Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
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 | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PRI | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 33,827,541 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed-maturity securities available-for-sale, at fair value (amortized cost: $3,033,914 in 2024 and $2,935,212 in 2023) | $ 2,796,030 | $ 2,719,467 |
Fixed-maturity security held-to-maturity, at amortized cost (fair value: $1,268,174 in 2024 and $1,334,892 in 2023) | 1,353,370 | 1,386,980 |
Short-term investments available-for-sale, at fair value (amortized cost: $276 in 2023) | 0 | 276 |
Equity securities, at fair value (historical cost: $22,828 in 2024 and $27,106 in 2023) | 26,026 | 29,680 |
Trading securities, at fair value (cost: $3,719 in 2024 and $18,761 in 2023) | 3,158 | 18,383 |
Policy loans and other invested assets | 49,791 | 51,175 |
Total investments | 4,228,375 | 4,205,961 |
Cash and cash equivalents | 627,292 | 613,148 |
Accrued investment income | 25,687 | 23,958 |
Reinsurance recoverables | 2,833,055 | 3,015,777 |
Deferred policy acquisition costs, net | 3,566,126 | 3,447,234 |
Renewal commissions receivable | 171,022 | 190,258 |
Agent balances, due premiums and other receivables | 288,766 | 273,066 |
Goodwill | 0 | 127,707 |
Intangible assets, net (accumulated amortization: $0 in 2024 and $26,250 in 2023) | 45,275 | 175,025 |
Income taxes | 118,379 | 123,514 |
Operating lease right-of-use assets | 50,646 | 53,693 |
Other assets | 357,115 | 382,549 |
Separate account assets | 2,253,966 | 2,395,842 |
Total assets | 14,565,704 | 15,027,732 |
Liabilities: | ||
Future policy benefits | 6,436,332 | 6,742,025 |
Unearned and advance premiums | 17,076 | 14,876 |
Policy claims and other benefits payable | 478,773 | 513,803 |
Other policyholders’ funds | 412,570 | 435,094 |
Note payable | 594,110 | 593,709 |
Surplus note | 1,353,014 | 1,386,592 |
Income taxes | 135,049 | 135,247 |
Total lease liabilities | 58,756 | 61,358 |
Other liabilities | 613,303 | 583,434 |
Payable under securities lending | 90,995 | 99,785 |
Separate account liabilities | 2,253,966 | 2,395,842 |
Commitments and contingent liabilities (see Commitments and Contingent Liabilities note) | ||
Total liabilities | 12,443,944 | 12,961,765 |
Stockholders' equity: | ||
Common stock ($0.01 par value; authorized 500,000 shares in 2024 and 2023; issued and outstanding 33,994 shares in 2024 and 34,996 shares in 2023) | 340 | 350 |
Retained earnings | 2,122,832 | 2,276,946 |
Accumulated other comprehensive income (loss), net of income tax: | ||
Effect of change in discount rate assumptions on the liability for future policy benefits | 201,441 | (39,086) |
Unrealized foreign currency translation gains (losses) | (15,507) | (2,235) |
Net unrealized investment gains (losses) on available-for-sale securities | (187,346) | (170,008) |
Total stockholders' equity | 2,121,760 | 2,065,967 |
Total liabilities and stockholders' equity | $ 14,565,704 | $ 15,027,732 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments: | ||
Fixed-maturity security held to maturity, fair value | $ 1,268,174 | $ 1,334,892 |
Equity securities, at fair value, historical cost | 22,828 | 27,106 |
Trading securities, amortized cost | 3,719 | 18,761 |
Intangible assets, net | ||
Accumulated amortization | $ 0 | $ 26,250 |
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 | 33,994,000 | 34,996,000 |
Common stock, shares outstanding | 33,994,000 | 34,996,000 |
Fixed Maturities | ||
Investments: | ||
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost | $ 3,033,914 | $ 2,935,212 |
Short-Term Investments | ||
Investments: | ||
Fixed-maturity securities and Short-term investments available-for-sale, amortized cost | $ 276 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Direct premiums | $ 845,358 | $ 828,296 | $ 1,686,404 | $ 1,646,169 |
Ceded premiums | (427,561) | (425,266) | (837,325) | (830,613) |
Net premiums | 417,797 | 403,030 | 849,079 | 815,556 |
Commissions and fees | 279,769 | 233,130 | 534,790 | 464,677 |
Investment income net of investment expenses | 54,111 | 49,006 | 107,702 | 96,504 |
Interest expense on surplus note | (15,659) | (16,608) | (31,444) | (33,042) |
Net investment income | 38,452 | 32,398 | 76,258 | 63,462 |
Realized investment gains (losses) | 565 | 337 | 572 | (648) |
Other investment gains (losses) | (664) | (665) | 634 | (4,288) |
Investment gains (losses) | (99) | (328) | 1,206 | (4,936) |
Other, net | 67,456 | 20,155 | 84,871 | 39,663 |
Total revenues | 803,375 | 688,385 | 1,546,204 | 1,378,422 |
Benefits and expenses: | ||||
Benefits and claims | 150,030 | 148,911 | 316,351 | 312,179 |
Future policy benefits remeasurement (gain) loss | (4,329) | (1,867) | (4,275) | (1,308) |
Amortization of deferred policy acquisition costs | 73,643 | 68,110 | 145,692 | 136,033 |
Sales commissions | 142,154 | 113,623 | 273,292 | 224,497 |
Insurance expenses | 62,685 | 59,093 | 125,834 | 120,219 |
Insurance commissions | 7,399 | 9,142 | 17,033 | 17,281 |
Contract acquisition costs | 15,724 | 12,602 | 29,257 | 27,586 |
Interest expense | 6,099 | 6,686 | 12,870 | 13,376 |
Impairment of goodwill and other long-lived assets | 253,607 | 253,607 | ||
Other operating expenses | 88,566 | 83,189 | 189,511 | 172,721 |
Total benefits and expenses | 795,578 | 499,489 | 1,359,172 | 1,022,584 |
Income before income taxes | 7,797 | 188,896 | 187,032 | 355,838 |
Income taxes | 6,626 | 44,392 | 47,958 | 83,235 |
Net income | $ 1,171 | $ 144,504 | $ 139,074 | $ 272,603 |
Earnings per share: | ||||
Basic earnings per share | $ 0.03 | $ 3.97 | $ 4 | $ 7.44 |
Diluted earnings per share | $ 0.03 | $ 3.97 | $ 3.99 | $ 7.43 |
Weighted-average shares used in computing earnings per share: | ||||
Basic | 34,383 | 36,215 | 34,633 | 36,461 |
Diluted | 34,383 | 36,290 | 34,688 | 36,545 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,171 | $ 144,504 | $ 139,074 | $ 272,603 |
Unrealized investment gains (losses) on available-for-sale securities: | ||||
Change in unrealized holding gains (losses) on available-for-sale securities | (6,756) | (23,068) | (21,602) | 15,364 |
Reclassification adjustment for investment (gains) losses included in net income | (565) | (331) | (572) | 2,815 |
Effect of change in discount rate assumptions on the liability for future policy benefits | 137,798 | 85,310 | 305,884 | (95,971) |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) | (3,817) | 7,005 | (13,272) | 8,026 |
Total other comprehensive income (loss) before income taxes | 126,660 | 68,916 | 270,438 | (69,766) |
Income tax expense (benefit) related to items of other comprehensive income (loss) | 27,697 | 12,651 | 60,521 | (17,380) |
Other comprehensive income (loss), net of income taxes | 98,963 | 56,265 | 209,917 | (52,386) |
Total comprehensive income (loss) | $ 100,134 | $ 200,769 | $ 348,991 | $ 220,217 |
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] |
Balance, beginning of period at Dec. 31, 2022 | $ 368 | $ 2,153,617 | $ (122,731) | ||
Share-based compensation | $ 22,124 | ||||
Net issuance of common stock | 2 | (2) | |||
Repurchases of common stock | (12) | (22,122) | (188,488) | ||
Net income | $ 272,603 | 272,603 | |||
Dividends | (47,509) | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | (75,030) | ||||
Change in foreign currency translation adjustment | 8,026 | ||||
Change in net unrealized investment gains (losses) during the period | 14,618 | ||||
Balance, end of period at Jun. 30, 2023 | $ 2,015,464 | 358 | 2,190,223 | (175,117) | |
Dividends declared per share | $ 1.3 | ||||
Balance, beginning of period at Mar. 31, 2023 | 364 | 2,177,428 | (231,382) | ||
Share-based compensation | 5,503 | ||||
Net issuance of common stock | 1 | (1) | |||
Repurchases of common stock | (7) | (5,502) | (108,111) | ||
Net income | $ 144,504 | 144,504 | |||
Dividends | (23,598) | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 67,352 | ||||
Change in foreign currency translation adjustment | 7,005 | ||||
Change in net unrealized investment gains (losses) during the period | (18,092) | ||||
Balance, end of period at Jun. 30, 2023 | $ 2,015,464 | 358 | 2,190,223 | (175,117) | |
Dividends declared per share | $ 0.65 | ||||
Balance, beginning of period at Dec. 31, 2023 | $ 2,065,967 | 350 | 2,276,946 | (211,329) | |
Share-based compensation | 20,502 | ||||
Net issuance of common stock | 1 | (1) | |||
Repurchases of common stock | (251,800) | (11) | (20,501) | (241,097) | |
Net income | 139,074 | 139,074 | |||
Dividends | (52,091) | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 240,527 | ||||
Change in foreign currency translation adjustment | (13,272) | ||||
Change in net unrealized investment gains (losses) during the period | (17,338) | ||||
Balance, end of period at Jun. 30, 2024 | $ 2,121,760 | 340 | 2,122,832 | (1,412) | |
Dividends declared per share | $ 1.5 | ||||
Balance, beginning of period at Mar. 31, 2024 | 346 | 2,285,937 | (100,375) | ||
Share-based compensation | 5,690 | ||||
Repurchases of common stock | (6) | $ (5,690) | (138,440) | ||
Net income | $ 1,171 | 1,171 | |||
Dividends | (25,836) | ||||
Effect of change in discount rate assumptions on the liability for future policy benefits | 108,587 | ||||
Change in foreign currency translation adjustment | (3,817) | ||||
Change in net unrealized investment gains (losses) during the period | (5,807) | ||||
Balance, end of period at Jun. 30, 2024 | $ 2,121,760 | $ 340 | $ 2,122,832 | $ (1,412) | |
Dividends declared per share | $ 0.75 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||||
Net income | $ 1,171 | $ 144,504 | $ 139,074 | $ 272,603 | |
Adjustments to reconcile net income to cash provided by (used in) operating activities: | |||||
Change in future policy benefits and other policy liabilities | 27,932 | 18,433 | |||
Deferral of policy acquisition costs | (271,170) | (254,668) | |||
Amortization of deferred policy acquisition costs | 73,643 | 68,110 | 145,692 | 136,033 | |
Change in income taxes | (59,157) | (33,790) | |||
Investment (gains) losses | 99 | 328 | (1,206) | 4,936 | |
Accretion and amortization of investments | (1,863) | (638) | |||
Depreciation and amortization | 14,483 | 17,441 | |||
Change in reinsurance recoverables | 110,508 | 130,233 | |||
Change in agent balances, due premiums and other receivables | (14,793) | (15,140) | |||
Change in renewal commissions receivable | 19,237 | 8,819 | |||
Trading securities sold, matured, or called (acquired), net | 15,160 | (14,722) | |||
Share-based compensation | 15,668 | 14,585 | |||
Impairment of goodwill and other long-lived assets | 253,607 | 253,607 | |||
Gain on insurance proceeds received from acquisition representation and warranty policy | (50,000) | (50,000) | |||
Change in other operating assets and liabilities, net | 41,010 | 27,567 | |||
Net cash provided by (used in) operating activities | 384,182 | 311,692 | |||
Available-for-sale investments sold, matured or called: | |||||
Fixed-maturity securities — sold | 1,382 | 15,734 | |||
Fixed-maturity securities — matured or called | 215,444 | 152,859 | |||
Short-term investments — sold | 28,799 | ||||
Short-term investments — matured or called | 268 | 40,000 | |||
Equity securities — sold | 15 | ||||
Equity securities — matured or called | 4,272 | ||||
Available-for-sale investments acquired: | |||||
Fixed-maturity securities | (315,271) | (193,283) | |||
Short-term investments | (19,767) | ||||
Equity securities — acquired | (330) | ||||
Purchases of property and equipment and other investing activities, net | (12,604) | (10,234) | |||
Cash collateral received (returned) on loaned securities, net | (8,789) | (23,295) | |||
Sales (purchases) of short-term investments using securities lending collateral, net | 8,789 | 23,295 | |||
Insurance Proceeds Received from Acquisition Representation and Warranty Policy | 50,000 | ||||
Net cash provided by (used in) investing activities | (56,509) | 13,793 | |||
Cash flows from financing activities: | |||||
Dividends paid | (52,091) | (47,509) | |||
Common stock repurchased | (251,821) | (196,037) | |||
Tax withholdings on share-based compensation | (7,491) | (10,239) | |||
Finance leases | (130) | (133) | |||
Net cash provided by (used in) financing activities | (311,533) | (253,918) | |||
Effect of foreign exchange rate changes on cash | (1,996) | 778 | |||
Change in cash and cash equivalents | 14,144 | 72,345 | |||
Cash and cash equivalents, beginning of period | 613,148 | 489,240 | $ 489,240 | ||
Cash and cash equivalents, end of period | $ 627,292 | $ 561,585 | $ 627,292 | $ 561,585 | $ 613,148 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 1,171 | $ 144,504 | $ 139,074 | $ 272,603 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business, Basis
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
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 and services 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. Our 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.; PFS Investments Inc., an investment products company and broker-dealer; and Primerica Health, Inc, a holding company for our senior health operations, which includes e-TeleQuote Insurance, Inc. and subsidiaries (collectively, “e-TeleQuote”), which markets Medicare-related insurance products underwritten by third-party health insurance carriers to eligible Medicare beneficiaries through its licensed health insurance agents. Primerica Life, domiciled in Tennessee, owns National Benefit Life Insurance Company, a New York insurance company. Vidalia Re, Inc. (“Vidalia Re”) is a special purpose financial captive insurance company and wholly owned subsidiary of Primerica Life. Vidalia Re has entered into a separate coinsurance agreement with Primerica Life whereby Primerica Life has ceded certain level-premium term life insurance policies to Vidalia Re (the “Vidalia Re Coinsurance Agreement”). In July 2024, the Board of Directors (“Board”) of the Company determined that its senior health business does not have a clear path toward anticipated profitability within an acceptable timeframe in the increasingly challenging senior health distribution market. In connection with such decision, the Board authorized management of the Company to abandon the Company’s ownership in e-TeleQuote with a target date of September 30, 2024. If for any reason the abandonment is unable to be effectuated as expected, then the Company intends to exit the senior health business through another method. 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 June 30, 2024 and December 31, 2023, the statements of income, comprehensive income (loss), and stockholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. 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 (“SEC”). 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, 2023 (“2023 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”), liability for future policy benefits (“LFPB”) 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. The results of the senior health business are included in the Company's continuing operations in the condensed consolidated statements of income because they do not meet the requirements to be reported as discontinued operations as of June 30, 2024. Specifically, the Company intends to exit the senior health business via a disposal other than by sale. Changes to Accounting Policies . All significant accounting policies remain unchanged from the 2023 Annual Report unless otherwise described. 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 Standards Not Yet Adopted. Accounting standard Adoption date Description Effects on the financial statements Segment Reporting (Topic 280)— Improvements to Reportable Segment Disclosures ASU 2023-07 Annual periods beginning after December 15, 2023 and interim periods thereafter. Early adoption is permitted. Retrospective transition for all periods presented. In November 2023, the FASB issued the ASU to enhance segment disclosures. The amendments (1) require disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require disclosure of “other segment items” by reportable segment, which is the difference between segment revenue and significant segment expenses; (3) require annual segment disclosures to be included in interim financial statements; (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures; and (5) require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. We do not believe the adoption of the standard will have a material impact on our consolidated financial statements. We will revise disclosures in accordance with the new standard in our annual 2024 financial statements and for interim periods thereafter. Income Taxes (Topic 740)—Improvements to Income Tax Disclosures ASU 2023-09 Annual periods beginning after December 15, 2024. Early adoption is permitted. Prospective transition, although retrospective transition is permitted. In December 2023, the FASB issued the ASU to increase income tax transparency through improvements primarily related to the existing rate reconciliation and income taxes paid disclosures. The amendments require (1) consistent categories and greater disaggregation of information in the rate reconciliation; and (2) income taxes paid disaggregated by jurisdiction. The ASU also removes certain disclosure requirements, such as reasonably possible significant changes in the total amount of unrecognized tax benefits within 12 months of the reporting date. We do not believe the adoption of the standard will have a material impact on our consolidated financial statements. We will revise disclosures in accordance with the new standard in our annual 2025 financial statements. In addition, in March 2024, the SEC issued final rules that include updates to Regulation S-X for climate-related disclosures (the “Climate-Related Disclosures rule”). The Climate-Related Disclosures rule is currently stayed pending the completion of judicial review. The Climate-Related Disclosures rule requires a registrant to disclose in the notes to the financial statements (1) expenditures and losses, and capitalized costs and charges in each case excluding recoveries, incurred or recognized during a fiscal year as a result of severe weather events and other natural conditions; and (2) where material to a company's plan to achieve disclosed climate-related targets or goals, information regarding carbon offsets and renewable energy credits. The adoption of the Climate-Related Disclosures rule will impact our disclosures and may require changes to certain of our processes, systems, and controls. We are currently evaluating existing processes and data to determine what changes may be necessary. If the stay is lifted, the updates to Regulation S-X included in the Climate-Related Disclosures rule would be effective for the Company’s Form 10-K for the fiscal year ending December 31, 2025. Recently issued accounting guidance not discussed above is not applicable, is immaterial to our consolidated financial statements, or did not or is not expected to have a material impact on our business. |
Segment and Geographical Inform
Segment and Geographical Information | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Revenues: Term life insurance segment $ 426,944 $ 411,873 $ 867,357 $ 832,943 Investment and savings products segment 260,906 214,509 504,622 424,711 Senior health segment 12,420 14,890 19,300 33,599 Corporate and other distributed products segment 103,105 47,113 154,925 87,169 Total revenues $ 803,375 $ 688,385 $ 1,546,204 $ 1,378,422 Net investment income: Term life insurance segment $ - $ - $ - $ - Investment and savings products segment - - - - Senior health segment - - - - Corporate and other distributed products segment 38,452 32,398 76,258 63,462 Total net investment income $ 38,452 $ 32,398 $ 76,258 $ 63,462 Amortization of DAC: Term life insurance segment $ 71,916 $ 66,004 $ 142,407 $ 132,072 Investment and savings products segment 1,478 1,409 2,679 2,901 Senior health segment - - - - Corporate and other distributed products segment 249 697 606 1,060 Total amortization of DAC $ 73,643 $ 68,110 $ 145,692 $ 136,033 Non-cash share-based compensation expense: Term life insurance segment $ 954 $ 726 $ 3,096 $ 2,576 Investment and savings products segment 715 666 1,754 1,658 Senior health segment 195 171 295 330 Corporate and other distributed products segment 1,189 895 10,523 9,967 Total non-cash share-based compensation expense $ 3,053 $ 2,458 $ 15,668 $ 14,531 Income (loss) before income taxes: Term life insurance segment $ 147,779 $ 140,113 $ 286,148 $ 270,654 Investment and savings products segment 74,782 59,583 140,345 115,691 Senior health segment ( 264,972 ) ( 6,032 ) ( 279,125 ) ( 9,795 ) Corporate and other distributed products segment 50,208 ( 4,768 ) 39,664 ( 20,712 ) Total income before income taxes $ 7,797 $ 188,896 $ 187,032 $ 355,838 In April 2024, the Company executed agreements providing for the receipt of proceeds for certain claims filed by the Company under a Representa tion and Warranty insurance policy negotiated and purchased in connection with the acquisition of e-TeleQuote on July 1, 2021. The claims made by the Company involved breaches of certain representations and warranties relating to the pre-acquisition financial statements made by the sellers of e-TeleQuote in connection with the acquisition. The Company recognized a gain during the second quarter of 2024 of $ 50.0 million, which is equal to the aggregate proceeds received from the third-party insurers under the policy in May 2024, reflecting the full coverage under the policy. The Company recognized this gain in Corporate and Other Distributed Products segment revenues as it resulted from a corporate investment decision to purchase the insurance policy. On a consolidated basis, this gain is included in Other, net revenue in the accompanying unaudited condensed consolidated statements of income. As discussed in Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies), in July 2024, subsequent to the end of the reporting period, the Company committed to exit the senior health business, which is comprised of the Senior Health segment. In the second quarter of 2024, the Company recorded impairment charges in its Senior Health segment to write off the remaining goodwill and acquired intangible assets from the e-TeleQuote acquisition. Additionally, the Company recorded $ 0.8 million of restructuring charges for professional services incurred in the second quarter of 2024, which are included in the Corporate and Other Distributed Products segment. Refer to Note 17 (Impairment of Goodwill and Other Long-lived Assets) and Note 18 (Income Taxes) for further discussion of these impairment charges and tax impacts, respectively. The carrying value of the net assets in the Senior Health segment after these impairment charges was $ 103.1 million as of June 30, 2024. We expect to incur additional restructuring costs, the extent of which are yet to be determined, in the third quarter of 2024 associated with the exit of the senior health business. Total assets by segment were as follows: June 30, 2024 December 31, 2023 (In thousands) Assets: Term life insurance segment $ 6,486,934 $ 6,543,923 Investment and savings products segment (1) 2,410,463 2,537,079 Senior health segment 144,227 419,110 Corporate and other distributed products segment 5,524,080 5,527,620 Total assets $ 14,565,704 $ 15,027,732 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 156.5 million and $ 141.3 million as of June 30, 2024 and December 31, 2023 , 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 – were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Revenues by country: United States $ 707,697 $ 602,132 $ 1,355,039 $ 1,205,982 Canada 95,678 86,253 191,165 172,440 Total revenues $ 803,375 $ 688,385 $ 1,546,204 $ 1,378,422 June 30, 2024 December 31, 2023 (In thousands) Long-lived assets by country: United States $ 37,724 $ 35,434 Canada 2,409 2,636 Other 185 197 Total long-lived assets $ 40,318 $ 38,267 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | (3) Investments Available-for-sale Securities. The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (“AFS”) securities were as follows: June 30, 2024 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 $ 10,368 $ 9 $ ( 480 ) $ 9,897 Foreign government 168,743 638 ( 10,050 ) 159,331 States and political subdivisions 136,350 101 ( 14,983 ) 121,468 Corporates 1,845,728 8,267 ( 130,992 ) 1,723,003 Residential mortgage-backed securities 504,580 546 ( 69,523 ) 435,603 Commercial mortgage-backed securities 118,240 93 ( 12,637 ) 105,696 Other asset-backed securities 249,905 1,111 ( 9,984 ) 241,032 Total fixed-maturity securities $ 3,033,914 $ 10,765 $ ( 248,649 ) $ 2,796,030 December 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 $ 9,974 $ 18 $ ( 476 ) $ 9,516 Foreign government 170,354 1,616 ( 8,588 ) 163,382 States and political subdivisions 145,779 891 ( 14,681 ) 131,989 Corporates 1,723,023 14,787 ( 120,286 ) 1,617,524 Residential mortgage-backed securities 499,771 1,688 ( 63,928 ) 437,531 Commercial mortgage-backed securities 127,454 156 ( 15,443 ) 112,167 Other asset-backed securities 258,857 763 ( 12,262 ) 247,358 Total fixed-maturity securities 2,935,212 19,919 ( 235,664 ) 2,719,467 Short-term investments 276 - - 276 Total fixed-maturity and short-term investments $ 2,935,488 $ 19,919 $ ( 235,664 ) $ 2,719,743 All of our AFS mortgage- and asset-backed securities represent beneficial 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 AFS fixed-maturity securities portfolio as of June 30, 2024 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 183,824 $ 182,161 Due after one year through five years 745,364 716,707 Due after five years through 10 years 819,934 741,336 Due after 10 years 412,067 373,495 2,161,189 2,013,699 Mortgage- and asset-backed securities 872,725 782,331 Total AFS fixed-maturity securities $ 3,033,914 $ 2,796,030 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 costs and fair values of the fixed-maturity securities classified as trading securities were as follows: June 30, 2024 December 31, 2023 Cost Fair value Cost Fair value (In thousands) Fixed-maturity securities $ 3,719 $ 3,158 $ 18,761 $ 18,383 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 in 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 they 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. Hannover Re's financial strength rating by A.M. Best was A+ as of June 30, 2024. The LLC Note is classified as a held-to-maturity debt security in the Company’s invested asset portfolio as we have the positive intent and ability to hold the security until maturity. As of June 30, 2024, the LLC Note had an estimated unrealized holding loss of $ 85.2 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 June 30, 2024 and December 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 value of investments on deposit was $ 7.7 million and $ 7.3 million as of June 30, 2024 and December 31, 2023, 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 in 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 in 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 $ 91.0 million and $ 99.8 million as of June 30, 2024 and December 31, 2023 , respectively. Net Investment Income. The components of net investment income were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Fixed-maturity securities (available-for-sale) $ 30,618 $ 26,357 $ 60,554 $ 52,163 Fixed-maturity security (held-to-maturity) 15,659 16,608 31,444 33,042 Equity securities 323 380 712 760 Policy loans and other invested assets 543 352 1,005 281 Cash, cash equivalents and short-term investments 6,640 5,840 13,621 10,968 Total return on deposit asset underlying 10% coinsurance agreement (1) 2,400 1,636 4,574 3,685 Gross investment income 56,183 51,173 111,910 100,899 Investment expenses ( 2,072 ) ( 2,167 ) ( 4,208 ) ( 4,395 ) Investment income net of investment expenses 54,111 49,006 107,702 96,504 Interest expense on surplus note ( 15,659 ) ( 16,608 ) ( 31,444 ) ( 33,042 ) Net investment income $ 38,452 $ 32,398 $ 76,258 $ 63,462 (1) I ncludes $ 0.2 million and $ 0.1 m illion of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2024, respectively. Includes $( 0.9 ) million and $( 1.2 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2023 , 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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Realized investment gains (losses): Gross gains from sales of available-for-sale fixed-maturity securities $ 673 $ 442 $ 680 $ 492 Gross losses from sales of available-for-sale fixed-maturity securities ( 108 ) ( 105 ) ( 108 ) ( 1,140 ) Net realized investment gains (losses): 565 337 572 ( 648 ) Other investment gains (losses): Credit losses impairment of available-for-sale securities - ( 6 ) - ( 2,167 ) Market gains (losses) recognized in net income during the period on equity securities ( 675 ) ( 656 ) 620 ( 2,130 ) Gains (losses) from bifurcated options 3 ( 8 ) ( 1 ) - Gains (losses) on trading securities 8 5 15 9 Other investment gains (losses): ( 664 ) ( 665 ) 634 ( 4,288 ) Investment gains (losses) $ ( 99 ) $ ( 328 ) $ 1,206 $ ( 4,936 ) The proceeds from sales or other redemptions of AFS securities were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Proceeds from sales or other redemptions $ 130,676 $ 151,962 $ 217,094 $ 237,392 Accrued Interest. Accrued interest is recorded in accordance with the contractual 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 to write off any remaining accrued interest. As a result, the Company has made the policy election to not record an allowance for credit losses on accrued interest. Credit Losses for AFS Fixed-maturity Securities. The following tables summarize all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position: June 30, 2024 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (In thousands) Fixed-maturity securities: U.S. government and agencies $ 1,870 $ ( 25 ) $ 7,710 $ ( 455 ) Foreign government 25,329 ( 394 ) 111,584 ( 9,656 ) States and political subdivisions 9,142 ( 220 ) 107,243 ( 14,763 ) Corporates 307,078 ( 4,606 ) 1,149,479 ( 126,386 ) Residential mortgage-backed securities 35,393 ( 388 ) 352,139 ( 69,135 ) Commercial mortgage-backed securities 7,997 ( 64 ) 92,915 ( 12,573 ) Other asset-backed securities 25,046 ( 55 ) 132,387 ( 9,929 ) Total fixed-maturity securities $ 411,855 $ ( 5,752 ) $ 1,953,457 $ ( 242,897 ) December 31, 2023 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (In thousands) Fixed-maturity securities: U.S. government and agencies $ - $ - $ 9,188 $ ( 476 ) Foreign government 17,209 ( 62 ) 104,827 ( 8,526 ) States and political subdivisions 4,883 ( 46 ) 107,021 ( 14,635 ) Corporates 39,783 ( 907 ) 1,231,694 ( 119,379 ) Residential mortgage-backed securities 14,872 ( 142 ) 360,987 ( 63,786 ) Commercial mortgage-backed securities 4,721 ( 107 ) 97,417 ( 15,336 ) Other asset-backed securities 41,417 ( 159 ) 136,841 ( 12,103 ) Total fixed-maturity securities $ 122,885 $ ( 1,423 ) $ 2,047,975 $ ( 234,241 ) The amortized cost of AFS securities with a cost basis in excess of their fair values were $ 2,614.0 million and $ 2,406.5 million as of June 30, 2024 and December 31, 2023, respectively. As of June 30, 2024 , no allowance for credit losses was recorded for AFS securities. Substantially all of the unrealized losses were the result of change in market interest rates compared to the date the securities were acquired rather than the credit quality of the securities, and we have no present intention to dispose of them. We did no t recognize any credit losses on AFS securities for the three and six months ended June 30, 2024. We recognized less than $ 0.1 million and $ 2.2 million for credit losses on AFS securities for the three and six months ended June 30, 2023, respectively, in the unaudited condensed consolidated statements of income. We recognize 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. Derivatives. We have 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 (loss) was $ 26.4 million as of each of June 30, 2024 and December 31, 2023 . These deferred losses will not be recognized until such time as we sell or substantially liquidate our Canadian operations, although we have no such intention. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 could 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 could 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: June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 9,897 $ - $ 9,897 Foreign government - 159,331 - 159,331 States and political subdivisions - 121,468 - 121,468 Corporates 3,870 1,719,133 - 1,723,003 Mortgage- and asset-backed securities: Residential mortgage-backed securities - 435,603 - 435,603 Commercial mortgage-backed securities - 105,696 - 105,696 Other asset-backed securities - 232,182 8,850 241,032 Total available-for-sale fixed-maturity securities 3,870 2,783,310 8,850 2,796,030 Equity securities 23,441 982 1,603 26,026 Trading securities - 3,158 - 3,158 Cash and cash equivalents 441,563 185,729 - 627,292 Separate accounts - 2,253,966 - 2,253,966 Total fair value assets $ 468,874 $ 5,227,145 $ 10,453 $ 5,706,472 Fair value liabilities: Separate accounts $ - $ 2,253,966 $ - $ 2,253,966 Total fair value liabilities $ - $ 2,253,966 $ - $ 2,253,966 December 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 $ - $ 9,516 $ - $ 9,516 Foreign government - 163,382 - 163,382 States and political subdivisions - 131,989 - 131,989 Corporates 3,951 1,613,573 - 1,617,524 Mortgage-and asset-backed securities: Residential mortgage-backed securities - 437,531 - 437,531 Commercial mortgage-backed securities - 112,167 - 112,167 Other asset-backed securities - 246,858 500 247,358 Total available-for-sale fixed-maturity securities 3,951 2,715,016 500 2,719,467 Short-term investments - 276 - 276 Total available-for-sale securities 3,951 2,715,292 500 2,719,743 Equity securities 27,062 974 1,644 29,680 Trading securities - 18,383 - 18,383 Cash and cash equivalents 613,148 - - 613,148 Separate accounts - 2,395,842 - 2,395,842 Total fair value assets $ 644,161 $ 5,130,491 $ 2,144 $ 5,776,796 Fair value liabilities: Separate accounts $ - $ 2,395,842 $ - $ 2,395,842 Total fair value liabilities $ - $ 2,395,842 $ - $ 2,395,842 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 June 30, Six months ended June 30, (1) 2024 2023 2024 2023 (In thousands) Level 3 assets, beginning of period $ 1,631 $ 4,008 $ 2,144 $ 1,710 Net unrealized gains (losses) included in other comprehensive income (loss) 35 ( 60 ) 39 ( 61 ) Realized gains (losses) and accretion (amortization) recognized in earnings ( 28 ) ( 64 ) ( 41 ) ( 81 ) Purchases 8,815 - 8,815 2,316 Settlements - ( 8 ) - ( 8 ) Transfers into Level 3 - - - - Transfers out of Level 3 - ( 2,248 ) ( 504 ) ( 2,248 ) Level 3 assets, end of period $ 10,453 $ 1,628 $ 10,453 $ 1,628 (1) Transfers of investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented. 