the issue or issuer and were determined to have adequate resources to fulfill contractual obligations.

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2024

Insurance [Abstract]

Schedule of Reinsurance Recoverables

Reinsurance recoverables are as follows:

	March 31,		December 31,
	2024		2023
Ceded future policy benefits	$	205,552	$	198,973
Claims and other amounts recoverables		34,672		39,625
Ending balance	$	240,224	$	238,598

Reconciliation of Direct Premiums to Net Premiums

The reconciliation of direct premiums to net premiums is as follows:

	Three Months Ended March 31,
	2024			2023
Direct premiums	$	47,504		$	44,356
Assumed premiums		8,158			9,913
Ceded premiums		(33,105	)		(29,931	)
Net insurance premiums	$	22,557		$	24,338

The reconciliation of direct, assumed and ceded amounts for life, annuity, and health claim benefits is as follows:

	Three Months Ended March 31,
	2024			2023
Direct	$	35,751		$	34,056
Assumed		4,145			4,161
Ceded		(22,021	)		(21,846	)
Life, annuity, and health claim benefits	$	17,875		$	16,371

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Closed Block (Tables)

3 Months Ended

Mar. 31, 2024

Closed Block Disclosure [Abstract]

Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block

Information regarding the Closed Block liabilities (assets) designated to the Closed Block is as follows:

	March 31,			December 31,
Closed Block Liabilities	2024			2023
Future policy benefits and claims	$	28,989		$	29,144
Policyholder account balances		6,414			6,492
Other policyholder liabilities		2,489			5,207
Policyholder dividend obligations		9,783			9,636
Other liabilities		374			2,068
Total Closed Block liabilities		48,049			52,547
Assets Designated to the Closed Block
Investments:
Fixed maturities - available-for-sale (amortized cost $42,414 and    $42,506, respectively)		39,068			39,678
Policyholder loans		1,198			1,234
Total investments		40,266			40,912
Cash and Cash Equivalents		—			—
Premiums due and uncollected		164			81
Accrued investment income		528			484
Reinsurance recoverables		10,313			14,739
Deferred income tax assets, net		4,290			4,100
Total assets designated to the Closed Block		55,561			60,316
Excess of Closed Block assets over liabilities		7,512			7,769
Amounts included in accumulated other comprehensive income:
Unrealized investment loss (gains), net of income tax		(2,643	)		(2,234	)
Total amounts included in accumulated other comprehensive income		(2,643	)		(2,234	)
Maximum future earnings and accumulated other comprehensive income to    be recognized from Closed Block assets and liabilities (includes excess    assets of $11,236 and $11,143, respectively)	$	(10,155	)	$	(10,003	)

Schedule of Information Regarding Policyholder Dividend Obligations

	March 31,		December 31,
Policyholder Dividend Obligations	2024		2023
Beginning balance	$	9,636	$	9,515
Impact from earnings allocable to policyholder dividend obligations		147		121
Change in net unrealized investment gains (losses) allocated to policyholder    dividend obligations		—		—
Ending balance	$	9,783	$	9,636

Schedule of Information Regarding Closed Block Revenues and Expenses

Information regarding the Closed Block revenues and expenses is as follows:

	Three Months Ended March 31,
	2024			2023
Revenues
Net insurance premiums	$	864		$	1,377
Net investment income		480			438
Net Realized Investment Gains (Losses)		1			1
Total revenues		1,345			1,816
Benefits and expenses
Life and annuity benefits - including policyholder dividends    of $339 and $325, respectively		1,150			1,682
Interest credited to policyholder account balances		52			41
Operating costs and expenses		(48	)		170
Total expenses		1,154			1,893
Revenues, net of expenses before provision for income tax    expense (benefit)		192			(77	)
Income tax expense (benefit)		40			(16	)
Revenues, net of expenses and provision for income tax    expense (benefit)	$	152		$	(61	)

Schedule of Amortized Cost and Fair Value of Closed Block Fixed Maturity Portfolio by Contractual Maturity

The following table presents the amortized cost and fair value of the Closed Block fixed maturities portfolio by contractual maturity at March 31, 2024. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties:

	Amortized Cost		Fair Value
Due in one year or less	$	3,704	$	3,647
Due after one year through five years		3,922		3,913
Due after five years through ten years		6,825		6,473
Due after ten years		24,865		22,018
Securities not due at a single maturity date — primarily mortgage and asset-    backed		3,098		3,017
Total fixed maturities	$	42,414	$	39,068

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Assets and Liabilities Measured at Fair Value (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Summary of Assets Carried at Fair Value on Recurring and Non-recurring Basis

The Company’s assets that are carried at fair value on a recurring and non-recurring basis, by fair value hierarchy level, are as follows:

March 31, 2024	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	9,856	$	—	$	9,856
U.S. agency mortgage-backed		—		6,460		—		6,460
State and political subdivisions		—		71,058		500		71,558
Corporate and miscellaneous		2,290		126,535		25,851		154,676
Foreign government		—		133		—		133
Residential mortgage-backed		—		7,739		—		7,739
Commercial mortgage-backed		—		20,600		—		20,600
Asset-backed		—		27,149		3,353		30,502
Total fixed maturities		2,290		269,530		29,704		301,524
Total recurring assets	$	2,290	$	269,530	$	29,704	$	301,524

December 31, 2023	Level 1		Level 2		Level 3		Total Fair Value
Recurring fair value measurements
Financial instruments recorded as assets:
Fixed maturities
U.S. government and agencies	$	—	$	10,065	$	—	$	10,065
U.S. agency mortgage-backed		—		6,718		—		6,718
State and political subdivisions		—		69,726		493		70,219
Corporate and miscellaneous		2,258		136,688		26,351		165,297
Foreign government		—		135		—		135
Residential mortgage-backed		—		6,875		—		6,875
Commercial mortgage-backed		—		20,388		—		20,388
Asset-backed		—		30,428		3,258		33,686
Total fixed maturities		2,258		281,023		30,102		313,383
Total recurring assets	$	2,258	$	281,023	$	30,102	$	313,383

