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Investments

12 Months Ended

Dec. 31, 2024

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, 2024 and 2023, 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, 2024
	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	$	401,753	$	—	$	1	$	(42,794)	$	358,960	2
States, municipalities, and political subdivisions	3,300,901		—		20,662		(534,759)		2,786,804		16
Foreign governments	36,883		—		18		(8,870)		28,031		—
Corporates, by sector:
Industrials	7,889,074		(7,098)		105,610		(805,330)		7,182,256		42
Financial	5,006,375		—		82,598		(413,043)		4,675,930		27

Utilities	2,081,366		—		39,716		(118,007)		2,003,075		12
Total corporates	14,976,815		(7,098)		227,924		(1,336,380)		13,861,261		81
Collateralized debt obligations	36,923		—		5,943		—		42,866		—
Other asset-backed securities	82,534		(3,297)		39		(2,186)		77,090		1
Total fixed maturities	$	18,835,809	$	(10,395)	$	254,587	$	(1,924,989)	$	17,155,012	100

(1)Amount reported in the balance sheet.

(2)At fair value.


	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:
Industrials	8,016,126		(7,115)		213,078		(566,847)		7,655,242		43
Financial	5,028,151		—		112,368		(388,340)		4,752,179		27

Utilities	2,017,967		—		73,925		(94,130)		1,997,762		11
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, 2024 and 2023, the Company had unfunded commitments of $167 million and $0, respectively, in fixed maturity investments.

The Company has exposure to real estate investment trusts with an average rating of BBB+, which had a fair value of $405 million (2% of the total fixed maturity portfolio) and $425 million (2% of the total fixed maturity portfolio) at December 31, 2024 and December 31, 2023, respectively.

A schedule of fixed maturities available for sale by contractual maturity date at December 31, 2024, 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, 2024
	Amortized Cost, net		Fair Value
Fixed maturities available for sale:
Due in one year or less	$	126,902	$	126,643
Due after one year through five years	728,959		741,488
Due after five years through ten years	1,869,090		1,873,345
Due after ten years through twenty years	8,729,774		8,118,486
Due after twenty years	7,254,503		6,175,067
Mortgage-backed and asset-backed securities	116,186		119,983
	$	18,825,414	$	17,155,012

Analysis of investment operations: "Net investment income" for the three years ended December 31, 2024 is summarized as follows:


	Year Ended December 31,
	2024		2023		2022
Fixed maturities available for sale	$	981,439	$	944,628	$	910,284
Policy loans	52,625		49,011		46,586
Mortgage loans	27,809		19,541		9,719
Other long-term investments(1)	81,834		54,655		40,837
Short-term investments	11,151		6,322		2,156
	1,154,858		1,074,157		1,009,582
Less investment expense	(19,227)		(17,273)		(17,782)
Net investment income	$	1,135,631	$	1,056,884	$	991,800

(1)For the years ended 2024, 2023, and 2022, the investment funds, accounted for under the fair value option method, recorded $74.8 million, $52.3 million, and $40.3 million, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds.

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


	Year Ended December 31,
	2024		2023		2022
Fixed maturities available for sale:
Proceeds from sales(1)	$	1,207,237	$	602,556	$	390,392
Gross realized gains	21,196		5,554		1,296
Gross realized losses	(32,956)		(80,823)		(57,996)

(1)Includes unsettled trades of $866 thousand, $0, and $0 as of December 31, 2024, 2023, and 2022, respectively.

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


	Year Ended December 31,
	2024		2023		2022
Realized investment gains (losses):
Fixed maturities available for sale:
Sales and other(1)	$	(11,563)	$	(77,301)	$	(32,552)
Provision for credit losses	(3,280)		(7,115)		387
Fair value option—change in fair value	(16,717)		15,102		(29,353)
Mortgage loans	(3,972)		(5,603)		(963)
Other investments	2,936		1,792		4,681
Realized gains (losses) from investments	(32,596)		(73,125)		(57,800)

Other gains (losses)	8,408		7,449		(18,748)
Total realized gains (losses)	(24,188)		(65,676)		(76,548)
Applicable tax	5,080		13,792		16,075
Realized gains (losses), net of tax	$	(19,108)	$	(51,884)	$	(60,473)

(1)For the years ended 2024, 2023, and 2022, the Company recorded $105.6 million, $50.9 million, and $147.6 million of issuer-initiated exchanges of fixed maturities (noncash transactions) that resulted in $0, $(1.9) million, and $1.9 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 2023.

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


	Year Ended December 31,
	2024		2023		2022
Change in unrealized investment gains (losses) on:
Fixed maturities available for sale	$	(622,809)	$	750,734	$	(5,298,692)

Fair value measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at December 31, 2024 and 2023:


	Fair Value Measurement at December 31, 2024:
	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	$	—		$	358,960		$	—		$	358,960
States, municipalities, and political subdivisions	—			2,786,804			—			2,786,804
Foreign governments	—			28,031			—			28,031
Corporates, by sector:
Industrials	—			6,998,900			183,356			7,182,256
Financial	—			4,551,737			124,193			4,675,930
Utilities	—			1,890,559			112,516			2,003,075

Total corporates	—			13,441,196			420,065			13,861,261
Collateralized debt obligations	—			—			42,866			42,866
Other asset-backed securities	—			65,907			11,183			77,090
Total fixed maturities	$	—		$	16,680,898		$	474,114		$	17,155,012
Percentage of total	—		%	97		%	3		%	100		%


	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:
Industrials	—			7,440,493			214,749			7,655,242
Financial	—			4,621,160			131,019			4,752,179
Utilities	—			1,888,797			108,965			1,997,762

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		%

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, 2022	$	—	$	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

Included in realized gains / losses	—		—		740		740
Included in other comprehensive income	37		907		(4,607)		(3,663)
Acquisitions(1)	8,948		—		14,800		23,748
Sales	—		—		—		—
Amortization	—		4,548		217		4,765
Other(2)	—		(4,735)		(45,818)		(50,553)
Transfers into Level 3(3)	2,198		—		—		2,198
Transfers out of Level 3(3)	—		—		—		—
Balance at December 31, 2024	$	11,183	$	42,866	$	420,065	$	474,114

(1)Acquisitions of Level 3 investments in each of the years 2022 through 2024 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.

Changes in unrealized gains and 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
2022	$	—	$	(13,771)	$	(91,385)	$	(105,156)
2023	—		(8,230)		4,541		(3,689)
2024	37		907		(4,607)		(3,663)

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, 2024

Fair Value

Valuation
Techniques

Significant Unobservable
Input

Range

Weighted-

Average(1)

Private placement fixed maturities

420,065

Determination of credit spread

Credit rating

B to AA

BBB+

Collateralized debt obligations

42,866

Discounted Cash Flows

Discount rate

11.75%

Asset-backed securities

11,183

Determination of credit spread

Credit rating

CC - BBB

474,114

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

Private placement fixed maturities and asset-backed securities are valued based on the contractual cash flows discounted by a yield determined as a treasury benchmark rate adjusted for a credit spread. The credit spread is developed from observable indices for similar securities and unobservable indices for private securities or private comparable securities for corresponding credit ratings. The credit ratings for the securities may be considered unobservable inputs, as they are private letter ratings issued by a nationally recognized statistical rating organization or 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, 2024	705	1,498	2,203
As of December 31, 2023	151	1,614	1,765

Globe Life's entire fixed maturity portfolio consisted of 2,552 issues by 1,014 different issuers at December 31, 2024 and 2,473 issues by 980 different issuers at December 31, 2023. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of December 31, 2024 and December 31, 2023.

The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at December 31, 2024 and December 31, 2023.

Analysis of Gross Unrealized Investment Losses


	At December 31, 2024
	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	$	11,268	$	(290)	$	347,527	$	(42,504)	$	358,795	$	(42,794)
States, municipalities, and political subdivisions	778,244		(32,894)		1,532,264		(501,865)		2,310,508		(534,759)
Foreign governments	—		—		24,925		(8,870)		24,925		(8,870)
Corporates, by sector:
Industrials	1,487,940		(73,404)		3,433,034		(690,920)		4,920,974		(764,324)
Financial	961,932		(52,946)		1,785,130		(333,873)		2,747,062		(386,819)

Utilities	546,965		(20,214)		540,077		(90,996)		1,087,042		(111,210)
Total corporates	2,996,837		(146,564)		5,758,241		(1,115,789)		8,755,078		(1,262,353)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	23,231		(95)		42,639		(2,091)		65,870		(2,186)
Total investment grade securities	3,809,580		(179,843)		7,705,596		(1,671,119)		11,515,176		(1,850,962)

Below investment grade securities:


Corporates, by sector:
Industrials	54,199		(2,656)		142,638		(38,350)		196,837		(41,006)
Financial	2,990		(53)		126,811		(26,171)		129,801		(26,224)

Utilities	19,263		(1,113)		24,003		(5,684)		43,266		(6,797)
Total corporates	76,452		(3,822)		293,452		(70,205)		369,904		(74,027)
Collateralized debt obligations	—		—		—		—		—		—
Other asset-backed securities	—		—		2,198		—		2,198		—
Total below investment grade securities	76,452		(3,822)		295,650		(70,205)		372,102		(74,027)
Total fixed maturities	$	3,886,032	$	(183,665)	$	8,001,246	$	(1,741,324)	$	11,887,278	$	(1,924,989)

Gross unrealized losses may fluctuate quarter over quarter due to 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, 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:
Industrials	191,573		(3,881)		4,317,827		(530,011)		4,509,400		(533,892)
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)
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:
Industrials	10,745		(199)		145,697		(32,756)		156,442		(32,955)
Financial	25,563		(2,602)		151,190		(39,526)		176,753		(42,128)

Utilities	—		—		19,654		(1,523)		19,654		(1,523)
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 increased from $1.50 billion at December 31, 2023 to $1.92 billion at December 31, 2024, an increase of $426 million. The increase in the gross unrealized losses from the prior year was primarily attributable to the increase 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—Significant Accounting Policies for factors considered in the recording of the allowance for credit losses.


	Year Ended December 31,
	2024		2023
Allowance for credit losses beginning balance	$	7,115	$	—
Additions to allowance for which credit losses were not previously recorded	3,297		72,508
Additions (reductions) to allowance for fixed maturities that previously had an allowance	(17)		(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	—		—
Allowance for credit losses ending balance	$	10,395	$	7,115

As of December 31, 2024, the Company had one fixed maturity security in non-accrual status with an amortized cost of $5.5 million and an allowance of $3.3 million. As of December 31, 2023, there were no 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 2023.

Concentrations of Credit Risk: Globe Life maintains a diversified investment portfolio with limited concentration in any given issuer. At December 31, 2024, the investment portfolio, at fair value, consisted of the following:


Investment grade fixed maturities:
Corporates	68	%
States, municipalities, and political subdivisions	14
U.S. Government direct, guaranteed, and government-sponsored enterprises	2
Other	1

Below investment grade fixed maturities:
Corporates	2



	87

Other
Policy loans, which are secured by the underlying insurance policy values	4
Other investments	9
	100	%

As of December 31, 2024, state and municipal governments represented 14% of invested assets at fair value. Such investments are made throughout the U.S. At December 31, 2024, the state and municipal bond portfolio at fair value was invested in securities issued within the following states: Texas (21%), California (10%), New York (7%), Florida (5%), and Pennsylvania (4%). Otherwise, there was no concentration within any given state greater than 4%.

Corporate fixed maturities represent 71% 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, 2024, based on fair value:


Insurance	18	%
Electric utilities	11
Banks	7
Oil and natural gas pipelines	6
Chemicals	5
Transportation	4
Telecommunications	3
Food	3
Diversified financial services	3
Real estate investment trusts	3

At December 31, 2024, 2% of invested assets at fair value were represented by fixed maturities rated below investment grade. Par value of these investments was $648 million, amortized cost was $529 million, and fair value was $462 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 $955 million at December 31, 2024 and $1.0 billion and $983 million at December 31, 2023.

