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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

See below for a breakout of the net balance by asset class for the year-ended December 31, 2023 and 2022:


	Year Ended December 31,
	2023		2022
Property and equipment, net of depreciation:
Company occupied real estate	$	32,566	$	32,456
Data processing equipment	198,150		177,173
Transportation equipment	7,405		12
Furniture and equipment	1,776		2,090
	$	239,897	$	211,731

Schedule of Assumptions for Options Granted

A summary of assumptions for options granted in each of the three years 2021 through 2023 is as follows:


	2023		2022		2021
Volatility factor	23.0	%	22.3	%	21.8	%
Dividend yield	0.7	%	0.8	%	0.8	%
Expected term (in years)	5.10		5.12		5.11
Risk-free rate	4.1	%	1.9	%	0.6	%

Schedule of Liability for Future Policy Benefit, Activity

The following tables summarize the balance of and changes to the liability for future policy benefits for traditional life and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12:


	Net Liability for Future Policy Benefits - Long Duration Life
	American Income		DTC		Liberty National		Other		Total


Balance at original discount rates as of December 31, 2020(2)	$	3,541,426	$	2,492,226	$	2,150,829	$	2,758,558	$	10,943,039
Effect of changes in discount rate assumptions	3,334,600		2,195,430		1,229,610		2,325,536		9,085,176
Effect of capping and flooring(1)	—		16,899		2,433		2		19,334
Balance at current discount rates as of January 1, 2021	$	6,876,026	$	4,704,555	$	3,382,872	$	5,084,096	$	20,047,549
Reinsurance recoverable	$	(109)	$	—	$	(10,758)	$	(49,455)	$	(60,322)
Balance, net of reinsurance, at current discount rates as of January 1, 2021	$	6,875,917	$	4,704,555	$	3,372,114	$	5,034,641	$	19,987,227


	Net liability for Future Policy Benefits - Long Duration Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total


Balance at original discount rates as of December 31, 2020(2)	$	88,505	$	1,390,944	$	502,952	$	101,998	$	(2,913)	$	2,081,486
Effect of changes in discount rate assumptions	123,906		501,748		220,313		60,366		318		906,651
Effect of capping and flooring(1)	6,506		—		19,324		—		4,193		30,023
Balance at current discount rates as of January 1, 2021	218,917		1,892,692		742,589		162,364		1,598		3,018,160
Reinsurance recoverable	(5,254)		(12,314)		(1,961)		—		—		(19,529)
Balance, net of reinsurance, at current discount rates as of January 1, 2021	$	213,663	$	1,880,378	$	740,628	$	162,364	$	1,598	$	2,998,631

(1)When the present value of expected future net premiums exceeds the present value of expected future gross premiums for a given cohort (capping), or the present value of future policy benefits and related termination expenses exceeds the present value of expected future net premiums (flooring), an adjustment is made to the liability for future policy benefits.

(2)The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above.

The following table presents total policy liabilities, both before and after the Transition Date:


	January 1,		December 31,
	2021(3)		2020(3)

Future policy benefits:
Net liability for future policy benefits—long duration life	$	20,047,549	$	10,943,039
Net liability for future policy benefits—long duration health	3,018,160		2,081,486





Additional insurance liabilities(1),(2)	2,008,399		2,218,116
Total future policy benefits	25,074,108		15,242,641

Unearned and advance premium(1)	243,612		61,971

Policy claims and other benefits payable(1)	476,710		402,693

Other policyholders' funds(1)	98,459		97,968
Total policy liabilities	$	25,892,889	$	15,805,273

(1)In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidated Balance Sheets as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below.

(2)The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Liabilities for additional information.

(3)The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above.

The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts for the three years ended December 31, 2023.


	Life
	Present value of expected future net premiums
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2021	$	4,498,278	$	7,028,713	$	1,327,203	$	571,165	$	13,425,359
Beginning balance at original discount rates	3,263,663		4,963,806		967,173		393,287		9,587,929
Effect of changes in assumptions on future cash flows	5,854		18,076		5,104		2,499		31,533
Effect of actual variances from expected experience	43,249		7,439		61,583		(1,592)		110,679
Adjusted balance at January 1, 2021	3,312,766		4,989,321		1,033,860		394,194		9,730,141
Issuances(1)	866,716		860,279		77,272		43,978		1,848,245
Interest accrual(2)	169,543		267,314		51,274		20,806		508,937
Net premiums collected(3)	(443,095)		(583,173)		(122,164)		(42,837)		(1,191,269)

Effect of changes in the foreign exchange rate	168		—		—		—		168
Ending balance at original discount rates	3,906,098		5,533,741		1,040,242		416,141		10,896,222

Effect of change from original to current discount rates	1,019,094		1,731,164		292,227		143,831		3,186,316
Balance at December 31, 2021	$	4,925,192	$	7,264,905	$	1,332,469	$	559,972	$	14,082,538

