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Future policy benefits and related reinsurance recoverable
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Future policy benefits and related reinsurance recoverable
Note 14. Future policy benefits and related reinsurance recoverable
Future policy benefits comprise substantially all obligations to insureds in the Company’s insurance operations. A summary of future policy benefits and reinsurance recoverable are presented below.
As ofMarch 31, 2026 December 31, 2025
Reinsurance recoverable
  Long term care reinsurance$442,289 $452,254 
  Other4,448 4,466 
  Modco investments with Nichol International Reinsurance (S.A.C), Ltd¹
(176,942)(183,802)
Total reinsurance recoverable$269,795 $272,918 
Future policy benefits
  Long term care insurance$758,460 $777,412 
  Other4,450 4,469 
Total future policy benefits$762,910 $781,881 
Funds held under reinsurance contracts
Funds held arrangement with Front Street Re¹
$230,987 $237,143 
_______________
(1)The Company has a coinsurance or Modco with funds withheld arrangement with its two reinsurers. The Modco agreement with Nichol International Reinsurance (S.A.C), Ltd. (formerly known as Vista Life and Casualty Reinsurance Company) dictates that the assets held as collateral
are held with the legal right of offset to the related insurance contract liabilities. Therefore, the collateral held for this agreement is netted against the reserves under this contract. The agreement with Front Street Re does not have the legal right of offset therefore the reserves are not presented net of the collateral held, instead they are in the line item “Funds held under reinsurance contracts” in the Condensed Consolidated Statements of Financial Position.
The following tables summarize balances of and changes in future policy benefits reserves:
Three months ended March 31,
Long-term care20262025
Present value of expected net premiums
Beginning Balance$273,395 $306,206 
Beginning balance at locked-in discount rate297,709 343,705 
Effect of actual variances from expected experience(10)(349)
Adjusted balance297,699 343,356 
Interest accrual1,850 1,874 
Net premiums collected(11,249)(11,790)
Ending balance at locked-in discount rate288,300 333,440 
Effect of changes in discount rate assumptions(25,880)(32,689)
Ending Balance$262,420 $300,751 
Present value of Expected Future Policy Benefits
Beginning Balance$1,050,807 $1,071,361 
Beginning balance at locked-in discount rate1,239,275 1,306,356 
Change in effect in cashflow assumptions(2,661)— 
Effect of actual variances from expected experience1,663 4,610 
Adjusted balance1,238,277 1,310,966 
Interest accrual7,757 7,203 
Benefit payments(27,513)(27,843)
Ending balance at locked-in discount rate1,218,521 1,290,326 
Effect of changes in discount rate assumptions(197,641)(217,340)
Ending Balance$1,020,880 $1,072,986 
Net future policy benefit reserves ¹
$758,460 $772,235 
Less: Reinsurance recoverables, net of allowance for credit losses ²
(442,289)(450,641)
Net future policy benefit reserves, after reinsurance recoverables$316,171  $321,594 
_______________
(1)Net future policy benefit reserves excludes $4.5 million and $4.4 million as of March 31, 2026 and March 31, 2025, respectively, of Medico assumed reserves which are 100% ceded.
(2)Reinsurance recoverables, net of allowance for credit losses excludes $4.4 million of reinsurance recoverable as of March 31, 2026 and March 31, 2025, respectively.
In the first quarter of 2026, claim‑handling costs for one of the assumed LTC block were separated from maintenance costs; resulting in a $2.6 million decrease in the liability for future policy benefits. The effect of actual variances from expected experience observed a $1.7 million increase in the liability for future policy benefits, mainly driven by higher claims within the same LTC block.

In the first quarter of 2025, the underlying cash flow assumptions remained unchanged. The effect of actual variances from expected experience observed a $5.0 million increase in the liability for future policy benefits, mainly driven by higher claims within one of the assumed LTC block.
The following tables provides the amount of undiscounted and discounted expected future gross premiums and expected future benefits and expenses for the LTC line of business:
As ofMarch 31, 2026March 31, 2025
Long-term careUndiscounted
Discounted¹
UndiscountedDiscounted¹
  Expected future gross premiums$350,155 $262,420 $413,962 $300,751 
  Benefit payments$1,718,620 $1,020,880 $1,844,288 $1,072,986 
_______________
(1)Discount was determined using the current discount rate as of March 31, 2026 and March 31, 2025.
The following table provides the weighted-average durations of and weighted-average interest rates for the liability for future policy benefits:
As of March 31, 2026March 31, 2025
Weighted-average duration of liability (years) at current rate10.1110.49
Weighted-average duration of liability (years) at original rate12.0812.56
Weighted-average interest rate at current rate5.16 %5.10 %
Weighted-average interest rate at original rate3.11 %3.03 %
Note 15. Interest sensitive contract liabilities
The following table shows the outstanding Interest sensitive contract liabilities which represents the policyholder balances for MYGA product line:
Three months ended March 31,
  20262025
Balance, beginning of year$363,981 $334,876 
Deposits— — 
Product charges(118)(860)
Surrenders and withdrawals(5,701)(8,319)
Benefit payments(1,989)(2,080)
Interest credited4,289 3,818 
Balance, March 31, 2026$360,462 $327,435 
Weighted-average annual crediting rate5.00%5.00%
At period end:
Cash surrender value$336,455 $297,851 
Net amount at risk:
In the event of death ¹
$360,462 $327,435 
_______________
(1)For benefits that are payable in the event of death, the net amount at risk is defined as the current death benefit which is equal to the current account balances at the Condensed Consolidated Statements of Financial Position date. It represents the amount of the claim that the Company would incur if death claims were filed on all contracts at the Condensed Consolidated Statements of Financial Position date.
MYGA policyholder account balances totaled $360.5 million and $327.4 million, as of March 31, 2026, and March 31, 2025, respectively. The decrease in policyholder account balances are primarily attributed to surrenders, withdrawals, benefits and product charges of $7.8 million and $11.3 million for the three months ended March 31, 2026 and March 31, 2025, respectively. These decreases were partially offset by interest credited of $4.3 million and $3.8 million for the three months ended March 31, 2026 and March 31, 2025, respectively. Interest on policyholder account balances is generally credited at minimum guaranteed rates, primarily between 2% and 7% at both March 31, 2026 and March 31, 2025.