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 and six months ended June 30, 2024 and 2023. The carrying values and estimated fair values of our financial instruments were as follows: June 30, 2024 December 31, 2023 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 2,796,030 $ 2,796,030 $ 2,719,467 $ 2,719,467 Fixed-maturity security (held-to-maturity) (1) 1,353,370 1,268,174 1,386,980 1,334,892 Short-term investments (available-for-sale) - - 276 276 Equity securities 26,026 26,026 29,680 29,680 Trading securities 3,158 3,158 18,383 18,383 Policy loans (1) 38,426 38,426 38,975 38,975 Deposit asset underlying 10 % coinsurance agreement (1) 171,848 171,848 187,377 187,377 Separate accounts 2,253,966 2,253,966 2,395,842 2,395,842 Liabilities: Note payable (2) (3) $ 594,110 $ 499,658 $ 593,709 $ 508,832 Surplus note (1) (2) 1,353,014 1,265,532 1,386,592 1,329,159 Separate accounts 2,253,966 2,253,966 2,395,842 2,395,842 (1) Classified as a Level 3 fair value measurement. (2) Carrying value amounts shown are net of unamortized issuance costs. (3) Classified as a Level 2 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, 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 | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 December 31, 2023 (Dollars in thousands) Direct life insurance in-force $ 952,962,977 $ 946,756,416 Amounts ceded to other companies ( 814,622,587 ) ( 810,145,801 ) Net life insurance in-force $ 138,340,390 $ 136,610,615 Percentage of reinsured life insurance in-force 85 % 86 % Benefits and claims ceded to reinsurers during the three and six months ended June 30, 2024 were $ 357.8 million and $ 714.8 million, respectively, compared to $ 349.7 million and $ 693.0 million, respectively, for the three and six months ended June 30, 2023. Reinsurance recoverables include ceded policy benefit reserve balances, ceded claim liabilities, and ceded claims paid that have not been reimbursed. The Company allocated reinsurance recoverables estimated at the cohort level to individual reinsurers for disclosure purposes. Reinsurance recoverables estimated by reinsurer and the financial strength ratings of those reinsurers were as follows: June 30, 2024 December 31, 2023 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Swiss Re Life & Health America Inc. (Novated from Pecan Re Inc.) (1) $ 2,131,772 A+ $ 2,271,223 A+ Munich Re of Malta (1) (2) 222,398 NR 243,890 NR SCOR Global Life Reinsurance Companies (3) 157,512 A 160,381 A American Health and Life Insurance Company (1) 131,775 B++ 141,771 B++ Swiss Re Life & Health America Inc. (4) 45,609 A+ 43,873 A+ RGA Reinsurance Company 42,332 A+ 43,188 A+ Korean Reinsurance Company 42,152 A 41,373 A Munich American Reassurance Company 40,819 A+ 50,273 A+ All other reinsurers 19,808 - 20,925 - Allowance for credit losses ( 1,122 ) ( 1,120 ) Reinsurance recoverables $ 2,833,055 $ 3,015,777 NR – not rated by A.M. Best (1) Reinsurance recoverables include 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 recoverable 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 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 allowance for credit losses. The rollforward of the allowance for credit losses on reinsurance recoverables were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 1,048 $ 3,563 $ 1,120 $ 2,936 Current period provision for expected credit losses 74 2,036 2 2,663 Balance, at the end of period $ 1,122 $ 5,599 $ 1,122 $ 5,599 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | (6) Deferred Policy Acquisition Costs The balances and activity in DAC were as follows: Six months ended Year ended June 30, 2024 December 31, 2023 (In thousands) Term Life Segregated Funds (Canada) Term Life Segregated Funds (Canada) DAC balance, beginning of period $ 3,366,281 $ 63,029 $ 3,106,148 $ 62,341 Capitalization 274,632 1,562 521,718 4,353 Amortization ( 142,407 ) ( 2,679 ) ( 268,803 ) ( 5,479 ) Foreign exchange translation and other ( 9,130 ) ( 2,288 ) 7,218 1,814 DAC balance, at the end of period $ 3,489,376 $ 59,624 $ 3,366,281 $ 63,029 Reconciliation of DAC by product was as follows: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 3,489,376 $ 3,366,281 Segregated Funds (Canada) 59,624 63,029 Other 17,126 17,924 Total DAC, net $ 3,566,126 $ 3,447,234 There were no changes to the judgments, assumptions and methods used to amortize DAC during the six months ended June 30, 2024 and 2023 . |
Separate Accounts
Separate Accounts | 6 Months Ended |
Jun. 30, 2024 | |
Separate Accounts Disclosure [Abstract] | |
Separate Accounts | (7) Separate Accounts The following table represents the fair value of assets supporting separate accounts by major investment category: June 30, 2024 December 31, 2023 (In thousands) Fixed-income securities $ 765,636 $ 876,524 Equity securities 1,430,461 1,436,122 Cash and cash equivalents 67,359 87,530 Due to/from funds ( 9,510 ) ( 4,357 ) Other 20 23 Total separate account assets $ 2,253,966 $ 2,395,842 The following table represents the balances of and changes in separate account liabilities: Six months ended Year ended June 30, 2024 December 31, 2023 (In thousands) Separate account liabilities balance, beginning of period $ 2,395,842 $ 2,305,717 Premiums and deposits 88,494 186,631 Surrenders and withdrawals ( 223,559 ) ( 343,473 ) Investment performance 105,546 245,565 Management fees and other charges ( 25,251 ) ( 62,159 ) Foreign exchange translation ( 87,106 ) 63,561 Separate account liabilities balance, end of period $ 2,253,966 $ 2,395,842 Cash surrender value $ 2,221,443 $ 2,354,813 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 and other benefits payable were as follows: Six months ended June 30, 2024 2023 (In thousands) Policy claims and other benefits payable, beginning of period $ 513,803 $ 538,250 Less reinsured policy claims and other benefits payable 534,674 542,606 Net balance, beginning of period ( 20,871 ) ( 4,356 ) Incurred related to current year 129,041 121,251 Incurred related to prior years (1) ( 3,565 ) ( 1,723 ) Total incurred 125,476 119,528 Claims paid related to current year, net of reinsured policy claims received ( 194,113 ) ( 162,580 ) Reinsured policy claims received related to prior years, net of claims paid 40,413 17,519 Total paid ( 153,700 ) ( 145,061 ) Foreign currency translation ( 334 ) 182 Net balance, end of period ( 49,429 ) ( 29,707 ) Add reinsured policy claims and other benefits payable 528,202 524,848 Balance, end of period $ 478,773 $ 495,141 (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 trends and conditions, and reported lag time experience. |
Future Policy Benefits
Future Policy Benefits | 6 Months Ended |
Jun. 30, 2024 | |
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: Six months ended Year ended June 30, 2024 December 31, 2023 (Dollars in thousands) Present Value of Expected Net Premiums Term Life Insurance Balance at then current discount rate, beginning of period $ 13,977,353 $ 13,053,386 Balance at original discount rate, beginning of period 14,012,553 13,521,221 Effect of changes in cash flow assumptions - ( 5,364 ) Effect of actual variances from expected experience ( 234,156 ) ( 229,884 ) Adjusted balance, beginning of period 13,778,397 13,285,973 Issuances 1,003,321 1,836,290 Interest accrual at original discount rate 299,575 544,806 Net premiums collected ( 858,255 ) ( 1,682,924 ) Foreign currency translation ( 38,685 ) 28,408 Expected net premiums at original discount rate, end of period 14,184,353 14,012,553 Effect of changes in discount rate assumptions ( 444,845 ) ( 35,200 ) Expected net premiums at then current discount rate, end of period $ 13,739,508 $ 13,977,353 Present Value of Expected Future Policy Benefits Balance at then current discount rate, beginning of period $ 20,508,435 $ 19,143,253 Balance at original discount rate, beginning of period 20,391,694 19,706,818 Effect of changes in cash flow assumptions - ( 7,254 ) Effect of actual variances from expected experience ( 238,305 ) ( 225,539 ) Adjusted balance, beginning of period 20,153,389 19,474,025 Issuances 1,008,739 1,840,996 Interest accrual at original discount rate 458,419 856,727 Benefit payments ( 932,348 ) ( 1,823,542 ) Foreign currency translation ( 59,142 ) 43,488 Expected future policy benefits at original discount rate, end of period 20,629,057 20,391,694 Effect of changes in discount rate assumptions ( 651,747 ) 116,741 Expected future policy benefits at then current discount rate, end of period $ 19,977,310 $ 20,508,435 LFPB $ 6,237,802 $ 6,531,082 Less: reinsurance recoverables 2,819,445 3,001,074 Net LFPB, after reinsurance recoverables $ 3,418,357 $ 3,530,008 Weighted-average duration of net LFPB (in years) 7.9 7.9 During the three and six months ended June 30, 2024, experience variances in persistency and mortality resulted in remeasurement gains of $ 4.3 million and $ 4.6 million, respectively, in our Term Life Insurance segment, compared to $ 1.3 million and $ 0.3 million, respectively, during the three and six months ended June 30, 2023. 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 and six months ended June 30, 2024 and June 30, 2023. Losses recognized as a result of capping the net premium ratio at 100 % were immaterial during the three and six months ended June 30, 2024 and 2023. The following table reconciles the LFPB to the unaudited condensed consolidated balance sheets: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 6,237,802 $ 6,531,082 Other 198,530 210,943 Total $ 6,436,332 $ 6,742,025 The following table reconciles the reinsurance recoverables to the unaudited condensed consolidated balance sheets: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 2,819,445 $ 3,001,074 Other 13,610 14,703 Total $ 2,833,055 $ 3,015,777 The amount of discounted (using the then current discount rate) and undiscounted expected gross premiums and expected future benefit payments were as follows: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance Undiscounted Discounted Undiscounted Discounted Expected future benefit payments $ 33,839,938 $ 19,977,311 $ 33,342,272 $ 20,508,435 Expected future gross premiums $ 39,155,381 $ 26,164,310 $ 38,701,869 $ 26,687,880 The amount of revenue and interest recognized in our unaudited condensed consolidated statements of income were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Term Life Insurance Gross premiums $ 840,668 $ 823,297 $ 1,676,989 $ 1,636,177 Interest accretion (expense) $ ( 81,252 ) $ ( 77,101 ) $ ( 158,845 ) $ ( 153,785 ) The weighted-average discount rates were as follows: June 30, 2024 December 31, 2023 Term Life Insurance Original discount rate 4.99 % 4.93 % Current discount rate 5.47 % 4.91 % There were no changes to the methods used to determine the discount rates during the six months ended June 30, 2024 and the twelve months ended December 31, 2023 . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | (10) Stockholders’ Equity The following table shows changes in our outstanding common stock: Six months ended June 30, 2024 2023 (In thousands) Common stock, beginning of period $ 34,996 $ 36,824 Shares of common stock issued upon exercise of stock options - 60 Shares of common stock issued when sales restrictions on restricted stock units 124 168 Common stock retired ( 1,126 ) ( 1,206 ) Common stock, end of period $ 33,994 $ 35,846 The above table excludes RSUs and 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 June 30, 2024, we had a total of 232,003 RSUs and 58,619 PSUs outstanding. The PSU outstanding balance is based on the number of PSUs granted pursuant to the award agreements; 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 16, 2023, our Board of Directors authorized a share repurchase program for up to $ 425.0 million of our outstanding common stock for purchases from November 16, 2023 through December 31, 2024 (the “Share Repurchase Program”). Under the Share Repurchase Program, we repurchased 1,095,316 shares of our common stock in the open market for an aggregate purchase price of $ 251.8 million through June 30, 2024. Approximately $ 173.2 million remains available for repurchases of our outstanding common stock under the Share Repurchase Program as of June 30, 2024 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (11) Earnings Per Share The Company has outstanding common stock and equity awards that consist of RSUs and PSUs. All previously remaining outstanding stock options were exercised during the year ended December 31, 2023. 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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income $ 1,171 $ 144,504 $ 139,074 $ 272,603 Income attributable to unvested participating securities ( 96 ) ( 609 ) ( 546 ) ( 1,190 ) Net income used in calculating basic EPS $ 1,075 $ 143,895 $ 138,528 $ 271,413 Denominator: Weighted-average vested shares 34,383 36,215 34,633 36,461 Basic EPS $ 0.03 $ 3.97 $ 4.00 $ 7.44 Diluted EPS: Numerator: Net income $ 1,171 $ 144,504 $ 139,074 $ 272,603 Income attributable to unvested participating securities ( 96 ) ( 608 ) ( 546 ) ( 1,187 ) Net income used in calculating diluted EPS $ 1,075 $ 143,896 $ 138,528 $ 271,416 Denominator: Weighted-average vested shares 34,383 36,215 34,633 36,461 Dilutive effect of incremental shares to be issued for - 75 55 84 Weighted-average shares used in calculating diluted EPS 34,383 36,290 34,688 36,545 Diluted EPS $ 0.03 $ 3.97 $ 3.99 $ 7.43 |
Share-Based Transactions
Share-Based Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Transactions | (12) Share-Based Transactions The Company has outstanding equity awards under the Primerica, Inc. 2020 Omnibus Incentive Plan (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 15 (Share-Based Transactions) to our consolidated financial statements within our 2023 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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Equity awards expense recognized $ 3,053 $ 2,463 $ 15,668 $ 14,588 Equity awards expense deferred 2,633 2,340 4,832 4,863 On February 16, 2024, 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: • 48,998 RSUs awarded to management with a measurement-date fair value of $ 244.89 per unit that have time-based vesting requirements with equal and annual graded vesting over approximately three years subsequent to the grant date. • 15,005 PSUs awarded to our five top executives as of that date with a measurement-date fair value of $ 244.89 per unit. The PSUs will be earned on March 1, 2027 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, 2024 through December 31, 2026. 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 22,507 shares. All awards granted to employees on February 16, 2024 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 even if that employee retires prior to the completion of such relevant three-year performance period. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | (13) Commitments and 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 . |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | (14) Other Comprehensive Income (Loss) The components of other comprehensive income (loss) (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) $ ( 3,817 ) $ 7,005 $ ( 13,272 ) $ 8,026 Income tax expense (benefit) on unrealized foreign currency - - - - Change in unrealized foreign currency translation gains $ ( 3,817 ) $ 7,005 $ ( 13,272 ) $ 8,026 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period $ ( 6,756 ) $ ( 23,068 ) $ ( 21,602 ) $ 15,364 Income tax expense (benefit) on unrealized holding gains ( 1,395 ) ( 5,237 ) ( 4,716 ) 2,970 Change in unrealized holding gains (losses) on available-for-sale ( 5,361 ) ( 17,831 ) ( 16,886 ) 12,394 Reclassification from accumulated OCI to net income for (gains) ( 565 ) ( 331 ) ( 572 ) 2,815 Income tax (expense) benefit on (gains) losses reclassified ( 119 ) ( 70 ) ( 120 ) 591 Reclassification from accumulated OCI to net income for (gains) ( 446 ) ( 261 ) ( 452 ) 2,224 Change in unrealized gains (losses) on available-for-sale $ ( 5,807 ) $ ( 18,092 ) $ ( 17,338 ) $ 14,618 Effect of change in discount rate assumptions on the LFPB: Change in effect in discount rate assumptions on the LFPB before income taxes $ 137,798 $ 85,310 $ 305,884 $ ( 95,971 ) Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income 29,211 17,958 65,357 ( 20,941 ) Change in effect in discount rate assumptions on the LFPB, net of income taxes $ 108,587 $ 67,352 $ 240,527 $ ( 75,030 ) |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | (15) Debt Notes Payable. As of June 30, 2024, 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 June 30, 2024, we were in compliance with the covenants of the Senior Notes. No events of default occurred on the Senior Notes during the three and six months ended June 30, 2024. Further discussion on the Company’s Senior Notes is included in Note 11 (Debt) to our consolidated financial statements within our 2023 Annual Report. Surplus Note. As of June 30, 2024, the principal amount outstanding on the Surplus Note issued by Vidalia Re was $ 1.4 billion, which is equal to the principal amount of the LLC Note. The principal amounts of the Surplus Note and the LLC Note have reached their peaks and are expected to decrease 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 % . 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 1.000 % to 1.625 % per annum and for base rate loans ranging from 0.000 % 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 0.100 % 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 and six months ended June 30, 2024 , 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 and six months ended June 30, 2024 . |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2024 | |
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 service 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; • Other Senior Health segment revenues earned for providing certain marketing services and health risk assessment services, which are 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 19 (Revenue from Contracts with Customers) to our consolidated financial statements within our 2023 Annual Report. The disaggregation of our revenues from contracts with customers were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Term Life Insurance segment revenues: Other, net $ 12,624 $ 12,280 $ 25,274 $ 24,513 Total segment revenues from contracts with customers 12,624 12,280 25,274 24,513 Revenues from sources other than contracts with customers 414,320 399,593 842,083 808,430 Total Term Life Insurance segment revenues $ 426,944 $ 411,873 $ 867,357 $ 832,943 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 101,177 $ 74,958 $ 189,924 $ 147,346 Asset-based revenues 119,411 99,521 234,110 197,625 Account-based revenues 23,740 23,095 46,919 45,886 Other, net 3,224 3,121 6,482 6,240 Total segment revenues from contracts with customers 247,552 200,695 477,435 397,097 Revenues from sources other than contracts 13,354 13,814 27,187 27,614 Total Investment and Savings Products segment revenues $ 260,906 $ 214,509 $ 504,622 $ 424,711 Senior Health segment revenues: Commissions and fees $ 11,576 $ 11,371 $ 17,652 $ 27,125 Other, net 844 3,519 1,648 6,474 Total Senior Health segment revenues $ 12,420 $ 14,890 $ 19,300 $ 33,599 Corporate and Other Distributed Products segment revenues: Commissions and fees $ 10,511 $ 10,371 $ 18,998 $ 19,081 Other, net 764 1,235 1,467 2,436 Total segment revenues from contracts with customers 11,275 11,606 20,465 21,517 Revenues from sources other than contracts with customers 91,830 35,507 134,460 65,652 Total Corporate and Other Distributed Products segment revenues $ 103,105 $ 47,113 $ 154,925 $ 87,169 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 as 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. The estimate of the renewal commissions receivable recognized in our Senior Health segment is likely to change in a subsequent period when the ultimate disposition of the assets of the senior health business becomes known or is finalized. Activity in the renewal commissions receivable account was as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Senior Health segment: Balance, beginning of period $ 115,933 $ 134,199 $ 128,886 $ 139,399 Commissions revenue 6,989 6,923 13,313 15,985 Less: collections ( 9,970 ) ( 10,304 ) ( 21,406 ) ( 24,566 ) Tail revenue adjustment from change in estimate ( 1,810 ) - ( 9,651 ) - Balance, at the end of period $ 111,142 $ 130,818 $ 111,142 $ 130,818 Corporate and Other Distributed Products segment: Balance, beginning of period $ 60,365 $ 60,210 $ 61,372 $ 60,644 Commissions revenue 5,864 6,405 10,903 11,775 Less: collections ( 6,349 ) ( 6,209 ) ( 12,395 ) ( 12,013 ) Balance, at the end of period $ 59,880 $ 60,406 $ 59,880 $ 60,406 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. |
Impairment of Goodwill and Othe
Impairment of Goodwill and Other Long-lived Assets | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Goodwill and Other Long-lived Assets | (17) Impairment of Goodwill and Other Long-lived Assets 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 e-TeleQuote, 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. During the three months ended June 30, 2024, the Company began a process to evaluate potential exit options for its senior health business. The culmination of the analysis performed to evaluate exit options, identify disposal values and prepare a recommendation to the Board constituted triggering events that existed as of June 30, 2024 that indicated the goodwill and long-lived assets held in the Senior Health segment were more-likely-than-not impaired. Refer also to Note 1 (Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies) for additional information related to the Board’s decision in July 2024 to exit the senior health business. As part of the Company’s due diligence to evaluate exit plans, the Company obtained market participant views of the fair value of the business. The Company performed a quantitative impairment analysis using the market approach to determine the recoverability of the long-lived assets (primarily intangible assets) and goodwill of the Senior Health reporting unit. Under the market approach to determine fair value, the Company used a range of values, including bids obtained during the Company’s analysis of exit options, which are classified as Level 2 in the fair value hierarchy. We relied solely on a market approach to develop the fair value estimates in our quantitative impairment analysis given the availability and relevance of the information received from interested parties and our advisors during the process to evaluate exit options. The Company compared the range of fair values to the carrying value of the reporting unit, including the long-lived assets. Based on this analysis, we determined that there is no fair value to be ascribed to substantially all of the segment's long-lived assets and its goodwill as of June 30, 2024. As a result, we recognized impairments of goodwill, intangible assets, and other assets of $ 127.7 million, $ 124.5 million, and $ 1.4 million, respectively, during the second quarter of 2024. These impairments are included in impairment of goodwill and other long-lived assets in the accompanying unaudited condensed consolidated statements of income. Prior to impairment, the Company recognized amortization expense related to these intangible assets and other assets for the three and six months ended June 30, 2024 of $ 2.8 million and $ 5.6 million, respectively. The impairment charge recognized related to goodwill did not impact the Company’s taxable income as the goodwill acquired from the e-TeleQuote acquisition does not have any tax basis. Refer to Note 18 (Income Taxes) for a discussion of the impact that the impairment charges had on our effective tax rate. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (18) Income Taxes Effective tax rate reconciliation . Total income tax expense is different from the amount determined by multiplying income before income taxes by the U.S. statutory federal tax rate of 21 % for the three and six months ended June 30, 2024 and 2023. The reconciliation for such difference follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Goodwill impairment 105.8 % — % 4.4 % — % Valuation allowance against state net operating losses 142.1 % — % 5.9 % — % Gain on insurance proceeds ( 134.7 )% — % ( 5.6 )% — % State income taxes ( 101.2 )% 0.4 % ( 3.9 )% 0.5 % Difference in statutory rate 22.1 % 0.8 % 1.8 % 0.9 % Withholding taxes on foreign earnings 11.2 % 0.4 % 0.9 % 0.5 % Unrecognized tax benefits 9.5 % 0.2 % 0.9 % 0.2 % Nondeductible executive compensation 5.6 % 0.3 % 0.5 % 0.3 % Other permanent items 3.6 % 0.4 % ( 0.3 )% — % Effective tax rate 85.0 % 23.5 % 25.6 % 23.4 % Deferred tax assets and liabilities . During the second quarter of 2024, the deferred tax liability related to intangible assets was reduced by $ 35.1 million due to the impairment of the related intangible assets. Refer to Note 17 (Impairment of Goodwill and Other Long-lived Assets) for additional information related to the impairment charges. The Company also recorded a valuation allowance of $ 11.1 million related to the e-TeleQuote state net operating losses because management determined as of June 30, 2024 that it was more-likely-than-not that the deferred tax assets will not be realized. |
Description of Business, Basi_2
Description of Business, Basis of Presentation, and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, the statements of income, comprehensive income (loss), and stockholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. 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 (“SEC”). 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, 2023 (“2023 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”), liability for future policy benefits (“LFPB”) 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. The results of the senior health business are included in the Company's continuing operations in the condensed consolidated statements of income because they do not meet the requirements to be reported as discontinued operations as of June 30, 2024. Specifically, the Company intends to exit the senior health business via a disposal other than by sale. |
Changes to Accounting Principles | Changes to Accounting Policies . All significant accounting policies remain unchanged from the 2023 Annual Report unless otherwise described. 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 Standards Not Yet Adopted. Accounting standard Adoption date Description Effects on the financial statements Segment Reporting (Topic 280)— Improvements to Reportable Segment Disclosures ASU 2023-07 Annual periods beginning after December 15, 2023 and interim periods thereafter. Early adoption is permitted. Retrospective transition for all periods presented. In November 2023, the FASB issued the ASU to enhance segment disclosures. The amendments (1) require disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss; (2) require disclosure of “other segment items” by reportable segment, which is the difference between segment revenue and significant segment expenses; (3) require annual segment disclosures to be included in interim financial statements; (4) clarify that if the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, an entity may report one or more of those additional measures; and (5) require disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. We do not believe the adoption of the standard will have a material impact on our consolidated financial statements. We will revise disclosures in accordance with the new standard in our annual 2024 financial statements and for interim periods thereafter. Income Taxes (Topic 740)—Improvements to Income Tax Disclosures ASU 2023-09 Annual periods beginning after December 15, 2024. Early adoption is permitted. Prospective transition, although retrospective transition is permitted. In December 2023, the FASB issued the ASU to increase income tax transparency through improvements primarily related to the existing rate reconciliation and income taxes paid disclosures. The amendments require (1) consistent categories and greater disaggregation of information in the rate reconciliation; and (2) income taxes paid disaggregated by jurisdiction. The ASU also removes certain disclosure requirements, such as reasonably possible significant changes in the total amount of unrecognized tax benefits within 12 months of the reporting date. We do not believe the adoption of the standard will have a material impact on our consolidated financial statements. We will revise disclosures in accordance with the new standard in our annual 2025 financial statements. In addition, in March 2024, the SEC issued final rules that include updates to Regulation S-X for climate-related disclosures (the “Climate-Related Disclosures rule”). The Climate-Related Disclosures rule is currently stayed pending the completion of judicial review. The Climate-Related Disclosures rule requires a registrant to disclose in the notes to the financial statements (1) expenditures and losses, and capitalized costs and charges in each case excluding recoveries, incurred or recognized during a fiscal year as a result of severe weather events and other natural conditions; and (2) where material to a company's plan to achieve disclosed climate-related targets or goals, information regarding carbon offsets and renewable energy credits. The adoption of the Climate-Related Disclosures rule will impact our disclosures and may require changes to certain of our processes, systems, and controls. We are currently evaluating existing processes and data to determine what changes may be necessary. If the stay is lifted, the updates to Regulation S-X included in the Climate-Related Disclosures rule would be effective for the Company’s Form 10-K for the fiscal year ending December 31, 2025. Recently issued accounting guidance not discussed above is not applicable, is immaterial to our consolidated financial statements, or did not or is not expected to have a material impact on our business. |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Revenues: Term life insurance segment $ 426,944 $ 411,873 $ 867,357 $ 832,943 Investment and savings products segment 260,906 214,509 504,622 424,711 Senior health segment 12,420 14,890 19,300 33,599 Corporate and other distributed products segment 103,105 47,113 154,925 87,169 Total revenues $ 803,375 $ 688,385 $ 1,546,204 $ 1,378,422 Net investment income: Term life insurance segment $ - $ - $ - $ - Investment and savings products segment - - - - Senior health segment - - - - Corporate and other distributed products segment 38,452 32,398 76,258 63,462 Total net investment income $ 38,452 $ 32,398 $ 76,258 $ 63,462 Amortization of DAC: Term life insurance segment $ 71,916 $ 66,004 $ 142,407 $ 132,072 Investment and savings products segment 1,478 1,409 2,679 2,901 Senior health segment - - - - Corporate and other distributed products segment 249 697 606 1,060 Total amortization of DAC $ 73,643 $ 68,110 $ 145,692 $ 136,033 Non-cash share-based compensation expense: Term life insurance segment $ 954 $ 726 $ 3,096 $ 2,576 Investment and savings products segment 715 666 1,754 1,658 Senior health segment 195 171 295 330 Corporate and other distributed products segment 1,189 895 10,523 9,967 Total non-cash share-based compensation expense $ 3,053 $ 2,458 $ 15,668 $ 14,531 Income (loss) before income taxes: Term life insurance segment $ 147,779 $ 140,113 $ 286,148 $ 270,654 Investment and savings products segment 74,782 59,583 140,345 115,691 Senior health segment ( 264,972 ) ( 6,032 ) ( 279,125 ) ( 9,795 ) Corporate and other distributed products segment 50,208 ( 4,768 ) 39,664 ( 20,712 ) Total income before income taxes $ 7,797 $ 188,896 $ 187,032 $ 355,838 |
Total Assets by Segment | Total assets by segment were as follows: June 30, 2024 December 31, 2023 (In thousands) Assets: Term life insurance segment $ 6,486,934 $ 6,543,923 Investment and savings products segment (1) 2,410,463 2,537,079 Senior health segment 144,227 419,110 Corporate and other distributed products segment 5,524,080 5,527,620 Total assets $ 14,565,704 $ 15,027,732 (1) The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 156.5 million and $ 141.3 million as of June 30, 2024 and December 31, 2023 , 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 – were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Revenues by country: United States $ 707,697 $ 602,132 $ 1,355,039 $ 1,205,982 Canada 95,678 86,253 191,165 172,440 Total revenues $ 803,375 $ 688,385 $ 1,546,204 $ 1,378,422 June 30, 2024 December 31, 2023 (In thousands) Long-lived assets by country: United States $ 37,724 $ 35,434 Canada 2,409 2,636 Other 185 197 Total long-lived assets $ 40,318 $ 38,267 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of AFS Securities Reconciliation | The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale (“AFS”) securities were as follows: June 30, 2024 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 $ 10,368 $ 9 $ ( 480 ) $ 9,897 Foreign government 168,743 638 ( 10,050 ) 159,331 States and political subdivisions 136,350 101 ( 14,983 ) 121,468 Corporates 1,845,728 8,267 ( 130,992 ) 1,723,003 Residential mortgage-backed securities 504,580 546 ( 69,523 ) 435,603 Commercial mortgage-backed securities 118,240 93 ( 12,637 ) 105,696 Other asset-backed securities 249,905 1,111 ( 9,984 ) 241,032 Total fixed-maturity securities $ 3,033,914 $ 10,765 $ ( 248,649 ) $ 2,796,030 December 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 $ 9,974 $ 18 $ ( 476 ) $ 9,516 Foreign government 170,354 1,616 ( 8,588 ) 163,382 States and political subdivisions 145,779 891 ( 14,681 ) 131,989 Corporates 1,723,023 14,787 ( 120,286 ) 1,617,524 Residential mortgage-backed securities 499,771 1,688 ( 63,928 ) 437,531 Commercial mortgage-backed securities 127,454 156 ( 15,443 ) 112,167 Other asset-backed securities 258,857 763 ( 12,262 ) 247,358 Total fixed-maturity securities 2,935,212 19,919 ( 235,664 ) 2,719,467 Short-term investments 276 - - 276 Total fixed-maturity and short-term investments $ 2,935,488 $ 19,919 $ ( 235,664 ) $ 2,719,743 |
Fixed-maturity Securities Classified by Contractual Maturity Securities Date | The scheduled maturity distribution of the AFS fixed-maturity securities portfolio as of June 30, 2024 was as follows: Amortized cost Fair value (In thousands) Due in one year or less $ 183,824 $ 182,161 Due after one year through five years 745,364 716,707 Due after five years through 10 years 819,934 741,336 Due after 10 years 412,067 373,495 2,161,189 2,013,699 Mortgage- and asset-backed securities 872,725 782,331 Total AFS fixed-maturity securities $ 3,033,914 $ 2,796,030 |
Costs and Fair Values of Fixed-Maturity Securities Classified as Trading Securities | The costs and fair values of the fixed-maturity securities classified as trading securities were as follows: June 30, 2024 December 31, 2023 Cost Fair value Cost Fair value (In thousands) Fixed-maturity securities $ 3,719 $ 3,158 $ 18,761 $ 18,383 |
Net Investment Income | Net Investment Income. The components of net investment income were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Fixed-maturity securities (available-for-sale) $ 30,618 $ 26,357 $ 60,554 $ 52,163 Fixed-maturity security (held-to-maturity) 15,659 16,608 31,444 33,042 Equity securities 323 380 712 760 Policy loans and other invested assets 543 352 1,005 281 Cash, cash equivalents and short-term investments 6,640 5,840 13,621 10,968 Total return on deposit asset underlying 10% coinsurance agreement (1) 2,400 1,636 4,574 3,685 Gross investment income 56,183 51,173 111,910 100,899 Investment expenses ( 2,072 ) ( 2,167 ) ( 4,208 ) ( 4,395 ) Investment income net of investment expenses 54,111 49,006 107,702 96,504 Interest expense on surplus note ( 15,659 ) ( 16,608 ) ( 31,444 ) ( 33,042 ) Net investment income $ 38,452 $ 32,398 $ 76,258 $ 63,462 (1) I ncludes $ 0.2 million and $ 0.1 m illion of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2024, respectively. Includes $( 0.9 ) million and $( 1.2 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2023 , 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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Realized investment gains (losses): Gross gains from sales of available-for-sale fixed-maturity securities $ 673 $ 442 $ 680 $ 492 Gross losses from sales of available-for-sale fixed-maturity securities ( 108 ) ( 105 ) ( 108 ) ( 1,140 ) Net realized investment gains (losses): 565 337 572 ( 648 ) Other investment gains (losses): Credit losses impairment of available-for-sale securities - ( 6 ) - ( 2,167 ) Market gains (losses) recognized in net income during the period on equity securities ( 675 ) ( 656 ) 620 ( 2,130 ) Gains (losses) from bifurcated options 3 ( 8 ) ( 1 ) - Gains (losses) on trading securities 8 5 15 9 Other investment gains (losses): ( 664 ) ( 665 ) 634 ( 4,288 ) Investment gains (losses) $ ( 99 ) $ ( 328 ) $ 1,206 $ ( 4,936 ) |
Schedule of Proceeds from Sales or Other Redemptions of Available-for-Sale Securities | The proceeds from sales or other redemptions of AFS securities were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Proceeds from sales or other redemptions $ 130,676 $ 151,962 $ 217,094 $ 237,392 |
Schedule of Securities in Unrealized Loss Position | The following tables summarize all AFS securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2024 and December 31, 2023, aggregated by major security type and by length of time such securities have continuously been in an unrealized loss position: June 30, 2024 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (In thousands) Fixed-maturity securities: U.S. government and agencies $ 1,870 $ ( 25 ) $ 7,710 $ ( 455 ) Foreign government 25,329 ( 394 ) 111,584 ( 9,656 ) States and political subdivisions 9,142 ( 220 ) 107,243 ( 14,763 ) Corporates 307,078 ( 4,606 ) 1,149,479 ( 126,386 ) Residential mortgage-backed securities 35,393 ( 388 ) 352,139 ( 69,135 ) Commercial mortgage-backed securities 7,997 ( 64 ) 92,915 ( 12,573 ) Other asset-backed securities 25,046 ( 55 ) 132,387 ( 9,929 ) Total fixed-maturity securities $ 411,855 $ ( 5,752 ) $ 1,953,457 $ ( 242,897 ) December 31, 2023 Less than 12 months 12 months or longer Fair value Unrealized losses Fair value Unrealized losses (In thousands) Fixed-maturity securities: U.S. government and agencies $ - $ - $ 9,188 $ ( 476 ) Foreign government 17,209 ( 62 ) 104,827 ( 8,526 ) States and political subdivisions 4,883 ( 46 ) 107,021 ( 14,635 ) Corporates 39,783 ( 907 ) 1,231,694 ( 119,379 ) Residential mortgage-backed securities 14,872 ( 142 ) 360,987 ( 63,786 ) Commercial mortgage-backed securities 4,721 ( 107 ) 97,417 ( 15,336 ) Other asset-backed securities 41,417 ( 159 ) 136,841 ( 12,103 ) Total fixed-maturity securities $ 122,885 $ ( 1,423 ) $ 2,047,975 $ ( 234,241 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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: June 30, 2024 Level 1 Level 2 Level 3 Total (In thousands) Fair value assets: Available-for-sale fixed-maturity securities: U.S. government and agencies $ - $ 9,897 $ - $ 9,897 Foreign government - 159,331 - 159,331 States and political subdivisions - 121,468 - 121,468 Corporates 3,870 1,719,133 - 1,723,003 Mortgage- and asset-backed securities: Residential mortgage-backed securities - 435,603 - 435,603 Commercial mortgage-backed securities - 105,696 - 105,696 Other asset-backed securities - 232,182 8,850 241,032 Total available-for-sale fixed-maturity securities 3,870 2,783,310 8,850 2,796,030 Equity securities 23,441 982 1,603 26,026 Trading securities - 3,158 - 3,158 Cash and cash equivalents 441,563 185,729 - 627,292 Separate accounts - 2,253,966 - 2,253,966 Total fair value assets $ 468,874 $ 5,227,145 $ 10,453 $ 5,706,472 Fair value liabilities: Separate accounts $ - $ 2,253,966 $ - $ 2,253,966 Total fair value liabilities $ - $ 2,253,966 $ - $ 2,253,966 December 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 $ - $ 9,516 $ - $ 9,516 Foreign government - 163,382 - 163,382 States and political subdivisions - 131,989 - 131,989 Corporates 3,951 1,613,573 - 1,617,524 Mortgage-and asset-backed securities: Residential mortgage-backed securities - 437,531 - 437,531 Commercial mortgage-backed securities - 112,167 - 112,167 Other asset-backed securities - 246,858 500 247,358 Total available-for-sale fixed-maturity securities 3,951 2,715,016 500 2,719,467 Short-term investments - 276 - 276 Total available-for-sale securities 3,951 2,715,292 500 2,719,743 Equity securities 27,062 974 1,644 29,680 Trading securities - 18,383 - 18,383 Cash and cash equivalents 613,148 - - 613,148 Separate accounts - 2,395,842 - 2,395,842 Total fair value assets $ 644,161 $ 5,130,491 $ 2,144 $ 5,776,796 Fair value liabilities: Separate accounts $ - $ 2,395,842 $ - $ 2,395,842 Total fair value liabilities $ - $ 2,395,842 $ - $ 2,395,842 |
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 June 30, Six months ended June 30, (1) 2024 2023 2024 2023 (In thousands) Level 3 assets, beginning of period $ 1,631 $ 4,008 $ 2,144 $ 1,710 Net unrealized gains (losses) included in other comprehensive income (loss) 35 ( 60 ) 39 ( 61 ) Realized gains (losses) and accretion (amortization) recognized in earnings ( 28 ) ( 64 ) ( 41 ) ( 81 ) Purchases 8,815 - 8,815 2,316 Settlements - ( 8 ) - ( 8 ) Transfers into Level 3 - - - - Transfers out of Level 3 - ( 2,248 ) ( 504 ) ( 2,248 ) Level 3 assets, end of period $ 10,453 $ 1,628 $ 10,453 $ 1,628 (1) Transfers of investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented. |
Carrying Values and Estimated Fair Values of Financial Instruments | The carrying values and estimated fair values of our financial instruments were as follows: June 30, 2024 December 31, 2023 Carrying value Estimated fair value Carrying value Estimated fair value (In thousands) Assets: Fixed-maturity securities (available-for-sale) $ 2,796,030 $ 2,796,030 $ 2,719,467 $ 2,719,467 Fixed-maturity security (held-to-maturity) (1) 1,353,370 1,268,174 1,386,980 1,334,892 Short-term investments (available-for-sale) - - 276 276 Equity securities 26,026 26,026 29,680 29,680 Trading securities 3,158 3,158 18,383 18,383 Policy loans (1) 38,426 38,426 38,975 38,975 Deposit asset underlying 10 % coinsurance agreement (1) 171,848 171,848 187,377 187,377 Separate accounts 2,253,966 2,253,966 2,395,842 2,395,842 Liabilities: Note payable (2) (3) $ 594,110 $ 499,658 $ 593,709 $ 508,832 Surplus note (1) (2) 1,353,014 1,265,532 1,386,592 1,329,159 Separate accounts 2,253,966 2,253,966 2,395,842 2,395,842 (1) Classified as a Level 3 fair value measurement. (2) Carrying value amounts shown are net of unamortized issuance costs. (3) Classified as a Level 2 fair value measurement. |
Reinsurance (Tables)
Reinsurance (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Reinsurance Disclosures [Abstract] | |
In-force Life Insurance | Details on in-force life insurance were as follows: June 30, 2024 December 31, 2023 (Dollars in thousands) Direct life insurance in-force $ 952,962,977 $ 946,756,416 Amounts ceded to other companies ( 814,622,587 ) ( 810,145,801 ) Net life insurance in-force $ 138,340,390 $ 136,610,615 Percentage of reinsured life insurance in-force 85 % 86 % |
Reinsurance Recoverable Estimated by Reinsurer and Financial Strength Ratings of Reinsurer | Reinsurance recoverables include ceded policy benefit reserve balances, ceded claim liabilities, and ceded claims paid that have not been reimbursed. The Company allocated reinsurance recoverables estimated at the cohort level to individual reinsurers for disclosure purposes. Reinsurance recoverables estimated by reinsurer and the financial strength ratings of those reinsurers were as follows: June 30, 2024 December 31, 2023 Reinsurance recoverables A.M. Best rating Reinsurance recoverables A.M. Best rating (In thousands) Swiss Re Life & Health America Inc. (Novated from Pecan Re Inc.) (1) $ 2,131,772 A+ $ 2,271,223 A+ Munich Re of Malta (1) (2) 222,398 NR 243,890 NR SCOR Global Life Reinsurance Companies (3) 157,512 A 160,381 A American Health and Life Insurance Company (1) 131,775 B++ 141,771 B++ Swiss Re Life & Health America Inc. (4) 45,609 A+ 43,873 A+ RGA Reinsurance Company 42,332 A+ 43,188 A+ Korean Reinsurance Company 42,152 A 41,373 A Munich American Reassurance Company 40,819 A+ 50,273 A+ All other reinsurers 19,808 - 20,925 - Allowance for credit losses ( 1,122 ) ( 1,120 ) Reinsurance recoverables $ 2,833,055 $ 3,015,777 NR – not rated by A.M. Best (1) Reinsurance recoverables include 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 recoverable 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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Balance, beginning of period $ 1,048 $ 3,563 $ 1,120 $ 2,936 Current period provision for expected credit losses 74 2,036 2 2,663 Balance, at the end of period $ 1,122 $ 5,599 $ 1,122 $ 5,599 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Balances and Activity in DAC Roll Forward | The balances and activity in DAC were as follows: Six months ended Year ended June 30, 2024 December 31, 2023 (In thousands) Term Life Segregated Funds (Canada) Term Life Segregated Funds (Canada) DAC balance, beginning of period $ 3,366,281 $ 63,029 $ 3,106,148 $ 62,341 Capitalization 274,632 1,562 521,718 4,353 Amortization ( 142,407 ) ( 2,679 ) ( 268,803 ) ( 5,479 ) Foreign exchange translation and other ( 9,130 ) ( 2,288 ) 7,218 1,814 DAC balance, at the end of period $ 3,489,376 $ 59,624 $ 3,366,281 $ 63,029 |
Reconciliation of DAC | Reconciliation of DAC by product was as follows: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 3,489,376 $ 3,366,281 Segregated Funds (Canada) 59,624 63,029 Other 17,126 17,924 Total DAC, net $ 3,566,126 $ 3,447,234 |
Separate Accounts (Tables)
Separate Accounts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 by major investment category: June 30, 2024 December 31, 2023 (In thousands) Fixed-income securities $ 765,636 $ 876,524 Equity securities 1,430,461 1,436,122 Cash and cash equivalents 67,359 87,530 Due to/from funds ( 9,510 ) ( 4,357 ) Other 20 23 Total separate account assets $ 2,253,966 $ 2,395,842 |
Schedule of Balances and Changes in Seperate Account Liabilities | The following table represents the balances of and changes in separate account liabilities: Six months ended Year ended June 30, 2024 December 31, 2023 (In thousands) Separate account liabilities balance, beginning of period $ 2,395,842 $ 2,305,717 Premiums and deposits 88,494 186,631 Surrenders and withdrawals ( 223,559 ) ( 343,473 ) Investment performance 105,546 245,565 Management fees and other charges ( 25,251 ) ( 62,159 ) Foreign exchange translation ( 87,106 ) 63,561 Separate account liabilities balance, end of period $ 2,253,966 $ 2,395,842 Cash surrender value $ 2,221,443 $ 2,354,813 |
Policy Claims and Other Benef_2
Policy Claims and Other Benefits Payable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 and other benefits payable were as follows: Six months ended June 30, 2024 2023 (In thousands) Policy claims and other benefits payable, beginning of period $ 513,803 $ 538,250 Less reinsured policy claims and other benefits payable 534,674 542,606 Net balance, beginning of period ( 20,871 ) ( 4,356 ) Incurred related to current year 129,041 121,251 Incurred related to prior years (1) ( 3,565 ) ( 1,723 ) Total incurred 125,476 119,528 Claims paid related to current year, net of reinsured policy claims received ( 194,113 ) ( 162,580 ) Reinsured policy claims received related to prior years, net of claims paid 40,413 17,519 Total paid ( 153,700 ) ( 145,061 ) Foreign currency translation ( 334 ) 182 Net balance, end of period ( 49,429 ) ( 29,707 ) Add reinsured policy claims and other benefits payable 528,202 524,848 Balance, end of period $ 478,773 $ 495,141 (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) | 6 Months Ended |
Jun. 30, 2024 | |
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: Six months ended Year ended June 30, 2024 December 31, 2023 (Dollars in thousands) Present Value of Expected Net Premiums Term Life Insurance Balance at then current discount rate, beginning of period $ 13,977,353 $ 13,053,386 Balance at original discount rate, beginning of period 14,012,553 13,521,221 Effect of changes in cash flow assumptions - ( 5,364 ) Effect of actual variances from expected experience ( 234,156 ) ( 229,884 ) Adjusted balance, beginning of period 13,778,397 13,285,973 Issuances 1,003,321 1,836,290 Interest accrual at original discount rate 299,575 544,806 Net premiums collected ( 858,255 ) ( 1,682,924 ) Foreign currency translation ( 38,685 ) 28,408 Expected net premiums at original discount rate, end of period 14,184,353 14,012,553 Effect of changes in discount rate assumptions ( 444,845 ) ( 35,200 ) Expected net premiums at then current discount rate, end of period $ 13,739,508 $ 13,977,353 Present Value of Expected Future Policy Benefits Balance at then current discount rate, beginning of period $ 20,508,435 $ 19,143,253 Balance at original discount rate, beginning of period 20,391,694 19,706,818 Effect of changes in cash flow assumptions - ( 7,254 ) Effect of actual variances from expected experience ( 238,305 ) ( 225,539 ) Adjusted balance, beginning of period 20,153,389 19,474,025 Issuances 1,008,739 1,840,996 Interest accrual at original discount rate 458,419 856,727 Benefit payments ( 932,348 ) ( 1,823,542 ) Foreign currency translation ( 59,142 ) 43,488 Expected future policy benefits at original discount rate, end of period 20,629,057 20,391,694 Effect of changes in discount rate assumptions ( 651,747 ) 116,741 Expected future policy benefits at then current discount rate, end of period $ 19,977,310 $ 20,508,435 LFPB $ 6,237,802 $ 6,531,082 Less: reinsurance recoverables 2,819,445 3,001,074 Net LFPB, after reinsurance recoverables $ 3,418,357 $ 3,530,008 Weighted-average duration of net LFPB (in years) 7.9 7.9 |
Schedule of Reconcile LFPB | The following table reconciles the LFPB to the unaudited condensed consolidated balance sheets: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 6,237,802 $ 6,531,082 Other 198,530 210,943 Total $ 6,436,332 $ 6,742,025 |
Schedule of Reconcile Reinsurance Recoverables | The following table reconciles the reinsurance recoverables to the unaudited condensed consolidated balance sheets: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance $ 2,819,445 $ 3,001,074 Other 13,610 14,703 Total $ 2,833,055 $ 3,015,777 |
Schedule of Amount of Discounted (using the then current discount rate) and Undiscounted Expected Gross Premiums and Expected Future Benefit Payments | The amount of discounted (using the then current discount rate) and undiscounted expected gross premiums and expected future benefit payments were as follows: June 30, 2024 December 31, 2023 (In thousands) Term Life Insurance Undiscounted Discounted Undiscounted Discounted Expected future benefit payments $ 33,839,938 $ 19,977,311 $ 33,342,272 $ 20,508,435 Expected future gross premiums $ 39,155,381 $ 26,164,310 $ 38,701,869 $ 26,687,880 |
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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Term Life Insurance Gross premiums $ 840,668 $ 823,297 $ 1,676,989 $ 1,636,177 Interest accretion (expense) $ ( 81,252 ) $ ( 77,101 ) $ ( 158,845 ) $ ( 153,785 ) |