Summary of Changes in Fair Value of Level 3 Assets Held at Fair Value on Recurring Basis

A summary of changes in fair value of Level 3 assets held at fair value on a recurring basis is as follows:

			Total gains (losses) included in:
	Balance at January 1, 2024		Net Income (Loss)			OCI			Purchases		Sales			Settlements		Net Transfers			Balance at March 31, 2024
Financial Assets
Fixed maturities
State and political subdivision	$	492	$	—		$	8		$	—	$	—		$	—	$	—		$	500
Corporate and miscellaneous		26,351		(142	)		14			3,064		(3,190	)		—		(246	)		25,851
Asset-backed		3,259		53			(19	)		143		(83	)		—		—			3,353
Total assets	$	30,102	$	(89	)	$	3		$	3,207	$	(3,273	)	$	—	$	(246	)	$	29,704

			Total gains (losses) included in:
	Balance at January 1, 2023		Net Income			OCI		Purchases		Sales			Settlements		Net Transfers		Balance at December 31, 2023
Financial Assets
Fixed maturities
State and political subdivisions	$	442	$	—		$	50	$	—	$	—		$	—	$	—	$	492
Corporate and miscellaneous		26,991		(38	)		74		2,982		(4,030	)		—		372		26,351
Asset-backed		3,133		106			182		658		(820	)		—		—		3,259
Total assets	$	30,566	$	68		$	306	$	3,640	$	(4,850	)	$	-	$	372	$	30,102

Summary of Carrying Amount and Estimated Fair Values of Financial Instruments not Measured at Fair Value

The carrying amount and estimated fair values of the Company’s financial instruments that are not measured at fair value on the Interim Condensed Consolidated Balance Sheets are as follows:

			Estimated Fair Value
March 31, 2024	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	39,603	$	—	$	—	$	36,357	$	36,357
Policyholder loans	$	7,216	$	—	$	—	$	8,310	$	8,310
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	$	16,017	$	—	$	—	$	15,119	$	15,119
Long/short-term debt	$	51,259	$	—	$	—	$	49,244	$	49,244
Policyholder account balances	$	69,414	$	—	$	—	$	64,748	$	64,748

			Estimated Fair Value
December 31, 2023	Carrying Value		Level 1		Level 2		Level 3		Total
Financial instruments recorded as assets:
Mortgage loans	$	40,534	$	—	$	—	$	37,005	$	37,005
Policyholder loans	$	7,149	$	—	$	—	$	8,234	$	8,234
Financial instruments recorded    as liabilities:
Future policy benefits, excluding term    life reserves	$	16,307	$	—	$	—	$	15,319	$	15,319
Long/short-term debt	$	49,010	$	—	$	—	$	51,927	$	51,927
Policyholder account balances	$	70,726	$	—	$	—	$	65,881	$	65,881

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Long and Short-Term Debt (Tables)

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long Term and Short Term Debt Pay Back

At March 31, 2024, the Company expects to pay back the aggregate amounts as presented in the following table.

	March 31, 2024
Due in one year or less	$	12,976
Due after one year through two years		6,408
Due after two years through three years		5,994
Due after three years through four years		5,556
Due after four years through five years		5,091
Due after five years		39,837
Less discount		(24,603	)
Total long/short-term debt	$	51,259

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Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2024

Equity, Attributable to Parent [Abstract]

Changes in Accumulated Other Comprehensive (Loss) Income, Net of Taxes

Changes in accumulated other comprehensive (loss) income, net of taxes are as follows:

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2024	$	362	$	(21,584	)	$	(21,222	)
Unrealized holding (losses) gains from changes in the market value of securities		—		(1,991	)		(1,991	)
Impact on Policy benefit liabilities of changes in market value of securities		—		199			199
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		—			-
Income tax benefit (expense)		—		313			313
Other comprehensive income (loss), net of tax		—		(1,479	)		(1,479	)
Balance at March 31, 2024	$	362	$	(23,063	)	$	(22,701	)

Other comprehensive income (loss)	Net Unrealized Gains (Losses) on Investments with Credit Losses		Net Unrealized Gains (Losses) on Other Investments			Total
Balance at January 1, 2023	$	362	$	(30,534	)	$	(30,172	)
Unrealized holding (losses) gains from changes in the market value of securities		—		7,927			7,927
Impact on Policy benefit liabilities of changes in market value of securities		—		(251	)		(251	)
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations		—		-			-
Income tax (expense) benefit		—		(1,363	)		(1,363	)
Other comprehensive income (loss), net of tax		—		6,313			6,313
Balance at March 31, 2023	$	362	$	(24,221	)	$	(23,859	)

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of Segment Information

The segment results are as follows:

	Three Months Ended March 31, 2024												Three Months Ended March 31, 2023
	Insurance			Agency			Corporate & Other			Total Consolidated			Insurance			Agency		Corporate & Other			Total Consolidated
Net insurance premiums	$	22,557		$	—		$	—		$	22,557		$	24,338		$	—	$	—		$	24,338
Net investment income		4,079			—			56			4,135			4,273			—		74			4,347
Net (losses) gains on investments		(380	)		—			—			(380	)		(307	)		—		(232	)		(539	)
Earned commissions		—			16,798			—			16,798			—			15,094		(345	)		14,749
Other income		438			1,945			—			2,383			275			1,452		—			1,727
Total revenues		26,694			18,743			56			45,493			28,579			16,546		(503	)		44,622
Life, annuity, and health claim benefits		18,488			—			—			18,488			17,060			—		—			17,060
Operating costs and expenses		8,199			19,814			1,455			29,468			7,704			16,419		1,646			25,769
Amortization of deferred policy acquisition costs		3,749			—			—			3,749			3,648			—		—			3,648
Total benefits and expenses		30,436			19,814			1,455			51,705			28,412			16,419		1,646			46,477
Income (loss) before income taxes	$	(3,742	)	$	(1,071	)	$	(1,399	)	$	(6,212	)	$	167		$	127	$	(2,149	)	$	(1,855	)

	March 31, 2024								December 31, 2023
	Insurance		Agency		Corporate & Other		Total Consolidated		Insurance		Agency		Corporate & Other		Total Consolidated
Investments and cash	$	364,457	$	844	$	215	$	365,516	$	367,746	$	643	$	3,084	$	371,473
Commissions and agent balances		13,059		45,232		—		58,291		8,471		45,023		—		53,494
Deferred policy acquisition costs		89,186		—		—		89,186		88,076		—		—		88,076
Intangible assets		—		1,635		—		1,635		—		1,635		—		1,635
Reinsurance recoverables net		240,224		—		—		240,224		238,598		—		—		238,598
Deferred income tax assets, net		20,612		—		12,784		33,396		19,195		—		13,201		32,396
Other		29,600		9,095		391		39,086		27,623		9,009		514		37,146
Total assets	$	757,138	$	56,806	$	13,390	$	827,334	$	749,709	$	56,310	$	16,799	$	822,818

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Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	12 Months Ended
	Aug. 07, 2019	Mar. 31, 2024	Dec. 31, 2023	Oct. 03, 2023	Mar. 31, 2023
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Common stock acquired by parent		$ 15	$ 15
Common stock outstanding converted into right to receive in cash				$ 11.43
Equity, tax effected amount		103,208	110,213		$ 115,588
Additional valuation allowance on mortgage portfolio			$ 237
Parent [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Common stock acquired by parent				$ 170,000
Mortgage Loans
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Additional valuation allowance on mortgage portfolio		237
Cumulative Effect Adjustment from Changes in Accounting Guidance, Net of Tax
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Equity, tax effected amount		$ 187
ASU No. 2016-13
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]		true
Initial Public Offering
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Common stock issued	14,875,000
Common stock per share	$ 10

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Investments - Schedule of Fixed Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	$ 326,313	$ 336,142
Fixed maturities, available-for-sale, Unrealized Gains	2,605	3,716
Fixed maturities, available-for-sale, Unrealized Losses	(27,394)	(26,476)
Fixed maturities, available-for-sale, Fair Value	301,524	313,382
U.S. Government and Agencies
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	10,171	10,188
Fixed maturities, available-for-sale, Unrealized Gains	257	365
Fixed maturities, available-for-sale, Unrealized Losses	(572)	(488)
Fixed maturities, available-for-sale, Fair Value	9,856	10,065
U.S. Agency Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	7,018	7,173
Fixed maturities, available-for-sale, Unrealized Gains	37	61
Fixed maturities, available-for-sale, Unrealized Losses	(595)	(516)
Fixed maturities, available-for-sale, Fair Value	6,460	6,718
State and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	80,891	79,362
Fixed maturities, available-for-sale, Unrealized Gains	359	347
Fixed maturities, available-for-sale, Unrealized Losses	(9,692)	(9,490)
Fixed maturities, available-for-sale, Fair Value	71,558	70,219
Corporate and Miscellaneous
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	165,521	174,263
Fixed maturities, available-for-sale, Unrealized Gains	1,796	2,733
Fixed maturities, available-for-sale, Unrealized Losses	(12,641)	(11,700)
Fixed maturities, available-for-sale, Fair Value	154,676	165,296
Foreign Government
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	130	130
Fixed maturities, available-for-sale, Unrealized Gains	3	5
Fixed maturities, available-for-sale, Unrealized Losses	0
Fixed maturities, available-for-sale, Fair Value	133	135
Residential Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	8,194	7,302
Fixed maturities, available-for-sale, Unrealized Gains	80	96
Fixed maturities, available-for-sale, Unrealized Losses	(535)	(523)
Fixed maturities, available-for-sale, Fair Value	7,739	6,875
Commercial Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	22,101	22,043
Fixed maturities, available-for-sale, Unrealized Gains	11	23
Fixed maturities, available-for-sale, Unrealized Losses	(1,512)	(1,678)
Fixed maturities, available-for-sale, Fair Value	20,600	20,388
Asset-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturities, available-for-sale, Amortized Cost	32,287	35,681
Fixed maturities, available-for-sale, Unrealized Gains	62	86
Fixed maturities, available-for-sale, Unrealized Losses	(1,847)	(2,081)
Fixed maturities, available-for-sale, Fair Value	$ 30,502	$ 33,686

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Investments - Schedule of Amortized Cost and Fair Value of Fixed Maturities Available-for-sale by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Due in one year or less, Amortized Cost	$ 6,207
Due after one year through five years, Amortized Cost	33,569
Due after five years through ten years, Amortized Cost	75,051
Due after ten years, Amortized Cost	141,885
Securities not due at a single maturity date - primarily mortgage and asset-backed, Amortized Cost	69,601
Fixed maturities, available-for-sale, Amortized Cost	326,313	$ 336,142
Due in one year or less, Fair Value	6,126
Due after one year through five years, Fair Value	32,728
Due after five years through ten years, Fair Value	71,357
Due after ten years, Fair Value	126,012
Securities not due at a single maturity date -primarily mortgage and asset-backed, Fair Value	65,301
Total fixed maturities, Fair Value	$ 301,524	$ 313,382

