Policyholders' Liabilities (Tables)

12 Months Ended

Dec. 31, 2023

Liability for Future Policy Benefit, Activity

LIABILITY FOR FUTURE POLICY BENEFITS

The following tables summarize balances of and changes in the liability for future policy benefits for our reporting cohorts: 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.


December 31, 2023 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	235,228	10,209	245,437		93,508	13,255	106,763
Beginning balance at original discount rate	247,601		10,682	258,283		100,225	14,394	114,619
Effect of changes in cash flow assumptions	(210)		38	(172)		(343)	85	(258)
Effects of actual variances from expected experience	4,184		1,536	5,720		(8,287)	(6,402)	(14,689)
Adjusted beginning of year balance	251,575		12,256	263,831		91,595	8,077	99,672
Issuances	34,285		3,607	37,892		17,668	3,951	21,619
Interest accrual	9,291		355	9,646		4,045	468	4,513
Net premiums collected	(43,307)		(2,955)	(46,262)		(11,901)	2,832	(9,069)
Derecognition and other	582		270	852		638	184	822
Ending balance at original discount rate	252,426		13,533	265,959		102,045	15,512	117,557
Effect of changes in discount rates	(7,509)		(273)	(7,782)		(3,214)	(586)	(3,800)
Balance, end of year	$	244,917	13,260	258,177		98,831	14,926	113,757

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	947,415	195,612	1,143,027		200,351	116,356	316,707
Beginning balance at original discount rate	996,169		208,051	1,204,220		214,188	121,908	336,096
Effect of changes in cash flow assumptions	(389)		(702)	(1,091)		(257)	331	74
Effects of actual variances from expected experience	7,370		5,330	12,700		(8,126)	(2,103)	(10,229)
Adjusted beginning of year balance	1,003,150		212,679	1,215,829		205,805	120,136	325,941
Issuances	34,922		3,792	38,714		17,664	3,973	21,637
Interest accrual	43,275		8,355	51,630		9,339	5,667	15,006
Benefit payments	(85,257)		(22,129)	(107,386)		(15,891)	(6,002)	(21,893)
Derecognition and other	(128)		58	(70)		607	167	774
Ending balance at original discount rate	995,962		202,755	1,198,717		217,524	123,941	341,465
Effect of changes in discount rates	(22,612)		(7,633)	(30,245)		(5,578)	(1,157)	(6,735)
Balance, end of year	$	973,350	195,122	1,168,472		211,946	122,784	334,730

Net liability for future policy benefits	$	728,433	181,862	910,295		113,115	107,858	220,973


December 31, 2022 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	269,528	4,939	274,467		104,556	10,196	114,752
Beginning balance at original discount rate	246,386		5,093	251,479		90,012	9,532	99,544
Effect of changes in cash flow assumptions	(3,662)		237	(3,425)		4,253	1,214	5,467
Effects of actual variances from expected experience	3,466		1,534	5,000		(3,744)	(8,407)	(12,151)
Adjusted beginning of year balance	246,190		6,864	253,054		90,521	2,339	92,860
Issuances	35,826		4,086	39,912		19,030	5,288	24,318
Interest accrual	8,382		82	8,464		3,454	244	3,698
Net premiums collected	(41,560)		(258)	(41,818)		(11,202)	6,752	(4,450)
Derecognition and other	(1,237)		(92)	(1,329)		(1,578)	(229)	(1,807)
Ending balance at original discount rate	247,601		10,682	258,283		100,225	14,394	114,619
Effect of changes in discount rates	(12,373)		(473)	(12,846)		(6,717)	(1,139)	(7,856)
Balance, end of year	$	235,228	10,209	245,437		93,508	13,255	106,763

