XML 31 R13.htm IDEA: XBRL DOCUMENT v3.23.1
Policyholders' Liabilities
 3 Months Ended
Mar. 31, 2023
Insurance [Abstract]  
Policyholders' Liabilities POLICYHOLDERS’ LIABILITIES
LIABILITY FOR FUTURE POLICY BENEFITS

The following tables summarize balances of and changes in the liability for future policy benefits for our reporting cohorts: Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy, and Permanent Limited Pay, which summarizes insurance policies with premiums payable for a limited time after which the policy is fully paid up. Both reporting cohorts include whole life and endowment policies.
Life Insurance Segment
March 31, 2023
(In thousands)
PermanentPermanent Limited PayTotal
Present Value of Expected Net Premiums
Balance, beginning of year$235,228 10,209 245,437 
Beginning balance at original discount rate247,601 10,682 258,283 
Effects of actual variances from expected experience1,742 365 2,107 
Adjusted beginning of year balance249,343 11,047 260,390 
Issuances6,236 759 6,995 
Interest accrual2,272 72 2,344 
Net premiums collected(9,715)(751)(10,466)
Derecognition and other153 38 191 
Ending balance at original discount rate248,289 11,165 259,454 
Effect of changes in discount rates(8,766)(370)(9,136)
Balance, end of period$239,523 10,795 250,318 
Present Value of Expected Future Policy Benefits
Balance, beginning of year$947,415 195,612 1,143,027 
Beginning balance at original discount rate996,169 208,051 1,204,220 
Effects of actual variances from expected experience2,538 1,045 3,583 
Adjusted beginning of year balance998,707 209,096 1,207,803 
Issuances6,375 785 7,160 
Interest accrual10,842 2,112 12,954 
Benefit payments(19,153)(4,873)(24,026)
Derecognition and other14 12 26 
Ending balance at original discount rate996,785 207,132 1,203,917 
Effect of changes in discount rates(31,065)(9,459)(40,524)
Balance, end of period$965,720 197,673 1,163,393 
Net liability for future policy benefits$726,197 186,878 913,075 

The Life Insurance segment impact of updating actual experience for the current period contributed to an increase in liabilities primarily due to higher benefits than expected.
Home Service Insurance
March 31, 2023
(In thousands)
PermanentPermanent Limited PayTotal
Present Value of Expected Net Premiums
Balance, beginning of year$93,508 13,255 106,763 
Beginning balance at original discount rate100,225 14,394 114,619 
Effects of actual variances from expected experience(1,371)(809)(2,180)
Adjusted beginning of year balance98,854 13,585 112,439 
Issuances4,789 1,176 5,965 
Interest accrual986 114 1,100 
Net premiums collected(2,967)467 (2,500)
Derecognition and other132 46 178 
Ending balance at original discount rate101,794 15,388 117,182 
Effect of changes in discount rates(4,925)(873)(5,798)
Balance, end of period$96,869 14,515 111,384 
Present Value of Expected Future Policy Benefits
Balance, beginning of year$200,351 116,356 316,707 
Beginning balance at original discount rate214,188 121,908 336,096 
Effects of actual variances from expected experience(1,299)25 (1,274)
Adjusted beginning of year balance212,889 121,933 334,822 
Issuances4,789 1,176 5,965 
Interest accrual2,310 1,410 3,720 
Benefit payments(4,178)(1,748)(5,926)
Derecognition and other132 45 177 
Ending balance at original discount rate215,942 122,816 338,758 
Effect of changes in discount rates(10,101)(3,712)(13,813)
Balance, end of period$205,841 119,104 324,945 
Net liability for future policy benefits$108,972 104,589 213,561 

Net premiums collected are defined as the transactional gross premiums collected in the current period times the net premium ratio. Issuances are calculated as the present value, using the locked-in discount rate of the expected net premiums or the expected future policy benefits related to new policies issued during the three months ended March 31, 2023 and 2022. Interest accrual is the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the locked-in discount rate. Benefit payments are the transactional benefits (death, lapse, surrenders and maturities) paid in the current period. Derecognition refers to a subset of the issuances or the present value of future premiums released on new issues that lapsed during the three months ended March 31, 2023 and 2022 as well as other reconciling items. The effects of actual variances from expected experience lines are primarily impacted by the actual policy cash flows during the period compared to that which was expected in the reserve assumptions. If the net of the two lines is a positive number, the implication is an unfavorable result with policy cash flows less favorable than assumed while a negative number implies a favorable result compared to assumptions. Our policy experience will vary from actual experience in any one period, either favorably or unfavorably.
The Home Service Insurance segment impact of updating actual experience for the current period contributed to an increase in liabilities due to higher premiums collected than expected.

