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New Accounting Standards (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

Liability for Future Policy Benefit, Activity

The following tables summarize the balance of and changes to the liability for future policy benefits for traditional life and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12:


	Net Liability for Future Policy Benefits - Long Duration Life
	American Income		DTC		Liberty National		Other		Total
Balance, net of reinsurance, at original discount rates as of December 31, 2020	$	3,541,317	$	2,492,226	$	2,140,071	$	2,736,804	$	10,910,418
Effect of changes in discount rate assumptions	3,334,600		2,195,430		1,229,610		2,297,835		9,057,475
Effect of capping and flooring(1)	—		16,899		2,433		2		19,334
Balance, net of reinsurance, at current discount rates as of January 1, 2021	$	6,875,917	$	4,704,555	$	3,372,114	$	5,034,641	$	19,987,227


	Net liability for Future Policy Benefits - Long Duration Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance, net of reinsurance, at original discount rates as of December 31, 2020	$	131,505	$	1,383,128	$	501,312	$	101,998	$	(2,941)	$	2,115,002
Effect of changes in discount rate assumptions	75,652		497,250		219,992		60,366		346		853,606
Effect of capping and flooring(1)	6,506		—		19,324		—		4,193		30,023
Balance, net of reinsurance, at current discount rates as of January 1, 2021	$	213,663	$	1,880,378	$	740,628	$	162,364	$	1,598	$	2,998,631

(1)When the present value of expected future net premiums exceeds the present value of expected future gross premiums for a given cohort (capping), or the present value of future policy benefits and related termination expenses exceeds the present value of expected future net premiums (flooring), an adjustment is made to the liability for future policy benefits.

The following table presents total policy liabilities, both before and after the Transition Date:


	January 1,		December 31,
	2021		2020

Future policy benefits:
Net liability for future policy benefits—long duration life	$	19,987,227	$	10,910,418
Net liability for future policy benefits—long duration health	2,998,631		2,115,002





Additional insurance liabilities(1),(2)	2,008,399		2,218,116
Total future policy benefits	24,994,257		15,243,536

Unearned and advance premium(1)	243,369		61,728

Policy claims and other benefits payable(1)	473,524		399,507

Other policyholders' funds(1)	98,459		97,968
Total policy liabilities	$	25,809,609	$	15,802,739

(1)In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidated Balance Sheets as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below.

(2)The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Liabilities for additional information.

The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts:


	Life
	Present value of expected future net premiums
	American Income		DTC		Liberty National		Other		Total












Balance at January 1, 2022	$	4,925,192	$	7,264,905	$	1,332,469	$	559,972	$	14,082,538
Beginning balance at original discount rates	3,906,098		5,533,741		1,040,242		416,141		10,896,222
Effect of changes in assumptions of future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(4,315)		(29,595)		(625)		1,652		(32,883)
Adjusted balance at January 1, 2022	3,901,783		5,504,146		1,039,617		417,793		10,863,339
Issuances(1)	215,926		173,775		22,965		7,300		419,966
Interest accrual(2)	43,074		67,608		12,810		5,172		128,664
Net premiums collected(3)	(120,203)		(149,757)		(31,627)		(10,831)		(312,418)

Effect of changes in the foreign exchange rate	2,900		—		—		—		2,900
Ending balance at original discount rates	4,043,480		5,595,772		1,043,765		419,434		11,102,451

Effect of change from original to current discount rates	603,267		1,114,883		181,223		92,398		1,991,771
Balance at March 31, 2022	$	4,646,747	$	6,710,655	$	1,224,988	$	511,832	$	13,094,222




























