Policy Liabilities

9 Months Ended

Sep. 30, 2023

Policyholder Account Balance [Abstract]

Policy Liabilities

Note 6—Policy Liabilities

The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders.

The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three and nine month periods ended September 30, 2023 and 2022:

	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 on future cash flows	34,266		79,571		17,719		35,214		166,770
Effect of actual variances from expected experience	(76,338)		(180,498)		(15,119)		(7,237)		(279,192)
Adjusted balance at January 1, 2022	3,864,026		5,432,814		1,042,842		444,118		10,783,800
Issuances(1)	596,320		499,777		73,299		23,148		1,192,544
Interest accrual(2)	131,251		204,334		38,378		15,575		389,538
Net premiums collected(3)	(366,147)		(451,993)		(95,338)		(32,628)		(946,106)
Effect of changes in the foreign exchange rate	(21,643)		—		—		—		(21,643)
Ending balance at original discount rates	4,203,807		5,684,932		1,059,181		450,213		11,398,133
Effect of change from original to current discount rates	(26,258)		153,525		17,403		15,056		159,726
Balance at September 30, 2022	$	4,177,549	$	5,838,457	$	1,076,584	$	465,269	$	11,557,859
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 on future cash flows	14,265		36,170		5,178		8,419		64,032
Effect of actual variances from expected experience	(103,922)		(219,723)		(26,533)		(13,882)		(364,060)
Adjusted balance at January 1, 2023	4,157,066		5,497,311		1,044,768		443,746		11,142,891
Issuances(1)	557,844		450,361		92,894		21,756		1,122,855
Interest accrual(2)	147,968		214,988		40,362		17,071		420,389
Net premiums collected(3)	(388,288)		(461,367)		(100,093)		(34,542)		(984,290)
Effect of changes in the foreign exchange rate	(631)		—		—		—		(631)
Ending balance at original discount rates	4,473,959		5,701,293		1,077,931		448,031		11,701,214
Effect of change from original to current discount rates	(155,254)		(31,118)		(18,702)		(1,499)		(206,573)
Balance at September 30, 2023	$	4,318,705	$	5,670,175	$	1,059,229	$	446,532	$	11,494,641

(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 net premiums
	American Income		DTC		Liberty National		Other		Total
Balance at July 1, 2022	$	4,379,496	$	6,164,946	$	1,123,072	$	461,964	$	12,129,478
Beginning balance at original discount rates	4,146,094		5,616,356		1,042,155		416,918		11,221,523
Effect of changes in assumptions on future cash flows	34,266		79,571		17,719		35,214		166,770
Effect of actual variances from expected experience	(58,998)		(89,037)		(5,994)		(3,741)		(157,770)
Adjusted balance at July 1, 2022	4,121,362		5,606,890		1,053,880		448,391		11,230,523
Issuances(1)	176,042		160,780		24,493		7,553		368,868
Interest accrual(2)	44,410		68,476		12,793		5,270		130,949
Net premiums collected(3)	(123,636)		(151,214)		(31,985)		(11,001)		(317,836)
Effect of changes in the foreign exchange rate	(14,371)		—		—		—		(14,371)
Ending balance at original discount rates	4,203,807		5,684,932		1,059,181		450,213		11,398,133
Effect of change from original to current discount rates	(26,258)		153,525		17,403		15,056		159,726
Balance at September 30, 2022	$	4,177,549	$	5,838,457	$	1,076,584	$	465,269	$	11,557,859
Balance at July 1, 2023	$	4,472,847	$	5,988,577	$	1,110,017	$	471,279	$	12,042,720
Beginning balance at original discount rates	4,399,053		5,700,354		1,071,561		445,475		11,616,443
Effect of changes in assumptions on future cash flows	14,265		36,170		5,178		8,419		64,032
Effect of actual variances from expected experience	(34,571)		(91,120)		(10,938)		(7,232)		(143,861)
Adjusted balance at July 1, 2023	4,378,747		5,645,404		1,065,801		446,662		11,536,614
Issuances(1)	181,823		136,611		32,045		7,143		357,622
Interest accrual(2)	51,119		72,515		13,707		5,741		143,082
Net premiums collected(3)	(131,329)		(153,237)		(33,622)		(11,515)		(329,703)
Effect of changes in the foreign exchange rate	(6,401)		—		—		—		(6,401)
Ending balance at original discount rates	4,473,959		5,701,293		1,077,931		448,031		11,701,214
Effect of change from original to current discount rates	(155,254)		(31,118)		(18,702)		(1,499)		(206,573)
Balance at September 30, 2023	$	4,318,705	$	5,670,175	$	1,059,229	$	446,532	$	11,494,641

