Deferred Policy Acquisition Costs and Cost of Insurance Acquired

3 Months Ended

Mar. 31, 2025

Deferred Policy Acquisition Costs and Cost of Insurance Acquired

DEFERRED POLICY ACQUISITION COSTS AND COST OF INSURANCE ACQUIRED

DAC

The following tables roll forward the DAC and COIA balances for the three months ended March 31, 2025 and 2024 by reporting cohort. Our reporting cohorts are 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.



Three Months Ended March 31, 2025 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	124,725	16,388	547	141,660
Capitalizations	6,715		920	84	7,719
Amortization expense	(3,594)		(276)	(23)	(3,893)

Balance, end of period	127,846		17,032	608	145,486

Home Service Insurance:
Balance, beginning of year	45,656		11,151	1,168	57,975
Capitalizations	895		173	62	1,130
Amortization expense	(571)		(107)	(76)	(754)

Balance, end of period	45,980		11,217	1,154	58,351

Consolidated:
Balance, beginning of year	170,381		27,539	1,715	199,635
Capitalizations	7,610		1,093	146	8,849
Amortization expense	(4,165)		(383)	(99)	(4,647)

Balance, end of period	$	173,826	28,249	1,762	203,837



Three Months Ended March 31, 2024 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	105,552	14,075	1,213	120,840
Capitalizations	5,976		766	74	6,816
Amortization expense	(3,076)		(227)	(55)	(3,358)

Balance, end of period	108,452		14,614	1,232	124,298

Home Service Insurance:
Balance, beginning of year	43,280		10,564	1,084	54,928
Capitalizations	1,174		271	70	1,515
Amortization expense	(554)		(105)	(21)	(680)

Balance, end of period	43,900		10,730	1,133	55,763

Consolidated:
Balance, beginning of year	148,832		24,639	2,297	175,768
Capitalizations	7,150		1,037	144	8,331
Amortization expense	(3,630)		(332)	(76)	(4,038)

Balance, end of period	$	152,352	25,344	2,365	180,061

DAC capitalization increased for the three months ended March 31, 2025, compared to the same prior year period mainly from increased commissions from higher first year sales in our Life Insurance segment.

COIA



Three Months Ended March 31, 2025 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	599	648	—	1,247
Amortization expense	(10)		(11)	—	(21)

Balance, end of period	589		637	—	1,226

Home Service Insurance:
Balance, beginning of year	6,825		161	1,213	8,199
Amortization expense	(89)		(2)	14	(77)

Balance, end of period	6,736		159	1,227	8,122

Consolidated:
Balance, beginning of year	7,424		809	1,213	9,446
Amortization expense	(99)		(13)	14	(98)

Balance, end of period	$	7,325	796	1,227	9,348



Three Months Ended March 31, 2024 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	249	695	406	1,350
Amortization expense	(4)		(13)	(9)	(26)

Balance, end of period	245		682	397	1,324

Home Service Insurance:
Balance, beginning of year	7,194		168	1,331	8,693
Amortization expense	(94)		(2)	(50)	(146)

Balance, end of period	7,100		166	1,281	8,547

Consolidated:
Balance, beginning of year	7,443		863	1,737	10,043
Amortization expense	(98)		(15)	(59)	(172)

Balance, end of period	$	7,345	848	1,678	9,871