XML 49 R24.htm IDEA: XBRL DOCUMENT
v3.23.3

Accounting Pronouncements (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract] |
Accounting Standards Update and Change in Accounting Principle |
(In thousands) | Life Insurance | Home Service Insurance |  |  | Consolidated
Liability for Future Policy Benefits |  |  |  |  |
Pre-adoption liability as of 12/31/2020 | $ | 987,373 |  | 255,513 |  |  |  | 1,242,886 |
Change in discount rate assumptions | 261,823 |  | 108,468 |  |  |  | 370,291 |
Effect of reserve changes | 6 |  | 96 |  |  |  | 102 |
Post-adoption liability as of 1/1/2021 | $ | 1,249,202 |  | 364,077 |  |  |  | 1,613,279 |
Fixed Annuity Liability |  |  |  |  |
Pre-adoption liability as of 12/31/2020 | $ | 60,027 |  | 18,277 |  |  |  | 78,304 |
Adjustments for the removal of shadow adjustments | — |  | 3,426 |  |  |  | 3,426 |
Post-adoption liability as of 1/1/2021 | $ | 60,027 |  | 21,703 |  |  |  | 81,730 |
Deferred Acquisition Costs |  |  |  |  |
Pre-adoption balance as of 12/31/2020 | $ | 94,771 |  | 10,142 |  |  |  | 104,913 |
Adjustments for the removal of shadow adjustments | 8,270 |  | 29,905 |  |  |  | 38,175 |
Impact of flooring cohorts at zero | 23 |  | 12 |  |  |  | 35 |
Post adoption balance as of 1/1/2021 | $ | 103,064 |  | 40,059 |  |  |  | 143,123 |
Cost of Insurance Acquired |  |  |  |  |
Pre-adoption balance as of 12/31/2020 | $ | 1,734 |  | 9,807 |  |  |  | 11,541 |
Adjustments for the removal of shadow adjustments | — |  | 484 |  |  |  | 484 |
Post adoption balance as of 1/1/2021 | $ | 1,734 |  | 10,291 |  |  |  | 12,025 |
At transition, the Company recorded a charge of $0.1 million to retained earnings, net of tax, primarily from capping net premium ratios for certain policyholder benefit cohorts at 100%, increasing reserves for certain non-premium paying cohorts and flooring certain DAC cohorts at zero. Other comprehensive income ("OCI") was reduced by $316.8 million primarily due to the difference in the discount rate used prior to transition and the discount rate at January 1, 2021. The Company also removed shadow adjustments previously recorded in OCI for the impact of unrealized gains and losses on annuity products that previously amortized unearned revenue, DAC and COIA over expected future gross profits. Impacts to Previously Reported Results Adoption of the standard impacted our previously reported consolidated financial results as follows:
(In thousands) | As Previously Reported | Adoption of New Standard | Post Adoption
As of December 31, 2022 |  |  |
Consolidated Balance Sheet |  |  |
Deferred policy acquisition costs | $ | 140,167 |  | 22,760 |  | 162,927 |
Cost of insurance acquired | 10,260 |  | 387 |  | 10,647 |
Deferred tax asset, net | 2,414 |  | (2,414) |  | — |
Total assets | 1,569,970 |  | 20,733 |  | 1,590,703 |
Future policy benefit reserves: |  |  |
Life insurance | 1,305,506 |  | (106,859) |  | 1,198,647 |
Annuities | 91,234 |  | (91,234) |  | — |
Policyholders' funds: |  |  |
Annuities | — |  | 121,422 |  | 121,422 |
Other policyholders' funds | 40,497 |  | (32,996) |  | 7,501 |
Deferred federal income tax liability | — |  | 3,653 |  | 3,653 |
Total liabilities | 1,568,927 |  | (106,014) |  | 1,462,913 |
Retained earnings (accumulated deficit) | (52,203) |  | 68,512 |  | 16,309 |
Accumulated other comprehensive income (loss) | (195,279) |  | 58,235 |  | (137,044) |
Total stockholders' equity | 1,043 |  | 126,747 |  | 127,790 |
(In thousands, except per share amounts) | As Previously Reported | Adoption of New Standard | Post Adoption
For the Three Months Ended September 30, 2022 |  |  |
Consolidated Statement of Operations |  |  |
Increase (decrease) in future policy benefit reserves | $ | 7,090 |  | (6,437) |  | 653 |
Policyholder liability remeasurement (gain) loss | — |  | 396 |  | 396 |
Amortization of deferred policy acquisition costs | 7,082 |  | (3,458) |  | 3,624 |
Amortization of cost of insurance acquired | 276 |  | (110) |  | 166 |
Federal income tax expense (benefit) | 344 |  | 1,071 |  | 1,415 |
Net income (loss) | (5,131) |  | 8,538 |  | 3,407 |
Basic earnings (losses) per share of Class A common stock | (0.10) |  | 0.17 |  | 0.07 |
Diluted earnings (losses) per share of Class A common stock | (0.10) |  | 0.16 |  | 0.06 |
Consolidated Statement of Comprehensive Income (Loss) |  |
Unrealized holding gains (losses) arising during period | $ | (89,713) |  | 1,331 |  | (88,382) |
Change in current discount rate for liability for future policy benefits | — |  | 73,214 |  | 73,214 |
Income tax expense (benefit) on other comprehensive income items | (5,079) |  | 4,895 |  | (184) |
Other comprehensive income (loss) | (84,591) |  | 69,650 |  | (14,941) |
Total comprehensive income (loss) | (89,722) |  | 78,188 |  | (11,534) |
For the Nine Months Ended September 30, 2022 |  |  |
Consolidated Statement of Operations |  |  |
Increase (decrease) in future policy benefit reserves | $ | 23,037 |  | (18,540) |  | 4,497 |
Policyholder liability remeasurement (gain) loss | — |  | 1,731 |  | 1,731 |
Amortization of deferred policy acquisition costs | 18,869 |  | (8,218) |  | 10,651 |
Amortization of cost of insurance acquired | 775 |  | (329) |  | 446 |
Federal income tax expense (benefit) | 622 |  | 2,996 |  | 3,618 |
Net income (loss) | (10,012) |  | 22,360 |  | 12,348 |
Basic earnings (losses) per share of Class A common stock | (0.20) |  | 0.45 |  | 0.25 |
Diluted earnings (losses) per share of Class A common stock | (0.20) |  | 0.44 |  | 0.24 |
Consolidated Statement of Comprehensive Income (Loss) |  |
Unrealized holding gains (losses) arising during period | $ | (343,989) |  | 3,311 |  | (340,678) |
Change in current discount rate for liability for future policy benefits | — |  | 345,258 |  | 345,258 |
Income tax expense (benefit) on other comprehensive income items | (18,880) |  | 25,042 |  | 6,162 |
Other comprehensive income (loss) | (325,031) |  | 323,527 |  | (1,504) |
Total comprehensive income (loss) | (335,043) |  | 345,887 |  | 10,844 |

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

X
- Definition Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-1 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482989/270-10-45-12 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 270 -SubTopic 10 -Section 45 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482989/270-10-45-13 + Details
Name: | us-gaap_ScheduleOfNewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration