Fair Values of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2022

Investments, All Other Investments [Abstract]

Schedule of Financial Instruments at Fair Value Measured on a Recurring Basis

			Significant
	Quoted		Other		Significant
	In Active		Observable		Unobservable		Estimated
	Markets		Inputs		Inputs		Fair
(In thousands)	(Level 1)		(Level 2)		(Level 3)		Value
June 30, 2022
Financial assets
Fixed maturity securities:
Bonds
U.S. government obligations	$	—	$	2,029	$	—	$	2,029
Mortgage-backed securities		—		142,022		—		142,022
Asset-backed securities		—		37,068		—		37,068
Collateralized loan obligations		—		218,326		—		218,326
States and political subdivisions-general obligations		—		203		—		203
States and political subdivisions-special revenue		—		131		—		131
Corporate		—		35,032		—		35,032
Term loans		—		—		448,127		448,127
Redeemable preferred stock		—		11,533		—		11,533
Total fixed maturity securities		—		446,344		448,127		894,471
Mortgage loans on real estate, held for investment		—		—		193,902		193,902
Derivatives		—		7,190		—		7,190
Equity securities		—		11,925		—		11,925
Other invested assets		—		—		71,170		71,170
Investment escrow		—		1,491		—		1,491
Federal Home Loan Bank (FHLB) stock		—		—		500		500
Preferred stock		—		—		22,072		22,072
Notes receivable		—		6,111		—		6,111
Policy loans		—		—		22		22
Total Investments	$	—	$	473,061	$	735,793	$	1,208,854
Financial liabilities
Embedded derivative for equity-indexed contracts	$	—	$	—	$	107,281		107,281
December 31, 2021
Financial assets
Fixed maturity securities:
Bonds
U.S. government obligations	$	—	$	1,882	$	—	$	1,882
Mortgage-backed securities		—		55,280		—		55,280
Asset-backed securities		—		24,951		—		24,951
Corporate		—		274,523		—		274,523
States and political subdivisions-general obligations		—		114		—		114
States and political subdivisions-special revenue		—		5,612		—		5,612
Corporate		—		37,139		—		37,139
Term loans		—		—		267,468		267,468
Trust preferred		—		2,237		—		2,237
Redeemable preferred stock		—		14,090		—		14,090
Total fixed maturity securities		—		415,828		267,468		683,296
Mortgage loans on real estate, held for investment		—		—		183,203		183,203
Derivatives		—		23,022		—		23,022
Equity securities		—		21,869		—		21,869
Other invested assets		—		—		35,293		35,293
Investment escrow		—		3,611		—		3,611
Federal Home Loan Bank (FHLB) stock		—		—		500		500
Preferred stock		—		—		18,686		18,686
Notes receivable		—		5,960		—		5,960
Policy loans		—		—		87		87
Total Investments	$	—	$	470,290	$	505,237	$	975,527
Financial liabilities
Embedded derivative for equity-indexed contracts		—		—	$	123,692	$	123,692

Schedule of Financial Assets and Liabilities at Fair Value

The following disclosure contains the carrying values, estimated fair values and their corresponding placement in the fair value hierarchy for financial assets and financial liabilities as of June 30, 2022, and as of December 31, 2021, respectively:

	June 30, 2022
			Fair Value Measurements Using
			Quoted Prices in
			Active Markets		Significant Other		Significant
			for Identical Assets		Observable		Unobservable
	Carrying		and Liabilities		Inputs		Inputs		Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Assets:
Policy loans	$	22	$	—	$	—	$	22	$	22
Cash equivalents		128,964		—		128,964		—		128,964
Liabilities:
Policyholder deposits (deposit-type contracts)		1,283,660		—		—		1,283,660		1,283,660

