Policyholders' Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

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.


March 31, 2024 (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	$	244,917	13,260	258,177		98,831	14,926	113,757
Beginning balance at original discount rate	252,426		13,533	265,959		102,045	15,512	117,557

Effects of actual variances from expected experience	(1,772)		204	(1,568)		(1,703)	(1,078)	(2,781)
Adjusted beginning of year balance	250,654		13,737	264,391		100,342	14,434	114,776
Issuances	18,208		604	18,812		4,152	685	4,837
Interest accrual	2,550		117	2,667		1,057	132	1,189
Net premiums collected	(10,497)		(683)	(11,180)		(3,016)	80	(2,936)
Derecognition and other	(2,456)		47	(2,409)		74	7	81
Ending balance at original discount rate	258,459		13,822	272,281		102,609	15,338	117,947
Effect of changes in discount rates	(9,285)		(325)	(9,610)		(5,401)	(832)	(6,233)
Balance, end of period	$	249,174	13,497	262,671		97,208	14,506	111,714

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	973,350	195,122	1,168,472		211,946	122,784	334,730
Beginning balance at original discount rate	995,962		202,755	1,198,717		217,524	123,941	341,465

Effects of actual variances from expected experience	(1,592)		1,094	(498)		(1,697)	(748)	(2,445)
Adjusted beginning of year balance	994,370		203,849	1,198,219		215,827	123,193	339,020
Issuances	18,424		649	19,073		4,153	683	4,836
Interest accrual	11,014		2,066	13,080		2,401	1,437	3,838
Benefit payments	(20,342)		(4,411)	(24,753)		(3,672)	(1,436)	(5,108)
Derecognition and other	(2,976)		2	(2,974)		73	7	80
Ending balance at original discount rate	1,000,490		202,155	1,202,645		218,782	123,884	342,666
Effect of changes in discount rates	(41,718)		(12,311)	(54,029)		(13,926)	(6,975)	(20,901)
Balance, end of period	$	958,772	189,844	1,148,616		204,856	116,909	321,765

Net liability for future policy benefits	$	709,598	176,347	885,945		107,648	102,403	210,051


March 31, 2023 (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	$	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	1,742		365	2,107		(1,371)	(809)	(2,180)
Adjusted beginning of year balance	249,343		11,047	260,390		98,854	13,585	112,439
Issuances	6,236		759	6,995		4,789	1,176	5,965
Interest accrual	2,272		72	2,344		986	114	1,100
Net premiums collected	(9,715)		(751)	(10,466)		(2,967)	467	(2,500)
Derecognition and other	153		38	191		132	46	178
Ending balance at original discount rate	248,289		11,165	259,454		101,794	15,388	117,182
Effect of changes in discount rates	(8,766)		(370)	(9,136)		(4,925)	(873)	(5,798)
Balance, end of period	$	239,523	10,795	250,318		96,869	14,515	111,384

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	2,538		1,045	3,583		(1,299)	25	(1,274)
Adjusted beginning of year balance	998,707		209,096	1,207,803		212,889	121,933	334,822
Issuances	6,375		785	7,160		4,789	1,176	5,965
Interest accrual	10,842		2,112	12,954		2,310	1,410	3,720
Benefit payments	(19,153)		(4,873)	(24,026)		(4,178)	(1,748)	(5,926)
Derecognition and other	14		12	26		132	45	177
Ending balance at original discount rate	996,785		207,132	1,203,917		215,942	122,816	338,758
Effect of changes in discount rates	(31,065)		(9,459)	(40,524)		(10,101)	(3,712)	(13,813)
Balance, end of period	$	965,720	197,673	1,163,393		205,841	119,104	324,945

Net liability for future policy benefits	$	726,197	186,878	913,075		108,972	104,589	213,561

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.


	March 31, 2024				March 31, 2023
(In thousands)	Life Insurance		Home Service Insurance	Consolidated	Life Insurance	Home Service Insurance	Consolidated
Life Insurance:
Permanent	$	709,598	107,648	817,246	726,197	108,972	835,169
Permanent limited pay	176,347		102,403	278,750	186,878	104,589	291,467
Deferred profit liability	29,258		27,432	56,690	26,347	25,113	51,460
Other	28,818		13,926	42,744	26,474	13,725	40,199
Total life insurance	944,021		251,409	1,195,430	965,896	252,399	1,218,295
Accident & Health:

Other	514		330	844	599	249	848

Total future policy benefit reserves	$	944,535	251,739	1,196,274	966,495	252,648	1,219,143

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


	March 31, 2024			March 31, 2023
(In thousands)	Life Insurance		Home Service Insurance	Life Insurance	Home Service Insurance
Undiscounted:
Permanent:
Expected future gross premiums	$	658,547	455,252	607,319	463,491
Expected future benefit payments	1,514,326		488,264	1,478,777	478,978