Balance at January 1, 2022	$	4,925,192	$	7,264,905	$	1,332,469	$	559,972	$	14,082,538
Beginning balance at original discount rates	3,906,098		5,533,741		1,040,242		416,141		10,896,222
Effect of changes in assumptions on future cash flows	34,266		79,571		17,719		35,214		166,770
Effect of actual variances from expected experience	(121,230)		(264,286)		(20,027)		(10,929)		(416,472)
Adjusted balance at January 1, 2022	3,819,134		5,349,026		1,037,934		440,426		10,646,520
Issuances(1)	760,857		663,790		104,982		31,815		1,561,444
Interest accrual(2)	176,102		273,494		51,326		21,150		522,072
Net premiums collected(3)	(491,168)		(605,446)		(128,119)		(44,182)		(1,268,915)

Effect of changes in the foreign exchange rate	(18,202)		—		—		—		(18,202)
Ending balance at original discount rates	4,246,723		5,680,864		1,066,123		449,209		11,442,919

Effect of change from original to current discount rates	26,433		229,360		28,284		21,532		305,609
Balance at December 31, 2022	$	4,273,156	$	5,910,224	$	1,094,407	$	470,741	$	11,748,528


	Life
	Present value of expected future net premiums
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2023	$	4,273,156	$	5,910,224	$	1,094,407	$	470,741	$	11,748,528
Beginning balance at original discount rates	4,246,723		5,680,864		1,066,123		449,209		11,442,919
Effect of changes in assumptions on future cash flows	14,265		36,170		5,178		8,419		64,032
Effect of actual variances from expected experience	(155,293)		(306,004)		(40,961)		(18,441)		(520,699)
Adjusted balance at January 1, 2023	4,105,695		5,411,030		1,030,340		439,187		10,986,252
Issuances(1)	733,702		579,363		127,048		27,959		1,468,072
Interest accrual(2)	200,363		287,615		54,147		22,804		564,929
Net premiums collected(3)	(521,521)		(613,749)		(133,704)		(46,001)		(1,314,975)

Effect of changes in the foreign exchange rate	5,090		—		—		—		5,090
Ending balance at original discount rates	4,523,329		5,664,259		1,077,831		443,949		11,709,368

Effect of change from original to current discount rates	158,559		388,392		51,885		34,103		632,939
Balance at December 31, 2023	$	4,681,888	$	6,052,651	$	1,129,716	$	478,052	$	12,342,307

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.

(2)The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate.

(3)Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business.


	Life
	Present value of expected future policy benefits
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2021	$	11,374,299	$	11,733,268	$	4,710,075	$	5,655,261	$	33,472,903
Beginning balance at original discount rates	6,805,088		7,472,930		3,120,435		3,151,846		20,550,299
Effect of changes in assumptions on future cash flows	6,584		20,319		5,837		2,850		35,590
Effect of actual variances from expected experience	45,921		13,675		62,981		(3,040)		119,537
Adjusted balance at January 1, 2021	6,857,593		7,506,924		3,189,253		3,151,656		20,705,426
Issuances(1)	866,707		860,279		77,272		43,978		1,848,236
Interest accrual(2)	389,384		421,762		168,794		189,778		1,169,718
Benefit payments(3)	(370,275)		(631,706)		(229,155)		(118,106)		(1,349,242)

Effect of changes in the foreign exchange rate	792		—		—		—		792
Ending balance at original discount rates	7,744,201		8,157,259		3,206,164		3,267,306		22,374,930
Effect of change from original to current discount rates	4,029,318		3,702,149		1,336,533		2,221,378		11,289,378
Balance at December 31, 2021	$	11,773,519	$	11,859,408	$	4,542,697	$	5,488,684	$	33,664,308


	Life
	Present value of expected future policy benefits
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2022	$	11,773,519	$	11,859,408	$	4,542,697	$	5,488,684	$	33,664,308
Beginning balance at original discount rates	7,744,201		8,157,259		3,206,164		3,267,306		22,374,930
Effect of changes in assumptions on future cash flows	48,534		104,910		33,457		39,725		226,626
Effect of actual variances from expected experience	(127,626)		(259,285)		(18,535)		(12,787)		(418,233)
Adjusted balance at January 1, 2022	7,665,109		8,002,884		3,221,086		3,294,244		22,183,323
Issuances(1)	760,856		663,786		105,006		31,815		1,561,463
Interest accrual(2)	410,201		433,611		169,578		195,792		1,209,182
Benefit payments(3)	(382,142)		(622,389)		(222,690)		(118,147)		(1,345,368)

Effect of changes in the foreign exchange rate	(44,263)		—		—		—		(44,263)
Ending balance at original discount rates	8,409,761		8,477,892		3,272,980		3,403,704		23,564,337
Effect of change from original to current discount rates	709,343		747,559		156,276		572,446		2,185,624
Balance at December 31, 2022	$	9,119,104	$	9,225,451	$	3,429,256	$	3,976,150	$	25,749,961

