Deferred Policy Acquisition Costs and Cost of Insurance Acquired

6 Months Ended

Jun. 30, 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 six months ended June 30, 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.



Six Months Ended June 30, 2025 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	124,725	16,388	547	141,660
Capitalizations	14,196		1,534	144	15,874
Amortization expense	(7,133)		(561)	(105)	(7,799)

Balance, end of period	131,788		17,361	586	149,735

Home Service Insurance:
Balance, beginning of year	45,656		11,151	1,168	57,975
Capitalizations	2,142		442	111	2,695
Amortization expense	(1,143)		(213)	(105)	(1,461)

Balance, end of period	46,655		11,380	1,174	59,209

Consolidated:
Balance, beginning of year	170,381		27,539	1,715	199,635
Capitalizations	16,338		1,976	255	18,569
Amortization expense	(8,276)		(774)	(210)	(9,260)

Balance, end of period	$	178,443	28,741	1,760	208,944



Six Months Ended June 30, 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	13,658		1,611	138	15,407
Amortization expense	(6,304)		(470)	(170)	(6,944)

Balance, end of period	112,906		15,216	1,181	129,303

Home Service Insurance:
Balance, beginning of year	43,280		10,564	1,084	54,928
Capitalizations	2,727		621	119	3,467
Amortization expense	(1,117)		(213)	(37)	(1,367)

Balance, end of period	44,890		10,972	1,166	57,028

Consolidated:
Balance, beginning of year	148,832		24,639	2,297	175,768
Capitalizations	16,385		2,232	257	18,874
Amortization expense	(7,421)		(683)	(207)	(8,311)

Balance, end of period	$	157,796	26,188	2,347	186,331

DAC capitalization decreased for the six months ended June 30, 2025, compared to the same prior year period mainly from increased ceding commissions and expenses due to a full six months of reinsurance with RGA in 2025 offset by higher first year sales.

COIA



Six Months Ended June 30, 2025 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	599	648	—	1,247
Amortization expense	(21)		(21)	—	(42)

Balance, end of period	578		627	—	1,205

Home Service Insurance:
Balance, beginning of year	6,825		161	1,213	8,199
Amortization expense	(178)		(4)	47	(135)

Balance, end of period	6,647		157	1,260	8,064

Consolidated:
Balance, beginning of year	7,424		809	1,213	9,446
Amortization expense	(199)		(25)	47	(177)

Balance, end of period	$	7,225	784	1,260	9,269


Six Months Ended June 30, 2024 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	249	695	406	1,350
Amortization expense	(8)		(25)	(22)	(55)

Balance, end of period	241		670	384	1,295

Home Service Insurance:
Balance, beginning of year	7,194		168	1,331	8,693
Amortization expense	(187)		(4)	(78)	(269)

Balance, end of period	7,007		164	1,253	8,424

Consolidated:
Balance, beginning of year	7,443		863	1,737	10,043
Amortization expense	(195)		(29)	(100)	(324)

Balance, end of period	$	7,248	834	1,637	9,719