(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 on future cash flows	48,534		104,910		33,457		39,725		226,626
Effect of actual variances from expected experience	(81,429)		(174,141)		(14,582)		(8,325)		(278,477)
Adjusted balance at January 1, 2022	7,711,306		8,088,028		3,225,039		3,298,706		22,323,079
Issuances(1)	596,320		499,774		73,299		23,148		1,192,541
Interest accrual(2)	305,526		323,432		126,814		145,941		901,713
Benefit payments(3)	(287,253)		(476,182)		(168,502)		(92,033)		(1,023,970)
Effect of changes in the foreign exchange rate	(51,726)		—		—		—		(51,726)
Ending balance at original discount rates	8,274,173		8,435,052		3,256,650		3,375,762		23,341,637
Effect of change from original to current discount rates	569,356		609,256		108,603		503,107		1,790,322
Balance at September 30, 2022	$	8,843,529	$	9,044,308	$	3,365,253	$	3,878,869	$	25,131,959

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 on future cash flows	13,344		34,407		6,156		11,661		65,568
Effect of actual variances from expected experience	(109,386)		(227,639)		(27,482)		(17,962)		(382,469)
Adjusted balance at January 1, 2023	8,313,719		8,284,660		3,251,654		3,397,403		23,247,436
Issuances(1)	557,844		450,362		92,894		21,756		1,122,856
Interest accrual(2)	335,349		342,208		130,712		152,378		960,647
Benefit payments(3)	(296,133)		(432,393)		(153,294)		(86,008)		(967,828)
Effect of changes in the foreign exchange rate	(819)		—		—		—		(819)
Ending balance at original discount rates	8,909,960		8,644,837		3,321,966		3,485,529		24,362,292
Effect of change from original to current discount rates	80,477		228,607		(46,234)		282,118		544,968
Balance at September 30, 2023	$	8,990,437	$	8,873,444	$	3,275,732	$	3,767,647	$	24,907,260

(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
	Present value of expected future policy benefits
	American Income		DTC		Liberty National		Other		Total
Balance at July 1, 2022	$	9,512,271	$	9,664,209	$	3,622,642	$	4,220,830	$	27,019,952
Beginning balance at original discount rates	8,134,706		8,294,768		3,215,311		3,312,104		22,956,889
Effect of changes in assumptions on future cash flows	48,534		104,910		33,457		39,725		226,626
Effect of actual variances from expected experience	(64,348)		(87,105)		(5,116)		(3,852)		(160,421)
Adjusted balance at July 1, 2022	8,118,892		8,312,573		3,243,652		3,347,977		23,023,094
Issuances(1)	176,044		160,779		24,493		7,550		368,866
Interest accrual(2)	103,380		108,681		42,392		49,097		303,550
Benefit payments(3)	(89,075)		(146,981)		(53,887)		(28,862)		(318,805)
Effect of changes in the foreign exchange rate	(35,068)		—		—		—		(35,068)
Ending balance at original discount rates	8,274,173		8,435,052		3,256,650		3,375,762		23,341,637
Effect of change from original to current discount rates	569,356		609,256		108,603		503,107		1,790,322
Balance at September 30, 2022	$	8,843,529	$	9,044,308	$	3,365,253	$	3,878,869	$	25,131,959

Balance at July 1, 2023	$	9,668,207	$	9,487,233	$	3,507,845	$	4,109,706	$	26,772,991
Beginning balance at original discount rates	8,753,526		8,592,897		3,297,781		3,448,491		24,092,695
Effect of changes in assumptions on future cash flows	13,344		34,407		6,156		11,661		65,568
Effect of actual variances from expected experience	(36,998)		(97,632)		(14,364)		(9,595)		(158,589)
Adjusted balance at July 1, 2023	8,729,872		8,529,672		3,289,573		3,450,557		23,999,674
Issuances(1)	181,822		136,612		32,046		7,145		357,625
Interest accrual(2)	114,683		115,547		43,991		51,249		325,470
Benefit payments(3)	(101,161)		(136,994)		(43,644)		(23,422)		(305,221)
Effect of changes in the foreign exchange rate	(15,256)		—		—		—		(15,256)
Ending balance at original discount rates	8,909,960		8,644,837		3,321,966		3,485,529		24,362,292
Effect of change from original to current discount rates	80,477		228,607		(46,234)		282,118		544,968
Balance at September 30, 2023	$	8,990,437	$	8,873,444	$	3,275,732	$	3,767,647	$	24,907,260