Life Insurance
March 31, 2022
(In thousands)
PermanentPermanent Limited PayTotal
Present Value of Expected Net Premiums
Balance, beginning of year$269,528 4,939 274,467 
Beginning balance at original discount rate246,386 5,093 251,479 
Effects of actual variances from expected experience1,693 422 2,115 
Adjusted beginning of year balance248,079 5,515 253,594 
Issuances5,795 1,121 6,916 
Interest accrual2,088 (2)2,086 
Net premiums collected(9,166)133 (9,033)
Derecognition and other57 24 81 
Ending balance at original discount rate246,853 6,791 253,644 
Effect of changes in discount rates6,040 (291)5,749 
Balance, end of period$252,893 6,500 259,393 
Present Value of Expected Future Policy Benefits
Balance, beginning of year$1,168,282 240,679 1,408,961 
Beginning balance at original discount rate990,921 207,105 1,198,026 
Effects of actual variances from expected experience1,998 1,407 3,405 
Adjusted beginning of year balance992,919 208,512 1,201,431 
Issuances5,863 1,141 7,004 
Interest accrual10,658 2,125 12,783 
Benefit payments(17,715)(3,918)(21,633)
Derecognition and other(10)4 (6)
Ending balance at original discount rate991,715 207,864 1,199,579 
Effect of changes in discount rates72,720 12,917 85,637 
Balance, end of period$1,064,435 220,781 1,285,216 
Net liability for future policy benefits$811,542 214,281 1,025,823 

The Life Insurance segment impact of updating actual experience for the current period contributed to an increase in liabilities primarily due to higher benefits paid than expected.
Home Service Insurance
March 31, 2022
(In thousands)
PermanentPermanent Limited PayTotal
Present Value of Expected Net Premiums
Balance, beginning of year$104,556 10,196 114,752 
Beginning balance at original discount rate90,012 9,532 99,544 
Effects of actual variances from expected experience876 (1,083)(207)
Adjusted beginning of year balance90,888 8,449 99,337 
Issuances4,349 711 5,060 
Interest accrual822 43 865 
Net premiums collected(2,723)1,610 (1,113)
Derecognition and other(1,113)24 (1,089)
Ending balance at original discount rate92,223 10,837 103,060 
Effect of changes in discount rates5,130 (112)5,018 
Balance, end of period$97,353 10,725 108,078 
Present Value of Expected Future Policy Benefits
Balance, beginning of year$266,206 161,715 427,921 
Beginning balance at original discount rate205,340 117,425 322,765 
Effects of actual variances from expected experience1,090 625 1,715 
Adjusted beginning of year balance206,430 118,050 324,480 
Issuances4,350 708 5,058 
Interest accrual2,164 1,349 3,513 
Benefit payments(5,832)(2,057)(7,889)
Derecognition and other(1,114)24 (1,090)
Ending balance at original discount rate205,998 118,074 324,072 
Effect of changes in discount rates28,342 23,076 51,418 
Balance, end of period$234,340 141,150 375,490 
Net liability for future policy benefits$136,987 130,425 267,412 

The Home Service Insurance segment impact of updating actual experience for the current period contributed to an increase in liabilities due to higher premiums collected than expected.
The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits in the consolidated balance sheet.
March 31, 2023
March 31, 2022
(In thousands)Life
Insurance		Home Service
Insurance		ConsolidatedLife
Insurance		Home Service
Insurance		Consolidated
Life Insurance
Permanent$726,197 108,972 835,169 811,542 136,987 948,529 
Permanent limited pay186,878 104,589 291,467 214,281 130,425 344,706 
Deferred profit liability26,347 25,113 51,460 23,042 22,502 45,544 
Other26,474 13,725 40,199 27,918 13,403 41,321 
Total life insurance965,896 252,399 1,218,295 1,076,783 303,317 1,380,100 
Accident & Health
Other599 249 848 521 245 766 
Total$966,495 252,648 1,219,143 1,077,304 303,562 1,380,866 

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.