Balance at January 1, 2023	$	4,273,156	$	5,910,224	$	1,094,407	$	470,741	$	11,748,528
Beginning balance at original discount rates	4,246,723		5,680,864		1,066,123		449,209		11,442,919
Effect of changes in assumptions of future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(29,981)		(47,988)		(5,590)		(1,886)		(85,445)
Adjusted balance at January 1, 2023	4,216,742		5,632,876		1,060,533		447,323		11,357,474
Issuances(1)	192,555		168,952		30,142		7,241		398,890
Interest accrual(2)	47,898		70,991		13,288		5,670		137,847
Net premiums collected(3)	(127,239)		(153,919)		(33,188)		(11,557)		(325,903)

Effect of changes in the foreign exchange rate	(3,999)		—		—		—		(3,999)
Ending balance at original discount rates	4,325,957		5,718,900		1,070,775		448,677		11,564,309

Effect of change from original to current discount rates	141,680		391,650		57,308		34,379		625,017
Balance at March 31, 2023	$	4,467,637	$	6,110,550	$	1,128,083	$	483,056	$	12,189,326

(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.

(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.

(3)Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business.


	Life
	Present value of expected future policy benefits
	American Income		DTC		Liberty National		Other		Total
















Balance at January 1, 2022	$	11,773,519	$	11,859,408	$	4,542,697	$	5,488,684	$	33,664,308
Beginning balance at original discount rates	7,744,201		8,157,259		3,206,164		3,267,306		22,374,930
Effect of changes in assumptions of future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(2,959)		(25,850)		153		1,680		(26,976)
Adjusted balance at January 1, 2022	7,741,242		8,131,409		3,206,317		3,268,986		22,347,954
Issuances(1)	215,926		173,775		22,965		7,300		419,966
Interest accrual(2)	100,336		106,928		42,230		48,280		297,774
Benefit payments(3)	(104,321)		(173,611)		(63,457)		(34,297)		(375,686)

Effect of changes in the foreign exchange rate	6,511		—		—		—		6,511
Ending balance at original discount rates	7,959,694		8,238,501		3,208,055		3,290,269		22,696,519
Effect of change from original to current discount rates	2,692,562		2,511,848		858,179		1,558,106		7,620,695
Balance at March 31, 2022	$	10,652,256	$	10,750,349	$	4,066,234	$	4,848,375	$	30,317,214





Balance at January 1, 2023	$	9,119,104	$	9,225,451	$	3,429,256	$	3,976,150	$	25,749,961
Beginning balance at original discount rates	8,409,761		8,477,892		3,272,980		3,403,704		23,564,337
Effect of changes in assumptions of future cash flows	—		—		—		—		—
Effect of actual variances from expected experience	(31,526)		(48,947)		(7,054)		(2,896)		(90,423)
Adjusted balance at January 1, 2023	8,378,235		8,428,945		3,265,926		3,400,808		23,473,914
Issuances(1)	192,555		168,952		30,142		7,241		398,890
Interest accrual(2)	109,329		112,768		43,256		50,378		315,731
Benefit payments(3)	(96,674)		(147,061)		(54,730)		(30,892)		(329,357)

Effect of changes in the foreign exchange rate	(9,711)		—		—		—		(9,711)
Ending balance at original discount rates	8,573,734		8,563,604		3,284,594		3,427,535		23,849,467
Effect of change from original to current discount rates	1,063,729		1,061,076		274,418		738,992		3,138,215
Balance at March 31, 2023	$	9,637,463	$	9,624,680	$	3,559,012	$	4,166,527	$	26,987,682

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.

(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.

(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions.


	Life
	Net liability for future policy benefits as of March 31, 2022
		American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates		$	3,916,214	$	2,642,729	$	2,164,290	$	2,870,835	$	11,594,068
Effect of changes in discount rate assumptions		2,089,295		1,396,965		676,956		1,465,708		5,628,924
Net liability for future policy benefits at current discount rates		6,005,509		4,039,694		2,841,246		4,336,543		17,222,992
Other Adjustments(1)		(11)		2,820		(10,446)		(43,598)		(51,235)
Net liability for future policy benefits, after other adjustments, at current discount rates		$	6,005,498	$	4,042,514	$	2,830,800	$	4,292,945	$	17,171,757

(1)Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability.