(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 September 30, 2022
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,070,366	$	2,750,120	$	2,197,469	$	2,925,549	$	11,943,504
Effect of changes in discount rate assumptions	595,614		455,731		91,200		488,051		1,630,596
Net liability for future policy benefits at current discount rates	4,665,980		3,205,851		2,288,669		3,413,600		13,574,100
Other Adjustments(1)	851		5,271		(4,056)		(33,790)		(31,724)
Net liability for future policy benefits, after other adjustments, at current discount rates	$	4,666,831	$	3,211,122	$	2,284,613	$	3,379,810	$	13,542,376

(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 September 30, 2023
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,436,001	$	2,943,544	$	2,244,035	$	3,037,498	$	12,661,078
Effect of changes in discount rate assumptions	235,731		259,725		(27,532)		283,617		751,541
Net liability for future policy benefits at current discount rates	4,671,732		3,203,269		2,216,503		3,321,115		13,412,619
Other Adjustments(1)	367		3,982		(1,389)		(32,481)		(29,521)
Net liability for future policy benefits, after other adjustments, at current discount rates	$	4,672,099	$	3,207,251	$	2,215,114	$	3,288,634	$	13,383,098

(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 for the three and nine month periods ended September 30, 2023 and 2022:

	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 on future cash flows	(195,560)		(20,931)		19,846		(17,911)		(9,035)		(223,591)
Effect of actual variances from expected experience	(22,004)		(49,359)		(31,290)		11,506		(1,249)		(92,396)
Adjusted balance at January 1, 2022	2,732,287		1,618,300		402,965		172,396		86,492		5,012,440
Issuances(1)	246,877		175,456		35,831		29,970		3,582		491,716
Interest accrual(2)	91,999		45,147		14,312		5,537		3,487		160,482
Net premiums collected(3)	(192,809)		(129,001)		(38,588)		(15,822)		(7,780)		(384,000)
Effect of changes in the foreign exchange rate	—		—		—		(1,937)		—		(1,937)
Ending balance at original discount rates	2,878,354		1,709,902		414,520		190,144		85,781		5,278,701
Effect of change from original to current discount rates	(72,237)		(158,093)		3,658		(4,636)		1,672		(229,636)
Balance at September 30, 2022	$	2,806,117	$	1,551,809	$	418,178	$	185,508	$	87,453	$	5,049,065
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 on future cash flows	466,883		(30,255)		(56,964)		(6,061)		16,553		390,156
Effect of actual variances from expected experience	(6,240)		(50,052)		(30,526)		(7,643)		(1,666)		(96,127)
Adjusted balance at January 1, 2023	3,401,904		1,648,912		327,952		178,927		102,638		5,660,333
Issuances(1)	226,363		202,561		43,373		30,667		6,532		509,496
Interest accrual(2)	99,390		50,091		14,047		6,304		3,278		173,110
Net premiums collected(3)	(202,669)		(134,009)		(38,322)		(16,611)		(8,028)		(399,639)
Effect of changes in the foreign exchange rate	—		—		—		(165)		—		(165)
Ending balance at original discount rates	3,524,988		1,767,555		347,050		199,122		104,420		5,943,135
Effect of change from original to current discount rates	(183,608)		(192,981)		(8,372)		(9,976)		(1,254)		(396,191)
Balance at September 30, 2023	$	3,341,380	$	1,574,574	$	338,678	$	189,146	$	103,166	$	5,546,944

(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.