Schedule of Weighted Average Discount Rates | The weighted-average discount rates were as follows: June 30, 2024 December 31, 2023 Term Life Insurance Original discount rate 4.99 % 4.93 % Current discount rate 5.47 % 4.91 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Changes in Outstanding Common Stock | The following table shows changes in our outstanding common stock: Six months ended June 30, 2024 2023 (In thousands) Common stock, beginning of period $ 34,996 $ 36,824 Shares of common stock issued upon exercise of stock options - 60 Shares of common stock issued when sales restrictions on restricted stock units 124 168 Common stock retired ( 1,126 ) ( 1,206 ) Common stock, end of period $ 33,994 $ 35,846 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands, except per-share amounts) Basic EPS: Numerator: Net income $ 1,171 $ 144,504 $ 139,074 $ 272,603 Income attributable to unvested participating securities ( 96 ) ( 609 ) ( 546 ) ( 1,190 ) Net income used in calculating basic EPS $ 1,075 $ 143,895 $ 138,528 $ 271,413 Denominator: Weighted-average vested shares 34,383 36,215 34,633 36,461 Basic EPS $ 0.03 $ 3.97 $ 4.00 $ 7.44 Diluted EPS: Numerator: Net income $ 1,171 $ 144,504 $ 139,074 $ 272,603 Income attributable to unvested participating securities ( 96 ) ( 608 ) ( 546 ) ( 1,187 ) Net income used in calculating diluted EPS $ 1,075 $ 143,896 $ 138,528 $ 271,416 Denominator: Weighted-average vested shares 34,383 36,215 34,633 36,461 Dilutive effect of incremental shares to be issued for - 75 55 84 Weighted-average shares used in calculating diluted EPS 34,383 36,290 34,688 36,545 Diluted EPS $ 0.03 $ 3.97 $ 3.99 $ 7.43 |
Share-Based Transactions (Table
Share-Based Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Impact of Equity Awards Granted | The impact of equity awards granted under the OIP are as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Equity awards expense recognized $ 3,053 $ 2,463 $ 15,668 $ 14,588 Equity awards expense deferred 2,633 2,340 4,832 4,863 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of other comprehensive income (loss) (“OCI”), including the income tax expense or benefit allocated to each component, were as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Foreign currency translation adjustments: Change in unrealized foreign currency translation gains (losses) $ ( 3,817 ) $ 7,005 $ ( 13,272 ) $ 8,026 Income tax expense (benefit) on unrealized foreign currency - - - - Change in unrealized foreign currency translation gains $ ( 3,817 ) $ 7,005 $ ( 13,272 ) $ 8,026 Unrealized gain (losses) on available-for-sale securities: Change in unrealized holding gains (losses) arising during period $ ( 6,756 ) $ ( 23,068 ) $ ( 21,602 ) $ 15,364 Income tax expense (benefit) on unrealized holding gains ( 1,395 ) ( 5,237 ) ( 4,716 ) 2,970 Change in unrealized holding gains (losses) on available-for-sale ( 5,361 ) ( 17,831 ) ( 16,886 ) 12,394 Reclassification from accumulated OCI to net income for (gains) ( 565 ) ( 331 ) ( 572 ) 2,815 Income tax (expense) benefit on (gains) losses reclassified ( 119 ) ( 70 ) ( 120 ) 591 Reclassification from accumulated OCI to net income for (gains) ( 446 ) ( 261 ) ( 452 ) 2,224 Change in unrealized gains (losses) on available-for-sale $ ( 5,807 ) $ ( 18,092 ) $ ( 17,338 ) $ 14,618 Effect of change in discount rate assumptions on the LFPB: Change in effect in discount rate assumptions on the LFPB before income taxes $ 137,798 $ 85,310 $ 305,884 $ ( 95,971 ) Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income 29,211 17,958 65,357 ( 20,941 ) Change in effect in discount rate assumptions on the LFPB, net of income taxes $ 108,587 $ 67,352 $ 240,527 $ ( 75,030 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Term Life Insurance segment revenues: Other, net $ 12,624 $ 12,280 $ 25,274 $ 24,513 Total segment revenues from contracts with customers 12,624 12,280 25,274 24,513 Revenues from sources other than contracts with customers 414,320 399,593 842,083 808,430 Total Term Life Insurance segment revenues $ 426,944 $ 411,873 $ 867,357 $ 832,943 Investment and Savings Products segment revenues: Commissions and fees Sales-based revenues $ 101,177 $ 74,958 $ 189,924 $ 147,346 Asset-based revenues 119,411 99,521 234,110 197,625 Account-based revenues 23,740 23,095 46,919 45,886 Other, net 3,224 3,121 6,482 6,240 Total segment revenues from contracts with customers 247,552 200,695 477,435 397,097 Revenues from sources other than contracts 13,354 13,814 27,187 27,614 Total Investment and Savings Products segment revenues $ 260,906 $ 214,509 $ 504,622 $ 424,711 Senior Health segment revenues: Commissions and fees $ 11,576 $ 11,371 $ 17,652 $ 27,125 Other, net 844 3,519 1,648 6,474 Total Senior Health segment revenues $ 12,420 $ 14,890 $ 19,300 $ 33,599 Corporate and Other Distributed Products segment revenues: Commissions and fees $ 10,511 $ 10,371 $ 18,998 $ 19,081 Other, net 764 1,235 1,467 2,436 Total segment revenues from contracts with customers 11,275 11,606 20,465 21,517 Revenues from sources other than contracts with customers 91,830 35,507 134,460 65,652 Total Corporate and Other Distributed Products segment revenues $ 103,105 $ 47,113 $ 154,925 $ 87,169 |
Summary of Renewal Commissions Receivable | Activity in the renewal commissions receivable account was as follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 (In thousands) Senior Health segment: Balance, beginning of period $ 115,933 $ 134,199 $ 128,886 $ 139,399 Commissions revenue 6,989 6,923 13,313 15,985 Less: collections ( 9,970 ) ( 10,304 ) ( 21,406 ) ( 24,566 ) Tail revenue adjustment from change in estimate ( 1,810 ) - ( 9,651 ) - Balance, at the end of period $ 111,142 $ 130,818 $ 111,142 $ 130,818 Corporate and Other Distributed Products segment: Balance, beginning of period $ 60,365 $ 60,210 $ 61,372 $ 60,644 Commissions revenue 5,864 6,405 10,903 11,775 Less: collections ( 6,349 ) ( 6,209 ) ( 12,395 ) ( 12,013 ) Balance, at the end of period $ 59,880 $ 60,406 $ 59,880 $ 60,406 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation for such difference follows: Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 U.S. Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % Goodwill impairment 105.8 % — % 4.4 % — % Valuation allowance against state net operating losses 142.1 % — % 5.9 % — % Gain on insurance proceeds ( 134.7 )% — % ( 5.6 )% — % State income taxes ( 101.2 )% 0.4 % ( 3.9 )% 0.5 % Difference in statutory rate 22.1 % 0.8 % 1.8 % 0.9 % Withholding taxes on foreign earnings 11.2 % 0.4 % 0.9 % 0.5 % Unrecognized tax benefits 9.5 % 0.2 % 0.9 % 0.2 % Nondeductible executive compensation 5.6 % 0.3 % 0.5 % 0.3 % Other permanent items 3.6 % 0.4 % ( 0.3 )% — % Effective tax rate 85.0 % 23.5 % 25.6 % 23.4 % |
Segment and Geographical Info_3
Segment and Geographical Information - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) Segment | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Segment | 3 | |
Gain on insurance proceeds received from acquisition representation and warranty policy | $ 50,000 | $ 50,000 |
Impairment charges, carrying value net | 253,607 | 253,607 |
Senior Health Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring charges | 800 | 800 |
Net assets | $ 103,100 | $ 103,100 |
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 | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Segment Reporting Information [Line Items] | ||||||
Revenues | $ 803,375 | $ 688,385 | $ 1,546,204 | $ 1,378,422 | ||
Net investment income | 38,452 | 32,398 | 76,258 | 63,462 | ||
Amortization of deferred policy acquisition costs | 73,643 | 68,110 | 145,692 | 136,033 | ||
Non-cash share-based compensation expense | 3,053 | 2,458 | 15,668 | 14,531 | ||
Income (loss) before income taxes | 7,797 | 188,896 | 187,032 | 355,838 | ||
Assets | 14,565,704 | 14,565,704 | $ 15,027,732 | |||
Term Life Insurance Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 426,944 | 411,873 | 867,357 | 832,943 | ||
Amortization of deferred policy acquisition costs | 71,916 | 66,004 | 142,407 | 132,072 | ||
Non-cash share-based compensation expense | 954 | 726 | 3,096 | 2,576 | ||
Income (loss) before income taxes | 147,779 | 140,113 | 286,148 | 270,654 | ||
Assets | 6,486,934 | 6,486,934 | 6,543,923 | |||
Investment and Savings Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 260,906 | 214,509 | 504,622 | 424,711 | ||
Amortization of deferred policy acquisition costs | 1,478 | 1,409 | 2,679 | 2,901 | ||
Non-cash share-based compensation expense | 715 | 666 | 1,754 | 1,658 | ||
Income (loss) before income taxes | 74,782 | 59,583 | 140,345 | 115,691 | ||
Assets | [1] | 2,410,463 | 2,410,463 | 2,537,079 | ||
Senior Health Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 12,420 | 14,890 | 19,300 | 33,599 | ||
Non-cash share-based compensation expense | 195 | 171 | 295 | 330 | ||
Income (loss) before income taxes | (264,972) | (6,032) | (279,125) | (9,795) | ||
Assets | 144,227 | 144,227 | 419,110 | |||
Corporate and Other Distributed Products Segment [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues | 103,105 | 47,113 | 154,925 | 87,169 | ||
Net investment income | 38,452 | 32,398 | 76,258 | 63,462 | ||
Amortization of deferred policy acquisition costs | 249 | 697 | 606 | 1,060 | ||
Non-cash share-based compensation expense | 1,189 | 895 | 10,523 | 9,967 | ||
Income (loss) before income taxes | 50,208 | $ (4,768) | 39,664 | $ (20,712) | ||
Assets | $ 5,524,080 | $ 5,524,080 | $ 5,527,620 | |||
[1] The Investment and Savings Products segment includes assets held in separate accounts. Excluding separate accounts, the Investment and Savings Products segment assets were $ 156.5 million and $ 141.3 million as of June 30, 2024 and December 31, 2023 , respectively. |
Segment and Geographical Info_5
Segment and Geographical Information - Summary of Assets and Profit or Loss by Segment (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Investment and Savings Products Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Assets, excluding separate account assets | $ 156.5 | $ 141.3 |
Segment and Geographical Info_6
Segment and Geographical Information - Long Lived Assets and Continuing Operations by Country (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | $ 803,375 | $ 688,385 | $ 1,546,204 | $ 1,378,422 | |
Long-lived assets | 40,318 | 40,318 | $ 38,267 | ||
United States [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 707,697 | 602,132 | 1,355,039 | 1,205,982 | |
Long-lived assets | 37,724 | 37,724 | 35,434 | ||
Canada [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Revenues | 95,678 | $ 86,253 | 191,165 | $ 172,440 | |
Long-lived assets | 2,409 | 2,409 | 2,636 | ||
Other [Member] | |||||
Revenues From External Customers And Long Lived Assets [Line Items] | |||||
Long-lived assets | $ 185 | $ 185 | $ 197 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, at fair value | $ 2,796,030 | $ 2,719,467 |
U.S. Government and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 10,368 | 9,974 |
Available-for-sale debt securities gross unrealized gain | 9 | 18 |
Available-for-sale debt securities, gross unrealized loss | (480) | (476) |
Available-for-sale debt securities, at fair value | 9,897 | 9,516 |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 168,743 | 170,354 |
Available-for-sale debt securities gross unrealized gain | 638 | 1,616 |
Available-for-sale debt securities, gross unrealized loss | (10,050) | (8,588) |
Available-for-sale debt securities, at fair value | 159,331 | 163,382 |
States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 136,350 | 145,779 |
Available-for-sale debt securities gross unrealized gain | 101 | 891 |
Available-for-sale debt securities, gross unrealized loss | (14,983) | (14,681) |
Available-for-sale debt securities, at fair value | 121,468 | 131,989 |
Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 1,845,728 | 1,723,023 |
Available-for-sale debt securities gross unrealized gain | 8,267 | 14,787 |
Available-for-sale debt securities, gross unrealized loss | (130,992) | (120,286) |
Available-for-sale debt securities, at fair value | 1,723,003 | 1,617,524 |
Residential Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 504,580 | 499,771 |
Available-for-sale debt securities gross unrealized gain | 546 | 1,688 |
Available-for-sale debt securities, gross unrealized loss | (69,523) | (63,928) |
Available-for-sale debt securities, at fair value | 435,603 | 437,531 |
Commercial Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 118,240 | 127,454 |
Available-for-sale debt securities gross unrealized gain | 93 | 156 |
Available-for-sale debt securities, gross unrealized loss | (12,637) | (15,443) |
Available-for-sale debt securities, at fair value | 105,696 | 112,167 |
Other Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 249,905 | 258,857 |
Available-for-sale debt securities gross unrealized gain | 1,111 | 763 |
Available-for-sale debt securities, gross unrealized loss | (9,984) | (12,262) |
Available-for-sale debt securities, at fair value | 241,032 | 247,358 |
Fixed-Maturity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 3,033,914 | 2,935,212 |
Available-for-sale debt securities gross unrealized gain | 10,765 | 19,919 |
Available-for-sale debt securities, gross unrealized loss | (248,649) | (235,664) |
Available-for-sale debt securities, at fair value | $ 2,796,030 | 2,719,467 |
Short-Term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 276 | |
Available-for-sale debt securities, at fair value | 276 | |
Fixed-Maturity Securities and Short-term Investments [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, amortized cost basis | 2,935,488 | |
Available-for-sale debt securities gross unrealized gain | 19,919 | |
Available-for-sale debt securities, gross unrealized loss | (235,664) | |
Available-for-sale debt securities, at fair value | $ 2,719,743 |
Investments - Fixed-maturity Se
Investments - Fixed-maturity Securities Classified by Contractual Maturity Securities (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Total available-for-sale fixed-maturity securities | $ 2,796,030 | $ 2,719,467 |
Fixed Maturities | ||
Available-for-sale Securities, Debt Maturities [Abstract] | ||
Due in one year or less, amortized cost | 183,824 | |
Due after one year through five years, amortized cost | 745,364 | |
Due after five years through 10 years, amortized cost | 819,934 | |
Due after 10 years, amortized cost | 412,067 | |
Total fixed-maturity securities with single maturity dates, amortized cost | 2,161,189 | |
Mortgage and asset-backed securities, amortized cost | 872,725 | |
Available-for-sale debt securities, amortized cost basis | 3,033,914 | $ 2,935,212 |
Due in one year or less, fair value | 182,161 | |
Due after one year through five years, fair value | 716,707 | |
Due after five years through 10 years, fair value | 741,336 | |
Due after 10 years, fair value | 373,495 | |
Total fixed-maturity securities with single maturity dates, fair value | 2,013,699 | |
Mortgage and asset-backed securities, fair value | 782,331 | |
Total available-for-sale fixed-maturity securities | $ 2,796,030 |
Investments - Costs and Fair Va
Investments - Costs and Fair Values of Fixed-Maturity Securities Classified as Trading Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Total trading securities, cost | $ 3,719 | $ 18,761 |
Fixed Maturities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Total trading securities, cost | 3,719 | 18,761 |
Total trading securities, Fair value | $ 3,158 | $ 18,383 |
Investments - Held-to-maturity
Investments - Held-to-maturity Security - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Schedule Of Held To Maturity Securities [Line Items] | |||
Investment, Type [Extensible Enumeration] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] |
Held-to-maturity debt security estimated unrealized holding loss | $ (85,200,000) | ||
Held-to-maturity debt security Credit losses | $ 0 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Fair values of investments on deposit | $ 7.7 | $ 7.3 |
Investments - Securities Lendin
Investments - Securities Lending Collateral - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
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 | $ 91 | $ 99.8 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | $ 56,183 | $ 51,173 | $ 111,910 | $ 100,899 | |
Investment expenses | (2,072) | (2,167) | (4,208) | (4,395) | |
Investment income net of investment expenses | 54,111 | 49,006 | 107,702 | 96,504 | |
Interest expense on surplus note | (15,659) | (16,608) | (31,444) | (33,042) | |
Net investment income | 38,452 | 32,398 | 76,258 | 63,462 | |
Equity Securities [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | 323 | 380 | 712 | 760 | |
Policy Loans and Other Invested Assets [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | 543 | 352 | 1,005 | 281 | |
Cash, Cash Equivalents and Short-Term Investments [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | 6,640 | 5,840 | 13,621 | 10,968 | |
Total return on deposit asset underlying 10% insurance agreement [Member] | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | [1] | 2,400 | 1,636 | 4,574 | 3,685 |
Available-for-Sale [Member] | Fixed Maturities | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | 30,618 | 26,357 | 60,554 | 52,163 | |