Permanent Limited Pay:
Expected future gross premiums	46,558		76,799	46,845	77,743
Expected future benefit payments	326,302		320,554	321,985	319,390





Discounted:
Permanent:
Expected future gross premiums	$	499,821	268,852	474,777	277,098
Expected future benefit payments	958,772		204,856	965,720	205,841

Permanent Limited Pay:
Expected future gross premiums	41,378		51,413	41,719	54,170
Expected future benefit payments	189,844		116,909	197,673	119,104

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


	Three Months Ended March 31,
		2024			2023
(In thousands)			Gross Premiums		Interest Expense	Gross Premiums	Interest Expense
Life Insurance Segment:
Life Insurance:
Permanent			$	23,316	8,464	22,458	8,570
Permanent Limited Pay			3,646		2,263	4,168	2,336
Other			1,109		—	77	—
Less:
Reinsurance			373		—	648	—
Total, net of reinsurance			27,698		10,727	26,055	10,906
Accident & Health:

Other			164		—	152	—
Less:
Reinsurance			1		—	—	—
Total, net of reinsurance			163		—	152	—
Total			$	27,861	10,727	26,207	10,906

Home Service Insurance Segment:
Life Insurance:
Permanent			$	8,241	1,344	8,372	1,324
Permanent Limited Pay			2,040		1,626	2,154	1,586
Other			294		—	368	—
Less:
Reinsurance			12		—	15	—
Total, net of reinsurance			10,563		2,970	10,879	2,910
Accident & Health:

Other			251		—	206	—



Total			$	10,814	2,970	11,085	2,910

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


	March 31, 2024		March 31, 2023
(In years)	Life Insurance	Home Service Insurance	Life Insurance	Home Service Insurance
Permanent:
Duration at original discount rate	8.2	16.0	8.1	15.9
Duration at current discount rate	8.5	15.8	8.4	16.1
Permanent Limited Pay:
Duration at original discount rate	8.1	14.5	7.6	14.5
Duration at current discount rate	7.8	14.5	7.6	15.2

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


	March 31, 2024				March 31, 2023
	Life Insurance		Home Service Insurance		Life Insurance		Home Service Insurance
Permanent:
Interest rate at original discount rate	4.89	%	4.97	%	4.92	%	4.99	%
Interest rate at current discount rate	5.10	%	5.31	%	4.86	%	5.09	%
Permanent Limited Pay:
Interest rate at original discount rate	4.28	%	5.03	%	4.30	%	5.05	%
Interest rate at current discount rate	5.09	%	5.31	%	4.85	%	5.08	%

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
March 31, 2024 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	792	—	1,031	34,391	36,214
1.50% - 2.99%	22,353		531	37	11,622	34,543
3.00% - 4.49%	100,882		131	8,498	—	109,511
Greater or equal to 4.50%	31,447		—	—	—	31,447
Total	$	155,474	662	9,566	46,013	211,715


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
March 31, 2023 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	736	—	1,144	38,186	40,066
1.50% - 2.99%	25,929		593	66	—	26,588
3.00% - 4.49%	101,264		10	—	—	101,274
Greater or equal to 4.50%	31,858		—	—	—	31,858
Total	$	159,787	603	1,210	38,186	199,786

Policyholder Account Balance

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


March 31, 2024 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	44,569		87,134		44,960		31,039
Issuances	5,721			594		138		806
Premiums received	27			985		1,358		194

Interest credited	474			663		472		431

Less:
Surrenders and withdrawals	—			2,572		1,168		1,989
Benefit payments	2,121			—		—		—
Balance, end of period	$	48,670		86,804		45,760		30,481
Weighted-average crediting rates	3.96		%	3.57	%	3.28	%	2.93	%

Cash surrender value	$	48,670		86,804		45,760		30,481


March 31, 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	4,788			763		148		905
Premiums received	18			1,170		1,384		145

Interest credited	343			668		324		226

Less:
Surrenders and withdrawals	—			2,247		851		1,757
Benefit payments	2,309			—		—		—
Balance, end of period	$	35,835		87,161		42,668		34,122
Weighted-average crediting rates	4.05		%	3.57	%	3.05	%	2.98	%

Cash surrender value	$	35,835		87,161		42,668		34,122

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


As of March 31, (In thousands)	2024		2023
Annuities:
Supplemental contracts without life contingencies	$	48,670	35,835
Fixed annuity	86,804		87,161
Unearned revenue reserve	1,491		1,531
Other	—		1
Total annuities	$	136,965	124,528







Premiums Paid in Advance:
Premiums paid in advance	$	30,481	34,122
Other	1,910		2,575
Total premiums paid in advance	$	32,391	36,697