Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 30, 2022 | Aug. 07, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | VERICITY, INC. | ||
Trading Symbol | VERY | ||
Entity Central Index Key | 0001575434 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Common Stock, Shares Outstanding | 14,875,000 | ||
Entity Public Float | $ 18,411,600 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity File Number | 001-38945 | ||
Entity Tax Identification Number | 46-2348863 | ||
Entity Address, Address Line One | 8700 W Bryn Mawr Avenue | ||
Entity Address, Address Line Two | Suite 900 S | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60631 | ||
City Area Code | 312 | ||
Local Phone Number | 288-0073 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock, Par Value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE | ||
Auditor Name | DELOITTE & TOUCHE LLP | ||
Auditor Location | Chicago, Illinois | ||
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Fixed maturities - available-for-sale - at fair value | $ 352,383 | $ 363,851 |
Equity securities - at fair value (cost; $0 and $6,350) | 3,848 | |
Mortgage loans (net of valuation allowances of $69 and $141) | 47,487 | 50,427 |
Policyholder loans | 6,371 | 6,414 |
Other invested assets | 2,140 | 273 |
Total investments | 408,381 | 424,813 |
Cash, cash equivalents and restricted cash | 22,399 | 36,242 |
Accrued investment income | 2,590 | 2,633 |
Reinsurance recoverables (net of allowances of $149 and $131) | 184,131 | 158,015 |
Deferred policy acquisition costs | 95,715 | 87,212 |
Commissions and agent balances (net of allowances of $432 and $749) | 28,689 | 19,526 |
Intangible assets | 1,635 | 1,635 |
Deferred income tax assets, net | 12,700 | 10,926 |
Other assets | 31,767 | 27,762 |
Total assets | 788,007 | 768,764 |
Liabilities | ||
Future policy benefits and claims | 416,039 | 381,563 |
Policyholder account balances | 80,494 | 83,869 |
Other policyholder liabilities | 49,202 | 37,789 |
Policy dividend obligations | 12,669 | 13,282 |
Reinsurance liabilities and payables | 6,927 | 6,696 |
Long-term debt | 22,412 | 24,933 |
Short-term debt | 3,966 | 5,545 |
Other liabilities | 23,394 | 19,854 |
Total liabilities | 615,103 | 573,531 |
Commitments and Contingencies (Note 6) | ||
Shareholders' Equity | ||
Common stock, $.001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding | 15 | 15 |
Additional paid-in capital | 39,840 | 39,840 |
Retained earnings | 122,120 | 138,777 |
Accumulated other comprehensive income (loss) | 10,929 | 16,601 |
Total shareholders' equity | 172,904 | 195,233 |
Total liabilities and shareholders' equity | $ 788,007 | $ 768,764 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Fixed maturities - available-for-sale -amortized cost | $ 326,591 | $ 328,263 |
Equity securities - cost | 0 | 6,530 |
Mortgage loans, valuation allowances | 69 | 141 |
Reinsurance recoverable, allowances | 149 | 131 |
Commissions and agent balances, allowances | $ 432 | $ 749 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,875,000 | 14,875,000 |
Common stock, shares outstanding | 14,875,000 | 14,875,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | ||
Net insurance premiums | $ 107,958 | $ 108,042 |
Net investment income | 14,566 | 14,121 |
Net gains (losses) on investments | 3,106 | (1,242) |
Other-than-temporary-impairments (OTTI) | (4) | (68) |
Earned commissions | 44,393 | 21,811 |
Insurance lead sales | 6,313 | 4,958 |
Other income | 247 | 209 |
Total revenues | 176,579 | 147,831 |
Benefits and expenses | ||
Life, annuity, and health claim benefits | 77,693 | 77,692 |
Interest credited to policyholder account balances | 2,984 | 3,118 |
Operating costs and expenses | 94,712 | 80,363 |
Amortization of deferred policy acquisition costs | 18,225 | 13,961 |
Total benefits and expenses | 193,614 | 175,134 |
(Loss) income before income tax | (17,035) | (27,303) |
Income tax expense (benefit) | (378) | (2,275) |
Net (loss) income | $ (16,657) | $ (25,028) |
Weighted average shares outstanding, basic and diluted | 14,875,000 | 14,875,000 |
Basic earnings per share | $ (1.12) | $ (1.68) |
Diluted earnings per share | $ (1.12) | $ (1.68) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net (loss) income | $ (16,657) | $ (25,028) |
Other comprehensive income (loss), net of tax: | ||
Net unrealized (losses) gains | (5,672) | 7,844 |
Total other comprehensive (loss) income | (5,672) | 7,844 |
Total comprehensive (loss) income | $ (22,329) | $ (17,184) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance – beginning of period at Dec. 31, 2019 | $ 15 | $ 39,840 | $ 163,805 | $ 8,757 | |
Net (loss) income | $ (25,028) | (25,028) | |||
Other comprehensive (loss) income | 7,844 | ||||
Balance – end of period at Dec. 31, 2020 | 195,233 | 15 | 39,840 | 138,777 | 16,601 |
Net (loss) income | (16,657) | (16,657) | |||
Other comprehensive (loss) income | (5,672) | ||||
Balance – end of period at Dec. 31, 2021 | $ 172,904 | $ 15 | $ 39,840 | $ 122,120 | $ 10,929 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (16,657) | $ (25,028) |
Adjustments to reconcile net (loss) income to net cash (used) provided by operating activities: | ||
Depreciation and amortization and other non-cash items | 3,322 | 2,782 |
Interest credited to policyholder account balances | 2,984 | 3,118 |
Deferred income tax | (266) | (3,575) |
Net (losses) gains on investments | (3,106) | 1,242 |
Other-than-temporary-impairments | 4 | 68 |
Interest expense | 1,496 | 1,433 |
Change in: | ||
Equity securities | 4,887 | (494) |
Accrued investment income | 43 | 147 |
Reinsurance recoverables | (26,116) | (25,145) |
Deferred policy acquisition costs | (8,503) | (1,436) |
Commissions and agent balances | (9,163) | (8,284) |
Other assets | (1,349) | 7,621 |
Insurance liabilities | 47,911 | 55,268 |
Other liabilities | 3,719 | (2,414) |
Net cash (used) provided by operating activities | (794) | 5,303 |
Sales, maturities and repayments of: | ||
Fixed maturities | 68,115 | 58,333 |
Short-term investments | 30,050 | |
Mortgage loans | 6,513 | 3,273 |
Other invested assets | 428 | 600 |
Purchases of: | ||
Fixed maturities | (65,392) | (92,082) |
Short-term investments | (250) | |
Mortgage loans | (3,456) | (1,847) |
Other invested assets | (1,120) | (611) |
Change in policyholder loans, net | 42 | (374) |
Other, net | (6,405) | (5,846) |
Net cash (used) provided by investing activities | (1,275) | (8,754) |
Cash flows from financing activities | ||
Debt issued | 1,248 | 16,787 |
Debt repaid | (6,844) | (8,343) |
Deposits to policyholder account balances | 584 | 496 |
Withdrawals from policyholder account balances | (6,762) | (7,089) |
Net cash (used) provided by financing activities | (11,774) | 1,851 |
Net (decrease) in cash, cash equivalents and restricted cash | (13,843) | (1,600) |
Cash, cash equivalents and restricted cash – beginning of period | 36,242 | 37,842 |
Cash, cash equivalents and restricted cash – end of period | $ 22,399 | 36,242 |
Non-cash transactions: | ||
Non-cash investing activities related to mergers and exchanges completed with fixed maturities and equity securities | $ 7,036 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Description of Business Vericity, Inc. is a Delaware corporation organized to be the stock holding company for Members Mutual Holding Company (Members Mutual) and its subsidiaries. On August 7, 2019, Vericity, Inc. completed the initial public offering of 14,875,000 shares of its common stock at a price of $ 10.00 per share (the IPO). The IPO was conducted in connection with the conversion of Members Mutual from mutual to stock form and the acquisition by Vericity, Inc. of all of the capital stock of Members Mutual following its conversion to stock form after its plan of conversion and amended and restated articles of incorporation were approved at a special meeting of eligible members on August 6, 2019 (the Conversion). As a result of the Conversion, Vericity, Inc. became the holding company for converted Members Mutual and its indirect subsidiaries, including Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial). Vericity, Inc. operates as a holding company and currently has no other business operations. Fidelity Life is an Illinois domiciled life insurance company that was founded in 1896. Fidelity Life markets life insurance products through independent and affiliated distributors and is licensed in the District of Columbia and all states, except New York and Wyoming. Efinancial markets life and other products for non-affiliated insurance companies and sells life products for Fidelity Life. The accompanying consolidated financial statements present the accounts of Vericity, Inc. and subsidiaries at December 31, 2021 and December 31, 2020, and for the years ended December 31, 2021 and 2020 . Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Unconsolidated Variable Interest Entities In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as an investor in limited partnership interests and asset-backed securities. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. Fixed Maturities and Equity Securities Fixed maturities classified as available-for-sale are reported at fair value. Changes in fair value are reported as unrealized gains or losses as discussed below. Fixed maturities include bonds, residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities. Unrealized gains and losses on available-for-sale fixed maturity securities are reported as a component of accumulated other comprehensive income (AOCI), net of applicable deferred income taxes. Equity securities are reported at fair value with changes in fair value included in net investment gains (losses). Equity securities include common stock. Fair value is based on quoted market prices, when available. When quoted market prices are not available, fair value is estimated by discounting fixed maturity securities cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality, by quoted market prices of comparable instruments, and by independent pricing sources. See Note 11 for further discussion on inputs and assumptions used to estimate fair value. The amortized cost of fixed maturity securities is determined based on cost, adjustments for previously recorded other-than-temporary impairment (OTTI) losses, and the cumulative effect of amortization of premiums and accretion of discounts using the effective interest method. Such amortization and accretion are included in net investment income on the Consolidated Statements of Operations. For mortgage-backed and asset-backed securities, the Company considers estimates of future prepayments in the calculation of the effective yield used to apply the interest method. If a difference arises between the anticipated prepayments and the actual prepayments, the Company recalculates the effective yield based on actual prepayments and the currently anticipated future prepayments. The amortized costs of such securities are adjusted to the amount that would have resulted had the recalculated effective yields been applied since the acquisition of the securities with a corresponding charge or credit to net investment income. Interest income on lower rated asset-backed securities is determined using the prospective yield method. Prepayment estimates are based on the structural elements of specific securities, interest rates, and generally recognized prepayment speed indices. For OTTI losses on fixed maturity securities, credit losses are recognized in earnings and losses resulting from factors other than credit of the issuer are recognized in other comprehensive income. See “Note 2–Investments” for further information on factors reviewed to assess OTTIs. Mortgage Loans Mortgage loans are held on commercial real estate and are stated at the aggregate unpaid principal balances, net of any write-downs and valuation allowances. The Company identifies loans for evaluation of impairment primarily based on the collection experience of each loan. Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect principal or interest amounts according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral. Impairments are included in net gains (losses) on investments in the Consolidated Statements of Operations. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. Short-Term Investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months from the date of purchase. Securities included within short-term investments are classified as available-for-sale and are reported at fair value. Changes in fair value are reported as unrealized gains or losses and are a component of AOCI, net of applicable deferred income taxes. Fair value is based on quoted market prices, when available. When quoted market prices are not available, fair value is estimated by discounting fixed maturity securities cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality, by quoted market prices of comparable instruments, and by independent pricing sources. See “Note 11–Assets and Liabilities Measured at Fair Value” for further discussion on inputs and assumptions used to estimate fair value. Policyholder Loans Policyholder loans are carried at the aggregate of the unpaid balance. Interest income on such loans is recorded as earned in net investment income using the contractually agreed-upon interest rate. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand, amounts due from banks and highly liquid investments that are both readily convertible into known amounts of cash and have maturities of three months or less at the time of acquisition such that they present insignificant risk of changes in value due to changing interest rates and lack of credit exposure. The carrying value of these securities approximates their fair value. Reinsurance The Company enters into reinsurance agreements to diversify risk and limit its overall financial exposure. Although these reinsurance agreements contractually obligate the reinsurers to reimburse the Company, they do not discharge the Company from its primary liability and obligation to policyholders. Risk transfer criteria are reviewed for each reinsurance contract to determine if the contract will be accounted for as reinsurance or under the deposit method of accounting. The Company estimates the amount of uncollectible reinsurance recoverables based on periodic evaluations of balances due from reinsurers, reinsurer solvency, and management’s experience. Changes in the estimated amounts for uncollectible reinsurance recoverables are presented as a component of life, annuity, and health claim benefits in the Consolidated Statements of Operations. Amounts owed by reinsurers are considered past due based on the terms of the reinsurance contract. Reinsurance recoverables and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. Deferred Policy Acquisition Costs (DAC) Incremental direct costs of acquiring new business, principally commissions on sales, underwriting, policy issuance and processing, and medical inspection costs, are deferred for successfully placed contracts. DAC for the life insurance business is amortized over the life of the business; for traditional life products, the DAC is amortized as a level percentage of gross premiums; for universal life (UL) products, the DAC is amortized as a level percentage based on estimated gross profits (EGPs). DAC for the assumed block of deferred annuities is amortized over 20 years . For UL and the deferred annuities, amortization amounts are adjusted when revisions are made to the estimates of current or future EGPs. DAC balances are evaluated periodically to assess whether there are sufficient gross margins or gross profits to recover the remaining unamortized balances. Intangible Assets Intangible assets with definite lives are amortized over their expected useful lives using a method that best reflects the pattern in which the economic benefits of the intangible assets will be consumed or on a straight line basis ranging from four to ten years . Interim impairment testing may be performed when events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable. Intangible assets are tested for impairment based on undiscounted cash flows, which requires the use of estimates and judgment, and, if impaired, are written down to fair value based on discounted cash flows. For years ended December 31, 2021 and December 31, 2020 , we have not recorded an impairment of intangible assets. Future Policy Benefits, Policyholder Account Balances, and Other Policyholder Liabilities Future policy benefits represent the reserve for traditional life insurance policies and annuities in payout status. Reserves for traditional life insurance policies are computed using the net level premium method on the basis of actuarial assumptions at the issue date of the contracts, including mortality, policy lapse assumptions, and rates of interest. The reserves for annuities in payout status (structured settlements) represent the present value of assumed future payments based on contract terms for the future payouts and can include assumptions for mortality. To the extent that unrealized gains on available-for-sale fixed maturity securities would result in a premium deficiency had those gains actually been realized, an increase is recorded net of tax as a (decrease) increase of unrealized capital gains included in AOCI. For years ended December 31, 2021 and 2020 , this adjustment, net of tax, was ($ 1,269 ) and $ 2,787 , respectively. A premium deficiency exists if the discounted present value of future gross premiums is not sufficient to cover anticipated future cash outflows. To assess the adequacy of our benefit reserves, we annually perform premium deficiency testing for each of our lines of business using best estimate assumptions as of the date of the test without provision for adverse deviation. If benefit reserves minus the DAC asset are less than the present value of future cash flows on the line of business, then first the DAC asset will be reduced. If reducing the DAC asset down to zero is still not sufficient to eliminate the premium deficiency, then benefit reserves will be increased. Recognizing a premium deficiency will reduce our reported net income or increase our reported loss, for the period. In connection with our premium deficiency testing on our most significant business lines, we performed sensitivity analyses on our Core Life, Non-Core Life, Closed Block, and annuities and assumed life business lines to capture the effect that certain key assumptions have on expected future cash flows, and the impact of those assumptions on the adequacy of DAC balances and GAAP benefit reserves. The sensitivity tests are performed independently, without consideration for any correlation among the key assumptions. Policyholder account balances include the liability for assumed deferred annuity and universal life contracts and the liabilities for policyholder dividends and death benefits on life insurance contracts that have been left on deposit with the Company. These liabilities represent the account value of the policyholder as there are no other benefits due. This liability is equal to the balance that accrues to the benefit of the policyholder, which includes the accumulation of deposits, plus interest credited, less withdrawals. Other policyholder liabilities include the amounts estimated for claims that have been reported but not settled and estimates for claims incurred but not reported. Long and Short-Term Debt Debt represents upfront commission payments received on certain term life products that are to be repaid as level commissions over the life of the underlying policies issued. The debt liability is accounted for under the interest method, which requires the imputation of interest resulting in the recognition of a discount as the difference between the cash payments received and the level commissions expected to be repaid based on current policy lapse assumptions. Under the interest method, the discount is amortized as interest expense over the period that level commissions are repaid resulting in a constant rate of interest when applied to the amount outstanding at the beginning of any given period. The amount to be repaid as level commissions are dependent on the level of expected policy lapses assumed for the underlying commissions financed; therefore, the debt liability may be adjusted in periods where revisions to policy lapse assumptions are made, which may result in the recognition of a gain or loss. Income Taxes The current receivable for federal income tax is recognized based on the estimated amounts to be reflected on the filed tax returns. Federal income tax expense or benefit is recognized based on amounts reported in the consolidated financial statements and using the applicable current federal income tax rate. Income taxes are allocated to operations and other comprehensive (loss) income based on the source of the taxable event. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects of changes in tax rates or laws are recognized in the period that includes the enactment date. If necessary, a valuation allowance is established to reduce the carrying amount of deferred tax assets to amounts that are more likely than not to be realized. See “Note 4 – Income Taxes” for further detail. Revenue Recognition Life and health insurance contract premiums are recognized as income when due from policyholders. Deposits on deposit-type contracts are entered directly as a liability when cash is received. Commission revenue from the sale of insurance products by Efinancial is recognized once the insurance policy is issued by the insurance company and accepted by the customer (policy placement) and recorded as commission receivable, net of any advances received. Provision is made for commission revenue that, based on experience, will ultimately not be earned due to the customer discontinuing the underlying insurance policy. Commission revenue that Efinancial earns from the sale of insurance products where Efinancial acts as the general agent and utilizes a sub-agent to sell the policy (wholesale distribution) is recorded net of related commission expense paid to the writing agency. Efinancial commissions earned for the sale of Fidelity Life products where Efinancial is acting in the capacity as a sub-agent are not eliminated, primarily related to the agreement with AmeriLife in which services under the agency and sub-agency agreements are distinct from one another. Our primary revenue-generating arrangements that are within the scope of Accounting Standards Codification (ASC) 606 are our brokerage arrangements with third-parties. In these arrangements, our customer is the insurance carrier and we have a single performance obligation to place a policy for the insurance carrier. Our performance obligation is satisfied at the point in time when the policy is placed, which is the point in time when the customer obtains control over the policy and has the right to use and obtain the benefits from the policy. In these arrangements, depending on the number of years the policy is in force, a significant majority of our consideration is received in the first year. In addition to the first-year consideration, depending on the specific carrier and product involved, we may also be entitled to renewal commissions over the period of time the policy remains in force. Our consideration is variable based on the amount of time we estimate a policy will remain in force. We estimate the amount of variable consideration that we expect to receive based on our historical experience or carrier experience to the extent available, industry data and our expectations as to future persistency rates. Additionally, we consider application of the constraint and only recognize the amount of variable consideration that we believe is probable to be received and will not be subject to a significant revenue reversal. We monitor and update this estimate at each reporting date. Because we recognize revenue prior to being entitled to the payment for these renewal commissions, we recognize a contract asset; however, we have determined that the amount of our contract asset is immaterial. Additionally, because our brokerage arrangements consist of a single performance obligation that is satisfied at the point in time that policies are placed, we do not have any remaining performance obligations in our contracts with customers. We have evaluated our arrangements and concluded that none of our brokerage arrangements include a significant financing component, and therefore do not adjust revenue for the time value of money. We have determined that any contract costs (e.g., costs to obtain or costs to fulfill) related to our brokerage arrangements are immaterial. Our Chief Operating Decision Maker makes decisions by analyzing our segment information, which is included in Note 14. For internal decision-making purposes and external reporting purposes, we do not disaggregate revenue beyond our segment information and believe that any further disaggregation is immaterial. Insurance lead sales include the sale of potential life insurance customer leads to outside parties including agencies and unaffiliated insurers. Sales of leads are recorded at the time the lead data is sold to the customer and recorded as a receivable, net of allowance for returns. Net Investment Income and Net Gains (Losses) on Investments Net investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and reflects amortization of premiums and accretion of discounts on an effective yield basis, based on expected cash flows. Dividends are recorded on the ex-dividend date. Net gains (losses) on investments, resulting from sales or calls of investments and representing the difference between the net proceeds and the carrying value of investments sold, are determined on a specific identification basis. Net gains (losses) on investments are also recognized when declines in the fair value of invested assets are considered to be other-than-temporary. Changes in value reported for investments accounted for using the equity method of accounting are classified within net gains (losses) on investments. Policyholder Dividend Obligations Dividends payable to policyholders are determined annually based on the experience of the Closed Block policies and are payable only upon declaration by the Board of Directors of Fidelity Life. At December 31, 2021 and 2020 , a provision has been made for dividends expected to be paid in the following calendar year of $ 1,139 and $ 1,180 , respectively. The provision is recorded in other policyholder liabilities in the consolidated balance sheets. The Company also establishes a policyholder dividend obligation when cumulative actual earnings of the Closed Block are in excess of the cumulative expected earnings that were determined at the inception of the Closed Block. See “Note 8 – Closed Block” for further discussion. Recently Issued and Adopted Accounting Pronouncements Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by the Financial Accounting Standards Board (FASB) or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to use the extended transition period for complying with any new or revised financial accounting standards. Accordingly, the information contained herein may be different than the information you receive from other public companies. We also intend to continue to take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases . The guidance is effective for interim and annual periods beginning on or after January 1, 2022. The new guidance requires a lessee to recognize “right-of-use” assets and liabilities for leases with lease terms of more than 12 months including those historically accounted for as operating leases. The effect of the new guidance will be an increase for the present value of remaining lease payments for leases in place at the adoption date in assets and liabilities. This is not expected to have a material impact to the Company’s results of operations or financial position, based on the magnitude of our current two operating leases. In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments, ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) . The guidance is effective for interim and annual periods beginning on or after January 1, 2023. For substantially all financial assets, the ASU should be applied on a modified retrospective basis through a cumulative effect adjustment to Retained earnings. For previously impaired debt securities and certain debt securities acquired with evidence of credit quality deterioration since origination, the new guidance should be applied prospectively. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that OTTI on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through net gains (losses) on investments. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Insurance Contracts (Topic 944). The FASB issue amends the accounting model under GAAP for certain long-duration insurance contracts and requires insurers to provide additional disclosures in annual and interim reporting periods. The amendments are aimed at improving the following four key areas of financial reporting, measurement of the liability for future policy benefits related to nonparticipating traditional and limited-payment contracts, measurement and presentation of market risk benefits, amortization of deferred acquisition costs (DAC), and presentation and disclosures. The Company expects the impact to be material and is in the process of quantifying the impact of this standard. In November 2020, the FASB issued ASU 2020-11— Financial Services—Insurance (Topic 944): Effective Date and Early Application . This ASU was issued to provide additional time for implementation of ASU 2018-12 by deferring the effective date by one year. For smaller reporting companies, this update is effective for fiscal years beginning after January 1, 2025 and interim periods within fiscal years beginning after January 1, 2026. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, “Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) : Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” or ASU 2018-15 Subtopic 350-40, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use-software. The standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-15 Subtopic 350-40 effective January 1, 2021 . The adoption did no t have a material impact on the consolidated financial statements and disclosures. In August 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs , paragraph 310-20-35-33 for each reporting period. For public business entities, the amendments in this update are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. T he amendments in this ASU are to be applied on a prospective basis, as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the impact of this standard to have a material impact on the consolidated financial statements and disclosures . |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | Note 2—Investments The Company continuously monitors its investment strategies and individual holdings with consideration of current and projected market conditions, the composition of the Company’s liabilities, projected liquidity and capital investment needs, and compliance with investment policies and state regulatory guidelines. Fixed Maturities The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and OTTI loss included in AOCI of fixed maturities are as follows: December 31, 2021 Fixed maturities Amortized Unrealized Unrealized Fair OTTI U.S. government and agencies $ 9,825 $ 2,076 $ — $ 11,901 $ — U.S. agency mortgage-backed 12,889 795 ( 5 ) 13,679 — State and political subdivisions 58,170 2,696 ( 396 ) 60,470 — Corporate and miscellaneous 164,823 20,023 ( 348 ) 184,498 — Foreign government 378 36 — 414 — Residential mortgage-backed 5,880 222 ( 33 ) 6,069 ( 412 ) Commercial mortgage-backed 20,003 848 ( 36 ) 20,815 — Asset-backed 54,623 330 ( 416 ) 54,537 — Total fixed maturities $ 326,591 $ 27,026 $ ( 1,234 ) $ 352,383 $ ( 412 ) December 31, 2020 Fixed maturities Amortized Unrealized Unrealized Fair OTTI U.S. government and agencies $ 11,386 $ 2,886 $ — $ 14,272 $ — U.S. agency mortgage-backed 21,015 1,461 — 22,476 — State and political subdivisions 57,646 3,798 ( 15 ) 61,429 — Corporate and miscellaneous 143,242 26,069 ( 258 ) 169,053 — Foreign government 131 45 — 176 — Residential mortgage-backed 6,060 388 ( 27 ) 6,421 ( 151 ) Commercial mortgage-backed 18,567 1,503 ( 53 ) 20,017 — Asset-backed 70,216 605 ( 814 ) 70,007 ( 260 ) Total fixed maturities $ 328,263 $ 36,755 $ ( 1,167 ) $ 363,851 $ ( 411 ) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Maturities of mortgage-backed and asset-backed securities may be substantially shorter than their contractual maturity because they may require monthly principal installments and such loans may prepay principal. The amortized cost and fair value of fixed maturities by contractual maturity, are presented in the following table: December 31, 2021 Amortized Fair Due in one year or less $ 1,753 $ 1,771 Due after one year through five years 36,245 38,497 Due after five years through ten years 67,802 71,435 Due after ten years 127,396 145,580 Securities not due at a single maturity date — primarily mortgage and asset-backed 93,395 95,100 Total fixed maturities $ 326,591 $ 352,383 Fixed maturities with a carrying value of $ 3,604 and $ 3,852 were on deposit with governmental authorities, as required by law at December 31, 2021 and 2020, respectively. The Company’s fixed maturities portfolio was primarily composed of investment grade securities, defined as a security having a rating of Aaa, Aa, A, or Baa from Moody’s, AAA, AA, A, or BBB from S&P or NAIC rating of NAIC 1 or NAIC 2. Investment grade securities comprised 94.8 % and 97.9 % of the Company’s total fixed maturities portfolio at December 31, 2021 and 2020, respectively. At December 31, 2021 and December 31, 2020 , the Company had commitments to make investments in fixed maturity securities in the amount of $ 657 and $ 3,027 , respectively. Mortgage Loans The Company makes investments in commercial mortgage loans. The Company, along with other investors, owns a pro rata share of each loan. The Company participates in 34 such investment instruments with ownership shares ranging from 0.6 % to 30.0 % of the trust at December 31, 2021 . The Company owns a share of 300 mortgage loans with a loan average balance of $ 159 and a maximum exposure related to any single loan of $ 555 . Mortgage loan holdings are diversified by geography and property type as follows: December 31, 2021 December 31, 2020 Gross Carrying % of Total Gross Carrying % of Total Property Type: Retail $ 15,257 32.1 % $ 16,252 32.1 % Office 11,627 24.4 % 12,493 24.7 % Industrial 8,234 17.3 % 8,095 16.0 % Mixed use 5,327 11.2 % 6,014 11.9 % Apartments 2,880 6.1 % 3,439 6.8 % Medical office 3,078 6.5 % 3,119 6.2 % Other 1,153 2.4 % 1,156 2.3 % Gross carrying value of mortgage loans 47,556 100.0 % 50,568 100.0 % Valuation allowance ( 69 ) ( 141 ) Net carrying value of mortgage loans $ 47,487 $ 50,427 December 31, 2021 December 31, 2020 Gross Carrying % of Total Gross Carrying % of Total U.S. Region: West South Central $ 12,017 25.3 % $ 11,780 23.3 % East North Central 12,439 26.3 % 12,105 23.9 % South Atlantic 9,337 19.6 % 10,908 21.6 % West North Central 3,065 6.4 % 3,981 7.9 % Mountain 3,393 7.1 % 4,404 8.7 % Middle Atlantic 2,392 5.0 % 2,824 5.6 % East South Central 3,445 7.2 % 3,060 6.1 % New England 82 0.2 % 91 0.2 % Pacific 1,386 2.9 % 1,415 2.8 % Gross carrying value of mortgage loans 47,556 100.0 % 50,568 100.0 % Valuation allowance ( 69 ) ( 141 ) Net carrying value of mortgage loans $ 47,487 $ 50,427 During the years ended December 31, 2021 and 2020 , $ 3,456 and $ 1,847 of new mortgage loans were purchased, respectively, which did not include second lien mortgage loans. All taxes, assessments, or any amounts advanced were not included in the mortgage loan balances at December 31, 2021 and 2020. At December 31, 2021 and 2020 , the Company had 2 and 6 mortgage loans with a total carrying value of $ 685 and $ 1,408 that were in a restructured status, respectively. There were no impairments for mortgage loans in 2021 and 2020. The changes in the valuation allowance for commercial mortgage loans were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Beginning balance $ 141 $ 53 Net (decrease) increase in valuation allowance ( 72 ) 88 Ending balance $ 69 $ 141 At December 31, 2021 and 2020 the Company had no mortgage loans that were on nonaccrual status. At December 31, 2021 and 2020 , the Company had a commitment to make investments in mortgage loans in the amount of $ 4,485 and $ 1,299 , respectively. Net Investment Income The sources of net investment income are as follows: Year Ended December 31, 2021 2020 Income from: Fixed maturities $ 12,738 $ 12,163 Policyholder loans 305 337 Mortgage loans 2,824 2,498 Short-term investments — 58 Cash, cash equivalents and restricted cash 5 234 Dividends on equity securities 260 378 Gross investment income 16,132 15,668 Investment expenses ( 1,566 ) ( 1,547 ) Net investment income $ 14,566 $ 14,121 Investment expenses include investment management fees, some of which include incentives based on market performance, custodial fees and internal costs for investment-related activities. Net Investment Gains (Losses) The sources of net investment gains (losses) are as follows: Year Ended December 31, 2021 2020 Investment gains (losses) from sales: Fixed maturities $ 801 $ 490 Equity securities ( 1,644 ) ( 312 ) Other Invested Assets 1,175 158 Mortgage loans 116 18 Cash and cash equivalents — ( 8 ) Investment expenses ( 24 ) ( 24 ) Gains and losses from sales 424 322 Valuation change of equity investments - appreciation (decline): 2,682 ( 1,564 ) Total net gains (losses) on investments $ 3,106 $ ( 1,242 ) Other-Than-Temporary Impairment The Company regularly reviews its investments portfolio for factors that may indicate that a decline in the fair value of an investment is other-than-temporary. A fixed maturity security is other-than-temporarily impaired if the fair value of the security is less than its amortized cost basis and the Company either intends to sell the fixed maturity security or it is more likely than not the Company will be required to sell the fixed maturity security before recovery of its amortized cost basis. For all other securities in an unrealized loss position in which the Company does not expect to recover the entire amortized cost basis, the security is deemed to be other-than-temporarily impaired for credit reasons. Significant judgment is required in the determination of whether an OTTI loss has occurred for a security. The Company has developed a consistent methodology and has identified significant inputs for determining whether an OTTI loss has occurred. Some of the factors considered in evaluating whether a decline in fair value is other-than-temporary are the financial condition and prospects of the issuer, payment status, the probability of collecting scheduled principal and interest payments when due, credit ratings of the securities, and the duration and severity of the decline. The credit loss component of a fixed maturity security impairment is calculated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective rate implicit to the security at the date of purchase or prior impairment. The methodology and assumptions for estimating the cash flows vary depending on the type of security. For mortgage-backed and asset-backed securities, cash flow estimates, including prepayment assumptions, are based on data from widely accepted third-party sources or internal estimates. In addition to prepayment assumptions, cash flow estimates vary based on assumptions regarding the underlying collateral characteristics, expectations of delinquency and default rates, and structural support, including subordination and guarantees. If the present value of the modeled expected cash flows equals or exceeds the amortized cost of a security, no credit loss exists and the security is considered to be temporarily impaired. If the present value of the expected cash flows is less than amortized cost, the security is determined to be other-than-temporarily impaired for credit reasons and is recognized as an OTTI loss in earnings. The non-credit component, determined as the difference between the adjusted amortized cost basis and fair value, is recognized as OTTI in other comprehensive (loss) income. A roll-forward of the cumulative credit losses on fixed maturity securities is as follows: December 31, December 31, 2021 2020 Beginning balance of credit losses on fixed maturities $ 833 $ 869 Additional credit losses for which an OTTI was not previously recognized 4 68 Reduction of credit losses related to securities sold during period — ( 104 ) Ending balance of credit losses on fixed maturities $ 837 $ 833 Unrealized Losses for Fixed Maturities The Company’s fair value and gross unrealized losses for fixed maturities, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows: 12 months or less Longer than 12 months Total December 31, 2021 Estimated Gross Estimated Gross Estimated Gross Fixed maturities U.S. agency mortgage-backed $ 294 $ ( 5 ) $ 11 $ — $ 305 $ ( 5 ) State and political subdivisions 20,439 ( 377 ) 231 ( 19 ) 20,670 ( 396 ) Corporate and miscellaneous 11,913 ( 312 ) 727 ( 36 ) 12,640 ( 348 ) Foreign government 247 — — — 247 — Residential mortgage-backed 1,983 ( 13 ) 427 ( 20 ) 2,410 ( 33 ) Commercial mortgage-backed 3,870 ( 36 ) — — 3,870 ( 36 ) Asset-backed 29,487 ( 315 ) 8,798 ( 101 ) 38,285 ( 416 ) Total fixed maturities $ 68,233 $ ( 1,058 ) $ 10,194 $ ( 176 ) $ 78,427 $ ( 1,234 ) 12 months or less Longer than 12 months Total December 31, 2020 Estimated Gross Estimated Gross Estimated Gross Fixed maturities U.S. agency mortgage-backed $ 17 $ — $ 12 $ — $ 29 $ — State and political subdivisions 2,320 ( 15 ) — — 2,320 ( 15 ) Corporate and miscellaneous 5,177 ( 256 ) 254 ( 2 ) 5,431 ( 258 ) Residential mortgage-backed 480 ( 10 ) 140 ( 17 ) 620 ( 27 ) Commercial mortgage-backed 1,028 ( 46 ) 73 ( 7 ) 1,101 ( 53 ) Asset-backed 34,859 ( 607 ) 11,247 ( 207 ) 46,106 ( 814 ) Total fixed maturities $ 43,881 $ ( 934 ) $ 11,726 $ ( 233 ) $ 55,607 $ ( 1,167 ) The indicated gross unrealized losses in all fixed maturity categories were $ 1,234 and $ 1,167 at December 31, 2021 and 2020, respectively. Based on the Company’s current evaluation of its fixed maturities in an unrealized loss position in accordance with our impairment policy and the Company’s current intentions regarding these securities, the Company concluded that these securities were not other-than-temporarily impaired. Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include the number of fixed maturities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at December 31, 2021. Unrealized Losses 12 months or less Number of Securities Total Impairment is Impairment Impairment Percent Fixed maturities U.S. agency mortgage-backed 3 3 — — 100 % State and political subdivisions 55 55 — — 98 % Corporate and miscellaneous 56 54 — 2 64 % Foreign Government 1 1 100 % Residential mortgage-backed 9 9 — — 100 % Commercial mortgage-backed 15 15 — — 87 % Asset-backed 77 76 1 — 86 % Total fixed maturities 216 213 1 2 Unrealized Losses greater than 12 months Number of Securities Total Impairment is Impairment Impairment Percent Fixed maturities U.S. agency mortgage-backed 1 1 — — 100 % State and political subdivisions 1 1 — — 100 % Corporate and miscellaneous 6 6 — — 100 % Residential mortgage-backed 5 4 1 — 40 % Asset-backed 13 11 1 1 85 % Total fixed maturities 26 23 2 1 |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Deferred Policy Acquisition Costs | Note 3—Deferred Policy Acquisition Costs Policy acquisition costs deferred primarily consist of commissions on sales, policy underwriting and issuance costs, and variable sales and marketing costs. Annually, the Company reviews the assumptions and experience underlying the expected gross margins for policies accounted for as investment contracts, which may or may not result in the recognition of unlocking adjustments. The deferred policy acquisition costs and changes are as follows: December 31, December 31, 2021 2020 Beginning balance $ 87,212 $ 85,776 Acquisition costs deferred 26,728 15,397 Amortization ( 18,225 ) ( 13,961 ) Ending balance $ 95,715 $ 87,212 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4—Income Taxes Provided below are income taxes based on the difference between the expected tax provision, applying the statutory tax rate ( 21 %) to the actual tax provision. Year Ended December 31, 2021 2020 (Loss) income before income taxes $ ( 17,035 ) $ ( 27,303 ) Statutory rate 21 % 21 % Income tax (benefit) expense at statutory rate ( 3,578 ) ( 5,734 ) Effect of: Return to provision adjustments ( 186 ) 2,409 Increase (decrease) in the valuation allowance related to return to provision adjustments 598 ( 2,308 ) Increase in the valuation allowance - current year 2,796 3,317 Total increase in the valuation allowance 3,394 1,009 Other ( 8 ) 41 Income tax (benefit) expense $ ( 378 ) $ ( 2,275 ) The components of income tax (benefit) expense are as follows: Year Ended December 31, 2021 2020 Income tax applicable to: Current $ ( 112 ) $ 1,300 Deferred (net of increase in allowance: 2021 - $ 3,394 , 2020 - $ 1,009 ) ( 266 ) ( 3,575 ) Ending balance $ ( 378 ) $ ( 2,275 ) The components of the net deferred income tax assets are as follows: Year Ended December 31, 2021 2020 Deferred tax assets: Net operating loss carryforward $ 21,076 $ 18,131 Reinsurance assets 48,559 48,898 Policyholder dividend obligation 2,660 2,789 Policyholder dividend 239 248 Commission receivable, net 7,255 7,879 Incentive compensation 176 211 Other 1,616 638 Total deferred tax assets 81,581 78,794 Valuation allowance ( 20,059 ) ( 16,665 ) Total deferred income tax assets 61,522 62,129 Deferred tax liabilities: Life insurance reserves 29,014 30,588 Deferred policy acquisition cost 9,643 9,183 Net unrealized investment gains 5,416 6,910 Intangible assets 344 344 Basis difference – investments 392 358 Fixed assets 3,519 3,451 Other 494 369 Total deferred tax liabilities 48,822 51,203 Deferred income tax assets, net $ 12,700 $ 10,926 The Company maintains a valuation allowance against the net deferred tax assets of the companies included in the non-life sub-group because management believes that it is more likely than not that the deferred tax assets will not be recognized based on the current history of tax losses for the non-life sub-group. Certain net operating loss carryforwards will expire between 2025 and 2037 , whereas others have an unlimited carryforward. On December 22, 2017, the Tax Cut and Jobs Act Bill “H.R.1” was enacted, which, among other things, allows Net Operating Losses (NOLs) to be carried forward indefinitely; therefore, NOLs generated after December 31, 2017 are reflected in the table below under the caption no expiration. Internal Revenue Code Section 382 (“Section 382”) limits how much of a loss carryforward existing as of the date of an ownership change that can be used to offset annual taxable income subsequent to the change of ownership. As a result of the IPO and Section 382, the Company will be restricted in its ability to utilize loss carryforwards. The annual limit is estimated to be approximately $ 3.1 million. In 2021 , no NOLs expired and there was a return to provision adjustment related to non-life NOLs of $ 2.8 million. These expiring NOLs have no impact on the Company’s results due to a full valuation allowance on these NOLs. The Company’s net operating loss carryforwards are as follows: Life Sub- Non-Life Total Year net operating loss expires 2025 $ — $ 1,229 $ 1,229 2026 — 5,249 5,249 2027 — 5,057 5,057 2028 — 3,061 3,061 2029 — 1,708 1,708 2030 — 8,121 8,121 2031 — 5,361 5,361 2032 — 2,539 2,539 2033 — 1,099 1,099 2034 — 13,527 13,527 2035 — 5,311 5,311 2036 — 5,267 5,267 2037 — 4,266 4,266 No expiration 1,669 36,897 38,566 $ 1,669 $ 98,692 $ 100,361 The Company has no unrecognized tax benefits for the years ended December 31, 2021 and 2020 and the Company does no t expect the unrecognized tax benefits to increase in the next 12 months. The Company records penalties and interest related to unrecognized tax benefits within income tax expense. |
Policy Liabilities
Policy Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Policy Liabilities | Note 5—Policy Liabilities Future Policy Benefits and Claims Future policy benefits and claims represent the reserve for direct and assumed traditional life insurance policies and annuities in payout status. The annuities in payout status are certain structured settlement contracts. The policy liability for structured settlement contracts of $ 19,398 and $ 21,489 at December 31, 2021 and 2020, respectively, is computed as the present value of contractually-specified future benefits. The amount included in the policy liability for structured settlements that are life contingent at December 31, 2021 and 2020 , is $ 15,557 and $ 17,084 , respectively. To the extent that unrealized gains on fixed maturity securities would result in a premium deficiency had those gains actually been realized, a premium deficiency reserve is recorded. A liability of $ 6,403 and $ 8,010 is included as part of the liability for structured settlements with respect to this deficiency at December 31, 2021 and 2020, respectively. The offset to this liability is recorded as a reduction of the unrealized capital gains included in AOCI. Participating life insurance in-force was 7.5 % and 11.6 % of the face value of total life insurance in force at December 31, 2021 and 2020 , respectively. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Reinsurance | Note 6—Reinsurance The Company uses reinsurance to mitigate exposure to potential losses, provide additional capacity for growth, and provide greater diversity of business. For ceded reinsurance, the Company remains liable to the extent that reinsuring companies may not be able to meet their obligations under the reinsurance agreements. To manage the risk from failure of a reinsurer to meet its obligations, the Company periodically evaluates the financial condition of all of its reinsurers. No amounts have been recorded in 2021 and 2020 for amounts anticipated to be uncollectible or for the anticipated failure of a reinsurer to meet its obligations under the contracts. Reinsurance recoverables are as follows: December 31, December 31, 2021 2020 Ceded future policy benefits $ 146,087 $ 128,456 Claims and other amounts recoverables 38,044 29,559 Ending balance $ 184,131 $ 158,015 The reconciliation of direct premiums to net premiums is as follows: Year Ended December 31, 2021 2020 Direct premiums $ 169,958 $ 146,293 Assumed premiums 41,187 35,779 Ceded premiums ( 103,187 ) ( 74,030 ) Net insurance premiums $ 107,958 $ 108,042 Net policy charges on universal life products were $ 182 and $ 172 for the year ended December 31, 2021 and 2020, respectively, and are included in other income. At December 31, 2021 and December 31, 2020 reserves related to fixed-rate annuity deposits assumed from a former affiliate company amounted to approximately $ 71,832 and $ 74,918 , respectively, and are included with policyholder account balances in the Consolidated Balance Sheets. |
Retirement and Executive Compen
Retirement and Executive Compensation Plans | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement and Executive Compensation Plans | Note 7—Retirement and Executive Compensation Plans The Company sponsors a defined contribution 401(k) plan covering substantially all employees. For the years ended December 31, 2021 and 2020 , the Company’s expenses were $ 544 and $ 599 , respectively. These expenses were recorded as part of Operating costs and expenses in the Consolidated Statements of Operations. |
Closed Block
Closed Block | 12 Months Ended |
Dec. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
Closed Block | Note 8—Closed Block The Closed Block was formed at October 1, 2006 and contains all participating policies issued or assumed by Fidelity Life. The assets and future net cash flows of the Closed Block are available only for purposes of paying benefits, expenses and dividends of the Closed Block and are not available to the Company, except for an amount of additional funding that was established at the inception of the Closed Block. The additional funding was designed to protect the block against future experience, and if the funding is not required for that purpose, is subject to reversion to the Company in the future. Any reversion of Closed Block assets to the Company must be approved by the Illinois Department of Insurance (IDOI). In October 2011, the IDOI approved a reversion of a portion of the initial funding that the Company had determined was not required to fund the Closed Block. The carrying value of the assets transferred from the Closed Block on October 31, 2011, the date of transfer, was $ 4,397 . The assets and liabilities within the Closed Block are included in the Company’s consolidated financial statements on the same basis as other accounts of the Company. The maximum future earnings and accumulated other comprehensive income to be recognized from Closed Block assets and liabilities represent the estimated future Closed Block profits that will accrue to the Company and is calculated as the excess of Closed Block liabilities over Closed Block assets. Included in Closed Block assets are $ 10,463 and $ 10,170 at December 31, 2021 and 2020, respectively, of additional Closed Block funding, plus accrued interest, that is eligible for reversion to the Company if not needed to fund Closed Block experience. The Closed Block was funded based on a model developed to forecast the future cash flows of the Closed Block, which is referred to as the actuarial calculation. The actuarial calculation projected the anticipated future cash flows of the Closed Block as established at the initial funding. We compare the actual results of the Closed Block to expected results from the actuarial calculation as part of the annual assessment of the current level of policyholder dividends. The assessment of policyholder dividends includes projections of future experience of the Closed Block. The review of Closed Block experience also includes consideration of whether policyholder dividend obligations should be recorded to reflect favorable Closed Block experience that has not yet been reflected in the dividend scales. At December 31, 2021 and 2020 , the Company recognized policyholder dividend obligations of $ 12,669 and $ 13,282 , respectively, resulting from the excess of actual cumulative earnings over the expected cumulative earnings and from accumulated net unrealized investment gains that have arisen subsequent to the establishment of the Closed Block. The impacts on the Company’s comprehensive (loss) income from recognizing policyholder dividend obligations are as follows: December 31, December 31, 2021 2020 Actual cumulative (loss) income earnings over expected cumulative earnings $ ( 9,680 ) $ ( 9,284 ) Income tax (benefit) expense ( 2,033 ) ( 1,950 ) Net (loss) income impact ( 7,647 ) ( 7,334 ) Accumulated net unrealized investment (losses) gains ( 2,989 ) ( 3,998 ) Income tax (benefit) expense ( 628 ) ( 839 ) Other comprehensive (loss) income impact ( 2,361 ) ( 3,159 ) Comprehensive (loss) income impact $ ( 10,008 ) $ ( 10,493 ) Information regarding the Closed Block liabilities (assets) designated to the Closed Block is as follows: December 31, December 31, Closed Block Liabilities 2021 2020 Future policy benefits and claims $ 32,005 $ 38,110 Policyholder account balances 6,957 7,272 Other policyholder liabilities 5,017 6,360 Policyholder dividend obligations 12,669 13,282 Other liabilities (assets) ( 634 ) ( 619 ) Total Closed Block liabilities 56,014 64,405 Assets Designated to the Closed Block Investments: Fixed maturities - available-for-sale (amortized cost $ 38,314 and 37,364 , respectively) 43,162 43,738 Policyholder loans 1,210 1,245 Total investments 44,372 44,983 Cash, cash equivalents and restricted cash 1,630 2,614 Premiums due and uncollected 2,089 1,029 Accrued investment income 420 427 Reinsurance recoverables 15,567 22,689 Deferred income tax assets, net 3,139 3,130 Total assets designated to the Closed Block 67,217 74,872 Excess of Closed Block assets over liabilities 11,203 10,467 Amounts included in accumulated other comprehensive income: Unrealized investment gains (losses), net of income tax 3,830 5,035 Allocated to policyholder dividend obligations, net of income tax ( 2,361 ) ( 3,159 ) Total amounts included in accumulated other comprehensive income 1,469 1,876 Maximum future earnings and accumulated other comprehensive income to 10,463 and $ 10,170 , respectively) $ ( 9,734 ) $ ( 8,591 ) Information regarding the policyholder dividend obligations is as follows: December 31, December 31, Policyholder Dividend Obligations 2021 2020 Beginning balance $ 13,282 $ 11,453 Impact from earnings allocable to policyholder dividend obligations 396 235 Change in net unrealized investment gains (losses) allocated to policyholder ( 1,009 ) 1,594 Ending balance $ 12,669 $ 13,282 Information regarding the Closed Block revenues and expenses is as follows: Year Ended December 31, 2021 2020 Revenues Net insurance premiums $ 3,039 $ 7,792 Net investment income 1,488 1,630 Realized gains 29 38 Total revenues 4,556 9,460 Benefits and expenses Life and annuity benefits - including policyholder dividends 1,098 and $ 1,161 respectively 3,810 7,268 Interest credited to policyholder account balances 173 184 Operating costs and expenses ( 875 ) 2,986 Total expenses 3,108 10,438 Revenues, net of expenses before provision for income tax 1,448 ( 978 ) Income tax expense (benefit) 304 ( 205 ) Revenues, net of expenses and provision for income tax $ 1,144 $ ( 773 ) The Company charges the Closed Block with federal income taxes and state and local premium taxes, policy maintenance costs and investment management expenses relating to the Closed Block, as provided in the Closed Block Memorandum. The following table presents the amortized cost and fair value of the Closed Block fixed maturity securities portfolio by contractual maturity at December 31, 2021. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties: Amortized Cost Fair Value Due in one year or less $ 501 $ 506 Due after one year through five years 8,687 9,179 Due after five years through ten years 3,619 4,527 Due after ten years 22,687 26,140 Securities not due at a single maturity date — primarily mortgage and asset- 2,820 2,810 Total fixed maturities $ 38,314 $ 43,162 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Note 9—Regulatory Matters Minimum Capital and Surplus Requirements Fidelity Life is required to comply with the provisions of state insurance statutes in the jurisdictions in which it does business. These statutes include minimum statutory capital and surplus requirements. At December 31, 2021 , Fidelity Life exceeded the minimum statutory capital and surplus level of $ 2,000 required by Illinois, its state of domicile. Risk-Based Capital Requirements The NAIC established a standard for assessing the solvency of insurance companies using a formula for determining each insurer’s risk-based capital (RBC). At December 31, 2021, the RBC of the Company’s insurance subsidiary, Fidelity Life, exceeded the levels at which certain regulatory corrective actions would be initiated. Dividend Limitations The maximum amount of dividends that can be paid by Illinois life insurance companies to shareholders without 30 days prior notice to the Director of the IDOI is the greater of (i) statutory net income for the preceding year or (ii) 10% of statutory surplus as of the preceding year-end. However, under State of Illinois insurance statutes, dividends may be paid only from surplus, excluding unrealized appreciation in value of investments without prior approval. All dividends paid by Fidelity Life must be reported to the IDOI prior to payment. Fidelity Life declared and paid no dividends during the twelve months ended December 31, 2021 and 2020, respectively. In connection with the approval of the Conversion by the Director, the Company agreed, for a period of twenty-four months following the completion of the Conversion, to (i) seek the prior approval of the IDOI for any declaration of an ordinary dividend by Fidelity Life, and (ii) either maintain $ 20 million of the proceeds of the IPO at Vericity, Inc. or use all or a portion of that $ 20 million to fund Company operations. Statutory Accounting Practices Fidelity Life prepares their statutory-basis financial statements in conformity with accounting practices prescribed or permitted by the IDOI. The IDOI requires that insurance companies domiciled in Illinois prepare their statutory-basis financial statements in accordance with the NAIC’s Accounting Practices and Procedures Manual, as modified by the IDOI. In addition, the IDOI has the right to permit other specific practices that may deviate from prescribed practices. Statutory Financial Information The statutory capital and surplus and net income for Fidelity Life, as determined in accordance with statutory accounting practices prescribed or permitted by the IDOI, at December 31, 2021 and 2020, and for the years ended December 31, 2021 and 2020, are as follows: At December 31, 2021 2020 Statutory capital and surplus Fidelity Life $ 98,211 $ 112,316 Year Ended December 31, 2021 2020 Statutory net (loss) income Fidelity Life $ ( 8,692 ) $ 6,206 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10—Commitments and Contingencies Leases Minimum future operating lease payments, including lease payments for real estate, vehicles, computers and office equipment at December 31, 2021, are as follows: Year 2022 $ 1,374 2023 746 2024 362 2025 48 Total $ 2,530 Lease expense for the years ended December 31, 2021 and 2020 was $ 1,466 and $ 1,771 , respectively. Litigation The Company is subject to legal and regulatory actions in the ordinary course of its business. Management does not believe such litigation will have a material impact on the Company’s financial statements. The Company establishes accruals for litigation and regulatory matters when it is probable that a loss has been incurred and the amount of that loss can be reasonably estimated. For litigation and regulatory matters where a loss may be reasonably possible but not probable or, is probable but not reasonably able to be estimated, no accrual is established, but the matter, if material, is disclosed. The Company is not aware of any material legal or regulatory matters threatened or pending against the Company. Federal Home Loan Bank of Chicago The Company is a member of the FHLBC. As a member, the Company is able to borrow on a collateralized basis from FHLBC which can be used as an alternative source of liquidity. The FHLBC membership requires the Company to own member stock. At December 31, 2021 and December 31, 2020 , the Company held $ 115 of FHLBC common stock. The Company's ability to borrow under this facility is subject to the FHLBC's discretion and requires the availability of qualifying assets. As of December 31, 2021 and December 31, 2020 , the Company had no t pledged any assets and there were no outstanding borrowings . |
Assets and Liabilities Measured
Assets and Liabilities Measured at Fair Value | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | Note 11—Assets and Liabilities Measured at Fair Value Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company attempts to establish fair value as an exit price consistent with transactions taking place under normal market conventions. The Company utilizes market observable information to the extent possible and seeks to obtain quoted market prices for all securities. If quoted market prices in active markets are not available, the Company uses a number of methodologies to establish fair value estimates including discounted cash flow models, prices from recently executed transactions of similar securities, or broker/dealer quotes. Fair values for the Company’s fixed maturities and equity securities are determined by management, utilizing prices obtained from third-party pricing services. Management reviews on an ongoing basis the reasonableness of the methodologies used by the pricing services to ensure prices received represent a reasonable estimate of fair value and to confirm representations regarding whether inputs are observable or unobservable. The main procedure the Company employs in fulfillment of this objective includes back-testing transactions, where past fair value estimates are compared to actual transactions executed in the market on similar dates. The Company’s assets and liabilities have been classified into a three-level hierarchy based on the priority of the inputs to the respective valuation technique. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Level 1 and Level 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows: Level 1 – Unadjusted quoted prices for identical assets in active markets the Company can access. Level 1 assets include securities that are traded in an active exchange market. Level 2 – This level includes fixed maturities priced principally by independent pricing services using observable inputs other than Level 1 prices, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments on inactive markets; and model-derived valuations for which all significant inputs are observable market data. Level 2 instruments include most corporate debt securities and U.S. government and agency mortgage-backed securities that are valued by models using inputs that are derived principally from or corroborated by observable market data. Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Level 3 instruments include less liquid assets for which significant inputs are unobservable in the market, such as structured securities with complex features that require significant management assumptions or estimation in the fair value measurement. This hierarchy requires the use of observable market data when available. Certain assets and liabilities are not carried at fair value on a recurring basis, including investments such as mortgage loans, intangible assets, future policy benefits excluding term life reserves and policyholder account balances. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition (for example, when there is evidence of impairment) and the resulting re-measurement is reflected in the consolidated financial statements at the reporting date. Recurring and Non-Recurring Fair Value Measurements The Company’s assets and liabilities that are carried at fair value on a recurring and non-recurring basis, by fair value hierarchy level, are as follows: December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Recurring fair value measurements Financial instruments recorded as assets: Fixed maturities U.S. government and agencies $ — $ 11,901 $ — $ 11,901 U.S. agency mortgage-backed — 13,679 — 13,679 State and political subdivisions — 59,972 498 60,470 Corporate and miscellaneous 2,821 156,937 24,740 184,498 Foreign government — 414 — 414 Residential mortgage-backed — 6,069 — 6,069 Commercial mortgage-backed — 20,815 — 20,815 Asset-backed — 51,699 2,838 54,537 Total fixed maturities 2,821 321,486 28,076 352,383 Equity securities — — — — Total recurring assets $ 2,821 $ 321,486 $ 28,076 $ 352,383 December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Recurring fair value measurements Financial instruments recorded as assets: Fixed maturities U.S. government and agencies $ — $ 14,272 $ — $ 14,272 U.S. agency mortgage-backed — 22,476 — 22,476 State and political subdivisions — 60,908 521 61,429 Corporate and miscellaneous 2,685 157,935 8,433 169,053 Foreign government — 176 — 176 Residential mortgage-backed — 6,421 — 6,421 Commercial mortgage-backed — 20,017 — 20,017 Asset-backed — 68,706 1,301 70,007 Total fixed maturities 2,685 350,911 10,255 363,851 Equity securities 3,833 15 — 3,848 Total recurring assets $ 6,518 $ 350,926 $ 10,255 $ 367,699 Summary of Significant Valuation Techniques for Assets and Liabilities on a Recurring Basis Level 1 securities include principally exchange-traded funds that are valued based on quoted market prices for identical assets. All the fair values of the Company’s fixed maturities and equity securities within Level 2 are based on prices obtained from independent pricing services. All of the Company’s prices for each security are generally sourced from multiple pricing vendors, and a vendor hierarchy is maintained by asset type and region of the world, based on historical pricing experience and vendor expertise. The Company ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type and region. For fixed maturities that do not trade on a daily basis, the pricing services prepare estimates of fair value measurements using their pricing applications which incorporate a variety of inputs including, but not limited to, benchmark yields, reported trades, broker/dealer quotes, issuer spreads, and U.S. Treasury curves. Specifically, for asset-backed securities, key inputs include prepayment and default projections based on past performance of the underlying collateral and current market data. Securities with validated quotes from pricing services are reflected within Level 2 of the fair value hierarchy, as they generally are based on observable pricing for similar assets or other market significant observable inputs. Level 3 fair value classification consists of investments in structured placement securities where the fair value of the security is determined by a pricing service using internal pricing models where one or more of the significant inputs is unobservable in the marketplace, or there is a single broker/dealer quote. The fair value of a broker-quoted asset is based solely on the receipt of an updated quote from a single market maker or a broker-dealer recognized as a market participant. The fair value of Level 3 liabilities is estimated on the discounted cash flows of contractual payments. If the Company believes the pricing information received from third-party pricing services is not reflective of market activity or other inputs observable in the market, the Company may challenge the price through a formal process with the pricing service. Historically, the Company has not challenged or updated the prices provided by third-party pricing services. However, any such updates by a pricing service to be more consistent with the presented market observations, or any adjustments made by the Company to prices provided by third-party pricing services would be reflected in the balance sheet for the current period. When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. Thus, a Level 3 fair value measurement may include inputs that are observable (Level 1 or Level 2) and unobservable (Level 3). Net transfers into and/or out of Level 3 are reported as having occurred at the beginning of the period and are based on observable inputs received from pricing sources; therefore, all net realized and unrealized gains and losses on these securities for the period are reflected in the table that follows. A summary of changes in fair value of Level 3 assets held at fair value on a recurring basis is as follows: Total gains (losses) included in: Balance at January 1, 2021 Net Income OCI Purchases Sales Settlements Net Balance at December 31, 2021 Financial Assets Fixed maturities State and political subdivision $ 521 $ — $ ( 23 ) $ — $ — $ — $ — $ 498 Corporate and miscellaneous 8,433 ( 39 ) — 18,873 — ( 14 ) ( 2,513 ) 24,740 Asset-backed 1,301 — ( 2 ) 1,290 — ( 251 ) 500 2,838 Total assets $ 10,255 $ ( 39 ) $ ( 25 ) $ 20,163 $ — $ ( 265 ) $ ( 2,013 ) $ 28,076 Total gains (losses) included in: Balance at January 1, 2020 Net Income OCI Purchases Sales Settlements Net Balance at December 31, 2020 Financial Assets Fixed maturities State and political subdivisions $ — $ — $ 21 $ 500 $ — $ — $ — $ 521 Corporate and miscellaneous — 42 120 8,271 — — — 8,433 Asset-backed 1,215 — ( 34 ) 292 — ( 172 ) — 1,301 Total assets $ 1,215 $ 42 $ 107 $ 9,063 $ — $ ( 172 ) $ — $ 10,255 There were 3 transfers from Level 3 to Level 2 and 1 transfer from Level 2 to Level 3 in 2021. In 2020 , there were no transfers. Financial Instruments not Measured at Fair Value The carrying amount and estimated fair values of the Company’s financial instruments that are not measured at fair value on the Consolidated Balance Sheets are as follows: Estimated Fair Value December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial instruments recorded as assets: Mortgage loans $ 47,487 $ — $ — $ 43,047 $ 43,047 Policyholder loans $ 6,371 $ — $ — $ 8,280 $ 8,280 Financial instruments recorded as liabilities: Future policy benefits, excluding term life reserves $ 22,680 $ — $ — $ 19,733 $ 19,733 Long/short-term debt $ 26,378 $ — $ — $ 31,940 $ 31,940 Policyholder account balances $ 80,494 $ — $ — $ 86,198 $ 86,198 Estimated Fair Value December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Total Financial instruments recorded as assets: Mortgage loans $ 50,427 $ — $ — $ 46,816 $ 46,816 Policyholder loans $ 6,414 $ — $ — $ 8,335 $ 8,335 Financial instruments recorded Future policy benefits, excluding term $ 24,495 $ — $ — $ 20,454 $ 20,454 Long/short-term debt $ 30,478 $ — $ — $ 37,033 $ 37,033 Policyholder account balances $ 83,869 $ — $ — $ 92,190 $ 92,190 The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities. Mortgage Loans —Fair value was based on the discounted value of future cash flows for all first mortgage loans adjusted for specific loan risk. The discount rate was based on the rate that would be offered for similar loans at the reporting date. Fair value excludes $ 2,398 and $ 2,675 of second and mezzanine mortgages carried at cost which fair value is not measurable at December 31, 2021 and 2020, respectively. Policyholder Loans —Fair value of policyholder loans are estimated using discounted cash flows using risk-free interest rates with no adjustment for borrower credit risk as these loans are fully collateralized by the cash value of the underlying insurance policy. Future Policy Benefits and Policyholder Account Balances —For deposit liabilities with interest rate guarantees greater than one year or with defined maturities, the fair value was estimated by calculating an average present value of expected cash flows over a broad range of interest rate scenarios using the current market risk-free interest rates adjusted for spreads required for publicly traded bonds issued by comparably rated insurers. For deposit liabilities with interest rate guarantees of less than one year, the fair value was based on the amount payable on demand at the reporting date. Long and Short-Term Debt —Fair value was calculated using the discounted value of future cash flows method. The discount rate was based on the rate that is commensurable to the level of risk. The carrying amounts reported on the Consolidated Balance Sheets has been divided into short and long-term based upon expected maturity dates. |
Long and Short-Term Debt
Long and Short-Term Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long and Short-Term Debt | Note 12—Long and Short-Term Debt Beginning in the fourth quarter of 2017, Fidelity Life changed the commission structure related to Efinancial’s sale of the RAPIDecision® Life to pay annual level commissions over the life of the product instead of up-front, or first-year-only commissions. This change reduced Fidelity Life’s surplus strain associated with issuing RAPIDecision® Life business by spreading its statutory commission expenses over the life of the policy instead of incurring it all in the policy year of issue. In order to help provide liquidity for Efinancial through the receipt of larger first-year-only commissions, Fidelity Life and Efinancial entered into a financing arrangement with Hannover Life under which, on a monthly basis, Hannover Life advances to Efinancial amounts approximately equal to the first-year-only commissions on Fidelity Life RAPIDecision® Life business sold through Efinancial. In exchange, Efinancial assigns to Hannover Life its right to all future levelized commission payments on that business due from Fidelity Life, and Fidelity Life pays to Hannover Life the level commissions over the life of the contract. Our arrangement with Hannover Life allows us to finance up to $ 30.0 million of commission expense. In the first quarter of 2021, the Company ceased new advances on this financing arrangement. Efinancial’s ability to receive advances under this arrangement will terminate when the aggregate amount advanced under the arrangement equals or exceeds $ 30.0 million. This arrangement was also amended in 2021 removing Fidelity Life as a party to the arrangement. At December 31, 2021 and December 31, 2020 , we had a net advance of $ 21,937 and $ 27,533 , respectively, under this arrangement. At December 31, 2021, the Company expects to pay back the aggregate amounts as presented in the following table. Due in one year or less $ 3,869 Due after one year through two years 3,567 Due after two years through three years 3,350 Due after three years through four years 3,182 Due after four years through five years 3,038 Due after five years 21,911 Less discount ( 12,539 ) Total long/short-term debt $ 26,378 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 13—Accumulated Other Comprehensive Income (Loss) Changes in Accumulated Other Comprehensive (Loss) Income, net of taxes are as follows: Net Unrealized Net Unrealized Total Balance at January 1, 2021 $ 362 $ 16,239 $ 16,601 Other comprehensive income (loss) Unrealized holding gains from changes in the market value of securities — ( 9,796 ) ( 9,796 ) Impact on Policy benefit liabilities of changes in market value of securities — 1,606 1,606 Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations — 1,009 1,009 Income tax (expense) benefit — 1,509 1,509 Other comprehensive income (loss), net of tax — ( 5,672 ) ( 5,672 ) Balance at December 31, 2021 $ 362 $ 10,567 $ 10,929 Net Unrealized Net Unrealized Total Balance at January 1, 2020 $ 362 $ 8,395 $ 8,757 Other comprehensive income (loss) Unrealized holding gains from changes in the market value of securities — 15,054 15,054 Impact on Policy benefit liabilities of changes in market value of securities — ( 3,527 ) ( 3,527 ) Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations — ( 1,594 ) ( 1,594 ) Income tax benefit (expense) — ( 2,089 ) ( 2,089 ) Other comprehensive income (loss), net of tax — 7,844 7,844 Balance at December 31, 2020 $ 362 $ 16,239 $ 16,601 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Note 14—Business Segments The Company’s current operations were organized into three reportable segments: Insurance, Agency, and Corporate. In the first quarter of 2021 and in connection with now selling the majority of our insurance products through the AmeriLife agency arrangement which are not eliminated, the Company has removed Eliminations as a separate component of our segment presentation to better align with the decline in intersegment earned commissions . Intersegment earned commissions and deferral of agents selling costs for a successful policy sale previously reported as Eliminations are now reported as part of the Corporate & Other segment, and amortization of deferred policy acquisition costs and commission related to policy acquisition costs previously reported as Eliminations are now reported as part of the Insurance segment. These changes were made to better reflect the manner in which the Company is currently organized for purposes of making operating decisions and assessing performance. There was no change to the Agency segment. Segment data for prior reporting periods has been adjusted to reflect the new segment reporting. The reclassification of historical segment information has no effect on the Company's previously reported consolidated results of operations, financial condition, or cash flows. The Insurance Segment is composed of three broad lines consisting of Direct Life, Closed Block, and Assumed Life and Annuities. Direct Life and the Closed Block are distinct operations; the assumed business and the small amount of structured settlements are all blocks in run-off from a prior management arrangement. The Agency Segment includes the insurance distribution operations of the Company and includes commission revenue from the sale of Fidelity Life products. The Corporate & Other Segment includes certain expenses that are corporate expenses or that will benefit the overall organization and are not allocated to a segment. All intercompany accounts and transactions have been eliminated in consolidation, including any profit or loss from the sale of Insurance Segment products through the Agency Segment. The segment results are as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Insurance Agency Corporate & Other Total Insurance Agency Corporate & Other Total Net insurance premiums $ 107,958 $ — $ — $ 107,958 $ 108,042 $ — $ — $ 108,042 Net investment income 13,973 — 593 14,566 13,925 — 196 14,121 Net gains (losses) on investments 2,352 — 754 3,106 ( 1,370 ) — 128 ( 1,242 ) Other-than-temporary-impairments ( 4 ) — — ( 4 ) ( 68 ) — — ( 68 ) Earned commissions — 46,455 ( 2,062 ) 44,393 — 43,425 ( 21,614 ) 21,811 Other income 247 6,313 — 6,560 209 4,958 — 5,167 Total revenues 124,526 52,768 ( 715 ) 176,579 120,738 48,383 ( 21,290 ) 147,831 Life, annuity, and health claim benefits 80,677 — — 80,677 80,810 — — 80,810 Operating costs and expenses 25,688 56,739 12,285 94,712 26,589 49,249 4,525 80,363 Amortization of deferred policy acquisition 18,225 — — 18,225 13,961 — — 13,961 Total benefits and expenses 124,590 56,739 12,285 193,614 121,360 49,249 4,525 175,134 (Loss) income before income tax $ ( 64 ) $ ( 3,971 ) $ ( 13,000 ) $ ( 17,035 ) $ ( 622 ) $ ( 866 ) $ ( 25,815 ) $ ( 27,303 ) December 31, 2021 December 31, 2020 Insurance Agency Corporate & Other Total Insurance Agency Corporate & Other Total Investments and cash $ 419,953 $ 425 $ 10,402 $ 430,780 $ 436,757 $ 3,469 $ 20,829 $ 461,055 Commissions and agent balances 11,919 16,770 — 28,689 ( 12,231 ) 31,651 106 19,526 Deferred policy acquisition costs 95,715 — — 95,715 87,212 — — 87,212 Intangible assets — 1,635 — 1,635 — 1,635 — 1,635 Reinsurance recoverables 184,131 — — 184,131 158,015 — — 158,015 Deferred income tax (liabilities) ( 4,136 ) — 16,836 12,700 ( 7,351 ) — 18,277 10,926 Other 26,074 4,023 4,260 34,357 23,845 2,909 3,641 30,395 Total assets $ 733,656 $ 22,853 $ 31,498 $ 788,007 $ 686,247 $ 39,664 $ 42,853 $ 768,764 All the Company’s significant revenues and long-lived assets are located in the United States, which is the Company’s country of domicile. |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Note 15 – Quarterly Financial Information As a smaller reporting company, as defined by Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore is not required to provide the information required by Item 503(c) of Regulation S-K. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16—Subsequent Events Management has evaluated subsequent events up to and including March 31, 2022, the date these Consolidated Financial Statements were issued and determined there were no reportable subsequent events. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Summary Of Investments Other Than Investments In Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investments in Related Parties | Vericity, Inc. Schedule I Summary of Investments Other Than Investments in Related Parties As of December 31, 2021 (dollars in thousands) Type of Investment Cost Value Balance Sheet Fixed maturities: Bonds: U.S. government and agencies $ 9,825 $ 11,901 $ 11,901 U.S. agency mortgage backed 12,889 13,679 13,679 State and political subdivisions 58,170 60,470 60,470 Corporate and miscellaneous 164,823 184,498 184,498 Foreign government 378 414 414 Residential mortgage backed securities 5,880 6,069 6,069 Commercial mortgage backed securities 20,003 20,815 20,815 Asset backed securities 54,623 54,537 54,537 Total fixed maturity securities 326,591 352,383 352,383 Mortgage loans 47,487 47,487 47,487 Policy loans 6,371 6,371 6,371 Other invested assets 2,140 2,140 2,140 Total investments $ 382,589 $ 408,381 $ 408,381 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant (Parent Company) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant (Parent Company) | Vericity, Inc. Schedule I I Condensed Financial Information of Registrant (Parent Company) Statement of Operations As of and for the Years Ended December 31, 2021 and 2020 (dollars in thousands) For the Years Ended December 31, 2021 2020 Revenues Net investment income and gains (losses) $ 1,425 $ 385 Total revenues 1,425 385 Expenses Operating costs and expenses 11,038 11,343 Total expenses 11,038 11,343 Income (loss) before income taxes ( 9,613 ) ( 10,958 ) Income tax expense (benefit) ( 670 ) ( 762 ) Net income (loss) before equity in net loss of subsidiary ( 8,943 ) ( 10,196 ) Equity in net (loss) of subsidiary ( 7,714 ) ( 14,832 ) Net (loss) income ( 16,657 ) ( 25,028 ) Accumulated other comprehensive income (loss) — 15 Equity in other comprehensive income of subsidiary ( 5,672 ) 7,829 Total comprehensive (loss) income $ ( 22,329 ) $ ( 17,184 ) See footnotes to the condensed financial statements. Vericity, Inc. Schedule II (Continued) Condensed Financial Information of Registrant Statement of Financial Position (dollars in thousands) For the Years Ended December 31, 2021 2020 Assets Investment in subsidiaries $ 155,163 $ 168,549 Fixed maturities - available-for-sales - at fair value (amortized cost; $ 5,883 and $ 4,863 ) 5,883 4,863 Other invested assets 555 135 Cash, cash equivalents and restricted cash 3,884 15,750 Accrued investment income — 1 Inter-company receivables 7,095 6,067 Current income tax receivable 1,613 943 Other assets 755 862 Total assets 174,948 197,170 Liabilities and Shareholders' Equity Liabilities: Other liabilities 2,044 1,937 Total liabilities 2,044 1,937 Shareholders' Equity Common stock, $ .001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding 15 15 Additional paid-in capital 39,840 39,840 Retained earnings 122,120 138,777 Accumulated other comprehensive income (loss) 10,929 16,601 Total shareholders' equity 172,904 195,233 Total liabilities and shareholders' equity $ 174,948 $ 197,170 See footnotes to the condensed financial statements. Vericity, Inc. Schedule II (Continued) Condensed Financial Information of Registrant Statement of Cash Flows (dollars in thousands) For the Years Ended December 31, 2021 2020 Cash flows from operating activities Net (loss) income $ ( 16,657 ) $ ( 25,028 ) Adjustments to reconcile net income to net cash provided (used) by operations: Equity in earnings of subsidiaries 7,714 14,832 Net investment gains (losses) ( 754 ) ( 128 ) Accretion of bond discount ( 321 ) ( 58 ) Change in: Due to subsidiaries ( 1,027 ) ( 1,349 ) Accrued investment income 1 11 Other liabilities 106 1,843 Other assets 107 ( 862 ) Income tax ( 670 ) ( 762 ) Net cash used by operating activities ( 11,501 ) ( 11,501 ) Cash flows from investing activities Purchases of fixed maturities ( 4,239 ) ( 4,734 ) Purchases of other invested assets 334 ( 135 ) Sales of fixed maturities 3,540 — Sales of short-term investments — 29,800 Net cash provided (used) by investing activities ( 365 ) 24,931 Cash flows from financing activities Net cash flows provided by financing — — Net (decrease) increase in cash and cash equivalents ( 11,866 ) 13,430 Cash, cash equivalents and restricted cash - beginning of period 15,750 2,320 Cash, cash equivalents and restricted cash - end of period $ 3,884 $ 15,750 See footnotes to the condensed financial statements. Vericity, Inc. Schedule II (Continued) Notes to Condensed Financial Information of Registrant Note 1—General Pu rsuant to rules and regulations of the SEC, the unconsolidated condensed financial statements of the Parent Company do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8. |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2021 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | Schedule III Supplementary Insurance Information As of and for the Years Ended December 31, 2021 and 2020 (dollars in thousands) Segment Deferred Future Other Net Insurance Premiums Net Benefits, Amortization Other 2021 Insurance $ 95,715 $ 416,039 $ 142,365 $ 107,958 $ 13,973 $ 80,677 $ 18,225 $ 25,688 Agency — — — — — — — 56,739 Corporate & other — — — — 593 — — 12,285 Total $ 95,715 $ 416,039 $ 142,365 $ 107,958 $ 14,566 $ 80,677 $ 18,225 $ 94,712 2020 Insurance $ 87,212 $ 381,563 $ 134,940 $ 108,042 $ 13,925 $ 80,810 $ 13,961 $ 26,589 Agency — — — — — — — 49,249 Corporate & other — — — — 196 — — 4,525 Total $ 87,212 $ 381,563 $ 134,940 $ 108,042 $ 14,121 $ 80,810 $ 13,961 $ 80,363 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | Vericity, Inc. Schedule IV Reinsurance As of and for the Years Ended December 31, 2021 and 2020 (dollars in thousands) Gross Ceded to Assumed Net Percentage 2021 Life insurance face amount in-force (millions) $ 34,854 $ 33,845 $ 3,975 $ 4,984 79.8 % Premiums Life insurance $ 169,204 $ 103,028 $ 41,187 $ 107,363 38.4 % Accident and health 754 159 — 595 0.0 % Total premiums $ 169,958 $ 103,187 $ 41,187 $ 107,958 38.2 % 2020 Life insurance face amount in-force (millions) $ 32,343 $ 32,094 $ 2,928 $ 3,177 92.2 % Premiums Life insurance $ 145,597 $ 73,855 $ 35,779 $ 107,521 33.3 % Accident and health 696 175 — 521 0.0 % Total premiums $ 146,293 $ 74,030 $ 35,779 $ 108,042 33.1 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Vericity, Inc. Schedule V Valuation and Qualifying Accounts For the Years Ended December 31, 2021 and 2020 (dollars in thousands) Additions Balance at Charged to Other Deductions Balance at 2021 Allowance for losses on commercial mortgage $ 141 $ — $ — $ 72 $ 69 Allowance for uncollectible receivables 880 — — 299 581 Valuation allowance on deferred tax asset 16,665 3,394 — — 20,059 $ 17,686 $ 3,394 $ — $ 371 $ 20,709 2020 Allowance for losses on commercial mortgage $ 53 $ — $ 88 $ — $ 141 Allowance for uncollectible receivables 545 335 — — 880 Valuation allowance on deferred tax asset 15,656 1,009 — — 16,665 $ 16,254 $ 1,344 $ 88 $ — $ 17,686 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Vericity, Inc. is a Delaware corporation organized to be the stock holding company for Members Mutual Holding Company (Members Mutual) and its subsidiaries. On August 7, 2019, Vericity, Inc. completed the initial public offering of 14,875,000 shares of its common stock at a price of $ 10.00 per share (the IPO). The IPO was conducted in connection with the conversion of Members Mutual from mutual to stock form and the acquisition by Vericity, Inc. of all of the capital stock of Members Mutual following its conversion to stock form after its plan of conversion and amended and restated articles of incorporation were approved at a special meeting of eligible members on August 6, 2019 (the Conversion). As a result of the Conversion, Vericity, Inc. became the holding company for converted Members Mutual and its indirect subsidiaries, including Fidelity Life Association (Fidelity Life) and Efinancial, LLC (Efinancial). Vericity, Inc. operates as a holding company and currently has no other business operations. Fidelity Life is an Illinois domiciled life insurance company that was founded in 1896. Fidelity Life markets life insurance products through independent and affiliated distributors and is licensed in the District of Columbia and all states, except New York and Wyoming. Efinancial markets life and other products for non-affiliated insurance companies and sells life products for Fidelity Life. The accompanying consolidated financial statements present the accounts of Vericity, Inc. and subsidiaries at December 31, 2021 and December 31, 2020, and for the years ended December 31, 2021 and 2020 . |
Basis of Presentation | Basis of Presentation These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Unconsolidated Variable Interest Entities | Unconsolidated Variable Interest Entities In the normal course of investing activities, the Company enters into relationships with variable interest entities (VIEs), as an investor in limited partnership interests and asset-backed securities. The Company is not the primary beneficiary of these VIEs, and therefore does not consolidate them. The Company determines whether it is the primary beneficiary of a VIE based on a qualitative assessment of the relative power and benefits of the Company and the other participants in the VIE. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying values included in the Company’s Consolidated Balance Sheets and any unfunded commitments. |
Fixed Maturities and Equity Securities | Fixed Maturities and Equity Securities Fixed maturities classified as available-for-sale are reported at fair value. Changes in fair value are reported as unrealized gains or losses as discussed below. Fixed maturities include bonds, residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities. Unrealized gains and losses on available-for-sale fixed maturity securities are reported as a component of accumulated other comprehensive income (AOCI), net of applicable deferred income taxes. Equity securities are reported at fair value with changes in fair value included in net investment gains (losses). Equity securities include common stock. Fair value is based on quoted market prices, when available. When quoted market prices are not available, fair value is estimated by discounting fixed maturity securities cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality, by quoted market prices of comparable instruments, and by independent pricing sources. See Note 11 for further discussion on inputs and assumptions used to estimate fair value. The amortized cost of fixed maturity securities is determined based on cost, adjustments for previously recorded other-than-temporary impairment (OTTI) losses, and the cumulative effect of amortization of premiums and accretion of discounts using the effective interest method. Such amortization and accretion are included in net investment income on the Consolidated Statements of Operations. For mortgage-backed and asset-backed securities, the Company considers estimates of future prepayments in the calculation of the effective yield used to apply the interest method. If a difference arises between the anticipated prepayments and the actual prepayments, the Company recalculates the effective yield based on actual prepayments and the currently anticipated future prepayments. The amortized costs of such securities are adjusted to the amount that would have resulted had the recalculated effective yields been applied since the acquisition of the securities with a corresponding charge or credit to net investment income. Interest income on lower rated asset-backed securities is determined using the prospective yield method. Prepayment estimates are based on the structural elements of specific securities, interest rates, and generally recognized prepayment speed indices. For OTTI losses on fixed maturity securities, credit losses are recognized in earnings and losses resulting from factors other than credit of the issuer are recognized in other comprehensive income. See “Note 2–Investments” for further information on factors reviewed to assess OTTIs. |
Mortgage Loans | Mortgage Loans Mortgage loans are held on commercial real estate and are stated at the aggregate unpaid principal balances, net of any write-downs and valuation allowances. The Company identifies loans for evaluation of impairment primarily based on the collection experience of each loan. Mortgage loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect principal or interest amounts according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral. Impairments are included in net gains (losses) on investments in the Consolidated Statements of Operations. Interest income from mortgage loans is recognized on an accrual basis using the effective yield method. Accrual of income is generally suspended for mortgage loans that are in default or when full and timely collection of principal and interest payments is not probable. |
Short Term Investments | Short-Term Investments Short-term investments include highly liquid securities and other investments with remaining maturities of one year or less, but greater than three months from the date of purchase. Securities included within short-term investments are classified as available-for-sale and are reported at fair value. Changes in fair value are reported as unrealized gains or losses and are a component of AOCI, net of applicable deferred income taxes. Fair value is based on quoted market prices, when available. When quoted market prices are not available, fair value is estimated by discounting fixed maturity securities cash flows to reflect interest rates currently being offered on similar terms to borrowers of similar credit quality, by quoted market prices of comparable instruments, and by independent pricing sources. See “Note 11–Assets and Liabilities Measured at Fair Value” for further discussion on inputs and assumptions used to estimate fair value. |
Policyholder Loans | Policyholder Loans Policyholder loans are carried at the aggregate of the unpaid balance. Interest income on such loans is recorded as earned in net investment income using the contractually agreed-upon interest rate. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand, amounts due from banks and highly liquid investments that are both readily convertible into known amounts of cash and have maturities of three months or less at the time of acquisition such that they present insignificant risk of changes in value due to changing interest rates and lack of credit exposure. The carrying value of these securities approximates their fair value. |
Reinsurance | Reinsurance The Company enters into reinsurance agreements to diversify risk and limit its overall financial exposure. Although these reinsurance agreements contractually obligate the reinsurers to reimburse the Company, they do not discharge the Company from its primary liability and obligation to policyholders. Risk transfer criteria are reviewed for each reinsurance contract to determine if the contract will be accounted for as reinsurance or under the deposit method of accounting. The Company estimates the amount of uncollectible reinsurance recoverables based on periodic evaluations of balances due from reinsurers, reinsurer solvency, and management’s experience. Changes in the estimated amounts for uncollectible reinsurance recoverables are presented as a component of life, annuity, and health claim benefits in the Consolidated Statements of Operations. Amounts owed by reinsurers are considered past due based on the terms of the reinsurance contract. Reinsurance recoverables and any related allowance are written off after collection efforts have been exhausted or a negotiated settlement is reached with the reinsurer. |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs (DAC) Incremental direct costs of acquiring new business, principally commissions on sales, underwriting, policy issuance and processing, and medical inspection costs, are deferred for successfully placed contracts. DAC for the life insurance business is amortized over the life of the business; for traditional life products, the DAC is amortized as a level percentage of gross premiums; for universal life (UL) products, the DAC is amortized as a level percentage based on estimated gross profits (EGPs). DAC for the assumed block of deferred annuities is amortized over 20 years . For UL and the deferred annuities, amortization amounts are adjusted when revisions are made to the estimates of current or future EGPs. DAC balances are evaluated periodically to assess whether there are sufficient gross margins or gross profits to recover the remaining unamortized balances. |
Intangible Assets | Intangible Assets Intangible assets with definite lives are amortized over their expected useful lives using a method that best reflects the pattern in which the economic benefits of the intangible assets will be consumed or on a straight line basis ranging from four to ten years . Interim impairment testing may be performed when events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable. Intangible assets are tested for impairment based on undiscounted cash flows, which requires the use of estimates and judgment, and, if impaired, are written down to fair value based on discounted cash flows. For years ended December 31, 2021 and December 31, 2020 , we have not recorded an impairment of intangible assets. |
Future Policy Benefits, Policyholder Account Balances, and Other Policyholder Liabilities | Future Policy Benefits, Policyholder Account Balances, and Other Policyholder Liabilities Future policy benefits represent the reserve for traditional life insurance policies and annuities in payout status. Reserves for traditional life insurance policies are computed using the net level premium method on the basis of actuarial assumptions at the issue date of the contracts, including mortality, policy lapse assumptions, and rates of interest. The reserves for annuities in payout status (structured settlements) represent the present value of assumed future payments based on contract terms for the future payouts and can include assumptions for mortality. To the extent that unrealized gains on available-for-sale fixed maturity securities would result in a premium deficiency had those gains actually been realized, an increase is recorded net of tax as a (decrease) increase of unrealized capital gains included in AOCI. For years ended December 31, 2021 and 2020 , this adjustment, net of tax, was ($ 1,269 ) and $ 2,787 , respectively. A premium deficiency exists if the discounted present value of future gross premiums is not sufficient to cover anticipated future cash outflows. To assess the adequacy of our benefit reserves, we annually perform premium deficiency testing for each of our lines of business using best estimate assumptions as of the date of the test without provision for adverse deviation. If benefit reserves minus the DAC asset are less than the present value of future cash flows on the line of business, then first the DAC asset will be reduced. If reducing the DAC asset down to zero is still not sufficient to eliminate the premium deficiency, then benefit reserves will be increased. Recognizing a premium deficiency will reduce our reported net income or increase our reported loss, for the period. In connection with our premium deficiency testing on our most significant business lines, we performed sensitivity analyses on our Core Life, Non-Core Life, Closed Block, and annuities and assumed life business lines to capture the effect that certain key assumptions have on expected future cash flows, and the impact of those assumptions on the adequacy of DAC balances and GAAP benefit reserves. The sensitivity tests are performed independently, without consideration for any correlation among the key assumptions. Policyholder account balances include the liability for assumed deferred annuity and universal life contracts and the liabilities for policyholder dividends and death benefits on life insurance contracts that have been left on deposit with the Company. These liabilities represent the account value of the policyholder as there are no other benefits due. This liability is equal to the balance that accrues to the benefit of the policyholder, which includes the accumulation of deposits, plus interest credited, less withdrawals. Other policyholder liabilities include the amounts estimated for claims that have been reported but not settled and estimates for claims incurred but not reported. |
Long and Short-Term Debt | Long and Short-Term Debt Debt represents upfront commission payments received on certain term life products that are to be repaid as level commissions over the life of the underlying policies issued. The debt liability is accounted for under the interest method, which requires the imputation of interest resulting in the recognition of a discount as the difference between the cash payments received and the level commissions expected to be repaid based on current policy lapse assumptions. Under the interest method, the discount is amortized as interest expense over the period that level commissions are repaid resulting in a constant rate of interest when applied to the amount outstanding at the beginning of any given period. The amount to be repaid as level commissions are dependent on the level of expected policy lapses assumed for the underlying commissions financed; therefore, the debt liability may be adjusted in periods where revisions to policy lapse assumptions are made, which may result in the recognition of a gain or loss. |
Income Taxes | Income Taxes The current receivable for federal income tax is recognized based on the estimated amounts to be reflected on the filed tax returns. Federal income tax expense or benefit is recognized based on amounts reported in the consolidated financial statements and using the applicable current federal income tax rate. Income taxes are allocated to operations and other comprehensive (loss) income based on the source of the taxable event. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effects of changes in tax rates or laws are recognized in the period that includes the enactment date. If necessary, a valuation allowance is established to reduce the carrying amount of deferred tax assets to amounts that are more likely than not to be realized. See “Note 4 – Income Taxes” for further detail. |
