Segment and Other Operating Information

12 Months Ended

Dec. 31, 2022

Segment Reporting Information, Operating Income (Loss) [Abstract]

Segment and Other Operating Information

The Company has two reportable segments:  Life Insurance and Home Service Insurance. Our Life Insurance segment 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 International.  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 issues credit life and credit disability and accident and health related policies throughout the Midwest and southern U.S. CNLIC issues ordinary whole life and critical illness products.

Our Home Service Insurance segment operates through our subsidiaries SPLIC, Magnolia 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 165 funeral homes and 430 independent agents who sell policies, collect premiums and service policyholders.  Our Home Service Insurance segment also sells property insurance policies in Louisiana.

The Life Insurance and Home Service Insurance portions of the Company constitute separate businesses. In addition to the Life Insurance and Home Service Insurance business, 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 is included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company.

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 described in the summary of significant accounting policies.  The Company evaluates profit and loss performance based on U.S. GAAP net income (loss) before federal income taxes for its two reportable segments.

The Company's Other Non-Insurance Enterprises represents the only difference between segments and reported consolidated operations.

Year ended December 31, 2022 (In thousands)	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Revenues:
Premiums
Life insurance	$	124,156	43,430	—	167,586
Accident and health insurance	497		781	—	1,278
Property insurance	—		4,850	—	4,850
Net investment income (loss)	50,680		13,632	1,114	65,426
Investment related gains (losses), net	(8,826)		(1,277)	(188)	(10,291)
Other income (loss)	3,668		1	6	3,675
Total revenue	170,175		61,417	932	232,524
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	95,576		24,359	—	119,935
Increase in future policy benefit reserves	23,938		5,702	—	29,640
Policyholders' dividends	5,990		23	—	6,013
Total insurance benefits paid or provided	125,504		30,084	—	155,588
Commissions	20,031		16,191	—	36,222
Other general expenses	23,192		16,444	5,541	45,177
Capitalization of deferred policy acquisition costs	(17,942)		(6,957)	—	(24,899)
Amortization of deferred policy acquisition costs	19,810		6,719	—	26,529
Amortization of cost of insurance acquired	262		712	—	974
Total benefits and expenses	170,857		63,193	5,541	239,591
Income (loss) before federal income tax	$	(682)	(1,776)	(4,609)	(7,067)

Year ended December 31, 2021 (In thousands)	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Revenues:
Premiums
Life insurance	$	125,558	44,243	—	169,801
Accident and health insurance	500		750	—	1,250
Property insurance	—		3,677	—	3,677
Net investment income (loss)	47,216		13,224	1,055	61,495
Investment related gains (losses), net	9,176		618	1,197	10,991
Other income (loss)	3,362		7	(37)	3,332
Total revenue	185,812		62,519	2,215	250,546
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	91,390		28,345	—	119,735
Increase in future policy benefit reserves	29,407		7,037	—	36,444
Policyholders' dividends	6,140		40	—	6,180
Total insurance benefits paid or provided	126,937		35,422	—	162,359
Commissions	18,747		16,716	—	35,463
Other general expenses	20,846		14,739	7,785	43,370
Capitalization of deferred policy acquisition costs	(16,174)		(6,566)	—	(22,740)
Amortization of deferred policy acquisition costs	21,571		3,381	—	24,952
Amortization of cost of insurance acquired	343		863	—	1,206
Goodwill impairment	12,624		—	—	12,624
Total benefits and expenses	184,894		64,555	7,785	257,234
Income (loss) before federal income tax	$	918	(2,036)	(5,570)	(6,688)

The table below summarizes assets by segment.

December 31, (In thousands)	2022		2021
Assets:
Life Insurance	$	1,176,246	1,390,392
Home Service Insurance	338,977		407,603
Other Non-Insurance Enterprises	54,747		56,516
Total assets	$	1,569,970	1,854,511

GEOGRAPHIC INFORMATION

The following table sets forth, by country, the Company's annual total of earned premiums from geographic area for the years indicated:

Years ended December 31, (In thousands)	2022		2021
Area:
United States	$	54,712	56,000
Colombia	25,181		24,829
Taiwan	18,236		19,042
Venezuela	16,429		17,788
Ecuador	12,992		13,115
Argentina	9,251		9,160
Other foreign countries	40,172		38,871
Net reinsurance	(3,259)		(4,077)
Total premiums	$	173,714	174,728