Deferred Policy Acquisition Costs and Cost of Insurance Acquired

6 Months Ended

Jun. 30, 2024

Insurance [Abstract]

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, 2024 and 2023 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, 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

Six Months Ended June 30, 2023 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	100,926	11,542	1,016	113,484
Capitalizations	7,212		1,436	169	8,817
Amortization expense	(5,909)		(382)	(38)	(6,329)
Balance, end of period	102,229		12,596	1,147	115,972
Home Service Insurance:
Balance, beginning of year	38,793		9,729	921	49,443
Capitalizations	3,340		629	116	4,085
Amortization expense	(1,015)		(196)	52	(1,159)
Balance, end of period	41,118		10,162	1,089	52,369
Consolidated:
Balance, beginning of year	139,719		21,271	1,937	162,927
Capitalizations	10,552		2,065	285	12,902
Amortization expense	(6,924)		(578)	14	(7,488)
Balance, end of period	$	143,347	22,758	2,236	168,341

DAC capitalization increased for the six months ended June 30, 2024, compared to the same prior year period mainly from increased commissions from higher first year sales in our Life Insurance segment.

COIA

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

Six Months Ended June 30, 2023 (In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	267	750	444	1,461
Amortization expense	(10)		(30)	(18)	(58)
Balance, end of period	257		720	426	1,403
Home Service Insurance:
Balance, beginning of year	7,583		176	1,427	9,186
Amortization expense	(197)		(4)	(55)	(256)
Balance, end of period	7,386		172	1,372	8,930
Consolidated:
Balance, beginning of year	7,850		926	1,871	10,647
Amortization expense	(207)		(34)	(73)	(314)
Balance, end of period	$	7,643	892	1,798	10,333