Balance at January 1, 2023	$	9,119,104	$	9,225,451	$	3,429,256	$	3,976,150	$	25,749,961
Beginning balance at original discount rates	8,409,761		8,477,892		3,272,980		3,403,704		23,564,337
Effect of changes in assumptions on future cash flows	13,344		34,407		6,156		11,661		65,568
Effect of actual variances from expected experience	(164,900)		(318,687)		(46,341)		(24,195)		(554,123)
Adjusted balance at January 1, 2023	8,258,205		8,193,612		3,232,795		3,391,170		23,075,782
Issuances(1)	733,700		579,365		127,062		27,959		1,468,086
Interest accrual(2)	452,640		458,587		174,995		204,083		1,290,305
Benefit payments(3)	(396,031)		(574,812)		(196,600)		(116,353)		(1,283,796)

Effect of changes in the foreign exchange rate	13,319		—		—		—		13,319
Ending balance at original discount rates	9,061,833		8,656,752		3,338,252		3,506,859		24,563,696
Effect of change from original to current discount rates	1,101,794		1,057,764		267,140		732,764		3,159,462
Balance at December 31, 2023	$	10,163,627	$	9,714,516	$	3,605,392	$	4,239,623	$	27,723,158

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.

(2)The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate.

(3)Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions.


	Life
	Net liability for future policy benefits as of December 31, 2021
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	3,838,103	$	2,623,518	$	2,165,922	$	2,851,165	$	11,478,708
Effect of changes in discount rate assumptions	3,010,224		1,970,985		1,044,306		2,077,547		8,103,062
Other Adjustments(1)	156		2,511		674		72		3,413
Net liability for future policy benefits, after other adjustments, at current discount rates	6,848,483		4,597,014		3,210,902		4,928,784		19,585,183
Reinsurance recoverable	(105)		—		(11,131)		(49,899)		(61,135)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	6,848,378	$	4,597,014	$	3,199,771	$	4,878,885	$	19,524,048

(1)Other adjustments include the effects of capping and flooring the liability.


	Life
	Net liability for future policy benefits as of December 31, 2022
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,163,038	$	2,797,028	$	2,206,857	$	2,954,495	$	12,121,418
Effect of changes in discount rate assumptions	682,910		518,199		127,992		550,914		1,880,015
Other Adjustments(1)	115		4,913		7,638		48		12,714
Net liability for future policy benefits, after other adjustments, at current discount rates	4,846,063		3,320,140		2,342,487		3,505,457		14,014,147
Reinsurance recoverable	(123)		—		(7,477)		(34,830)		(42,430)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	4,845,940	$	3,320,140	$	2,335,010	$	3,470,627	$	13,971,717

(1)Other adjustments include the effects of capping and flooring the liability.


	Life
	Net liability for future policy benefits as of December 31, 2023
	American Income		DTC		Liberty National		Other		Total
Net liability for future policy benefits at original discount rates	$	4,538,504	$	2,992,493	$	2,260,421	$	3,062,910	$	12,854,328
Effect of changes in discount rate assumptions	943,235		669,372		215,255		698,661		2,526,523
Other Adjustments(1)	297		3,315		5,764		62		9,438
Net liability for future policy benefits, after other adjustments, at current discount rates	5,482,036		3,665,180		2,481,440		3,761,633		15,390,289
Reinsurance recoverable	(141)		—		(7,719)		(37,848)		(45,708)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	5,481,895	$	3,665,180	$	2,473,721	$	3,723,785	$	15,344,581

(1)Other adjustments include the effects of capping and flooring the liability.

The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts for the three years ended December 31, 2023:


	Health
	Present value of expected future net premiums
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at January 1, 2021	$	3,432,493	$	1,889,970	$	578,518	$	205,601	$	133,832	$	6,240,414
Beginning balance at original discount rates	2,573,470		1,537,512		430,962		150,095		100,380		4,792,419
Effect of changes in assumptions on future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	86,186		(26,975)		(34,535)		(4,314)		(1,695)		18,667
Adjusted balance at January 1, 2021	2,659,656		1,510,537		396,427		145,781		98,685		4,811,086
Issuances(1)	413,289		282,898		47,043		45,612		3,859		792,701
Interest accrual(2)	117,151		59,554		20,736		7,416		4,966		209,823
Net premiums collected(3)	(240,245)		(164,399)		(49,797)		(19,931)		(10,734)		(485,106)

Effect of changes in the foreign exchange rate	—		—		—		(77)		—		(77)
Ending balance at original discount rates	2,949,851		1,688,590		414,409		178,801		96,776		5,328,427

Effect of change from original to current discount rates	661,808		256,124		102,959		43,752		24,948		1,089,591
Balance at December 31, 2021	$	3,611,659	$	1,944,714	$	517,368	$	222,553	$	121,724	$	6,418,018




Balance at January 1, 2022	$	3,611,659	$	1,944,714	$	517,368	$	222,553	$	121,724	$	6,418,018
Beginning balance at original discount rates	2,949,851		1,688,590		414,409		178,801		96,776		5,328,427
Effect of changes in assumptions on future cash flows	(195,560)		(20,931)		19,846		(17,911)		(9,035)		(223,591)
Effect of actual variances from expected experience	(37,437)		(67,419)		(39,029)		7,911		(2,301)		(138,275)
Adjusted balance at January 1, 2022	2,716,854		1,600,240		395,226		168,801		85,440		4,966,561
Issuances(1)	360,942		241,052		51,827		39,003		8,224		701,048
Interest accrual(2)	122,064		60,303		19,141		7,399		4,554		213,461
Net premiums collected(3)	(258,598)		(172,376)		(50,752)		(21,085)		(10,467)		(513,278)

Effect of changes in the foreign exchange rate	—		—		—		(1,487)		—		(1,487)
Ending balance at original discount rates	2,941,262		1,729,219		415,442		192,631		87,751		5,366,305

Effect of change from original to current discount rates	(32,761)		(134,227)		8,048		(2,335)		2,392		(158,883)
Balance at December 31, 2022	$	2,908,501	$	1,594,992	$	423,490	$	190,296	$	90,143	$	5,207,422

Balance at January 1, 2023	$	2,908,501	$	1,594,992	$	423,490	$	190,296	$	90,143	$	5,207,422
Beginning balance at original discount rates	2,941,262		1,729,219		415,442		192,631		87,751		5,366,305
Effect of changes in assumptions on future cash flows	466,883		(30,255)		(56,964)		(6,061)		16,553		390,156
Effect of actual variances from expected experience	(27,178)		(69,878)		(36,850)		(11,152)		(2,850)		(147,908)
Adjusted balance at January 1, 2023	3,380,967		1,629,086		321,628		175,418		101,454		5,608,553
Issuances(1)	377,097		266,375		59,768		39,825		14,467		757,532
Interest accrual(2)	139,824		67,743		18,255		8,528		4,616		238,966
Net premiums collected(3)	(272,085)		(180,031)		(51,081)		(22,325)		(10,657)		(536,179)

Effect of changes in the foreign exchange rate	—		—		—		423		—		423
Ending balance at original discount rates	3,625,803		1,783,173		348,570		201,869		109,880		6,069,295

Effect of change from original to current discount rates	71,968		(71,432)		9,902		4,512		5,483		20,433
Balance at December 31, 2023	$	3,697,771	$	1,711,741	$	358,472	$	206,381	$	115,363	$	6,089,728

(1)Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period.

(3)Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business.


	Health
	Present value of expected future policy benefits
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at January 1, 2021	$	3,651,359	$	3,782,662	$	1,320,597	$	367,965	$	134,967	$	9,257,550
Beginning balance at original discount rates	2,715,869		2,928,457		953,238		252,092		101,632		6,951,288
Effect of changes in assumptions on future cash flows	—		—		—		—		—		—
Effect of actual variances from expected experience	88,696		(27,704)		(34,859)		(4,570)		(1,614)		19,949
Adjusted balance at January 1, 2021	2,804,565		2,900,753		918,379		247,522		100,018		6,971,237
Issuances(1)	413,289		282,898		47,453		45,612		3,859		793,111
Interest accrual(2)	125,346		114,543		50,415		13,679		4,991		308,974
Benefit payments(3)	(252,299)		(104,852)		(94,639)		(21,147)		(13,240)		(486,177)

Effect of changes in the foreign exchange rate	—		—		—		(62)		—		(62)
Ending balance at original discount rates	3,090,901		3,193,342		921,608		285,604		95,628		7,587,083
Effect of change from original to current discount rates	719,658		646,980		279,709		95,311		24,260		1,765,918
Balance at December 31, 2021	$	3,810,559	$	3,840,322	$	1,201,317	$	380,915	$	119,888	$	9,353,001

Balance at January 1, 2022	$	3,810,559	$	3,840,322	$	1,201,317	$	380,915	$	119,888	$	9,353,001
Beginning balance at original discount rates	3,090,901		3,193,342		921,608		285,604		95,628		7,587,083
Effect of changes in assumptions on future cash flows	(194,936)		(27,211)		18,065		(21,559)		(8,270)		(233,911)
Effect of actual variances from expected experience	(40,316)		(70,690)		(40,597)		10,402		(2,621)		(143,822)
Adjusted balance at January 1, 2022	2,855,649		3,095,441		899,076		274,447		84,737		7,209,350
Issuances(1)	360,642		241,052		52,257		39,006		8,202		701,159
Interest accrual(2)	129,842		120,700		47,719		13,806		4,553		316,620
Benefit payments(3)	(265,500)		(120,849)		(94,187)		(20,413)		(12,280)		(513,229)

Effect of changes in the foreign exchange rate	—		—		—		(3,133)		—		(3,133)
Ending balance at original discount rates	3,080,633		3,336,344		904,865		303,713		85,212		7,710,767
Effect of change from original to current discount rates	(33,804)		(330,680)		36,709		9,037		2,320		(316,418)
Balance at December 31, 2022	$	3,046,829	$	3,005,664	$	941,574	$	312,750	$	87,532	$	7,394,349

Balance at January 1, 2023	$	3,046,829	$	3,005,664	$	941,574	$	312,750	$	87,532	$	7,394,349
Beginning balance at original discount rates	3,080,633		3,336,344		904,865		303,713		85,212		7,710,767
Effect of changes in assumptions on future cash flows	464,652		(32,428)		(60,437)		(6,407)		15,930		381,310
Effect of actual variances from expected experience	(26,718)		(74,797)		(36,910)		(12,661)		(3,325)		(154,411)
Adjusted balance at January 1, 2023	3,518,567		3,229,119		807,518		284,645		97,817		7,937,666
Issuances(1)	376,573		266,375		59,158		39,825		14,446		756,377
Interest accrual(2)	147,082		134,107		45,614		15,070		4,616		346,489
Benefit payments(3)	(300,692)		(122,912)		(95,471)		(24,987)		(12,378)		(556,440)

Effect of changes in the foreign exchange rate	—		—		—		878		—		878
Ending balance at original discount rates	3,741,530		3,506,689		816,819		315,431		104,501		8,484,970
Effect of change from original to current discount rates	72,798		(190,809)		48,989		20,073		4,981		(43,968)
Balance at December 31, 2023	$	3,814,328	$	3,315,880	$	865,808	$	335,504	$	109,482	$	8,441,002

(1)Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period.


	Health
	Net liability for future policy benefits as of December 31, 2021
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	141,050	$	1,504,752	$	507,199	$	106,803	$	(1,148)	$	2,258,656
Effect of changes in discount rate assumptions	57,850		390,856		176,750		51,559		(688)		676,327
Other Adjustments(1)	1,683		43		2,752		27		3,175		7,680
Net liability for future policy benefits, after other adjustments, at current discount rates	200,583		1,895,651		686,701		158,389		1,339		2,942,663
Reinsurance recoverable	(4,173)		(12,442)		(1,715)		—		—		(18,330)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	196,410	$	1,883,209	$	684,986	$	158,389	$	1,339	$	2,924,333

(1)Other adjustments include the effects of capping and flooring the liability.


	Health
	Net liability for future policy benefits as of December 31, 2022
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	$	139,371	$	1,607,125	$	489,423	$	111,082	$	(2,539)	$	2,344,462
Effect of changes in discount rate assumptions	(1,043)		(196,453)		28,661		11,372		(72)		(157,535)
Other Adjustments(1)	4,055		3,172		5,953		48		3,634		16,862
Net liability for future policy benefits, after other adjustments, at current discount rates	142,383		1,413,844		524,037		122,502		1,023		2,203,789
Reinsurance recoverable	(3,820)		(9,027)		(1,498)		—		—		(14,345)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	138,563	$	1,404,817	$	522,539	$	122,502	$	1,023	$	2,189,444

(1)Other adjustments include the effects of capping and flooring the liability.


	Health
	Net liability for future policy benefits as of December 31, 2023
	United American		Family Heritage		Liberty National		American Income		Direct to Consumer		Total
Net liability for future policy benefits at original discount rates	115,727		1,723,516		468,249		113,562		(5,379)		2,415,675
Effect of changes in discount rate assumptions	830		(119,377)		39,087		15,561		(502)		(64,401)
Other Adjustments(1)	10,980		84		9,567		857		6,653		28,141
Net liability for future policy benefits, after other adjustments, at current discount rates	127,537		1,604,223		516,903		129,980		772		2,379,415
Reinsurance recoverable	(3,287)		(10,718)		(1,317)		—		—		(15,322)
Net liability for future policy benefits, after reinsurance recoverable, at current discount rates	$	124,250	$	1,593,505	$	515,586	$	129,980	$	772	$	2,364,093

(1)Other adjustments include the effects of capping and flooring the liability.

The following tables include the total remeasurement gain or loss, bifurcated between the gain or loss due to differences between actual and expected experience and the amount due to assumption updates, for each of the three years-ended December 31, 2023.