Revenue Recognition | Revenue Recognition Life and health insurance contract premiums are recognized as income when due from policyholders. Deposits on deposit-type contracts are entered directly as a liability when cash is received. Commission revenue from the sale of insurance products by Efinancial is recognized once the insurance policy is issued by the insurance company and accepted by the customer (policy placement) and recorded as commission receivable, net of any advances received. Provision is made for commission revenue that, based on experience, will ultimately not be earned due to the customer discontinuing the underlying insurance policy. Commission revenue that Efinancial earns from the sale of insurance products where Efinancial acts as the general agent and utilizes a sub-agent to sell the policy (wholesale distribution) is recorded net of related commission expense paid to the writing agency. Efinancial commissions earned for the sale of Fidelity Life products where Efinancial is acting in the capacity as a sub-agent are not eliminated, primarily related to the agreement with AmeriLife in which services under the agency and sub-agency agreements are distinct from one another. Our primary revenue-generating arrangements that are within the scope of Accounting Standards Codification (ASC) 606 are our brokerage arrangements with third-parties. In these arrangements, our customer is the insurance carrier and we have a single performance obligation to place a policy for the insurance carrier. Our performance obligation is satisfied at the point in time when the policy is placed, which is the point in time when the customer obtains control over the policy and has the right to use and obtain the benefits from the policy. In these arrangements, depending on the number of years the policy is in force, a significant majority of our consideration is received in the first year. In addition to the first-year consideration, depending on the specific carrier and product involved, we may also be entitled to renewal commissions over the period of time the policy remains in force. Our consideration is variable based on the amount of time we estimate a policy will remain in force. We estimate the amount of variable consideration that we expect to receive based on our historical experience or carrier experience to the extent available, industry data and our expectations as to future persistency rates. Additionally, we consider application of the constraint and only recognize the amount of variable consideration that we believe is probable to be received and will not be subject to a significant revenue reversal. We monitor and update this estimate at each reporting date. Because we recognize revenue prior to being entitled to the payment for these renewal commissions, we recognize a contract asset; however, we have determined that the amount of our contract asset is immaterial. Additionally, because our brokerage arrangements consist of a single performance obligation that is satisfied at the point in time that policies are placed, we do not have any remaining performance obligations in our contracts with customers. We have evaluated our arrangements and concluded that none of our brokerage arrangements include a significant financing component, and therefore do not adjust revenue for the time value of money. We have determined that any contract costs (e.g., costs to obtain or costs to fulfill) related to our brokerage arrangements are immaterial. Our Chief Operating Decision Maker makes decisions by analyzing our segment information, which is included in Note 14. For internal decision-making purposes and external reporting purposes, we do not disaggregate revenue beyond our segment information and believe that any further disaggregation is immaterial. Insurance lead sales include the sale of potential life insurance customer leads to outside parties including agencies and unaffiliated insurers. Sales of leads are recorded at the time the lead data is sold to the customer and recorded as a receivable, net of allowance for returns. |
Net Investment Income and Net Gains (Losses) on Investments | Net Investment Income and Net Gains (Losses) on Investments Net investment income consists primarily of interest and dividends. Interest is recognized on an accrual basis and reflects amortization of premiums and accretion of discounts on an effective yield basis, based on expected cash flows. Dividends are recorded on the ex-dividend date. Net gains (losses) on investments, resulting from sales or calls of investments and representing the difference between the net proceeds and the carrying value of investments sold, are determined on a specific identification basis. Net gains (losses) on investments are also recognized when declines in the fair value of invested assets are considered to be other-than-temporary. Changes in value reported for investments accounted for using the equity method of accounting are classified within net gains (losses) on investments. |
Policyholder Dividend Obligations | Policyholder Dividend Obligations Dividends payable to policyholders are determined annually based on the experience of the Closed Block policies and are payable only upon declaration by the Board of Directors of Fidelity Life. At December 31, 2021 and 2020 , a provision has been made for dividends expected to be paid in the following calendar year of $ 1,139 and $ 1,180 , respectively. The provision is recorded in other policyholder liabilities in the consolidated balance sheets. The Company also establishes a policyholder dividend obligation when cumulative actual earnings of the Closed Block are in excess of the cumulative expected earnings that were determined at the inception of the Closed Block. See “Note 8 – Closed Block” for further discussion. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements Pursuant to the Jumpstart Our Business Startups Act (“JOBS Act”), an emerging growth company is provided the option to adopt new or revised accounting standards that may be issued by the Financial Accounting Standards Board (FASB) or the SEC either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to use the extended transition period for complying with any new or revised financial accounting standards. Accordingly, the information contained herein may be different than the information you receive from other public companies. We also intend to continue to take advantage of some of the reduced regulatory and reporting requirements of emerging growth companies pursuant to the JOBS Act so long as we qualify as an emerging growth company, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Accounting for Leases . The guidance is effective for interim and annual periods beginning on or after January 1, 2022. The new guidance requires a lessee to recognize “right-of-use” assets and liabilities for leases with lease terms of more than 12 months including those historically accounted for as operating leases. The effect of the new guidance will be an increase for the present value of remaining lease payments for leases in place at the adoption date in assets and liabilities. This is not expected to have a material impact to the Company’s results of operations or financial position, based on the magnitude of our current two operating leases. In June 2016, the FASB issued new guidance on measurement of credit losses on financial instruments, ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments) . The guidance is effective for interim and annual periods beginning on or after January 1, 2023. For substantially all financial assets, the ASU should be applied on a modified retrospective basis through a cumulative effect adjustment to Retained earnings. For previously impaired debt securities and certain debt securities acquired with evidence of credit quality deterioration since origination, the new guidance should be applied prospectively. This ASU replaces the incurred loss impairment methodology with one that reflects expected credit losses. The measurement of expected credit losses should be based on historical loss information, current conditions, and reasonable and supportable forecasts. The new guidance requires that OTTI on a debt security will be recognized as an allowance going forward, such that improvements in expected future cash flows after an impairment will no longer be reflected as a prospective yield adjustment through net investment income, but rather a reversal of the previous impairment and recognized through net gains (losses) on investments. The guidance also requires enhanced disclosures. The Company has assessed the asset classes impacted by the new guidance and is currently assessing the accounting and reporting system changes that will be required to comply with the new guidance. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Insurance Contracts (Topic 944). The FASB issue amends the accounting model under GAAP for certain long-duration insurance contracts and requires insurers to provide additional disclosures in annual and interim reporting periods. The amendments are aimed at improving the following four key areas of financial reporting, measurement of the liability for future policy benefits related to nonparticipating traditional and limited-payment contracts, measurement and presentation of market risk benefits, amortization of deferred acquisition costs (DAC), and presentation and disclosures. The Company expects the impact to be material and is in the process of quantifying the impact of this standard. In November 2020, the FASB issued ASU 2020-11— Financial Services—Insurance (Topic 944): Effective Date and Early Application . This ASU was issued to provide additional time for implementation of ASU 2018-12 by deferring the effective date by one year. For smaller reporting companies, this update is effective for fiscal years beginning after January 1, 2025 and interim periods within fiscal years beginning after January 1, 2026. In August 2018, the FASB issued Accounting Standards Update No. 2018-15, “Intangibles-Goodwill and Other-Internal Use Software (Subtopic 350-40) : Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” or ASU 2018-15 Subtopic 350-40, which aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use-software. The standard is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2018-15 Subtopic 350-40 effective January 1, 2021 . The adoption did no t have a material impact on the consolidated financial statements and disclosures. In August 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs , which clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs , paragraph 310-20-35-33 for each reporting period. For public business entities, the amendments in this update are effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments in this update are effective for fiscal years beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022. T he amendments in this ASU are to be applied on a prospective basis, as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the impact of this standard to have a material impact on the consolidated financial statements and disclosures . |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fixed Maturities | The amortized cost, gross unrealized gains, gross unrealized losses, fair value, and OTTI loss included in AOCI of fixed maturities are as follows: December 31, 2021 Fixed maturities Amortized Unrealized Unrealized Fair OTTI U.S. government and agencies $ 9,825 $ 2,076 $ — $ 11,901 $ — U.S. agency mortgage-backed 12,889 795 ( 5 ) 13,679 — State and political subdivisions 58,170 2,696 ( 396 ) 60,470 — Corporate and miscellaneous 164,823 20,023 ( 348 ) 184,498 — Foreign government 378 36 — 414 — Residential mortgage-backed 5,880 222 ( 33 ) 6,069 ( 412 ) Commercial mortgage-backed 20,003 848 ( 36 ) 20,815 — Asset-backed 54,623 330 ( 416 ) 54,537 — Total fixed maturities $ 326,591 $ 27,026 $ ( 1,234 ) $ 352,383 $ ( 412 ) December 31, 2020 Fixed maturities Amortized Unrealized Unrealized Fair OTTI U.S. government and agencies $ 11,386 $ 2,886 $ — $ 14,272 $ — U.S. agency mortgage-backed 21,015 1,461 — 22,476 — State and political subdivisions 57,646 3,798 ( 15 ) 61,429 — Corporate and miscellaneous 143,242 26,069 ( 258 ) 169,053 — Foreign government 131 45 — 176 — Residential mortgage-backed 6,060 388 ( 27 ) 6,421 ( 151 ) Commercial mortgage-backed 18,567 1,503 ( 53 ) 20,017 — Asset-backed 70,216 605 ( 814 ) 70,007 ( 260 ) Total fixed maturities $ 328,263 $ 36,755 $ ( 1,167 ) $ 363,851 $ ( 411 ) |
Schedule of Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturity | The amortized cost and fair value of fixed maturities by contractual maturity, are presented in the following table: December 31, 2021 Amortized Fair Due in one year or less $ 1,753 $ 1,771 Due after one year through five years 36,245 38,497 Due after five years through ten years 67,802 71,435 Due after ten years 127,396 145,580 Securities not due at a single maturity date — primarily mortgage and asset-backed 93,395 95,100 Total fixed maturities $ 326,591 $ 352,383 |
Schedule of Mortgage Loan Holdings Diversified by Geography and Property | Mortgage loan holdings are diversified by geography and property type as follows: December 31, 2021 December 31, 2020 Gross Carrying % of Total Gross Carrying % of Total Property Type: Retail $ 15,257 32.1 % $ 16,252 32.1 % Office 11,627 24.4 % 12,493 24.7 % Industrial 8,234 17.3 % 8,095 16.0 % Mixed use 5,327 11.2 % 6,014 11.9 % Apartments 2,880 6.1 % 3,439 6.8 % Medical office 3,078 6.5 % 3,119 6.2 % Other 1,153 2.4 % 1,156 2.3 % Gross carrying value of mortgage loans 47,556 100.0 % 50,568 100.0 % Valuation allowance ( 69 ) ( 141 ) Net carrying value of mortgage loans $ 47,487 $ 50,427 December 31, 2021 December 31, 2020 Gross Carrying % of Total Gross Carrying % of Total U.S. Region: West South Central $ 12,017 25.3 % $ 11,780 23.3 % East North Central 12,439 26.3 % 12,105 23.9 % South Atlantic 9,337 19.6 % 10,908 21.6 % West North Central 3,065 6.4 % 3,981 7.9 % Mountain 3,393 7.1 % 4,404 8.7 % Middle Atlantic 2,392 5.0 % 2,824 5.6 % East South Central 3,445 7.2 % 3,060 6.1 % New England 82 0.2 % 91 0.2 % Pacific 1,386 2.9 % 1,415 2.8 % Gross carrying value of mortgage loans 47,556 100.0 % 50,568 100.0 % Valuation allowance ( 69 ) ( 141 ) Net carrying value of mortgage loans $ 47,487 $ 50,427 |
Schedule of Changes in Valuation Allowance for Commercial Mortgage Loans | The changes in the valuation allowance for commercial mortgage loans were as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Beginning balance $ 141 $ 53 Net (decrease) increase in valuation allowance ( 72 ) 88 Ending balance $ 69 $ 141 |
Schedule of Net Investment Income | The sources of net investment income are as follows: Year Ended December 31, 2021 2020 Income from: Fixed maturities $ 12,738 $ 12,163 Policyholder loans 305 337 Mortgage loans 2,824 2,498 Short-term investments — 58 Cash, cash equivalents and restricted cash 5 234 Dividends on equity securities 260 378 Gross investment income 16,132 15,668 Investment expenses ( 1,566 ) ( 1,547 ) Net investment income $ 14,566 $ 14,121 |
Schedule of Net Investment Gains (Losses) | The sources of net investment gains (losses) are as follows: Year Ended December 31, 2021 2020 Investment gains (losses) from sales: Fixed maturities $ 801 $ 490 Equity securities ( 1,644 ) ( 312 ) Other Invested Assets 1,175 158 Mortgage loans 116 18 Cash and cash equivalents — ( 8 ) Investment expenses ( 24 ) ( 24 ) Gains and losses from sales 424 322 Valuation change of equity investments - appreciation (decline): 2,682 ( 1,564 ) Total net gains (losses) on investments $ 3,106 $ ( 1,242 ) |
Roll-forward of Cumulative Credit Losses on Fixed Maturity Securities | A roll-forward of the cumulative credit losses on fixed maturity securities is as follows: December 31, December 31, 2021 2020 Beginning balance of credit losses on fixed maturities $ 833 $ 869 Additional credit losses for which an OTTI was not previously recognized 4 68 Reduction of credit losses related to securities sold during period — ( 104 ) Ending balance of credit losses on fixed maturities $ 837 $ 833 |
Fair Value and Gross Unrealized Losses for Fixed Maturities Available-for-sale in Continuous Gross Unrealized Loss Position | The Company’s fair value and gross unrealized losses for fixed maturities, aggregated by investment category and length of time that individual securities have been in a continuous gross unrealized loss position are as follows: 12 months or less Longer than 12 months Total December 31, 2021 Estimated Gross Estimated Gross Estimated Gross Fixed maturities U.S. agency mortgage-backed $ 294 $ ( 5 ) $ 11 $ — $ 305 $ ( 5 ) State and political subdivisions 20,439 ( 377 ) 231 ( 19 ) 20,670 ( 396 ) Corporate and miscellaneous 11,913 ( 312 ) 727 ( 36 ) 12,640 ( 348 ) Foreign government 247 — — — 247 — Residential mortgage-backed 1,983 ( 13 ) 427 ( 20 ) 2,410 ( 33 ) Commercial mortgage-backed 3,870 ( 36 ) — — 3,870 ( 36 ) Asset-backed 29,487 ( 315 ) 8,798 ( 101 ) 38,285 ( 416 ) Total fixed maturities $ 68,233 $ ( 1,058 ) $ 10,194 $ ( 176 ) $ 78,427 $ ( 1,234 ) 12 months or less Longer than 12 months Total December 31, 2020 Estimated Gross Estimated Gross Estimated Gross Fixed maturities U.S. agency mortgage-backed $ 17 $ — $ 12 $ — $ 29 $ — State and political subdivisions 2,320 ( 15 ) — — 2,320 ( 15 ) Corporate and miscellaneous 5,177 ( 256 ) 254 ( 2 ) 5,431 ( 258 ) Residential mortgage-backed 480 ( 10 ) 140 ( 17 ) 620 ( 27 ) Commercial mortgage-backed 1,028 ( 46 ) 73 ( 7 ) 1,101 ( 53 ) Asset-backed 34,859 ( 607 ) 11,247 ( 207 ) 46,106 ( 814 ) Total fixed maturities $ 43,881 $ ( 934 ) $ 11,726 $ ( 233 ) $ 55,607 $ ( 1,167 ) |
Schedule of Number of Fixed Maturities in Unrealized Loss Position and Percentage Investment Grade | Information and concentrations related to fixed maturities in an unrealized loss position are included below. The tables below include the number of fixed maturities in an unrealized loss position for greater than and less than 12 months and the percentage that were investment grade at December 31, 2021. Unrealized Losses 12 months or less Number of Securities Total Impairment is Impairment Impairment Percent Fixed maturities U.S. agency mortgage-backed 3 3 — — 100 % State and political subdivisions 55 55 — — 98 % Corporate and miscellaneous 56 54 — 2 64 % Foreign Government 1 1 100 % Residential mortgage-backed 9 9 — — 100 % Commercial mortgage-backed 15 15 — — 87 % Asset-backed 77 76 1 — 86 % Total fixed maturities 216 213 1 2 Unrealized Losses greater than 12 months Number of Securities Total Impairment is Impairment Impairment Percent Fixed maturities U.S. agency mortgage-backed 1 1 — — 100 % State and political subdivisions 1 1 — — 100 % Corporate and miscellaneous 6 6 — — 100 % Residential mortgage-backed 5 4 1 — 40 % Asset-backed 13 11 1 1 85 % Total fixed maturities 26 23 2 1 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |
Summary of Deferred Policy Acquisition Costs and Changes | The deferred policy acquisition costs and changes are as follows: December 31, December 31, 2021 2020 Beginning balance $ 87,212 $ 85,776 Acquisition costs deferred 26,728 15,397 Amortization ( 18,225 ) ( 13,961 ) Ending balance $ 95,715 $ 87,212 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes Based on Difference Between Expected Tax Provision, Applying Statutory Tax Rate to Actual Tax Provision | Provided below are income taxes based on the difference between the expected tax provision, applying the statutory tax rate ( 21 %) to the actual tax provision. Year Ended December 31, 2021 2020 (Loss) income before income taxes $ ( 17,035 ) $ ( 27,303 ) Statutory rate 21 % 21 % Income tax (benefit) expense at statutory rate ( 3,578 ) ( 5,734 ) Effect of: Return to provision adjustments ( 186 ) 2,409 Increase (decrease) in the valuation allowance related to return to provision adjustments 598 ( 2,308 ) Increase in the valuation allowance - current year 2,796 3,317 Total increase in the valuation allowance 3,394 1,009 Other ( 8 ) 41 Income tax (benefit) expense $ ( 378 ) $ ( 2,275 ) |
Components of Income Tax (Benefit) Expense | The components of income tax (benefit) expense are as follows: Year Ended December 31, 2021 2020 Income tax applicable to: Current $ ( 112 ) $ 1,300 Deferred (net of increase in allowance: 2021 - $ 3,394 , 2020 - $ 1,009 ) ( 266 ) ( 3,575 ) Ending balance $ ( 378 ) $ ( 2,275 ) |
Components of Net Deferred Income Tax Assets | The components of the net deferred income tax assets are as follows: Year Ended December 31, 2021 2020 Deferred tax assets: Net operating loss carryforward $ 21,076 $ 18,131 Reinsurance assets 48,559 48,898 Policyholder dividend obligation 2,660 2,789 Policyholder dividend 239 248 Commission receivable, net 7,255 7,879 Incentive compensation 176 211 Other 1,616 638 Total deferred tax assets 81,581 78,794 Valuation allowance ( 20,059 ) ( 16,665 ) Total deferred income tax assets 61,522 62,129 Deferred tax liabilities: Life insurance reserves 29,014 30,588 Deferred policy acquisition cost 9,643 9,183 Net unrealized investment gains 5,416 6,910 Intangible assets 344 344 Basis difference – investments 392 358 Fixed assets 3,519 3,451 Other 494 369 Total deferred tax liabilities 48,822 51,203 Deferred income tax assets, net $ 12,700 $ 10,926 |
Summary of Net Operating Loss Carryforwards | The Company’s net operating loss carryforwards are as follows: Life Sub- Non-Life Total Year net operating loss expires 2025 $ — $ 1,229 $ 1,229 2026 — 5,249 5,249 2027 — 5,057 5,057 2028 — 3,061 3,061 2029 — 1,708 1,708 2030 — 8,121 8,121 2031 — 5,361 5,361 2032 — 2,539 2,539 2033 — 1,099 1,099 2034 — 13,527 13,527 2035 — 5,311 5,311 2036 — 5,267 5,267 2037 — 4,266 4,266 No expiration 1,669 36,897 38,566 $ 1,669 $ 98,692 $ 100,361 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Schedule of Reinsurance Recoverables | Reinsurance recoverables are as follows: December 31, December 31, 2021 2020 Ceded future policy benefits $ 146,087 $ 128,456 Claims and other amounts recoverables 38,044 29,559 Ending balance $ 184,131 $ 158,015 |
Reconciliation of Direct Premiums to Net Premiums | The reconciliation of direct premiums to net premiums is as follows: Year Ended December 31, 2021 2020 Direct premiums $ 169,958 $ 146,293 Assumed premiums 41,187 35,779 Ceded premiums ( 103,187 ) ( 74,030 ) Net insurance premiums $ 107,958 $ 108,042 |
Closed Block (Tables)
Closed Block (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Closed Block Disclosure [Abstract] | |
Schedule of Impacts on Comprehensive (Loss) Income from Recognizing Policyholder Dividend Obligations | The impacts on the Company’s comprehensive (loss) income from recognizing policyholder dividend obligations are as follows: December 31, December 31, 2021 2020 Actual cumulative (loss) income earnings over expected cumulative earnings $ ( 9,680 ) $ ( 9,284 ) Income tax (benefit) expense ( 2,033 ) ( 1,950 ) Net (loss) income impact ( 7,647 ) ( 7,334 ) Accumulated net unrealized investment (losses) gains ( 2,989 ) ( 3,998 ) Income tax (benefit) expense ( 628 ) ( 839 ) Other comprehensive (loss) income impact ( 2,361 ) ( 3,159 ) Comprehensive (loss) income impact $ ( 10,008 ) $ ( 10,493 ) |
Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block | Information regarding the Closed Block liabilities (assets) designated to the Closed Block is as follows: December 31, December 31, Closed Block Liabilities 2021 2020 Future policy benefits and claims $ 32,005 $ 38,110 Policyholder account balances 6,957 7,272 Other policyholder liabilities 5,017 6,360 Policyholder dividend obligations 12,669 13,282 Other liabilities (assets) ( 634 ) ( 619 ) Total Closed Block liabilities 56,014 64,405 Assets Designated to the Closed Block Investments: Fixed maturities - available-for-sale (amortized cost $ 38,314 and 37,364 , respectively) 43,162 43,738 Policyholder loans 1,210 1,245 Total investments 44,372 44,983 Cash, cash equivalents and restricted cash 1,630 2,614 Premiums due and uncollected 2,089 1,029 Accrued investment income 420 427 Reinsurance recoverables 15,567 22,689 Deferred income tax assets, net 3,139 3,130 Total assets designated to the Closed Block 67,217 74,872 Excess of Closed Block assets over liabilities 11,203 10,467 Amounts included in accumulated other comprehensive income: Unrealized investment gains (losses), net of income tax 3,830 5,035 Allocated to policyholder dividend obligations, net of income tax ( 2,361 ) ( 3,159 ) Total amounts included in accumulated other comprehensive income 1,469 1,876 Maximum future earnings and accumulated other comprehensive income to 10,463 and $ 10,170 , respectively) $ ( 9,734 ) $ ( 8,591 ) |
Schedule of Information Regarding Policyholder Dividend Obligations | Information regarding the policyholder dividend obligations is as follows: December 31, December 31, Policyholder Dividend Obligations 2021 2020 Beginning balance $ 13,282 $ 11,453 Impact from earnings allocable to policyholder dividend obligations 396 235 Change in net unrealized investment gains (losses) allocated to policyholder ( 1,009 ) 1,594 Ending balance $ 12,669 $ 13,282 |
Schedule of Information Regarding Closed Block Revenues and Expenses | Information regarding the Closed Block revenues and expenses is as follows: Year Ended December 31, 2021 2020 Revenues Net insurance premiums $ 3,039 $ 7,792 Net investment income 1,488 1,630 Realized gains 29 38 Total revenues 4,556 9,460 Benefits and expenses Life and annuity benefits - including policyholder dividends 1,098 and $ 1,161 respectively 3,810 7,268 Interest credited to policyholder account balances 173 184 Operating costs and expenses ( 875 ) 2,986 Total expenses 3,108 10,438 Revenues, net of expenses before provision for income tax 1,448 ( 978 ) Income tax expense (benefit) 304 ( 205 ) Revenues, net of expenses and provision for income tax $ 1,144 $ ( 773 ) |
Schedule of Amortized Cost and Fair Value of Closed Block Fixed Maturity Securities Portfolio by Contractual Maturity | The following table presents the amortized cost and fair value of the Closed Block fixed maturity securities portfolio by contractual maturity at December 31, 2021. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties: Amortized Cost Fair Value Due in one year or less $ 501 $ 506 Due after one year through five years 8,687 9,179 Due after five years through ten years 3,619 4,527 Due after ten years 22,687 26,140 Securities not due at a single maturity date — primarily mortgage and asset- 2,820 2,810 Total fixed maturities $ 38,314 $ 43,162 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fidelity Life | |
Statutory Accounting Practices [Line Items] | |
Schedule of Statutory Capital and Surplus and Net Income | The statutory capital and surplus and net income for Fidelity Life, as determined in accordance with statutory accounting practices prescribed or permitted by the IDOI, at December 31, 2021 and 2020, and for the years ended December 31, 2021 and 2020, are as follows: At December 31, 2021 2020 Statutory capital and surplus Fidelity Life $ 98,211 $ 112,316 Year Ended December 31, 2021 2020 Statutory net (loss) income Fidelity Life $ ( 8,692 ) $ 6,206 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Minimum Future Operating Lease Payments | Minimum future operating lease payments, including lease payments for real estate, vehicles, computers and office equipment at December 31, 2021, are as follows: Year 2022 $ 1,374 2023 746 2024 362 2025 48 Total $ 2,530 |
Assets and Liabilities Measur_2
Assets and Liabilities Measured at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Carried at Fair Value on Recurring and Non-recurring Basis | The Company’s assets and liabilities that are carried at fair value on a recurring and non-recurring basis, by fair value hierarchy level, are as follows: December 31, 2021 Level 1 Level 2 Level 3 Total Fair Value Recurring fair value measurements Financial instruments recorded as assets: Fixed maturities U.S. government and agencies $ — $ 11,901 $ — $ 11,901 U.S. agency mortgage-backed — 13,679 — 13,679 State and political subdivisions — 59,972 498 60,470 Corporate and miscellaneous 2,821 156,937 24,740 184,498 Foreign government — 414 — 414 Residential mortgage-backed — 6,069 — 6,069 Commercial mortgage-backed — 20,815 — 20,815 Asset-backed — 51,699 2,838 54,537 Total fixed maturities 2,821 321,486 28,076 352,383 Equity securities — — — — Total recurring assets $ 2,821 $ 321,486 $ 28,076 $ 352,383 December 31, 2020 Level 1 Level 2 Level 3 Total Fair Value Recurring fair value measurements Financial instruments recorded as assets: Fixed maturities U.S. government and agencies $ — $ 14,272 $ — $ 14,272 U.S. agency mortgage-backed — 22,476 — 22,476 State and political subdivisions — 60,908 521 61,429 Corporate and miscellaneous 2,685 157,935 8,433 169,053 Foreign government — 176 — 176 Residential mortgage-backed — 6,421 — 6,421 Commercial mortgage-backed — 20,017 — 20,017 Asset-backed — 68,706 1,301 70,007 Total fixed maturities 2,685 350,911 10,255 363,851 Equity securities 3,833 15 — 3,848 Total recurring assets $ 6,518 $ 350,926 $ 10,255 $ 367,699 |
Summary of Changes in Fair Value of Level 3 Assets Held at Fair Value on Recurring Basis | A summary of changes in fair value of Level 3 assets held at fair value on a recurring basis is as follows: Total gains (losses) included in: Balance at January 1, 2021 Net Income OCI Purchases Sales Settlements Net Balance at December 31, 2021 Financial Assets Fixed maturities State and political subdivision $ 521 $ — $ ( 23 ) $ — $ — $ — $ — $ 498 Corporate and miscellaneous 8,433 ( 39 ) — 18,873 — ( 14 ) ( 2,513 ) 24,740 Asset-backed 1,301 — ( 2 ) 1,290 — ( 251 ) 500 2,838 Total assets $ 10,255 $ ( 39 ) $ ( 25 ) $ 20,163 $ — $ ( 265 ) $ ( 2,013 ) $ 28,076 Total gains (losses) included in: Balance at January 1, 2020 Net Income OCI Purchases Sales Settlements Net Balance at December 31, 2020 Financial Assets Fixed maturities State and political subdivisions $ — $ — $ 21 $ 500 $ — $ — $ — $ 521 Corporate and miscellaneous — 42 120 8,271 — — — 8,433 Asset-backed 1,215 — ( 34 ) 292 — ( 172 ) — 1,301 Total assets $ 1,215 $ 42 $ 107 $ 9,063 $ — $ ( 172 ) $ — $ 10,255 |
Summary of Carrying Amount and Estimated Fair Values of Financial Instruments not Measured at Fair Value | The carrying amount and estimated fair values of the Company’s financial instruments that are not measured at fair value on the Consolidated Balance Sheets are as follows: Estimated Fair Value December 31, 2021 Carrying Value Level 1 Level 2 Level 3 Total Financial instruments recorded as assets: Mortgage loans $ 47,487 $ — $ — $ 43,047 $ 43,047 Policyholder loans $ 6,371 $ — $ — $ 8,280 $ 8,280 Financial instruments recorded as liabilities: Future policy benefits, excluding term life reserves $ 22,680 $ — $ — $ 19,733 $ 19,733 Long/short-term debt $ 26,378 $ — $ — $ 31,940 $ 31,940 Policyholder account balances $ 80,494 $ — $ — $ 86,198 $ 86,198 Estimated Fair Value December 31, 2020 Carrying Value Level 1 Level 2 Level 3 Total Financial instruments recorded as assets: Mortgage loans $ 50,427 $ — $ — $ 46,816 $ 46,816 Policyholder loans $ 6,414 $ — $ — $ 8,335 $ 8,335 Financial instruments recorded Future policy benefits, excluding term $ 24,495 $ — $ — $ 20,454 $ 20,454 Long/short-term debt $ 30,478 $ — $ — $ 37,033 $ 37,033 Policyholder account balances $ 83,869 $ — $ — $ 92,190 $ 92,190 |
Long and Short-Term Debt (Table
Long and Short-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term and Short Term Debt Pay Back | At December 31, 2021, the Company expects to pay back the aggregate amounts as presented in the following table. Due in one year or less $ 3,869 Due after one year through two years 3,567 Due after two years through three years 3,350 Due after three years through four years 3,182 Due after four years through five years 3,038 Due after five years 21,911 Less discount ( 12,539 ) Total long/short-term debt $ 26,378 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income, Net of Taxes | Changes in Accumulated Other Comprehensive (Loss) Income, net of taxes are as follows: Net Unrealized Net Unrealized Total Balance at January 1, 2021 $ 362 $ 16,239 $ 16,601 Other comprehensive income (loss) Unrealized holding gains from changes in the market value of securities — ( 9,796 ) ( 9,796 ) Impact on Policy benefit liabilities of changes in market value of securities — 1,606 1,606 Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations — 1,009 1,009 Income tax (expense) benefit — 1,509 1,509 Other comprehensive income (loss), net of tax — ( 5,672 ) ( 5,672 ) Balance at December 31, 2021 $ 362 $ 10,567 $ 10,929 Net Unrealized Net Unrealized Total Balance at January 1, 2020 $ 362 $ 8,395 $ 8,757 Other comprehensive income (loss) Unrealized holding gains from changes in the market value of securities — 15,054 15,054 Impact on Policy benefit liabilities of changes in market value of securities — ( 3,527 ) ( 3,527 ) Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations — ( 1,594 ) ( 1,594 ) Income tax benefit (expense) — ( 2,089 ) ( 2,089 ) Other comprehensive income (loss), net of tax — 7,844 7,844 Balance at December 31, 2020 $ 362 $ 16,239 $ 16,601 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The segment results are as follows: Year Ended December 31, 2021 Year Ended December 31, 2020 Insurance Agency Corporate & Other Total Insurance Agency Corporate & Other Total Net insurance premiums $ 107,958 $ — $ — $ 107,958 $ 108,042 $ — $ — $ 108,042 Net investment income 13,973 — 593 14,566 13,925 — 196 14,121 Net gains (losses) on investments 2,352 — 754 3,106 ( 1,370 ) — 128 ( 1,242 ) Other-than-temporary-impairments ( 4 ) — — ( 4 ) ( 68 ) — — ( 68 ) Earned commissions — 46,455 ( 2,062 ) 44,393 — 43,425 ( 21,614 ) 21,811 Other income 247 6,313 — 6,560 209 4,958 — 5,167 Total revenues 124,526 52,768 ( 715 ) 176,579 120,738 48,383 ( 21,290 ) 147,831 Life, annuity, and health claim benefits 80,677 — — 80,677 80,810 — — 80,810 Operating costs and expenses 25,688 56,739 12,285 94,712 26,589 49,249 4,525 80,363 Amortization of deferred policy acquisition 18,225 — — 18,225 13,961 — — 13,961 Total benefits and expenses 124,590 56,739 12,285 193,614 121,360 49,249 4,525 175,134 (Loss) income before income tax $ ( 64 ) $ ( 3,971 ) $ ( 13,000 ) $ ( 17,035 ) $ ( 622 ) $ ( 866 ) $ ( 25,815 ) $ ( 27,303 ) December 31, 2021 December 31, 2020 Insurance Agency Corporate & Other Total Insurance Agency Corporate & Other Total Investments and cash $ 419,953 $ 425 $ 10,402 $ 430,780 $ 436,757 $ 3,469 $ 20,829 $ 461,055 Commissions and agent balances 11,919 16,770 — 28,689 ( 12,231 ) 31,651 106 19,526 Deferred policy acquisition costs 95,715 — — 95,715 87,212 — — 87,212 Intangible assets — 1,635 — 1,635 — 1,635 — 1,635 Reinsurance recoverables 184,131 — — 184,131 158,015 — — 158,015 Deferred income tax (liabilities) ( 4,136 ) — 16,836 12,700 ( 7,351 ) — 18,277 10,926 Other 26,074 4,023 4,260 34,357 23,845 2,909 3,641 30,395 Total assets $ 733,656 $ 22,853 $ 31,498 $ 788,007 $ 686,247 $ 39,664 $ 42,853 $ 768,764 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 07, 2019 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Deferred annuities amortization period | 20 years | ||
(Decrease) Increase of unrealized capital gains included in AOCI, net of tax | $ (1,269) | $ 2,787 | |
Provision on dividend payable | $ 1,139 | $ 1,180 | |
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change an accounting principle accounting standards update immaterial effect | true | ||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201815Member | ||
Minimum | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Intangible assets, amortization period | 4 years | ||
Maximum | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Intangible assets, amortization period | 10 years | ||
Initial Public Offering | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Common stock issued | 14,875,000 | ||
Common stock per share | $ 10 |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | $ 326,591 | $ 328,263 |
Fixed maturities, Unrealized Gains | 27,026 | 36,755 |
Fixed maturities, Unrealized Losses | (1,234) | (1,167) |
Fixed maturities, Fair Value | 352,383 | 363,851 |
Fixed maturities, OTTI Losses | (412) | (411) |
U.S. Government and Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 9,825 | 11,386 |
Fixed maturities, Unrealized Gains | 2,076 | 2,886 |
Fixed maturities, Fair Value | 11,901 | 14,272 |
U.S. Agency Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 12,889 | 21,015 |
Fixed maturities, Unrealized Gains | 795 | 1,461 |
Fixed maturities, Unrealized Losses | (5) | |
Fixed maturities, Fair Value | 13,679 | 22,476 |
State and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 58,170 | 57,646 |
Fixed maturities, Unrealized Gains | 2,696 | 3,798 |
Fixed maturities, Unrealized Losses | (396) | (15) |
Fixed maturities, Fair Value | 60,470 | 61,429 |
Corporate and Miscellaneous | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 164,823 | 143,242 |
Fixed maturities, Unrealized Gains | 20,023 | 26,069 |
Fixed maturities, Unrealized Losses | (348) | (258) |
Fixed maturities, Fair Value | 184,498 | 169,053 |
Foreign Government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 378 | 131 |
Fixed maturities, Unrealized Gains | 36 | 45 |
Fixed maturities, Fair Value | 414 | 176 |
Residential Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 5,880 | 6,060 |
Fixed maturities, Unrealized Gains | 222 | 388 |
Fixed maturities, Unrealized Losses | (33) | (27) |
Fixed maturities, Fair Value | 6,069 | 6,421 |
Fixed maturities, OTTI Losses | (412) | (151) |
Commercial Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 20,003 | 18,567 |
Fixed maturities, Unrealized Gains | 848 | 1,503 |
Fixed maturities, Unrealized Losses | (36) | (53) |
Fixed maturities, Fair Value | 20,815 | 20,017 |
Asset-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities, Amortized Cost | 54,623 | 70,216 |
Fixed maturities, Unrealized Gains | 330 | 605 |
Fixed maturities, Unrealized Losses | (416) | (814) |
Fixed maturities, Fair Value | $ 54,537 | 70,007 |
Fixed maturities, OTTI Losses | $ (260) |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Fixed Maturities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 1,753 | |
Due after one year through five years, Amortized Cost | 36,245 | |
Due after five years through ten years, Amortized Cost | 67,802 | |
Due after ten years, Amortized Cost | 127,396 | |
Securities not due at a single maturity date — primarily mortgage and asset-backed securities, Amortized Cost | 93,395 | |
Fixed maturities, Amortized Cost | 326,591 | $ 328,263 |
Due in one year or less, Fair Value | 1,771 | |
Due after one year through five years, Fair Value | 38,497 | |
Due after five years through ten years, Fair Value | 71,435 | |
Due after ten years, Fair Value | 145,580 | |
Securities not due at a single maturity date — primarily mortgage and asset-backed securities, Fair Value | 95,100 | |
Total fixed maturities, Fair Value | $ 352,383 | $ 363,851 |
Investments - Additional Inform
Investments - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)LoanInvestment | Dec. 31, 2020USD ($)Loan | |
Schedule Of Investments [Line Items] | ||
Commitments to investment in available for sale securities | $ 657,000 | $ 3,027,000 |
Number of investment instruments | Investment | 34 | |
Number of mortgage loan | Loan | 300 | |
Loan average balance | $ 159,000 | |
Maximum exposure related to a single loan | 555,000 | |
New mortgage loans purchased | $ 3,456,000 | $ 1,847,000 |
Number of mortgage loans in restructured status | Loan | 2 | 6 |
Total carrying value of mortgage loans in restructured status | $ 685,000 | $ 1,408,000 |
Impairments for mortgage loans | 0 | 0 |
Mortgage loans, nonaccrual status | 0 | 0 |
Commitment to investment in mortgage loans | 4,485,000 | 1,299,000 |
Gross unrealized losses | $ 1,234,000 | $ 1,167,000 |
Minimum | ||
Schedule Of Investments [Line Items] | ||
Commercial mortgage loan ownership percent | 0.60% | |
Maximum | ||
Schedule Of Investments [Line Items] | ||
Commercial mortgage loan ownership percent | 30.00% | |
Mortgage Loans Receivable | Credit Concentration Risk | ||
Schedule Of Investments [Line Items] | ||
Fixed maturities portfolio | 100.00% | 100.00% |
Mortgage Loans Receivable | Credit Concentration Risk | Investment Grade Securities | ||
Schedule Of Investments [Line Items] | ||
Fixed maturities portfolio | 94.80% | 97.90% |
Fixed Maturities | ||
Schedule Of Investments [Line Items] | ||
Deposit with governmental authorities | $ 3,604,000 | $ 3,852,000 |
Investments - Schedule of Mortg
Investments - Schedule of Mortgage Loan Holdings Diversified by Geography and Property (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Investments [Line Items] | |||
Valuation allowance | $ (69) | $ (141) | $ (53) |
Net carrying value of mortgage loans | $ 47,487 | $ 50,427 | |
Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 100.00% | 100.00% | |
Mortgage Loans Receivable | Geographic Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 100.00% | 100.00% | |
Mortgage Loans Receivable | Geographic Concentration Risk | West South Central | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 25.30% | 23.30% | |
Mortgage Loans Receivable | Geographic Concentration Risk | East North Central | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 26.30% | 23.90% | |
Mortgage Loans Receivable | Geographic Concentration Risk | South Atlantic | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 19.60% | 21.60% | |
Mortgage Loans Receivable | Geographic Concentration Risk | West North Central | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 6.40% | 7.90% | |
Mortgage Loans Receivable | Geographic Concentration Risk | Mountain | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 7.10% | 8.70% | |
Mortgage Loans Receivable | Geographic Concentration Risk | Middle Atlantic | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 5.00% | 5.60% | |
Mortgage Loans Receivable | Geographic Concentration Risk | East South Central | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 7.20% | 6.10% | |
Mortgage Loans Receivable | Geographic Concentration Risk | New England | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 0.20% | 0.20% | |
Mortgage Loans Receivable | Geographic Concentration Risk | Pacific | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 2.90% | 2.80% | |
Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 47,556 | $ 50,568 | |
Valuation allowance | (69) | (141) | |
Net carrying value of mortgage loans | 47,487 | 50,427 | |
Mortgage Loans | West South Central | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 12,017 | 11,780 | |
Mortgage Loans | East North Central | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 12,439 | 12,105 | |
Mortgage Loans | South Atlantic | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 9,337 | 10,908 | |
Mortgage Loans | West North Central | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 3,065 | 3,981 | |
Mortgage Loans | Mountain | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 3,393 | 4,404 | |
Mortgage Loans | Middle Atlantic | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 2,392 | 2,824 | |
Mortgage Loans | East South Central | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 3,445 | 3,060 | |
Mortgage Loans | New England | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | 82 | 91 | |
Mortgage Loans | Pacific | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 1,386 | $ 1,415 | |
Retail | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 32.10% | 32.10% | |
Retail | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 15,257 | $ 16,252 | |