Held-to-Maturity [Member] | Fixed Maturities | |||||
Net Investment Income [Line Items] | |||||
Gross investment income, operating | $ 15,659 | $ 16,608 | $ 31,444 | $ 33,042 | |
[1] I ncludes $ 0.2 million and $ 0.1 m illion of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2024, respectively. Includes $( 0.9 ) million and $( 1.2 ) million of net gains (losses) recognized for the change in fair value of the deposit asset underlying the 10 % coinsurance agreement for the three and six months ended June 30, 2023 , respectively. |
Investments - Net Investment _2
Investments - Net Investment Income (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
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 | $ 0.2 | $ (0.9) | $ 0.1 | $ (1.2) | |
Investment, Type [Extensible Enumeration] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] | Deposit Asset Underlying10 Insurance Agreement [Member] |
Percentage of coinsurance costs | 10% | 10% | 10% | 10% |
Investments - Schedule of Compo
Investments - Schedule of Components of Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Realized investment gains (losses): | ||||
Gross gains from sales of available-for-sale fixed maturity securities | $ 673 | $ 442 | $ 680 | $ 492 |
Gross losses from sales of available-for-sale fixed maturity securities | (108) | (105) | (108) | (1,140) |
Realized investment gains (losses) | 565 | 337 | 572 | (648) |
Other investment gains (losses): | ||||
Credit losses impairment of available-for-sale securities | (6) | (2,167) | ||
Market gains (losses) recognized in net income during the period on equity securities | (675) | (656) | 620 | (2,130) |
Gains (losses) from bifurcated options | 3 | (8) | (1) | |
Gains (losses) on trading securities | 8 | 5 | 15 | 9 |
Other investment gains (losses) | (664) | (665) | 634 | (4,288) |
Investment gains (losses) | $ (99) | $ (328) | $ 1,206 | $ (4,936) |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Proceeds from Sale and Maturity of Debt Securities, Available-for-Sale [Abstract] | ||||
Proceeds from sales or other redemptions | $ 130,676 | $ 151,962 | $ 217,094 | $ 237,392 |
Investments - Accrued Interest
Investments - Accrued Interest - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities, description on accrued interest | Accrued interest is recorded in accordance with the contractual 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 to write off any remaining accrued interest. 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 | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | $ 411,855 | $ 122,885 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (5,752) | (1,423) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 1,953,457 | 2,047,975 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (242,897) | (234,241) |
U.S. Government and Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 1,870 | |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (25) | |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 7,710 | 9,188 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (455) | (476) |
Foreign Government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 25,329 | 17,209 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (394) | (62) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 111,584 | 104,827 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (9,656) | (8,526) |
States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 9,142 | 4,883 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (220) | (46) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 107,243 | 107,021 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (14,763) | (14,635) |
Corporates [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 307,078 | 39,783 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (4,606) | (907) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 1,149,479 | 1,231,694 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (126,386) | (119,379) |
Residential Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 35,393 | 14,872 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (388) | (142) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 352,139 | 360,987 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (69,135) | (63,786) |
Commercial Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 7,997 | 4,721 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (64) | (107) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 92,915 | 97,417 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | (12,573) | (15,336) |
Other Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities, continuous unrealized loss position, less than 12 months, fair value | 25,046 | 41,417 |
Available-for-sale securities, continuous unrealized loss position, less than 12 months, aggregate losses | (55) | (159) |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, fair value | 132,387 | 136,841 |
Available-for-sale securities, continuous unrealized loss position, 12 months or longer, aggregate losses | $ (9,929) | $ (12,103) |
Investments - AFS Securities wi
Investments - AFS Securities with Cost Basis in Excess of Fair Value - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | |||||
Available-for-sale fixed-maturities with cost basis in excess of fair values, cost basis | $ 2,614,000,000 | $ 2,614,000,000 | $ 2,406,500,000 | ||
Allowance for credit losses | 0 | 0 | |||
Available-for-sale credit (gains) losses | $ 0 | $ 100,000 | $ 0 | $ 2,200,000 |
Investments - Loss from Closed
Investments - Loss from Closed Currency Forward Contracts Recorded in Accumulated Other Comprehensive Income (Loss) - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
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 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | $ 2,796,030 | $ 2,719,467 | |
Equity securities | 26,026 | 29,680 | |
Cash and cash equivalents | 627,292 | 613,148 | |
Separate account assets | 2,253,966 | 2,395,842 | |
Separate account liabilities | 2,253,966 | 2,395,842 | $ 2,305,717 |
Fair Value, Recurring Measurements [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 2,796,030 | 2,719,467 | |
Equity securities | 26,026 | 29,680 | |
Trading securities | 3,158 | 18,383 | |
Cash and cash equivalents | 627,292 | 613,148 | |
Separate account assets | 2,253,966 | 2,395,842 | |
Assets, fair value disclosure | 5,706,472 | 5,776,796 | |
Separate account liabilities | 2,253,966 | 2,395,842 | |
Liabilities, fair value disclosure | 2,253,966 | 2,395,842 | |
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 | 3,870 | 3,951 | |
Equity securities | 23,441 | 27,062 | |
Cash and cash equivalents | 441,563 | 613,148 | |
Assets, fair value disclosure | 468,874 | 644,161 | |
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 | 2,783,310 | 2,715,016 | |
Equity securities | 982 | 974 | |
Trading securities | 3,158 | 18,383 | |
Cash and cash equivalents | 185,729 | ||
Separate account assets | 2,253,966 | 2,395,842 | |
Assets, fair value disclosure | 5,227,145 | 5,130,491 | |
Separate account liabilities | 2,253,966 | 2,395,842 | |
Liabilities, fair value disclosure | 2,253,966 | 2,395,842 | |
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 | 8,850 | 500 | |
Equity securities | 1,603 | 1,644 | |
Assets, fair value disclosure | 10,453 | 2,144 | |
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 | 9,897 | 9,516 | |
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 | 9,897 | 9,516 | |
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 | 159,331 | 163,382 | |
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 | 159,331 | 163,382 | |
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 | 121,468 | 131,989 | |
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 | 121,468 | 131,989 | |
Fair Value, Recurring Measurements [Member] | Corporates [Member] | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Total available-for-sale fixed-maturity securities | 1,723,003 | 1,617,524 | |
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 | 3,870 | 3,951 | |
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 | 1,719,133 | 1,613,573 | |
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 | 435,603 | 437,531 | |
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 | 435,603 | 437,531 | |
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 | 105,696 | 112,167 | |
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 | 105,696 | 112,167 | |
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 | 241,032 | 247,358 | |
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 | 232,182 | 246,858 | |
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 | $ 8,850 | 500 | |
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 | 276 | ||
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 | 276 | ||
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 | 2,719,743 | ||
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 | 3,951 | ||
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 | 2,715,292 | ||
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 | $ 500 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Rollforward of Level 3 Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Realized gains (losses) and accretion (amortization) recognized in earnings | $ 200 | $ (900) | $ 100 | $ (1,200) | |||
Fair Value, Recurring Measurements [Member] | |||||||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |||||||
Level 3 assets, beginning of period | 1,631 | 4,008 | 2,144 | [1] | 1,710 | [1] | |
Net unrealized gains (losses) included in other comprehensive income (loss) | $ 35 | $ (60) | $ 39 | [1] | $ (61) | [1] | |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment and Tax | |||
Realized gains (losses) and accretion (amortization) recognized in earnings | $ (28) | $ (64) | $ (41) | [1] | $ (81) | [1] | |
Purchases | 8,815 | 8,815 | [1] | 2,316 | [1] | ||
Settlements | (8) | (8) | [1] | ||||
Transfers out of Level 3 | (2,248) | (504) | [1] | (2,248) | [1] | ||
Level 3 assets, end of period | [1] | $ 10,453 | $ 1,628 | $ 10,453 | $ 1,628 | ||
[1] Transfers of investments that enter and exit Level 3 in different quarters within the same fiscal year are not eliminated until the full year amounts are presented. |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | ||||
Fair value security, level 1 to level 2 transfers, amount | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value security, level 1 to level 3 transfers, amount | $ 0 | $ 0 | $ 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 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Available-for-sale debt securities, at fair value | $ 2,796,030 | $ 2,719,467 | ||
Fixed-maturity security held to maturity, fair value | 1,268,174 | 1,334,892 | ||
Equity securities | 26,026 | 29,680 | ||
Separate account assets | 2,253,966 | 2,395,842 | ||
Surplus note | 1,353,014 | 1,386,592 | ||
Separate account liabilities | 2,253,966 | 2,395,842 | $ 2,305,717 | |
Fixed-maturity security (held-to-maturity) | 1,353,370 | 1,386,980 | ||
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 | 2,796,030 | 2,719,467 | ||
Short-term investments (available-for-sale) | 276 | |||
Equity securities | 26,026 | 29,680 | ||
Trading securities | 3,158 | 18,383 | ||
Separate account assets | 2,253,966 | 2,395,842 | ||
Separate account liabilities | 2,253,966 | 2,395,842 | ||
Reported Value Measurement [Member] | Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Policy loans | [1] | 38,426 | 38,975 | |
Surplus note | [1],[2] | 1,353,014 | 1,386,592 | |
Fixed-maturity security (held-to-maturity) | [1] | 1,353,370 | 1,386,980 | |
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] | 171,848 | 187,377 | |
Reported Value Measurement [Member] | Level 2 [Member] | Senior Notes [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Note payable - Long term | [2],[3] | 594,110 | 593,709 | |
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 | 2,796,030 | 2,719,467 | ||
Short-term investments (available-for-sale) | 276 | |||
Equity securities | 26,026 | 29,680 | ||
Trading securities | 3,158 | 18,383 | ||
Separate account assets | 2,253,966 | 2,395,842 | ||
Separate account liabilities | 2,253,966 | 2,395,842 | ||
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] | 1,268,174 | 1,334,892 | |
Policy loans | [1] | 38,426 | 38,975 | |
Surplus note | [1],[2] | 1,265,532 | 1,329,159 | |
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] | 171,848 | 187,377 | |
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] | ||||
Note payable - Long term | [2],[3] | $ 499,658 | $ 508,832 | |
[1] Classified as a Level 3 fair value measurement. Carrying value amounts shown are net of unamortized 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) | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Percentage of coinsurance costs | 10% | 10% | |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Reinsurance Disclosures [Abstract] | ||
Direct life insurance in-force | $ 952,962,977 | $ 946,756,416 |
Amounts ceded to other companies | (814,622,587) | (810,145,801) |
Net life insurance in-force | $ 138,340,390 | $ 136,610,615 |
Percentage of reinsured life insurance in-force | 85% | 86% |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reinsurance Disclosures [Abstract] | ||||
Benefits and claims ceded to reinsurers | $ 357.8 | $ 349.7 | $ 714.8 | $ 693 |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables Estimated by Reinsurer and Financial Strength Ratings of Reinsurer (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 2,833,055 | $ 3,015,777 | |
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] | 2,131,772 | 2,271,223 |
Munich Re of Malta [Member] | External credit rating, not rated [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1],[2] | 222,398 | 243,890 |
American Health and Life Insurance Company [Member] | AM Best, B++ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [1] | 131,775 | 141,771 |
SCOR Global Life Reinsurance Companies [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [3] | 157,512 | 160,381 |
Swiss Re Life & Health America Inc. [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | [4] | 45,609 | 43,873 |
RGA Reinsurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 42,332 | 43,188 | |
Korean Reinsurance Company [Member] | AM Best, A Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 42,152 | 41,373 | |
Munich American Reassurance Company [Member] | AM Best, A+ Rating [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 40,819 | 50,273 | |
All Other Reinsurers [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 19,808 | 20,925 | |
Allowance for Credit Losses [Member] | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ (1,122) | $ (1,120) | |
[1] Reinsurance recoverables include 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 recoverable 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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Reinsurance Disclosures [Abstract] | ||||
Balance, beginning of period | $ 1,048 | $ 3,563 | $ 1,120 | $ 2,936 |
Current period provision for expected credit losses | 74 | 2,036 | 2 | 2,663 |
Balance, at the end of period | $ 1,122 | $ 5,599 | $ 1,122 | $ 5,599 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Balances and Activity in DAC Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Deferred Policy Acquisition Cost [Line Items] | |||||
DAC balance, beginning of period | $ 3,447,234 | ||||
Amortization | $ (73,643) | $ (68,110) | (145,692) | $ (136,033) | |
DAC balance, end of period | 3,566,126 | 3,566,126 | $ 3,447,234 | ||
Term Life [Member] | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
DAC balance, beginning of period | 3,366,281 | 3,106,148 | 3,106,148 | ||
Capitalization | 274,632 | 521,718 | |||
Amortization | (142,407) | (268,803) | |||
Foreign exchange translation and other | (9,130) | 7,218 | |||
DAC balance, end of period | 3,489,376 | 3,489,376 | 3,366,281 | ||
Segregated Funds (Canada) [Member] | |||||
Deferred Policy Acquisition Cost [Line Items] | |||||
DAC balance, beginning of period | 63,029 | $ 62,341 | 62,341 | ||
Capitalization | 1,562 | 4,353 | |||
Amortization | (2,679) | (5,479) | |||
Foreign exchange translation and other | (2,288) | 1,814 | |||
DAC balance, end of period | $ 59,624 | $ 59,624 | $ 63,029 |
Deferred Policy Acquisition C_4
Deferred Policy Acquisition Costs - Reconciliation of DAC (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | $ 3,566,126 | $ 3,447,234 | |
Term Life Insurance [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | 3,489,376 | 3,366,281 | $ 3,106,148 |
Segregated Funds (Canada) [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | 59,624 | 63,029 | $ 62,341 |
Other [Member] | |||
Deferred Policy Acquisition Cost [Line Items] | |||
Total DAC, net | $ 17,126 | $ 17,924 |
Separate Accounts - Schedule of
Separate Accounts - Schedule of Fair Value of Separate Accounts by Major Category of Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | $ 2,253,966 | $ 2,395,842 |
Fixed Income Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 765,636 | 876,524 |
Equity Securities [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 1,430,461 | 1,436,122 |
Cash and Cash Equivalents [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | 67,359 | 87,530 |