	2023	2022	2021
Life Remeasurement Gain (Loss)—Experience
American Income	9,430	1,965	(2,008)
Direct to Consumer	12,201	(2,243)	(4,782)
Liberty National	5,013	(1,348)	(865)
Other	4,760	1,354	664
	31,404	(272)	(6,991)
Life Remeasurement Gain (Loss)—Assumption Unlocking
American Income	308	(8,707)	(750)
Direct to Consumer	1,763	(25,334)	(2,242)
Liberty National	(1,248)	(7,872)	(733)
Other	(2,836)	(5,241)	(350)
	(2,013)	(47,154)	(4,075)

Total Life Remeasurement Gain (Loss)	29,391	(47,426)	(11,066)

Health Remeasurement Gain (Loss)—Experience
United American	(134)	3,502	(2,343)
Family Heritage	4,638	2,395	594
Liberty National	628	1,406	304
American Income	1,461	(2,545)	199
Direct to Consumer	23	148	16
	6,616	4,906	(1,230)
Health Remeasurement Gain (Loss)—Assumption Unlocking
United American	762	(626)	—
Family Heritage	2,173	6,283	—
Liberty National	2,171	1,463	—
American Income	119	3,615	—
Direct to Consumer	8	(80)	—
	5,233	10,655	—

Total Health Remeasurement Gain (Loss)	11,849	15,561	(1,230)

The following table reconciles the liability for future policy benefits to the Consolidated Balance Sheets as of December 31, 2023, 2022, and 2021:



	At Original Discount Rates						At Current Discount Rates
	As of December 31,						As of December 31,
	2023		2022		2021		2023		2022		2021
Life(1):
American Income	$	4,538,775	$	4,163,111	$	3,838,212	$	5,482,036	$	4,846,063	$	6,848,483
Direct to Consumer	2,992,493		2,797,031		2,623,521		3,665,180		3,320,140		4,597,014
Liberty National	2,260,421		2,206,857		2,165,922		2,481,440		2,342,487		3,210,902
Other	3,062,966		2,954,522		2,851,189		3,761,633		3,505,457		4,928,784
Net liability for future policy benefits—long duration life	12,854,655		12,121,521		11,478,844		15,390,289		14,014,147		19,585,183

Health(1):
United American	124,021		141,362		142,189		127,537		142,383		200,583
Family Heritage	1,723,581		1,607,169		1,504,797		1,604,223		1,413,844		1,895,651
Liberty National	476,559		494,155		509,714		516,903		524,037		686,701
American Income	114,407		111,128		106,848		129,980		122,502		158,389
Direct to Consumer	737		979		1,111		772		1,023		1,339
Net liability for future policy benefits—long duration health	2,439,305		2,354,793		2,264,659		2,379,415		2,203,789		2,942,663

Deferred profit liability	174,717		175,883		184,743		174,717		175,883		184,743
Deferred annuity	773,039		954,318		1,033,525		773,039		954,318		1,033,525
Interest sensitive life	732,948		739,105		745,335		732,948		739,105		745,335
Other	9,951		10,106		8,193		9,945		10,099		8,191
Total future policy benefits	$	16,984,615	$	16,355,726	$	15,715,299	$	19,460,353	$	18,097,341	$	24,499,640

(1)Balances are presented net of the effects of capping and flooring the liability.

The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities as of December 31, 2023, 2022, and 2021:


	As of December 31,
	2023				2022				2021
	Original discount rate		Current discount rate		Original discount rate		Current discount rate		Original discount rate		Current discount rate
Life
American Income	5.7	%	4.9	%	5.8	%	5.2	%	5.9	%	3.3	%
Direct to Consumer	6.0	%	5.0	%	6.0	%	5.2	%	6.0	%	3.4	%
Liberty National	5.6	%	5.0	%	5.6	%	5.2	%	5.6	%	3.1	%
Other	6.2	%	5.0	%	6.2	%	5.2	%	6.2	%	3.2	%

Health
United American	5.1	%	4.8	%	5.2	%	5.1	%	5.1	%	2.7	%
Family Heritage	4.3	%	4.9	%	4.3	%	5.2	%	4.3	%	2.9	%
Liberty National	5.8	%	4.9	%	5.8	%	5.2	%	5.8	%	2.7	%
American Income	5.8	%	4.8	%	5.9	%	5.1	%	6.0	%	3.0	%
Direct to Consumer	5.1	%	4.8	%	5.2	%	5.1	%	5.1	%	2.7	%

The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities as of December 31, 2023, 2022, and 2021:


	As of December 31,
	2023		2022		2021
	At original discount rates	At current discount rates	At original discount rates	At current discount rates	At original discount rates	At current discount rates
Life
American Income	23.01	23.45	22.86	23.28	22.56	23.76
Direct to Consumer	19.58	21.21	20.27	21.80	20.70	22.98
Liberty National	15.13	15.81	14.86	15.39	15.01	17.27
Other	16.26	17.92	16.59	18.15	16.81	20.09

Health
United American	11.46	10.89	11.37	10.65	14.11	13.70
Family Heritage	14.99	14.54	14.87	14.22	16.39	16.54
Liberty National	9.17	9.49	9.26	9.47	9.01	10.53
American Income	12.21	12.84	12.12	12.56	12.37	14.43
Direct to Consumer	11.46	10.89	11.37	10.65	14.11	13.70