	Health
	Present value of expected future net premiums
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at July 1, 2022	$	3,138,706	$	1,650,507	$	425,277	$	193,536	$	102,433	$	5,510,459
Beginning balance at original discount rates	3,022,654		1,706,794		396,741		186,298		94,752		5,407,239
Effect of changes in assumptions on future cash flows	(195,560)		(20,931)		19,846		(17,911)		(9,035)		(223,591)
Effect of actual variances from expected experience	13,731		(13,447)		(7,101)		16,766		294		10,243
Adjusted balance at July 1, 2022	2,840,825		1,672,416		409,486		185,153		86,011		5,193,891
Issuances(1)	71,806		65,523		13,220		9,545		1,260		161,354
Interest accrual(2)	30,794		15,133		4,719		1,858		1,134		53,638
Net premiums collected(3)	(65,071)		(43,170)		(12,905)		(5,282)		(2,624)		(129,052)
Effect of changes in the foreign exchange rate	—		—		—		(1,130)		—		(1,130)
Ending balance at original discount rates	2,878,354		1,709,902		414,520		190,144		85,781		5,278,701
Effect of change from original to current discount rates	(72,237)		(158,093)		3,658		(4,636)		1,672		(229,636)
Balance at September 30, 2022	$	2,806,117	$	1,551,809	$	418,178	$	185,508	$	87,453	$	5,049,065
Balance at July 1, 2023	$	2,984,554	$	1,661,020	$	409,551	$	201,844	$	89,674	$	5,346,643
Beginning balance at original discount rates	2,985,660		1,771,206		400,180		201,709		86,840		5,445,595
Effect of changes in assumptions on future cash flows	466,883		(30,255)		(56,964)		(6,061)		16,553		390,156
Effect of actual variances from expected experience	22,683		(15,658)		(2,692)		(2,394)		229		2,168
Adjusted balance at July 1, 2023	3,475,226		1,725,293		340,524		193,254		103,622		5,837,919
Issuances(1)	82,647		70,216		15,183		9,880		2,317		180,243
Interest accrual(2)	35,536		17,272		4,380		2,170		1,160		60,518
Net premiums collected(3)	(68,421)		(45,226)		(13,037)		(5,630)		(2,679)		(134,993)
Effect of changes in the foreign exchange rate	—		—		—		(552)		—		(552)
Ending balance at original discount rates	3,524,988		1,767,555		347,050		199,122		104,420		5,943,135
Effect of change from original to current discount rates	(183,608)		(192,981)		(8,372)		(9,976)		(1,254)		(396,191)
Balance at September 30, 2023	$	3,341,380	$	1,574,574	$	338,678	$	189,146	$	103,166	$	5,546,944

(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.

	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 on future cash flows	(194,936)		(27,211)		18,065		(21,559)		(8,270)		(233,911)
Effect of actual variances from expected experience	(24,710)		(51,720)		(32,395)		14,231		(1,425)		(96,019)
Adjusted balance at January 1, 2022	2,871,255		3,114,411		907,278		278,276		85,933		7,257,153
Issuances(1)	246,559		175,456		36,171		29,970		3,567		491,723
Interest accrual(2)	97,837		89,968		35,871		10,348		3,487		237,511
Benefit payments(3)	(198,013)		(89,359)		(71,652)		(15,360)		(9,354)		(383,738)
Effect of changes in the foreign exchange rate	—		—		—		(3,927)		—		(3,927)
Ending balance at original discount rates	3,017,638		3,290,476		907,668		299,307		83,633		7,598,722
Effect of change from original to current discount rates	(75,810)		(389,326)		26,139		5,432		1,648		(431,917)
Balance at September 30, 2022	$	2,941,828	$	2,901,150	$	933,807	$	304,739	$	85,281	$	7,166,805

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 on future cash flows	464,652		(32,428)		(60,437)		(6,407)		15,930		381,310
Effect of actual variances from expected experience	(5,530)		(53,292)		(29,581)		(8,680)		(1,925)		(99,008)
Adjusted balance at January 1, 2023	3,539,755		3,250,624		814,847		288,626		99,217		7,993,069
Issuances(1)	225,915		202,561		42,863		30,667		6,518		508,524
Interest accrual(2)	104,932		99,344		34,699		11,199		3,278		253,452
Benefit payments(3)	(221,753)		(92,973)		(73,614)		(18,633)		(9,502)		(416,475)
Effect of changes in the foreign exchange rate	—		—		—		(217)		—		(217)
Ending balance at original discount rates	3,648,849		3,459,556		818,795		311,642		99,511		8,338,353
Effect of change from original to current discount rates	(191,041)		(498,312)		(4,792)		(5,601)		(1,111)		(700,857)
Balance at September 30, 2023	$	3,457,808	$	2,961,244	$	814,003	$	306,041	$	98,400	$	7,637,496

(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.

	Health
	Present value of expected future policy benefits
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at July 1, 2022	$	3,285,696	$	3,129,877	$	985,214	$	321,968	$	99,484	$	7,822,239
Beginning balance at original discount rates	3,160,028		3,267,244		896,137		295,571		92,143		7,711,123
Effect of changes in assumptions on future cash flows	(194,936)		(27,211)		18,065		(21,559)		(8,270)		(233,911)
Effect of actual variances from expected experience	13,347		(14,614)		(8,476)		19,916		191		10,364
Adjusted balance at July 1, 2022	2,978,439		3,225,419		905,726		293,928		84,064		7,487,576
Issuances(1)	71,731		65,524		13,379		9,547		1,257		161,438
Interest accrual(2)	32,729		30,383		11,836		3,462		1,134		79,544
Benefit payments(3)	(65,261)		(30,850)		(23,273)		(5,168)		(2,822)		(127,374)
Effect of changes in the foreign exchange rate	—		—		—		(2,462)		—		(2,462)
Ending balance at original discount rates	3,017,638		3,290,476		907,668		299,307		83,633		7,598,722
Effect of change from original to current discount rates	(75,810)		(389,326)		26,139		5,432		1,648		(431,917)
Balance at September 30, 2022	$	2,941,828	$	2,901,150	$	933,807	$	304,739	$	85,281	$	7,166,805