As of March 31,20232022
(In thousands)Life
Insurance		Home Service
Insurance		Life
Insurance		Home Service
Insurance
Undiscounted:
Permanent
Expected future gross premiums607,319 463,491 623,969 459,627 
Expected future benefit payments$1,478,777 478,978 1,468,066 453,855 
Permanent Limited Pay
Expected future gross premiums46,845 77,743 47,904 65,371 
Expected future benefit payments321,985 319,390 322,955 304,278 
Discounted:
Permanent
Expected future gross premiums474,777 277,098 523,290 308,271 
Expected future benefit payments$965,720 205,841 1,064,435 234,340 
Permanent Limited Pay
Expected future gross premiums41,719 54,170 44,202 53,038 
Expected future benefit payments197,673 119,104 220,781 141,150 
The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statement of operations:
Life Insurance Home Service Insurance
Three Months Ended March 31, 2023
(In thousands)
Gross PremiumsInterest ExpenseGross PremiumsInterest Expense
Life Insurance
Permanent$22,458 8,570 8,372 1,324 
Permanent Limited Pay4,168 2,336 2,154 1,586 
Other77 — 368 — 
Reinsurance(648)— (15)— 
Total, net of reinsurance26,055 10,906 10,879 2,910 
Accident & Health
Other152 — 206 — 
Reinsurance— — — — 
Total, net of reinsurance152 — 206 — 
Total$26,207 10,906 11,085 2,910 

Life InsuranceHome Service Insurance
Three Months Ended March 31, 2022
(In thousands)
Gross PremiumsInterest ExpenseGross PremiumsInterest Expense
Life Insurance
Permanent$22,257 8,570 8,456 1,342 
Permanent Limited Pay3,656 2,350 2,041 1,559 
Other1,425 — — — 
Reinsurance(500)— (14)— 
Total, net of reinsurance26,838 10,920 10,483 2,901 
Accident & Health
Other94 — 193 — 
Reinsurance(1)— — — 
Total, net of reinsurance93 — 193 — 
Total$26,931 10,920 10,676 2,901 

The following table provides the weighted-average durations of the liability for future policy benefits.

March 31, 2023March 31, 2022
(In years)Life
Insurance		Home Service
Insurance		Life
Insurance		Home Service
Insurance
Permanent
Original duration8.115.98.816.0
Current duration8.416.19.116.3
Permanent Limited Pay
Original duration7.614.58.015.2
Current duration7.615.28.417.5
The following table provides the weighted-average interest rates for the liability for future policy benefits.
March 31, 2023March 31, 2022
(In thousands)Life
Insurance		Home Service
Insurance		Life
Insurance		Home Service
Insurance
Permanent
Original discount rate4.92 %4.99 %4.93 %5.01 %
Current discount rate4.86 %5.09 %3.43 %3.68 %
Permanent Limited Pay
Original discount rate4.30 %5.05 %4.33 %5.06 %
Current discount rate4.85 %5.08 %3.38 %3.67 %
LIABILITY FOR POLICYHOLDERS’ ACCOUNT BALANCES