	Life
	Net liability for future policy benefits as of March 31, 2023
		American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates		$	4,247,777	$	2,844,704	$	2,213,819	$	2,978,858	$	12,285,158
Effect of changes in discount rate assumptions		922,049		669,426		217,110		704,613		2,513,198
Net liability for future policy benefits at current discount rates		5,169,826		3,514,130		2,430,929		3,683,471		14,798,356
Other Adjustments(1)		(46)		4,546		486		(36,765)		(31,779)
Net liability for future policy benefits, after other adjustments, at current discount rates		$	5,169,780	$	3,518,676	$	2,431,415	$	3,646,706	$	14,766,577

(1)Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability.

The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts:


	Health
	Present value of expected future net premiums
	United American		Family Heritage		Liberty National		American Income		DTC		Total












Balance at January 1, 2022	$	3,611,659	$	1,944,714	$	517,368	$	222,553	$	121,724	$	6,418,018
Beginning balance at original discount rates	2,949,851		1,688,590		414,409		178,801		96,776		5,328,427
Effect of changes in assumptions of future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(49,560)		(15,162)		(15,462)		(2,465)		(1,880)		(84,529)
Adjusted balance at January 1, 2022	2,900,291		1,673,428		398,947		176,336		94,896		5,243,898
Issuances(1)	90,034		53,518		10,815		10,452		880		165,699
Interest accrual(2)	30,339		14,940		4,872		1,831		1,182		53,164
Net premiums collected(3)	(62,895)		(42,751)		(12,883)		(5,252)		(2,550)		(126,331)

Effect of changes in the foreign exchange rate	—		—		—		312		—		312
Ending balance at original discount rates	2,957,769		1,699,135		401,751		183,679		94,408		5,336,742

Effect of change from original to current discount rates	379,383		91,102		61,701		24,385		15,326		571,897
Balance at March 31, 2022	$	3,337,152	$	1,790,237	$	463,452	$	208,064	$	109,734	$	5,908,639




























Balance at January 1, 2023	$	2,908,501	$	1,594,992	$	423,490	$	190,296	$	90,143	$	5,207,422
Beginning balance at original discount rates	2,941,261		1,729,219		415,442		192,631		87,751		5,366,304
Effect of changes in assumptions of future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(34,132)		(18,758)		(16,585)		(1,621)		(2,573)		(73,669)
Adjusted balance at January 1, 2023	2,907,129		1,710,461		398,857		191,010		85,178		5,292,635
Issuances(1)	75,839		67,787		13,303		10,212		2,392		169,533
Interest accrual(2)	31,587		16,199		4,890		2,036		1,057		55,769
Net premiums collected(3)	(65,914)		(43,979)		(12,403)		(5,424)		(2,661)		(130,381)

Effect of changes in the foreign exchange rate	—		—		—		(388)		—		(388)
Ending balance at original discount rates	2,948,641		1,750,468		404,647		197,446		85,966		5,387,168

Effect of change from original to current discount rates	49,082		(86,054)		16,800		3,220		4,277		(12,675)
Balance at March 31, 2023	$	2,997,723	$	1,664,414	$	421,447	$	200,666	$	90,243	$	5,374,493

(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.

(3)Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business.


	Health
	Present value of expected future policy benefits
	United American		Family Heritage		Liberty National		American Income		DTC		Total
















Balance at January 1, 2022	$	3,810,559	$	3,840,322	$	1,201,317	$	380,915	$	119,888	$	9,353,001
Beginning balance at original discount rates	3,090,901		3,193,342		921,608		285,604		95,628		7,587,083
Effect of changes in assumptions of future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(50,453)		(15,668)		(15,790)		(2,645)		(2,025)		(86,581)
Adjusted balance at January 1, 2022	3,040,448		3,177,674		905,818		282,959		93,603		7,500,502
Issuances(1)	89,904		53,518		10,866		10,452		876		165,616
Interest accrual(2)	32,308		29,583		12,120		3,432		1,182		78,625
Benefit payments(3)	(67,243)		(28,494)		(23,065)		(5,044)		(3,389)		(127,235)

