XML 38 R27.htm IDEA: XBRL DOCUMENT
v3.23.2

Life Insurance Liabilities | 3 Months Ended
--- | ---
Jun. 30, 2023
Insurance [Abstract] |
Life Insurance Liabilities | The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 91% of the total liability for future policy benefits. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits 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. Net level premiums reflect a recomputed net premium ratio 1 using actual experience since the issue date or the Transition Date, and expected future experience. The liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity and product type. Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, lapse, and persistency. Each quarter, the Company remeasures its liability for future policy benefits using current discount rates with the effect of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions. The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, lapses and persistency) used to calculate the change in the liability for future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. When the expected future net premiums exceed the expected future gross premiums, or the present value of future policyholder benefits exceeds the present value of expected future gross premiums, the liability for future policy benefits is adjusted with changes recognized in policyholder benefits. The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used for individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse and persistency assumptions are based on Company experience. The liability for future policy benefits is discounted as noted above, using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observable inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used for interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability. The liability for future policy benefits for annuity and interest sensitive life-type products is represented by policy account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in-force. The following tables present the balances and changes in the policy benefits and a reconciliation of the net liability for future policy benefits to the liability for future policy benefits for Oxford. Three Months Ended June 30, 2023 Life Insurance Health Insurance Total (Unaudited) (In thousands) Present value of expected net premiums Balance, beginning of year $ 223,118 $ 196,569 $ 419,687 Beginning balance at original discount rate $ 225,071 $ 212,454 $ 437,525 Effect of changes in cash flow assumptions – – – Effect of actual variances from expected experience 246 1 247 Adjusted beginning of year balance $ 225,317 $ 212,455 $ 437,772 Issuances 2,353 75 2,428 Interest accrual 2,574 2,112 4,686 Net premium collected (9,769) (6,810) (16,579) Other – – – Ending balance at original discount rate $ 220,475 $ 207,832 $ 428,307 Effect of changes in discount rate assumptions (AOCI) 2,166 (10,807) (8,641) Balance, end of period $ 222,641 $ 197,025 $ 419,666 Present value of expected future policy benefits Balance, beginning of year $ 530,983 $ 210,054 $ 741,037 Beginning balance at original discount rate $ 533,688 $ 226,510 $ 760,198 Effect of changes in cash flow assumptions – – – Effect of actual variances from expected experiences 355 2,133 2,488 Adjusted beginning of year balance $ 534,043 $ 228,643 $ 762,686 Issuances 2,398 75 2,473 Interest accrual 6,534 2,273 8,807 Benefit payments (14,311) (8,773) (23,084) Other – – – Ending balance at original discount rate $ 528,664 $ 222,218 $ 750,882 Effect of changes in discount rate assumptions (AOCI) 10,786 (11,015) (229) Balance, end of period $ 539,450 $ 211,203 $ 750,653 End of period, LFPB net 330,987 Payout annuities and market risk benefits 31,375 Life and annuity ICOS and IBNR / Reinsurance losses payable 28,910 Life DPL / Other life and health 10,195 Oxford end of period balance 401,467 Moving and Storage balance 328,009 Property and Casualty balance 148,960 Policy benefit and losses, claims and loss expense balance, end of period $ 878,436 Three Months Ended June 30, 2023 Life Insurance Health Insurance Total (Unaudited) (In thousands, except for percentages and weighted average information) Expected gross premiums Undiscounted balance $ 395,641 $ 348,671 $ 744,312 Discounted balance at original discount rate $ 305,166 $ 269,458 $ 574,624 Discounted balance at current discount rate $ 307,763 $ 257,488 $ 565,251 Expected policy benefits Undiscounted balance $ 770,210 $ 289,249 $ 1,059,459 Discounted balance at original discount rate $ 528,663 $ 222,219 $ 750,882 Discounted balance at current discount rate $ 539,449 $ 211,204 $ 750,653 Mortality, lapses and morbidity Mortality actual experience 5.29 % – % Mortality expected experience 4.93 % – % Lapses actual experience 1.71 % – % Lapses expected experience 2.64 % – % Morbidity actual experience – % 92.11 % Morbidity expected experience – % 73.02 % Reserve and interest Gross premiums $ 13,414 $ 9,358 $ 22,772 Other premiums 359 Total premiums $ 23,131 Interest expense $ 3,960 $ 161 $ 4,121 Expected future lifetime (persistency) of policies in force (years) 8.2 8.4 Weighted average original interest rate of the liability for future policy benefits 5.23 % 4.04 % Weighted average current interest rate of the liability for future policy benefits 4.87 % 4.68 % Three Months Ended June 30, 2022 Life Insurance Health Insurance Total (Unaudited) (In thousands) Present value of expected net premiums Balance, beginning of year $ 280,371 $ 280,721 $ 561,092 Beginning balance at original discount rate $ 242,741 $ 253,297 $ 496,038 Effect of changes in cash flow assumptions – – – Effect of actual variances from expected experience (1,949) (22,834) (24,783) Adjusted beginning of year balance $ 240,792 $ 230,463 $ 471,255 Issuances 14,064 2,451 16,515 Interest accrual 2,818 2,330 5,148 Net premium collected (10,517) (7,706) (18,223) Other – – – Ending balance at original discount rate $ 247,157 $ 227,538 $ 474,695 Effect of changes in discount rate assumptions (AOCI) 20,298 6,510 26,808 Balance, end of period $ 267,455 $ 234,048 $ 501,503 Present value of expected future policy benefits Balance, beginning of year $ 672,254 $ 299,605 $ 971,859 Beginning balance at original discount rate $ 552,109 $ 269,157 $ 821,266 Effect of changes in cash flow assumptions – – – Effect of actual variances from expected experiences (4,530) (21,750) (26,280) Adjusted beginning of year balance $ 547,579 $ 247,407 $ 794,986 Issuances 14,064 2,451 16,515 Interest accrual 6,866 2,501 9,367 Benefit payments (16,734) (9,258) (25,992) Other – – – Ending balance at original discount rate $ 551,775 $ 243,101 $ 794,876 Effect of changes in discount rate assumptions (AOCI) 66,399 7,818 74,217 Balance, end of period $ 618,174 $ 250,919 $ 869,093 End of period, LFPB net 367,590 Payout annuities and market risk benefits 31,685 Life and annuity ICOS and IBNR / Reinsurance losses payable 42,293 Life DPL / Other life and health 11,423 Oxford end of period balance 452,991 Moving and Storage balance 339,155 Property and Casualty balance 159,142 Policy benefit and losses, claims and loss expense balance, end of period $ 951,288 Three Months Ended June 30, 2022 Life Insurance Health Insurance Total (Unaudited) (In thousands, except for percentages and weighted average information) Expected gross premiums Undiscounted balance $ 446,750 $ 399,813 $ 846,563 Discounted balance at original discount rate $ 342,588 $ 306,424 $ 649,012 Discounted balance at current discount rate $ 370,404 $ 317,466 $ 687,870 Expected policy benefits Undiscounted balance $ 816,240 $ 319,046 $ 1,135,286 Discounted balance at original discount rate $ 551,775 $ 243,102 $ 794,877 Discounted balance at current discount rate $ 618,174 $ 250,920 $ 869,094 Mortality, lapses and morbidity Mortality actual experience 5.72 % – % Mortality expected experience 4.64 % – % Lapses actual experience 2.37 % – % Lapses expected experience 2.53 % – % Morbidity actual experience – % 82.38 % Morbidity expected experience – % 70.92 % Reserve and interest Gross premiums $ 14,526 $ 11,043 $ 25,569 Other premiums 212 Total premiums $ 25,781 Interest expense $ 4,048 $ 171 $ 4,219 Expected future lifetime (persistency) of policies in force (years) 8.6 7.9 Weighted average original interest rate of the liability for future policy benefits 5.40 % 4.11 % Weighted average current interest rate of the liability for future policy benefits 0.65 % 0.42 % The following tables present the balances and changes in Liabilities from investment contracts account balances: Three Months Ended June 30, 2023 Deferred Annuities (Unaudited) (In thousands, except for the average credited rate) Policyholder contract deposits account balance Beginning of year $ 2,398,884 Deposits received 43,944 Surrenders and withdrawals (64,445) Benefit payments (10,813) Interest credited 16,760 Other – End of period $ 2,384,330 Weighted average credited rate 2.79 Cash surrender value $ 2,069,292 Three Months Ended June 30, 2022 Deferred Annuities (Unaudited) (In thousands, except for the average credited rate) Policyholder contract deposits account balance Beginning of year $ 2,336,238 Deposits received 86,136 Surrenders and withdrawals (53,297) Benefit payments (9,468) Interest credited 14,641 Other – End of period $ 2,374,250 Weighted average credited rate 2.47 Cash surrender value$2,093,415

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI https://asc.fasb.org/topic&trid=2303980 + Details
Name: | us-gaap_InsuranceDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration