Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 30, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Primerica, Inc. | |
Entity Central Index Key | 0001475922 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | PRI | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 36,226,210 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-34680 | |
Entity Tax Identification Number | 27-1204330 | |
Entity Current Reporting Status | Yes | |
Entity Address, Address Line One | 1 Primerica Parkway | |
Entity Address, City or Town | Duluth | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30099 | |
City Area Code | 770 | |
Local Phone Number | 381-1000 | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $2,822,996 in 2023 and $2,801,415 in 2022) | $ 2,558,626 | $ 2,495,456 |
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,388,411 in 2023 and $1,340,265 in 2022) | 1,460,000 | 1,444,920 |
Short-term investments available-for-sale, at fair value (amortized cost: $70,185 in 2023 and $69,393 in 2022) | 70,187 | 69,406 |
Equity securities, at fair value (historical cost: $29,475 in 2023 and $29,430 in 2022) | 33,984 | 35,404 |
Trading securities, at fair value (cost: $19,033 in 2023 and $4,229 in 2022) | 18,497 | 3,698 |
Policy loans and other invested assets | 50,003 | 48,713 |
Total investments | 4,191,297 | 4,097,597 |
Cash and cash equivalents | 515,090 | 489,240 |
Accrued investment income | 22,153 | 20,885 |
Reinsurance recoverables | 3,179,074 | 3,176,397 |
Deferred policy acquisition costs, net | 3,256,845 | 3,194,029 |
Renewal commissions receivable | 194,409 | 200,043 |
Agent balances, due premiums and other receivables | 259,759 | 254,276 |
Goodwill | 127,707 | 127,707 |
Intangible assets, net (accumulated amortization: $18,375 in 2023 and $15,750 in 2022) | 182,900 | 185,525 |
Income taxes | 106,310 | 97,972 |
Operating lease right-of-use assets | 38,575 | 40,500 |
Other assets | 391,605 | 428,259 |
Separate account assets | 2,329,968 | 2,305,717 |
Total assets | 14,795,692 | 14,618,147 |
Liabilities: | ||
Future policy benefits | 6,561,624 | 6,297,906 |
Unearned and advance premiums | 16,703 | 15,422 |
Policy claims and other benefits payable | 498,483 | 538,250 |
Other policyholders’ funds | 481,561 | 483,769 |
Note payable | 593,106 | 592,905 |
Surplus note | 1,459,565 | 1,444,469 |
Income taxes | 199,394 | 202,462 |
Operating lease liabilities | 43,955 | 45,995 |
Other liabilities | 615,780 | 580,780 |
Payable under securities lending | 74,452 | 100,938 |
Separate account liabilities | 2,329,968 | 2,305,717 |
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||
Total liabilities | 12,874,591 | 12,608,613 |
Equity attributable to Primerica, Inc.: | ||
Common stock ($0.01 par value; authorized 500,000 shares in 2023 and 2022; issued and outstanding 36,407 shares in 2023 and 36,824 shares in 2022) | 364 | 368 |
Retained earnings | 2,151,771 | 2,130,935 |
Accumulated other comprehensive income (loss), net of income tax: | ||
Effect of change in discount rate assumptions on the liability for future policy benefits | (11,679) | 131,295 |
Unrealized foreign currency translation gains (losses) | (11,198) | (12,196) |
Net unrealized investment gains (losses) on available-for-sale securities | (208,157) | (240,868) |
Total permanent stockholders’ equity | 1,921,101 | 2,009,534 |
Total liabilities and temporary and permanent stockholders’ equity | $ 14,795,692 | $ 14,618,147 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed-maturity security held to maturity, fair value | $ 1,388,411 | $ 1,340,265 |
Equity securities, at fair value, historical cost | 29,475 | 29,430 |
Trading securities, amortized cost | 19,033 | 4,229 |
Intangible assets, net | ||
Accumulated amortization | $ 18,375 | $ 15,750 |
Equity attributable to Primerica, Inc.: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 36,407,000 | 36,824,000 |
Common stock, shares outstanding | 36,407,000 | 36,824,000 |
Fixed Maturities | ||
Investments: | ||
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost | $ 2,822,996 | $ 2,801,415 |
Trading securities, amortized cost | 19,033 | 4,229 |
Short-Term Investments | ||
Investments: | ||
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost | $ 70,185 | $ 69,393 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues: | |||
Direct premiums | $ 817,872 | $ 798,666 | |
Ceded premiums | (405,347) | (399,885) | |
Net premiums | 412,525 | 398,781 | |
Commissions and fees | 231,547 | 251,800 | |
Investment income net of investment expenses | 47,500 | 34,420 | |
Interest expense on surplus note | (16,435) | (15,515) | |
Net investment income | 31,065 | 18,905 | |
Realized investment gains (losses) | (985) | 577 | |
Other investment gains (losses) | (3,623) | 174 | |
Investment gains (losses) | (4,608) | 751 | |
Other, net | 19,507 | 20,989 | |
Revenues | 690,036 | 691,226 | |
Benefits and expenses: | |||
Benefits and claims | 168,702 | 168,288 | |
Future policy benefits remeasurement (gain) loss | (508) | (1,272) | $ (500) |
Amortization of deferred policy acquisition costs | 67,358 | 63,223 | |
Sales commissions | 110,874 | 133,924 | |
Insurance expenses | 61,125 | 59,509 | |
Insurance commissions | 8,138 | 7,721 | |
Contract acquisition costs | 14,984 | 20,649 | |
Interest expense | 6,690 | 6,853 | |
Other operating expenses | 89,536 | 86,435 | |
Total benefits and expenses | 526,899 | 545,330 | |
Income before income taxes | 163,137 | 145,896 | |
Income taxes | 38,031 | 33,512 | |
Net income | 125,106 | 112,384 | |
Net income (loss) attributable to noncontrolling interests | (2,655) | ||
Net income attributable to Primerica, Inc. | $ 125,106 | $ 115,039 | |
Earnings per share attributable to common stockholders: | |||
Basic earnings per share | $ 3.39 | $ 2.92 | |
Diluted earnings per share | $ 3.38 | $ 2.91 | |
Weighted-average shares used in computing earnings per share: | |||
Basic | 36,710 | 39,221 | |
Diluted | 36,804 | 39,332 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 125,106 | $ 112,384 |
Unrealized investment gains (losses) on available-for-sale securities: | ||
Change in unrealized holding gains (losses) on available-for-sale securities | 38,549 | (164,937) |
Reclassification adjustment for investment (gains) losses included in net income | 3,137 | (658) |
Effect of change in discount rate assumptions on the liability for future policy benefits | (182,045) | 821,904 |
Foreign currency translation adjustments: | ||
Change in unrealized foreign currency translation gains (losses) | 998 | 3,289 |
Total other comprehensive income (loss) before income taxes | (139,361) | 659,598 |
Income tax expense (benefit) related to items of other comprehensive income (loss) | (30,096) | 140,384 |
Other comprehensive income (loss), net of income taxes | (109,265) | 519,214 |
Total comprehensive income (loss) | 15,841 | 631,598 |
Net income (loss) attributable to noncontrolling interests | (2,655) | |
Comprehensive income (loss) attributable to Primerica, Inc. | $ 15,841 | $ 634,253 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net of Income Tax [Member] | Redeemable Noncontrolling Interests in Consolidated Entities/Temporary Stockholders' Equity [Member] |
Balance, beginning of period at Dec. 31, 2020 | $ 393 | $ 1,682,939 | $ (1,380,912) | |||
Share-based compensation | 31,043 | |||||
Net issuance of common stock | 2 | (2) | ||||
Repurchases of common stock | (1) | (25,817) | ||||
Net income (loss) | 465,808 | |||||
Dividends | (74,636) | |||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 269,895 | |||||
Change in foreign currency translation adjustment | 6,973 | |||||
Change in net unrealized investment gains (losses) during the period | (64,355) | |||||
Acquisition of noncontrolling interest | 8,438 | |||||
Net income (loss) attributable to noncontrolling interests | (1,377) | |||||
Change in noncontrolling interests in consolidated entities, net | 210 | |||||
Redemption of noncontrolling interest in consolidated entities | ||||||
Balance, end of period at Dec. 31, 2021 | $ 911,330 | 394 | 5,224 | 2,074,111 | (1,168,399) | 7,271 |
Share-based compensation | 14,820 | |||||
Net issuance of common stock | 1 | (1) | ||||
Repurchases of common stock | (7) | (20,043) | (83,813) | |||
Net income (loss) | 115,039 | 115,039 | ||||
Dividends | (21,645) | |||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 646,141 | |||||
Change in foreign currency translation adjustment | 3,289 | |||||
Change in net unrealized investment gains (losses) during the period | (130,216) | |||||
Net income (loss) attributable to noncontrolling interests | (2,655) | (2,655) | ||||
Balance, end of period at Mar. 31, 2022 | $ 1,434,895 | 388 | 2,083,692 | (649,185) | 4,616 | |
Dividends declared per share | $ 0.55 | |||||
Balance, beginning of period at Dec. 31, 2021 | $ 911,330 | 394 | 5,224 | 2,074,111 | (1,168,399) | 7,271 |
Share-based compensation | 33,624 | |||||
Net issuance of common stock | 2 | (2) | ||||
Repurchases of common stock | (28) | (41,079) | (320,332) | |||
Net income (loss) | 460,939 | |||||
Dividends | (83,783) | |||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 1,372,022 | |||||
Change in foreign currency translation adjustment | (20,747) | |||||
Change in net unrealized investment gains (losses) during the period | (304,645) | |||||
Acquisition of noncontrolling interest | ||||||
Net income (loss) attributable to noncontrolling interests | (5,038) | |||||
Change in noncontrolling interests in consolidated entities, net | ||||||
Redemption of noncontrolling interest in consolidated entities | 2,233 | (2,233) | ||||
Balance, end of period at Dec. 31, 2022 | 2,009,534 | 368 | 2,130,935 | (121,769) | ||
Share-based compensation | 16,622 | |||||
Net issuance of common stock | 2 | (2) | ||||
Repurchases of common stock | (6) | $ (16,620) | (80,360) | |||
Net income (loss) | 125,106 | 125,106 | ||||
Dividends | (23,910) | |||||
Effect of change in discount rate assumptions on the liability for future policy benefits | (142,974) | |||||
Change in foreign currency translation adjustment | 998 | |||||
Change in net unrealized investment gains (losses) during the period | 32,711 | |||||
Balance, end of period at Mar. 31, 2023 | $ 1,921,101 | $ 364 | $ 2,151,771 | $ (231,034) | ||
Dividends declared per share | $ 0.65 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 125,106 | $ 112,384 | |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||
Change in future policy benefits and other policy liabilities | (9,799) | (161,385) | |
Deferral of policy acquisition costs | (126,640) | (130,881) | |
Amortization of deferred policy acquisition costs | 67,358 | 63,223 | |
Change in income taxes | 18,713 | 14,171 | |
Investment (gains) losses | 4,608 | (751) | |
Accretion and amortization of investments | (309) | 1,356 | |
Depreciation and amortization | 8,547 | 8,688 | |
Change in reinsurance recoverables | 47,766 | 248,511 | |
Change in agent balances, due premiums and other receivables | (5,486) | 2,245 | |
Change in renewal commissions receivable | 5,634 | 18,576 | |
Trading securities sold, matured, or called (acquired), net | (14,808) | 11,273 | |
Share-based compensation | 12,129 | 12,437 | |
Change in other operating assets and liabilities, net | 43,127 | 14,452 | |
Net cash provided by (used in) operating activities | 175,946 | 214,299 | |
Available-for-sale investments sold, matured or called: | |||
Fixed-maturity securities — sold | 5,179 | 1,227 | |
Fixed-maturity securities — matured or called | 80,251 | 96,336 | |
Short-term investments — matured or called | 41,550 | ||
Equity securities — sold | 5 | ||
Equity securities — matured or called | 3,000 | ||
Available-for-sale investments acquired: | |||
Fixed-maturity securities | (108,713) | (250,932) | |
Equity securities — acquired | (47) | (44) | |
Purchases of property and equipment and other investing activities, net | (7,861) | (7,676) | |
Cash collateral received (returned) on loaned securities, net | (26,486) | (1,358) | |
Sales (purchases) of short-term investments using securities lending collateral, net | 26,486 | 1,358 | |
Purchase of business, net of cash acquired | 3,867 | ||
Net cash provided by (used in) investing activities | (31,186) | (112,672) | |
Cash flows from financing activities: | |||
Dividends paid | (23,910) | (21,645) | |
Common stock repurchased | (85,275) | (99,010) | |
Payment on note issued to seller of business | (9,000) | ||
Tax withholdings on share-based compensation | (9,739) | (4,852) | |
Finance leases | (68) | (64) | |
Net cash provided by (used in) financing activities | (118,992) | (134,571) | |
Effect of foreign exchange rate changes on cash | 82 | 222 | |
Change in cash and cash equivalents | 25,850 | (32,722) | |
Cash and cash equivalents, beginning of period | 489,240 | 392,501 | $ 392,501 |
Cash and cash equivalents, end of period | $ 515,090 | $ 359,779 | $ 489,240 |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | (1) Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies Description of Business . Primerica, Inc. (the “Parent Company”), together with its subsidiaries (collectively, “we”, “us” or the “Company”), is a leading provider of financial products to middle-income households in the United States and Canada through a network of independent contractor sales representatives (“independent sales representatives” or “independent sales force”). We assist our clients in meeting their needs for term life insurance, which we underwrite, and mutual funds, annuities, managed investments and other financial products, which we distribute primarily on behalf of third parties. We acquired 80 % of e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”) through our subsidiary, Primerica Health, Inc. (“Primerica Health”) on July 1, 2021 and the remaining 20 % of e-TeleQuote on July 1, 2022 . e-TeleQuote markets Medicare-related insurance products underwritten by third-party health insurance carriers to eligible Medicare participants through its licensed health insurance agents. Our other primary subsidiaries include the following entities: Primerica Financial Services, LLC, a general agency and marketing company; Primerica Life Insurance Company (“Primerica Life”), our principal life insurance company; Primerica Financial Services (Canada) Ltd., a holding company for our Canadian operations, which includes Primerica Life Insurance Company of Canada (“Primerica Life Canada”) and PFSL Investments Canada Ltd.; and PFS Investments Inc., an investment products company and broker-dealer. Primerica Life, domiciled in Tennessee, owns National Benefit Life Insurance Company, a New York insurance company. Peach Re, Inc. (“Peach Re”) and Vidalia Re, Inc. (“Vidalia Re”) are special purpose financial captive insurance companies and wholly owned subsidiaries of Primerica Life. Peach Re and Vidalia Re have each entered into separate coinsurance agreements with Primerica Life whereby Primerica Life has ceded certain level-premium term life insurance policies to Peach Re and Vidalia Re (respectively, the “Peach Re Coinsurance Agreement” and the “Vidalia Re Coinsurance Agreement”). Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles are established primarily by the Financial Accounting Standards Board (“FASB”). The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of March 31, 2023 and December 31, 2022, the statements of income, comprehensive income, and stockholders’ equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Annual Report”). Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs (“DAC”), future policy benefit reserves and corresponding amounts recoverable from reinsurers, renewal commissions receivable, income taxes, and valuation of intangible assets and goodwill. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under U.S. GAAP. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity. New Accounting Principles. In August 2018, the FASB issued Accounting Standards Update No. 2018-12 , Financial Services—Insurance (Topic 944) — Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12” or “LDTI”). The amendments in this update change accounting guidance for insurance companies that issue long-duration contracts, such as term life insurance and segregated funds products. ASU 2018-12 requires companies that issue long-duration insurance contracts to update assumptions used in measuring the liability for future policy benefits (“LFPB”) and DAC, including mortality, disability, and persistency, at least annually instead of locking those assumptions at contract inception and reflecting differences in assumptions and actual performance as the experience occurs. ASU 2018-12 also changes how insurance companies that issue long-duration contracts amortize DAC and determine and update the discount rate assumptions used in measuring both the LFPB and ceded reserves that are part of reinsurance recoverables while increasing the level of financial statement disclosures required. The Company adopted ASU 2018-12 on January 1, 2023 through the modified retrospective method, which applies the provisions of the standard by pivoting off the historical December 31, 2020 liability for future policy benefits (“Pre-transition Reserve”) and DAC balances just prior to January 1, 2021 (the “Transition Date”). Upon adoption, the Company recorded the following adjustments to its consolidated balance sheet as of the Transition Date. • LDTI requires entities to use market observable rates, based on an upper-medium grade fixed income instrument yield, to measure future policy benefits reserves each period. The difference between the LFPB calculated using market observable rates and the Pre-transition Reserve was recognized as part of accumulated other comprehensive income (“AOCI”) at the Transition Date. Given how low market observable rates were at the Transition Date, we recorded a reduction to AOCI of approximately $ 1.5 billion, net of income tax, as of January 1, 2021. Market observable rates have increased since the Transition Date, which resulted in a cumulative decrease to AOCI of $ 11.7 million as of March 31, 2023. • Under LDTI, policies are grouped into cohorts and the net premium ratio for each policy cohort is used to calculate the LFPB. At the Transition Date, the “Net Premium Ratio” is defined as the present value of future benefits, which includes claim settlement expenses less the Pre-transition Reserve divided by the present value of the gross premiums. Expected future benefits and gross premiums use best estimate cash flow assumptions and the locked-in discount rate at the Transition Date is used in the calculation. Under LDTI, a cohort’s Net Premium Ratio is capped at 100 %. The adjustment necessary at the Transition Date to cap the Net Premium Ratio for cohorts at 100 % was approximately $ 23 million, which was recognized as a reduction to retained earnings as of January 1, 2021. The identified impact from capping the Net Premium Ratio at 100 % was solely attributable to a limited amount of older policy year cohorts. All prior period financial information included in the accompanying condensed consolidated financial statements has been restated to reflect the adoption of ASU 2018-12. The Company's restated permanent and temporary stockholders' equity from the date of adoption through December 31, 2022 is as follows: Year ended December 31, 2022 2021 (Unaudited) (Unaudited) (In thousands) Equity attributable to Primerica, Inc./Permanent stockholders’ equity Common stock: Balance, beginning of period $ 394 $ 393 Repurchases of common stock ( 28 ) ( 1 ) Net issuance of common stock 2 2 Balance, end of period 368 394 Paid-in capital: Balance, beginning of period 5,224 - Share-based compensation 33,624 31,043 Net issuance of common stock ( 2 ) ( 2 ) Repurchases of common stock ( 41,079 ) ( 25,817 ) Redemption of noncontrolling interest in consolidated entities 2,233 - Balance, end of period - 5,224 Retained earnings: Balance, beginning of period 2,074,111 1,705,786 Cumulative effect of adoption of new accounting standards - ASU 2018-12, net of income tax - ( 22,847 ) Adjusted balance 2,074,111 1,682,939 Net income 460,939 465,808 Dividends ( 83,783 ) ( 74,636 ) Repurchases of common stock ( 320,332 ) - Balance, end of period 2,130,935 2,074,111 Accumulated other comprehensive income (loss), net of income tax: Balance, beginning of period ( 1,168,399 ) 129,706 Cumulative effect of adoption of new accounting standards - ASU 2018-12 - ( 1,510,618 ) Adjusted balance ( 1,168,399 ) ( 1,380,912 ) Effect of change in discount rate assumptions on the liability for future policy benefits 1,372,022 269,895 Change in foreign currency translation adjustment ( 20,747 ) 6,973 Change in net unrealized investment gains (losses) during the period: ( 304,645 ) ( 64,355 ) Balance, end of period ( 121,769 ) ( 1,168,399 ) Total permanent stockholders’ equity $ 2,009,534 $ 911,330 Redeemable noncontrolling interests in consolidated entities/Temporary stockholders’ equity Balance, beginning of period $ 7,271 $ - Acquisition of noncontrolling interest - 8,438 Net income (loss) attributable to noncontrolling interests ( 5,038 ) ( 1,377 ) Changes in noncontrolling interests in consolidated entities, net - 210 Redemption of noncontrolling interest in consolidated entities ( 2,233 ) Balance, end of period $ - $ 7,271 The impact on the Company's previously reported consolidated balance sheet as of December 31, 2022 is as follows: Consolidated Balance Sheet December 31, 2022 As Previously Reported Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Assets: Investments: Fixed-maturity securities available-for-sale, at fair value (amortized cost: $ 2,801,415 ) $ 2,495,456 $ - $ 2,495,456 Fixed-maturity security held-to-maturity, at amortized cost (fair value: $ 1,340,265 ) 1,444,920 - 1,444,920 Short-term investments available-for-sale, at fair value (amortized cost: $ 69,393 ) 69,406 - 69,406 Equity securities, at fair value (historical cost: $ 29,430 ) 35,404 - 35,404 Trading securities, at fair value (cost: $ 4,229 ) 3,698 - 3,698 Policy loans and other invested assets 48,713 - 48,713 Total investments 4,097,597 - 4,097,597 Cash and cash equivalents 489,240 - 489,240 Accrued investment income 20,885 - 20,885 Reinsurance recoverables 4,015,909 ( 839,512 ) 3,176,397 Deferred policy acquisition costs, net 3,081,886 112,143 3,194,029 Renewal commissions receivable 200,043 - 200,043 Agent balances, due premiums and other receivables 254,276 - 254,276 Goodwill 127,707 - 127,707 Intangible assets 185,525 - 185,525 Deferred income taxes 101,333 ( 3,361 ) 97,972 Operating lease right-of-use assets 40,500 - 40,500 Other assets 428,259 - 428,259 Separate account assets 2,305,717 - 2,305,717 Total assets $ 15,348,877 $ ( 730,730 ) $ 14,618,147 Liabilities and Stockholders’ Equity: Liabilities: Future policy benefits $ 7,390,800 $ ( 1,092,894 ) $ 6,297,906 Unearned and advance premiums 15,422 - 15,422 Policy claims and other benefits payable 538,250 - 538,250 Other policyholders’ funds 483,769 - 483,769 Note payable 592,905 - 592,905 Surplus note 1,444,469 - 1,444,469 Income tax payable 36,876 - 36,876 Deferred income taxes 91,457 74,129 165,586 Operating lease liabilities 45,995 - 45,995 Other liabilities 580,780 - 580,780 Payable under securities lending 100,938 - 100,938 Separate account liabilities 2,305,717 - 2,305,717 Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) Total liabilities 13,627,378 ( 1,018,765 ) 12,608,613 Temporary Stockholders’ Equity Redeemable noncontrolling interests in consolidated entities - - - Permanent Stockholders’ Equity Equity attributable to Primerica, Inc.: Common stock ($ 0.01 par value; authorized 500,000 shares; issued and outstanding 36,824 ) 368 - 368 Paid-in capital - - - Retained earnings 1,973,403 157,532 2,130,935 Accumulated other comprehensive income (loss), net of income tax: Effect of change in discount rate assumptions on the liability for future policy benefits - 131,295 131,295 Unrealized foreign currency translation gains (losses) ( 11,404 ) ( 792 ) ( 12,196 ) Net unrealized investment gains (losses) on available-for-sale securities ( 240,868 ) - ( 240,868 ) Total permanent stockholders’ equity 1,721,499 288,035 2,009,534 Total liabilities and temporary and permanent stockholders’ equity $ 15,348,877 $ ( 730,730 ) $ 14,618,147 The impact on the Company's previously reported condensed consolidated statement of income for the three months ended March 31, 2022 is as follows: Condensed Consolidated Statement of Income Three months ended March 31, 2022 As Previously Reported (Unaudited) Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Revenues: Direct premiums $ 798,666 $ - $ 798,666 Ceded premiums ( 399,885 ) - ( 399,885 ) Net premiums 398,781 - 398,781 Commissions and fees 251,800 - 251,800 Investment income net of investment expenses 34,420 - 34,420 Interest expense on surplus note ( 15,515 ) - ( 15,515 ) Net investment income 18,905 - 18,905 Realized investment gains (losses) 577 - 577 Other investment gains (losses) 174 - 174 Investment gains (losses) 751 - 751 Other, net 20,989 - 20,989 Total revenues 691,226 - 691,226 Benefits and expenses: Benefits and claims 187,069 ( 18,781 ) 168,288 Future policy benefits remeasurement (gain) loss - ( 1,272 ) ( 1,272 ) Amortization of deferred policy acquisition costs 86,063 ( 22,840 ) 63,223 Sales commissions 133,924 - 133,924 Insurance expenses 59,509 - 59,509 Insurance commissions 7,721 - 7,721 Contract acquisition costs 20,649 - 20,649 Interest expense 6,853 - 6,853 Other operating expenses 86,435 - 86,435 Total benefits and expenses 588,223 ( 42,893 ) 545,330 Income before income taxes 103,003 42,893 145,896 Income taxes 24,239 9,273 33,512 Net income 78,764 33,620 112,384 Net income (loss) attributable to noncontrolling interests ( 2,655 ) - ( 2,655 ) Net income attributable to Primerica, Inc. $ 81,419 $ 33,620 $ 115,039 Earnings per share attributable to common stockholders: Basic earnings per share $ 2.07 $ 0.85 $ 2.92 Diluted earnings per share $ 2.06 $ 0.85 $ 2.91 Weighted-average shares used in computing earnings Basic 39,221 - 39,221 Diluted 39,332 - 39,332 Transition Impact on the Liability for Future Policy Benefits. The Company adopted ASU 2018-12 using the modified retrospective transition method. As part of the transition disclosures ASU 2018-12 requires a reconciliation of the adoption impacts to the Company’s LFPB, separated between the changes in the present value of expected net premiums and the present value of expected future policy benefits as of the Transition Date. Theses balances are presented before reinsurance and income taxes for the Term Life Insurance segment, which makes up the substantial portion of the Company's long-duration insurance contract liabilities. Transition Impact at January 1, 2021 (In thousands) Present Value of Expected Premiums Term Life Balance at December 31, 2020 $ 10,867,358 Impact to retained earnings from capping Transition Date net premium ratio ( 137,112 ) Balance at original discount rate 10,730,246 Effect of changes in discount rate assumptions 2,774,082 Balance at January 1, 2021 $ 13,504,328 Present Value of Expected Future Policy Benefits Balance at December 31, 2020 $ 17,445,700 Effect of changes in discount rate assumptions 5,624,494 Balance at January 1, 2021 $ 23,070,194 Recently-issued accounting guidance not discussed above is not applicable, is not material to our unaudited condensed consolidated financial statements, or did not or is not expected to have a material impact on our business. Changes to Accounting Policies . All significant accounting policies remain unchanged from the 2022 Annual Report except for the following: DAC. We defer incremental direct costs of successful contract acquisitions that result from and are essential to the contract transaction(s) and that would not have been incurred had the contract transaction(s) not occurred. These deferred policy acquisition costs mainly include commissions, underwriting costs and certain other policy issuance expenses associated with successful contract acquisitions. All other acquisition-related costs, including unsuccessful acquisition and renewal efforts, are charged to expense as incurred. Also, administrative costs, rent, depreciation, occupancy, equipment, and all other general overhead costs are considered indirect costs and are charged to expense as incurred. DAC for term life insurance policies is amortized on a constant-level basis over the expected term of the contracts using face amount as the unit of measure. Contracts are grouped by cohorts consistent with the grouping used in estimating the LFPB. The cohorts are defined by the legal entity that issued the policy and the year the policy was issued. Assumptions of face amounts used to amortize DAC for term life insurance policies, including persistency and mortality, are consistent with the assumptions used in estimating the LFPB. DAC for Canadian segregated funds is amortized on a constant-level basis over the expected term of the contracts using policy count as the unit of measure. Contracts are grouped by cohorts based on the issue year of the policy. Interest is not accrued on unamortized DAC balances and DAC is not subject to impairment testing. Separate Accounts. The separate accounts are primarily comprised of contracts issued by the Company through its subsidiary, Primerica Life Canada, pursuant to the Insurance Companies Act (Canada). The Insurance Companies Act authorizes Primerica Life Canada to establish the separate accounts. The separate accounts are represented by individual variable insurance contracts. Purchasers of variable insurance contracts issued by Primerica Life Canada have a direct claim to the benefits of the contract that entitles the holder to units in one or more investment funds (the “Funds”) maintained by Primerica Life Canada. The Funds invest in assets that are held for the benefit of the owners of the contracts. The Funds’ assets are administered by Primerica Life Canada and are held separate and apart from the general assets of the Company. The liabilities reflect the variable insurance contract holders’ interests in the Funds’ net assets based upon actual investment performance of the respective Funds. These Funds primarily consist of a series of branded investment funds known as the Asset Builder Funds, a registered retirement fund known as the Strategic Retirement Income Fund (“SRIF”), and a money market fund known as the Cash Management Fund. The principal investment objective of the Asset Builder Funds is to achieve long-term growth while preserving capital. The principal objective of the SRIF is to provide a stream of investment income during retirement plus the opportunity for modest capital appreciation. The Asset Builder Funds and the SRIF use diversified portfolios of publicly-traded Canadian stocks, investment-grade corporate bonds, Government of Canada bonds, and foreign equity investments to achieve their objectives. The Cash Management Fund invests in government guaranteed short-term bonds and short-term commercial and bank papers, with the principal investment objective being the provision of interest income while maintaining liquidity and preserving capital. Under these contract offerings, benefit payments to contract holders or their designated beneficiaries are only due upon death of the annuitant or upon reaching a specific maturity date. Benefit payments are based on the value of the contract holder’s units in the portfolio at the payment date, but are guaranteed to be no less than 75 % of the contract holder’s contribution, adjusted for withdrawals. Account values are not guaranteed for withdrawn units if contract holders make withdrawals prior to the maturity dates. Maturity dates for contracts investing in the Asset Builder Funds and Cash Management Fund vary by contract and range from 10 years from the contract issuance date to December 31, 2070 . Contracts investing in the SRIF mature when the policyholder reaches age 100, which is a minimum of 20 year s after issue . The SRIF is designed to provide periodic retirement income payments and as such, regular withdrawals, subject to legislated minimums, are anticipated. The cumulative effects of the periodic withdrawals are expected to substantially reduce both account and minimum guaranteed values prior to maturity. Both the asset and the liability for the separate accounts reflect the net value of the underlying assets in the portfolio as of the reporting date. Primerica Life Canada’s exposure to losses under the guarantee at the time of account maturity is limited to contract holder accounts that have declined in value more than 25 %, adjusted for withdrawals since the contribution date, prior to maturity. As maturity dates are of a long-term nature, the likelihood that guarantee payments will be required at any given point is very small. Additionally, the portfolios consist of a very large number of individual contracts, further spreading the risk related to the guarantee. The length of the contract terms provides significant opportunity for the underlying portfolios to recover any short-term losses prior to maturity or the death of the contract holder. The Company has estimated the fair value associated with the market risk benefits provided by these limited guarantees to be immaterial. Furthermore, the Funds investment allocations are aligned with the maturity risks of the related contracts and include investments in Government Strip Bonds and floating-rate notes. Future Policy Benefits. The LFPB on traditional life insurance products is established for future policy benefits, which includes death benefits, waiver of premium benefits and claim settlement expenses. The LFPB is calculated as the present value of expected future benefits less the present value of expected future net premiums receivable under the contracts. Net premiums are defined as the portion of the gross premiums received from policyholders that are needed to pay for all benefits. The assumptions underlying the LFPB include mortality, persistency, disability rates, and other assumptions that reflect our best estimate based on our historical experience and modified, as necessary, to reflect non-recurring and/or anticipated trends. The LFPB is estimated by grouping insurance policies into cohorts. Policy cohorts for the Term Life Insurance segment are based on the legal entity that issued the policy and the year the policy was issued. The cash flows and assumptions underlying the LFPB are unlocked each quarter to reflect differences between actual and expected experience. In general, assumption changes, to the extent necessary, are expected to only occur during the third quarter when we update our experience studies. However, they may occur at any time based on emerging experience. The impact of unlocking will be partly reflected in the current period and partly spread to future periods based on the remaining duration of the impacted cohort(s). The catch-up is retroactive back to the later of the Transition Date or issue date, after reinsurance recoverables and is recognized as a remeasurement gain or loss as a separate component of benefits and claims expense in the consolidated statements of income. The ceded reserve balances included in reinsurance recoverables are calculated in the same manner as the LFPB by cohort and apply best estimate assumptions and quarterly unlocking. The Company uses discount rates applied by country to align with local currency cash flows. Discount rates consist of yield curves that are developed using Bloomberg’s Evaluated Pricing Product (BVAL) based on senior unsecured fixed rate bonds ratings of A+, A or A-. The discount rate assumption is updated quarterly and the impact of remeasuring the net LFPB, after reinsurance recoverables from changes in the locked-in discount rate assumption is reflected in other comprehensive income in the consolidated statements of comprehensive income. The LFPB we establish are necessarily based on estimates, assumptions and our analysis of historical experience. Our results depend upon the extent to which our actual experience is consistent with the assumptions we use in determining the LFPB. The assumptions and estimates underlying the LFPB require significant judgment and, therefore, are inherently uncertain. |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | (2) Segment and Geographical Information Segments. We have three primary operating segments — Term Life Insurance, Investment and Savings Products, and Senior Health. We also have a Corporate and Other Distributed Products segment. Notable information included in profit or loss by segment was as follows: Three months ended March 31, 2023 2022 (In thousands) Revenues: Term life insurance segment $ 421,069 $ 406,983 Investment and savings products segment 210,202 241,039 Senior health segment 18,710 5,831 Corporate and other distributed products segment 40,055 37,373 Total revenues $ 690,036 $ 691,226 Net investment income: Term life insurance segment $ - $ - Investment and savings products segment - - Senior health segment - - Corporate and other distributed products segment 31,065 18,905 Total net investment income $ 31,065 $ 18,905 Amortization of DAC: Term life insurance segment $ 65,503 $ 61,369 Investment and savings products segment 1,493 1,446 Senior health segment - - Corporate and other distributed products segment 362 408 Total amortization of DAC $ 67,358 $ 63,223 Non-cash share-based compensation expense: Term life insurance segment $ 1,850 $ 2,125 Investment and savings products segment 993 1,204 Senior health segment 160 - Corporate and other distributed products segment 9,071 9,108 Total non-cash share-based compensation expense $ 12,074 $ 12,437 Income (loss) before income taxes: Term life insurance segment $ 126,736 $ 118,576 Investment and savings products segment 56,106 67,039 Senior health segment ( 3,762 ) ( 23,085 ) Corporate and other distributed products segment ( 15,943 ) ( 16,634 ) Total income (loss) before income taxes $ 163,137 $ 145,896 Total assets by segment were as follows: March 31, 2023 December 31, 2022 (In thousands) Assets: Term life insurance segment $ 6,506,068 $ 6,433,880 Investment and savings products segment (1) 2,454,810 2,424,256 Senior health segment 429,884 431,993 Corporate and other distributed products segment 5,404,930 5,328,018 Total assets $ 14,795,692 $ 14,618,147 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 124.9 million and $ 118.5 million as of March 31, 2023 and December 31, 2022 , respectively. Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in other assets in our unaudited condensed consolidated balance sheets and condensed consolidated statements of income, were as follows: Three months ended March 31, 2023 2022 (In thousands) Revenues by country: United States $ 603,850 $ 586,153 Canada 86,186 105,073 Total revenues $ 690,036 $ 691,226 March 31, 2023 December 31, 2022 (In thousands) Long-lived assets by country: United States $ 48,835 $ 49,637 Canada 2,689 2,803 Other 215 217 Total long-lived assets $ 51,739 $ 52,657 |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (3) Investments Available-for-sale Securities. The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows: March 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 9,976 $ 26 $ ( 571 ) $ 9,431 Foreign government 157,424 1,234 ( 9,053 ) 149,605 States and political subdivisions 138,835 239 ( 15,799 ) 123,275 Corporates 1,701,254 5,056 ( 148,291 ) 1,558,019 Residential mortgage-backed securities 476,070 456 ( 67,980 ) 408,546 Commercial mortgage-backed securities 142,789 43 ( 15,114 ) 127,718 Other asset-backed securities 196,648 410 ( 15,026 ) 182,032 Total fixed-maturity securities 2,822,996 7,464 ( 271,834 ) 2,558,626 Short-term investments 70,185 7 ( 5 ) 70,187 Total fixed-maturity and short-term investments $ 2,893,181 $ 7,471 $ ( 271,839 ) $ 2,628,813 December 31, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 31,217 $ 18 $ ( 767 ) $ 30,468 Foreign government 163,725 780 ( 11,590 ) 152,915 States and political subdivisions 142,189 112 ( 20,056 ) 122,245 Corporates 1,665,962 2,439 ( 171,552 ) 1,496,849 Residential mortgage-backed securities 473,309 370 ( 71,949 ) 401,730 Commercial mortgage-backed securities 139,306 3 ( 16,342 ) 122,967 Other asset-backed securities 185,707 108 ( 17,533 ) 168,282 Total fixed-maturity securities 2,801,415 3,830 ( 309,789 ) 2,495,456 Short-term investments 69,393 20 ( 7 ) 69,406 Total fixed-maturity and short-term investments $ 2,870,808 $ 3,850 $ ( 309,796 ) $ 2,564,862 All of our available-for-sale mortgage- and asset-backed securities represent variable interests in variable interest entities (“VIEs”). We are not the primary beneficiary of these VIEs because we do not have the power to direct the activities that most significantly impact the entities’ economic performance. The maximum exposure to loss as a result of our involvement in these VIEs equals the carrying value of the securities. The scheduled maturity distribution of the available-for-sale (“AFS”) fixed-maturity portfolio as of March 31, 2023 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 154,148 $ 152,676 Due after one year through five years 770,897 733,708 Due after five years through 10 years 783,681 697,131 Due after 10 years 298,763 256,815 2,007,489 1,840,330 Mortgage- and asset-backed securities 815,507 718,296 Total AFS fixed-maturity securities $ 2,822,996 $ 2,558,626 Expected maturities may differ from scheduled contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. Trading Securities. The cost and fair value of the securities classified as trading securities were as follows: March 31, 2023 December 31, 2022 Cost Fair value Cost Fair value (In thousands) Fixed-maturity securities $ 19,033 $ 18,497 $ 4,229 $ 3,698 Held-to-maturity Security. Concurrent with the execution of the Vidalia Re Coinsurance Agreement, Vidalia Re entered into a Surplus Note Purchase Agreement (the “Surplus Note Purchase Agreement”) with Hannover Life Reassurance Company of America and certain of its affiliates (collectively, “Hannover Re”) and a newly formed limited liability company (the “LLC”) owned by a third- party service provider. Under the Surplus Note Purchase Agreement, Vidalia Re issued a surplus note (the “Surplus Note”) to the LLC in exchange for a credit enhanced note from the LLC with an equal principal amount (the “LLC Note”). The principal amount of both the LLC Note and the Surplus Note will fluctuate over time to coincide with the amount of reserves contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2030 and bear interest at an annual interest rate of 4.50 % . The LLC Note is guaranteed by Hannover Re through a credit enhancement feature in exchange for a fee, which is reflected in interest expense on our unaudited condensed consolidated statements of income. The LLC is a VIE as its owner does not have an equity investment at risk that is sufficient to permit the LLC to finance its activities without Vidalia Re or Hannover Re. The Parent Company, Primerica Life, and Vidalia Re share the power to direct the activities of the LLC with Hannover Re, but do not have the obligation to absorb losses or the right to receive any residual returns related to the LLC’s primary risks or sources of variability. Through the credit enhancement feature, Hannover Re is the ultimate risk taker in this transaction and bears the obligation to absorb the LLC’s losses in the event of a Surplus Note default in exchange for the fee. Accordingly, the Company is not the primary beneficiary of the LLC and does not consolidate the LLC within its unaudited condensed consolidated financial statements. See Note 5 (Reinsurance) for Hannover Re’s financial strength rating. The LLC Note is classified as a fixed-maturity held-to-maturity security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of March 31, 2023, the LLC Note had an estimated unrealized holding loss of $ 71.6 million based on its amortized cost and estimated fair value. The estimated fair value of the LLC Note is expected to be at least equal to the estimated fair value of the offsetting Surplus Note. See Note 15 (Debt) for more information on the Surplus Note. As of March 31, 2023 , no credit losses have been recognized on the LLC Note. Investments on Deposit with Governmental Authorities. As required by law, we have investments on deposit with governmental authorities and banks for the protection of policyholders. The fair values of investments on deposit were $ 7.1 million and $ 7.1 million as of March 31, 2023 and December 31, 2022, respectively. Securities Lending Transactions. We participate in securities lending transactions with broker-dealers and other financial institutions to increase investment income with minimal risk. We require minimum collateral on securities loaned equal to 102 % of the fair value of the loaned securities. We accept collateral in the form of securities, which we are not able to sell or encumber, and to the extent the collateral declines in value below 100 %, we require additional collateral from the borrower. Any securities collateral received is not reflected on our unaudited condensed consolidated balance sheets. We also accept collateral in the form of cash, all of which we reinvest. For loans involving unrestricted cash collateral, the collateral is reported as an asset with a corresponding liability representing our obligation to return the collateral. We continue to carry the loaned securities as invested assets on our unaudited condensed consolidated balance sheets during the terms of the loans, and we do not report them as sales. Cash collateral received and reinvested was $ 74.5 million and $ 100.9 million as of March 31, 2023 and December 31, 2022, respectively. Investment Income. The components of net investment income were as follows: Three months ended March 31, 2023 2022 (In thousands) Fixed-maturity securities (available-for-sale) $ 25,806 $ 20,889 Fixed-maturity security (held-to-maturity) 16,435 15,515 Equity securities 380 387 Policy loans and other invested assets ( 71 ) 102 Cash and cash equivalents 5,128 125 Total return on deposit asset underlying 10% coinsurance agreement (1) 2,049 ( 1,510 ) Gross investment income 49,727 35,508 Investment expenses ( 2,227 ) ( 1,088 ) Investment income net of investment expenses 47,500 34,420 Interest expense on surplus note ( 16,435 ) ( 15,515 ) Net investment income $ 31,065 $ 18,905 (1) Includes ($ 0.3 ) million and $( 2.1 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three months ended March 31, 2023 and 2022, respectively. The components of investment gains (losses), as well as details on gross realized investment gains (losses) and other investment gains (losses) were as follows: Three months ended March 31, 2023 2022 (In thousands) Realized investment gains (losses): Gross gains from sales of available-for-sale securities fixed maturity securities $ 49 $ 602 Gross losses from sales of available-for-sale fixed maturity securities ( 1,034 ) ( 25 ) Net realized investment gains (losses): ( 985 ) 577 Other investment gains (losses): Credit losses impairment of available-for-sale securities ( 2,160 ) 81 Market gains (losses) recognized in net income during the period on equity securities ( 1,475 ) 115 Gains (losses) from bifurcated options 8 - Gains (losses) on trading securities 4 ( 22 ) Other investment gains (losses): ( 3,623 ) 174 Investment gains (losses) $ ( 4,608 ) $ 751 The proceeds from sales or other redemptions of available-for-sale securities were as follows: Three months ended March 31, 2023 2022 (In thousands) Proceeds from sales or other redemptions $ 85,430 $ 139,113 Accrued Interest. Accrued interest is recorded in accordance with the original interest schedule of the underlying security. In the event of default, the Company’s policy is to no longer accrue interest on these securities and any remaining accrued interest will be written off. As a result, the Company has made the policy election to not record an allowance for credit losses on accrued interest. Credit Losses for Available-for-sale Securities. The following table summarizes all available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2023, aggregated by major security type and length of time such securities have continuously been in an unrealized loss position: March 31, 2023 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 3,920 $ ( 99 ) $ 5,173 $ ( 472 ) Foreign government 30,377 ( 399 ) 91,887 ( 8,654 ) States and political subdivisions 10,178 ( 277 ) 102,623 ( 15,522 ) Corporates 457,448 ( 12,678 ) 926,057 ( 135,613 ) Residential mortgage-backed securities 40,398 ( 3,342 ) 348,490 ( 64,638 ) Commercial mortgage-backed securities 27,240 ( 884 ) 95,244 ( 14,230 ) Other asset-backed securities 29,901 ( 1,243 ) 117,076 ( 13,783 ) Total fixed-maturity securities 599,462 ( 18,922 ) 1,686,550 ( 252,912 ) Short-term investments: U.S. government and agencies 15,835 ( 4 ) - - Foreign government 1,756 ( 1 ) - - Total short-term investments 17,591 ( 5 ) - - Total fixed-maturity securities and short-term investments $ 617,053 $ ( 18,927 ) $ 1,686,550 $ ( 252,912 ) December 31, 2022 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 4,927 $ ( 204 ) $ 25,209 $ ( 563 ) Foreign government 97,094 ( 4,430 ) 38,085 ( 7,160 ) States and political subdivisions 71,131 ( 10,666 ) 44,324 ( 9,390 ) Corporates 974,931 ( 69,726 ) 452,541 ( 101,826 ) Residential mortgage-backed securities 187,158 ( 22,171 ) 201,595 ( 49,778 ) Commercial mortgage-backed securities 65,165 ( 5,069 ) 56,799 ( 11,273 ) Other asset-backed securities 81,907 ( 5,807 ) 72,977 ( 11,726 ) Total fixed-maturity securities 1,482,313 ( 118,073 ) 891,530 ( 191,716 ) Short-term investments: U.S. government and agencies 28,379 ( 5 ) - - Foreign government 1,744 ( 2 ) - - Total short-term investments 30,123 ( 7 ) - - Total fixed-maturity securities and short-term investments $ 1,512,436 $ ( 118,080 ) $ 891,530 $ ( 191,716 ) The amortized cost of available-for-sale fixed-maturity securities with a cost basis in excess of their fair values were $ 2,575.4 million and $ 2,713.8 million as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, we did not recognize credit losses in the unaudited condensed consolidated statements of income on available-for-sale securities with unrealized losses that were due to interest rate sensitivity and changes in credit spreads. We believe that fluctuations caused by movement in interest rates and credit spreads generally have little bearing on the recoverability of our investments. We recognized credit losses in the unaudited condensed consolidated statements of income on available-for-sale securities that are in an unrealized loss position that we have the intent to sell. For those that remain in an unrealized loss position we have the ability to hold these investments until maturity or a market price recovery, and we have no present intention to dispose them. The sharp increase in interest rates over the last 12 months was the primary driver of the increase in unrealized losses on available-for-sale securities. For the three months ended March 31, 2023 and 2022, we recognized $ 2.2 million and $( 0.1 ) million, respectively, for credit (gains) losses on available-for-sale securities in the unaudited condensed consolidated statements of income. We recognized credit losses on securities due to: (i) our intent to sell them; (ii) adverse credit events indicating that we will not receive the security’s contractual cash flows when contractually due, such as news of an impending filing for bankruptcy; (iii) analyses of the issuer’s most recent financial statements or other information indicating that significant liquidity deficiencies, significant losses and large declines in capitalization exist; and (iv) analyses of rating agency information for issuances with severe ratings downgrades indicating a significant increase in the possibility of default. The rollforward of the allowance for credit losses on available-for-sale securities was as follows: Three months ended March 31, 2023 2022 (In thousands) Allowance for credit losses, beginning of period $ - $ 816 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded - - Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period - ( 81 ) Write-offs charged against the allowance, if any - - Allowance for credit losses, end of period $ - $ 735 Derivatives. We carry a deferred loss related to closed forward contracts, which were settled several years ago, that were used to mitigate our exposure to foreign currency exchange rates that resulted from the net investment in our Canadian operations. The amount of deferred loss included in accumulated other comprehensive income was $ 26.4 million as of March 31, 2023 and December 31, 2022 . These deferred losses will not be recognized until such time as we sell or substantially liquidate our Canadian operations. We have no such intention. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | (4) Fair Value of Financial Instruments Fair value is the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Invested assets recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We classify and disclose all invested assets carried at fair value in one of the following three levels: • Level 1. Quoted prices for identical instruments in active markets. Level 1 consists of financial instruments whose value is based on quoted market prices in active markets, such as cash, cash equivalents in money market funds, exchange-traded common stocks and actively traded mutual fund investments; • Level 2. Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 2 includes those financial instruments that are valued using industry-standard pricing methodologies, models or other valuation methodologies. Various inputs are considered in deriving the fair value of the underlying financial instrument, including interest rate and yield curves, credit spread, and foreign exchange rates. All significant inputs are observable, or derived from observable information in the marketplace or are supported by observable levels at which transactions are executed in the marketplace. Financial instruments in this category primarily include: cash equivalents and short-term investments in U.S. treasury securities, certain public and private corporate fixed-maturity and equity securities; government or agency securities; and certain mortgage- and asset-backed securities; and • Level 3. Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Level 3 consists of financial instruments whose fair value is estimated based on industry-standard pricing methodologies and models using significant inputs not based on, nor corroborated by, readily available market information. Valuations for this category primarily consist of non-binding broker quotes. Financial instruments in this category primarily include less liquid mortgage- and asset-backed securities and equity securities. As of each reporting period, all assets and liabilities recorded at fair value are classified in their entirety based on the lowest level of input (Level 3 being the lowest in the hierarchy) that is significant to the fair value measurement. Significant levels of estimation and judgment are required to determine the fair value of certain of our investments. The factors influencing these estimations and judgments are subject to change in subsequent reporting periods. The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows: March 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 9,431 $ - $ 9,431 Foreign government - 149,605 - 149,605 States and political subdivisions - 123,275 - 123,275 Corporates 3,960 1,554,059 - 1,558,019 Mortgage- and asset-backed securities: Residential mortgage-backed securities - 408,546 - 408,546 Commercial mortgage-backed securities - 127,718 - 127,718 Other asset-backed securities - 179,716 2,316 182,032 Total available-for-sale fixed-maturity securities 3,960 2,552,350 2,316 2,558,626 Short-term investments - 70,187 - 70,187 Total available-for-sale securities 3,960 2,622,537 2,316 2,628,813 Equity securities 31,305 986 1,693 33,984 Trading securities - 18,497 - 18,497 Cash and cash equivalents 494,093 20,997 - 515,090 Separate accounts - 2,329,968 - 2,329,968 Total fair value assets $ 529,358 $ 4,992,985 $ 4,009 $ 5,526,352 Fair value liabilities: Separate accounts $ - $ 2,329,968 $ - $ 2,329,968 Total fair value liabilities $ - $ 2,329,968 $ - $ 2,329,968 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 30,468 $ - $ 30,468 Foreign government - 152,915 - 152,915 States and political subdivisions - 122,245 - 122,245 Corporates 3,586 1,493,263 - 1,496,849 Mortgage-and asset-backed securities: Residential mortgage-backed securities - 401,730 - 401,730 Commercial mortgage-backed securities - 122,967 - 122,967 Other asset-backed securities - 168,282 - 168,282 Total available-for-sale fixed-maturity securities 3,586 2,491,870 - 2,495,456 Short-term investments - 69,406 - 69,406 Total available-for-sale securities 3,586 2,561,276 - 2,564,862 Equity securities 32,727 967 1,710 35,404 Trading securities - 3,698 - 3,698 Cash and cash equivalents 489,240 - - 489,240 Separate accounts - 2,305,717 - 2,305,717 Total fair value assets $ 525,553 $ 4,871,658 $ 1,710 $ 5,398,921 Fair value liabilities: Separate accounts $ - $ 2,305,717 $ - $ 2,305,717 Total fair value liabilities $ - $ 2,305,717 $ - $ 2,305,717 In estimating fair value of our investments, we use a third-party pricing service for approximately all of our securities that are measured at fair value on a recurring basis. The remaining securities are primarily thinly-traded securities, such as private placements, and are valued using models based on observable inputs on public corporate spreads having similar characteristics (e.g., sector, average life and quality rating), liquidity and yield based on quality rating, average life and U.S. Treasury yields. All observable data inputs are corroborated by independent third-party data. We also corroborate pricing information provided by our third-party pricing service by performing a review of selected securities. Our review activities include: obtaining detailed information about the assumptions, inputs and methodologies used in pricing the security; documenting this information; and corroborating it by comparison to independently obtained prices and/or independently developed pricing methodologies. Furthermore, we perform internal reasonableness assessments on fair value determinations within our portfolio throughout the year and as of year-end, including pricing variance analyses and comparisons to alternative pricing sources and benchmark returns. If a fair value appears unusual relative to these assessments, we will re-examine the inputs and may challenge a fair value assessment made by the pricing service. If there is a known pricing error, we will request a reassessment by the pricing service. If the pricing service is unable to perform the reassessment on a timely basis, we will determine the appropriate price by requesting a reassessment from an alternative pricing service or other qualified source as necessary. We do not adjust quotes or prices except in a rare circumstance to resolve a known error. Because many fixed-maturity securities do not trade on a daily basis, third-party pricing services generally determine fair value using industry-standard methodologies, which vary by asset class. For corporates, governments, and agency securities, these methodologies include developing prices by incorporating available market information such as U.S. Treasury curves, benchmarking of similar securities including new issues, sector groupings, quotes from market participants and matrix pricing. Observable information is compiled and integrates relevant credit information, perceived market movements and sector news. Additionally, security prices are periodically back-tested to validate and/or refine models as conditions warrant. Market indicators and industry and economic events are also monitored as triggers to obtain additional data. For certain structured securities (such as mortgage- and asset-backed securities) with limited trading activity, third-party pricing services generally use industry-standard pricing methodologies that incorporate market information, such as index prices or discounting expected future cash flows based on underlying collateral, and quotes from market participants, to estimate fair value. If one or more of these input measures are not deemed observable for a particular security, the security will be classified as Level 3 in the fair value hierarchy. Where specific market information is unavailable for certain securities, pricing models produce estimates of fair value primarily using Level 2 inputs along with certain Level 3 inputs. These models include matrix pricing. The pricing matrix uses current U.S. Treasury rates and credit spreads received from third-party sources to estimate fair value. The credit spreads incorporate the issuer’s industry- or issuer-specific credit characteristics and the security’s time to maturity, if warranted. Remaining unpriced securities are valued using an estimate of fair value based on indicative market prices that include significant unobservable inputs not based on, nor corroborated by, market information, including the utilization of non-binding broker quotes. The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: Three months ended March 31, 2023 2022 (In thousands) Level 3 assets, beginning of period $ 1,710 $ 3,596 Net unrealized gains (losses) included in other comprehensive income - ( 2 ) Realized gains (losses) and accretion (amortization) recognized in earnings ( 17 ) ( 207 ) Purchases 2,316 5,903 Sales - - Settlements - - Transfers into Level 3 - 1,399 Transfers out of Level 3 - - Level 3 assets, end of period $ 4,009 $ 10,689 We obtain independent pricing quotes based on observable inputs as of the end of the reporting period for all securities in Level 2. Those inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, market bids/offers, quoted prices for similar instruments in markets that are not active, and other relevant data. We monitor these inputs for market indicators, industry and economic events. There were no material transfers between Level 1 and Level 3 during the three months ended March 31, 2023 and 2022. The carrying values and estimated fair values of our financial instruments were as follows: March 31, 2023 December 31, 2022 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 2,558,626 $ 2,558,626 $ 2,495,456 $ 2,495,456 Fixed-maturity security (held-to-maturity) (3) 1,460,000 1,388,411 1,444,920 1,340,265 Short-term investments (available-for-sale) 70,187 70,187 69,406 69,406 Equity securities 33,984 33,984 35,404 35,404 Trading securities 18,497 18,497 3,698 3,698 Policy loans (3) 37,554 37,554 35,940 35,940 Deposit asset underlying 10 % coinsurance agreement (3) 215,871 215,871 224,371 224,371 Separate accounts 2,329,968 2,329,968 2,305,717 2,305,717 Liabilities: Notes payable (1) (2) $ 593,106 $ 496,098 $ 592,905 $ 491,753 Surplus note (1) (3) 1,459,565 1,380,029 1,444,469 1,333,047 Separate accounts 2,329,968 2,329,968 2,305,717 2,305,717 (1) Carrying value amounts shown are net of issuance costs . (2) Classified as a Level 2 fair value measurement. (3) Classified as a Level 3 fair value measurement. The fair values of financial instruments presented above are estimates of the fair values at a specific point in time using various sources and methods, including market quotations and a complex matrix system that takes into account issuer sector, quality, and spreads in the current marketplace. Financial Instruments Recognized at Fair Value in the Balance Sheets. Estimated fair values of investments in AFS securities are principally a function of current spreads and interest rates that are corroborated by independent third-party data. Therefore, the fair values presented are indicative of amounts we could realize or settle at the respective balance sheet date. We do not necessarily intend to dispose of or liquidate such instruments prior to maturity. Trading securities and equity securities, including common and nonredeemable preferred stocks, are carried at fair value. Segregated funds in separate accounts are carried at the underlying value of the variable insurance contracts, which is fair value. The carrying amounts for cash and cash equivalents, trade receivables, accrued investment income, accounts payable, notes payable – short term, cash collateral and payables for security transactions approximate their fair values due to the short-term nature of these instruments. Consequently, such financial instruments are not included in the above table. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | (5) Reinsurance We use reinsurance extensively, which has a significant effect on our results of operations. Reinsurance arrangements do not relieve us of our primary obligation to the policyholder. Details on in-force life insurance were as follows: March 31, 2023 December 31, 2022 (Dollars in thousands) Direct life insurance in-force $ 925,084,773 $ 919,081,738 Amounts ceded to other companies ( 792,325,968 ) ( 787,907,229 ) Net life insurance in-force $ 132,758,805 $ 131,174,509 Percentage of reinsured life insurance in-force 86 % 86 % Benefits and claims ceded to reinsurers during the three months ended March 31, 2023 and 2022 were $ 338.9 million and $ 288.4 million, respectively. Reinsurance recoverables as of March 31, 2023 and December 31, 2022 include ceded reserve balances, ceded claim liabilities, and ceded claims paid. Reinsurance recoverables and financial strength ratings by reinsurer were as follows: March 31, 2023 December 31, 2022 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Swiss Re Life and Health America, Inc. (Novated from Pecan Re Inc.) (1) $ 2,432,148 A+ $ 2,403,180 A+ Munich Re of Malta (1) (2) 249,328 NR $ 245,521 NR American Health and Life Insurance Company (1) 150,874 B++ $ 148,573 B++ SCOR Global Life Reinsurance Companies (3) 126,485 A+ 121,408 A+ Swiss Re Life & Health America Inc. (4) 44,624 A+ 57,439 A+ RGA Reinsurance Company 41,213 A+ 47,110 A+ Korean Reinsurance Company 35,602 A 42,169 A Munich American Reassurance Company 34,942 A+ 41,450 A+ Hannover Life Reassurance Company 20,297 A+ 18,504 A+ TOA Reinsurance Company 16,938 A 18,043 A All other reinsurers 30,186 - 35,936 - Allowance for credit losses ( 3,563 ) ( 2,936 ) Reinsurance recoverables $ 3,179,074 $ 3,176,397 NR – not rated (1) Reinsurance recoverables includes balances ceded under coinsurance transactions of term life insurance policies that were in-force as of December 31, 2009. Amounts shown are net of their share of the reinsurance recoverables from other reinsurers. Arrangements with these reinsurers include collateral trust agreements held in support of reinsurance recoverables. (2) Entity is rated AA- by S&P. (3) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (4) Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc. We estimate and recognize lifetime expected credit losses for reinsurance recoverables. In estimating the allowance for expected credit losses for reinsurance recoverables, we factor in the underlying collateral for reinsurance agreements where available. Specifically, for reinsurers with underlying trust assets, we compare the reinsurance recoverables balance to the underlying trust assets that mitigate the potential exposure to credit losses. We also analyze the financial condition of the reinsurers, as determined by third-party rating agencies, to determine the probability of default for the reinsurers. We then utilize a third-party credit default study to calculate an expected credit loss given default rate or recovery rate. The probability of default and loss given default rates are then applied to the reinsurers’ recoverable balance, while also factoring in any third-party letters of credit that support the reinsurance agreement, in order to calculate our current expected credit loss allowance. The rollforward of the allowance for credit losses on reinsurance recoverables were as follows: Three months ended March 31, 2023 2022 (In thousands) Balance, beginning of period $ 2,936 $ 2,942 Current period provision for expected credit losses 627 141 Balance, at the end of period $ 3,563 $ 3,083 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | (6) Deferred Policy Acquisition Costs The balances and activity in DAC were as follows: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Term Life Segregated Funds (Canada) Term Life Segregated Funds (Canada) Balance, beginning of period $ 3,111,675 $ 62,341 $ 2,872,816 $ 65,411 Capitalization 127,293 1,834 507,834 7,003 Amortization ( 65,503 ) ( 1,493 ) ( 252,352 ) ( 5,581 ) Foreign exchange translation and other 830 181 ( 16,623 ) ( 4,492 ) Balance, at the end of period $ 3,174,295 $ 62,863 $ 3,111,675 $ 62,341 Reconciliation of DAC by product was as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 3,174,295 $ 3,111,675 Segregated Funds (Canada) 62,863 62,341 Other 19,687 20,013 Total DAC, net $ 3,256,845 $ 3,194,029 There were no changes to the judgments, assumptions and methods used to amortize DAC during the three months ended March 31, 2023 and 2022. |
Separate Accounts
Separate Accounts | 3 Months Ended |
Mar. 31, 2023 | |
Separate Accounts Disclosure [Abstract] | |
Separate Accounts | (7) Separate Accounts The following table represents the fair value of assets supporting separate accounts assets by major investment category: March 31, 2023 December 31, 2022 (In thousands) Fixed-income securities $ 850,880 $ 796,384 Equity securities 1,358,331 1,340,541 Cash and cash equivalents 130,713 181,162 Due to/from funds ( 9,983 ) ( 12,399 ) Other 27 29 Total separate accounts assets $ 2,329,968 $ 2,305,717 The following table represents the balances of and changes in separate account liabilities: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Separate account liabilities balance, beginning of period $ 2,305,717 $ 2,799,992 Premiums and deposits 77,897 253,982 Surrenders and withdrawals ( 108,494 ) ( 293,278 ) Investment performance 67,262 ( 202,997 ) Management fees and other charges ( 15,140 ) ( 62,281 ) Foreign exchange translation 2,726 ( 189,701 ) Separate accounts liabilities balance, end of period $ 2,329,968 $ 2,305,717 Cash surrender value $ 2,293,074 $ 2,268,436 The cash surrender value represents the amount of the contract holders account balance distributable at the balance sheet date less the Company’s estimate of the deferred sales charges that would be assessed if the policyholders redeemed their contracts at the balance sheet date. This estimate requires the Company to make certain assumptions regarding the underlying account balances by contribution year and application of the contractually defined deferred sales charges that would be applicable to each contribution year. |
Policy Claims and Other Benefit
Policy Claims and Other Benefits Payable | 3 Months Ended |
Mar. 31, 2023 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Policy Claims and Other Benefits Payable | (8) Policy Claims and Other Benefits Payable Changes in policy claims incurred and other benefits payable were as follows: Three months ended March 31, 2023 2022 (In thousands) Policy claims and other benefits payable, beginning of period $ 538,250 $ 585,382 Less reinsured policy claims and other benefits payable 542,613 638,007 Net balance, beginning of period ( 4,363 ) ( 52,625 ) Incurred related to current year 65,820 77,232 Incurred related to prior years (1) ( 2,732 ) ( 4,547 ) Total incurred 63,088 72,685 Claims paid related to current year, net of reinsured policy claims received ( 141,557 ) ( 161,818 ) Reinsured policy claims received related to prior years, net of claims paid 8,422 64,532 Total paid ( 133,135 ) ( 97,286 ) Foreign currency translation 38 ( 12 ) Net balance, end of period ( 74,372 ) ( 77,238 ) Add reinsured policy claims and other benefits payable 572,855 652,088 Balance, end of period $ 498,483 $ 574,850 (1) Includes the difference between our estimate of claims incurred but not yet reported as of period-end and the actual incurred claims reported after period-end. The liability for policy claims and other benefits payable on traditional life insurance products includes estimated unpaid claims that have been reported to us and claims incurred but not yet reported. We estimate claims incurred but not yet reported based on our historical claims activity, adjusted for any current new trends and conditions, and reported lag time experience. |
Future Policy Benefits
Future Policy Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Future Policy Benefits | (9) Future Policy Benefits The following tables summarize balances and changes in the present value of expected net premiums and the present value of expected future policy benefits underlying the LFPB: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Present Value of Expected Net Premiums Term Life Balance at current discount rate, beginning of period $ 13,053,386 $ 14,988,852 Balance at original discount rate, beginning of period 13,521,221 12,800,441 Effect of changes in cash flow assumptions - 26,090 Effect of actual variances from expected experience ( 66,059 ) 8,653 Adjusted balance, beginning of period 13,455,162 12,835,184 Issuances 465,861 1,892,716 Interest accrual at original discount rate 130,130 486,436 Net premiums collected ( 414,681 ) ( 1,623,000 ) Foreign currency translation 1,326 ( 70,115 ) Expected net premiums at original discount rate, end of period 13,637,798 13,521,221 Effect of changes in discount rate assumptions ( 117,304 ) ( 467,835 ) Expected net premiums at current discount rate, end of period $ 13,520,494 $ 13,053,386 Present Value of Expected Future Policy Benefits Balance at current discount rate, beginning of period $ 19,143,253 $ 23,309,576 Balance at original discount rate, beginning of period 19,706,818 18,991,175 Effect of changes in cash flow assumptions - 29,915 Effect of actual variances from expected experience ( 58,593 ) 21,101 Adjusted balance, beginning of period 19,648,225 19,042,191 Issuances 465,885 1,892,730 Interest Accrual at original discount rate 206,814 796,017 Benefit payments ( 467,008 ) ( 1,915,518 ) Foreign currency translation 2,016 ( 108,602 ) Expected future policy benefits at original discount rate, end of period 19,855,932 19,706,818 Effect of changes in discount rate assumptions 13,498 ( 563,565 ) Expected future policy benefits at current discount rate, end of period $ 19,869,430 $ 19,143,253 LFPB $ 6,348,936 $ 6,089,867 Less: reinsurance recoverables 3,154,789 3,153,121 Net LFPB, after reinsurance recoverables $ 3,194,147 $ 2,936,746 Weighted-average duration of net LFPB 7.8 7.8 During the three months ended March 31, 2023 and 2022, experience variances resulted in remeasurement gains of $ 0.5 million and $ 1.3 million, respectively. The impact of experience variances in persistency and mortality during each period was largely offset by reinsurance. There were no changes to the inputs, judgments, assumptions, and methods used in measuring the LFPB during the three months ended March 31, 2023 and 2022. For the full year 2022, the remeasurement gain recognized by the Company was $ 0.5 million . During 2022, a small assumption change was made relating to moving mortality improvement forward one calendar year when the Company reviewed assumptions during the third quarter. The impact of this change in assumption, together with experience variances during 2022, were largely offset by reinsurance. Losses recognized as a result of capping the net premium ratio at 100 % were immaterial during the three months ended March 31, 2023 and 2022. The following table reconciles the LFPB to the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 6,348,936 $ 6,089,867 Other 212,688 208,039 Total $ 6,561,624 $ 6,297,906 The following table reconciles the reinsurance recoverables to the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 3,154,789 $ 3,153,121 Other 24,285 23,276 Total $ 3,179,074 $ 3,176,397 The amount of discounted (using the original discount rate) and undiscounted expected gross premiums and expected future benefit payments were as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life Undiscounted Discounted Undiscounted Discounted Expected future benefit payments $ 32,216,059 $ 19,869,430 $ 31,904,059 $ 19,143,253 Expected future gross premiums $ 37,480,296 $ 25,902,466 $ 37,135,605 $ 25,070,802 The amount of revenue and interest recognized in our unaudited condensed consolidated statements of income were as follows: Three months ended March 31, 2023 2022 (In thousands) Term Life Gross premiums $ 812,880 $ 793,254 Interest accretion (expense) $ ( 76,684 ) $ ( 76,496 ) The weighted-average rates were as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life Original discount rate 4.95 % 5.00 % Current discount rate 4.91 % 5.28 % There were no changes to the methods used to determine the discount rates during the three months ended March 31, 2023 and the twelve months ended December 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | (10) Stockholders’ Equity A reconciliation of the number of shares of our outstanding common stock follows: Three months ended March 31, 2023 2022 (In thousands) Common stock, beginning of period $ 36,824 $ 39,368 Shares issued for stock options exercised 43 - Shares of common stock issued upon lapse of sales restrictions on 129 132 Common stock retired ( 589 ) ( 748 ) Common stock, end of period $ 36,407 $ 38,752 The above reconciliation excludes RSUs and performance-based stock units (“PSUs”), which do not have voting rights. As sales restrictions on RSUs lapse and PSUs are earned, we issue common shares with voting rights. As of March 31, 2023, we had a total of 266,601 RSUs and 65,459 PSUs outstanding. The PSU outstanding balance is based on the number of PSUs granted pursuant to the award agreement; however, the actual number of common shares earned could be higher or lower based on actual versus targeted performance. See Note 12 (Share-Based Transactions) for discussion of the PSU award structure. On November 17, 2022, our Board of Directors authorized a share repurchase program for up to $ 375.0 million of our outstanding common stock for purchases from January 1, 2023 through December 31, 2023 (the “Share Repurchase Program”). Under the Share Repurchase Program, we repurchased 530,723 shares of our common stock in the open market for an aggregate purchase price of $ 85.3 million through March 31, 2023. Approximately $ 289.7 million remains available for repurchases of our outstanding common stock under the Share Repurchase Program as of March 31, 2023 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (11) Earnings Per Share The Company has outstanding common stock and equity awards that consist of RSUs, PSUs and stock options. The RSUs maintain non-forfeitable dividend rights that result in dividend payment obligations on a one-to-one ratio with common shares for any future dividend declarations. Unvested RSUs are deemed participating securities for purposes of calculating earnings per share (“EPS”) as they maintain dividend rights. We calculate EPS using the two-class method. Under the two-class method, we allocate earnings to common shares and vested RSUs outstanding for the period. Earnings attributable to unvested participating securities, along with the corresponding share counts, are excluded from EPS as reflected in our unaudited condensed consolidated statements of income. In calculating basic EPS, we deduct from net income any dividends and undistributed earnings allocated to unvested RSUs and then divide the result by the weighted-average number of common shares and vested RSUs outstanding for the period. We determine the potential dilutive effect of PSUs and stock options outstanding (“contingently-issuable shares”) on EPS using the treasury-stock method. Under this method, we determine the proceeds that would be received from the issuance of the contingently-issuable shares if the end of the reporting period were the end of the contingency period. The proceeds from the contingently-issuable shares include the remaining unrecognized compensation expense of the awards and the cash received for the exercise price on stock options. We then use the average market price of our common shares during the period the contingently-issuable shares were outstanding to determine how many shares we could repurchase with the proceeds raised from the issuance of the contingently-issuable shares. The net incremental share count issued represents the potential dilutive securities. We then reallocate earnings to common shares and vested RSUs by incorporating the increased fully-diluted share count to determine diluted EPS. The calculation of basic and diluted EPS was as follows: Three months ended March 31, 2023 2022 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income attributable to Primerica, Inc. $ 125,106 $ 115,039 Income attributable to unvested participating securities ( 565 ) ( 476 ) Net income used in calculating basic EPS $ 124,541 $ 114,563 Denominator: Weighted-average vested shares 36,710 39,221 Basic EPS $ 3.39 $ 2.92 Diluted EPS: Numerator: Net income attributable to Primerica, Inc. $ 125,106 $ 115,039 Income attributable to unvested participating securities ( 564 ) ( 475 ) Net income used in calculating diluted EPS $ 124,542 $ 114,564 Denominator: Weighted-average vested shares 36,710 39,221 Dilutive effect of incremental shares to be issued for 94 111 Weighted-average shares used in calculating diluted EPS 36,804 39,332 Diluted EPS $ 3.38 $ 2.91 |
Share-Based Transactions
Share-Based Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Transactions | (12) Share-Based Transactions The Company has outstanding equity awards under the Primerica, Inc. Second Amended and Restated 2010 Omnibus Incentive Plan (“2010 OIP”), which expired in 2020 in accordance with its terms and under which no future awards will be made, and the Primerica, Inc. 2020 Omnibus Incentive Plan (the “2020 OIP”, and together with the 2010 OIP, the “OIP”), which was approved by the Company’s stockholders on May 13, 2020. The OIP provides for the issuance of equity awards, including stock options, stock appreciation rights, restricted stock, deferred stock, RSUs, PSUs, and stock payment awards, as well as cash-based awards. In addition to time-based vesting requirements, awards granted under the OIP may also be subject to specified performance criteria. Under the OIP, the Company issues equity awards to our management (officers and other key employees), non-employees who serve on our Board of Directors, and sales force leaders. For more information on equity awards granted under the OIP, see Note 14 (Share-Based Transactions) to our consolidated financial statements within our 2022 Annual Report. In connection with our granting of equity awards to management and members of the Board of Directors, we recognize expense over the requisite service period of the equity award. We defer and amortize the fair value of equity awards granted to the sales force in the same manner as other deferred policy acquisition costs for those awards that are an incremental direct cost of successful acquisitions of life insurance policies that result directly from and are essential to the policy acquisition(s) and would not have been incurred had the policy acquisition(s) not occurred. All equity awards granted to the sales force that are not directly related to the successful acquisition of life insurance policies are recognized as expense as incurred, which is in the quarter granted and earned. The impact of equity awards granted under the OIP are as follows: Three months ended March 31, 2023 2022 (In thousands) Equity awards expense recognized $ 12,125 $ 12,181 Equity awards expense deferred 2,523 2,377 On February 28, 2023, the Compensation Committee of our Board of Directors granted the following equity awards to employees as part of the annual approval of management incentive compensation: • 55,137 RSUs awarded to management with a measurement-date fair value of $ 185.24 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. • 17,139 PSUs awarded to our four top executives with a measurement-date fair value of $ 185.24 per unit. The PSUs will be earned on March 1, 2026 contingent upon the Company achieving a targeted annual average three-year return on adjusted equity (“ROAE”) and average EPS growth for the period from January 1, 2023 through December 31, 2025. The actual number of common shares that will be earned will vary based on the actual ROAE and average EPS growth relative to the targeted ROAE and average EPS growth and can range from zero to 25,708 shares. All awards granted to employees on February 28, 2023 vest upon voluntary termination of employment by any employee who is “retirement eligible” as of his or her termination date. In order to be retirement eligible, an employee must be at least 55 years old and his or her age plus years of service with the Company must equal at least 75. The number of PSUs that will ultimately be earned for a retirement eligible employee is equal to the amount calculated using the Company’s actual cumulative three-year ROAE and average EPS growth for the performance period ending on December 31, 2025, even if that employee retires prior to the completion of the three-year performance period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (13) Commitments and Contingent Liabilities Letter of Credit (“LOC”). Peach Re maintains a credit facility agreement with Deutsche Bank (the “Credit Facility Agreement”) to support certain obligations for a portion of the Regulation XXX reserves related to the Peach Re Coinsurance Agreement. Under the Credit Facility Agreement, Deutsche Bank issued a letter of credit for the benefit of Primerica Life with a term expiring on December 31, 2025. As of March 31, 2023, the amount of the LOC outstanding was $ 80.4 million. This amount will decline over the remaining term of the LOC to correspond with declines in the Regulation XXX reserves. As of March 31, 2023, the Company was in compliance with all financial covenants under the Credit Facility Agreement. Further discussion on the Company’s LOC is included in Note 16 (Commitments and Contingent Liabilities) to our consolidated financial statements within our 2022 Annual Report. Contingent Liabilities. The Company is involved from time to time in legal disputes, regulatory inquiries and arbitration proceedings in the normal course of business. These disputes are subject to uncertainties, including the large and/or indeterminate amounts sought in certain of these matters and the inherent unpredictability of litigation. As such, the Company is unable to estimate the possible loss or range of loss that may result from these matters unless otherwise indicated. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income | (14) Other Comprehensive Income The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended March 31, 2023 2022 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) $ 998 $ 3,289 Income tax expense (benefit) on unrealized foreign currency - - Change in unrealized foreign currency translation gains $ 998 $ 3,289 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period $ 38,549 $ ( 164,937 ) Income tax expense (benefit) on unrealized holding gains 8,316 ( 35,241 ) Change in unrealized holding gains (losses) on available-for-sale 30,233 ( 129,696 ) Reclassification from accumulated OCI to net income for (gains) 3,137 ( 658 ) Income tax (expense) benefit on (gains) losses reclassified 659 ( 138 ) Reclassification from accumulated OCI to net income for (gains) 2,478 ( 520 ) Change in unrealized gains (losses) on available-for-sale $ 32,711 $ ( 130,216 ) Effect of change in discount rate assumptions on the LFPB: Change in effect in discount rate assumptions on the LFPB before income taxes $ ( 182,045 ) $ 821,904 Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income ( 39,071 ) 175,763 Change in effect in discount rate assumptions on the LFPB, net of income taxes $ ( 142,974 ) $ 646,141 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | (15) Debt Notes Payable. As of March 31, 2023, the Company had outstanding $ 600.0 million of publicly-traded, senior unsecured notes (the “Senior Notes”), with an annual interest rate of 2.80 % that are scheduled to mature on November 19, 2031 . As of March 31, 2023, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three months ended March 31, 2023. Further discussion on the Company’s Senior Notes is included in Note 10 (Debt) to our consolidated financial statements within our 2022 Annual Report. Surplus Note. As of March 31, 2023, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $ 1.46 billion, which is equal to the principal amount of the LLC Note. The principal amount of both the Surplus Note and the LLC Note will fluctuate over time to coincide with the amount of policy reserves being contractually supported under the Vidalia Re Coinsurance Agreement. Both the LLC Note and the Surplus Note mature on December 31, 2030 and bear interest at an annual interest rate of 4.50 % . Based on the estimated reserves for policies issued in 2011 through 2017 that have been ceded under the Vidalia Re Coinsurance Agreement, the principal amounts of the Surplus Note and the LLC Note are expected to reach $ 1.5 billion each. This financing arrangement is non-recourse to the Parent Company and Primerica Life, meaning that neither of these companies has guaranteed the Surplus Note or is otherwise liable for reimbursement for any payments triggered by the LLC Note’s credit enhancement feature. The Parent Company has agreed to support Vidalia Re’s obligation to pay the credit enhancement fee incurred on the LLC Note. Further discussion on the Company’s LLC Note is included in Note 3 (Investments). Revolving Credit Facility. We maintain an unsecured $ 200.0 million revolving credit facility (“Revolving Credit Facility”) with a syndicate of commercial banks. The Revolving Credit Facility has a scheduled termination date of June 22, 2026 . Amounts outstanding under the Revolving Credit Facility are borrowed, at our discretion, on the basis of either a Secured Overnight Financing Rate (“SOFR”) rate loan, or a base rate loan. SOFR rate loans bear interest at a periodic rate equal to one-, three-, or six-month Adjusted Term SOFR, plus an applicable margin. Base rate loans bear interest at the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50% and (c) one-month Adjusted Term SOFR plus 1.00%, plus an applicable margin. The Revolving Credit Facility also permits the issuance of letters of credit. The applicable margins are based on our debt rating with such margins for SOFR rate loans and letters of credit ranging from 1.00 % to 1.625 % per annum and for base rate loans ranging from 0.00 % to 0.625 % per annum. Under the Revolving Credit Facility, we incur a commitment fee that is payable quarterly in arrears and is determined by our debt rating. This commitment fee ranges from 0.10 % to 0.225 % per annum of the aggregate amount of the $ 200.0 million commitment of the lenders under the Revolving Credit Facility that remains undrawn. During the three months ended March 31, 2023 , no amounts were outstanding under the Revolving Credit Facility and we were in compliance with its covenants. Furthermore, no events of default occurred under the Revolving Credit Facility during the three months ended March 31, 2023 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Revenue from Contract with Customers | (16) Revenue from Contracts with Customers Our revenues from contracts with customers primarily include: • Commissions and fees earned for the marketing and distribution of investment and savings products underwritten by mutual fund companies and annuity providers. For purposes of revenue recognition, mutual fund companies and annuity providers are considered the customers in marketing and distribution arrangements; • Fees earned for investment advisory and administrative services within our managed investments program and shareholder services fees earned in Canada for mutual funds for which we serve as principal distributor; • Account-based fees for transfer agent recordkeeping functions and non-bank custodial services; • Commissions and fees earned from the distribution of Medicare-related insurance products on behalf of health insurance carriers, including tail revenue adjustments; • Marketing development revenues earned for selling Medicare-related insurance products on behalf of health insurance carriers, which is recorded in Other, net revenue; • Fees associated with mortgage distribution and the distribution of other third-party financial products; and • Other revenue from the sale of miscellaneous products and services including monthly subscription fees from the sales representatives for access to Primerica Online, our primary sales force support tool. Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP. Further discussion on the Company’s revenues from contracts with customers and revenue recognition policies are included in Note 18 (Revenue from Contracts with Customers) to our consolidated financial statements within our 2022 Annual Report. The disaggregation of our revenues from contracts with customers were as follows: Three months ended March 31, 2023 2022 (In thousands) Term Life Insurance segment revenues: Other, net $ 12,233 $ 12,175 Total segment revenues from contracts with customers 12,233 12,175 Revenues from sources other than contracts with customers 408,836 394,808 Total Term Life Insurance segment revenues $ 421,069 $ 406,983 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 72,388 $ 103,242 Asset-based revenues 98,104 97,355 Account-based revenues 22,790 21,541 Other, net 3,120 3,144 Total segment revenues from contracts with customers 196,402 225,282 Revenues from sources other than contracts 13,800 15,757 Total Investment and Savings Products segment revenues $ 210,202 $ 241,039 Senior Health segment revenues: Commissions and fees $ 15,755 $ 1,278 Other, net 2,955 4,553 Total Senior Health segment revenues $ 18,710 $ 5,831 Corporate and Other Distributed Products segment revenues: Commissions and fees $ 8,710 $ 12,627 Other, net 1,199 1,117 Total segment revenues from contracts with customers 9,909 13,744 Revenues from sources other than contracts with customers 30,146 23,629 Total Corporate and Other Distributed Products segment revenues $ 40,055 $ 37,373 Renewal Commissions Receivable. For revenue associated with ongoing renewal commissions in the Senior Health and Corporate and Other Distributed Products segments, we record a renewal commission receivable asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the satisfaction of the performance obligation, less amounts that are constrained in the accompanying unaudited condensed consolidated balance sheets. We update our estimate of variable consideration each period and new facts or circumstances that were not available at the time of the initial estimate will indicate that the expected renewal commissions are higher or lower than our renewal commissions receivable. As such, the expected renewal commissions receivable will be written down or up to its revised expected value by adjustments to revenue, which we refer to as tail revenue adjustments. During the three months ended March 31, 2023, no tail revenue adjustments were recognized based on our current estimates. Activity in the Renewal commissions receivable account was as follows: Three months ended March 31, 2023 2022 (In thousands) Senior Health segment: Balance, beginning of period $ 139,399 $ 172,308 Commissions revenue 9,062 12,849 Less: collections ( 14,262 ) ( 12,314 ) Tail revenue adjustments from change in estimate - ( 19,060 ) Balance, at the end of period $ 134,199 $ 153,783 Corporate and Other Distributed Products segments: Balance, beginning of period $ 60,644 $ 59,443 Commissions revenue 5,370 5,643 Less: collections ( 5,804 ) ( 5,694 ) Balance, at the end of period $ 60,210 $ 59,392 Incremental costs to obtain or fulfill contracts, most notably sales commissions to the sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts. |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | (17) Goodwill Goodwill represents the excess of the purchase price over the estimated acquired values of identifiable assets and liabilities acquired in a business combination. In accordance with U.S. GAAP, goodwill is not amortized. The Company tests goodwill for impairment annually on July 1 and whenever events occur or circumstances change that would indicate the carrying value of goodwill may be impaired. All of the Company’s goodwill was obtained from the acquisition of the e-TeleQuote business, which has been designated as a separate operating segment called Senior Health. Therefore, goodwill has been allocated solely to the Senior Health segment and is evaluated for impairment at the Senior Health segment level, which is also defined as the reporting unit. At March 31, 2023, the Company recognized goodwill of $ 127.7 million in its Senior Health reporting unit after accumulated goodwill impairment charges of $ 136.0 million. There was no change in the goodwill balance during the three months ended March 31, 2023. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation . We prepare our financial statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles are established primarily by the Financial Accounting Standards Board (“FASB”). The accompanying unaudited condensed consolidated financial statements contain all adjustments, generally consisting of normal recurring accruals, which are necessary to fairly present the balance sheets as of March 31, 2023 and December 31, 2022, the statements of income, comprehensive income, and stockholders’ equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. Results of operations for interim periods are not necessarily indicative of results for the entire year or of the results to be expected in future periods. These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are sufficient to make the information not misleading. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Annual Report”). |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect financial statement balances, revenues and expenses and cash flows, as well as the disclosure of contingent assets and liabilities. Management considers available facts and knowledge of existing circumstances when establishing the estimates included in our financial statements. The most significant items that involve a greater degree of accounting estimates and actuarial determinations subject to change in the future are the valuation of investments, deferred policy acquisition costs (“DAC”), future policy benefit reserves and corresponding amounts recoverable from reinsurers, renewal commissions receivable, income taxes, and valuation of intangible assets and goodwill. Estimates for these and other items are subject to change and are reassessed by management in accordance with U.S. GAAP. Actual results could differ from those estimates. |
Consolidation | Consolidation. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and those entities required to be consolidated under U.S. GAAP. All material intercompany profits, transactions, and balances among the consolidated entities have been eliminated. |
Reclassifications | Reclassifications. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity. |
New Accounting Principles | New Accounting Principles. In August 2018, the FASB issued Accounting Standards Update No. 2018-12 , Financial Services—Insurance (Topic 944) — Targeted Improvements to the Accounting for Long-Duration Contracts (“ASU 2018-12” or “LDTI”). The amendments in this update change accounting guidance for insurance companies that issue long-duration contracts, such as term life insurance and segregated funds products. ASU 2018-12 requires companies that issue long-duration insurance contracts to update assumptions used in measuring the liability for future policy benefits (“LFPB”) and DAC, including mortality, disability, and persistency, at least annually instead of locking those assumptions at contract inception and reflecting differences in assumptions and actual performance as the experience occurs. ASU 2018-12 also changes how insurance companies that issue long-duration contracts amortize DAC and determine and update the discount rate assumptions used in measuring both the LFPB and ceded reserves that are part of reinsurance recoverables while increasing the level of financial statement disclosures required. The Company adopted ASU 2018-12 on January 1, 2023 through the modified retrospective method, which applies the provisions of the standard by pivoting off the historical December 31, 2020 liability for future policy benefits (“Pre-transition Reserve”) and DAC balances just prior to January 1, 2021 (the “Transition Date”). Upon adoption, the Company recorded the following adjustments to its consolidated balance sheet as of the Transition Date. • LDTI requires entities to use market observable rates, based on an upper-medium grade fixed income instrument yield, to measure future policy benefits reserves each period. The difference between the LFPB calculated using market observable rates and the Pre-transition Reserve was recognized as part of accumulated other comprehensive income (“AOCI”) at the Transition Date. Given how low market observable rates were at the Transition Date, we recorded a reduction to AOCI of approximately $ 1.5 billion, net of income tax, as of January 1, 2021. Market observable rates have increased since the Transition Date, which resulted in a cumulative decrease to AOCI of $ 11.7 million as of March 31, 2023. • Under LDTI, policies are grouped into cohorts and the net premium ratio for each policy cohort is used to calculate the LFPB. At the Transition Date, the “Net Premium Ratio” is defined as the present value of future benefits, which includes claim settlement expenses less the Pre-transition Reserve divided by the present value of the gross premiums. Expected future benefits and gross premiums use best estimate cash flow assumptions and the locked-in discount rate at the Transition Date is used in the calculation. Under LDTI, a cohort’s Net Premium Ratio is capped at 100 %. The adjustment necessary at the Transition Date to cap the Net Premium Ratio for cohorts at 100 % was approximately $ 23 million, which was recognized as a reduction to retained earnings as of January 1, 2021. The identified impact from capping the Net Premium Ratio at 100 % was solely attributable to a limited amount of older policy year cohorts. All prior period financial information included in the accompanying condensed consolidated financial statements has been restated to reflect the adoption of ASU 2018-12. The Company's restated permanent and temporary stockholders' equity from the date of adoption through December 31, 2022 is as follows: Year ended December 31, 2022 2021 (Unaudited) (Unaudited) (In thousands) Equity attributable to Primerica, Inc./Permanent stockholders’ equity Common stock: Balance, beginning of period $ 394 $ 393 Repurchases of common stock ( 28 ) ( 1 ) Net issuance of common stock 2 2 Balance, end of period 368 394 Paid-in capital: Balance, beginning of period 5,224 - Share-based compensation 33,624 31,043 Net issuance of common stock ( 2 ) ( 2 ) Repurchases of common stock ( 41,079 ) ( 25,817 ) Redemption of noncontrolling interest in consolidated entities 2,233 - Balance, end of period - 5,224 Retained earnings: Balance, beginning of period 2,074,111 1,705,786 Cumulative effect of adoption of new accounting standards - ASU 2018-12, net of income tax - ( 22,847 ) Adjusted balance 2,074,111 1,682,939 Net income 460,939 465,808 Dividends ( 83,783 ) ( 74,636 ) Repurchases of common stock ( 320,332 ) - Balance, end of period 2,130,935 2,074,111 Accumulated other comprehensive income (loss), net of income tax: Balance, beginning of period ( 1,168,399 ) 129,706 Cumulative effect of adoption of new accounting standards - ASU 2018-12 - ( 1,510,618 ) Adjusted balance ( 1,168,399 ) ( 1,380,912 ) Effect of change in discount rate assumptions on the liability for future policy benefits 1,372,022 269,895 Change in foreign currency translation adjustment ( 20,747 ) 6,973 Change in net unrealized investment gains (losses) during the period: ( 304,645 ) ( 64,355 ) Balance, end of period ( 121,769 ) ( 1,168,399 ) Total permanent stockholders’ equity $ 2,009,534 $ 911,330 Redeemable noncontrolling interests in consolidated entities/Temporary stockholders’ equity Balance, beginning of period $ 7,271 $ - Acquisition of noncontrolling interest - 8,438 Net income (loss) attributable to noncontrolling interests ( 5,038 ) ( 1,377 ) Changes in noncontrolling interests in consolidated entities, net - 210 Redemption of noncontrolling interest in consolidated entities ( 2,233 ) Balance, end of period $ - $ 7,271 The impact on the Company's previously reported consolidated balance sheet as of December 31, 2022 is as follows: Consolidated Balance Sheet December 31, 2022 As Previously Reported Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Assets: Investments: Fixed-maturity securities available-for-sale, at fair value (amortized cost: $ 2,801,415 ) $ 2,495,456 $ - $ 2,495,456 Fixed-maturity security held-to-maturity, at amortized cost (fair value: $ 1,340,265 ) 1,444,920 - 1,444,920 Short-term investments available-for-sale, at fair value (amortized cost: $ 69,393 ) 69,406 - 69,406 Equity securities, at fair value (historical cost: $ 29,430 ) 35,404 - 35,404 Trading securities, at fair value (cost: $ 4,229 ) 3,698 - 3,698 Policy loans and other invested assets 48,713 - 48,713 Total investments 4,097,597 - 4,097,597 Cash and cash equivalents 489,240 - 489,240 Accrued investment income 20,885 - 20,885 Reinsurance recoverables 4,015,909 ( 839,512 ) 3,176,397 Deferred policy acquisition costs, net 3,081,886 112,143 3,194,029 Renewal commissions receivable 200,043 - 200,043 Agent balances, due premiums and other receivables 254,276 - 254,276 Goodwill 127,707 - 127,707 Intangible assets 185,525 - 185,525 Deferred income taxes 101,333 ( 3,361 ) 97,972 Operating lease right-of-use assets 40,500 - 40,500 Other assets 428,259 - 428,259 Separate account assets 2,305,717 - 2,305,717 Total assets $ 15,348,877 $ ( 730,730 ) $ 14,618,147 Liabilities and Stockholders’ Equity: Liabilities: Future policy benefits $ 7,390,800 $ ( 1,092,894 ) $ 6,297,906 Unearned and advance premiums 15,422 - 15,422 Policy claims and other benefits payable 538,250 - 538,250 Other policyholders’ funds 483,769 - 483,769 Note payable 592,905 - 592,905 Surplus note 1,444,469 - 1,444,469 Income tax payable 36,876 - 36,876 Deferred income taxes 91,457 74,129 165,586 Operating lease liabilities 45,995 - 45,995 Other liabilities 580,780 - 580,780 Payable under securities lending 100,938 - 100,938 Separate account liabilities 2,305,717 - 2,305,717 Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) Total liabilities 13,627,378 ( 1,018,765 ) 12,608,613 Temporary Stockholders’ Equity Redeemable noncontrolling interests in consolidated entities - - - Permanent Stockholders’ Equity Equity attributable to Primerica, Inc.: Common stock ($ 0.01 par value; authorized 500,000 shares; issued and outstanding 36,824 ) 368 - 368 Paid-in capital - - - Retained earnings 1,973,403 157,532 2,130,935 Accumulated other comprehensive income (loss), net of income tax: Effect of change in discount rate assumptions on the liability for future policy benefits - 131,295 131,295 Unrealized foreign currency translation gains (losses) ( 11,404 ) ( 792 ) ( 12,196 ) Net unrealized investment gains (losses) on available-for-sale securities ( 240,868 ) - ( 240,868 ) Total permanent stockholders’ equity 1,721,499 288,035 2,009,534 Total liabilities and temporary and permanent stockholders’ equity $ 15,348,877 $ ( 730,730 ) $ 14,618,147 The impact on the Company's previously reported condensed consolidated statement of income for the three months ended March 31, 2022 is as follows: Condensed Consolidated Statement of Income Three months ended March 31, 2022 As Previously Reported (Unaudited) Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Revenues: Direct premiums $ 798,666 $ - $ 798,666 Ceded premiums ( 399,885 ) - ( 399,885 ) Net premiums 398,781 - 398,781 Commissions and fees 251,800 - 251,800 Investment income net of investment expenses 34,420 - 34,420 Interest expense on surplus note ( 15,515 ) - ( 15,515 ) Net investment income 18,905 - 18,905 Realized investment gains (losses) 577 - 577 Other investment gains (losses) 174 - 174 Investment gains (losses) 751 - 751 Other, net 20,989 - 20,989 Total revenues 691,226 - 691,226 Benefits and expenses: Benefits and claims 187,069 ( 18,781 ) 168,288 Future policy benefits remeasurement (gain) loss - ( 1,272 ) ( 1,272 ) Amortization of deferred policy acquisition costs 86,063 ( 22,840 ) 63,223 Sales commissions 133,924 - 133,924 Insurance expenses 59,509 - 59,509 Insurance commissions 7,721 - 7,721 Contract acquisition costs 20,649 - 20,649 Interest expense 6,853 - 6,853 Other operating expenses 86,435 - 86,435 Total benefits and expenses 588,223 ( 42,893 ) 545,330 Income before income taxes 103,003 42,893 145,896 Income taxes 24,239 9,273 33,512 Net income 78,764 33,620 112,384 Net income (loss) attributable to noncontrolling interests ( 2,655 ) - ( 2,655 ) Net income attributable to Primerica, Inc. $ 81,419 $ 33,620 $ 115,039 Earnings per share attributable to common stockholders: Basic earnings per share $ 2.07 $ 0.85 $ 2.92 Diluted earnings per share $ 2.06 $ 0.85 $ 2.91 Weighted-average shares used in computing earnings Basic 39,221 - 39,221 Diluted 39,332 - 39,332 Transition Impact on the Liability for Future Policy Benefits. The Company adopted ASU 2018-12 using the modified retrospective transition method. As part of the transition disclosures ASU 2018-12 requires a reconciliation of the adoption impacts to the Company’s LFPB, separated between the changes in the present value of expected net premiums and the present value of expected future policy benefits as of the Transition Date. Theses balances are presented before reinsurance and income taxes for the Term Life Insurance segment, which makes up the substantial portion of the Company's long-duration insurance contract liabilities. Transition Impact at January 1, 2021 (In thousands) Present Value of Expected Premiums Term Life Balance at December 31, 2020 $ 10,867,358 Impact to retained earnings from capping Transition Date net premium ratio ( 137,112 ) Balance at original discount rate 10,730,246 Effect of changes in discount rate assumptions 2,774,082 Balance at January 1, 2021 $ 13,504,328 Present Value of Expected Future Policy Benefits Balance at December 31, 2020 $ 17,445,700 Effect of changes in discount rate assumptions 5,624,494 Balance at January 1, 2021 $ 23,070,194 Recently-issued accounting guidance not discussed above is not applicable, is not material to our unaudited condensed consolidated financial statements, or did not or is not expected to have a material impact on our business. Changes to Accounting Policies . All significant accounting policies remain unchanged from the 2022 Annual Report except for the following: DAC. We defer incremental direct costs of successful contract acquisitions that result from and are essential to the contract transaction(s) and that would not have been incurred had the contract transaction(s) not occurred. These deferred policy acquisition costs mainly include commissions, underwriting costs and certain other policy issuance expenses associated with successful contract acquisitions. All other acquisition-related costs, including unsuccessful acquisition and renewal efforts, are charged to expense as incurred. Also, administrative costs, rent, depreciation, occupancy, equipment, and all other general overhead costs are considered indirect costs and are charged to expense as incurred. DAC for term life insurance policies is amortized on a constant-level basis over the expected term of the contracts using face amount as the unit of measure. Contracts are grouped by cohorts consistent with the grouping used in estimating the LFPB. The cohorts are defined by the legal entity that issued the policy and the year the policy was issued. Assumptions of face amounts used to amortize DAC for term life insurance policies, including persistency and mortality, are consistent with the assumptions used in estimating the LFPB. DAC for Canadian segregated funds is amortized on a constant-level basis over the expected term of the contracts using policy count as the unit of measure. Contracts are grouped by cohorts based on the issue year of the policy. Interest is not accrued on unamortized DAC balances and DAC is not subject to impairment testing. Separate Accounts. The separate accounts are primarily comprised of contracts issued by the Company through its subsidiary, Primerica Life Canada, pursuant to the Insurance Companies Act (Canada). The Insurance Companies Act authorizes Primerica Life Canada to establish the separate accounts. The separate accounts are represented by individual variable insurance contracts. Purchasers of variable insurance contracts issued by Primerica Life Canada have a direct claim to the benefits of the contract that entitles the holder to units in one or more investment funds (the “Funds”) maintained by Primerica Life Canada. The Funds invest in assets that are held for the benefit of the owners of the contracts. The Funds’ assets are administered by Primerica Life Canada and are held separate and apart from the general assets of the Company. The liabilities reflect the variable insurance contract holders’ interests in the Funds’ net assets based upon actual investment performance of the respective Funds. These Funds primarily consist of a series of branded investment funds known as the Asset Builder Funds, a registered retirement fund known as the Strategic Retirement Income Fund (“SRIF”), and a money market fund known as the Cash Management Fund. The principal investment objective of the Asset Builder Funds is to achieve long-term growth while preserving capital. The principal objective of the SRIF is to provide a stream of investment income during retirement plus the opportunity for modest capital appreciation. The Asset Builder Funds and the SRIF use diversified portfolios of publicly-traded Canadian stocks, investment-grade corporate bonds, Government of Canada bonds, and foreign equity investments to achieve their objectives. The Cash Management Fund invests in government guaranteed short-term bonds and short-term commercial and bank papers, with the principal investment objective being the provision of interest income while maintaining liquidity and preserving capital. Under these contract offerings, benefit payments to contract holders or their designated beneficiaries are only due upon death of the annuitant or upon reaching a specific maturity date. Benefit payments are based on the value of the contract holder’s units in the portfolio at the payment date, but are guaranteed to be no less than 75 % of the contract holder’s contribution, adjusted for withdrawals. Account values are not guaranteed for withdrawn units if contract holders make withdrawals prior to the maturity dates. Maturity dates for contracts investing in the Asset Builder Funds and Cash Management Fund vary by contract and range from 10 years from the contract issuance date to December 31, 2070 . Contracts investing in the SRIF mature when the policyholder reaches age 100, which is a minimum of 20 year s after issue . The SRIF is designed to provide periodic retirement income payments and as such, regular withdrawals, subject to legislated minimums, are anticipated. The cumulative effects of the periodic withdrawals are expected to substantially reduce both account and minimum guaranteed values prior to maturity. Both the asset and the liability for the separate accounts reflect the net value of the underlying assets in the portfolio as of the reporting date. Primerica Life Canada’s exposure to losses under the guarantee at the time of account maturity is limited to contract holder accounts that have declined in value more than 25 %, adjusted for withdrawals since the contribution date, prior to maturity. As maturity dates are of a long-term nature, the likelihood that guarantee payments will be required at any given point is very small. Additionally, the portfolios consist of a very large number of individual contracts, further spreading the risk related to the guarantee. The length of the contract terms provides significant opportunity for the underlying portfolios to recover any short-term losses prior to maturity or the death of the contract holder. The Company has estimated the fair value associated with the market risk benefits provided by these limited guarantees to be immaterial. Furthermore, the Funds investment allocations are aligned with the maturity risks of the related contracts and include investments in Government Strip Bonds and floating-rate notes. Future Policy Benefits. The LFPB on traditional life insurance products is established for future policy benefits, which includes death benefits, waiver of premium benefits and claim settlement expenses. The LFPB is calculated as the present value of expected future benefits less the present value of expected future net premiums receivable under the contracts. Net premiums are defined as the portion of the gross premiums received from policyholders that are needed to pay for all benefits. The assumptions underlying the LFPB include mortality, persistency, disability rates, and other assumptions that reflect our best estimate based on our historical experience and modified, as necessary, to reflect non-recurring and/or anticipated trends. The LFPB is estimated by grouping insurance policies into cohorts. Policy cohorts for the Term Life Insurance segment are based on the legal entity that issued the policy and the year the policy was issued. The cash flows and assumptions underlying the LFPB are unlocked each quarter to reflect differences between actual and expected experience. In general, assumption changes, to the extent necessary, are expected to only occur during the third quarter when we update our experience studies. However, they may occur at any time based on emerging experience. The impact of unlocking will be partly reflected in the current period and partly spread to future periods based on the remaining duration of the impacted cohort(s). The catch-up is retroactive back to the later of the Transition Date or issue date, after reinsurance recoverables and is recognized as a remeasurement gain or loss as a separate component of benefits and claims expense in the consolidated statements of income. The ceded reserve balances included in reinsurance recoverables are calculated in the same manner as the LFPB by cohort and apply best estimate assumptions and quarterly unlocking. The Company uses discount rates applied by country to align with local currency cash flows. Discount rates consist of yield curves that are developed using Bloomberg’s Evaluated Pricing Product (BVAL) based on senior unsecured fixed rate bonds ratings of A+, A or A-. The discount rate assumption is updated quarterly and the impact of remeasuring the net LFPB, after reinsurance recoverables from changes in the locked-in discount rate assumption is reflected in other comprehensive income in the consolidated statements of comprehensive income. The LFPB we establish are necessarily based on estimates, assumptions and our analysis of historical experience. Our results depend upon the extent to which our actual experience is consistent with the assumptions we use in determining the LFPB. The assumptions and estimates underlying the LFPB require significant judgment and, therefore, are inherently uncertain. |
Description of Business, Basi_3
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Restated Results Permanent and Temporary Stockholders' Equity, Consolidated Balance sheet and Condensed Consolidated Statement of Income | All prior period financial information included in the accompanying condensed consolidated financial statements has been restated to reflect the adoption of ASU 2018-12. The Company's restated permanent and temporary stockholders' equity from the date of adoption through December 31, 2022 is as follows: Year ended December 31, 2022 2021 (Unaudited) (Unaudited) (In thousands) Equity attributable to Primerica, Inc./Permanent stockholders’ equity Common stock: Balance, beginning of period $ 394 $ 393 Repurchases of common stock ( 28 ) ( 1 ) Net issuance of common stock 2 2 Balance, end of period 368 394 Paid-in capital: Balance, beginning of period 5,224 - Share-based compensation 33,624 31,043 Net issuance of common stock ( 2 ) ( 2 ) Repurchases of common stock ( 41,079 ) ( 25,817 ) Redemption of noncontrolling interest in consolidated entities 2,233 - Balance, end of period - 5,224 Retained earnings: Balance, beginning of period 2,074,111 1,705,786 Cumulative effect of adoption of new accounting standards - ASU 2018-12, net of income tax - ( 22,847 ) Adjusted balance 2,074,111 1,682,939 Net income 460,939 465,808 Dividends ( 83,783 ) ( 74,636 ) Repurchases of common stock ( 320,332 ) - Balance, end of period 2,130,935 2,074,111 Accumulated other comprehensive income (loss), net of income tax: Balance, beginning of period ( 1,168,399 ) 129,706 Cumulative effect of adoption of new accounting standards - ASU 2018-12 - ( 1,510,618 ) Adjusted balance ( 1,168,399 ) ( 1,380,912 ) Effect of change in discount rate assumptions on the liability for future policy benefits 1,372,022 269,895 Change in foreign currency translation adjustment ( 20,747 ) 6,973 Change in net unrealized investment gains (losses) during the period: ( 304,645 ) ( 64,355 ) Balance, end of period ( 121,769 ) ( 1,168,399 ) Total permanent stockholders’ equity $ 2,009,534 $ 911,330 Redeemable noncontrolling interests in consolidated entities/Temporary stockholders’ equity Balance, beginning of period $ 7,271 $ - Acquisition of noncontrolling interest - 8,438 Net income (loss) attributable to noncontrolling interests ( 5,038 ) ( 1,377 ) Changes in noncontrolling interests in consolidated entities, net - 210 Redemption of noncontrolling interest in consolidated entities ( 2,233 ) Balance, end of period $ - $ 7,271 The impact on the Company's previously reported consolidated balance sheet as of December 31, 2022 is as follows: Consolidated Balance Sheet December 31, 2022 As Previously Reported Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Assets: Investments: Fixed-maturity securities available-for-sale, at fair value (amortized cost: $ 2,801,415 ) $ 2,495,456 $ - $ 2,495,456 Fixed-maturity security held-to-maturity, at amortized cost (fair value: $ 1,340,265 ) 1,444,920 - 1,444,920 Short-term investments available-for-sale, at fair value (amortized cost: $ 69,393 ) 69,406 - 69,406 Equity securities, at fair value (historical cost: $ 29,430 ) 35,404 - 35,404 Trading securities, at fair value (cost: $ 4,229 ) 3,698 - 3,698 Policy loans and other invested assets 48,713 - 48,713 Total investments 4,097,597 - 4,097,597 Cash and cash equivalents 489,240 - 489,240 Accrued investment income 20,885 - 20,885 Reinsurance recoverables 4,015,909 ( 839,512 ) 3,176,397 Deferred policy acquisition costs, net 3,081,886 112,143 3,194,029 Renewal commissions receivable 200,043 - 200,043 Agent balances, due premiums and other receivables 254,276 - 254,276 Goodwill 127,707 - 127,707 Intangible assets 185,525 - 185,525 Deferred income taxes 101,333 ( 3,361 ) 97,972 Operating lease right-of-use assets 40,500 - 40,500 Other assets 428,259 - 428,259 Separate account assets 2,305,717 - 2,305,717 Total assets $ 15,348,877 $ ( 730,730 ) $ 14,618,147 Liabilities and Stockholders’ Equity: Liabilities: Future policy benefits $ 7,390,800 $ ( 1,092,894 ) $ 6,297,906 Unearned and advance premiums 15,422 - 15,422 Policy claims and other benefits payable 538,250 - 538,250 Other policyholders’ funds 483,769 - 483,769 Note payable 592,905 - 592,905 Surplus note 1,444,469 - 1,444,469 Income tax payable 36,876 - 36,876 Deferred income taxes 91,457 74,129 165,586 Operating lease liabilities 45,995 - 45,995 Other liabilities 580,780 - 580,780 Payable under securities lending 100,938 - 100,938 Separate account liabilities 2,305,717 - 2,305,717 Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) Total liabilities 13,627,378 ( 1,018,765 ) 12,608,613 Temporary Stockholders’ Equity Redeemable noncontrolling interests in consolidated entities - - - Permanent Stockholders’ Equity Equity attributable to Primerica, Inc.: Common stock ($ 0.01 par value; authorized 500,000 shares; issued and outstanding 36,824 ) 368 - 368 Paid-in capital - - - Retained earnings 1,973,403 157,532 2,130,935 Accumulated other comprehensive income (loss), net of income tax: Effect of change in discount rate assumptions on the liability for future policy benefits - 131,295 131,295 Unrealized foreign currency translation gains (losses) ( 11,404 ) ( 792 ) ( 12,196 ) Net unrealized investment gains (losses) on available-for-sale securities ( 240,868 ) - ( 240,868 ) Total permanent stockholders’ equity 1,721,499 288,035 2,009,534 Total liabilities and temporary and permanent stockholders’ equity $ 15,348,877 $ ( 730,730 ) $ 14,618,147 The impact on the Company's previously reported condensed consolidated statement of income for the three months ended March 31, 2022 is as follows: Condensed Consolidated Statement of Income Three months ended March 31, 2022 As Previously Reported (Unaudited) Adoption Impacts (Unaudited) As Adjusted (Unaudited) (In thousands) Revenues: Direct premiums $ 798,666 $ - $ 798,666 Ceded premiums ( 399,885 ) - ( 399,885 ) Net premiums 398,781 - 398,781 Commissions and fees 251,800 - 251,800 Investment income net of investment expenses 34,420 - 34,420 Interest expense on surplus note ( 15,515 ) - ( 15,515 ) Net investment income 18,905 - 18,905 Realized investment gains (losses) 577 - 577 Other investment gains (losses) 174 - 174 Investment gains (losses) 751 - 751 Other, net 20,989 - 20,989 Total revenues 691,226 - 691,226 Benefits and expenses: Benefits and claims 187,069 ( 18,781 ) 168,288 Future policy benefits remeasurement (gain) loss - ( 1,272 ) ( 1,272 ) Amortization of deferred policy acquisition costs 86,063 ( 22,840 ) 63,223 Sales commissions 133,924 - 133,924 Insurance expenses 59,509 - 59,509 Insurance commissions 7,721 - 7,721 Contract acquisition costs 20,649 - 20,649 Interest expense 6,853 - 6,853 Other operating expenses 86,435 - 86,435 Total benefits and expenses 588,223 ( 42,893 ) 545,330 Income before income taxes 103,003 42,893 145,896 Income taxes 24,239 9,273 33,512 Net income 78,764 33,620 112,384 Net income (loss) attributable to noncontrolling interests ( 2,655 ) - ( 2,655 ) Net income attributable to Primerica, Inc. $ 81,419 $ 33,620 $ 115,039 Earnings per share attributable to common stockholders: Basic earnings per share $ 2.07 $ 0.85 $ 2.92 Diluted earnings per share $ 2.06 $ 0.85 $ 2.91 Weighted-average shares used in computing earnings Basic 39,221 - 39,221 Diluted 39,332 - 39,332 |
Schedule of Transition Impact on Liability for Future Policy Benefits | The Company adopted ASU 2018-12 using the modified retrospective transition method. As part of the transition disclosures ASU 2018-12 requires a reconciliation of the adoption impacts to the Company’s LFPB, separated between the changes in the present value of expected net premiums and the present value of expected future policy benefits as of the Transition Date. Theses balances are presented before reinsurance and income taxes for the Term Life Insurance segment, which makes up the substantial portion of the Company's long-duration insurance contract liabilities. Transition Impact at January 1, 2021 (In thousands) Present Value of Expected Premiums Term Life Balance at December 31, 2020 $ 10,867,358 Impact to retained earnings from capping Transition Date net premium ratio ( 137,112 ) Balance at original discount rate 10,730,246 Effect of changes in discount rate assumptions 2,774,082 Balance at January 1, 2021 $ 13,504,328 Present Value of Expected Future Policy Benefits Balance at December 31, 2020 $ 17,445,700 Effect of changes in discount rate assumptions 5,624,494 Balance at January 1, 2021 $ 23,070,194 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Assets and Profit or Loss by Segment | Notable information included in profit or loss by segment was as follows: Three months ended March 31, 2023 2022 (In thousands) Revenues: Term life insurance segment $ 421,069 $ 406,983 Investment and savings products segment 210,202 241,039 Senior health segment 18,710 5,831 Corporate and other distributed products segment 40,055 37,373 Total revenues $ 690,036 $ 691,226 Net investment income: Term life insurance segment $ - $ - Investment and savings products segment - - Senior health segment - - Corporate and other distributed products segment 31,065 18,905 Total net investment income $ 31,065 $ 18,905 Amortization of DAC: Term life insurance segment $ 65,503 $ 61,369 Investment and savings products segment 1,493 1,446 Senior health segment - - Corporate and other distributed products segment 362 408 Total amortization of DAC $ 67,358 $ 63,223 Non-cash share-based compensation expense: Term life insurance segment $ 1,850 $ 2,125 Investment and savings products segment 993 1,204 Senior health segment 160 - Corporate and other distributed products segment 9,071 9,108 Total non-cash share-based compensation expense $ 12,074 $ 12,437 Income (loss) before income taxes: Term life insurance segment $ 126,736 $ 118,576 Investment and savings products segment 56,106 67,039 Senior health segment ( 3,762 ) ( 23,085 ) Corporate and other distributed products segment ( 15,943 ) ( 16,634 ) Total income (loss) before income taxes $ 163,137 $ 145,896 |
Total Assets by Segment | Total assets by segment were as follows: March 31, 2023 December 31, 2022 (In thousands) Assets: Term life insurance segment $ 6,506,068 $ 6,433,880 Investment and savings products segment (1) 2,454,810 2,424,256 Senior health segment 429,884 431,993 Corporate and other distributed products segment 5,404,930 5,328,018 Total assets $ 14,795,692 $ 14,618,147 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 124.9 million and $ 118.5 million as of March 31, 2023 and December 31, 2022 , respectively. |
Long Lived Assets and Continuing Operations by Country | Geographical Information. Results of operations by country and long-lived assets, primarily tangible assets reported in other assets in our unaudited condensed consolidated balance sheets and condensed consolidated statements of income, were as follows: Three months ended March 31, 2023 2022 (In thousands) Revenues by country: United States $ 603,850 $ 586,153 Canada 86,186 105,073 Total revenues $ 690,036 $ 691,226 March 31, 2023 December 31, 2022 (In thousands) Long-lived assets by country: United States $ 48,835 $ 49,637 Canada 2,689 2,803 Other 215 217 Total long-lived assets $ 51,739 $ 52,657 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | The period-end amortized cost, gross unrealized gains and losses, and fair value of available-for-sale securities were as follows: March 31, 2023 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 9,976 $ 26 $ ( 571 ) $ 9,431 Foreign government 157,424 1,234 ( 9,053 ) 149,605 States and political subdivisions 138,835 239 ( 15,799 ) 123,275 Corporates 1,701,254 5,056 ( 148,291 ) 1,558,019 Residential mortgage-backed securities 476,070 456 ( 67,980 ) 408,546 Commercial mortgage-backed securities 142,789 43 ( 15,114 ) 127,718 Other asset-backed securities 196,648 410 ( 15,026 ) 182,032 Total fixed-maturity securities 2,822,996 7,464 ( 271,834 ) 2,558,626 Short-term investments 70,185 7 ( 5 ) 70,187 Total fixed-maturity and short-term investments $ 2,893,181 $ 7,471 $ ( 271,839 ) $ 2,628,813 December 31, 2022 Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) Securities available-for-sale, carried at fair value: Fixed-maturity securities: U.S. government and agencies $ 31,217 $ 18 $ ( 767 ) $ 30,468 Foreign government 163,725 780 ( 11,590 ) 152,915 States and political subdivisions 142,189 112 ( 20,056 ) 122,245 Corporates 1,665,962 2,439 ( 171,552 ) 1,496,849 Residential mortgage-backed securities 473,309 370 ( 71,949 ) 401,730 Commercial mortgage-backed securities 139,306 3 ( 16,342 ) 122,967 Other asset-backed securities 185,707 108 ( 17,533 ) 168,282 Total fixed-maturity securities 2,801,415 3,830 ( 309,789 ) 2,495,456 Short-term investments 69,393 20 ( 7 ) 69,406 Total fixed-maturity and short-term investments $ 2,870,808 $ 3,850 $ ( 309,796 ) $ 2,564,862 |
Fixed-maturity Securities Classified by Contractual Maturity Date | The scheduled maturity distribution of the available-for-sale (“AFS”) fixed-maturity portfolio as of March 31, 2023 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 154,148 $ 152,676 Due after one year through five years 770,897 733,708 Due after five years through 10 years 783,681 697,131 Due after 10 years 298,763 256,815 2,007,489 1,840,330 Mortgage- and asset-backed securities 815,507 718,296 Total AFS fixed-maturity securities $ 2,822,996 $ 2,558,626 |
Costs and Fair Value of Securities Classified as Trading Securities | The cost and fair value of the securities classified as trading securities were as follows: March 31, 2023 December 31, 2022 Cost Fair value Cost Fair value (In thousands) Fixed-maturity securities $ 19,033 $ 18,497 $ 4,229 $ 3,698 |
Net Investment Income | Investment Income. The components of net investment income were as follows: Three months ended March 31, 2023 2022 (In thousands) Fixed-maturity securities (available-for-sale) $ 25,806 $ 20,889 Fixed-maturity security (held-to-maturity) 16,435 15,515 Equity securities 380 387 Policy loans and other invested assets ( 71 ) 102 Cash and cash equivalents 5,128 125 Total return on deposit asset underlying 10% coinsurance agreement (1) 2,049 ( 1,510 ) Gross investment income 49,727 35,508 Investment expenses ( 2,227 ) ( 1,088 ) Investment income net of investment expenses 47,500 34,420 Interest expense on surplus note ( 16,435 ) ( 15,515 ) Net investment income $ 31,065 $ 18,905 (1) Includes ($ 0.3 ) million and $( 2.1 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three months ended March 31, 2023 and 2022, respectively. |
Schedule of Components of Investment Gains (Losses) | The components of investment gains (losses), as well as details on gross realized investment gains (losses) and other investment gains (losses) were as follows: Three months ended March 31, 2023 2022 (In thousands) Realized investment gains (losses): Gross gains from sales of available-for-sale securities fixed maturity securities $ 49 $ 602 Gross losses from sales of available-for-sale fixed maturity securities ( 1,034 ) ( 25 ) Net realized investment gains (losses): ( 985 ) 577 Other investment gains (losses): Credit losses impairment of available-for-sale securities ( 2,160 ) 81 Market gains (losses) recognized in net income during the period on equity securities ( 1,475 ) 115 Gains (losses) from bifurcated options 8 - Gains (losses) on trading securities 4 ( 22 ) Other investment gains (losses): ( 3,623 ) 174 Investment gains (losses) $ ( 4,608 ) $ 751 |
Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities | The proceeds from sales or other redemptions of available-for-sale securities were as follows: Three months ended March 31, 2023 2022 (In thousands) Proceeds from sales or other redemptions $ 85,430 $ 139,113 |
Schedule of Securities in Unrealized Loss Position | The following table summarizes all available-for-sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2023, aggregated by major security type and length of time such securities have continuously been in an unrealized loss position: March 31, 2023 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 3,920 $ ( 99 ) $ 5,173 $ ( 472 ) Foreign government 30,377 ( 399 ) 91,887 ( 8,654 ) States and political subdivisions 10,178 ( 277 ) 102,623 ( 15,522 ) Corporates 457,448 ( 12,678 ) 926,057 ( 135,613 ) Residential mortgage-backed securities 40,398 ( 3,342 ) 348,490 ( 64,638 ) Commercial mortgage-backed securities 27,240 ( 884 ) 95,244 ( 14,230 ) Other asset-backed securities 29,901 ( 1,243 ) 117,076 ( 13,783 ) Total fixed-maturity securities 599,462 ( 18,922 ) 1,686,550 ( 252,912 ) Short-term investments: U.S. government and agencies 15,835 ( 4 ) - - Foreign government 1,756 ( 1 ) - - Total short-term investments 17,591 ( 5 ) - - Total fixed-maturity securities and short-term investments $ 617,053 $ ( 18,927 ) $ 1,686,550 $ ( 252,912 ) December 31, 2022 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (Dollars in thousands) Fixed-maturity securities: U.S. government and agencies $ 4,927 $ ( 204 ) $ 25,209 $ ( 563 ) Foreign government 97,094 ( 4,430 ) 38,085 ( 7,160 ) States and political subdivisions 71,131 ( 10,666 ) 44,324 ( 9,390 ) Corporates 974,931 ( 69,726 ) 452,541 ( 101,826 ) Residential mortgage-backed securities 187,158 ( 22,171 ) 201,595 ( 49,778 ) Commercial mortgage-backed securities 65,165 ( 5,069 ) 56,799 ( 11,273 ) Other asset-backed securities 81,907 ( 5,807 ) 72,977 ( 11,726 ) Total fixed-maturity securities 1,482,313 ( 118,073 ) 891,530 ( 191,716 ) Short-term investments: U.S. government and agencies 28,379 ( 5 ) - - Foreign government 1,744 ( 2 ) - - Total short-term investments 30,123 ( 7 ) - - Total fixed-maturity securities and short-term investments $ 1,512,436 $ ( 118,080 ) $ 891,530 $ ( 191,716 ) |
Schedule of Securities in Allowance for Credit Losses | The rollforward of the allowance for credit losses on available-for-sale securities was as follows: Three months ended March 31, 2023 2022 (In thousands) Allowance for credit losses, beginning of period $ - $ 816 Additions to the allowance for credit losses on securities for which credit losses were not previously recorded - - Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period - ( 81 ) Write-offs charged against the allowance, if any - - Allowance for credit losses, end of period $ - $ 735 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis | The estimated fair value and hierarchy classifications for assets and liabilities that are measured at fair value on a recurring basis were as follows: March 31, 2023 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 9,431 $ - $ 9,431 Foreign government - 149,605 - 149,605 States and political subdivisions - 123,275 - 123,275 Corporates 3,960 1,554,059 - 1,558,019 Mortgage- and asset-backed securities: Residential mortgage-backed securities - 408,546 - 408,546 Commercial mortgage-backed securities - 127,718 - 127,718 Other asset-backed securities - 179,716 2,316 182,032 Total available-for-sale fixed-maturity securities 3,960 2,552,350 2,316 2,558,626 Short-term investments - 70,187 - 70,187 Total available-for-sale securities 3,960 2,622,537 2,316 2,628,813 Equity securities 31,305 986 1,693 33,984 Trading securities - 18,497 - 18,497 Cash and cash equivalents 494,093 20,997 - 515,090 Separate accounts - 2,329,968 - 2,329,968 Total fair value assets $ 529,358 $ 4,992,985 $ 4,009 $ 5,526,352 Fair value liabilities: Separate accounts $ - $ 2,329,968 $ - $ 2,329,968 Total fair value liabilities $ - $ 2,329,968 $ - $ 2,329,968 December 31, 2022 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 30,468 $ - $ 30,468 Foreign government - 152,915 - 152,915 States and political subdivisions - 122,245 - 122,245 Corporates 3,586 1,493,263 - 1,496,849 Mortgage-and asset-backed securities: Residential mortgage-backed securities - 401,730 - 401,730 Commercial mortgage-backed securities - 122,967 - 122,967 Other asset-backed securities - 168,282 - 168,282 Total available-for-sale fixed-maturity securities 3,586 2,491,870 - 2,495,456 Short-term investments - 69,406 - 69,406 Total available-for-sale securities 3,586 2,561,276 - 2,564,862 Equity securities 32,727 967 1,710 35,404 Trading securities - 3,698 - 3,698 Cash and cash equivalents 489,240 - - 489,240 Separate accounts - 2,305,717 - 2,305,717 Total fair value assets $ 525,553 $ 4,871,658 $ 1,710 $ 5,398,921 Fair value liabilities: Separate accounts $ - $ 2,305,717 $ - $ 2,305,717 Total fair value liabilities $ - $ 2,305,717 $ - $ 2,305,717 |
Roll forward of Level 3 Assets Measured on Recurring Basis | The roll-forward of the Level 3 assets measured at fair value on a recurring basis was as follows: Three months ended March 31, 2023 2022 (In thousands) Level 3 assets, beginning of period $ 1,710 $ 3,596 Net unrealized gains (losses) included in other comprehensive income - ( 2 ) Realized gains (losses) and accretion (amortization) recognized in earnings ( 17 ) ( 207 ) Purchases 2,316 5,903 Sales - - Settlements - - Transfers into Level 3 - 1,399 Transfers out of Level 3 - - Level 3 assets, end of period $ 4,009 $ 10,689 |
Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of our financial instruments were as follows: March 31, 2023 December 31, 2022 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 2,558,626 $ 2,558,626 $ 2,495,456 $ 2,495,456 Fixed-maturity security (held-to-maturity) (3) 1,460,000 1,388,411 1,444,920 1,340,265 Short-term investments (available-for-sale) 70,187 70,187 69,406 69,406 Equity securities 33,984 33,984 35,404 35,404 Trading securities 18,497 18,497 3,698 3,698 Policy loans (3) 37,554 37,554 35,940 35,940 Deposit asset underlying 10 % coinsurance agreement (3) 215,871 215,871 224,371 224,371 Separate accounts 2,329,968 2,329,968 2,305,717 2,305,717 Liabilities: Notes payable (1) (2) $ 593,106 $ 496,098 $ 592,905 $ 491,753 Surplus note (1) (3) 1,459,565 1,380,029 1,444,469 1,333,047 Separate accounts 2,329,968 2,329,968 2,305,717 2,305,717 (1) Carrying value amounts shown are net of issuance costs . (2) Classified as a Level 2 fair value measurement. (3) Classified as a Level 3 fair value measurement. |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | Details on in-force life insurance were as follows: March 31, 2023 December 31, 2022 (Dollars in thousands) Direct life insurance in-force $ 925,084,773 $ 919,081,738 Amounts ceded to other companies ( 792,325,968 ) ( 787,907,229 ) Net life insurance in-force $ 132,758,805 $ 131,174,509 Percentage of reinsured life insurance in-force 86 % 86 % |
Reinsurance Recoverable and Financial Strength Ratings by Reinsurer | Reinsurance recoverables as of March 31, 2023 and December 31, 2022 include ceded reserve balances, ceded claim liabilities, and ceded claims paid. Reinsurance recoverables and financial strength ratings by reinsurer were as follows: March 31, 2023 December 31, 2022 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Swiss Re Life and Health America, Inc. (Novated from Pecan Re Inc.) (1) $ 2,432,148 A+ $ 2,403,180 A+ Munich Re of Malta (1) (2) 249,328 NR $ 245,521 NR American Health and Life Insurance Company (1) 150,874 B++ $ 148,573 B++ SCOR Global Life Reinsurance Companies (3) 126,485 A+ 121,408 A+ Swiss Re Life & Health America Inc. (4) 44,624 A+ 57,439 A+ RGA Reinsurance Company 41,213 A+ 47,110 A+ Korean Reinsurance Company 35,602 A 42,169 A Munich American Reassurance Company 34,942 A+ 41,450 A+ Hannover Life Reassurance Company 20,297 A+ 18,504 A+ TOA Reinsurance Company 16,938 A 18,043 A All other reinsurers 30,186 - 35,936 - Allowance for credit losses ( 3,563 ) ( 2,936 ) Reinsurance recoverables $ 3,179,074 $ 3,176,397 NR – not rated (1) Reinsurance recoverables includes balances ceded under coinsurance transactions of term life insurance policies that were in-force as of December 31, 2009. Amounts shown are net of their share of the reinsurance recoverables from other reinsurers. Arrangements with these reinsurers include collateral trust agreements held in support of reinsurance recoverables. (2) Entity is rated AA- by S&P. (3) Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. (4) Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc. |
Allowance for Credit Loss on Reinsurance Recoverable | The rollforward of the allowance for credit losses on reinsurance recoverables were as follows: Three months ended March 31, 2023 2022 (In thousands) Balance, beginning of period $ 2,936 $ 2,942 Current period provision for expected credit losses 627 141 Balance, at the end of period $ 3,563 $ 3,083 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Balances and Activity in DAC Roll Forward | The balances and activity in DAC were as follows: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Term Life Segregated Funds (Canada) Term Life Segregated Funds (Canada) Balance, beginning of period $ 3,111,675 $ 62,341 $ 2,872,816 $ 65,411 Capitalization 127,293 1,834 507,834 7,003 Amortization ( 65,503 ) ( 1,493 ) ( 252,352 ) ( 5,581 ) Foreign exchange translation and other 830 181 ( 16,623 ) ( 4,492 ) Balance, at the end of period $ 3,174,295 $ 62,863 $ 3,111,675 $ 62,341 |
Reconciliation of DAC | Reconciliation of DAC by product was as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 3,174,295 $ 3,111,675 Segregated Funds (Canada) 62,863 62,341 Other 19,687 20,013 Total DAC, net $ 3,256,845 $ 3,194,029 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Separate Accounts Disclosure [Abstract] | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment | The following table represents the fair value of assets supporting separate accounts assets by major investment category: March 31, 2023 December 31, 2022 (In thousands) Fixed-income securities $ 850,880 $ 796,384 Equity securities 1,358,331 1,340,541 Cash and cash equivalents 130,713 181,162 Due to/from funds ( 9,983 ) ( 12,399 ) Other 27 29 Total separate accounts assets $ 2,329,968 $ 2,305,717 |
Schedule of Balances and Changes in Seperate Account Liabilities | The following table represents the balances of and changes in separate account liabilities: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Separate account liabilities balance, beginning of period $ 2,305,717 $ 2,799,992 Premiums and deposits 77,897 253,982 Surrenders and withdrawals ( 108,494 ) ( 293,278 ) Investment performance 67,262 ( 202,997 ) Management fees and other charges ( 15,140 ) ( 62,281 ) Foreign exchange translation 2,726 ( 189,701 ) Separate accounts liabilities balance, end of period $ 2,329,968 $ 2,305,717 Cash surrender value $ 2,293,074 $ 2,268,436 |
Policy Claims and Other Benef_2
Policy Claims and Other Benefits Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Schedule of Liability For Future Policy Benefits and Unpaid Claims | Changes in policy claims incurred and other benefits payable were as follows: Three months ended March 31, 2023 2022 (In thousands) Policy claims and other benefits payable, beginning of period $ 538,250 $ 585,382 Less reinsured policy claims and other benefits payable 542,613 638,007 Net balance, beginning of period ( 4,363 ) ( 52,625 ) Incurred related to current year 65,820 77,232 Incurred related to prior years (1) ( 2,732 ) ( 4,547 ) Total incurred 63,088 72,685 Claims paid related to current year, net of reinsured policy claims received ( 141,557 ) ( 161,818 ) Reinsured policy claims received related to prior years, net of claims paid 8,422 64,532 Total paid ( 133,135 ) ( 97,286 ) Foreign currency translation 38 ( 12 ) Net balance, end of period ( 74,372 ) ( 77,238 ) Add reinsured policy claims and other benefits payable 572,855 652,088 Balance, end of period $ 498,483 $ 574,850 (1) Includes the difference between our estimate of claims incurred but not yet reported as of period-end and the actual incurred claims reported after period-end. |
Future Policy Benefits (Tables)
Future Policy Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Liability For Future Policy Benefits And Unpaid Claims And Claims Adjustment Expense [Abstract] | |
Schedule of Balances and Changes in Present Value of Expected Net Premiums and Present Value of Expected Future Policy Benefits Underlying LFPB | The following tables summarize balances and changes in the present value of expected net premiums and the present value of expected future policy benefits underlying the LFPB: Three months ended Year ended March 31, 2023 December 31, 2022 (In thousands) Present Value of Expected Net Premiums Term Life Balance at current discount rate, beginning of period $ 13,053,386 $ 14,988,852 Balance at original discount rate, beginning of period 13,521,221 12,800,441 Effect of changes in cash flow assumptions - 26,090 Effect of actual variances from expected experience ( 66,059 ) 8,653 Adjusted balance, beginning of period 13,455,162 12,835,184 Issuances 465,861 1,892,716 Interest accrual at original discount rate 130,130 486,436 Net premiums collected ( 414,681 ) ( 1,623,000 ) Foreign currency translation 1,326 ( 70,115 ) Expected net premiums at original discount rate, end of period 13,637,798 13,521,221 Effect of changes in discount rate assumptions ( 117,304 ) ( 467,835 ) Expected net premiums at current discount rate, end of period $ 13,520,494 $ 13,053,386 Present Value of Expected Future Policy Benefits Balance at current discount rate, beginning of period $ 19,143,253 $ 23,309,576 Balance at original discount rate, beginning of period 19,706,818 18,991,175 Effect of changes in cash flow assumptions - 29,915 Effect of actual variances from expected experience ( 58,593 ) 21,101 Adjusted balance, beginning of period 19,648,225 19,042,191 Issuances 465,885 1,892,730 Interest Accrual at original discount rate 206,814 796,017 Benefit payments ( 467,008 ) ( 1,915,518 ) Foreign currency translation 2,016 ( 108,602 ) Expected future policy benefits at original discount rate, end of period 19,855,932 19,706,818 Effect of changes in discount rate assumptions 13,498 ( 563,565 ) Expected future policy benefits at current discount rate, end of period $ 19,869,430 $ 19,143,253 LFPB $ 6,348,936 $ 6,089,867 Less: reinsurance recoverables 3,154,789 3,153,121 Net LFPB, after reinsurance recoverables $ 3,194,147 $ 2,936,746 Weighted-average duration of net LFPB 7.8 7.8 |
Schedule of Reconcile LFPB | The following table reconciles the LFPB to the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 6,348,936 $ 6,089,867 Other 212,688 208,039 Total $ 6,561,624 $ 6,297,906 |
Schedule of Reconcile Reinsurance Recoverables | The following table reconciles the reinsurance recoverables to the condensed consolidated balance sheets: March 31, 2023 December 31, 2022 (In thousands) Term Life $ 3,154,789 $ 3,153,121 Other 24,285 23,276 Total $ 3,179,074 $ 3,176,397 |
Schedule of Amount of Discounted (using the original discount rate) and Undiscounted Expected Gross Premiums and Expected Future Benefit Payments | The amount of discounted (using the original discount rate) and undiscounted expected gross premiums and expected future benefit payments were as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life Undiscounted Discounted Undiscounted Discounted Expected future benefit payments $ 32,216,059 $ 19,869,430 $ 31,904,059 $ 19,143,253 Expected future gross premiums $ 37,480,296 $ 25,902,466 $ 37,135,605 $ 25,070,802 |
Schedule of Amount of Revenue and Interest Recognized | The amount of revenue and interest recognized in our unaudited condensed consolidated statements of income were as follows: Three months ended March 31, 2023 2022 (In thousands) Term Life Gross premiums $ 812,880 $ 793,254 Interest accretion (expense) $ ( 76,684 ) $ ( 76,496 ) |
Schedule of Weighted Average Rates | The weighted-average rates were as follows: March 31, 2023 December 31, 2022 (In thousands) Term Life Original discount rate 4.95 % 5.00 % Current discount rate 4.91 % 5.28 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders Equity Note [Abstract] | |
Reconciliation of Number of Shares of Common Stock | A reconciliation of the number of shares of our outstanding common stock follows: Three months ended March 31, 2023 2022 (In thousands) Common stock, beginning of period $ 36,824 $ 39,368 Shares issued for stock options exercised 43 - Shares of common stock issued upon lapse of sales restrictions on 129 132 Common stock retired ( 589 ) ( 748 ) Common stock, end of period $ 36,407 $ 38,752 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The calculation of basic and diluted EPS was as follows: Three months ended March 31, 2023 2022 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income attributable to Primerica, Inc. $ 125,106 $ 115,039 Income attributable to unvested participating securities ( 565 ) ( 476 ) Net income used in calculating basic EPS $ 124,541 $ 114,563 Denominator: Weighted-average vested shares 36,710 39,221 Basic EPS $ 3.39 $ 2.92 Diluted EPS: Numerator: Net income attributable to Primerica, Inc. $ 125,106 $ 115,039 Income attributable to unvested participating securities ( 564 ) ( 475 ) Net income used in calculating diluted EPS $ 124,542 $ 114,564 Denominator: Weighted-average vested shares 36,710 39,221 Dilutive effect of incremental shares to be issued for 94 111 Weighted-average shares used in calculating diluted EPS 36,804 39,332 Diluted EPS $ 3.38 $ 2.91 |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Impact of Equity Awards Granted | The impact of equity awards granted under the OIP are as follows: Three months ended March 31, 2023 2022 (In thousands) Equity awards expense recognized $ 12,125 $ 12,181 Equity awards expense deferred 2,523 2,377 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of other comprehensive income (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended March 31, 2023 2022 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) $ 998 $ 3,289 Income tax expense (benefit) on unrealized foreign currency - - Change in unrealized foreign currency translation gains $ 998 $ 3,289 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period $ 38,549 $ ( 164,937 ) Income tax expense (benefit) on unrealized holding gains 8,316 ( 35,241 ) Change in unrealized holding gains (losses) on available-for-sale 30,233 ( 129,696 ) Reclassification from accumulated OCI to net income for (gains) 3,137 ( 658 ) Income tax (expense) benefit on (gains) losses reclassified 659 ( 138 ) Reclassification from accumulated OCI to net income for (gains) 2,478 ( 520 ) Change in unrealized gains (losses) on available-for-sale $ 32,711 $ ( 130,216 ) Effect of change in discount rate assumptions on the LFPB: Change in effect in discount rate assumptions on the LFPB before income taxes $ ( 182,045 ) $ 821,904 Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income ( 39,071 ) 175,763 Change in effect in discount rate assumptions on the LFPB, net of income taxes $ ( 142,974 ) $ 646,141 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenues from Contracts | The disaggregation of our revenues from contracts with customers were as follows: Three months ended March 31, 2023 2022 (In thousands) Term Life Insurance segment revenues: Other, net $ 12,233 $ 12,175 Total segment revenues from contracts with customers 12,233 12,175 Revenues from sources other than contracts with customers 408,836 394,808 Total Term Life Insurance segment revenues $ 421,069 $ 406,983 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 72,388 $ 103,242 Asset-based revenues 98,104 97,355 Account-based revenues 22,790 21,541 Other, net 3,120 3,144 Total segment revenues from contracts with customers 196,402 225,282 Revenues from sources other than contracts 13,800 15,757 Total Investment and Savings Products segment revenues $ 210,202 $ 241,039 Senior Health segment revenues: Commissions and fees $ 15,755 $ 1,278 Other, net 2,955 4,553 Total Senior Health segment revenues $ 18,710 $ 5,831 Corporate and Other Distributed Products segment revenues: Commissions and fees $ 8,710 $ 12,627 Other, net 1,199 1,117 Total segment revenues from contracts with customers 9,909 13,744 Revenues from sources other than contracts with customers 30,146 23,629 Total Corporate and Other Distributed Products segment revenues $ 40,055 $ 37,373 |
Summary of Renewal Commissions Receivable | Activity in the Renewal commissions receivable account was as follows: Three months ended March 31, 2023 2022 (In thousands) Senior Health segment: Balance, beginning of period $ 139,399 $ 172,308 Commissions revenue 9,062 12,849 Less: collections ( 14,262 ) ( 12,314 ) Tail revenue adjustments from change in estimate - ( 19,060 ) Balance, at the end of period $ 134,199 $ 153,783 Corporate and Other Distributed Products segments: Balance, beginning of period $ 60,644 $ 59,443 Commissions revenue 5,370 5,643 Less: collections ( 5,804 ) ( 5,694 ) Balance, at the end of period $ 60,210 $ 59,392 |
Description of Business, Basi_4
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 01, 2022 | Jul. 01, 2021 | Jan. 01, 2021 | Mar. 31, 2023 | |
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | ||||
Future policy benefits reserve percentage of net premium ratio | 100% | |||
Percentage of net premium ratio capped | 100% | |||
Change in accounting principle, accounting standards update, adopted | true | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 01, 2023 | |||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | |||
Reduction to AOCI net of income tax | $ 1,500 | |||
Cumulative decrease to AOCI upon application of market observable rates | $ 11.7 | |||
Adjustment amount necessary at transition date to cap net premium ratio for a cohort | $ 23 | |||
Separate accounts contract's minimum guaranteed payments, percentage of policyholder's contribution | 75% | |||
Separate accounts contract minimum maturity, years | 10 years | |||
Separate accounts contract maximum maturity, date | Dec. 31, 2070 | |||
Separate accounts contract maturity, years | 20 years | |||
Separate accounts contracts minimum guaranteed payments, decline in percentage of policyholder's contribution | 25% | |||
Strategic retirement income fund maturity description | SRIF mature when the policyholder reaches age 100, which is a minimum of 20 years after issue | |||
Term Life Insurance Segment [Member] | ||||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | ||||
Percentage of net premium ratio capped | 100% | |||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | |||
Etelequote Bermuda [Member] | ||||
Organization Consolidation Basis Of Presentation Business Description And Accounting Policies [Line Items] | ||||
Business acquisition, date of acquisition agreement | Jul. 01, 2021 | |||
Percentage of interest acquired | 80% | |||
Remaining percentage of interest acquired | 20% | |||
Business acquisition, effective date of acquisition | Jul. 01, 2022 |
Description of Business, Basi_5
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Summary of Restated Permanent and Temporary Stockholders' Equity from Date of Apotion (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance, beginning of period | $ 2,009,534 | $ 911,330 | $ 911,330 | ||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | ||||
Repurchases of common stock | $ (85,300) | ||||
Net income | $ 125,106 | 115,039 | |||
Net income (loss) attributable to noncontrolling interests | (2,655) | ||||
Balance, end of period | 1,921,101 | 1,921,101 | 1,434,895 | 2,009,534 | $ 911,330 |
Common Stock [Member] | |||||
Balance, beginning of period | 368 | 394 | 394 | 393 | |
Net issuance of common stock | 2 | 1 | 2 | 2 | |
Repurchases of common stock | (6) | (7) | (28) | (1) | |
Balance, end of period | 364 | 364 | 388 | 368 | 394 |
Paid-in Capital [Member] | |||||
Balance, beginning of period | 5,224 | 5,224 | |||
Share-based compensation | 16,622 | 14,820 | 33,624 | 31,043 | |
Net issuance of common stock | (2) | (1) | (2) | (2) | |
Repurchases of common stock | (16,620) | (20,043) | (41,079) | (25,817) | |
Redemption of noncontrolling interest in consolidated entities | 2,233 | ||||
Balance, end of period | 5,224 | ||||
Retained Earnings [Member] | |||||
Balance, beginning of period | 2,130,935 | 2,074,111 | 2,074,111 | 1,682,939 | |
Repurchases of common stock | (80,360) | (83,813) | (320,332) | ||
Net income | 125,106 | 115,039 | 460,939 | 465,808 | |
Dividends | (23,910) | (21,645) | (83,783) | (74,636) | |
Balance, end of period | 2,151,771 | 2,151,771 | 2,083,692 | 2,130,935 | 2,074,111 |
Accumulated Other Comprehensive Income (Loss), Net of Income Tax [Member] | |||||
Balance, beginning of period | (121,769) | (1,168,399) | (1,168,399) | (1,380,912) | |
Effect of change in discount rate assumptions on the liability for future policy benefits | (142,974) | 646,141 | 1,372,022 | 269,895 | |
Change in foreign currency translation adjustment | 998 | 3,289 | (20,747) | 6,973 | |
Change in net unrealized investment gains (losses) during the period | 32,711 | (130,216) | (304,645) | (64,355) | |
Balance, end of period | $ (231,034) | (231,034) | (649,185) | (121,769) | (1,168,399) |
Redeemable Noncontrolling Interests in Consolidated Entities/Temporary Stockholders' Equity [Member] | |||||
Balance, beginning of period | 7,271 | 7,271 | |||
Acquisition of noncontrolling interest | 8,438 | ||||
Net income (loss) attributable to noncontrolling interests | (2,655) | (5,038) | (1,377) | ||
Change in noncontrolling interests in consolidated entities, net | 210 | ||||
Redemption of noncontrolling interest in consolidated entities | (2,233) | ||||
Balance, end of period | 4,616 | 7,271 | |||
As Previously Reported [Member] | |||||
Balance, beginning of period | 1,721,499 | ||||
Net income | 81,419 | ||||
Net income (loss) attributable to noncontrolling interests | (2,655) | ||||
Balance, end of period | 1,721,499 | ||||
As Previously Reported [Member] | Retained Earnings [Member] | |||||
Balance, beginning of period | 2,074,111 | 2,074,111 | 1,705,786 | ||
Balance, end of period | 2,074,111 | ||||
As Previously Reported [Member] | Accumulated Other Comprehensive Income (Loss), Net of Income Tax [Member] | |||||
Balance, beginning of period | $ (1,168,399) | $ (1,168,399) | 129,706 | ||
Balance, end of period | (1,168,399) | ||||
Adoption Impacts [Member] | |||||
Balance, beginning of period | $ 288,035 | ||||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | us-gaap:AccountingStandardsUpdate201812Member | |||
Net income | $ 33,620 | ||||
Balance, end of period | $ 288,035 | ||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Adoption Impacts [Member] | Retained Earnings [Member] | |||||
Balance, beginning of period | $ (22,847) | ||||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | us-gaap:AccountingStandardsUpdate201812Member | |||
Balance, end of period | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Adoption Impacts [Member] | Accumulated Other Comprehensive Income (Loss), Net of Income Tax [Member] | |||||
Balance, beginning of period | $ (1,510,618) | ||||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | us-gaap:AccountingStandardsUpdate201812Member | |||
Balance, end of period |
Description of Business, Basi_6
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Summary of Impact on Previously Reported Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments: | ||||
Total available-for-sale fixed-maturity securities | $ 2,558,626 | $ 2,495,456 | ||
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,340,265) | 1,460,000 | 1,444,920 | ||
Short-term investments available-for-sale, at fair value (amortized cost: $69,393) | 70,187 | 69,406 | ||
Equity securities, at fair value (historical cost: $29,430) | 33,984 | 35,404 | ||
Trading securities, at fair value (cost: $4,229) | 18,497 | 3,698 | ||
Policy loans and other invested assets | 50,003 | 48,713 | ||
Total investments | 4,191,297 | 4,097,597 | ||
Cash and cash equivalents | 515,090 | 489,240 | ||
Accrued investment income | 22,153 | 20,885 | ||
Reinsurance recoverables | 3,179,074 | 3,176,397 | ||
Deferred policy acquisition costs, net | 3,256,845 | 3,194,029 | ||
Renewal commissions receivable | 194,409 | 200,043 | ||
Agent balances, due premiums and other receivables | 259,759 | 254,276 | ||
Goodwill | 127,707 | 127,707 | ||
Intangible assets | 182,900 | 185,525 | ||
Deferred income taxes | 106,310 | 97,972 | ||
Operating lease right-of-use assets | 38,575 | 40,500 | ||
Other assets | 391,605 | 428,259 | ||
Separate account assets | 2,329,968 | 2,305,717 | ||
Total assets | 14,795,692 | 14,618,147 | ||
Liabilities: | ||||
Future policy benefits | 6,561,624 | 6,297,906 | ||
Unearned and advance premiums | 16,703 | 15,422 | ||
Policy claims and other benefits payable | 498,483 | $ 574,850 | 538,250 | $ 585,382 |
Other policyholders’ funds | 481,561 | 483,769 | ||
Note payable | 592,905 | |||
Surplus note | 1,459,565 | 1,444,469 | ||
Income tax payable | 36,876 | |||
Deferred income taxes | 165,586 | |||
Operating lease liabilities | 43,955 | 45,995 | ||
Other liabilities | 615,780 | 580,780 | ||
Payable under securities lending | 74,452 | 100,938 | ||
Separate account liabilities | 2,329,968 | 2,305,717 | 2,799,992 | |
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||||
Total liabilities | 12,874,591 | 12,608,613 | ||
Equity attributable to Primerica, Inc.: | ||||
Common stock ($0.01 par value; authorized 500,000 shares; issued and outstanding 36,824) | 364 | 368 | ||
Retained earnings | 2,151,771 | 2,130,935 | ||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | (11,679) | 131,295 | ||
Unrealized foreign currency translation gains (losses) | (11,198) | (12,196) | ||
Net unrealized investment gains (losses) on available-for-sale securities | (208,157) | (240,868) | ||
Total permanent stockholders’ equity | 1,921,101 | $ 1,434,895 | 2,009,534 | $ 911,330 |
Total liabilities and temporary and permanent stockholders’ equity | $ 14,795,692 | 14,618,147 | ||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | |||
As Previously Reported [Member] | ||||
Investments: | ||||
Total available-for-sale fixed-maturity securities | 2,495,456 | |||
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,340,265) | 1,444,920 | |||
Short-term investments available-for-sale, at fair value (amortized cost: $69,393) | 69,406 | |||
Equity securities, at fair value (historical cost: $29,430) | 35,404 | |||
Trading securities, at fair value (cost: $4,229) | 3,698 | |||
Policy loans and other invested assets | 48,713 | |||
Total investments | 4,097,597 | |||
Cash and cash equivalents | 489,240 | |||
Accrued investment income | 20,885 | |||
Reinsurance recoverables | 4,015,909 | |||
Deferred policy acquisition costs, net | 3,081,886 | |||
Renewal commissions receivable | 200,043 | |||
Agent balances, due premiums and other receivables | 254,276 | |||
Goodwill | 127,707 | |||
Intangible assets | 185,525 | |||
Deferred income taxes | 101,333 | |||
Operating lease right-of-use assets | 40,500 | |||
Other assets | 428,259 | |||
Separate account assets | 2,305,717 | |||
Total assets | 15,348,877 | |||
Liabilities: | ||||
Future policy benefits | 7,390,800 | |||