Effect of changes in the foreign exchange rate	—		—		—		557		—		557
Ending balance at original discount rates	3,095,417		3,232,281		905,739		292,356		92,272		7,618,065
Effect of change from original to current discount rates	413,068		244,358		176,686		59,275		14,762		908,149
Balance at March 31, 2022	$	3,508,485	$	3,476,639	$	1,082,425	$	351,631	$	107,034	$	8,526,214





Balance at January 1, 2023	$	3,046,829	$	3,005,664	$	941,574	$	312,750	$	87,532	$	7,394,349
Beginning balance at original discount rates	3,080,633		3,336,344		904,865		303,713		85,212		7,710,767
Effect of changes in assumptions of future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	(31,443)		(19,779)		(15,995)		(1,578)		(2,302)		(71,097)
Adjusted balance at January 1, 2023	3,049,190		3,316,565		888,870		302,135		82,910		7,639,670
Issuances(1)	75,683		67,787		13,285		10,212		2,388		169,355
Interest accrual(2)	33,480		32,289		11,840		3,668		1,057		82,334
Benefit payments(3)	(78,563)		(29,261)		(23,976)		(7,137)		(3,354)		(142,291)

Effect of changes in the foreign exchange rate	—		—		—		(708)		—		(708)
Ending balance at original discount rates	3,079,790		3,387,380		890,019		308,170		83,001		7,748,360
Effect of change from original to current discount rates	52,672		(212,708)		59,977		18,363		4,089		(77,607)
Balance at March 31, 2023	$	3,132,462	$	3,174,672	$	949,996	$	326,533	$	87,090	$	7,670,753

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.


	Health
	Net liability for future policy benefits as of March 31, 2022
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	137,648	$	1,533,146	$	503,988	$	108,677	$	(2,136)	$	2,281,323
Effect of changes in discount rate assumptions	33,685		153,256		114,985		34,890		(564)		336,252
Net liability for future policy benefits at current discount rates	171,333		1,686,402		618,973		143,567		(2,700)		2,617,575
Other Adjustments	(1,812)		(10,847)		1,508		12		3,812		(7,327)
Net liability for future policy benefits, after other adjustments, at current discount rates	$	169,521	$	1,675,555	$	620,481	$	143,579	$	1,112	$	2,610,248

(1)Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability.


	Health
	Net liability for future policy benefits as of March 31, 2023
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	131,149		1,636,912		485,372		110,724		(2,965)		2,361,192
Effect of changes in discount rate assumptions	3,590		(126,654)		43,177		15,143		(188)		(64,932)
Net liability for future policy benefits at current discount rates	134,739		1,510,258		528,549		125,867		(3,153)		2,296,260
Other Adjustments	1,771		(9,362)		4,348		333		4,162		1,252
Net liability for future policy benefits, after other adjustments, at current discount rates	$	136,510	$	1,500,896	$	532,897	$	126,200	$	1,009	$	2,297,512

(1)Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability.

The following table reconciles the liability for future policy benefits to the C onsolidated B alance S heets as of March 31, 2023:



	At Original Discount Rates				At Current Discount Rates
	As of March 31,				As of March 31,
	2023		2022		2023		2022
Life(1):
American Income	$	4,247,758	$	3,916,187	$	5,169,780	$	6,005,498
Direct to Consumer	2,844,707		2,642,729		3,518,676		4,042,514
Liberty National	2,206,288		2,153,030		2,431,415		2,830,800
Other	2,952,802		2,846,161		3,646,706		4,292,945
Net liability for future policy benefits—long duration life	12,251,555		11,558,107		14,766,577		17,171,757

