Deferred Acquisition Costs (Tables)

9 Months Ended

Sep. 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 nine month periods ended September 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	341,585		140,449		66,073		10,268		558,375
Amortization expense	(104,124)		(70,478)		(33,899)		(12,594)		(221,095)
Foreign exchange adjustment	(15,003)		—		—		—		(15,003)
Experience adjustment	—		—		—		—		—
Balance at September 30, 2022	$	2,182,712	$	1,653,666	$	598,593	$	299,321	$	4,734,292
Balance at January 1, 2023	$	2,258,291	$	1,676,931	$	610,723	$	298,346	$	4,844,291
Capitalizations	351,933		123,774		78,599		9,970		564,276
Amortization expense	(118,207)		(74,496)		(38,192)		(12,390)		(243,285)
Foreign exchange adjustment	(1,297)		—		—		—		(1,297)
Experience adjustment	—		—		—		—		—
Balance at September 30, 2023	$	2,490,720	$	1,726,209	$	651,130	$	295,926	$	5,163,985

	Life
	American Income		DTC		Liberty National		Other		Total
Balance at July 1, 2022	$	2,116,771	$	1,630,734	$	586,898	$	300,272	$	4,634,675
Capitalizations	111,564		46,792		23,259		3,250		184,865
Amortization expense	(35,860)		(23,860)		(11,564)		(4,201)		(75,485)
Foreign exchange adjustment	(9,763)		—		—		—		(9,763)
Experience adjustment	—		—		—		—		—
Balance at September 30, 2022	$	2,182,712	$	1,653,666	$	598,593	$	299,321	$	4,734,292
Balance at July 1, 2023	$	2,417,480	$	1,714,715	$	636,209	$	296,861	$	5,065,265
Capitalizations	117,761		36,385		27,950		3,203		185,299
Amortization expense	(40,465)		(24,891)		(13,029)		(4,138)		(82,523)
Foreign exchange adjustment	(4,056)		—		—		—		(4,056)
Experience adjustment	—		—		—		—		—
Balance at September 30, 2023	$	2,490,720	$	1,726,209	$	651,130	$	295,926	$	5,163,985

	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	1,628		38,500		13,357		9,408		2		62,895
Amortization expense	(4,503)		(19,048)		(9,990)		(2,567)		(134)		(36,242)
Foreign exchange adjustment	—		—		—		(755)		—		(755)
Experience adjustment	—		—		—		—		—		—
Balance at September 30, 2022	$	78,265	$	408,419	$	130,904	$	55,492	$	1,900	$	674,980
Balance at January 1, 2023	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
Capitalizations	1,491		46,977		14,854		9,579		—		72,901
Amortization expense	(4,504)		(20,071)		(9,977)		(2,919)		(137)		(37,608)
Foreign exchange adjustment	—		—		—		(125)		—		(125)
Experience adjustment	—		—		—		—		—		—
Balance at September 30, 2023	$	74,381	$	443,514	$	137,973	$	64,346	$	1,717	$	721,931

	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at July 1, 2022	$	79,174	$	401,722	$	129,592	$	53,776	$	1,945	$	666,209
Capitalizations	560		13,070		4,621		3,063		—		21,314
Amortization expense	(1,469)		(6,373)		(3,309)		(880)		(45)		(12,076)
Foreign exchange adjustment	—		—		—		(467)		—		(467)
Experience adjustment	—		—		—		—		—		—
Balance at September 30, 2022	$	78,265	$	408,419	$	130,904	$	55,492	$	1,900	$	674,980
Balance at July 1, 2023	$	75,349	$	433,999	$	136,276	$	62,285	$	1,760	$	709,669
Capitalizations	495		16,386		5,120		3,259		—		25,260
Amortization expense	(1,463)		(6,871)		(3,423)		(1,016)		(43)		(12,816)
Foreign exchange adjustment	—		—		—		(182)		—		(182)
Experience adjustment	—		—		—		—		—		—
Balance at September 30, 2023	$	74,381	$	443,514	$	137,973	$	64,346	$	1,717	$	721,931

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

	September 30,
	2023		2022
Life
American Income	$	2,490,720	$	2,182,712
Direct to Consumer	1,726,209		1,653,666
Liberty National	651,130		598,593
Other	295,926		299,321
Total DAC - Life	5,163,985		4,734,292
Health
United American	74,381		78,265
Family Heritage	443,514		408,419
Liberty National	137,973		130,904
American Income	64,346		55,492
Direct to Consumer	1,717		1,900
Total DAC - Health	721,931		674,980
Annuity	3,377		5,085
Total	$	5,889,293	$	5,414,357