Balance at July 1, 2023	$	3,116,389	$	3,167,461	$	923,148	$	328,579	$	85,856	$	7,621,433
Beginning balance at original discount rates	3,116,768		3,436,167		880,879		315,087		83,188		7,832,089
Effect of changes in assumptions on future cash flows	464,652		(32,428)		(60,437)		(6,407)		15,930		381,310
Effect of actual variances from expected experience	22,410		(17,000)		(2,563)		(2,662)		(95)		90
Adjusted balance at July 1, 2023	3,603,830		3,386,739		817,879		306,018		99,023		8,213,489
Issuances(1)	82,511		70,215		14,963		9,880		2,310		179,879
Interest accrual(2)	37,340		34,024		11,173		3,810		1,160		87,507
Benefit payments(3)	(74,832)		(31,422)		(25,220)		(6,973)		(2,982)		(141,429)
Effect of changes in the foreign exchange rate	—		—		—		(1,093)		—		(1,093)
Ending balance at original discount rates	3,648,849		3,459,556		818,795		311,642		99,511		8,338,353
Effect of change from original to current discount rates	(191,041)		(498,312)		(4,792)		(5,601)		(1,111)		(700,857)
Balance at September 30, 2023	$	3,457,808	$	2,961,244	$	814,003	$	306,041	$	98,400	$	7,637,496

(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.

	Health
	Net liability for future policy benefits as of September 30, 2022
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	139,284	$	1,580,574	$	493,148	$	109,163	$	(2,148)	$	2,320,021
Effect of changes in discount rate assumptions	(3,573)		(231,233)		22,481		10,068		(24)		(202,281)
Net liability for future policy benefits at current discount rates	135,711		1,349,341		515,629		119,231		(2,172)		2,117,740
Other Adjustments(1)	(169)		583		3,354		56		3,232		7,056
Net liability for future policy benefits, after other adjustments, at current discount rates	$	135,542	$	1,349,924	$	518,983	$	119,287	$	1,060	$	2,124,796

(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 September 30, 2023
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	123,861		1,692,001		471,745		112,520		(4,909)		2,395,218
Effect of changes in discount rate assumptions	(7,433)		(305,331)		3,580		4,375		143		(304,666)
Net liability for future policy benefits at current discount rates	116,428		1,386,670		475,325		116,895		(4,766)		2,090,552
Other Adjustments(1)	4,374		(4,717)		7,043		993		5,530		13,223
Net liability for future policy benefits, after other adjustments, at current discount rates	$	120,802	$	1,381,953	$	482,368	$	117,888	$	764	$	2,103,775

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

In accordance with the accounting guidance, the Company reviews, and updates as necessary, its assumptions utilized in the calculation of the liability for future benefits annually in the third quarter and recalculates the net premium ratio. The revised net premium ratio is used to update the liability for future policy benefits as of the beginning of the current reporting period, and is compared to the liability using the prior cash flow assumptions. The difference is recorded as a component of the remeasurement gain or loss for the current period, along with the effect of the difference between actual and expected experience for the period. The total remeasurement gain or loss is included in the Condensed Consolidated Statements of Operations.

During the third quarter of the current and prior year, the Company performed its annual assumptions review and updated both its life and health assumptions of lapses, mortality, and morbidity, resulting in a net reserve remeasurement gain, due to assumption changes only, of $3.2 million for the periods ended September 30, 2023, as compared to a net reserve remeasurement loss of $36.5 million for the periods ended September 30, 2022. For the life segment, the updates to our assumptions of lapses and mortality resulted in a reserve remeasurement loss of $2.0 million and $47.2 million for the three months ended September 30, 2023 and 2022, respectively. For the health segment, the updates to our assumptions of lapses and morbidity resulted in a reserve remeasurement gain of $5.2 million and $10.7 million for the three months ended September 30, 2023 and 2022, respectively.