Unearned and advance premiums | 15,422 | |||
Policy claims and other benefits payable | 538,250 | |||
Other policyholders’ funds | 483,769 | |||
Note payable | 592,905 | |||
Surplus note | 1,444,469 | |||
Income tax payable | 36,876 | |||
Deferred income taxes | 91,457 | |||
Operating lease liabilities | 45,995 | |||
Other liabilities | 580,780 | |||
Payable under securities lending | 100,938 | |||
Separate account liabilities | 2,305,717 | |||
Total liabilities | 13,627,378 | |||
Equity attributable to Primerica, Inc.: | ||||
Common stock ($0.01 par value; authorized 500,000 shares; issued and outstanding 36,824) | 368 | |||
Retained earnings | 1,973,403 | |||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Unrealized foreign currency translation gains (losses) | (11,404) | |||
Net unrealized investment gains (losses) on available-for-sale securities | (240,868) | |||
Total permanent stockholders’ equity | 1,721,499 | |||
Total liabilities and temporary and permanent stockholders’ equity | 15,348,877 | |||
Adoption Impacts [Member] | ||||
Investments: | ||||
Reinsurance recoverables | (839,512) | |||
Deferred policy acquisition costs, net | 112,143 | |||
Deferred income taxes | (3,361) | |||
Total assets | (730,730) | |||
Liabilities: | ||||
Future policy benefits | (1,092,894) | |||
Deferred income taxes | 74,129 | |||
Total liabilities | (1,018,765) | |||
Equity attributable to Primerica, Inc.: | ||||
Retained earnings | 157,532 | |||
Accumulated other comprehensive income (loss), net of income tax: | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 131,295 | |||
Unrealized foreign currency translation gains (losses) | (792) | |||
Total permanent stockholders’ equity | 288,035 | |||
Total liabilities and temporary and permanent stockholders’ equity | $ (730,730) | |||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | us-gaap:AccountingStandardsUpdate201812Member |
Description of Business, Basi_7
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Summary of Impact on Previously Reported Consolidated Balance Sheet (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Fixed-maturity security held to maturity, fair value | $ 1,388,411 | $ 1,340,265 | ||
Equity securities, at fair value, historical cost | 29,475 | 29,430 | ||
Trading securities, amortized cost | $ 19,033 | $ 4,229 | ||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized | 500,000,000 | 500,000,000 | ||
Common stock, shares issued | 36,407,000 | 36,824,000 | ||
Common stock, shares outstanding | 36,407,000 | 36,824,000 | 38,752,000 | 39,368,000 |
Fixed Maturities | ||||
Fixed-maturity securities available for sale, amortized cost | $ 2,822,996 | $ 2,801,415 | ||
Fixed-maturity security held to maturity, fair value | 1,340,265 | |||
Short-Term Investments | ||||
Fixed-maturity securities available for sale, amortized cost | $ 69,393 |
Description of Business, Basi_8
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Summary of Impact on Previously Reported Condensed Consolidated Statement of Income (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues: | |||
Direct premiums | $ 817,872 | $ 798,666 | |
Ceded premiums | (405,347) | (399,885) | |
Net premiums | 412,525 | 398,781 | |
Commissions and fees | 231,547 | 251,800 | |
Investment income net of investment expenses | 47,500 | 34,420 | |
Interest expense on surplus note | (16,435) | (15,515) | |
Net investment income | 31,065 | 18,905 | |
Realized investment gains (losses) | (985) | 577 | |
Other investment gains (losses) | (3,623) | 174 | |
Investment gains (losses) | (4,608) | 751 | |
Other, net | 19,507 | 20,989 | |
Revenues | 690,036 | 691,226 | |
Benefits and expenses: | |||
Benefits and claims | 168,702 | 168,288 | |
Future policy benefits remeasurement (gain) loss | (508) | (1,272) | $ (500) |
Amortization of deferred policy acquisition costs | 67,358 | 63,223 | |
Sales commissions | 110,874 | 133,924 | |
Insurance expenses | 61,125 | 59,509 | |
Insurance commissions | 8,138 | 7,721 | |
Contract acquisition costs | 14,984 | 20,649 | |
Interest expense | 6,690 | 6,853 | |
Other operating expenses | 89,536 | 86,435 | |
Total benefits and expenses | 526,899 | 545,330 | |
Income before income taxes | 163,137 | 145,896 | |
Income taxes | 38,031 | 33,512 | |
Net income | 125,106 | 112,384 | |
Net income (loss) attributable to noncontrolling interests | (2,655) | ||
Net income attributable to Primerica, Inc. | $ 125,106 | $ 115,039 | |
Earnings per share attributable to common stockholders: | |||
Basic earnings per share | $ 3.39 | $ 2.92 | |
Diluted earnings per share | $ 3.38 | $ 2.91 | |
Weighted-average shares used in computing earnings per share: | |||
Basic | 36,710 | 39,221 | |
Diluted | 36,804 | 39,332 | |
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | ||
As Previously Reported [Member] | |||
Revenues: | |||
Direct premiums | $ 798,666 | ||
Ceded premiums | (399,885) | ||
Net premiums | 398,781 | ||
Commissions and fees | 251,800 | ||
Investment income net of investment expenses | 34,420 | ||
Interest expense on surplus note | (15,515) | ||
Net investment income | 18,905 | ||
Realized investment gains (losses) | 577 | ||
Other investment gains (losses) | 174 | ||
Investment gains (losses) | 751 | ||
Other, net | 20,989 | ||
Revenues | 691,226 | ||
Benefits and expenses: | |||
Benefits and claims | 187,069 | ||
Amortization of deferred policy acquisition costs | 86,063 | ||
Sales commissions | 133,924 | ||
Insurance expenses | 59,509 | ||
Insurance commissions | 7,721 | ||
Contract acquisition costs | 20,649 | ||
Interest expense | 6,853 | ||
Other operating expenses | 86,435 | ||
Total benefits and expenses | 588,223 | ||
Income before income taxes | 103,003 | ||
Income taxes | 24,239 | ||
Net income | 78,764 | ||
Net income (loss) attributable to noncontrolling interests | (2,655) | ||
Net income attributable to Primerica, Inc. | $ 81,419 | ||
Earnings per share attributable to common stockholders: | |||
Basic earnings per share | $ 2.07 | ||
Diluted earnings per share | $ 2.06 | ||
Weighted-average shares used in computing earnings per share: | |||
Basic | 39,221 | ||
Diluted | 39,332 | ||
Adoption Impacts [Member] | |||
Benefits and expenses: | |||
Benefits and claims | $ (18,781) | ||
Future policy benefits remeasurement (gain) loss | (1,272) | ||
Amortization of deferred policy acquisition costs | (22,840) | ||
Total benefits and expenses | (42,893) | ||
Income before income taxes | 42,893 | ||
Income taxes | 9,273 | ||
Net income | 33,620 | ||
Net income attributable to Primerica, Inc. | $ 33,620 | ||
Earnings per share attributable to common stockholders: | |||
Basic earnings per share | $ 0.85 | ||
Diluted earnings per share | $ 0.85 | ||
Weighted-average shares used in computing earnings per share: | |||
Accounting standards update [extensible enumeration] | us-gaap:AccountingStandardsUpdate201812Member | us-gaap:AccountingStandardsUpdate201812Member |
Description of Business, Basi_9
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies - Schedule of Transition Impact on the Liability for Future Policy Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 01, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Present Value of Expected Net Premiums | |||
Balance at current discount rate, beginning of period, Present value of expected net premiums | $ 10,867,358 | $ 13,053,386 | $ 14,988,852 |
Net premiums collected, Present value of expected net premiums | (137,112) | (414,681) | (1,623,000) |
Balance at original discount rate, beginning of period, Present value of expected net premium | 10,730,246 | 13,521,221 | 12,800,441 |
Effect of changes in discount rate assumptions, Present value of expected net premiums | 2,774,082 | (117,304) | (467,835) |
Balance at current discount rate, end of period, Present value of expected net premiums | 13,504,328 | 13,520,494 | 13,053,386 |
Present Value of Expected Future Policy Benefits | |||
Balance at original discount rate, beginning of period, Present value of expected future policy benefits | 17,445,700 | 19,706,818 | 18,991,175 |
Effect of changes in discount rate assumptions, Present value of expected future policy benefits | 5,624,494 | 13,498 | (563,565) |
Expected future policy benefits at original discount rate, end of period, Present value of expected future policy benefits | $ 23,070,194 | $ 19,855,932 | $ 19,706,818 |
Segment and Geographical Info_3
Segment and Geographical Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment and Geographical Info_4
Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 690,036 | $ 691,226 | ||
Net investment income | 31,065 | 18,905 | ||
Amortization of deferred policy acquisition costs | 67,358 | 63,223 | ||
Non-cash share-based compensation expense | 12,074 | 12,437 | ||
Income (loss) before income taxes | 163,137 | 145,896 | ||
Assets | 14,795,692 | $ 14,618,147 | ||
Term Life Insurance Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 421,069 | 406,983 | ||
Amortization of deferred policy acquisition costs | 65,503 | 61,369 | ||
Non-cash share-based compensation expense | 1,850 | 2,125 | ||
Income (loss) before income taxes | 126,736 | 118,576 | ||
Assets | 6,506,068 | 6,433,880 | ||
Investment and Savings Product Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 210,202 | 241,039 | ||
Amortization of deferred policy acquisition costs | 1,493 | 1,446 | ||
Non-cash share-based compensation expense | 993 | 1,204 | ||
Income (loss) before income taxes | 56,106 | 67,039 | ||
Assets | [1] | 2,454,810 | 2,424,256 | |
Senior Health Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,710 | 5,831 | ||
Non-cash share-based compensation expense | 160 | |||
Income (loss) before income taxes | (3,762) | (23,085) | ||
Assets | 429,884 | 431,993 | ||
Corporate and Other Distributed Products Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 40,055 | 37,373 | ||
Net investment income | 31,065 | 18,905 | ||
Amortization of deferred policy acquisition costs | 362 | 408 | ||
Non-cash share-based compensation expense | 9,071 | 9,108 | ||
Income (loss) before income taxes | (15,943) | $ (16,634) | ||
Assets | $ 5,404,930 | $ 5,328,018 | ||
[1] The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 124.9 million and $ 118.5 million as of March 31, 2023 and December 31, 2022 , respectively. |
Segment and Geographical Info_5
Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investment and Savings Product Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets, excluding separate account assets | $ 124.9 | $ 118.5 |
Segment and Geographical Info_6
Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | $ 690,036 | $ 691,226 | |
Long-lived assets | 51,739 | $ 52,657 | |
United States [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 603,850 | 586,153 | |
Long-lived assets | 48,835 | 49,637 | |
Canada [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Revenues | 86,186 | $ 105,073 | |
Long-lived assets | 2,689 | 2,803 | |
Other [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Long-lived assets | $ 215 | $ 217 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 2,558,626 | $ 2,495,456 |
U.S. Government and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 9,976 | 31,217 |
Available-for-sale debt securities gross unrealized gain | 26 | 18 |
Available-for-sale debt securities, gross unrealized loss | (571) | (767) |
Available-for-sale debt securities, at fair value | 9,431 | 30,468 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 157,424 | 163,725 |
Available-for-sale debt securities gross unrealized gain | 1,234 | 780 |
Available-for-sale debt securities, gross unrealized loss | (9,053) | (11,590) |
Available-for-sale debt securities, at fair value | 149,605 | 152,915 |
States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 138,835 | 142,189 |
Available-for-sale debt securities gross unrealized gain | 239 | 112 |
Available-for-sale debt securities, gross unrealized loss | (15,799) | (20,056) |
Available-for-sale debt securities, at fair value | 123,275 | 122,245 |
Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 1,701,254 | 1,665,962 |
Available-for-sale debt securities gross unrealized gain | 5,056 | 2,439 |
Available-for-sale debt securities, gross unrealized loss | (148,291) | (171,552) |
Available-for-sale debt securities, at fair value | 1,558,019 | 1,496,849 |
Residential Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 476,070 | 473,309 |
Available-for-sale debt securities gross unrealized gain | 456 | 370 |
Available-for-sale debt securities, gross unrealized loss | (67,980) | (71,949) |
Available-for-sale debt securities, at fair value | 408,546 | 401,730 |
Commercial Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 142,789 | 139,306 |
Available-for-sale debt securities gross unrealized gain | 43 | 3 |
Available-for-sale debt securities, gross unrealized loss | (15,114) | (16,342) |
Available-for-sale debt securities, at fair value | 127,718 | 122,967 |
Other Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 196,648 | 185,707 |
Available-for-sale debt securities gross unrealized gain | 410 | 108 |
Available-for-sale debt securities, gross unrealized loss | (15,026) | (17,533) |
Available-for-sale debt securities, at fair value | 182,032 | 168,282 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 2,822,996 | 2,801,415 |
Available-for-sale debt securities gross unrealized gain | 7,464 | 3,830 |
Available-for-sale debt securities, gross unrealized loss | (271,834) | (309,789) |
Available-for-sale debt securities, at fair value | 2,558,626 | 2,495,456 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 70,185 | 69,393 |
Available-for-sale debt securities gross unrealized gain | 7 | 20 |
Available-for-sale debt securities, gross unrealized loss | (5) | (7) |
Available-for-sale debt securities, at fair value | 70,187 | 69,406 |
Fixed-Maturity Securities and Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 2,893,181 | 2,870,808 |
Available-for-sale debt securities gross unrealized gain | 7,471 | 3,850 |
Available-for-sale debt securities, gross unrealized loss | (271,839) | (309,796) |
Available-for-sale debt securities, at fair value | $ 2,628,813 | $ 2,564,862 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Total available-for-sale fixed-maturity securities | $ 2,558,626 | $ 2,495,456 |
Fixed Maturities | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, amortized cost | 154,148 | |
Due after one year through five years, amortized cost | 770,897 | |
Due after five years through 10 years, amortized cost | 783,681 | |
Due after 10 years, amortized cost | 298,763 | |
Total fixed-maturity securities with single maturity dates, amortized cost | 2,007,489 | |
Mortgage and asset-backed securities, amortized cost | 815,507 | |
Available-for-sale debt securities, amortized cost basis | 2,822,996 | $ 2,801,415 |
Due in one year or less, fair value | 152,676 | |
Due after one year through five years, fair value | 733,708 | |
Due after five years through 10 years, fair value | 697,131 | |
Due after 10 years, fair value | 256,815 | |
Total fixed-maturity securities with single maturity dates, fair value | 1,840,330 | |
Mortgage and asset-backed securities, fair value | 718,296 | |
Total available-for-sale fixed-maturity securities | $ 2,558,626 |
Investments - Costs and Fair Va
Investments - Costs and Fair Value of Securities Classified as Trading Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Total trading securities, cost | $ 19,033 | $ 4,229 |
Fixed Maturities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Total trading securities, cost | 19,033 | 4,229 |
Total trading securities, Fair value | $ 18,497 | $ 3,698 |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held-to-maturity debt security estimated unrealized holding loss | $ (71,600,000) |
Held-to-maturity debt security Credit losses | $ 0 |
LLC Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, maturity date | Dec. 31, 2030 |
Debt instrument, interest rate, stated percentage | 4.50% |
Surplus Note [Member] | |
Schedule Of Held To Maturity Securities [Line Items] | |
Debt instrument, maturity date | Dec. 31, 2030 |
Debt instrument, interest rate, stated percentage | 4.50% |
Investments - Fair Value of Inv
Investments - Fair Value of Investments on Deposit with Governmental Authorities - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Investments Debt And Equity Securities [Abstract] | ||
Fair values of investments on deposit | $ 7.1 | $ 7.1 |
Investments - Securities Lendin
Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Securities Received as Collateral [Abstract] | ||
Securities loaned, minimum collateral to loan ratio | 102% | |
Securities loaned, additional collateral requirement, decline in collateral value threshold percentage | 100% | |
Cash collateral received and reinvested | $ 74.5 | $ 100.9 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | $ 49,727 | $ 35,508 | |
Investment expenses | (2,227) | (1,088) | |
Investment income net of investment expenses | 47,500 | 34,420 | |
Interest expense on surplus note | (16,435) | (15,515) | |
Net investment income | 31,065 | 18,905 | |
Equity Securities [Member] | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | 380 | 387 | |
Policy Loans and Other Invested Assets [Member] | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | (71) | 102 | |
Cash and Cash Equivalents [Member] | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | 5,128 | 125 | |
Total return on deposit asset underlying 10% insurance agreement [Member] | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | [1] | 2,049 | (1,510) |
Available-for-Sale [Member] | Fixed Maturities | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | 25,806 | 20,889 | |
Held-to-Maturity [Member] | Fixed Maturities | |||
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income, operating | $ 16,435 | $ 15,515 | |
[1] ($ 0.3 ) million and $( 2.1 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three months ended March 31, 2023 and 2022, respectively. |
Investments - Net Investment _2
Investments - Net Investment Income (Parenthetical) (Details) - Deposit asset underlying 10% coinsurance agreement [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Net Investment Income, Reported Amounts, by Category [Line Items] | ||
Gains (losses) recognized for change in fair value of deposit asset underlying the 10% coinsurance agreement | $ (0.3) | $ (2.1) |
Percentage of coinsurance costs | 10% | 10% |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized Investment Gains Losses | Realized Investment Gains Losses |
Investments - Schedule of Compo
Investments - Schedule of Components of Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Realized Investment Gains Losses [Abstract] | ||
Gross gains from sales of available-for-sale securities fixed maturity securities | $ 49 | $ 602 |
Gross losses from sales of available-for-sale fixed maturity securities | (1,034) | (25) |
Realized investment gains (losses) | (985) | 577 |
Credit losses impairment of available-for-sale securities | (2,160) | 81 |
Market gains (losses) recognized in net income during the period on equity securities | (1,475) | 115 |
Gains (losses) from bifurcated options | 8 | 0 |
Gains (losses) on trading securities | 4 | (22) |
Other investment gains (losses) | (3,623) | 174 |
Investment gains (losses) | $ (4,608) | $ 751 |
Investments - Schedule of Proce
Investments - Schedule of Proceeds from Sales or Other Redemptions of Available-For-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Proceeds From Sale And Maturity Of Available For Sale Securities [Abstract] | ||
Proceeds from sales or other redemptions | $ 85,430 | $ 139,113 |
Investments - Accrued Interest
Investments - Accrued Interest - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Investments Debt And Equity Securities [Abstract] | |
Securities, description on accrued interest | Accrued interest is recorded in accordance with the original interest schedule of the underlying security. In the event of default, the Company’s policy is to no longer accrue interest on these securities and any remaining accrued interest will be written off. As a result, the Company has made the policy election to not record an allowance for credit losses on accrued interest. |
Investments - Schedule of Secur
Investments - Schedule of Securities in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 617,053 | $ 1,512,436 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (18,927) | (118,080) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 1,686,550 | 891,530 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (252,912) | (191,716) |
Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 599,462 | 1,482,313 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (18,922) | (118,073) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 1,686,550 | 891,530 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (252,912) | (191,716) |
Short-Term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 17,591 | 30,123 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (5) | (7) |
U.S. Government and Agencies [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 3,920 | 4,927 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (99) | (204) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 5,173 | 25,209 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (472) | (563) |
U.S. Government and Agencies [Member] | Short-Term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 15,835 | 28,379 |
Foreign Government [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 30,377 | 97,094 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (399) | (4,430) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 91,887 | 38,085 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (8,654) | (7,160) |
Foreign Government [Member] | Short-Term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,756 | 1,744 |
States and Political Subdivisions [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 10,178 | 71,131 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (277) | (10,666) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 102,623 | 44,324 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (15,522) | (9,390) |
States and Political Subdivisions [Member] | Short-Term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (4) | (5) |
Corporates [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 457,448 | 974,931 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (12,678) | (69,726) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 926,057 | 452,541 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (135,613) | (101,826) |
Corporates [Member] | Short-Term Investments | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (1) | (2) |
Residential Mortgage-backed Securities [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 40,398 | 187,158 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (3,342) | (22,171) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 348,490 | 201,595 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (64,638) | (49,778) |
Commercial Mortgage-backed Securities [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 27,240 | 65,165 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (884) | (5,069) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 95,244 | 56,799 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (14,230) | (11,273) |
Other Asset-backed Securities [Member] | Fixed Maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 29,901 | 81,907 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (1,243) | (5,807) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 117,076 | 72,977 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (13,783) | $ (11,726) |
Investments - Schedule of Sec_2
Investments - Schedule of Securities in Unrealized Loss Position (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | $ 18,927 | $ 118,080 |
Investments - Available-for-sal
Investments - Available-for-sale Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Investments Debt And Equity Securities [Abstract] | |||
Available-for-sale fixed-maturities with cost basis in excess of fair values, cost basis | $ 2,575,400 | $ 2,713.8 | |
Available-for-sale credit (gains) losses | $ 2.2 | $ (0.1) |
Investments - Rollforward of th
Investments - Rollforward of the Allowance for Credit Losses on Available-for-sale Securities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Allowance for credit losses, beginning of period | $ 816 |
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | 0 |
Additional increases or (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period | (81) |
Allowance for credit losses, end of period | $ 735 |
Investments - Loss from Closed
Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net [Abstract] | ||
Deferred loss related to closed forward contracts | $ (26.4) | $ (26.4) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | $ 2,558,626 | $ 2,495,456 | |
Equity securities | 33,984 | 35,404 | |
Cash and cash equivalents | 515,090 | 489,240 | |
Separate account assets | 2,329,968 | 2,305,717 | |
Separate account liabilities | 2,329,968 | 2,305,717 | $ 2,799,992 |
Fair Value, Recurring Measurements [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,558,626 | 2,495,456 | |
Equity securities | 33,984 | 35,404 | |
Trading securities | 18,497 | 3,698 | |
Cash and cash equivalents | 515,090 | 489,240 | |
Separate account assets | 2,329,968 | 2,305,717 | |
Assets, fair value disclosure | 5,526,352 | 5,398,921 | |
Separate account liabilities | 2,329,968 | 2,305,717 | |
Liabilities, fair value disclosure | 2,329,968 | 2,305,717 | |
Fair Value, Recurring Measurements [Member] | Level 1 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 3,960 | 3,586 | |
Equity securities | 31,305 | 32,727 | |
Cash and cash equivalents | 494,093 | 489,240 | |
Assets, fair value disclosure | 529,358 | 525,553 | |
Fair Value, Recurring Measurements [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,552,350 | 2,491,870 | |
Equity securities | 986 | 967 | |
Trading securities | 18,497 | 3,698 | |
Cash and cash equivalents | 20,997 | ||
Separate account assets | 2,329,968 | 2,305,717 | |
Assets, fair value disclosure | 4,992,985 | 4,871,658 | |
Separate account liabilities | 2,329,968 | 2,305,717 | |
Liabilities, fair value disclosure | 2,329,968 | 2,305,717 | |
Fair Value, Recurring Measurements [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,316 | 0 | |
Equity securities | 1,693 | 1,710 | |
Assets, fair value disclosure | 4,009 | 1,710 | |
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 9,431 | 30,468 | |
Fair Value, Recurring Measurements [Member] | U.S. Government and Agencies [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 9,431 | 30,468 | |
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 149,605 | 152,915 | |
Fair Value, Recurring Measurements [Member] | Foreign Government [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 149,605 | 152,915 | |
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 123,275 | 122,245 | |
Fair Value, Recurring Measurements [Member] | States and Political Subdivisions [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 123,275 | 122,245 | |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 1,558,019 | 1,496,849 | |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 1 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 3,960 | 3,586 | |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 1,554,059 | 1,493,263 | |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 408,546 | 401,730 | |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 408,546 | 401,730 | |
Fair Value, Recurring Measurements [Member] | Residential Mortgage-backed Securities [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 0 | ||
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 127,718 | 122,967 | |
