Investment in Life Insurance Policies (Tables)

6 Months Ended

Jun. 30, 2020

Investments, All Other Investments [Abstract]

Our portfolio of life insurance policies, owned by our subsidiaries as of June 30, 2020, is summarized below:

Life Insurance Portfolio Summary


Total life insurance portfolio face value of policy benefits (in thousands)	$	1,960,826
Average face value per policy (in thousands)	$	1,779
Average face value per insured life (in thousands)	$	1,915
Weighted average age of insured (years)		82.7
Weighted average life expectancy estimate (years)		6.9
Total number of policies		1,102
Number of unique lives		1,024
Demographics		74% Male; 26% Female
Number of smokers		45
Largest policy as % of total portfolio face value		0.7	%
Average policy as % of total portfolio face value		0.1	%
Average annual premium as % of face value		3.6	%

Summary of policies organized by estimated life expectancy rates

A summary of our policies organized according to their estimated life expectancy dates, grouped by year, as of the reporting date, is as follows (dollars in thousands):


	As of June 30, 2020								As of December 31, 2019
Years Ending December 31,	Number of Policies	Estimated Fair Value		Face Value		Number of Policies	Estimated Fair Value		Face Value
Six months ending December 31, 2020	4	$	3,810	$	3,875	8	$	5,869	$	6,342
2021	30	37,965		45,090		55	62,061		79,879
2022	88	92,509		133,994		90	89,074		138,723
2023	106	102,952		177,842		128	123,352		222,369
2024	120	125,323		234,937		109	103,111		217,053
2025	114	82,722		189,756		113	74,223		171,961
Thereafter	640	349,425		1,175,332		648	338,349		1,184,646
Totals	1,102	$	794,706	$	1,960,826	1,151	$	796,039	$	2,020,973

Schedule of reconciliation of gain (loss) on life insurance policies

A reconciliation of gain (loss) on life insurance policies is as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Change in estimated probabilistic cash flows⁽¹⁾	$	15,349	$	17,122	$	33,200	$	34,253
Unrealized gain on acquisitions⁽²⁾	—		1,844		—		6,303
Premiums and other annual fees	(17,626)		(16,004)		(34,825)		(31,836)

Face value of matured policies	39,889		22,998		65,391		53,457
Fair value of matured policies	(22,824)		(6,030)		(34,533)		(20,751)
Gain on life insurance policies, net	$	14,788	$	19,930	$	29,233	$	41,426

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(1)Change in fair value of expected future cash flows relating to our investment in life insurance policies that are not specifically attributable to changes in life expectancy, discount rate changes or policy maturity events.

(2)Gain resulting from fair value in excess of the purchase price for life insurance policies acquired during the reporting period. There were no policy acquisitions during the three or six months ended June 30, 2020.

Schedule of estimate that premium payments and servicing fees required to maintain our current portfolio of life insurance policies

Estimated premium payments and servicing fees required to maintain our current portfolio of life insurance policies in force for the next five years, assuming no mortalities, are as follows (in thousands):


Years Ending December 31,	Premiums		Servicing		Total
Six months ending December 31, 2020	$	31,589	$	823	$	32,412
2021	82,102		1,647		83,749
2022	94,621		1,647		96,268
2023	106,489		1,647		108,136
2024	115,715		1,647		117,362
2025	128,495		1,647		130,142
	$	559,011	$	9,058	$	568,069