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Investments - Additional Information (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) Investment Loan	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Schedule Of Investments [Line Items]
Deposit with governmental authorities	$ 2,610,000		$ 2,689,000
Investment, Type [Extensible Enumeration]	Fixed Maturities [Member]		Fixed Maturities [Member]
Commitments to investment in available for sale securities	$ 411,000		$ 0
Number of investment instruments | Investment	33
Number of mortgage loan | Loan	307
Additional valuation allowance on mortgage portfolio			$ 237,000
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]		Accounting Standards Update 2016-13 [Member]
Average loan balance	$ 130,000
Maximum exposure related to a single loan	600,000
New mortgage loans purchased	0	$ 144,000
Total carrying value of mortgage loans in restructured status	0		$ 0
Impairments for mortgage loans	0		0
Mortgage loans, nonaccrual status	0		0
Commitments to investment in mortgage loans	3,828,000		3,734,000
Gross unrealized losses	$ 27,394,000		$ 26,476,000
Minimum
Schedule Of Investments [Line Items]
Commercial mortgage loan ownership percent	0.60%
Maximum
Schedule Of Investments [Line Items]
Commercial mortgage loan ownership percent	30.00%
Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	100.00%		100.00%
Mortgage Loans Receivable | Credit Concentration Risk | Investment Grade Securities
Schedule Of Investments [Line Items]
Fixed maturities portfolio	96.20%		96.00%

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Investments - Schedule of Mortgage Loan Holdings Diversified by Geography and Property (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Investments [Line Items]
Credit loss allowance	$ (566)	$ (573)	$ (83)
Net carrying value of mortgage loans	$ 39,603	$ 40,534
Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	100.00%	100.00%
Mortgage Loans Receivable | Geographic Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	100.00%	100.00%
Mortgage Loans Receivable | Geographic Concentration Risk | West South Central
Schedule Of Investments [Line Items]
Fixed maturities portfolio	24.70%	24.30%
Mortgage Loans Receivable | Geographic Concentration Risk | East North Central
Schedule Of Investments [Line Items]
Fixed maturities portfolio	28.80%	29.60%
Mortgage Loans Receivable | Geographic Concentration Risk | South Atlantic
Schedule Of Investments [Line Items]
Fixed maturities portfolio	19.80%	19.60%
Mortgage Loans Receivable | Geographic Concentration Risk | West North Central
Schedule Of Investments [Line Items]
Fixed maturities portfolio	5.70%	5.70%
Mortgage Loans Receivable | Geographic Concentration Risk | Mountain
Schedule Of Investments [Line Items]
Fixed maturities portfolio	6.30%	6.20%
Mortgage Loans Receivable | Geographic Concentration Risk | Middle Atlantic
Schedule Of Investments [Line Items]
Fixed maturities portfolio	4.90%	4.80%
Mortgage Loans Receivable | Geographic Concentration Risk | East South Central
Schedule Of Investments [Line Items]
Fixed maturities portfolio	8.70%	8.70%
Mortgage Loans Receivable | Geographic Concentration Risk | Pacific
Schedule Of Investments [Line Items]
Fixed maturities portfolio	1.10%	1.10%
Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 40,169	$ 41,107
Credit loss allowance	(566)	(573)
Net carrying value of mortgage loans	39,603	40,534
Mortgage Loans | West South Central
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	9,935	10,038
Mortgage Loans | East North Central
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	11,588	12,184
Mortgage Loans | South Atlantic
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	7,938	8,046
Mortgage Loans | West North Central
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	2,300	2,328
Mortgage Loans | Mountain
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	2,524	2,560
Mortgage Loans | Middle Atlantic
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	1,966	1,986
Mortgage Loans | East South Central
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	3,480	3,519
Mortgage Loans | Pacific
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 438	$ 446
Retail | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	30.70%	31.20%
Retail | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 12,367	$ 12,812
Office | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	26.20%	25.90%
Office | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 10,530	$ 10,635
Industrial | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	18.40%	18.20%
Industrial | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 7,386	$ 7,476
Mixed Use | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	11.60%	11.70%
Mixed Use | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 4,654	$ 4,798
Apartments | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	4.90%	5.00%
Apartments | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 1,960	$ 2,077
Medical Office | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	6.00%	5.90%
Medical Office | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 2,393	$ 2,423
Other | Mortgage Loans Receivable | Credit Concentration Risk
Schedule Of Investments [Line Items]
Fixed maturities portfolio	2.20%	2.10%
Other | Mortgage Loans
Schedule Of Investments [Line Items]
Gross carrying value of mortgage loans	$ 879	$ 886

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Investments - Schedule of Changes in Valuation Allowance for Commercial Mortgage Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Beginning balance	$ 573	$ 83
Net increase in allowances for credit losses related to change in accounting standards		$ 237
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2016-13 [Member]	Accounting Standards Update 2016-13 [Member]
Net (decrease) increase in allowances for credit losses	$ (7)	$ 253
Ending balance	$ 566	$ 573

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Investments - Schedule of Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Gross investment income	$ 4,483	$ 4,722
Investment expenses	(348)	(375)
Net investment income	4,135	4,347
Fixed Maturities
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Interest	3,875	3,868
Policyholder Loans
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Interest	85	97
Mortgage Loans
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Interest	479	726
Cash and Cash Equivalents and Restricted Cash
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Interest	$ 44	$ 31

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Investments - Schedule of Net Investment Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gains and losses from sales	$ (500)	$ 36
Change in allowance for credit losses	7	(30)
Total net gains (losses) on investments	(380)	(539)
Fixed Maturities
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gains and losses from sales	(500)	36
Mortgage Loans
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Gains and losses from sales	0	0
Other Invested Assets
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items]
Valuation change of other invested assets - (decline) appreciation:	$ 113	$ (545)

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Investments - Rollforward of Cumulative Credit Losses on Fixed Maturities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Beginning allowance for credit loss balance	$ 28	$ 0
Increase in credit loss allowance	0	28
Reduction of credit losses allowances related to securities sold during period	0	0
Ending allowance for credit loss balance	$ 28	$ 28

