Policyholders' Liabilities (Tables)

6 Months Ended

Jun. 30, 2024

Liability for Future Policy Benefit, Activity

The following tables summarize balances of and changes in the liability for future policy benefits for our reporting cohorts: Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy,

and Permanent Limited Pay, which summarizes insurance policies with premiums payable for a limited time after which the policy is fully paid up. Both reporting cohorts include whole life and endowment policies.


June 30, 2024 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	244,917	13,260	258,177		98,831	14,926	113,757
Beginning balance at original discount rate	252,426		13,533	265,959		102,045	15,512	117,557

Effects of actual variances from expected experience	(3,880)		456	(3,424)		(2,791)	(1,813)	(4,604)
Adjusted beginning of year balance	248,546		13,989	262,535		99,254	13,699	112,953
Issuances	39,391		1,566	40,957		8,038	1,278	9,316
Interest accrual	5,243		245	5,488		2,135	266	2,401
Net premiums collected	(21,932)		(1,537)	(23,469)		(6,056)	159	(5,897)
Derecognition and other	(3,417)		97	(3,320)		190	35	225
Ending balance at original discount rate	267,831		14,360	282,191		103,561	15,437	118,998
Effect of changes in discount rates	(10,055)		(333)	(10,388)		(5,741)	(867)	(6,608)
Balance, end of period	$	257,776	14,027	271,803		97,820	14,570	112,390

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	973,350	195,122	1,168,472		211,946	122,784	334,730
Beginning balance at original discount rate	995,962		202,755	1,198,717		217,524	123,941	341,465

Effects of actual variances from expected experience	(2,480)		2,137	(343)		(2,714)	(917)	(3,631)
Adjusted beginning of year balance	993,482		204,892	1,198,374		214,810	123,024	337,834
Issuances	39,803		1,650	41,453		8,037	1,280	9,317
Interest accrual	22,134		4,127	26,261		4,826	2,878	7,704
Benefit payments	(42,634)		(9,283)	(51,917)		(7,789)	(3,037)	(10,826)
Derecognition and other	(4,154)		16	(4,138)		187	32	219
Ending balance at original discount rate	1,008,631		201,402	1,210,033		220,071	124,177	344,248
Effect of changes in discount rates	(45,573)		(13,063)	(58,636)		(15,138)	(7,865)	(23,003)
Balance, end of period	$	963,058	188,339	1,151,397		204,933	116,312	321,245

Net liability for future policy benefits	$	705,282	174,312	879,594		107,113	101,742	208,855

Less: Reinsurance recoverable	142		—	142		—	—	—
Net liability for future policy benefits, after reinsurance recoverable	$	705,140	174,312	879,452		107,113	101,742	208,855


June 30, 2023 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	235,228	10,209	245,437		93,508	13,255	106,763
Beginning balance at original discount rate	247,601		10,682	258,283		100,225	14,394	114,619

Effects of actual variances from expected experience	3,081		466	3,547		(2,910)	(2,291)	(5,201)
Adjusted beginning of year balance	250,682		11,148	261,830		97,315	12,103	109,418
Issuances	13,189		1,449	14,638		9,091	2,125	11,216
Interest accrual	4,571		150	4,721		1,996	230	2,226
Net premiums collected	(20,049)		(1,203)	(21,252)		(5,919)	948	(4,971)
Derecognition and other	293		60	353		272	82	354
Ending balance at original discount rate	248,686		11,604	260,290		102,755	15,488	118,243
Effect of changes in discount rates	(10,320)		(404)	(10,724)		(5,247)	(927)	(6,174)
Balance, end of period	$	238,366	11,200	249,566		97,508	14,561	112,069

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	947,415	195,612	1,143,027		200,351	116,356	316,707
Beginning balance at original discount rate	996,169		208,051	1,204,220		214,188	121,908	336,096

Effects of actual variances from expected experience	4,533		2,114	6,647		(2,750)	(579)	(3,329)
Adjusted beginning of year balance	1,000,702		210,165	1,210,867		211,438	121,329	332,767
Issuances	13,442		1,479	14,921		9,090	2,129	11,219
Interest accrual	21,673		4,210	25,883		4,642	2,822	7,464
Benefit payments	(39,414)		(10,676)	(50,090)		(8,532)	(3,317)	(11,849)
Derecognition and other	31		29	60		268	80	348
Ending balance at original discount rate	996,434		205,207	1,201,641		216,906	123,043	339,949
Effect of changes in discount rates	(38,485)		(10,615)	(49,100)		(10,009)	(3,436)	(13,445)
Balance, end of period	$	957,949	194,592	1,152,541		206,897	119,607	326,504

Net liability for future policy benefits	$	719,583	183,392	902,975		109,389	105,046	214,435

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets.


	June 30, 2024				June 30, 2023
(In thousands)	Life Insurance		Home Service Insurance	Consolidated	Life Insurance	Home Service Insurance	Consolidated
Life Insurance:
Permanent	$	705,140	107,113	812,253	719,583	109,389	828,972
Permanent limited pay	174,312		101,742	276,054	183,392	105,046	288,438
Deferred profit liability	29,749		27,849	57,598	26,602	25,667	52,269
Other	29,609		14,079	43,688	27,781	13,860	41,641
Total life insurance	938,810		250,783	1,189,593	957,358	253,962	1,211,320
Accident & Health:

Other	634		361	995	662	264	926

Total future policy benefit reserves	$	939,444	251,144	1,190,588	958,020	254,226	1,212,246

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.


