Segment Information

6 Months Ended

Jun. 30, 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 marketing domestically 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 June 30, 2021
(In thousands)
Revenues:
Premiums	$	30,138	12,688	—	42,826
Net investment income	11,879		3,243	198	15,320
Realized investment gains (losses), net	4,644		206	9	4,859
Other income	553		—	—	553
Total revenues	47,214		16,137	207	63,558
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	23,531		5,765	—	29,296
Increase in future policy benefit reserves	4,054		2,233	—	6,287
Policyholders' dividends	1,466		9	—	1,475
Total insurance benefits paid or provided	29,051		8,007	—	37,058
Commissions	4,398		4,403	—	8,801
Other general expenses	5,147		4,084	2,272	11,503
Capitalization of deferred policy acquisition costs	(3,816)		(1,971)	—	(5,787)
Amortization of deferred policy acquisition costs	5,200		874	—	6,074
Amortization of cost of insurance acquired	107		202	—	309
Total benefits and expenses	40,087		15,599	2,272	57,958
Income (loss) before federal income tax expense	$	7,127	538	(2,065)	5,600

	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Six Months Ended June 30, 2021
(In thousands)
Revenues:
Premiums	$	57,201	24,657	—	81,858
Net investment income	23,477		6,588	499	30,564
Realized investment gains, net	4,536		429	186	5,151
Other income	1,466		2	—	1,468
Total revenues	86,680		31,676	685	119,041
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	46,801		13,084	—	59,885
Increase in future policy benefit reserves	7,712		3,807	—	11,519
Policyholders' dividends	2,762		19	—	2,781
Total insurance benefits paid or provided	57,275		16,910	—	74,185
Commissions	8,629		8,329	—	16,958
Other general expenses	10,373		7,878	4,634	22,885
Capitalization of deferred policy acquisition costs	(7,377)		(3,395)	—	(10,772)
Amortization of deferred policy acquisition costs	10,548		1,709	—	12,257
Amortization of cost of insurance acquired	211		465	—	676
Total benefits and expenses	79,659		31,896	4,634	116,189
Income (loss) before federal income tax expense	$	7,021	(220)	(3,949)	2,852

	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Three Months Ended June 30, 2020
(In thousands)
Revenues:
Premiums	$	30,062	11,434	—	41,496
Net investment income	11,345		3,256	314	14,915
Realized investment gains (losses), net	391		924	133	1,448
Other income	482		—	—	482
Total revenues	42,280		15,614	447	58,341
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	20,888		6,866	—	27,754
Increase in future policy benefit reserves	7,384		853	—	8,237
Policyholders' dividends	1,319		9	—	1,328
Total insurance benefits paid or provided	29,591		7,728	—	37,319
Commissions	3,294		3,420	—	6,714
Other general expenses	4,446		4,591	2,102	11,139
Capitalization of deferred policy acquisition costs	(2,716)		(1,015)	—	(3,731)
Amortization of deferred policy acquisition costs	5,419		642	—	6,061
Amortization of cost of insurance acquired	127		274	—	401
Total benefits and expenses	40,161		15,640	2,102	57,903
Income (loss) before federal income tax expense	$	2,119	(26)	(1,655)	438

	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Six Months Ended June 30, 2020
(In thousands)
Revenues:
Premiums	$	59,881	22,932	—	82,813
Net investment income	22,825		6,588	671	30,084
Realized investment gains (losses), net	1,126		(793)	(191)	142
Other income	1,006		18	—	1,024
Total revenues	84,838		28,745	480	114,063
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	41,048		13,155	—	54,203
Increase in future policy benefit reserves	15,530		2,178	—	17,708
Policyholders' dividends	2,544		17	—	2,561
Total insurance benefits paid or provided	59,122		15,350	—	74,472
Commissions	7,772		6,795	—	14,567
Other general expenses	9,394		8,907	4,311	22,612
Capitalization of deferred policy acquisition costs	(6,637)		(2,103)	—	(8,740)
Amortization of deferred policy acquisition costs	10,737		1,443	—	12,180
Amortization of cost of insurance acquired	245		524	—	769
Total benefits and expenses	80,633		30,916	4,311	115,860
Income (loss) before federal income tax expense	$	4,205	(2,171)	(3,831)	(1,797)