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Investments - Fair Value and Gross Unrealized Losses for Fixed Maturities Available-for-sale in Continuous Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	$ 45,530	$ 36,521
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(2,573)	(2,301)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	156,253	166,976
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(24,821)	(24,175)
Fixed maturity securities, Total, Estimated Fair Value	201,783	203,497
Fixed maturity securities, Total, Gross Unrealized Losses	(27,394)	(26,476)
U.S. Government and Agencies
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	994	499
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(6)	(1)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	2,652	2,732
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(566)	(488)
Fixed maturity securities, Total, Estimated Fair Value	3,646	3,231
Fixed maturity securities, Total, Gross Unrealized Losses	(572)	(489)
U.S. Agency Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	452	94
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(4)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	4,663	4,879
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(591)	(515)
Fixed maturity securities, Total, Estimated Fair Value	5,115	4,973
Fixed maturity securities, Total, Gross Unrealized Losses	(595)	(515)
State and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	9,992	8,151
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(258)	(176)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	46,997	45,628
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(9,434)	(9,314)
Fixed maturity securities, Total, Estimated Fair Value	56,989	53,779
Fixed maturity securities, Total, Gross Unrealized Losses	(9,692)	(9,490)
Corporate and Miscellaneous
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	27,711	22,527
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(2,044)	(1,871)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	60,852	66,482
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(10,597)	(9,829)
Fixed maturity securities, Total, Estimated Fair Value	88,563	89,009
Fixed maturity securities, Total, Gross Unrealized Losses	(12,641)	(11,700)
Residential Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	849	269
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(12)	(10)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	3,135	3,029
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(523)	(513)
Fixed maturity securities, Total, Estimated Fair Value	3,984	3,298
Fixed maturity securities, Total, Gross Unrealized Losses	(535)	(523)
Commercial Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	1,246	1,430
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(25)	(53)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	17,878	17,582
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(1,487)	(1,625)
Fixed maturity securities, Total, Estimated Fair Value	19,124	19,012
Fixed maturity securities, Total, Gross Unrealized Losses	(1,512)	(1,678)
Asset-backed
Schedule Of Available For Sale Securities [Line Items]
Fixed maturity securities, 12 months or less, Estimated Fair Value	4,286	3,551
Fixed maturity securities, 12 months or less, Gross Unrealized Losses	(224)	(190)
Fixed maturity securities, Longer than 12 months, Estimated Fair Value	20,076	26,644
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses	(1,623)	(1,891)
Fixed maturity securities, Total, Estimated Fair Value	24,362	30,195
Fixed maturity securities, Total, Gross Unrealized Losses	$ (1,847)	$ (2,081)

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Investments - Schedule of Fixed Maturities and Number of Fixed Maturities in Unrealized Loss Position and Percentage Investment Grade (Details)	Mar. 31, 2024 Security
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(2,573)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(1,052)
Unrealized Losses 12 months or less, Impairment is Between 10% and 20% of Amortized Cost	(866)
Unrealized Losses 12 months or less, Impairment is Greater than 20% of Amortized Cost	(655)
Unrealized Losses 12 months or less, Number of Fixed Maturities Total	188
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost Number of Fixed Maturities	158
Unrealized Losses 12 months or less, Impairment is Between 10% and 20% of Amortized Cost, Number of Fixed Maturities Total	21
Unrealized Losses 12 months or less, Impairment is Greater than 20% of Amortized Cost Number Fixed Maturities Total	9
Unrealized Losses greater than 12 months, Total	(24,821)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(3,430)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(10,534)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(10,857)
Unrealized Losses greater than 12 months, Number of Fixed Maturities, Total	574
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost Number of Fixed Maturities Total	206
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost Number of Fixed Maturities Total	235
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost Number of Fixed Maturities Total	133
U.S. Government and Agencies
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(6)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(6)
Unrealized Losses 12 months or less, Percent Investment Grade	100.00%
Unrealized Losses greater than 12 months, Total	(566)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(72)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(494)
Unrealized Losses greater than 12 months, Percent Investment Grade	100.00%
U.S. Agency Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(4)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(4)
Unrealized Losses 12 months or less, Percent Investment Grade	100.00%
Unrealized Losses greater than 12 months, Total	(591)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(174)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(417)
Unrealized Losses greater than 12 months, Percent Investment Grade	100.00%
State and Political Subdivisions
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(258)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(258)
Unrealized Losses 12 months or less, Percent Investment Grade	100.00%
Unrealized Losses greater than 12 months, Total	(9,434)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(623)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(3,636)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(5,175)
Unrealized Losses greater than 12 months, Percent Investment Grade	100.00%
Corporate and Miscellaneous
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(2,044)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(623)
Unrealized Losses 12 months or less, Impairment is Between 10% and 20% of Amortized Cost	(771)
Unrealized Losses 12 months or less, Impairment is Greater than 20% of Amortized Cost	(650)
Unrealized Losses 12 months or less, Percent Investment Grade	87.00%
Unrealized Losses greater than 12 months, Total	(10,597)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(884)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(4,678)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(5,035)
Unrealized Losses greater than 12 months, Percent Investment Grade	85.00%
Residential Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(12)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(8)
Unrealized Losses 12 months or less, Impairment is Greater than 20% of Amortized Cost	(4)
Unrealized Losses 12 months or less, Percent Investment Grade	58.00%
Unrealized Losses greater than 12 months, Total	(523)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(59)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(338)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(126)
Unrealized Losses greater than 12 months, Percent Investment Grade	79.00%
Commercial Mortgage-backed
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(25)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(25)
Unrealized Losses 12 months or less, Percent Investment Grade	100.00%
Unrealized Losses greater than 12 months, Total	(1,487)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(915)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(565)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(7)
Unrealized Losses greater than 12 months, Percent Investment Grade	100.00%
Asset-backed
Schedule Of Available For Sale Securities [Line Items]
Unrealized Losses 12 months or less, Total	(224)
Unrealized Losses 12 months or less, Impairment is Less than 10% of Amortized Cost	(128)
Unrealized Losses 12 months or less, Impairment is Between 10% and 20% of Amortized Cost	(95)
Unrealized Losses 12 months or less, Impairment is Greater than 20% of Amortized Cost	(1)
Unrealized Losses 12 months or less, Percent Investment Grade	100.00%
Unrealized Losses greater than 12 months, Total	(1,623)
Unrealized Losses greater than 12 months, Impairment is Less than 10% of Amortized Cost	(703)
Unrealized Losses greater than 12 months, Impairment is Between 10% and 20% of Amortized Cost	(900)
Unrealized Losses greater than 12 months, Impairment is Greater than 20% of Amortized Cost	(20)
Unrealized Losses greater than 12 months, Percent Investment Grade	97.00%

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Investments - Schedule of Gross Unrealized Losses By Unrealized Loss Position and Credit Quality (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Total unrealized losses	$ 27,394	$ 26,476
Investment Grade
Debt Securities, Available-for-Sale [Line Items]
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net	15,466
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net	11,064
Total unrealized losses	26,530
Below Investment Grade Fixed Income Securities
Debt Securities, Available-for-Sale [Line Items]
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net	416
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net	448
Total unrealized losses	864
Fixed Income Securities
Debt Securities, Available-for-Sale [Line Items]
Fixed income securities with unrealized loss position less than or equal to 20% of amortized cost, net	15,882
Fixed income securities with unrealized loss position greater than 20% of amortized cost, net	11,512
Total unrealized losses	$ 27,394

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Investments - Schedule of Gross Unrealized Losses By Unrealized Loss Position and Credit Quality (Parenthetical) (Details) - Below Investment Grade Fixed Income Securities $ in Thousands	Mar. 31, 2024 USD ($)
Debt Securities, Available-for-Sale [Line Items]
Unrealized losses having loss of less than or equal to twenty percent	$ 108
Unrealized losses having loss of greater than twenty percent	$ 756

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Policy Liabilities - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Liability For Future Policy Benefit By Product Segment [Line Items]
Percentage of participating life insurance in force	2.30%	2.30%
Structured Settlement Contract
Liability For Future Policy Benefit By Product Segment [Line Items]
Policy liability	$ 12,400	$ 12,665
Policy liability that are life contingent	9,850	10,014
Structured Settlement Annuity Deficiency
Liability For Future Policy Benefit By Product Segment [Line Items]
Policy liability	$ 429	$ 629

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Reinsurance - Schedule of Reinsurance Recoverables (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Insurance [Abstract]
Ceded future policy benefits	$ 205,552	$ 198,973
Claims and other amounts recoverables	34,672	39,625
Ending balance	$ 240,224	$ 238,598

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Reinsurance - Schedule of Reconciliation of Direct Premiums to Net Premiums (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Insurance [Abstract]
Direct premiums	$ 47,504	$ 44,356
Assumed premiums	8,158	9,913
Ceded premiums	(33,105)	(29,931)
Net insurance premiums	$ 22,557	$ 24,338

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Reinsurance - Schedule of Reconciliation of Direct Assumed and Ceded Amount for Life, Annuity and Health Claim Benefits (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Insurance [Abstract]
Direct	$ 35,751	$ 34,056
Assumed	4,145	4,161
Ceded	(22,021)	(21,846)
Life, annuity, and health claim benefits	$ 17,875	$ 16,371

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Reinsurance - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Effects Of Reinsurance [Line Items]
Reinsurance, uncollectible or anticipated failure, amount	$ 200		$ 200
Amounts recoverable on paid claims	1,400		1,400
Decrease in ceded future policy benefits	657
Fixed-Rate Annuity | Policyholder Account Balances
Effects Of Reinsurance [Line Items]
Reserves related to fixed-rate annuity deposits	61,416		$ 62,665
Other Income
Effects Of Reinsurance [Line Items]
Net policy charges on universal life products	$ 47	$ 47

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Closed Block - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2011
Closed Block Disclosure [Abstract]
Assets transferred from closed block				$ 4,397
Additional closed block funding and accrued interest	$ 11,236	$ 11,143
Policyholder dividend obligation	$ 9,783	$ 9,636	$ 9,515

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Closed Block - Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Closed Block Liabilities
Future policy benefits and claims	$ 28,989	$ 29,144
Policyholder account balances	6,414	6,492
Other policyholder liabilities	2,489	5,207
Policyholder dividend obligation	9,783	9,636	$ 9,515
Other liabilities	374	2,068
Total Closed Block liabilities	48,049	52,547
Investments:
Fixed maturities - available-for-sale (amortized cost $42,414 and $42,506, respectively)	39,068	39,678
Policyholder loans	1,198	1,234
Total investments	40,266	40,912
Premiums due and uncollected	164	81
Accrued investment income	528	484
Reinsurance recoverables	10,313	14,739
Deferred income tax assets, net	4,290	4,100
Total assets designated to the Closed Block	55,561	60,316
Excess of Closed Block assets over liabilities	7,512	7,769
Amounts included in accumulated other comprehensive income:
Unrealized investment loss (gains), net of income tax	(2,643)	(2,234)
Total amounts included in accumulated other comprehensive income	(2,643)	(2,234)
Maximum future earnings and accumulated other comprehensive income to be recognized from Closed Block assets and liabilities (includes excess assets of $11,236 and $11,143, respectively)	$ (10,155)	$ (10,003)

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Closed Block - Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block (Parenthetical) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Closed Block Disclosure [Abstract]
Fixed maturity securities available for sale amortized cost	$ 42,414	$ 42,506
Excess assets	$ 11,236	$ 11,143

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Closed Block - Schedule of Information Regarding Policyholder Dividend Obligations (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Policyholder Dividend Obligations
Beginning balance	$ 9,636	$ 9,515
Impact from earnings allocable to policyholder dividend obligations	147	121
Ending balance	$ 9,783	$ 9,636

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Closed Block - Schedule of Information Regarding Closed Block Revenues and Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues
Net insurance premiums	$ 864	$ 1,377
Net investment income	480	438
Net Realized Investment Gains (Losses)	1	1
Total revenues	1,345	1,816
Benefits and expenses
Life and annuity benefits - including policyholder dividends of $339 and $325, respectively	1,150	1,682
Interest credited to policyholder account balances	52	41
Operating costs and expenses	(48)	170
Total expenses	1,154	1,893
Revenues, net of expenses before provision for income tax expense (benefit)	192	(77)
Income tax expense (benefit)	40	(16)
Revenues, net of expenses and provision for income tax expense (benefit)	$ 152	$ (61)

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Closed Block - Schedule of Information Regarding Closed Block Revenues and Expenses (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Closed Block Disclosure [Abstract]
Policyholders dividends	$ 339	$ 325

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Closed Block - Schedule of Amortized Cost and Fair Value of Closed Block Fixed Maturity Portfolio by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Closed Block Disclosure [Abstract]
Amortized Cost, Due in one year or less	$ 3,704
Amortized Cost, Due after one year through five years	3,922
Amortized Cost, Due after five years through ten years	6,825
Amortized Cost, Due after ten years	24,865
Amortized Cost, Securities not due at a single maturity date - primarily mortgage and asset-backed	3,098
Amortized Cost, Total fixed maturities	42,414	$ 42,506
Fair Value, Due in one year or less	3,647
Fair Value, Due after one year through five years	3,913
Fair Value, Due after five years through ten years	6,473
Fair Value, Due after ten years	22,018
Fair Value, Securities not due at a single maturity date - primarily mortgage and asset-backed	3,017
Fair Value, Total fixed maturities	$ 39,068	$ 39,678

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Assets and Liabilities Measured at Fair Value - Summary of Assets Carried at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Recurring fair value measurements
Fixed maturities	$ 301,524	$ 313,382
Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	301,524	313,383
Total recurring assets	301,524	313,383
Fair Value, Measurements, Recurring | Level 1
Recurring fair value measurements
Fixed maturities	2,290	2,258
Total recurring assets	2,290	2,258
Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	269,530	281,023
Total recurring assets	269,530	281,023
Fair Value, Measurements, Recurring | Level 3
Recurring fair value measurements
Fixed maturities	29,704	30,102
Total recurring assets	29,704	30,102
U.S. Government and Agencies
Recurring fair value measurements
Fixed maturities	9,856	10,065
U.S. Government and Agencies | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	9,856	10,065
U.S. Government and Agencies | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	9,856	10,065
U.S. Agency Mortgage-backed
Recurring fair value measurements
Fixed maturities	6,460	6,718
U.S. Agency Mortgage-backed | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	6,460	6,718
U.S. Agency Mortgage-backed | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	6,460	6,718
State and Political Subdivisions
Recurring fair value measurements
Fixed maturities	71,558	70,219
State and Political Subdivisions | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	71,558	70,219
State and Political Subdivisions | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	71,058	69,726
State and Political Subdivisions | Fair Value, Measurements, Recurring | Level 3
Recurring fair value measurements
Fixed maturities	500	493
Corporate and Miscellaneous
Recurring fair value measurements
Fixed maturities	154,676	165,296
Corporate and Miscellaneous | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	154,676	165,297
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 1
Recurring fair value measurements
Fixed maturities	2,290	2,258
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	126,535	136,688
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 3
Recurring fair value measurements
Fixed maturities	25,851	26,351
Foreign Government
Recurring fair value measurements
Fixed maturities	133	135
Foreign Government | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	133	135
Foreign Government | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	133	135
Residential Mortgage-backed
Recurring fair value measurements
Fixed maturities	7,739	6,875
Residential Mortgage-backed | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	7,739	6,875
Residential Mortgage-backed | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	7,739	6,875
Commercial Mortgage-backed
Recurring fair value measurements
Fixed maturities	20,600	20,388
Commercial Mortgage-backed | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	20,600	20,388
Commercial Mortgage-backed | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	20,600	20,388
Asset-backed
Recurring fair value measurements
Fixed maturities	30,502	33,686
Asset-backed | Fair Value, Measurements, Recurring
Recurring fair value measurements
Fixed maturities	30,502	33,686
Asset-backed | Fair Value, Measurements, Recurring | Level 2
Recurring fair value measurements
Fixed maturities	27,149	30,428
Asset-backed | Fair Value, Measurements, Recurring | Level 3
Recurring fair value measurements
Fixed maturities	$ 3,353	$ 3,258

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Assets and Liabilities Measured at Fair Value - Summary of Changes in Fair Value of Level 3 Assets Held at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Net Income (Loss)	Net Income (Loss)
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration]	OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax	OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax
Fixed Maturities, Available-for-Sale | Level 3
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Financial Assets, Beginning Balance	$ 30,102	$ 30,566
Total gains (losses) included in: Net Income (loss)	(89)	68
Total gains (losses) included in: OCI	3	306
Purchases	3,207	3,640
Sales	(3,273)	(4,850)
Net Transfers	(246)	372
Financial Assets, Ending Balance	29,704	30,102
State and Political Subdivisions | Fixed Maturities, Available-for-Sale | Level 3
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Financial Assets, Beginning Balance	492	442
Total gains (losses) included in: OCI	8	50
Financial Assets, Ending Balance	500	492
Corporate and Miscellaneous | Fixed Maturities, Available-for-Sale | Level 3
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Financial Assets, Beginning Balance	26,351	26,991
Total gains (losses) included in: Net Income (loss)	(142)	(38)
Total gains (losses) included in: OCI	14	74
Purchases	3,064	2,982
Sales	(3,190)	(4,030)
Net Transfers	(246)	372
Financial Assets, Ending Balance	25,851	26,351
Asset-backed | Fixed Maturities, Available-for-Sale | Level 3
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Financial Assets, Beginning Balance	3,259	3,133
Total gains (losses) included in: Net Income (loss)	53	106
Total gains (losses) included in: OCI	(19)	182
Purchases	143	658
Sales	(83)	(820)
Financial Assets, Ending Balance	$ 3,353	$ 3,259