	June 30, 2024			June 30, 2023
(In thousands)	Life Insurance		Home Service Insurance	Life Insurance	Home Service Insurance
Undiscounted:
Permanent:
Expected future gross premiums	$	687,927	455,504	603,067	464,108
Expected future benefit payments	1,538,163		491,992	1,478,283	482,298

Permanent Limited Pay:
Expected future gross premiums	46,682		77,217	46,441	78,064
Expected future benefit payments	325,481		321,190	319,604	319,950





Discounted:
Permanent:
Expected future gross premiums	$	517,392	267,791	467,315	275,847
Expected future benefit payments	963,058		204,933	957,949	206,897

Permanent Limited Pay:
Expected future gross premiums	41,444		51,050	41,200	53,518
Expected future benefit payments	188,339		116,312	194,592	119,607

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statement of operations and comprehensive income (loss):


	Three Months Ended June 30,					Six Months Ended June 30,
	2024			2023		2024		2023
(In thousands)	Gross Premiums		Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense
Life Insurance Segment:
Life Insurance:
Permanent	$	24,801	8,427	22,507	8,532	48,117	16,891	44,965	17,102
Permanent Limited Pay	4,026		2,207	3,610	2,167	7,672	4,470	7,778	4,503
Other	3,933		—	2,738	—	5,042	—	2,815	—
Less:
Reinsurance	1,358		—	412	—	1,731	—	1,060	—
Total, net of reinsurance	31,402		10,634	28,443	10,699	59,100	21,361	54,498	21,605
Accident & Health:

Other	204		—	332	—	368	—	484	—
Less:
Reinsurance	1		—	2	—	2	—	2	—
Total, net of reinsurance	203		—	330	—	366	—	482	—
Total	$	31,605	10,634	28,773	10,699	59,466	21,361	54,980	21,605

Home Service Insurance Segment:
Life Insurance:
Permanent	$	8,225	1,347	8,268	1,322	16,466	2,691	16,640	2,646
Permanent Limited Pay	2,028		1,632	2,117	1,592	4,068	3,258	4,271	3,178
Other	453		—	466	—	747	—	834	—
Less:
Reinsurance	7		—	2	—	19	—	17	—
Total, net of reinsurance	10,699		2,979	10,849	2,914	21,262	5,949	21,728	5,824
Accident & Health:

Other	255		—	217	—	506	—	423	—



Total	$	10,954	2,979	11,066	2,914	21,768	5,949	22,151	5,824

The following table provides the weighted-average durations of the liability for future policy benefits.


	June 30, 2024		June 30, 2023
(In years)	Life Insurance	Home Service Insurance	Life Insurance	Home Service Insurance
Permanent:
Duration at original discount rate	8.3	16.1	8.1	16.2
Duration at current discount rate	8.5	15.7	8.4	16.5
Permanent Limited Pay:
Duration at original discount rate	8.1	14.5	7.7	14.7
Duration at current discount rate	7.8	14.4	7.6	15.3

The following table provides the weighted-average interest rates for the liability for future policy benefits.


	June 30, 2024				June 30, 2023
	Life Insurance		Home Service Insurance		Life Insurance		Home Service Insurance
Permanent:
Interest rate at original discount rate	4.88	%	4.96	%	4.91	%	4.98	%
Interest rate at current discount rate	5.18	%	5.37	%	5.02	%	5.09	%
Permanent Limited Pay:
Interest rate at original discount rate	4.28	%	5.03	%	4.30	%	5.04	%
Interest rate at current discount rate	5.18	%	5.37	%	4.99	%	5.09	%

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following table presents the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited and the respective guaranteed minimums.


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2024 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	786	—	877	34,729	36,392
1.50% - 2.99%	15,451		175	37	19,688	35,351
3.00% - 4.49%	100,357		200	13,728	—	114,285
Greater or equal to 4.50%	31,367		—	—	—	31,367
Total	$	147,961	375	14,642	54,417	217,395


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2023 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	749	—	1,131	37,814	39,694
1.50% - 2.99%	28,207		616	62	—	28,885
3.00% - 4.49%	103,006		10	—	—	103,016
Greater or equal to 4.50%	31,560		—	—	—	31,560
Total	$	163,522	626	1,193	37,814	203,155

Policyholder Account Balance

The following tables summarize balances of and changes in policyholders' account balances.


June 30, 2024 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	44,569		87,134		44,960		31,039
Issuances	12,324			1,347		401		2,336
Premiums received	59			1,823		2,736		585

Interest credited	988			1,343		917		890

Less:
Surrenders and withdrawals	—			4,855		2,370		4,223
Benefit payments	4,608			—		—		—
Balance, end of period	$	53,332		86,792		46,644		30,627
Weighted-average crediting rates	3.98		%	3.61	%	3.44	%	2.96	%

Cash surrender value	$	53,332		86,792		46,644		30,627


June 30, 2023 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	32,995		86,807		41,663		34,603
Issuances	10,989			1,515		298		2,043
Premiums received	49			2,147		2,816		515

Interest credited	724			1,335		670		998

Less:
Surrenders and withdrawals	—			5,246		2,063		4,339
Benefit payments	5,364			—		—		—
Balance, end of period	$	39,393		86,558		43,384		33,820
Weighted-average crediting rates	4.03		%	3.57	%	3.05	%	2.97	%

Cash surrender value	$	39,393		86,558		43,384		33,820

The following table reconciles policyholders' account balances shown above to the policyholders' account balances liability in the consolidated balance sheets.


As of June 30, (In thousands)	2024		2023
Annuities:
Supplemental contracts without life contingencies	$	53,332	39,393
Fixed annuity	86,792		86,558
Unearned revenue reserve	1,479		1,534

Total annuities	$	141,603	127,485







Premiums Paid in Advance:
Premiums paid in advance	$	30,627	33,820
Other	2,110		2,612
Total premiums paid in advance	$	32,737	36,432