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	1,168,282	240,679	1,408,961		266,206	161,715	427,921
Beginning balance at original discount rate	990,921		207,105	1,198,026		205,340	117,425	322,765
Effect of changes in cash flow assumptions	(3,916)		374	(3,542)		4,822	1,765	6,587
Effects of actual variances from expected experience	4,528		4,910	9,438		(3,278)	(992)	(4,270)
Adjusted beginning of year balance	991,533		212,389	1,203,922		206,884	118,198	325,082
Issuances	36,604		4,187	40,791		19,054	5,286	24,340
Interest accrual	42,547		8,474	51,021		8,754	5,452	14,206
Benefit payments	(72,383)		(16,765)	(89,148)		(18,870)	(6,770)	(25,640)
Derecognition and other	(2,132)		(234)	(2,366)		(1,634)	(258)	(1,892)
Ending balance at original discount rate	996,169		208,051	1,204,220		214,188	121,908	336,096
Effect of changes in discount rates	(48,754)		(12,439)	(61,193)		(13,837)	(5,552)	(19,389)
Balance, end of year	$	947,415	195,612	1,143,027		200,351	116,356	316,707

Net liability for future policy benefits	$	712,187	185,403	897,590		106,843	103,101	209,944
Plus: Flooring impact	1		—	1		—	—	—

Net liability for future policy benefits, after flooring impact	$	712,188	185,403	897,591		106,843	103,101	209,944

Net premiums collected is defined as the transactional gross premiums collected in the current period times the net premium ratio. Issuances are calculated as the present value, using the locked-in discount rate, of the expected net premiums or the expected future policy benefits related to new policies issued during the years ended December 31, 2023 and 2022. Interest accrual is the interest earned on the beginning present value of either the expected net premiums or the expected future policy benefits using the locked-in discount rate. Benefit payments are the transactional benefits (death, lapse, surrenders and maturities) paid in the current period. Derecognition refers to a subset of the issuances or the present value of future premiums released on new issues that lapsed during the years ended December 31, 2023 and 2022 as well as other reconciling items. The effects of actual variances from expected experience lines are primarily impacted by the actual policy cash flows during the period

compared to that which was expected in the reserve assumptions. If the net of the two lines is a positive number, the implication is an unfavorable result with policy cash flows less favorable than assumed while a negative number implies a favorable result compared to assumptions. Our policy experience will vary from actual experience in any one period, either favorably or unfavorably.

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets.


	December 31, 2023				December 31, 2022
(In thousands)	Life Insurance		Home Service Insurance	Consolidated	Life Insurance	Home Service Insurance	Consolidated
Life Insurance:
Permanent	$	728,433	113,115	841,548	712,188	106,843	819,031
Permanent limited pay	181,862		107,858	289,720	185,403	103,101	288,504
Deferred profit liability	28,933		26,804	55,737	25,655	24,459	50,114
Other	28,319		13,929	42,248	27,370	13,628	40,998
Total life insurance	967,547		261,706	1,229,253	950,616	248,031	1,198,647
Accident & Health:

Other	588		301	889	533	234	767

Total future policy benefit reserves	$	968,135	262,007	1,230,142	951,149	248,265	1,199,414

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.


	December 31, 2023			December 31, 2022
(In thousands)	Life Insurance		Home Service Insurance	Life Insurance	Home Service Insurance
Undiscounted:
Permanent:
Expected future gross premiums	$	621,935	455,552	612,531	461,298
Expected future benefit payments	1,495,206		484,740	1,479,562	473,039

Permanent Limited Pay:
Expected future gross premiums	47,161		77,266	47,447	74,278
Expected future benefit payments	326,821		320,810	323,559	316,225





Discounted:
Permanent:
Expected future gross premiums	$	481,963	275,629	472,754	271,440
Expected future benefit payments	973,350		211,946	947,415	200,351

Permanent Limited Pay:
Expected future gross premiums	42,138		53,075	41,853	52,030
Expected future benefit payments	195,122		122,784	195,612	116,356

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statements of operations and comprehensive income (loss):


	Years Ended December 31,
		2023			2022		2021
(In thousands)			Gross Premiums		Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense
Life Insurance Segment:
Life Insurance:
Permanent			$	93,917	33,984	94,905	34,165	96,766	34,067
Permanent Limited Pay			16,396		8,923	15,023	9,214	13,678	9,331
Other			12,813		—	16,047	—	16,856	—
Less:
Reinsurance			1,702		—	1,819	—	1,742	—
Total, net of reinsurance			121,424		42,907	124,156	43,379	125,558	43,398
Accident & Health:

Other			725		—	502	—	505	—
Less:
Reinsurance			4		—	5	—	5	—
Total, net of reinsurance			721		—	497	—	500	—
Total			$	122,145	42,907	124,653	43,379	126,058	43,398

Home Service Insurance Segment:
Life Insurance:
Permanent			$	33,263	5,294	33,312	5,300	33,706	5,447
Permanent Limited Pay			8,576		6,388	8,396	6,255	8,324	6,187
Other			1,371		—	1,749	—	2,236	—
Less:
Reinsurance			25		—	27	—	23	—
Total, net of reinsurance			43,185		11,682	43,430	11,555	44,243	11,634
Accident & Health:

Other			916		—	781	—	750	—



Total			$	44,101	11,682	44,211	11,555	44,993	11,634

The following table provides the weighted-average durations of the liability for future policy benefits.