The following tables summarize the amount of gross premiums and interest related to long duration life and health contracts that are recognized in the Consolidated Statements of Operations:


	Life
	Year Ended December 31, 2023				Year Ended December 31, 2022				Year Ended December 31, 2021
	Gross Premiums		Interest expense		Gross Premiums		Interest expense		Gross Premiums		Interest expense
American Income	$	1,587,304	$	252,277	$	1,503,537	$	234,098	$	1,400,501	$	219,842
Direct to Consumer	979,739		170,745		973,429		159,945		955,754		154,376
Liberty National	345,196		120,083		322,497		117,681		306,054		116,981
Other	205,998		179,513		208,390		172,967		210,908		167,378
Total	$	3,118,237	$	722,618	$	3,007,853	$	684,691	$	2,873,217	$	658,577


	Health
	Year Ended December 31, 2023				Year Ended December 31, 2022				Year Ended December 31, 2021
	Gross Premiums		Interest expense		Gross Premiums		Interest expense		Gross Premiums		Interest expense
United American	$	401,834	$	7,002	$	380,710	$	7,532	$	356,580	$	7,948
Family Heritage	396,211		65,892		366,803		59,983		343,839		54,634
Liberty National	187,095		27,248		186,268		28,477		186,520		29,586
American Income	113,605		6,542		111,623		6,408		108,740		6,262
Direct to Consumer	14,283		—		14,290		—		14,844		25
Total	$	1,113,028	$	106,684	$	1,059,694	$	102,400	$	1,010,523	$	98,455

Analysis of Deferred Acquisition Costs

The following table presents the Company's deferred policy acquisition costs before and after the Transition Date:


	January 1,		December 31,
	2021		2020(1)
Life:
American Income	$	1,647,761	$	1,647,761
Direct to Consumer	1,498,970		1,498,435
Liberty National	531,504		531,504
Other	304,786		304,459
Total life	3,983,021		3,982,159

Health:
United American	65,020		60,580
Family Heritage	364,751		364,751
Liberty National	124,754		124,888
American Income	39,477		39,477
Direct to Consumer	2,215		6,520
Total health	596,217		596,216

Annuity	8,309		3,216
Total DAC	$	4,587,547	$	4,581,591

(1)The amounts presented herein have been updated to reflect the immaterial correction of an error, as noted above.

The following table presents the effect of transition adjustments due to the adoption of ASU 2018-12 on shareholders' equity:


	Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Other(1)		Total
Shareholders’ Equity, as of December 31, 2020	$	5,874,109	$	3,029,244	$	(132,261)	$	8,771,092
Effect of changes in discount rate assumptions	—		(7,829,753)		—		(7,829,753)
Effect of capping and flooring	(38,992)		—		—		(38,992)
Effect of removal of unrealized gain (loss) on DAC	—		4,704		—		4,704
Other adjustments(2)	26,470		—		—		26,470
Shareholders’ Equity, as of January 1, 2021	$	5,861,587	$	(4,795,805)	$	(132,261)	$	933,521

(1)Other represents common stock, additional paid-in capital, and treasury stock, combining balances that were unaffected by the new standard.

(2)Other adjustments relates to an immaterial correction of an error, as noted above.


	Life
	American Income		DTC		Liberty National		Other		Total
Balance at January 1, 2021	$	1,647,760	$	1,498,971	$	531,504	$	304,786	$	3,983,021
Capitalizations	435,154		174,524		77,540		13,977		701,195
Amortization expense	(121,387)		(89,800)		(42,625)		(17,116)		(270,928)
Foreign exchange adjustment	(1,273)		—		—		—		(1,273)

Balance at December 31, 2021	$	1,960,254	$	1,583,695	$	566,419	$	301,647	$	4,412,015

Balance at January 1, 2022	$	1,960,254	$	1,583,695	$	566,419	$	301,647	$	4,412,015
Capitalizations	450,600		188,083		90,385		13,504		742,572
Amortization expense	(141,108)		(94,847)		(46,081)		(16,805)		(298,841)
Foreign exchange adjustment	(11,455)		—		—		—		(11,455)

Balance at December 31, 2022	$	2,258,291	$	1,676,931	$	610,723	$	298,346	$	4,844,291






Balance at January 1, 2023	$	2,258,291	$	1,676,931	$	610,723	$	298,346	$	4,844,291
Capitalizations	471,771		159,650		107,230		13,053		751,704
Amortization expense	(159,898)		(99,464)		(51,534)		(16,530)		(327,426)
Foreign exchange adjustment	3,206		—		—		—		3,206

Balance at December 31, 2023	$	2,573,370	$	1,737,117	$	666,419	$	294,869	$	5,271,775


