Deferred Acquisition Costs (Tables)

6 Months Ended

Jun. 30, 2023

Insurance [Abstract]

Schedule of 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 and six month periods ended June 30, 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	230,021		93,657		42,814		7,018		373,510
Amortization expense	(68,264)		(46,618)		(22,335)		(8,393)		(145,610)
Foreign exchange adjustment	(5,240)		—		—		—		(5,240)
Experience adjustment	—		—		—		—		—
Balance at June 30, 2022	$	2,116,771	$	1,630,734	$	586,898	$	300,272	$	4,634,675
Balance at January 1, 2023	$	2,258,291	$	1,676,931	$	610,723	$	298,346	$	4,844,291
Capitalizations	234,172		87,389		50,649		6,767		378,977
Amortization expense	(77,742)		(49,605)		(25,163)		(8,252)		(160,762)
Foreign exchange adjustment	2,759		—		—		—		2,759
Experience adjustment	—		—		—		—		—
Balance at June 30, 2023	$	2,417,480	$	1,714,715	$	636,209	$	296,861	$	5,065,265

	Life
	American Income		DTC		Liberty National		Other		Total
Balance at April 1, 2022	$	2,042,907	$	1,608,739	$	575,838	$	300,936	$	4,528,420
Capitalizations	115,593		45,441		22,349		3,531		186,914
Amortization expense	(34,751)		(23,446)		(11,289)		(4,195)		(73,681)
Foreign exchange adjustment	(6,978)		—		—		—		(6,978)
Experience adjustment	—		—		—		—		—
Balance at June 30, 2022	$	2,116,771	$	1,630,734	$	586,898	$	300,272	$	4,634,675
Balance at April 1, 2023	$	2,332,600	$	1,699,588	$	622,532	$	297,542	$	4,952,262
Capitalizations	118,777		39,979		26,428		3,446		188,630
Amortization expense	(39,443)		(24,852)		(12,751)		(4,127)		(81,173)
Foreign exchange adjustment	5,546		—		—		—		5,546
Experience adjustment	—		—		—		—		—
Balance at June 30, 2023	$	2,417,480	$	1,714,715	$	636,209	$	296,861	$	5,065,265

	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	1,068		25,430		8,736		6,345		2		41,581
Amortization expense	(3,034)		(12,675)		(6,681)		(1,687)		(89)		(24,166)
Foreign exchange adjustment	—		—		—		(288)		—		(288)
Experience adjustment	—		—		—		—		—		—
Balance at June 30, 2022	$	79,174	$	401,722	$	129,592	$	53,776	$	1,945	$	666,209
Balance at January 1, 2023	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
Capitalizations	996		30,591		9,734		6,320		—		47,641
Amortization expense	(3,041)		(13,200)		(6,554)		(1,903)		(94)		(24,792)
Foreign exchange adjustment	—		—		—		57		—		57
Experience adjustment	—		—		—		—		—		—
Balance at June 30, 2023	$	75,349	$	433,999	$	136,276	$	62,285	$	1,760	$	709,669

	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at April 1, 2022	$	80,204	$	394,925	$	128,338	$	51,820	$	1,988	$	657,275
Capitalizations	488		13,067		4,615		3,190		2		21,362
Amortization expense	(1,518)		(6,270)		(3,361)		(858)		(45)		(12,052)
Foreign exchange adjustment	—		—		—		(376)		—		(376)
Experience adjustment	—		—		—		—		—		—
Balance at June 30, 2022	$	79,174	$	401,722	$	129,592	$	53,776	$	1,945	$	666,209
Balance at April 1, 2023	$	76,388	$	425,145	$	134,728	$	59,890	$	1,807	$	697,958
Capitalizations	489		15,494		4,852		3,177		—		24,012
Amortization expense	(1,528)		(6,640)		(3,304)		(965)		(47)		(12,484)
Foreign exchange adjustment	—		—		—		183		—		183
Experience adjustment	—		—		—		—		—		—
Balance at June 30, 2023	$	75,349	$	433,999	$	136,276	$	62,285	$	1,760	$	709,669

The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of June 30, 2023:

	June 30,
	2023		2022
Life
American Income	$	2,417,480	$	2,116,771
Direct to Consumer	1,714,715		1,630,734
Liberty National	636,209		586,898
Other	296,861		300,272
Total DAC - Life	5,065,265		4,634,675
Health
United American	75,349		79,174
Family Heritage	433,999		401,722
Liberty National	136,276		129,592
American Income	62,285		53,776
Direct to Consumer	1,760		1,945
Total DAC - Health	709,669		666,209
Annuity	3,798		5,536
Total	$	5,778,732	$	5,306,420