Due To/From Funds [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | (9,510) | (4,357) |
Other [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Separate account assets | $ 20 | $ 23 |
Separate Accounts - Schedule _2
Separate Accounts - Schedule of Balances of and Changes in Separate Account Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Separate Accounts Disclosure [Abstract] | ||
Separate Account, Liability, Beginning Balance | $ 2,395,842 | $ 2,305,717 |
Premiums and deposits | 88,494 | 186,631 |
Surrenders and withdrawals | (223,559) | (343,473) |
Investment performance | 105,546 | 245,565 |
Management fees and other charges | (25,251) | (62,159) |
Foreign exchange translation | (87,106) | 63,561 |
Separate Account, Liability, Ending Balance | 2,253,966 | 2,395,842 |
Cash surrender value | $ 2,221,443 | $ 2,354,813 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract] | |||
Policy claims and other benefits payable, beginning of period | $ 513,803 | $ 538,250 | |
Reinsured policy claims and other benefits payable, beginning of period | 534,674 | 542,606 | |
Net balance, beginning of period | (20,871) | (4,356) | |
Incurred related to current year | 129,041 | 121,251 | |
Incurred related to prior years | [1] | (3,565) | (1,723) |
Total incurred | 125,476 | 119,528 | |
Claims paid related to current year, net of reinsured policy claims received | (194,113) | (162,580) | |
Reinsured policy claims received related to prior years, net of claims paid | 40,413 | 17,519 | |
Total paid | (153,700) | (145,061) | |
Foreign currency translation | (334) | 182 | |
Net balance, end of period | (49,429) | (29,707) | |
Reinsured policy claims and other benefits payable, end of period | 528,202 | 524,848 | |
Policy claims and other benefits payable, end of period | $ 478,773 | $ 495,141 | |
[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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Present Value of Expected Net Premiums | ||
Balance at then current discount rate, beginning of period, Present value of expected net premiums | $ 13,977,353 | $ 13,053,386 |
Balance at original discount rate, beginning of period, Present value of expected net premium | 14,012,553 | 13,521,221 |
Effect of changes in cash flow assumptions, Present value of expected net premiums | (5,364) | |
Effect of actual variances from expected experience, Present value of expected net premiums | (234,156) | (229,884) |
Adjusted balance, beginning of period | 13,778,397 | 13,285,973 |
Issuances, Present value of expected net premiums | 1,003,321 | 1,836,290 |
Interest accrual at Original discount rate, Present value of expected net premiums | 299,575 | 544,806 |
Net premiums collected, Present value of expected net premiums | (858,255) | (1,682,924) |
Foreign currency translation, Present value of expected net premiums | (38,685) | 28,408 |
Expected net premiums at original discount rate, end of period | 14,184,353 | 14,012,553 |
Effect of changes in discount rate assumptions, Present value of expected net premiums | (444,845) | (35,200) |
Balance at then current discount rate, end of period, Present value of expected net premiums | 13,739,508 | 13,977,353 |
Present Value of Expected Future Policy Benefits | ||
Balance at then current discount rate, beginning of period, Present value of expected future policy benefits | 20,508,435 | 19,143,253 |
Balance at original discount rate, beginning of period, Present value of expected future policy benefits | 20,391,694 | 19,706,818 |
Effect of changes in cash flow assumptions, Present value of expected future policy benefits | (7,254) | |
Effect of actual variances from expected experience, Present value of expected future policy benefits | (238,305) | (225,539) |
Adjusted balance, beginning of period, Present value of expected future policy benefits | 20,153,389 | 19,474,025 |
Issuances, Present value of expected future policy benefits | 1,008,739 | 1,840,996 |
Interest accrual at Original discount rate, Present value of expected future policy benefits | 458,419 | 856,727 |
Benefit payments, Present value of expected future policy benefits | (932,348) | (1,823,542) |
Foreign currency translation, Present value of expected future policy benefits | (59,142) | 43,488 |
Expected future policy benefits at original discount rate, end of period, Present value of expected future policy benefits | 20,629,057 | 20,391,694 |
Effect of changes in discount rate assumptions, Present value of expected future policy benefits | (651,747) | 116,741 |
Expected future policy benefits at then current discount rate, end of period, Present value of expected future policy benefits | 19,977,310 | 20,508,435 |
LFPB | 6,436,332 | 6,742,025 |
Less: reinsurance recoverables | 2,819,445 | 3,001,074 |
Net LFPB, after reinsurance recoverables | $ 3,418,357 | $ 3,530,008 |
Weighted-average duration of net LFPB | 7 years 10 months 24 days | 7 years 10 months 24 days |
Term Life | ||
Present Value of Expected Future Policy Benefits | ||
LFPB | $ 6,237,802 | $ 6,531,082 |
Future Policy Benefits - Narrat
Future Policy Benefits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits as level percentage | 100% | 100% | 100% | 100% |
Future policy benefits remeasurement gain | $ 4,329 | $ 1,867 | $ 4,275 | $ 1,308 |
Term Life Insurance Segment [Member] | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Future policy benefits remeasurement gain | $ 4,300 | $ 1,300 | $ 4,600 | $ 300 |
Future Policy Benefits - Sche_2
Future Policy Benefits - Schedule of Reconcile LFPB (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | $ 6,436,332 | $ 6,742,025 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | 6,237,802 | 6,531,082 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | 198,530 | 210,943 |
Term Life and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Future policy benefits | $ 6,436,332 | $ 6,742,025 |
Future Policy Benefits - Sche_3
Future Policy Benefits - Schedule of Reconcile Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | $ 2,833,055 | $ 3,015,777 |
Term Life Insurance | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | 2,819,445 | 3,001,074 |
Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | 13,610 | 14,703 |
Term Life and Other | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Reinsurance recoverables | $ 2,833,055 | $ 3,015,777 |
Future Policy Benefits - Sche_4
Future Policy Benefits - Schedule of Amount of Discounted (using the then current discount rate) and Undiscounted Expected Gross Premiums and Expected Future Benefit Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Expected future benefit payments, Undiscounted | $ 33,839,938 | $ 33,342,272 |
Expected future benefit payments, Discounted | 19,977,311 | 20,508,435 |
Expected future gross premiums, Undiscounted | 39,155,381 | 38,701,869 |
Expected future gross premiums, Discounted | $ 26,164,310 | $ 26,687,880 |
Future Policy Benefits - Sche_5
Future Policy Benefits - Schedule of Amount of Revenue and Interest Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||||
Gross premiums | $ 840,668 | $ 823,297 | $ 1,676,989 | $ 1,636,177 |
Interest accretion (expense) | $ (81,252) | $ (77,101) | $ (158,845) | $ (153,785) |
Future Policy Benefits - Sche_6
Future Policy Benefits - Schedule of Weighted Average Discount Rates (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | ||
Original discount rate | 4.99% | 4.93% |
Current discount rate | 5.47% | 4.91% |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Outstanding Common Stock (Details) - shares | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |||
Common stock, beginning of period | 34,996,000 | 36,824,000 | |
Shares of common stock issued upon exercise of stock options | 60,000 | ||
Shares of common stock issued when sales restrictions on restricted stock units ("RSUs") lapsed and performance-based stock units ("PSUs") were earned | 124,000 | 168,000 | |
Common stock retired | (1,095,316) | (1,126,000) | (1,206,000) |
Common stock, end of period | 33,994,000 | 33,994,000 | 35,846,000 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Nov. 16, 2023 | |
Class Of Stock [Line Items] | ||||
Stock repurchased program, authorized amount | $ 425,000,000 | |||
Stock repurchased and retired during period, shares | 1,095,316 | 1,126,000 | 1,206,000 | |
Stock repurchased and retired during period, value | $ 251,800,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 173,200,000 | $ 173,200,000 | ||
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 | 232,003 | 232,003 | ||
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 | 58,619 | 58,619 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,171 | $ 144,504 | $ 139,074 | $ 272,603 |
Income attributable to unvested participating securities, basic EPS | (96) | (609) | (546) | (1,190) |
Net income used in calculating basic EPS | $ 1,075 | $ 143,895 | $ 138,528 | $ 271,413 |
Weighted-average vested shares | 34,383 | 36,215 | 34,633 | 36,461 |
Basic EPS | $ 0.03 | $ 3.97 | $ 4 | $ 7.44 |
Income attributable to unvested participating securities, diluted EPS | $ (96) | $ (608) | $ (546) | $ (1,187) |
Net income used in calculating diluted EPS | $ 1,075 | $ 143,896 | $ 138,528 | $ 271,416 |
Dilutive effect of incremental shares to be issued for contingently-issuable shares | 75 | 55 | 84 | |
Weighted-average shares used in calculating diluted EPS | 34,383 | 36,290 | 34,688 | 36,545 |
Diluted EPS | $ 0.03 | $ 3.97 | $ 3.99 | $ 7.43 |
Share-Based Transactions - Impa
Share-Based Transactions - Impact of Equity Awards Granted (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity awards expense recognized | $ 3,053 | $ 2,463 | $ 15,668 | $ 14,588 |
Expense Deferred [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity awards expense deferred | $ 2,633 | $ 2,340 | $ 4,832 | $ 4,863 |
Share-Based Transactions - Narr
Share-Based Transactions - Narrative (Details) | Feb. 16, 2024 $ / shares shares |
Restricted stock units (RSUs) [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of shares awarded | 48,998 |
Measurement date fair value | $ / shares | $ 244.89 |
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 | 15,005 |
Measurement date fair value | $ / shares | $ 244.89 |
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 | 22,507 |
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 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Foreign currency translation adjustments: | ||||
Change in unrealized foreign currency translation gains (losses) before income taxes | $ (3,817) | $ 7,005 | $ (13,272) | $ 8,026 |
Change in unrealized foreign currency translation gains (losses), net of income taxes | (3,817) | 7,005 | (13,272) | 8,026 |
Unrealized gain (losses) on available-for-sale securities: | ||||
Change in unrealized holding gains (losses) arising during period before income taxes | (6,756) | (23,068) | (21,602) | 15,364 |
Income tax expense (benefit) on unrealized holding gains (losses) arising during period | (1,395) | (5,237) | (4,716) | 2,970 |
Change in unrealized holding gains (losses) on available-for-sale securities arising during period, net of income taxes | (5,361) | (17,831) | (16,886) | 12,394 |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities | (565) | (331) | (572) | 2,815 |
Income tax (expense) benefit on (gains) losses reclassified from accumulated OCI to net income | (119) | (70) | (120) | 591 |
Reclassification from accumulated OCI to net income for (gains) losses realized on available-for-sale securities, net of income taxes | (446) | (261) | (452) | 2,224 |
Change in unrealized gains (losses) on available-for-sale securities, net of income taxes and reclassification adjustment | (5,807) | (18,092) | (17,338) | 14,618 |
Effect of change in discount rate assumptions on the LFPB: | ||||
Change in effect in discount rate assumptions on the LFPB before income taxes | 137,798 | 85,310 | 305,884 | (95,971) |
Income tax (expense) benefit on the effect of change in discount rate assumptions on the LFPB from accumulated OCI to net income | 29,211 | 17,958 | 65,357 | (20,941) |
Change in effect in discount rate assumptions on the LFPB, net of income taxes | $ 108,587 | $ 67,352 | $ 240,527 | $ (75,030) |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended |
Jun. 30, 2024 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] | 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 | $ 1,400,000,000 |
Debt instrument, interest rate, stated percentage | 4.50% |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | $ 803,375 | $ 688,385 | $ 1,546,204 | $ 1,378,422 |
Term Life Insurance Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 426,944 | 411,873 | 867,357 | 832,943 |
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 | 12,624 | 12,280 | 25,274 | 24,513 |
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 | 12,624 | 12,280 | 25,274 | 24,513 |
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 | 414,320 | 399,593 | 842,083 | 808,430 |
Investment and Savings Product Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 260,906 | 214,509 | 504,622 | 424,711 |
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 | 247,552 | 200,695 | 477,435 | 397,097 |
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 | 3,224 | 3,121 | 6,482 | 6,240 |
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 | 101,177 | 74,958 | 189,924 | 147,346 |
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 | 119,411 | 99,521 | 234,110 | 197,625 |
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 | 23,740 | 23,095 | 46,919 | 45,886 |
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 | 13,354 | 13,814 | 27,187 | 27,614 |
Senior Health Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 12,420 | 14,890 | 19,300 | 33,599 |
Senior Health Segment [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 12,420 | 14,890 | 19,300 | 33,599 |
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 | 844 | 3,519 | 1,648 | 6,474 |
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 | 11,576 | 11,371 | 17,652 | 27,125 |
Corporate and Other Distributed Products Segment Revenues [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 103,105 | 47,113 | 154,925 | 87,169 |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 11,275 | 11,606 | 20,465 | 21,517 |
Corporate and Other Distributed Products Segment Revenues [Member] | Total Segment Revenues from Contracts with Customers [Member] | Other, Net [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | 764 | 1,235 | 1,467 | 2,436 |
Corporate and Other Distributed Products Segment Revenues [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 | 10,511 | 10,371 | 18,998 | 19,081 |
Corporate and Other Distributed Products Segment Revenues [Member] | Revenues from Sources Other Than Contracts with Customers (Segregated Funds) [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Disaggregation of revenues from contracts with customers | $ 91,830 | $ 35,507 | $ 134,460 | $ 65,652 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Renewal Commissions Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Senior Health Segment [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Balance, beginning of period | $ 115,933 | $ 134,199 | $ 128,886 | $ 139,399 |
Commissions revenue | 6,989 | 6,923 | 13,313 | 15,985 |
Less: collections | (9,970) | (10,304) | (21,406) | (24,566) |
Tail revenue adjustment from change in estimate | (1,810) | (9,651) | ||
Balance, at the end of period | 111,142 | 130,818 | 111,142 | 130,818 |
Corporate and Other Distributed Products Segment Revenues [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Balance, beginning of period | 60,365 | 60,210 | 61,372 | 60,644 |
Commissions revenue | 5,864 | 6,405 | 10,903 | 11,775 |
Less: collections | (6,349) | (6,209) | (12,395) | (12,013) |
Balance, at the end of period | $ 59,880 | $ 60,406 | $ 59,880 | $ 60,406 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) | Jun. 30, 2024 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Assets recognized for incremental costs | $ 0 |
Impairment of Goodwill and Ot_2
Impairment of Goodwill and Other Long-lived Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of goodwill | $ 127.7 | |
Impairment of intangible assets | 124.5 | |
Impairment of other assets | 1.4 | |
Amortization of intangible assets and other assets | $ 2.8 | $ 5.6 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax [Line Items] | ||||
Federal Statutory Tax Rate | 21% | 21% | 21% | 21% |
Deferred tax liability reduction of intangible assets | $ 35.1 | |||
Valuation allowance | $ 11.1 | $ 11.1 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
U.S. Federal statutory rate | 21% | 21% | 21% | 21% |
Goodwill impairment | 105.80% | 4.40% | ||
Valuation allowance against state net operating losses | 142.10% | 5.90% | ||
Gain on insurance proceeds | (134.70%) | (5.60%) | ||
State income taxes | (101.20%) | 0.40% | (3.90%) | 0.50% |
Difference in statutory rate | 22.10% | 0.80% | 1.80% | 0.90% |
Withholding taxes on foreign earnings | 11.20% | 0.40% | 0.90% | 0.50% |
Unrecognized tax benefits | 9.50% | 0.20% | 0.90% | 0.20% |
Nondeductible executive compensation | 5.60% | 0.30% | 0.50% | 0.30% |
Other permanent items | 3.60% | 0.40% | (0.30%) | |
Effective tax rate | 85% | 23.50% | 25.60% | 23.40% |