Mortgage Loans (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at December 31, 2024 and 2023 are as follows:


	2024			2023
	Carrying Value		% of Total	Carrying Value		% of Total
Property type:
Multi-family	$	111,234	28	$	116,299	42
Industrial	110,456		28	57,267		20
Retail	65,612		16	23,925		9
Hospitality	73,931		19	43,897		16
Mixed use	35,960		9	34,749		12
Office	6,539		2	6,734		2

Total recorded investment	403,732		102	282,871		101
Less allowance for credit losses	(7,644)		(2)	(3,672)		(1)
Carrying value, net of allowance for credit losses	$	396,088	100	$	279,199	100


	2024			2023
	Carrying Value		% of Total	Carrying Value		% of Total
Geographic location:
Texas	$	75,131	19	$	45,111	16
Florida	63,308		16	48,233		17
New Jersey	51,744		13	44,574		16
California	48,371		12	54,721		20
Alabama	35,850		9	11,003		4
New York	34,975		9	20,284		7
Other	94,353		24	58,945		21
Total recorded investment	403,732		102	282,871		101
Less allowance for credit losses	(7,644)		(2)	(3,672)		(1)
Carrying value, net of allowance for credit losses	$	396,088	100	$	279,199	100

The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value ("LTV") ratios 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%. LTV ratios that exceed 80% are generally as a result of decreases in the valuation of the underlying property. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss.


	December 31, 2024
	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%	$	88,507	$	64,494	$	196,867	$	349,868	87
70% to 80%	—		—		—		—		—
81% to 90%	—		—		—		—		—
Greater than 90%	16,136		37,728		—		53,864		13
Total	$	104,643	$	102,222	$	196,867	403,732		100
Less allowance for credit losses							(7,644)
Total, net of allowance for credit losses							$	396,088

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

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


	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).

As of December 31, 2024, the Company had 35 loans in the portfolio. During the quarter, the Company evaluated its commercial mortgage loan portfolio on both an individual and pooling basis to determine the allowance for credit losses and determined six loans were collateral dependent or likely to foreclose. The allowance for credit losses on the six loans was determined using the practical expedient which was based on an estimate of fair value of the underlying collateral plus costs to sell the asset. The total principal balance of the six loans was $53.9 million and the allowance for these loans using the practical expedient was $3.9 million as of December 31, 2024. For the year ended December 31, 2024, the allowance for credit losses increased by $4.0 million to $7.6 million.


	Year Ended December 31,
	2024		2023
Allowance for credit losses beginning balance	$	3,672	$	1,789

Provision (reversal) for credit losses	3,972		1,883

Allowance for credit losses ending balance	$	7,644	$	3,672

As of December 31, 2024, there were five commercial mortgage loans in non-accrual status with an outstanding principal balance of $53 million. There was also one delinquent commercial mortgage loan with outstanding interest of $31 thousand. At December 31, 2023 the Company had no commercial mortgage loans in non-accrual status. The Company's unfunded commitment balance to commercial loan borrowers was $22 million as of December 31, 2024.

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


	December 31,
	2024		2023
Investment funds	$	986,766	$	795,583
Company-owned life insurance	202,734		—
Other	46,259		40,295
Total	$	1,235,759	$	835,878

The following table presents additional information about the Company's investment funds as of December 31, 2024 and December 31, 2023 at fair value:


	Fair Value				Unfunded Commitments(2)
Investment Category	2024		2023		2024		Redemption Term/Notice(1)





Commercial mortgage loans	$	566,142	$	411,315	$	189,725	Fully redeemable and non-redeemable with varying terms.
Opportunistic and private credit	202,008		181,410		191,192		Fully redeemable and non-redeemable with varying terms.


Infrastructure	179,627		165,887		—		Fully redeemable and non-redeemable with varying terms.


Other	38,989		36,971		52,479		Non-redeemable with varying terms
Total investment funds	$	986,766	$	795,583	$	433,396

(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.

(2) Unfunded commitments include unfunded balances during the investment period. After an investment period ends, the fund can call capital based on limited and specified reasons. As of December 31, 2024, unfunded commitments totaled $645 million, including funds past the investment period.

The Company had $239 million of capital called during the period from existing investment funds, as compared to $154 million in 2023. The Company's unfunded commitments were $433 million as of December 31, 2024.