The following table presents the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited and the respective guaranteed minimums.
March 31, 2023At Guaranteed Minimum
1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
Greater Than 150 Basis Points Above
Total
(In thousands)Range of Guaranteed Minimum Crediting Rate
Life Insurance:
SCWOLC (1)
0.00% - 1.49%
$— — — — — 
1.50% - 2.99%
1,452 — — — 1,452 
3.00% - 4.49%
33,940 — — — 33,940 
Greater or equal to 4.50%
134 — — — 134 
Total$35,526 — — — 35,526 
Fixed annuity
0.00% - 1.49%
$197 — 1,144 — 1,341 
1.50% - 2.99%
13,078 — 59 — 13,137 
3.00% - 4.49%
21,568 10 — — 21,578 
Greater or equal to 4.50%
30,944 — — — 30,944 
Total$65,787 10 1,203 — 67,000 
Dividend accumulations
0.00% - 1.49%
$239 — — 3,499 3,738 
1.50% - 2.99%
11,144 551 7 — 11,702 
3.00% - 4.49%
26,985 — — — 26,985 
Greater or equal to 4.50%
3 — — — 3 
Total$38,371 551 7 3,499 42,428 
Premiums paid in advance
0.00% - 1.49%
$— — — 34,122 34,122 
1.50% - 2.99%
— — — — — 
3.00% - 4.49%
— — — — — 
Greater or equal to 4.50%
— — — — — 
Total$— — — 34,122 34,122 
Home Service Insurance:
SCWOLC (1)
0.00% - 1.49%
$4 — — — 4 
1.50% - 2.99%
250 — — — 250 
3.00% - 4.49%
55 — — — 55 
Greater or equal to 4.50%
— — — — — 
Total$309 — — — 309 
Fixed annuity
0.00% - 1.49%
$296 — — 392 688 
1.50% - 2.99%
— — — — — 
3.00% - 4.49%
18,696 — — — 18,696 
Greater or equal to 4.50%
777 — — — 777 
Total$19,769 — — 392 20,161 
Dividend accumulations
0.00% - 1.49%
$— — — 173 173 
1.50% - 2.99%
5 42 — — 47 
3.00% - 4.49%
20 — — — 20 
Greater or equal to 4.50%
— — — — — 
Total$25 42 — 173 240 
(1) Supplemental Contracts Without Life Contingencies
March 31, 2022At Guaranteed Minimum
1 Basis Point-50 Basis Points Above
51 Basis Points-150 Basis Points Above
Greater Than 150 Basis Points Above
Total
(In thousands)Range of Guaranteed Minimum Crediting Rate
Life Insurance:
SCWOLC (1)
0.00% - 1.49%
$— — — — — 
1.50% - 2.99%
256 — — — 256 
3.00% - 4.49%
24,862 — — — 24,862 
Greater or equal to 4.50%
145 — — — 145 
Total$25,263 — — — 25,263 
Fixed annuity
0.00% - 1.49%
$203 — 813 — 1,016 
1.50% - 2.99%
10,584 — 12 — 10,596 
3.00% - 4.49%
21,976 9 — — 21,985 
Greater or equal to 4.50%
30,662 — — — 30,662 
Total$63,425 9 825 — 64,259 
Dividend accumulations
0.00% - 1.49%
$250 — — 3,529 3,779 
1.50% - 2.99%
8,501 533 11 — 9,045 
3.00% - 4.49%
25,507 — — — 25,507 
Greater or equal to 4.50%
3 — — — 3 
Total$34,261 533 11 3,529 38,334 
Premiums paid in advance
0.00% - 1.49%
$— — — 37,922 37,922 
1.50% - 2.99%
— — — — — 
3.00% - 4.49%
— — — — — 
Greater or equal to 4.50%
— — — — — 
Total$— — — 37,922 37,922 
Home Service Insurance:
SCWOLC (1)
0.00% - 1.49%
$6 — — — 6 
1.50% - 2.99%
249 — — — 249 
3.00% - 4.49%
49 — — — 49 
Greater or equal to 4.50%
— — — — — 
Total$304 — — — 304 
Fixed annuity
0.00% - 1.49%
$284 — — 408 692 
1.50% - 2.99%
— — — — — 
3.00% - 4.49%
18,743 — — — 18,743 
Greater or equal to 4.50%
903 — — — 903 
Total$19,930 — — 408 20,338 
Dividend accumulations
0.00% - 1.49%
$— — — 173 173 
1.50% - 2.99%
5 44 — — 49 
3.00% - 4.49%
19 — — — 19 
Greater or equal to 4.50%
— — — — — 
Total$24 44 — 173 241 
(1) Supplemental Contracts Without Life Contingencies
The following tables summarize balances of and changes in policyholders' account balances.