	December 31, 2023		December 31, 2022
(In years)	Life Insurance	Home Service Insurance	Life Insurance	Home Service Insurance
Permanent:
Duration at original discount rate	8.5	16.4	8.0	15.4
Duration at current discount rate	8.5	16.4	8.5	16.2
Permanent Limited Pay:
Duration at original discount rate	8.2	14.8	7.6	14.3
Duration at current discount rate	8.1	15.3	7.5	15.7

The following table provides the weighted-average interest rates for the liability for future policy benefits.


	December 31, 2023				December 31, 2022
	Life Insurance		Home Service Insurance		Life Insurance		Home Service Insurance
Permanent:
Interest rate at original discount rate	4.89	%	4.97	%	4.93	%	5.00	%
Interest rate at current discount rate	4.79	%	4.96	%	5.10	%	5.22	%
Permanent Limited Pay:
Interest rate at original discount rate	4.29	%	5.04	%	4.30	%	5.05	%
Interest rate at current discount rate	4.77	%	4.95	%	5.07	%	5.21	%

Policyholder Account Balance, Guaranteed Minimum Crediting Rate

The following table presents the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited and the respective guaranteed minimums.


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
December 31, 2023 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	784	—	1,146	34,886	36,816
1.50% - 2.99%	33,073		671	49	—	33,793
3.00% - 4.49%	105,684		9	—	—	105,693
Greater or equal to 4.50%	31,400		—	—	—	31,400
Total	$	170,941	680	1,195	34,886	207,702


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
December 31, 2022 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	736	—	1,089	38,671	40,496
1.50% - 2.99%	24,155		631	51	—	24,837
3.00% - 4.49%	98,902		9	—	—	98,911
Greater or equal to 4.50%	31,825		—	—	—	31,825
Total	$	155,618	640	1,140	38,671	196,069

Policyholder Account Balance

The following tables summarize balances of and changes in policyholders' account balances.


December 31, 2023 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	32,995		86,807		41,663		34,603
Issuances	22,387			2,741		660		3,693
Premiums received	123			4,387		5,860		793

Interest credited	1,483			2,653		1,364		1,627
Other	1			—		—		—
Less:
Surrenders and withdrawals	—			9,454		4,587		9,677
Benefit payments	12,420			—		—		—
Balance, end of year	$	44,569		87,134		44,960		31,039
Weighted-average crediting rates	4.00		%	3.56	%	3.04	%	2.95	%

Cash surrender value	$	44,569		87,134		44,960		31,039


December 31, 2022 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	23,950		83,917		37,760		38,875
Issuances	12,071			3,044		683		2,820
Premiums received	176			4,940		5,538		779

Interest credited	1,067			2,631		1,216		964
Other	2			—		—		—
Less:
Surrenders and withdrawals	—			7,725		3,534		8,835
Benefit payments	4,271			—		—		—
Balance, end of year	$	32,995		86,807		41,663		34,603
Weighted-average crediting rates	4.08		%	3.59	%	3.07	%	3.04	%

Cash surrender value	$	32,995		86,807		41,663		34,603

The following table reconciles policyholders' account balances shown above to the policyholders' account balances liability in the consolidated balance sheets.


As of December 31, (In thousands)	2023		2022
Annuities:
Supplemental contracts without life contingencies	$	44,569	32,995
Fixed annuity	87,134		86,807
Unearned revenue reserve	1,513		1,619
Other	—		1
Total annuities	$	133,216	121,422







Premiums Paid in Advance:
Premiums paid in advance	$	31,039	34,603
Other	1,407		1,781
Total premiums paid in advance	$	32,446	36,384