Policyholders' Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Liability for Future Policy Benefit, Activity

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.


June 30, 2023 (In thousands)	Life Insurance Segment				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums
Balance, beginning of year	$	235,228	10,209	245,437		93,508	13,255	106,763
Beginning balance at original discount rate	247,601		10,682	258,283		100,225	14,394	114,619

Effects of actual variances from expected experience	3,081		466	3,547		(2,910)	(2,291)	(5,201)
Adjusted beginning of year balance	250,682		11,148	261,830		97,315	12,103	109,418
Issuances	13,189		1,449	14,638		9,091	2,125	11,216
Interest accrual	4,571		150	4,721		1,996	230	2,226
Net premiums collected	(20,049)		(1,203)	(21,252)		(5,919)	948	(4,971)
Derecognition and other	293		60	353		272	82	354
Ending balance at original discount rate	248,686		11,604	260,290		102,755	15,488	118,243
Effect of changes in discount rates	(10,320)		(404)	(10,724)		(5,247)	(927)	(6,174)
Balance, end of period	$	238,366	11,200	249,566		97,508	14,561	112,069

Present Value of Expected Future Policy Benefits
Balance, beginning of year	$	947,415	195,612	1,143,027		200,351	116,356	316,707
Beginning balance at original discount rate	996,169		208,051	1,204,220		214,188	121,908	336,096

Effects of actual variances from expected experience	4,533		2,114	6,647		(2,750)	(579)	(3,329)
Adjusted beginning of year balance	1,000,702		210,165	1,210,867		211,438	121,329	332,767
Issuances	13,442		1,479	14,921		9,090	2,129	11,219
Interest accrual	21,673		4,210	25,883		4,642	2,822	7,464
Benefit payments	(39,414)		(10,676)	(50,090)		(8,532)	(3,317)	(11,849)
Derecognition and other	31		29	60		268	80	348
Ending balance at original discount rate	996,434		205,207	1,201,641		216,906	123,043	339,949
Effect of changes in discount rates	(38,485)		(10,615)	(49,100)		(10,009)	(3,436)	(13,445)
Balance, end of period	$	957,949	194,592	1,152,541		206,897	119,607	326,504

Net liability for future policy benefits	$	719,583	183,392	902,975		109,389	105,046	214,435


June 30, 2022 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums
Balance, beginning of year	$	269,528	4,939	274,467		104,556	10,196	114,752
Beginning balance at original discount rate	246,386		5,093	251,479		90,012	9,532	99,544

Effects of actual variances from expected experience	3,613		539	4,152		2,123	(2,594)	(471)
Adjusted beginning of year balance	249,999		5,632	255,631		92,135	6,938	99,073
Issuances	15,212		2,100	17,312		8,737	2,695	11,432
Interest accrual	4,189		9	4,198		1,660	98	1,758
Net premiums collected	(19,100)		175	(18,925)		(5,444)	3,049	(2,395)
Derecognition and other	199		62	261		(895)	91	(804)
Ending balance at original discount rate	250,499		7,978	258,477		96,193	12,871	109,064
Effect of changes in discount rates	(6,258)		(436)	(6,694)		(2,927)	(882)	(3,809)
Balance, end of period	$	244,241	7,542	251,783		93,266	11,989	105,255

Present Value of Expected Future Policy Benefits
Balance, beginning of year	$	1,168,282	240,679	1,408,961		266,206	161,715	427,921
Beginning balance at original discount rate	990,921		207,105	1,198,026		205,340	117,425	322,765

Effects of actual variances from expected experience	4,412		2,399	6,811		2,428	659	3,087
Adjusted beginning of year balance	995,333		209,504	1,204,837		207,768	118,084	325,852
Issuances	15,471		2,155	17,626		8,743	2,696	11,439
Interest accrual	21,315		4,243	25,558		4,327	2,702	7,029
Benefit payments	(33,133)		(8,086)	(41,219)		(10,216)	(3,681)	(13,897)
Derecognition and other	(42)		7	(35)		(900)	88	(812)
Ending balance at original discount rate	998,944		207,823	1,206,767		209,722	119,889	329,611
Effect of changes in discount rates	(6,954)		(3,148)	(10,102)		672	4,628	5,300
Balance, end of period	$	991,990	204,675	1,196,665		210,394	124,517	334,911

Net liability for future policy benefits	$	747,749	197,133	944,882		117,128	112,528	229,656
Plus: Flooring impact	—		—	—		27	71	98

Net liability for future policy benefits, after flooring impact	$	747,749	197,133	944,882		117,155	112,599	229,754

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets.


	June 30, 2023				June 30, 2022
(In thousands)	Life Insurance		Home Service Insurance	Consolidated	Life Insurance	Home Service Insurance	Consolidated
Life Insurance
Permanent	$	719,583	109,389	828,972	747,749	117,155	864,904
Permanent limited pay	183,392		105,046	288,438	197,133	112,599	309,732
Deferred profit liability	26,602		25,667	52,269	23,379	23,394	46,773
Other	27,781		13,860	41,641	28,286	13,651	41,937
Total life insurance	957,358		253,962	1,211,320	996,547	266,799	1,263,346
Accident & Health

Other	662		264	926	502	243	745

Total future policy benefit reserves	$	958,020	254,226	1,212,246	997,049	267,042	1,264,091

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


	June 30, 2023			June 30, 2022
(In thousands)	Life Insurance		Home Service Insurance	Life Insurance	Home Service Insurance
Undiscounted:
Permanent
Expected future gross premiums	$	603,067	464,108	620,766	465,996
Expected future benefit payments	1,478,283		482,298	1,474,632	460,674

