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Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Note 4—Investments

Portfolio Composition: Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at December 31, 2023 and 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector."


	At December 31, 2023
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	398,450	$	—	$	7	$	(32,306)	$	366,151	2
States, municipalities, and political subdivisions	3,296,305		—		47,346		(403,329)		2,940,322		16
Foreign governments	44,453		—		1		(10,348)		34,106		—
Corporates, by sector:
Financial	5,028,151		—		112,368		(388,340)		4,752,179		27
Utilities	2,017,967		—		73,925		(94,130)		1,997,762		11
Energy	1,446,480		—		58,637		(62,324)		1,442,793		8
Other corporate sectors	6,569,646		(7,115)		154,441		(504,523)		6,212,449		35
Total corporates	15,062,244		(7,115)		399,371		(1,049,317)		14,405,183		81
Collateralized debt obligations	37,110		—		5,036		—		42,146		—
Other asset-backed securities	86,352		—		3		(4,057)		82,298		1
Total fixed maturities	$	18,924,914	$	(7,115)	$	451,764	$	(1,499,357)	$	17,870,206	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	At December 31, 2022
	Amortized Cost		Allowance for Credit Losses		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value(1)		% of Total Fixed Maturities(2)
Fixed maturities available for sale:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	394,439	$	—	$	27	$	(38,968)	$	355,498	2
States, municipalities, and political subdivisions	2,791,030		—		24,328		(505,447)		2,309,911		14
Foreign governments	55,164		—		6		(12,706)		42,464		—
Corporates, by sector:
Financial	4,907,794		—		63,126		(504,489)		4,466,431		27
Utilities	1,924,190		—		36,670		(125,713)		1,835,147		11
Energy	1,436,598		—		22,637		(101,923)		1,357,312		8
Other corporate sectors	6,667,043		—		78,903		(738,772)		6,007,174		37
Total corporates	14,935,625		—		201,336		(1,470,897)		13,666,064		83
Collateralized debt obligations	37,098		—		13,266		—		50,364		—
Other asset-backed securities	88,336		—		4		(9,276)		79,064		1
Total fixed maturities	$	18,301,692	$	—	$	238,967	$	(2,037,294)	$	16,503,365	100

(1)Amount reported in the balance sheet.

(2)At fair value.

The Company has exposure to banks within our fixed maturity portfolio, with an average credit rating of A- . The Company’s bank securities had a fair value of $1.3 billion (7% of the total fixed maturity portfolio) and $1.3 billion (8% of the total fixed maturity portfolio) at December 31, 2023 and December 31, 2022, respectively. Additionally, the Company has exposure to real estate investment trusts with an average rating of BBB+, which had a fair value of $425 million (2% of the total fixed maturity portfolio) and $428 million (3% of the total fixed maturity portfolio) at December 31, 2023 and December 31, 2022, respectively.

A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2023, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions.


	At December 31, 2023
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	110,352	$	109,817
Due after one year through five years	850,072		858,859
Due after five years through ten years	1,988,461		2,011,887
Due after ten years through twenty years	8,376,525		8,164,465
Due after twenty years	7,468,886		6,600,692
Mortgage-backed and asset-backed securities	123,503		124,486
	$	18,917,799	$	17,870,206

Analysis of investment operations: "Net investment income" for the three years ended December 31, 2023, is summarized as follows:


	Year Ended December 31,
	2023		2022		2021
Fixed maturities available for sale	$	944,628	$	910,284	$	892,421
Policy loans	49,011		46,586		45,318
Mortgage loans	19,541		9,719		8,831
Other long-term investments(1)	54,655		40,837		27,007
Short-term investments	6,322		2,156		24
	1,074,157		1,009,582		973,601
Less investment expense	(17,273)		(17,782)		(16,911)
Net investment income	$	1,056,884	$	991,800	$	956,690

(1)For the years ended 2023, 2022 and 2021, the investment funds, accounted for under the fair value option method, recorded $52.3 million, $40.3 million, and $26.7 million, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.

An analysis of "realized gains (losses)" is as follows:


	Year Ended December 31,
	2023		2022		2021
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	(77,301)	$	(32,552)	$	34,916
Provision for credit losses	(7,115)		387		2,959
Fair value option—change in fair value	15,102		(29,353)		22,918
Mortgage loans	(5,603)		(963)		1,788
Other investments	1,792		4,681		(135)
Realized gains (losses) from investments	(73,125)		(57,800)		62,446
Realized loss on redemption of debt	—		—		(9,314)
Other gains (losses)	7,449		(18,748)		6,187
	(65,676)		(76,548)		59,319
Applicable tax	13,792		16,075		(12,457)
Realized gains (losses), net of tax	$	(51,884)	$	(60,473)	$	46,862

(1)For the years ended 2023, 2022 and 2021, the Company recorded $50.9 million, $147.6 million, and $109.2 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $(1.9) million, $1.9 million, and $25.2 million, respectively, in realized gains (losses). During the year ended December 31, 2023, the Company sold $66 million in securities relating to holdings in Signature Bank New York and First Republic Bank, which entered receivership during the first half of the year.

