Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

The Company has two reportable segments:  Life Insurance and Home Service Insurance.  

Our Life Insurance segment primarily issues endowment contracts, which are principally accumulation contracts that incorporate an element of life insurance protection and ordinary whole life insurance, to non-U.S. residents through CICA Ltd.  These contracts are designed to provide a fixed amount of insurance coverage over the life of the insured and may utilize rider benefits to provide additional coverage and annuity benefits to enhance accumulations. CICA and CNLIC issued ordinary whole-life, credit life and disability and accident and health related policies, throughout the Midwest and southern U.S. until they ceased most domestic sales beginning January 1, 2017. We restarted domestic sales in Florida in 2021.

Our domestic Home Service Insurance segment operates through our subsidiaries SPLIC, MGLIC and SPFIC, and focuses on the life insurance needs of the middle- and lower-income markets, primarily in Louisiana, Mississippi and Arkansas.  Our policies are sold and serviced through funeral homes and independent agents who sell policies, collect premiums and service policyholders.  To a lesser extent, our Home Service Insurance segment sells limited liability, named peril property policies covering dwelling and contents.

The Company also operates other non-insurance portions of the Company ("Other Non-Insurance Enterprises"), which primarily include the Company’s IT and Corporate-support functions that are included in the tables presented. The Company's Other Non-Insurance Enterprises are the only reportable difference between segments and consolidated operations.

The accounting policies of the reportable segments and Other Non-Insurance Enterprises are presented in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial statements.  The Company evaluates profit and loss performance based on U.S. GAAP income before federal income taxes for its two reportable segments.

	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Three Months Ended March 31, 2021
(In thousands)
Revenues:
Premiums	$	27,063	11,969	—	39,032
Net investment income	11,598		3,345	301	15,244
Realized investment gains (losses), net	(108)		223	177	292
Other income	913		2	—	915
Total revenues	39,466		15,539	478	55,483
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	23,270		7,319	—	30,589
Increase in future policy benefit reserves	3,658		1,574	—	5,232
Policyholders' dividends	1,296		10	—	1,306
Total insurance benefits paid or provided	28,224		8,903	—	37,127
Commissions	4,231		3,926	—	8,157
Other general expenses	5,226		3,794	2,362	11,382
Capitalization of deferred policy acquisition costs	(3,561)		(1,424)	—	(4,985)
Amortization of deferred policy acquisition costs	5,348		835	—	6,183
Amortization of cost of insurance acquired	104		263	—	367
Total benefits and expenses	39,572		16,297	2,362	58,231
Loss before federal income tax expense	$	(106)	(758)	(1,884)	(2,748)

	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Three Months Ended March 31, 2020
(In thousands)
Revenues:
Premiums	$	29,819	11,498	—	41,317
Net investment income	11,480		3,332	357	15,169
Realized investment gains (losses), net	735		(1,717)	(324)	(1,306)
Other income	524		18	—	542
Total revenues	42,558		13,131	33	55,722
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	20,160		6,289	—	26,449
Increase in future policy benefit reserves	8,146		1,325	—	9,471
Policyholders' dividends	1,225		8	—	1,233
Total insurance benefits paid or provided	29,531		7,622	—	37,153
Commissions	4,478		3,375	—	7,853
Other general expenses	4,948		4,316	2,209	11,473
Capitalization of deferred policy acquisition costs	(3,921)		(1,088)	—	(5,009)
Amortization of deferred policy acquisition costs	5,318		801	—	6,119
Amortization of cost of insurance acquired	118		250	—	368
Total benefits and expenses	40,472		15,276	2,209	57,957
Income (loss) before federal income tax expense	$	2,086	(2,145)	(2,176)	(2,235)