Excluding the impact of assumption changes, during the three months ended September 30, 2023 and 2022, the Company's results for actual variances from expected experience produced a net reserve remeasurement gain of $15.9 million and $1.0 million, respectively. During the nine months ended September 30, 2023 and 2022, the Company's results for actual variances from expected experience produced net reserve remeasurement gains of $21.6 million and $1.0 million, respectively. The variance of actual experience from expected experience during the first nine months of 2023 was primarily due to favorable variances from our assumptions as compared to actual experience in our life insurance segment (a $18.5 million gain), and favorable variances from our assumptions as compared to actual experience in our health insurance segment (a $3.1 million gain). The variance of actual

experience from expected experience during the nine months ended 2022 was primarily due to unfavorable variances from our assumptions of life experience as compared to actual experience in our life insurance segment (a $2.1 million loss), and favorable variances from our assumptions of health experience as compared to actual experience in our health insurance segment (a $3.1 million gain).

The following table reconciles the liability for future policy benefits to the Consolidated Balance Sheets as of September 30, 2023:

	At Original Discount Rates				At Current Discount Rates
	As of September 30,				As of September 30,
	2023		2022		2023		2022
Life(1):
American Income	$	4,435,901	$	4,070,359	$	4,672,099	$	4,666,831
Direct to Consumer	2,943,544		2,750,122		3,207,251		3,211,122
Liberty National	2,236,374		2,186,063		2,215,114		2,284,613
Other	3,010,853		2,900,148		3,288,634		3,379,810
Net liability for future policy benefits—long duration life	12,626,672		11,906,692		13,383,098		13,542,376
Health(1):
United American	126,105		137,231		120,802		135,542
Family Heritage	1,681,391		1,571,083		1,381,953		1,349,924
Liberty National	478,078		495,628		482,368		518,983
American Income	113,340		109,217		117,888		119,287
Direct to Consumer	752		1,024		764		1,060
Net liability for future policy benefits—long duration health	2,399,666		2,314,183		2,103,775		2,124,796
Deferred profit liability	173,520		176,296		173,520		176,296
Deferred annuity	813,275		991,687		813,275		991,687
Interest sensitive life	735,025		740,513		735,025		740,513
Other	9,400		9,503		9,405		9,504
Total future policy benefits	$	16,757,558	$	16,138,874	$	17,218,098	$	17,585,172

(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 as of September 30, 2023 and 2022:

	Life
	Weighted-average Discount Rates
	As of September 30, 2023								As of September 30, 2022
	American Income		DTC		Liberty National		Other		American Income		DTC		Liberty National		Other
Original discount rate	5.7	%	6.0	%	5.6	%	6.2	%	5.8	%	6.0	%	5.6	%	6.2	%
Current discount rate	5.6	%	5.6	%	5.7	%	5.7	%	5.2	%	5.3	%	5.3	%	5.3	%

	Health
	Weighted-average Discount Rates
	As of September 30, 2023										As of September 30, 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	%	4.3	%	5.8	%	5.9	%	5.2	%
Current discount rate	5.5	%	5.7	%	5.7	%	5.6	%	5.5	%	5.1	%	5.3	%	5.3	%	5.2	%	5.1	%

The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of September 30, 2023 and 2022:

	As of September 30,
	2023		2022
	At original discount rates	At current discount rates	At original discount rates	At current discount rates
Life
American Income	23.08	23.29	22.91	23.37
Direct to Consumer	19.73	21.00	20.40	21.97
Liberty National	15.12	15.20	14.82	15.31
Other	16.34	17.42	16.65	18.22
Health
United American	11.40	10.34	11.39	10.65
Family Heritage	14.90	13.81	14.90	14.22
Liberty National	9.11	8.97	9.20	9.35
American Income	12.14	12.20	12.14	12.56
Direct to Consumer	11.40	10.34	11.39	10.65

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
	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	1,181,247	$	187,381	$	1,122,987	$	174,275
Direct to Consumer	735,374		127,040		729,950		118,995
Liberty National	256,641		89,765		240,460		88,061
Other	154,836		133,991		156,509		129,118
Total	$	2,328,098	$	538,177	$	2,249,906	$	510,449

	Life
	Three Months Ended September 30, 2023				Three Months Ended September 30, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	399,794	$	63,565	$	377,859	$	58,970
Direct to Consumer	244,931		42,978		243,021		40,161
Liberty National	87,071		30,095		81,007		29,469
Other	51,493		45,065		51,959		43,405
Total	$	783,289	$	181,703	$	753,846	$	172,005