Permanent Limited Pay
Expected future gross premiums	46,441		78,064	48,280	70,669
Expected future benefit payments	319,604		319,950	322,842	308,976





Discounted:
Permanent
Expected future gross premiums	$	467,315	275,847	496,865	288,122
Expected future benefit payments	957,949		206,897	991,990	210,394

Permanent Limited Pay
Expected future gross premiums	41,200		53,518	43,534	52,999
Expected future benefit payments	194,592		119,607	204,675	124,517

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statement of operations:


	Three Months Ended June 30,					Six Months Ended June 30,
	2023			2022		2023		2022
(In thousands)	Gross Premiums		Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense
Life Insurance Segment:
Life Insurance
Permanent	$	22,507	8,532	22,818	8,556	44,965	17,102	45,075	17,126
Permanent Limited Pay	3,610		2,167	3,336	2,305	7,778	4,503	6,992	4,655
Other	2,738		—	3,845	—	2,815	—	5,270	—
Less:
Reinsurance	412		—	253	—	1,060	—	753	—
Total, net of reinsurance	28,443		10,699	29,746	10,861	54,498	21,605	56,584	21,781
Accident & Health

Other	332		—	89	—	484	—	183	—
Less:
Reinsurance	2		—	1	—	2	—	2	—
Total, net of reinsurance	330		—	88	—	482	—	181	—
Total	$	28,773	10,699	29,834	10,861	54,980	21,605	56,765	21,781

Home Service Insurance Segment:
Life Insurance
Permanent	$	8,268	1,322	8,292	1,325	16,640	2,646	16,748	2,667
Permanent Limited Pay	2,117		1,592	2,102	1,561	4,271	3,178	4,143	3,120
Other	466		—	1,051	—	834	—	1,051	—
Less:
Reinsurance	2		—	5	—	17	—	19	—
Total, net of reinsurance	10,849		2,914	11,440	2,886	21,728	5,824	21,923	5,787
Accident & Health

Other	217		—	192	—	423	—	385	—
Less:
Reinsurance	—		—	—	—	—	—	—	—
Total, net of reinsurance	217		—	192	—	423	—	385	—
Total	$	11,066	2,914	11,632	2,886	22,151	5,824	22,308	5,787

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


	June 30, 2023		June 30, 2022
(In years)	Life Insurance	Home Service Insurance	Life Insurance	Home Service Insurance
Permanent
Duration at original discount rate	8.1	16.2	8.1	15.4
Duration at current discount rate	8.4	16.5	8.7	16.4
Permanent Limited Pay
Duration at original discount rate	7.7	14.7	7.6	14.4
Duration at current discount rate	7.6	15.3	7.9	15.7

The following table provides the weighted-average interest rates for the liability for future policy benefits.


	June 30, 2023				June 30, 2022
	Life Insurance		Home Service Insurance		Life Insurance		Home Service Insurance
Permanent
Interest rate at original discount rate	4.91	%	4.98	%	4.95	%	5.02	%
Interest rate at current discount rate	5.02	%	5.09	%	4.40	%	4.60	%
Permanent Limited Pay
Interest rate at original discount rate	4.30	%	5.04	%	4.32	%	5.06	%
Interest rate at current discount rate	4.99	%	5.09	%	4.36	%	4.59	%

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

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.


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2023 (In thousands)
Range of Guaranteed Minimum Crediting Rates
0.00% - 1.49%	$	749	—	1,131	37,814	39,694
1.50% - 2.99%	28,207		616	62	—	28,885
3.00% - 4.49%	103,006		10	—	—	103,016
Greater or equal to 4.50%	31,560		—	—	—	31,560
Total	$	163,522	626	1,193	37,814	203,155


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2022 (In thousands)
Range of Guaranteed Minimum Crediting Rates
0.00% - 1.49%	$	715	—	768	41,087	42,570
1.50% - 2.99%	20,857		592	23	—	21,472
3.00% - 4.49%	94,093		10	—	—	94,103
Greater or equal to 4.50%	31,750		—	—	—	31,750
Total	$	147,415	602	791	41,087	189,895

Policyholder Account Balance

The following tables summarize balances of and changes in policyholders' account balances.


June 30, 2023 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	32,995		86,807		41,663		34,603
Issuances	10,989			1,515		298		2,043
Premiums received	49			2,147		2,816		515

Interest credited	724			1,335		670		998

Less:
Surrenders and withdrawals	—			5,246		2,063		4,339
Benefit payments	5,364			—		—		—
Balance, end of period	$	39,393		86,558		43,384		33,820
Weighted-average crediting rates	4.03		%	3.57	%	3.05	%	2.97	%

Cash surrender value	$	39,393		86,558		43,384		33,820


June 30, 2022 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	23,950		83,917		37,760		38,875
Issuances	5,499			1,577		267		1,138
Premiums received	26			2,352		2,694		332

Interest credited	490			1,314		591		521

Less:
Surrenders and withdrawals	—			3,981		1,690		3,911
Benefit payments	1,826			—		—		—
Balance, end of period	$	28,139		85,179		39,622		36,955
Weighted-average crediting rates	4.08		%	3.60	%	3.08	%	3.07	%

Cash surrender value	$	28,139		85,179		39,622		36,955

The following table reconciles policyholders' account balances shown above to the policyholders' account balances liability in the consolidated balance sheets.


As of June 30, (In thousands)	2023		2022
Annuities:
Supplemental contracts without life contingencies	$	39,393	28,139
Fixed annuity	86,558		85,179
Unearned revenue reserve	1,534		1,605

Total annuities	$	127,485	114,923







Premiums Paid in Advance:
Premiums paid in advance	$	33,820	36,955
Other	2,612		2,681
Total premiums paid in advance	$	36,432	39,636