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Reinsurance | 12 Months Ended
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Dec. 31, 2025
Insurance [Abstract] |
Reinsurance | Note 16. Reinsurance The Company enters into reinsurance agreements primarily as a purchaser of reinsurance for its LTC line of business and also as a provider of reinsurance for the LTC and MYGA lines of business. The Company participates in reinsurance activities in order to limit losses, minimize exposure to significant risks and provide additional capacity for future growth. Under the terms of the reinsurance agreements, the reinsurer agrees to reimburse the Company for the ceded amount in the event a claim is paid. Cessions under reinsurance agreements do not discharge the Company’s obligation as the primary insurer. In the event that reinsurers do not meet their obligations under the terms of the reinsurance agreements, Reinsurance recoverable balances could become uncollectible. Accounting for reinsurance requires extensive use of assumptions and estimates, particularly related to the future performance of the underlying business and the potential impact of counterparty credit risks. Reinsurance recoverable The Company reinsures its business through two reinsurers. The Company monitors ratings and evaluates the financial strength of its reinsurers by analyzing their financial statements. In addition, the reinsurance recoverable balance due from each reinsurer is evaluated as part of the overall monitoring process. Recoverability of reinsurance recoverable balances is evaluated based on these analyses. The Company uses collateral for its reinsurance recoverable with funds withheld accounts. These reinsurance recoverable balances are stated net of allowance for expected credit loss of $1.1 million and $0.8 million at December 31, 2025 and December 31, 2024, respectively. The Company had $456.7 million and $450.2 million of net ceded reinsurance recoverable at December 31, 2025 and December 31, 2024, respectively. The Company had $41.3 million and $31.1 million of unsecured Reinsurance recoverable balances at December 31, 2025 and December 31, 2024, respectively. The amounts in the Consolidated Statements of Financial Position include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows at:
Long-term care |  | December 31, 2025 |  | December 31, 2024
Reinsurance recoverable |  |  |  |
Medico Insurance Company |  | $ | 4,466 |  |  | $ | 4,376 |
Front Street Re |  | 273,981 |  |  | 266,629 |
Vista Life and Casualty Reinsurance Co |  | 178,273 |  |  | 179,220 |
Vista Modco Funds Withheld |  | (183,802) |  |  | (190,771) |
Total reinsurance recoverable |  | $ | 272,918 |  |  | $ | 259,454 |
Future policy benefits |  |  |  |
Direct |  | $ | 673,636 |  |  | $ | 666,617 |
Reinsurance assumed |  | 108,245 |  |  | 102,916 |
Total future policy benefits |  | $ | 781,881 |  |  | $ | 769,533 |
The amounts in the Consolidated Statements of Comprehensive Income (Loss) include the impact of reinsurance. Information regarding the significant effects of reinsurance was as follows:
Long-term care |  |  |  |
Years Ended December 31, |  | 2025 |  | 2024
Net premiums |  |  |  |
Direct premiums |  | $ | 40,993 |  |  | $ | 43,801 |
Reinsurance assumed |  | 3,978 |  |  | 4,179 |
Reinsurance ceded |  | (62,171) |  |  | (63,459) |
Total net premiums |  | $ | (17,200) |  |  | $ | (15,479) |
Net policy benefit and claims (remeasurement gain on policy liabilities of $9,872 and $16,237 for the year ended December 31, 2025 and 2024, respectively) |  |  |  |
Direct |  | $ | 70,489 |  |  | $ | 76,994 |
Reinsurance assumed |  | 11,711 |  |  | 6,277 |
Reinsurance ceded, net of provision for credit losses ¹ |  | (84,422) |  |  | (93,362) |
Total net policyholder benefits and claims |  | $ | (2,222) |  |  | $ | (10,091) |
_______________ (1)The provision for credit losses for reinsurance recoverables for the year ended December 31, 2025 and December 31, 2024 is $0.3 million, and $(0.4) million, respectively.

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-15 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-12 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-4 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479032/944-605-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-3 + Details
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