Health(1):
United American	130,992		135,891		136,510		169,521
Family Heritage	1,626,881		1,524,185		1,500,896		1,675,555
Liberty National	488,546		505,319		532,897		620,481
American Income	111,096		108,693		126,200		143,579
Direct to Consumer	961		1,004		1,009		1,112
Net liability for future policy benefits—long duration health	2,358,476		2,275,092		2,297,512		2,610,248

Deferred profit liability	177,248		184,451		177,248		184,451
Deferred annuity	907,797		1,027,087		907,797		1,027,087
Interest sensitive life	737,900		744,244		737,900		744,244
Other	9,540		8,118		9,540		8,118
Total future policy benefits	$	16,442,516	$	15,797,099	$	18,896,574	$	21,745,905

(1)Balances are presented net of the reinsurance recoverable and the effects of flooring the liability.

The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022:


	Life
	Weighted-average Discount Rates
	March 31, 2023								March 31, 2022
	American Income		DTC		Liberty National		Other		American Income		DTC		Liberty National		Other

Original discount rate	5.8	%	6.0	%	5.6	%	6.2	%	5.8	%	6.0	%	5.6	%	6.2	%
Current discount rate	4.9	%	5.0	%	5.0	%	5.0	%	4.0	%	4.0	%	3.9	%	3.9	%


	Health
	Weighted-average Discount Rates
	March 31, 2023										March 31, 2022
	United American		Family Heritage		Liberty National		American Income		DTC		United American		Family Heritage		Liberty National		American Income		DTC

Original discount rate	5.2	%	4.3	%	5.8	%	5.9	%	5.2	%	5.2	%	4.4	%	5.8	%	5.9	%	5.2	%
Current discount rate	4.8	%	4.9	%	4.9	%	4.8	%	4.8	%	3.8	%	3.9	%	3.6	%	3.8	%	3.8	%

The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022:


	March 31,
	2023		2022
	At original discount rates	At current discount rates	At original discount rates	At current discount rates
Life
American Income	22.90	23.33	22.80	23.78
Direct to Consumer	20.24	21.82	20.81	22.93
Liberty National	14.94	15.63	15.08	16.85
Other	16.52	18.23	16.76	19.59

Health
United American	11.40	10.80	11.68	11.83
Family Heritage	14.91	14.43	15.28	15.80
Liberty National	9.31	9.66	9.01	10.11
American Income	12.15	12.74	12.45	13.95
Direct to Consumer	11.40	10.80	11.68	11.83

The following tables summarize the amount of gross premiums and interest, net of reinsurance, related to long duration life and health contracts that are recognized in the Condensed Consolidated Statements of Operations:


	Life
	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	387,145	$	61,431	$	369,737	$	57,262
Direct to Consumer	244,707		41,714		242,662		39,292
Liberty National	84,072		29,769		79,348		29,285
Other	51,835		44,275		52,387		42,697
Total	$	767,759	$	177,189	$	744,134	$	168,536


	Health
	Three Months Ended March 31, 2023				Three Months Ended March 31, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	97,833	$	1,822	$	92,266	$	1,914
Family Heritage	96,090		15,977		89,540		14,545
Liberty National	46,745		6,920		47,496		7,226
American Income	28,096		1,632		27,937		1,601
Direct to Consumer	3,542		—		3,536		—
Total	$	272,306	$	26,351	$	260,775	$	25,286

The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums and expected future policy benefits, at both original and current discount rates, for life and health contracts:


	Life
	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
American Income
PV of expected future net premiums	$	7,617,532	$	4,325,957	$	4,467,637	$	7,115,131	$	4,043,480	$	4,646,747
PV of expected future gross premiums	23,041,514		13,054,486		13,575,751		21,851,854		12,374,587		14,324,455
PV of expected future policy benefits	28,821,998		8,573,734		9,637,463		26,930,450		7,959,694		10,652,256