	Health
	Nine Months Ended September 30, 2023				Nine Months Ended September 30, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	298,964	$	5,345	$	283,059	$	5,665
Family Heritage	294,047		48,904		272,431		44,516
Liberty National	139,875		20,567		139,818		21,490
American Income	84,863		4,896		83,880		4,811
Direct to Consumer	10,680		—		10,710		—
Total	$	828,429	$	79,712	$	789,898	$	76,482

	Health
	Three Months Ended September 30, 2023				Three Months Ended September 30, 2022
	Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	100,285	$	1,741	$	95,178	$	1,874
Family Heritage	99,828		16,632		92,133		15,145
Liberty National	46,441		6,766		45,721		7,092
American Income	28,528		1,640		27,939		1,605
Direct to Consumer	3,583		—		3,580		—
Total	$	278,665	$	26,779	$	264,551	$	25,716

Gross premiums are included within life and health premium on the Condensed Consolidated Statements of Operations, while the related interest expense is included in life and health policyholder benefits

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
	As of September 30, 2023						As of September 30, 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 gross premiums	$	23,974,963	$	13,530,015	$	13,147,003	$	22,410,479	$	12,703,160	$	12,721,890
PV of expected future net premiums	7,912,903		4,473,959		4,318,705		7,394,076		4,203,807		4,177,549
PV of expected future policy benefits	30,182,319		8,909,960		8,990,437		27,877,017		8,274,173		8,843,529
DTC
PV of expected future gross premiums	$	17,575,618	$	9,182,146	$	9,112,202	$	17,335,350	$	9,078,493	$	9,301,184
PV of expected future net premiums	10,850,664		5,701,293		5,670,175		10,780,312		5,684,932		5,838,457
PV of expected future policy benefits	25,711,499		8,644,837		8,873,444		25,253,094		8,435,052		9,044,308
Liberty National
PV of expected future gross premiums	$	4,601,176	$	2,681,034	$	2,577,877	$	4,343,332	$	2,525,305	$	2,505,580
PV of expected future net premiums	1,901,039		1,077,931		1,059,229		1,876,758		1,059,181		1,076,584
PV of expected future policy benefits	8,852,345		3,321,966		3,275,732		8,553,973		3,256,650		3,365,253
Other
PV of expected future gross premiums	$	3,753,093	$	1,901,531	$	1,953,533	$	3,832,082	$	1,932,064	$	2,055,807
PV of expected future net premiums	919,200		448,031		446,532		925,064		450,213		465,269
PV of expected future policy benefits	12,427,646		3,485,529		3,767,647		12,333,168		3,375,762		3,878,869
Total
PV of expected future gross premiums	$	49,904,850	$	27,294,726	$	26,790,615	$	47,921,243	$	26,239,022	$	26,584,461
PV of expected future net premiums	21,583,806		11,701,214		11,494,641		20,976,210		11,398,133		11,557,859
PV of expected future policy benefits	77,173,809		24,362,292		24,907,260		74,017,252		23,341,637		25,131,959

As of September 30, 2023 for the life segment using current discount rates, the Company anticipates $26.8 billion of expected future gross premiums and $11.5 billion of expected future net premiums. As of September 30, 2022 using current discount rates, the Company anticipated $26.6 billion of expected future gross premiums and $11.6 billion in expected future net premiums. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.

	Health
	As of September 30, 2023						As of September 30, 2022
	Not discounted		At original discount rates		At current discount rates		Not discounted		At original discount rates		At current discount rates
United American
PV of expected future gross premiums	$	8,442,713	$	5,141,771	$	4,871,878	$	6,659,804	$	4,191,787	$	4,082,931
PV of expected future net premiums	5,799,017		3,524,988		3,341,380		4,586,540		2,878,354		2,806,117
PV of expected future policy benefits	5,998,770		3,648,849		3,457,808		4,818,514		3,017,638		2,941,828
Family Heritage
PV of expected future gross premiums	$	6,637,472	$	3,932,327	$	3,523,258	$	6,221,234	$	3,732,771	$	3,413,372
PV of expected future net premiums	2,962,973		1,767,555		1,574,574		2,824,266		1,709,902		1,551,809
PV of expected future policy benefits	6,549,339		3,459,556		2,961,244		6,140,498		3,290,476		2,901,150
Liberty National
PV of expected future gross premiums	$	2,084,428	$	1,321,438	$	1,308,898	$	2,268,736	$	1,413,365	$	1,439,069
PV of expected future net premiums	515,612		347,050		338,678		654,018		414,520		418,178
PV of expected future policy benefits	1,414,512		818,795		814,003		1,606,868		907,668		933,807
American Income
PV of expected future gross premiums	$	1,755,682	$	984,122	$	969,090	$	1,738,642	$	971,620	$	987,597
PV of expected future net premiums	354,120		199,122		189,146		337,734		190,144		185,508
PV of expected future policy benefits	632,349		311,642		306,041		609,213		299,307		304,739
Direct to Consumer
PV of expected future gross premiums	$	224,522	$	141,374	$	139,748	$	173,045	$	113,484	$	115,727
PV of expected future net premiums	166,099		104,420		103,166		130,993		85,781		87,453
PV of expected future policy benefits	154,931		99,511		98,400		125,591		83,633		85,281
Total
PV of expected future gross premiums	$	19,144,817	$	11,521,032	$	10,812,872	$	17,061,461	$	10,423,027	$	10,038,696
PV of expected future net premiums	9,797,821		5,943,135		5,546,944		8,533,551		5,278,701		5,049,065
PV of expected future policy benefits	14,749,901		8,338,353		7,637,496		13,300,684		7,598,722		7,166,805