An analysis of the net change in unrealized investment gains (losses) is as follows:


	Year Ended December 31,
	2023		2022		2021
Change in unrealized investment gains (losses) on:
Fixed maturities available for sale	$	750,734	$	(5,298,692)	$	(519,345)

Selected information about sales of fixed maturities available for sale is as follows:


	Year Ended December 31,
	2023		2022		2021
Fixed maturities available for sale:
Proceeds from sales(1)	$	602,556	$	390,392	$	116,656
Gross realized gains	5,554		1,296		1,848
Gross realized losses	(80,823)		(57,996)		(12,101)

(1)There were no unsettled sales in the periods ended December 31, 2023, 2022 and 2021.

Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2023 and 2022:


	Fair Value Measurement at December 31, 2023:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	366,151		$	—		$	366,151
States, municipalities, and political subdivisions	—			2,940,322			—			2,940,322
Foreign governments	—			34,106			—			34,106
Corporates, by sector:
Financial	—			4,621,160			131,019			4,752,179
Utilities	—			1,888,797			108,965			1,997,762
Energy	—			1,432,884			9,909			1,442,793
Other corporate sectors	—			6,007,609			204,840			6,212,449
Total corporates	—			13,950,450			454,733			14,405,183
Collateralized debt obligations	—			—			42,146			42,146
Other asset-backed securities	—			82,298			—			82,298
Total fixed maturities	$	—		$	17,373,327		$	496,879		$	17,870,206
Percentage of total	—		%	97		%	3		%	100		%


	Fair Value Measurement at December 31, 2022:
	Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)			Total Fair Value
Fixed maturities available for sale
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—		$	355,498		$	—		$	355,498
States, municipalities, and political subdivisions	—			2,309,911			—			2,309,911
Foreign governments	—			42,464			—			42,464
Corporates, by sector:
Financial	—			4,332,495			133,936			4,466,431
Utilities	—			1,723,832			111,315			1,835,147
Energy	—			1,346,212			11,100			1,357,312
Other corporate sectors	—			5,785,442			221,732			6,007,174
Total corporates	—			13,187,981			478,083			13,666,064
Collateralized debt obligations	—			—			50,364			50,364
Other asset-backed securities	—			79,064			—			79,064
Total fixed maturities	$	—		$	15,974,918		$	528,447		$	16,503,365
Percentage of total	—		%	97		%	3		%	100		%

The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
Balance at January 1, 2021	$	12,870	$	71,598	$	714,505	$	798,973

Included in realized gains / losses	(82)		(6,787)		3,275		(3,594)
Included in other comprehensive income	63		12,447		(20,818)		(8,308)
Acquisitions(1)	—		—		25,000		25,000
Sales	(12,851)		(13,213)		—		(26,064)
Amortization	—		4,505		9		4,514
Other(2)	—		(5,045)		(80,283)		(85,328)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2021	—		63,505		641,688		705,193

Included in realized gains / losses	—		—		—		—
Included in other comprehensive income	—		(13,771)		(91,385)		(105,156)
Acquisitions(1)	—		—		—		—
Sales	—		—		—		—
Amortization	—		4,519		7		4,526
Other(2)	—		(3,889)		(72,227)		(76,116)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2022	—		50,364		478,083		528,447

Included in realized gains / losses	—		—		—		—
Included in other comprehensive income	—		(8,230)		4,541		(3,689)
Acquisitions(1)	—		—		—		—
Sales	—		—		—		—
Amortization	—		4,569		155		4,724
Other(2)	—		(4,557)		(28,046)		(32,603)
Transfers into Level 3(3)	—		—		—		—
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2023	$	—	$	42,146	$	454,733	$	496,879

Change in unrealized gains or losses for level 3 securities during the period included in accumulated other comprehensive income for assets held at the end of the reporting period:
	Asset- backed Securities		Collateralized Debt Obligations		Corporates		Total
2021	$	63	$	12,447	$	(20,818)	$	(8,308)
2022	—		(13,771)		(91,385)		(105,156)
2023	—		(8,230)		4,541		(3,689)

(1)Acquisitions of Level 3 investments in each of the years 2021 through 2023 are comprised of private placement fixed maturities and equities.

(2)Includes capitalized interest, foreign exchange adjustments, and principal repayments.

(3)Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available.

Transfers between levels within the hierarchy occur when there are changes in the observability of the inputs and market data. Transfers into Level 3 occur when there is little unobservable market activity for the asset/liability as of the measurement date and the Company is required to rely upon internally-developed assumptions or third parties. Transfers out of Level 3 occur when quoted prices in active markets becomes available for identical assets/ liabilities or the ability to corroborate by observable market data.

The following table represents quantitative information about Level 3 fair value measurements:

Quantitative Information about Level 3 Fair Value Measurements

As of December 31, 2023

Fair Value

Valuation
Techniques

Significant Unobservable
Input

Range

Weighted-

Average(1)

Private placement fixed maturities

454,733

Determination of credit spread

Credit rating

A+ to CCC+

BBB

Collateralized debt obligations

42,146

Discounted Cash Flows

Discount rate

11.65%

496,879

(1)Unobservable inputs were weighted by the relative fair value of the instruments.

The private placement fixed maturities reported as Level 3, are managed by third-party investment managers. These securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark adjusted for a credit spread. The credit spread is developed from observable indices for similar public fixed maturities and unobservable indices for private fixed maturities for corresponding credit ratings. However, the credit ratings for the securities are considered unobservable inputs, as they are assigned by the third-party investment manager based on a quantitative and qualitative assessment of the credit underwritten. A higher (lower) credit rating would result in a higher (lower) valuation.

The collateral underlying collateralized debt obligations consists primarily of trust preferred securities issued by banks and insurance companies. Collateralized debt obligations are valued at the present value of expected future cash flows using an unobservable discount rate. Expected cash flows are determined by scheduling the projected repayment of the collateral assuming no future defaults, deferrals, or recoveries. The discount rate is risk-adjusted to take these items into account. A significant increase (decrease) in the discount rate will produce a significant decrease (increase) in fair value. Additionally, a significant increase (decrease) in the cash flow expectations would result in a significant increase (decrease) in fair value. For more information regarding valuation procedures, please refer to Note 1—Significant Accounting Policies under the caption Fair Value Measurements, Investments in Securities.

Unrealized Loss Analysis: The following table discloses information about fixed maturities available for sale in an unrealized loss position.


	Less than Twelve Months	Twelve Months or Longer	Total
Number of issues (CUSIPs) held:
As of December 31, 2023	151	1,614	1,765
As of December 31, 2022	1,819	157	1,976

Globe Life's entire fixed maturity portfolio consisted of 2,473 issues by 980 different issuers at December 31, 2023 and 2,328 issues by 979 different issuers at December 31, 2022. The increase in the number of securities in an unrealized loss position during the years ended December 31, 2023 and 2022 is due to the increase in interest rates. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of December 31, 2023 and December 31, 2022.

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2023 and December 31, 2022.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2023
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	—	$	—	$	364,006	$	(32,306)	$	364,006	$	(32,306)
States, municipalities, and political subdivisions	252,800		(3,520)		1,610,163		(399,809)		1,862,963		(403,329)
Foreign governments	—		—		32,591		(10,348)		32,591		(10,348)
Corporates, by sector:
Financial	242,099		(6,584)		2,341,424		(339,628)		2,583,523		(346,212)
Utilities	81,194		(648)		686,043		(91,959)		767,237		(92,607)
Energy	18,301		(445)		516,387		(54,398)		534,688		(54,843)
Other corporate sectors	173,272		(3,436)		3,801,440		(475,613)		3,974,712		(479,049)
Total corporates	514,866		(11,113)		7,345,294		(961,598)		7,860,160		(972,711)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		70,956		(3,648)		70,956		(3,648)
Total investment grade securities	767,666		(14,633)		9,423,010		(1,407,709)		10,190,676		(1,422,342)

Below investment grade securities:


Corporates, by sector:
Financial	25,563		(2,602)		151,190		(39,526)		176,753		(42,128)
Utilities	—		—		19,654		(1,523)		19,654		(1,523)
Energy	—		—		37,171		(7,481)		37,171		(7,481)
Other corporate sectors	10,745		(199)		108,526		(25,275)		119,271		(25,474)
Total corporates	36,308		(2,801)		316,541		(73,805)		352,849		(76,606)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		11,288		(409)		11,288		(409)
Total below investment grade securities	36,308		(2,801)		327,829		(74,214)		364,137		(77,015)
Total fixed maturities	$	803,974	$	(17,434)	$	9,750,839	$	(1,481,923)	$	10,554,813	$	(1,499,357)

Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not generally intend to sell and it is unlikely that the Company will be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2022
	Less than Twelve Months				Twelve Months or Longer				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Fixed maturities available for sale:
Investment grade securities:
U.S. Government direct, guaranteed, and government-sponsored enterprises	$	349,887	$	(38,218)	$	3,424	$	(750)	$	353,311	$	(38,968)
States, municipalities, and political subdivisions	1,767,624		(453,149)		95,124		(52,298)		1,862,748		(505,447)
Foreign governments	6,297		(201)		25,134		(12,505)		31,431		(12,706)
Corporates, by sector:
Financial	2,837,918		(426,132)		109,784		(42,173)		2,947,702		(468,305)
Utilities	1,088,219		(116,272)		21,636		(6,268)		1,109,855		(122,540)
Energy	855,853		(91,755)		—		—		855,853		(91,755)
Other corporate sectors	4,155,986		(665,831)		94,299		(42,344)		4,250,285		(708,175)
Total corporates	8,937,976		(1,299,990)		225,719		(90,785)		9,163,695		(1,390,775)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	60,157		(5,223)		7,960		(2,435)		68,117		(7,658)
Total investment grade securities	11,121,941		(1,796,781)		357,361		(158,773)		11,479,302		(1,955,554)

Below investment grade securities:


Corporates, by sector:
Financial	120,377		(18,901)		38,348		(17,283)		158,725		(36,184)
Utilities	27,722		(3,173)		—		—		27,722		(3,173)
Energy	14,480		(2,182)		20,075		(7,986)		34,555		(10,168)
Other corporate sectors	166,159		(25,962)		6,670		(4,635)		172,829		(30,597)
Total corporates	328,738		(50,218)		65,093		(29,904)		393,831		(80,122)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		10,874		(1,618)		10,874		(1,618)
Total below investment grade securities	328,738		(50,218)		75,967		(31,522)		404,705		(81,740)
Total fixed maturities	$	11,450,679	$	(1,846,999)	$	433,328	$	(190,295)	$	11,884,007	$	(2,037,294)

Gross unrealized losses decreased from $2.04 billion at December 31, 2022 to $1.50 billion at December 31, 2023, a decrease of $538 million. The decrease in the gross unrealized losses from the prior year was primarily attributable to the decrease in market interest rates.

Fixed Maturities, Allowance for Credit Losses: A summary of the activity in the allowance for credit losses is as follows. Refer to Note 1 for factors considered in the recording of the allowance for credit losses.


	Year Ended December 31,
	2023		2022
Allowance for credit losses beginning balance	$	—	$	387
Additions to allowance for which credit losses were not previously recorded	72,508		—
Additions (reductions) to allowance for fixed maturities that previously had an allowance	(65,393)		—
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period	—		(387)
Allowance for credit losses ending balance	$	7,115	$	—

As of December 31, 2023 and December 31, 2022, the Company did not have any fixed maturities in non-accrual status. During the year ended December 31, 2023, the Company sold $66 million in securities for which there was a provision for credit losses relating to holdings in Signature Bank New York and First Republic Bank, which entered receivership during the first half of the year.

Concentrations of Credit Risk: Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2023, the investment portfolio, at fair value, consisted of the following:


Investment grade fixed maturities:
Corporates	71	%
States, municipalities, and political subdivisions	15
U.S. Government direct, guaranteed, and government-sponsored enterprises	2
Other	1

Below investment grade fixed maturities:
Corporates	2



	91

Other
Policy loans, which are secured by the underlying insurance policy values	3
Other investments	6
	100	%

As of December 31, 2023, state and municipal governments represented 15% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2023, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (19%), California (9%), New York (7%), Florida (5%), and Pennsylvania (4%). Otherwise, there was no concentration within any given state greater than 4%.

Corporate fixed maturities represent 73% of Globe Life's invested assets. These investments are spread across a wide range of industries. Below are the ten largest industry concentrations held in the portfolio of corporate fixed maturities at December 31, 2023, based on fair value:


Insurance	16	%
Electric utilities	10
Banks	9
Oil and natural gas pipelines	6
Chemicals	5
Transportation	4
Telecommunications	4
Food	3
Diversified financial services	3
Real estate investment trusts	3

At December 31, 2023, 2% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $646 million, amortized cost was $530 million, and fair value was $459 million. While these investments could be subject to additional credit risk, such risk should generally be reflected in their fair value.

Securities, cash, and short-term investments held on deposit with various state and federal regulatory authorities had an amortized cost and fair value, respectively, of $1.0 billion and $983 million at December 31, 2023 and $975 million and $889 million at December 31, 2022.

Mortgage Loans (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at December 31, 2023 and 2022 are as follows:


	2023			2022
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Multi-family	$	116,299	42	$	42,232	23
Industrial	57,267		20	27,248		15
Hospitality	43,897		16	27,796		15
Mixed use	34,749		12	62,375		34
Retail	23,925		9	15,342		9
Office	6,734		2	8,101		5

Total recorded investment	282,871		101	183,094		101
Less allowance for credit losses	(3,672)		(1)	(1,789)		(1)
Carrying value, net of allowance for credit losses	$	279,199	100	$	181,305	100


	2023			2022
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
California	$	54,721	20	$	64,477	36
Florida	48,233		17	33,182		18
Texas	45,111		16	22,905		13
New Jersey	44,574		16	—		—
New York	20,284		7	19,167		11
Massachusetts	14,979		5	—		—
Other	54,969		20	43,363		23
Total recorded investment	282,871		101	183,094		101
Less allowance for credit losses	(3,672)		(1)	(1,789)		(1)
Carrying value, net of allowance for credit losses	$	279,199	100	$	181,305	100

The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ratios (LTVs) that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.


	December 31, 2023
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Gross Total
Loan-to-value ratio(2):
Less than 70%	$	27,091	$	180,761	$	58,364	$	266,216	94
70% to 80%	—		—		—		—		—
81% to 90%	8,468		—		1,153		9,621		3
Greater than 90%	7,034		—		—		7,034		3
Total	$	42,593	$	180,761	$	59,517	282,871		100
Less allowance for credit losses							(3,672)
Total, net of allowance for credit losses							$	279,199

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

(2)Loan balance divided by appraised value at origination, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming.


	December 31, 2022
	Recorded Investment
	Debt Service Coverage Ratios(1)
	<1.00x		1.00x—1.20x		>1.20x		Total		% of Gross Total
Loan-to-value ratio(2):
Less than 70%	$	24,221	$	108,156	$	12,018	$	144,395	79
70% to 80%	—		22,120		1,238		23,358		13
81% to 90%	8,307		—		—		8,307		4
Greater than 90%	7,034		—		—		7,034		4
Total	$	39,562	$	130,276	$	13,256	183,094		100
Less allowance for credit losses							(1,789)
Total, net of allowance for credit losses							$	181,305

(1)Annual net operating income divided by annual mortgage debt service (principal and interest).

As of December 31, 2023, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the period, the Company had 28 loans in the portfolio. For the year ended December 31, 2023, the allowance for credit losses increased by $1.9 million to $3.7 million. Additionally, there was one foreclosure that resulted in a $2.9 million after tax realized loss during the period. The provision for credit losses is included in "Realized gains (losses)" in the Consolidated Statements of Operations.


	Year Ended December 31,
	2023		2022
Allowance for credit losses beginning balance	$	1,789	$	827

Provision (reversal) for credit losses	1,883		962

Allowance for credit losses ending balance	$	3,672	$	1,789

There were no delinquent commercial mortgage loans as of December 31, 2023 and December 31, 2022. As of December 31, 2023 and December 31, 2022, the Company had no commercial mortgage loans in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $25 million as of December 31, 2023.

Other Long-Term Investments: Other long-term investments consist of the following assets:


	December 31,
	2023		2022
Investment funds	$	795,583	$	768,689

Other	40,295		26,022
Total	$	835,878	$	794,711

The following table presents additional information about the Company's investment funds as of December 31, 2023 and December 31, 2022 at fair value:


	Fair Value				Unfunded Commitments
Investment Category	2023		2022		2023		Redemption Term/Notice(1)




Commercial mortgage loans	$	411,315	$	431,405	$	540,972	Fully redeemable and non-redeemable with varying terms.
Opportunistic and private credit	181,410		158,524		129,253		Fully redeemable and non-redeemable with varying terms.


Infrastructure	165,887		159,534		16,800		Fully redeemable and non-redeemable with varying terms.


Other	36,971		19,226		57,343		Non-redeemable with varying terms
Total investment funds	$	795,583	$	768,689	$	744,368

(1) Non-redeemable funds generally have an expected life of 7 to 12 years from fund closing with extension options of 1 to 4 years. Redemptions are paid out throughout the life of the funds at the General Partner's discretion. Redeemable funds can generally be redeemed over 6 to 36 months upon request from limited partners.

The Company had $154 million of capital called during the year from existing investment funds, as compared to $201 million in 2022.