DTC
PV of expected future net premiums	$	10,832,386	$	5,718,900	$	6,110,550	$	10,630,110	$	5,595,772	$	6,710,655
PV of expected future gross premiums	17,479,516		9,165,113		9,773,835		17,414,120		9,103,648		10,912,941
PV of expected future policy benefits	25,582,750		8,563,604		9,624,680		24,876,834		8,238,501		10,750,349

Liberty National
PV of expected future net premiums	$	1,889,419	$	1,070,775	$	1,128,083	$	1,855,371	$	1,043,765	$	1,224,988
PV of expected future gross premiums	4,453,139		2,599,082		2,667,795		4,265,146		2,485,460		2,848,626
PV of expected future policy benefits	8,658,766		3,284,594		3,559,012		8,514,395		3,208,055		4,066,234

Other
PV of expected future net premiums	$	919,924	$	448,677	$	483,056	$	869,727	$	419,434	$	511,832
PV of expected future gross premiums	3,798,669		1,920,302		2,126,949		3,907,011		1,950,624		2,441,512
PV of expected future policy benefits	12,392,224		3,427,535		4,166,527		12,277,130		3,290,269		4,848,375

Total
PV of expected future net premiums	$	21,259,261	$	11,564,309	$	12,189,326	$	20,470,339	$	11,102,451	$	13,094,222
PV of expected future gross premiums	48,772,838		26,738,983		28,144,330		47,438,131		25,914,319		30,527,534
PV of expected future policy benefits	75,455,738		23,849,467		26,987,682		72,598,809		22,696,519		30,317,214

Analysis of Deferred Acquisition Costs

The following table presents the Company's deferred policy acquisition costs, both before and after the Transition Date:


	January 1,		December 31,
	2021		2020
Life:
American Income	$	1,647,761	$	1,647,761
Direct to Consumer	1,498,970		1,498,435
Liberty National	531,504		531,504
Other	304,786		304,459
Total life	3,983,021		3,982,159

Health:
United American	65,020		74,353
Family Heritage	364,751		364,751
Liberty National	124,754		124,888
American Income	39,477		39,477
Direct to Consumer	2,215		6,600
Total health	596,217		610,069

Annuity	8,309		3,216
Total DAC	$	4,587,547	$	4,595,444

The following table presents the effect of transition adjustments due to the adoption of ASU 2018-12 on Shareholders' Equity:


	Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Other(1)		Total
Shareholders’ Equity, as of December 31, 2020	$	5,874,109	$	3,029,244	$	(132,261)	$	8,771,092
Effect of changes in discount rate assumptions	—		(7,829,753)		—		(7,829,753)
Effect of capping and flooring	(38,992)		—		—		(38,992)
Effect of removal of unrealized gain (loss) on DAC	—		4,704		—		4,704
Other adjustments	26,470		—		—		26,470
Shareholders’ Equity, as of January 1, 2021	$	5,861,587	$	(4,795,805)	$	(132,261)	$	933,521

(1)Other represents common stock, additional paid-in capital, and treasury stock, combining balances that were unaffected by the new standard.

The following tables roll forward the deferred policy acquisition costs for the three months ended March 31, 2023 and 2022:


	Life
	American Income		DTC		Liberty National		Other		Total












Balance at January 1, 2022	$	1,960,254	$	1,583,695	$	566,419	$	301,647	$	4,412,015
Capitalizations	114,428		48,216		20,465		3,487		186,596
Amortization expense	(33,513)		(23,172)		(11,046)		(4,198)		(71,929)
Foreign exchange adjustment	1,738		—		—		—		1,738
Experience adjustment	—		—		—		—		—
Balance at March 31, 2022	$	2,042,907	$	1,608,739	$	575,838	$	300,936	$	4,528,420
















Balance at January 1, 2023	$	2,258,291	$	1,676,931	$	610,723	$	298,346	$	4,844,291
Capitalizations	115,395		47,410		24,221		3,321		190,347
Amortization expense	(38,299)		(24,753)		(12,412)		(4,125)		(79,589)
Foreign exchange adjustment	(2,787)		—		—		—		(2,787)
Experience adjustment	—		—		—		—		—
Balance at March 31, 2023	$	2,332,600	$	1,699,588	$	622,532	$	297,542	$	4,952,262


	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at January 1, 2022	$	81,140	$	388,967	$	127,537	$	49,406	$	2,032	$	649,082
Capitalizations	580		12,363		4,121		3,155		—		20,219
Amortization expense	(1,516)		(6,405)		(3,320)		(829)		(44)		(12,114)
Foreign exchange adjustment	—		—		—		88		—		88
Experience adjustment	—		—		—		—		—		—
Balance at March 31, 2022	$	80,204	$	394,925	$	128,338	$	51,820	$	1,988	$	657,275
















Balance at January 1, 2023	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
Capitalizations	507		15,097		4,882		3,143		—		23,629
Amortization expense	(1,513)		(6,560)		(3,250)		(938)		(47)		(12,308)
Foreign exchange adjustment	—		—		—		(126)		—		(126)
Experience adjustment	—		—		—		—		—		—
Balance at March 31, 2023	$	76,388	$	425,145	$	134,728	$	59,890	$	1,807	$	697,958

The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of March 31, 2023:


	March 31,
	2023		2022
Life
American Income	$	2,332,600	$	2,042,907
Direct to Consumer	1,699,588		1,608,739
Liberty National	622,532		575,838
Other	297,542		300,936
Total DAC - Life	4,952,262		4,528,420

Health
United American	76,388		80,204
Family Heritage	425,145		394,925
Liberty National	134,728		128,338
American Income	59,890		51,820
Direct to Consumer	1,807		1,988
Total DAC - Health	697,958		657,275

Annuity	4,218		5,988
Total	$	5,654,438	$	5,191,683

Schedule Of New Accounting Standards on Previously Reported Results

Effect of New Accounting Standards on Previously Reported Results: The impacts from the adoption of ASU 2018-12 on the Company's previously reported results included in these financial statements are as follows:

Condensed Consolidated Balance Sheets



	December 31, 2022
	As Previously Reported		Adoption Impact		As Adjusted
Assets:








Other receivables	$	484,887	$	104,192	$	589,079
Deferred acquisition costs	5,249,907		285,790		5,535,697



Liabilities:
Future policy benefits	16,721,846		1,318,196		18,040,042
Unearned and advance premium	60,742		192,398		253,140
Policy claims and other benefits payable	430,027		77,192		507,219


Current and deferred income taxes	686,172		(251,523)		434,649





Shareholders' equity:



Accumulated other comprehensive income (loss)	(1,415,714)		(1,374,599)		(2,790,313)
Retained earnings	6,466,220		428,315		6,894,535

Condensed Consolidated Statements of Operations


	Three Months Ended March 31, 2022

		As Previously Reported		Adoption Impact		As Adjusted
Revenue:
Life premium		$	754,602	$	(5,474)	$	749,128
Health premium		317,000		(1,316)		315,684


Net investment income		243,834		1,060		244,894





Benefits and expenses:
Life policyholder benefits		549,343		(53,914)		495,429
Health policyholder benefits		196,855		(7,837)		189,018
Other policyholder benefits		7,050		2,652		9,702


Amortization of deferred acquisition costs		158,384		(73,888)		84,496
Commissions, premium taxes, and non-deferred acquisition costs		90,813		34,696		125,509




Income before income taxes		201,615		92,561		294,176
Income tax benefit (expense)		(37,254)		(19,438)		(56,692)



Net income		$	164,361	$	73,123	$	237,484




Basic net income per common share		$	1.66	$	0.73	$	2.39




Diluted net income per common share		$	1.64	$	0.73	$	2.37

See Note 1—Significant Accounting Policies, Note 6—Policy Liabilities, and Note 7—DAC for additional information on the adoption.