As of September 30, 2023 for the health segment using current discount rates, the Company anticipates $10.8 billion of expected future gross premiums and $5.5 billion of expected future net premiums. As of September 30, 2022 using current discount rates, the Company anticipated $10.0 billion of expected future gross premiums and $5.0 billion in expected future net premiums. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not.

The following table summarizes the balances of, and changes in, policyholders’ account balances as of September 30, 2023 and 2022:

	Policyholders' Account Balances
	2023						2022
	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds		Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
Balance at January 1,	$	739,105	$	954,318	$	123,234	$	745,335	$	1,033,525	$	99,468
Issuances	—		602		—		—		1,031		—
Premiums received	17,062		10,543		100,113		18,133		18,898		8,689
Policy charges	(9,729)		—		—		(10,247)		—		—
Surrenders and withdrawals	(16,204)		(125,176)		(9,106)		(16,708)		(52,264)		(8,701)
Benefit payments	(22,753)		(48,459)		—		(25,913)		(34,684)		—
Interest credited	21,274		21,608		6,164		21,475		24,702		3,522
Other	6,270		(161)		(2,195)		8,438		479		72
Balance at September 30,	$	735,025	$	813,275	$	218,210	$	740,513	$	991,687	$	103,050

	Policyholders' Account Balances
	2023						2022
	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds		Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
Balance at July 1,	$	736,920	$	853,064	$	187,873	$	742,293	$	1,015,804	$	100,234
Issuances	—		231		—		—		338		—
Premiums received	5,398		2,439		31,704		5,746		4,824		4,797
Policy charges	(3,213)		—		—		(3,373)		—		—
Surrenders and withdrawals	(5,582)		(37,905)		(2,782)		(5,955)		(26,148)		(3,059)
Benefit payments	(7,258)		(11,047)		—		(7,552)		(11,232)		—
Interest credited	7,083		6,863		2,825		7,110		8,112		1,264
Other	1,677		(370)		(1,410)		2,244		(11)		(186)
Balance at September 30,	$	735,025	$	813,275	$	218,210	$	740,513	$	991,687	$	103,050

Weighted-average credit rate	3.91		%	3.34	%	5.68	%	3.89		%	3.27	%	5.07	%
Net amount at risk	$	1,793,787		N/A		N/A		$	1,899,046		N/A		N/A
Cash surrender value	673,814			813,276		218,210		690,020			991,600		103,049

The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policy holders and the respective guaranteed minimums:

	At September 30, 2023
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum
Less than 3.00%	$	—	$	2,011	$	118,565
3.00%-3.99%	29,018		610,785		4,002
4.00%-4.99%	615,835		199,724		6,851
Greater than 5.00%	90,172		755		38,788
Total	735,025		813,275		168,206
51-150 basis points above
Less than 3.00%	—		—		—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		50,004
Greater than 5.00%	—		—		—
Total	—		—		50,004
Grand Total	$	735,025	$	813,275	$	218,210

	At September 30, 2022
Range of guaranteed minimum crediting rates	Interest Sensitive Life		Deferred Annuity		Other Policyholders' Funds
At guaranteed minimum
Less than 3.00%	$	—	$	2,104	$	3,007
3.00%-3.99%	28,776		778,673		2,941
4.00%-4.99%	622,316		210,910		58,888
Greater than 5.00%	89,421		—		38,214
Total	$	740,513	$	991,687	$	103,050
51-150 basis points above
Less than 3.00%	$	—	$	—	$	—
3.00%-3.99%	—		—		—
4.00%-4.99%	—		—		—
Greater than 5.00%	—		—		—
Total	—		—		—
Grand Total	$	740,513	$	991,687	$	103,050