March 31, 2023
(In thousands)
SCWOLC (1)
Fixed AnnuityDividend
Accumulations		Premiums Paid in Advance
Life Insurance:
Balance, beginning of year$32,667 66,543 41,424 34,603 
Issuances4,788 536 147 905 
Premiums received18 1,025 1,383 145 
Interest credited341 536 322 226 
Less:
Surrenders and withdrawals— 1,640 848 1,757 
Benefit payments2,288 — — — 
Balance, end of period$35,526 67,000 42,428 34,122 
Weighted-average crediting rates4.10 %3.70 %3.49 %3.00 %
Cash surrender value$35,526 67,000 42,428 34,122 
Home Service Insurance:
Balance, beginning of year$328 20,264 239 — 
Issuances— 227 1 — 
Premiums received— 145 1 — 
Interest credited2 132 2 — 
Less:
Surrenders and withdrawals— 607 3 — 
Benefit payments21 — — — 
Balance, end of period$309 20,161 240 — 
Weighted-average crediting rates2.20 %3.10 %3.09 %4.00 %
Cash surrender value$309 20,161 240 — 
Consolidated:
Balance, beginning of year$32,995 86,807 41,663 34,603 
Issuances4,788 763 148 905 
Premiums received18 1,170 1,384 145 
Interest credited343 668 324 226 
Less:
Surrenders and withdrawals— 2,247 851 1,757 
Benefit payments2,309 — — — 
Balance, end of period$35,835 87,161 42,668 34,122 
Weighted-average crediting rates4.05 %3.57 %3.05 %2.98 %
Cash surrender value$35,835 87,161 42,668 34,122 
(1) Supplemental Contracts Without Life Contingencies
March 31, 2022
(In thousands)
SCWOLC (1)
Fixed AnnuityDividend
Accumulations		Premiums Paid in Advance
Life Insurance:
Balance, beginning of year$23,628 63,591 37,513 38,875 
Issuances2,392 604 123 469 
Premiums received12 995 1,264 132 
Interest credited232 517 292 275 
Less:
Surrenders and withdrawals— 1,448 858 1,829 
Benefit payments1,001 — — — 
Balance, end of period$25,263 64,259 38,334 37,922 
Weighted-average crediting rates4.11 %3.76 %3.50 %3.09 %
Cash surrender value$25,263 64,259 38,334 37,922 
Home Service Insurance:
Balance, beginning of year$322 20,326 247 — 
Issuances10 213 3 — 
Premiums received— 189 1 — 
Interest credited2 140 2 — 
Less:
Surrenders and withdrawals— 530 12 — 
Benefit payments30 — — — 
Balance, end of period$304 20,338 241 — 
Weighted-average crediting rates2.13 %3.11 %3.10 %4.00 %
Cash surrender value$304 20,338 241 — 
Consolidated:
Balance, beginning of year$23,950 83,917 37,760 38,875 
Issuances2,402 817 126 469 
Premiums received12 1,184 1,265 132 
Interest credited234 657 294 275 
Less:
Surrenders and withdrawals— 1,978 870 1,829 
Benefit payments1,031 — — — 
Balance, end of period$25,567 84,597 38,575 37,922 
Weighted-average crediting rates4.08 %3.60 %3.08 %3.09 %
Cash surrender value$25,567 84,597 38,575 37,922 
(1) Supplemental Contracts Without Life Contingencies
The following table reconciles policyholders' account balances to the policyholders' account balances' liability in the consolidated balance sheet.

March 31, 2023March 31, 2022
(In thousands)Life
Insurance		Home Service
Insurance		ConsolidatedLife
Insurance		Home Service
Insurance		Consolidated
Annuities:
SCWOLC (1)
$35,526 309 35,835 25,263 304 25,567 
Fixed annuity67,000 20,161 87,161 64,259 20,338 84,597 
Unearned revenue reserve— 1,531 1,531 — 1,588 1,588 
Other1 — 1 — (1)(1)
Total annuities$102,527 22,001 124,528 89,522 22,229 111,751 
(1) Supplemental Contracts Without Life Contingencies
Dividend Accumulations:
Dividend accumulations$42,428 240 42,668 38,334 241 38,575 
Other1 (1)— — — — 
Total dividend accumulations$42,429 239 42,668 38,334 241 38,575 
Premiums Paid in Advance:
Premiums paid in advance$34,122 — 34,122 37,922 — 37,922 
Other2,294 281 2,575 2,180 331 2,511 
Total premiums paid in advance$36,416 281 36,697 40,102 331 40,433