	December 31, 2021
			Fair Value Measurements Using
			Quoted Prices in
			Active Markets		Significant Other		Significant
			for Identical Assets		Observable		Unobservable
	Carrying		and Liabilities		Inputs		Inputs		Fair
(In thousands)	Amount		(Level 1)		(Level 2)		(Level 3)		Value
Assets:
Policy loans	$	87	$	—	$	—	$	87	$	87
Cash equivalents		142,013		—		142,013		—		142,013
Liabilities:
Policyholder deposits (deposit-type contracts)		1,075,439		—		—		1,075,439		1,075,439

Schedule of Recurring Basis Using Level Three Inputs

	June 30, 2022
			Total realized and unrealized gains (losses)
	Beginning Balance			Included in Income	Included in AOCI		Net Purchases, Issuances, Sales, and Settlements		Ending Balance
(In thousands)
Assets
Term loans	$	267,468	$	—	$	1,963	$	178,696		448,127
Mortgage loans on real estate,
held for investment		183,203		—		—		10,699		193,902
Federal Home Loan Bank (FHLB) stock		500		—		—		—		500
Other invested assets		35,293		(871)		(4,175)		40,923		71,170
Preferred stock		18,686		2,232		—		1,153		22,071
Total level 3 assets	$	505,150	$	1,361	$	(2,212)	$	231,471	$	735,770
Liabilities
Embedded derivative for equity-indexed contracts		(123,692)		(14,165)		—		30,576		(107,281)
Total level 3 liabilities	$	(123,692)	$	(14,165)	$	—	$	30,576	$	(107,281)

The following table presents a reconciliation of the beginning balance for all investments measured at fair value on a recurring basis using level three inputs during the year ended December 31, 2021:

	December 31, 2021
			Total realized and unrealized gains (losses)
(In thousands)	Beginning Balance			Included in Income	Included in AOCI		Net Purchases, Issuances, Sales, and Settlements		Ending Balance
Assets
Term loans	$	107,254	$	(1,326)	$	225	$	161,315	$	267,468
Mortgage loans on real estate,
held for investment		94,990		—		—		88,213		183,203
Federal Home Loan Bank (FHLB) stock		—		—		—		500		500
Other invested assets		21,897		810		(671)		13,257		35,293
Preferred stock		3,898		—		157		14,631		18,686
Total level 3 assets	$	228,039	$	(516)	$	(289)	$	277,916	$	505,150
Liabilities
Embedded derivative for equity-indexed contracts		(84,501)		(4,169)		—		(35,022)		(123,692)
Total level 3 liabilities	$	(84,501)	$	(4,169)	$	—	$	(35,022)	$	(123,692)

Summary of unobservable inputs for AFS and trading securities

	June 30, 2022
(In millions, except for percentages and multiples)	Fair value	Valuation technique	Unobservable inputs	Minimum	Maximum	Weighted average*	Impact of an increase in the input on fair value
Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives	$107.3	Option Budget Method	Nonperformance risk	0.8%	1.8%	1.3%	Decrease
			Option budget	1.1%	4.1%	2.5%	Increase
			Surrender rate	0.5%	15% (base) 30% (add'l shock)	8.1%	Decrease
Preferred equity	$4.9	Yield analysis	Discount rates	17.5%	19.5%	18.5%	Increase
Detachable warrants	$3.8	Market Approach - GPCM	EBITDA Multiples	9.0x	10.0x	100.0%	Increase
* Weighted by account value

	December 31, 2021
(In millions, except for percentages and multiples)	Fair value	Valuation technique	Unobservable inputs	Minimum	Maximum	Weighted average*	Impact of an increase in the input on fair value
Interest sensitive contract liabilities - fixed indexed annuities embedded derivatives	$123.7	Option Budget Method	Nonperformance risk	0.3%	1.1%	0.6%	Decrease
			Option budget	1.1%	3.4%	2.4%	Increase
			Surrender rate	0.5%	15% (base) 30% (add'l shock)	7.7%	Decrease
Preferred equity	$4.9	Yield analysis	Discount rates	17.5%	19.5%	18.5%	Increase
Detachable warrants	$3.8	Market Approach - GPCM	EBITDA Multiples	9.0x	10.0x	100.0%	Increase
* Weighted by account value