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Assets and Liabilities Measured at Fair Value - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) Investment	Dec. 31, 2023 USD ($) Investment
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Number of investments transferred from level 3 to level 2 | Investment	1	1
Number of investments transferred from level 2 to level 3 | Investment	0	3
Mortgage loans | $	$ 39,603	$ 40,534
Second and Mezzanine Mortgages
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Mortgage loans | $	$ 1,005	$ 1,098

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Assets and Liabilities Measured at Fair Value - Summary of Carrying Amount and Estimated Fair Values of Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Carrying Value
Financial instruments recorded as assets:
Mortgage loans	$ 39,603	$ 40,534
Policyholder loans	7,216	7,149
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	16,017	16,307
Long/short-term debt	51,259	49,010
Policyholder account balances	69,414	70,726
Estimated Fair Value
Financial instruments recorded as assets:
Mortgage loans	36,357	37,005
Policyholder loans	8,310	8,234
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	15,119	15,319
Long/short-term debt	49,244	51,927
Policyholder account balances	64,748	65,881
Estimated Fair Value | Level 3
Financial instruments recorded as assets:
Mortgage loans	36,357	37,005
Policyholder loans	8,310	8,234
Financial instruments recorded as liabilities:
Future policy benefits, excluding term life reserves	15,119	15,319
Long/short-term debt	49,244	51,927
Policyholder account balances	$ 64,748	$ 65,881

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Long and Short-Term Debt - Additional Information (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Net advance from external party	$ 36,622,000	$ 40,393,000
Federal Home Loan Bank of Chicago
Debt Instrument [Line Items]
Outstanding borrowings	5,300,000
Federal Home Loan Bank of Chicago | Other Invested Assets
Debt Instrument [Line Items]
Common stock held	$ 270,000	$ 270,000

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Long and Short-Term Debt - Schedule of Long Term and Short Term Debt Pay Back (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Due in one year or less	$ 12,976
Due after one year through two years	6,408
Due after two years through three years	5,994
Due after three years through four years	5,556
Due after four years through five years	5,091
Due after five years	39,837
Less discount	(24,603)
Total long/short-term debt	$ 51,259

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Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Other comprehensive income (loss)
Balance – beginning of period	$ 110,213
Unrealized holding (losses) gains from changes in the market value of securities	(1,991)	$ 7,927
Impact on Policy benefit liabilities of changes in market value of securities	199	(251)
Income tax benefit (expense)	313	(1,363)
Total other comprehensive income (loss)	(1,479)	6,313
Balance – end of period	103,208	115,588
Net Unrealized Gains (Losses) on Investments with Credit Losses
Other comprehensive income (loss)
Balance – beginning of period	362	362
Balance – end of period	362	362
Net Unrealized Gains (Losses) on Other Investments
Other comprehensive income (loss)
Balance – beginning of period	(21,584)	(30,534)
Unrealized holding (losses) gains from changes in the market value of securities	(1,991)	7,927
Impact on Policy benefit liabilities of changes in market value of securities	199	(251)
Income tax benefit (expense)	313	(1,363)
Total other comprehensive income (loss)	(1,479)	6,313
Balance – end of period	(23,063)	(24,221)
Accumulated Other Comprehensive Income (Loss)
Other comprehensive income (loss)
Balance – beginning of period	(21,222)	(30,172)
Balance – end of period	$ (22,701)	$ (23,859)

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Business Segments - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 Segment
Segment Reporting [Abstract]
Number of reportable segments	3

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Business Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Net insurance premiums	$ 22,557	$ 24,338
Net investment income	4,135	4,347
Net (losses) gains on investments	(380)	(539)
Earned commissions	16,798	14,749
Other income	2,383	1,727
Total revenues	45,493	44,622
Life, annuity, and health claim benefits	18,488	17,060
Operating costs and expenses	29,468	25,769
Amortization of deferred policy acquisition costs	3,749	3,648
Total benefits and expenses	51,705	46,477
Income (loss) before income tax	(6,212)	(1,855)
Investments and cash	365,516		$ 371,473
Commissions and agent balances	58,291		53,494
Deferred policy acquisition costs	89,186		88,076
Intangible assets	1,635		1,635
Reinsurance recoverables net	240,224		238,598
Deferred income tax assets, net	33,396		32,396
Other	39,086		37,146
Total assets	827,334		822,818
Operating Segments | Insurance
Segment Reporting Information [Line Items]
Net insurance premiums	22,557	24,338
Net investment income	4,079	4,273
Net (losses) gains on investments	(380)	(307)
Other income	438	275
Total revenues	26,694	28,579
Life, annuity, and health claim benefits	18,488	17,060
Operating costs and expenses	8,199	7,704
Amortization of deferred policy acquisition costs	3,749	3,648
Total benefits and expenses	30,436	28,412
Income (loss) before income tax	(3,742)	167
Investments and cash	364,457		367,746
Commissions and agent balances	13,059		8,471
Deferred policy acquisition costs	89,186		88,076
Reinsurance recoverables net	240,224		238,598
Deferred income tax assets, net	20,612		19,195
Other	29,600		27,623
Total assets	757,138		749,709
Operating Segments | Agency
Segment Reporting Information [Line Items]
Earned commissions	16,798	15,094
Other income	1,945	1,452
Total revenues	18,743	16,546
Operating costs and expenses	19,814	16,419
Total benefits and expenses	19,814	16,419
Income (loss) before income tax	(1,071)	127
Investments and cash	844		643
Commissions and agent balances	45,232		45,023
Intangible assets	1,635		1,635
Other	9,095		9,009
Total assets	56,806		56,310
Operating Segments | Corporate & Other
Segment Reporting Information [Line Items]
Net investment income	56	74
Net (losses) gains on investments		(232)
Earned commissions		(345)
Total revenues	56	(503)
Operating costs and expenses	1,455	1,646
Total benefits and expenses	1,455	1,646
Income (loss) before income tax	(1,399)	$ (2,149)
Investments and cash	215		3,084
Deferred income tax assets, net	12,784		13,201
Other	391		514
Total assets	$ 13,390		$ 16,799