	Health
	United American		Family Heritage		Liberty National		American Income		DTC		Total
Balance at January 1, 2021	$	81,520	$	364,751	$	124,754	$	39,477	$	2,216	$	612,718
Capitalizations	4,427		48,051		15,822		12,992		2		81,294
Amortization expense	(4,807)		(23,835)		(13,039)		(2,957)		(186)		(44,824)
Foreign exchange adjustment	—		—		—		(106)		—		(106)

Balance at December 31, 2021	$	81,140	$	388,967	$	127,537	$	49,406	$	2,032	$	649,082






Balance at January 1, 2022	$	81,140	$	388,967	$	127,537	$	49,406	$	2,032	$	649,082
Capitalizations	2,135		53,117		18,737		12,378		4		86,371
Amortization expense	(5,881)		(25,476)		(13,178)		(3,467)		(182)		(48,184)
Foreign exchange adjustment	—		—		—		(506)		—		(506)

Balance at December 31, 2022	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
















Balance at January 1, 2023	$	77,394	$	416,608	$	133,096	$	57,811	$	1,854	$	686,763
Capitalizations	1,941		63,366		20,309		12,849		—		98,465
Amortization expense	(5,846)		(27,131)		(13,464)		(3,982)		(175)		(50,598)
Foreign exchange adjustment	—		—		—		105		—		105

Balance at December 31, 2023	$	73,489	$	452,843	$	139,941	$	66,783	$	1,679	$	734,735

The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of December 31, 2023:


	December 31,
	2023		2022		2021
Life
American Income	$	2,573,370	$	2,258,291	$	1,960,254
Direct to Consumer	1,737,117		1,676,931		1,583,695
Liberty National	666,419		610,723		566,419
Other	294,869		298,346		301,647
Total DAC - Life	5,271,775		4,844,291		4,412,015

Health
United American	73,489		77,394		81,140
Family Heritage	452,843		416,608		388,967
Liberty National	139,941		133,096		127,537
American Income	66,783		57,811		49,406
Direct to Consumer	1,679		1,854		2,032
Total DAC - Health	734,735		686,763		649,082

Annuity	2,967		4,643		6,442
Total	$	6,009,477	$	5,535,697	$	5,067,539

Schedule Of New Accounting Standards on Previously Reported Results

Effect of New Accounting Standards on Previously Reported Results: The impacts from the adoption of ASU 2018-12 on the Company's previously reported results included in these financial statements are as follows:

Consolidated Balance Sheets



	December 31, 2022
	As Previously Reported		Adoption Impact(1)		As Adjusted
Assets:








Other receivables	$	484,887	$	104,284	$	589,171
Deferred acquisition costs	5,249,907		285,790		5,535,697




Liabilities:
Future policy benefits	16,721,846		1,375,495		18,097,341
Unearned and advance premium	60,742		192,618		253,360
Policy claims and other benefits payable	430,027		79,329		509,356


Current and deferred income taxes	686,172		(251,523)		434,649





Shareholders' equity:



Accumulated other comprehensive income (loss)	(1,415,714)		(1,374,599)		(2,790,313)
Retained earnings	6,466,220		428,315		6,894,535

(1) In addition to the impact of the adoption, this also includes the immaterial error corrections noted above.

Consolidated Statements of Operations


	Year Ended December 31, 2022					Year Ended December 31, 2021

		As Previously Reported		Adoption Impact(1)		As Adjusted		As Previously Reported		Adoption Impact(1)		As Adjusted
Revenue:
Life premium		$	3,023,296	$	4,528	$	3,027,824	$	2,898,210	$	(4,280)	$	2,893,930
Health premium		1,279,412		3,005		1,282,417		1,201,676		(794)		1,200,882


Net investment income		987,499		4,301		991,800		952,447		4,243		956,690





Benefits and expenses:
Life policyholder benefits		2,045,730		(10,037)		2,035,693		2,071,810		(173,291)		1,898,519
Health policyholder benefits		791,809		(38,943)		752,866		758,745		(37,436)		721,309
Other policyholder benefits		27,917		8,958		36,875		29,061		10,157		39,218


Amortization of deferred acquisition costs		624,407		(275,583)		348,824		603,838		(286,222)		317,616
Commissions, premium taxes, and non-deferred acquisition costs		374,383		131,639		506,022		331,510		123,740		455,250




Income before income taxes		906,311		195,800		1,102,111		912,390		362,221		1,274,611
Income tax benefit (expense)		(166,607)		(41,118)		(207,725)		(167,431)		(76,066)		(243,497)



Net income		$	739,704	$	154,682	$	894,386	$	744,959	$	286,155	$	1,031,114




Basic net income per common share		$	7.55	$	1.58	$	9.13	$	7.30	$	2.80	$	10.10




Diluted net income per common share		$	7.47	$	1.57	$	9.04	$	7.22	$	2.77	$	9.99

(1) In addition to the impact of adoption, this also includes the immaterial error corrections noted above.

See Note 1—Significant Accounting Policies, Note 6—Policy Liabilities, and Note 7—DAC for additional information on the adoption.