Fair Value, Recurring Measurements [Member] | Commercial Mortgage-backed Securities [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 127,718 | 122,967 | |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 182,032 | 168,282 | |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 179,716 | 168,282 | |
Fair Value, Recurring Measurements [Member] | Other Asset-backed Securities [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,316 | ||
Fair Value, Recurring Measurements [Member] | Short-Term Investments | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 70,187 | 69,406 | |
Fair Value, Recurring Measurements [Member] | Short-Term Investments | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 70,187 | 69,406 | |
Fair Value, Recurring Measurements [Member] | Fixed-Maturity Securities and Short-term Investments [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,628,813 | 2,564,862 | |
Fair Value, Recurring Measurements [Member] | Fixed-Maturity Securities and Short-term Investments [Member] | Level 1 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 3,960 | 3,586 | |
Fair Value, Recurring Measurements [Member] | Fixed-Maturity Securities and Short-term Investments [Member] | Level 2 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,622,537 | 2,561,276 | |
Fair Value, Recurring Measurements [Member] | Fixed-Maturity Securities and Short-term Investments [Member] | Level 3 [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | $ 2,316 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - Fair Value, Recurring Measurements [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Level 3 assets, beginning of period | $ 1,710 | $ 3,596 |
Net unrealized gains (losses) included in other comprehensive income | (2) | |
Realized gains (losses) and accretion (amortization) recognized in earnings | (17) | (207) |
Purchases | 2,316 | 5,903 |
Transfers into Level 3 | 1,399 | |
Level 3 assets, end of period | $ 4,009 | $ 10,689 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair value security, level 1 to level 2 transfers, amount | $ 0 | $ 0 |
Fair Value security, level 1 to level 3 transfers, amount | $ 0 | $ 0 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities, at fair value | $ 2,558,626 | $ 2,495,456 | ||
Fixed-maturity security held to maturity, fair value | 1,388,411 | 1,340,265 | ||
Equity securities | 33,984 | 35,404 | ||
Separate account assets | 2,329,968 | 2,305,717 | ||
Surplus note | 1,459,565 | 1,444,469 | ||
Separate account liabilities | 2,329,968 | 2,305,717 | $ 2,799,992 | |
Fixed-maturity security (held-to-maturity) | 1,460,000 | 1,444,920 | ||
Reported Value Measurement [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities, at fair value | 2,558,626 | 2,495,456 | ||
Short-term investments (available-for-sale) | 70,187 | 69,406 | ||
Equity securities | 33,984 | 35,404 | ||
Trading securities | 18,497 | 3,698 | ||
Separate account assets | 2,329,968 | 2,305,717 | ||
Separate account liabilities | 2,329,968 | 2,305,717 | ||
Reported Value Measurement [Member] | Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Policy loans | [1] | 37,554 | 35,940 | |
Surplus note | [1],[2] | 1,459,565 | 1,444,469 | |
Fixed-maturity security (held-to-maturity) | [1] | 1,460,000 | 1,444,920 | |
Reported Value Measurement [Member] | Level 3 [Member] | Deposits [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Deposit asset underlying 10% coinsurance agreement | [1] | 215,871 | 224,371 | |
Reported Value Measurement [Member] | Level 2 [Member] | Senior Notes [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notes payable - Long term | [2],[3] | 593,106 | 592,905 | |
Estimate of Fair Value Measurement [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities, at fair value | 2,558,626 | 2,495,456 | ||
Short-term investments (available-for-sale) | 70,187 | 69,406 | ||
Equity securities | 33,984 | 35,404 | ||
Trading securities | 18,497 | 3,698 | ||
Separate account assets | 2,329,968 | 2,305,717 | ||
Separate account liabilities | 2,329,968 | 2,305,717 | ||
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Fixed-maturity security held to maturity, fair value | [1] | 1,388,411 | 1,340,265 | |
Policy loans | [1] | 37,554 | 35,940 | |
Surplus note | [1],[2] | 1,380,029 | 1,333,047 | |
Estimate of Fair Value Measurement [Member] | Level 3 [Member] | Deposits [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Deposit asset underlying 10% coinsurance agreement | [1] | 215,871 | 224,371 | |
Estimate of Fair Value Measurement [Member] | Level 2 [Member] | Senior Notes [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Notes payable - Long term | [2],[3] | $ 496,098 | $ 491,753 | |
[1] Classified as a Level 3 fair value measurement. Carrying value amounts shown are net of issuance costs Classified as a Level 2 fair value measurement. |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Carrying Values and Estimated Fair Values of Financial Instruments (Parenthetical) (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Percentage of coinsurance costs | 10% | 10% |
Reinsurance - In-force Life Ins
Reinsurance - In-force Life Insurance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Direct life insurance in-force | $ 925,084,773 | $ 919,081,738 |
Amounts ceded to other companies | (792,325,968) | (787,907,229) |
Net life insurance in-force | $ 132,758,805 | $ 131,174,509 |
Percentage of reinsured life insurance in-force | 86% | 86% |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Benefits and claims ceded to reinsurers | $ 338.9 | $ 288.4 |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables and Financial Strength Ratings by Reinsurer (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 3,179,074 | $ 3,176,397 | |
Swiss Re Life & Health America Inc. (Novated from Pecan Re, Inc.) [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1] | 2,432,148 | 2,403,180 |
Munich Re of Malta [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1],[2] | 249,328 | 245,521 |
American Health and Life Insurance Company [Member] | AM Best, B++ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1] | 150,874 | 148,573 |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [3] | 126,485 | 121,408 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [4] | 44,624 | 57,439 |
RGA Reinsurance [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 41,213 | 47,110 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 35,602 | 42,169 | |
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 34,942 | 41,450 | |
Hannover Life Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 20,297 | 18,504 | |
TOA Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 16,938 | 18,043 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 30,186 | 35,936 | |
Allowance for Credit Losses [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ (3,563) | $ (2,936) | |
[1] Reinsurance recoverables includes balances ceded under coinsurance transactions of term life insurance policies that were in-force as of December 31, 2009. Amounts shown are net of their share of the reinsurance recoverables from other reinsurers. Arrangements with these reinsurers include collateral trust agreements held in support of reinsurance recoverables. Entity is rated AA- by S&P. Includes amounts ceded to Transamerica Reinsurance Companies and fully retroceded to SCOR Global Life Reinsurance Companies. Includes amounts ceded to Lincoln National Life Insurance and fully retroceded to Swiss Re Life & Health America Inc. |
Reinsurance - Allowance for Cre
Reinsurance - Allowance for Credit Loss on Reinsurance Recoverable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Reinsurance Disclosures [Abstract] | ||
Balance, beginning of period | $ 2,936 | $ 2,942 |
Current period provision for expected credit losses | 627 | 141 |
Balance, at the end of period | $ 3,563 | $ 3,083 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Balances and Activity in DAC Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Deferred Policy Acquisition Cost [Line Items] | |||
DAC balance, beginning of period | $ 3,194,029 | ||
Amortization | (67,358) | $ (63,223) | |
DAC balance, end of period | 3,256,845 | $ 3,194,029 | |
Term Life [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
DAC balance, beginning of period | 3,111,675 | 2,872,816 | 2,872,816 |
Capitalization | 127,293 | 507,834 | |
Amortization | (65,503) | (252,352) | |
Foreign exchange translation and other | 830 | (16,623) | |
DAC balance, end of period | 3,174,295 | 3,111,675 | |
Segregated Funds (Canada) [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
DAC balance, beginning of period | 62,341 | $ 65,411 | 65,411 |
Capitalization | 1,834 | 7,003 | |
Amortization | (1,493) | (5,581) | |
Foreign exchange translation and other | 181 | (4,492) | |
DAC balance, end of period | $ 62,863 | $ 62,341 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Reconciliation of DAC (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | $ 3,256,845 | $ 3,194,029 | |
Term Life [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | 3,174,295 | 3,111,675 | $ 2,872,816 |
Segregated Funds (Canada) [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | 62,863 | 62,341 | $ 65,411 |
Other [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | $ 19,687 | $ 20,013 |
Separate Accounts - Schedule of
Separate Accounts - Schedule of Fair Value of Separate Accounts by Major Category of Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | $ 2,329,968 | $ 2,305,717 |
Fixed Income Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 850,880 | 796,384 |
Equity Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 1,358,331 | 1,340,541 |
Cash And Cash Equivalents [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 130,713 | 181,162 |
Due To From Funds Netting Arrangement [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | (9,983) | (12,399) |
Other Long-Term Investments [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | $ 27 | $ 29 |
Separate Accounts - Schedule _2
Separate Accounts - Schedule of Balances of and Changes in Separate Account Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Separate Accounts Disclosure [Abstract] | ||
Separate Account, Liability, Beginning Balance | $ 2,305,717 | $ 2,799,992 |
Premiums and deposits | 77,897 | 253,982 |
Surrenders and withdrawals | (108,494) | (293,278) |
Investment Performance | 67,262 | (202,997) |
Management fees and other charges | 15,140 | (62,281) |
Foreign exchange translation | 2,726 | (189,701) |
Separate Account, Liability, Ending Balance | 2,329,968 | 2,305,717 |
Cash surrender value | $ 2,293,074 | $ 2,268,436 |
Policy Claims and Other Benef_3
Policy Claims and Other Benefits Payable - Schedule of Liability For Policy Claims and Other Benefits Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Roll Forward In Liability For Unpaid Claims And Claims Adjustment Expense [Abstract] | |||
Policy claims and other benefits payable, beginning of period | $ 538,250 | $ 585,382 | |
Reinsured policy claims and other benefits payable, beginning of period | 542,613 | 638,007 | |
Net balance, beginning of period | (4,363) | (52,625) | |
Incurred related to current year | 65,820 | 77,232 | |
Incurred related to prior years | [1] | (2,732) | (4,547) |
Total incurred | 63,088 | 72,685 | |
Claims paid related to current year, net of reinsured policy claims received | (141,557) | (161,818) | |
Reinsured policy claims received related to prior years, net of claims paid | 8,422 | 64,532 | |
Total paid | (133,135) | (97,286) | |
Foreign currency translation | 38 | (12) | |
Net balance, end of period | (74,372) | (77,238) | |
Reinsured policy claims and other benefits payable, end of period | 572,855 | 652,088 | |
Policy claims and other benefits payable, end of period | $ 498,483 | $ 574,850 | |
[1] Includes the difference between our estimate of claims incurred but not yet reported as of period-end and the actual incurred claims reported after period-end. |
Future Policy Benefits - Schedu
Future Policy Benefits - Schedule of Balances and Changes in Present Value of Expected Net Premiums and Present Value of Expected Future Policy Benefits Underlying LFPB (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jan. 01, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | |
Present Value of Expected Net Premiums | |||
Balance at current discount rate, beginning of period, Present value of expected net premiums | $ 10,867,358 | $ 13,053,386 | $ 14,988,852 |
Balance at original discount rate, beginning of period, Present value of expected net premium | 10,730,246 | 13,521,221 | 12,800,441 |
Effect of changes in cash flow assumptions, Present value of expected net premiums | 26,090 | ||
Effect of actual variances from expected experience, Present value of expected net premiums | (66,059) | 8,653 | |
Adjusted balance, beginning of period | 13,455,162 | 12,835,184 | |
Issuances, Present value of expected net premiums | 465,861 | 1,892,716 | |
Interest accrual at Original discount rate, Present value of expected net premiums | 130,130 | 486,436 | |
Net premiums collected, Present value of expected net premiums | (137,112) | (414,681) | (1,623,000) |
Foreign currency translation, Present value of expected net premiums | 1,326 | (70,115) | |
Expected net premiums at original discount rate, end of period | 13,637,798 | 13,521,221 | |
Effect of changes in discount rate assumptions, Present value of expected net premiums | 2,774,082 | (117,304) | (467,835) |
Balance at current discount rate, end of period, Present value of expected net premiums | 13,504,328 | 13,520,494 | 13,053,386 |
Present Value of Expected Future Policy Benefits | |||
Balance at current discount rate, beginning of period, Present value of expected future policy benefits | 19,143,253 | 23,309,576 | |
Balance at original discount rate, beginning of period | 23,070,194 | 19,855,932 | 19,706,818 |
Balance at original discount rate, beginning of period, Present value of expected future policy benefits | 17,445,700 | 19,706,818 | 18,991,175 |
Effect of changes in cash flow assumptions, Present value of expected future policy benefits | 0 | 29,915 | |
Effect of actual variances from expected experience, Present value of expected future policy benefits | (58,593) | 21,101 | |
Adjusted balance, beginning of period, Present value of expected future policy benefits | 19,648,225 | 19,042,191 | |
Issuances, Present value of expected future policy benefits | 465,885 | 1,892,730 | |
Interest accrual at Original discount rate, Present value of expected future policy benefits | 206,814 | 796,017 | |
Benefit payments, Present value of expected future policy benefits | (467,008) | (1,915,518) | |
Foreign currency translation, Present value of expected future policy benefits | 2,016 | (108,602) | |
Expected future policy benefits at original discount rate, end of period, Present value of expected future policy benefits | 23,070,194 | 19,855,932 | 19,706,818 |
Effect of changes in discount rate assumptions, Present value of expected future policy benefits | $ 5,624,494 | 13,498 | (563,565) |
Expected future policy benefits at current discount rate, end of period, Present value of expected future policy benefits | 19,869,430 | 19,143,253 | |
LFPB | 6,561,624 | 6,297,906 | |
Less: reinsurance recoverables | 3,154,789 | 3,153,121 | |
Net LFPB, after reinsurance recoverables | $ 3,194,147 | $ 2,936,746 | |
Weighted-average duration of net LFPB | 7 years 9 months 18 days | 7 years 9 months 18 days | |
Term Life | |||
Present Value of Expected Future Policy Benefits | |||
LFPB | $ 6,348,936 | $ 6,089,867 |
Future Policy Benefits - Narrat
Future Policy Benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | |||
Future policy benefits as level percentage | 100% | ||
Future policy benefits remeasurement gain (loss) | $ 508 | $ 1,272 | $ 500 |
Future Policy Benefits - Sche_2
Future Policy Benefits - Schedule of Reconcile LFPB (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | $ 6,561,624 | $ 6,297,906 |
Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | 6,348,936 | 6,089,867 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | 212,688 | 208,039 |
Term Life and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | $ 6,561,624 | $ 6,297,906 |
Future Policy Benefits - Sche_3
Future Policy Benefits - Schedule of Reconcile Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | $ 3,179,074 | $ 3,176,397 |
Term Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | 3,154,789 | 3,153,121 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | 24,285 | 23,276 |
Term Life and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | $ 3,179,074 | $ 3,176,397 |
Future Policy Benefits - Sche_4
Future Policy Benefits - Schedule of Amount of Discounted (using the original discount rate) and Undiscounted Expected Gross Premiums and Expected Future Benefit Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Expected future benefit payments, Undiscounted | $ 32,216,059 | $ 31,904,059 |
Expected future benefit payments, Discounted | 19,869,430 | 19,143,253 |
Expected future gross premiums, Undiscounted | 37,480,296 | 37,135,605 |
Expected future gross premiums, Discounted | $ 25,902,466 | $ 25,070,802 |
Future Policy Benefits - Sche_5
Future Policy Benefits - Schedule of Amount of Revenue and Interest Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Gross premiums | $ 812,880 | $ 793,254 |
Interest accretion (expense) | $ (76,684) | $ (76,496) |
Future Policy Benefits - Sche_6
Future Policy Benefits - Schedule of Weighted Average Rates (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Original discount rate | 4.95% | 5% |
Current discount rate | 4.91% | 5.28% |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Number of Shares of Common Stock (Details) - shares | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders Equity Note [Abstract] | |||
Common stock, beginning of period | 36,824,000 | 39,368,000 | |
Shares issued for stock options exercised | 43,000 | ||
Shares of common stock issued upon lapse of sales restrictions on restricted stock units (“RSUs”) | 129,000 | 132,000 | |
Common stock retired | (530,723) | (589,000) | (748,000) |
Common stock, end of period | 36,407,000 | 36,407,000 | 38,752,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Nov. 17, 2022 | |
Class Of Stock [Line Items] | ||||
Stock repurchased program, authorized amount | $ 375 | |||
Stock repurchased and retired during period, shares | 530,723 | 589,000 | 748,000 | |
Stock repurchased and retired during period, value | $ 85.3 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 289.7 | $ 289.7 | ||
Restricted stock units (RSUs) [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 266,601 | 266,601 | ||
Performance share units (PSUs) [Member] | ||||
Class Of Stock [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 65,459 | 65,459 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ 125,106 | $ 115,039 |
Income attributable to unvested participating securities, basic EPS | (565) | (476) |
Net income used in calculating basic EPS | $ 124,541 | $ 114,563 |
Weighted-average vested shares | 36,710 | 39,221 |
Basic EPS | $ 3.39 | $ 2.92 |
Income attributable to unvested participating securities, diluted EPS | $ (564) | $ (475) |
Net income used in calculating diluted EPS | $ 124,542 | $ 114,564 |
Dilutive effect of incremental shares to be issued for contingently-issuable shares | 94 | 111 |
Weighted-average shares used in calculating diluted EPS | 36,804 | 39,332 |
Diluted EPS | $ 3.38 | $ 2.91 |
Share-Based Transactions - Impa
Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity awards expense recognized | $ 12,125 | $ 12,181 |
Expense Deferred [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Equity awards expense deferred | $ 2,523 | $ 2,377 |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) | Feb. 27, 2023 $ / shares shares |
Restricted stock units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares awarded | 55,137 |
Measurement date fair value | $ / shares | $ 185.24 |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years |
Performance share units (PSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares awarded | 17,139 |
Measurement date fair value | $ / shares | $ 185.24 |
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years |
Performance share units (PSUs) [Member] | Maximum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of PSUs vested during the period | 25,708 |
Performance share units (PSUs) [Member] | Minimum [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of PSUs vested during the period | 0 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Narrative (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Letter of Credit [Member] | |
Commitments And Contingent Liabilities [Line Items] | |
Letter of credit, outstanding | $ 80.4 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Foreign currency translation adjustments: | ||
Change in unrealized foreign currency translation gains (losses) before income taxes | $ 998 | $ 3,289 |
Change in unrealized foreign currency translation gains (losses), net of income taxes | 998 | 3,289 |
Unrealized gain (losses) on available-for-sale securities: | ||
Change in unrealized holding gains (losses) arising during period before income taxes | 38,549 | (164,937) |
Income tax expense (benefit) on unrealized holding gains (losses) arising during period | 8,316 | (35,241) |
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes | 30,233 | (129,696) |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities | 3,137 | (658) |
Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income | 659 | (138) |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes | 2,478 | (520) |
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment | 32,711 | (130,216) |
Effect of change in discount rate assumptions on the LFPB: | ||
Change in effect in discount rate assumptions on the LFPB before income taxes | (182,045) | 821,904 |
Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income | (39,071) | 175,763 |
Change in effect in discount rate assumptions on the LFPB, net of income taxes | $ (142,974) | $ 646,141 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 200,000,000 |
Debt instrument maturity date | Jun. 22, 2026 |
Debt instrument, frequency of commitment fee payable | quarterly |
Amount withdraw From revolving credit facilities | $ 0 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1,500,000,000 |
Maximum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, commitment fee percentage | 0.225% |
Maximum [Member] | SOFR Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 1.625% |
Maximum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 0.625% |
Minimum [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, commitment fee percentage | 0.10% |
Minimum [Member] | SOFR Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 1% |
Minimum [Member] | Base Rate [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate margin | 0% |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 600,000,000 |
Debt instrument, interest rate, stated percentage | 2.80% |
Debt instrument maturity date | Nov. 19, 2031 |
Surplus Note [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, face amount | $ 1,460,000,000 |
Debt instrument, interest rate, stated percentage | 4.50% |
Debt instrument maturity date | Dec. 31, 2030 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Disaggregation of Revenues from Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | $ 690,036 | $ 691,226 |
Term Life Insurance Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 421,069 | 406,983 |
Term Life Insurance Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 12,233 | 12,175 |
Term Life Insurance Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 12,233 | 12,175 |
Term Life Insurance Segment [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 408,836 | 394,808 |
Investment and Savings Product Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 210,202 | 241,039 |
Investment and Savings Product Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 9,909 | 13,744 |
Investment and Savings Product Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 3,120 | 3,144 |
Investment and Savings Product Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Sales-based Revenues [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 72,388 | 103,242 |
Investment and Savings Product Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Asset-based Revenues [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 98,104 | 97,355 |
Investment and Savings Product Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | Account-based Revenues [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 22,790 | 21,541 |
Investment and Savings Product Segment [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 13,800 | 15,757 |
Senior Health Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 18,710 | 5,831 |
Senior Health Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 18,710 | 5,831 |
Senior Health Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 1,199 | 1,117 |
Senior Health Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 8,710 | 12,627 |
Corporate and Other Distributed Products Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 40,055 | 37,373 |
Corporate and Other Distributed Products Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 196,402 | 225,282 |
Corporate and Other Distributed Products Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 2,955 | 4,553 |
Corporate and Other Distributed Products Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | Commissions and Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | 15,755 | 1,278 |
Corporate and Other Distributed Products Segment [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Disaggregation of revenues from contracts with customers | $ 30,146 | $ 23,629 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Renewal Commissions Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Senior Health Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Balance, beginning of period | $ 139,399 | $ 172,308 |
Commissions revenue | 9,062 | 12,849 |
Less: collections | (14,262) | (12,314) |
Tail revenue adjustments from change in estimate | (19,060) | |
Balance, at the end of period | 134,199 | 153,783 |
Corporate and Other Distributed Products Segment [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Balance, beginning of period | 60,644 | 59,443 |
Commissions revenue | 5,370 | 5,643 |
Less: collections | (5,804) | (5,694) |
Balance, at the end of period | $ 60,210 | $ 59,392 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) | Mar. 31, 2023 USD ($) |
Revenue From Contract With Customer [Abstract] | |
Assets recognized for incremental costs | $ 0 |
Acquisition - (Narrative) (Deta
Acquisition - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 01, 2022 | Jul. 01, 2021 | Mar. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Business | $ (3,867) | ||||
Goodwill | $ 127,707 | $ 127,707 | |||
Etelequote Bermuda [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, date of acquisition agreement | Jul. 01, 2021 | ||||
Percentage of interest acquired | 80% | ||||
Remaining percentage of interest acquired | 20% | ||||
Business acquisition, effective date of acquisition | Jul. 01, 2022 |
Acquisition - Summary of Identi
Acquisition - Summary of Identified Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Goodwill | $ 127,707 | $ 127,707 |
Preliminary Purchase Price Adjustment [Member] | ||
Assets: | ||
Goodwill | $ 127,707 |
Goodwill - (Narrative) (Details
Goodwill - (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 127,707,000 | $ 127,707,000 |
Goodwill, name of segment [extensible enumeration] | Senior Health Segment [Member] | |
Accumulated goodwill impairment charges | $ 136,000,000 | |
Change in goodwill balance | $ 0 |