Office | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 24.40% | 24.70% | |
Office | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 11,627 | $ 12,493 | |
Industrial | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 17.30% | 16.00% | |
Industrial | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 8,234 | $ 8,095 | |
Mixed Use | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 11.20% | 11.90% | |
Mixed Use | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 5,327 | $ 6,014 | |
Apartments | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 6.10% | 6.80% | |
Apartments | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 2,880 | $ 3,439 | |
Medical Office | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 6.50% | 6.20% | |
Medical Office | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 3,078 | $ 3,119 | |
Other | Mortgage Loans Receivable | Credit Concentration Risk | |||
Schedule Of Investments [Line Items] | |||
Fixed maturities portfolio | 2.40% | 2.30% | |
Other | Mortgage Loans | |||
Schedule Of Investments [Line Items] | |||
Gross carrying value of mortgage loans | $ 1,153 | $ 1,156 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Valuation Allowance for Commercial Mortgage Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||
Beginning balance | $ 141 | $ 53 |
Net (decrease) increase in valuation allowance | (72) | 88 |
Ending balance | $ 69 | $ 141 |
Investments - Schedule of Net I
Investments - Schedule of Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Dividends on equity securities | $ 260 | $ 378 |
Gross investment income | 16,132 | 15,668 |
Investment expenses | (1,566) | (1,547) |
Net investment income | 14,566 | 14,121 |
Fixed Maturities | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Interest | 12,738 | 12,163 |
Policyholder Loans | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Interest | 305 | 337 |
Mortgage Loans | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Interest | 2,824 | 2,498 |
Short-term Investments | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Interest | 58 | |
Cash and Cash Equivalents and Restricted Cash | ||
Schedule Of Investment Income Reported Amounts By Category [Line Items] | ||
Interest | $ 5 | $ 234 |
Investments - Schedule of Net_2
Investments - Schedule of Net Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Investment expenses | $ (24) | $ (24) |
Gains and losses from sales | 424 | 322 |
Valuation change of equity investments - appreciation (decline): | 2,682 | (1,564) |
Total net gains (losses) on investments | 3,106 | (1,242) |
Fixed Maturities | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Gains and losses from sales | 801 | 490 |
Equity Securities | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Gains and losses from sales | (1,644) | (312) |
Other Invested Assets | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Gains and losses from sales | 1,175 | 158 |
Mortgage Loans | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Gains and losses from sales | $ 116 | 18 |
Cash and Cash Equivalents | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Gains and losses from sales | $ (8) |
Investments - Roll-forward of C
Investments - Roll-forward of Cumulative Credit Losses on Fixed Maturity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | ||
Beginning balance of credit losses on fixed maturities | $ 833 | $ 869 |
Additional credit losses for which an OTTI was not previously recognized | 4 | 68 |
Reduction of credit losses related to securities sold during period | (104) | |
Ending balance of credit losses on fixed maturities | $ 837 | $ 833 |
Investments - Fair Value and Gr
Investments - Fair Value and Gross Unrealized Losses for Fixed Maturities Available-for-sale in Continuous Gross Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | $ 68,233 | $ 43,881 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (1,058) | (934) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 10,194 | 11,726 |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (176) | (233) |
Fixed maturity securities, Total, Estimated Fair Value | 78,427 | 55,607 |
Fixed maturity securities, Total, Gross Unrealized Losses | (1,234) | (1,167) |
U.S. Agency Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 294 | 17 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (5) | |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 11 | 12 |
Fixed maturity securities, Total, Estimated Fair Value | 305 | 29 |
Fixed maturity securities, Total, Gross Unrealized Losses | (5) | |
State and Political Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 20,439 | 2,320 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (377) | (15) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 231 | |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (19) | |
Fixed maturity securities, Total, Estimated Fair Value | 20,670 | 2,320 |
Fixed maturity securities, Total, Gross Unrealized Losses | (396) | (15) |
Corporate and Miscellaneous | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 11,913 | 5,177 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (312) | (256) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 727 | 254 |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (36) | (2) |
Fixed maturity securities, Total, Estimated Fair Value | 12,640 | 5,431 |
Fixed maturity securities, Total, Gross Unrealized Losses | (348) | (258) |
Foreign Government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 247 | |
Fixed maturity securities, Total, Estimated Fair Value | 247 | |
Residential Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 1,983 | 480 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (13) | (10) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 427 | 140 |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (20) | (17) |
Fixed maturity securities, Total, Estimated Fair Value | 2,410 | 620 |
Fixed maturity securities, Total, Gross Unrealized Losses | (33) | (27) |
Commercial Mortgage-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 3,870 | 1,028 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (36) | (46) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 73 | |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (7) | |
Fixed maturity securities, Total, Estimated Fair Value | 3,870 | 1,101 |
Fixed maturity securities, Total, Gross Unrealized Losses | (36) | (53) |
Asset-backed | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturity securities, 12 months or less, Estimated Fair Value | 29,487 | 34,859 |
Fixed maturity securities, 12 months or less, Gross Unrealized Losses | (315) | (607) |
Fixed maturity securities, Longer than 12 months, Estimated Fair Value | 8,798 | 11,247 |
Fixed maturity securities, Longer than 12 months, Gross Unrealized Losses | (101) | (207) |
Fixed maturity securities, Total, Estimated Fair Value | 38,285 | 46,106 |
Fixed maturity securities, Total, Gross Unrealized Losses | $ (416) | $ (814) |
Investments - Schedule of Numbe
Investments - Schedule of Number of Fixed Maturities in Unrealized Loss Position and Percentage Investment Grade (Details) | Dec. 31, 2021Security |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 216 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 213 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Between 10% and 20% of Amortized Cost | 1 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Greater than 20% of Amortized Cost | 2 |
Unrealized Losses greater than 12 months, Number of Securities, Total | 26 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 23 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Between 10% and 20% of Amortized Cost | 2 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Greater than 20% of Amortized Cost | 1 |
U.S. Agency Mortgage-backed | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 3 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 3 |
Unrealized Losses less than 12 months, Percent Investment Grade | 100.00% |
Unrealized Losses greater than 12 months, Number of Securities, Total | 1 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 1 |
Unrealized Losses greater than 12 months, Percent Investment Grade | 100.00% |
State and Political Subdivisions | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 55 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 55 |
Unrealized Losses less than 12 months, Percent Investment Grade | 98.00% |
Unrealized Losses greater than 12 months, Number of Securities, Total | 1 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 1 |
Unrealized Losses greater than 12 months, Percent Investment Grade | 100.00% |
Corporate and Miscellaneous | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 56 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 54 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Greater than 20% of Amortized Cost | 2 |
Unrealized Losses less than 12 months, Percent Investment Grade | 64.00% |
Unrealized Losses greater than 12 months, Number of Securities, Total | 6 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 6 |
Unrealized Losses greater than 12 months, Percent Investment Grade | 100.00% |
Foreign Government | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 1 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 1 |
Unrealized Losses less than 12 months, Percent Investment Grade | 100.00% |
Residential Mortgage-backed | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 9 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 9 |
Unrealized Losses less than 12 months, Percent Investment Grade | 100.00% |
Unrealized Losses greater than 12 months, Number of Securities, Total | 5 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 4 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Between 10% and 20% of Amortized Cost | 1 |
Unrealized Losses greater than 12 months, Percent Investment Grade | 40.00% |
Commercial Mortgage-backed | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 15 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 15 |
Unrealized Losses less than 12 months, Percent Investment Grade | 87.00% |
Asset-backed | |
Schedule Of Available For Sale Securities [Line Items] | |
Unrealized Losses less than 12 months, Number of Securities, Total | 77 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 76 |
Unrealized Losses less than 12 months, Number of Securities, Impairment is Between 10% and 20% of Amortized Cost | 1 |
Unrealized Losses less than 12 months, Percent Investment Grade | 86.00% |
Unrealized Losses greater than 12 months, Number of Securities, Total | 13 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Less than 10% of Amortized Cost | 11 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Between 10% and 20% of Amortized Cost | 1 |
Unrealized Losses greater than 12 months, Number of Securities, Impairment is Greater than 20% of Amortized Cost | 1 |
Unrealized Losses greater than 12 months, Percent Investment Grade | 85.00% |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Summary of Deferred Policy Acquisition Costs and Changes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | ||
Beginning balance | $ 87,212 | $ 85,776 |
Acquisition costs deferred | 26,728 | 15,397 |
Amortization | (18,225) | (13,961) |
Ending balance | $ 95,715 | $ 87,212 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||
Statutory tax rate | 21.00% | 21.00% |
Annual limitation on operating loss carryforwards | $ 3,100,000 | |
Net operating losses expired due to annual limit of NOL utilization | 0 | |
Provision adjustment related to NOLs | 2,800,000 | |
Unrecognized tax benefits | 0 | $ 0 |
Unrecognized tax benefits to increase in next 12 months | $ 0 | |
Earliest Tax Year | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2025 | |
Latest Tax Year | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards expiration year | 2037 |
Income Taxes - Income Taxes Bas
Income Taxes - Income Taxes Based on Difference Between Expected Tax Provision, Applying Statutory Tax Rate to Actual Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
(Loss) income before income taxes | $ (17,035) | $ (27,303) |
Statutory rate | 21.00% | 21.00% |
Income tax (benefit) expense at statutory rate | $ (3,578) | $ (5,734) |
Effect of: | ||
Return to provision adjustments | (186) | 2,409 |
Increase (decrease) in the valuation allowance related to return to provision adjustments | 598 | (2,308) |
Increase in the valuation allowance - current year | 2,796 | 3,317 |
Total increase in the valuation allowance | 3,394 | 1,009 |
Other | (8) | 41 |
Income tax (benefit) expense | $ (378) | $ (2,275) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income tax applicable to: | ||
Current | $ (112) | $ 1,300 |
Deferred (net of increase in allowance: 2021 - $3,394, 2020 - $1,009) | (266) | (3,575) |
Income tax (benefit) expense | $ (378) | $ (2,275) |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax (Benefit) Expense (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Increase in valuation allowance | $ 3,394 | $ 1,009 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 21,076 | $ 18,131 |
Reinsurance assets | 48,559 | 48,898 |
Policyholder dividend obligation | 2,660 | 2,789 |
Policyholder dividend | 239 | 248 |
Commission receivable, net | 7,255 | 7,879 |
Incentive compensation | 176 | 211 |
Other | 1,616 | 638 |
Total deferred tax assets | 81,581 | 78,794 |
Valuation allowance | (20,059) | (16,665) |
Total deferred income tax assets | 61,522 | 62,129 |
Deferred tax liabilities: | ||
Life insurance reserves | 29,014 | 30,588 |
Deferred policy acquisition cost | 9,643 | 9,183 |
Net unrealized investment gains | 5,416 | 6,910 |
Intangible assets | 344 | 344 |
Basis difference - investments | 392 | 358 |
Fixed assets | 3,519 | 3,451 |
Other | 494 | 369 |
Total deferred tax liabilities | 48,822 | 51,203 |
Deferred income tax assets, net | $ 12,700 | $ 10,926 |
Income Taxes - Summary of Net O
Income Taxes - Summary of Net Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 100,361 |
Tax Year 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,229 |
Tax Year 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,249 |
Tax Year 2027 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,057 |
Tax Year 2028 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 3,061 |
Tax Year 2029 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,708 |
Tax Year 2030 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8,121 |
Tax Year 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,361 |
Tax Year 2032 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 2,539 |
Tax Year 2033 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,099 |
Tax Year 2034 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 13,527 |
Tax Year 2035 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,311 |
Tax Year 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,267 |
Tax Year 2037 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 4,266 |
No Expiration Year | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 38,566 |
Life Sub-Group | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,669 |
Life Sub-Group | No Expiration Year | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,669 |
Non-Life Sub-Group | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 98,692 |
Non-Life Sub-Group | Tax Year 2025 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,229 |
Non-Life Sub-Group | Tax Year 2026 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,249 |
Non-Life Sub-Group | Tax Year 2027 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,057 |
Non-Life Sub-Group | Tax Year 2028 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 3,061 |
Non-Life Sub-Group | Tax Year 2029 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,708 |
Non-Life Sub-Group | Tax Year 2030 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8,121 |
Non-Life Sub-Group | Tax Year 2031 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,361 |
Non-Life Sub-Group | Tax Year 2032 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 2,539 |
Non-Life Sub-Group | Tax Year 2033 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 1,099 |
Non-Life Sub-Group | Tax Year 2034 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 13,527 |
Non-Life Sub-Group | Tax Year 2035 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,311 |
Non-Life Sub-Group | Tax Year 2036 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 5,267 |
Non-Life Sub-Group | Tax Year 2037 | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 4,266 |
Non-Life Sub-Group | No Expiration Year | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 36,897 |
Policy Liabilities - Additional
Policy Liabilities - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Liability For Future Policy Benefit By Product Segment [Line Items] | ||
Policy liability | $ 6,403 | $ 8,010 |
Percentage of participating life insurance in force | 7.50% | 11.60% |
Structured Settlement Contract | ||
Liability For Future Policy Benefit By Product Segment [Line Items] | ||
Policy liability | $ 19,398 | $ 21,489 |
Policy liability that are life contingent | $ 15,557 | $ 17,084 |
Reinsurance - Additional Inform
Reinsurance - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Effects Of Reinsurance [Line Items] | ||
Reinsurance, uncollectible or anticipated failure, amount | $ 0 | $ 0 |
Fixed-Rate Annuity | Policyholder Account Balances | ||
Effects Of Reinsurance [Line Items] | ||
Reserves related to fixed-rate annuity deposits | 71,832,000 | 74,918,000 |
Other Income | ||
Effects Of Reinsurance [Line Items] | ||
Net policy charges on universal life products | $ 182,000 | $ 172,000 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Recoverables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Insurance [Abstract] | ||
Ceded future policy benefits | $ 146,087 | $ 128,456 |
Claims and other amounts recoverable | 38,044 | 29,559 |
Ending balance | $ 184,131 | $ 158,015 |
Reinsurance - Reconciliation of
Reinsurance - Reconciliation of Direct Premiums to Net Premiums (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Insurance [Abstract] | ||
Direct premiums | $ 169,958 | $ 146,293 |
Assumed premiums | 41,187 | 35,779 |
Ceded premiums | (103,187) | (74,030) |
Net insurance premiums | $ 107,958 | $ 108,042 |
Retirement and Executive Comp_2
Retirement and Executive Compensation Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Costs and Expenses | ||
Defined Contribution Plan Disclosure [Line Items] | ||
Defined contribution plan expense | $ 544 | $ 599 |
Closed Block - Additional Infor
Closed Block - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2011 |
Closed Block Disclosure [Abstract] | ||||
Assets transferred from closed block | $ 4,397 | |||
Additional closed block funding and accrued interest | $ 10,463 | $ 10,170 | ||
Policyholder dividend obligation | $ 12,669 | $ 13,282 | $ 11,453 |
Closed Block - Schedule of Impa
Closed Block - Schedule of Impacts on Comprehensive (Loss) Income from Recognizing Policyholder Dividend Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Closed Block Disclosure [Abstract] | ||
Actual cumulative (loss) income earnings over expected cumulative earnings | $ (9,680) | $ (9,284) |
Income tax (benefit) expense | (2,033) | (1,950) |
Net (loss) income impact | (7,647) | (7,334) |
Accumulated net unrealized investment (losses) gains | (2,989) | (3,998) |
Income tax (benefit) expense | (628) | (839) |
Other comprehensive (loss) income impact | (2,361) | (3,159) |
Comprehensive (loss) income impact | $ (10,008) | $ (10,493) |
Closed Block - Schedule of Info
Closed Block - Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Closed Block Liabilities | |||
Future policy benefits and claims | $ 32,005 | $ 38,110 | |
Policyholder account balances | 6,957 | 7,272 | |
Other policyholder liabilities | 5,017 | 6,360 | |
Policyholder dividend obligation | 12,669 | 13,282 | $ 11,453 |
Other liabilities (assets) | (634) | (619) | |
Total Closed Block liabilities | 56,014 | 64,405 | |
Investments: | |||
Fixed maturities - available-for-sale (amortized cost $38,314 and $37,364, respectively) | 43,162 | 43,738 | |
Policyholder loans | 1,210 | 1,245 | |
Total investments | 44,372 | 44,983 | |
Cash, cash equivalents and restricted cash | 1,630 | 2,614 | |
Premiums due and uncollected | 2,089 | 1,029 | |
Accrued investment income | 420 | 427 | |
Reinsurance recoverables | 15,567 | 22,689 | |
Deferred income tax assets, net | 3,139 | 3,130 | |
Total assets designated to the Closed Block | 67,217 | 74,872 | |
Excess of Closed Block assets over liabilities | 11,203 | 10,467 | |
Amounts included in accumulated other comprehensive income: | |||
Unrealized investment gains (losses), net of income tax | 3,830 | 5,035 | |
Allocated to policyholder dividend obligations, net of income tax | (2,361) | (3,159) | |
Total amounts included in accumulated other comprehensive income | 1,469 | 1,876 | |
Maximum future earnings and accumulated other comprehensive income to be recognized from Closed Block assets and liabilities | $ (9,734) | $ (8,591) |
Closed Block - Schedule of In_2
Closed Block - Schedule of Information Regarding Closed Block Liabilities (Assets) Designated to Closed Block (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Closed Block Disclosure [Abstract] | ||
Fixed maturity securities available for sale amortized cost | $ 38,314 | $ 37,364 |
Excess assets | $ 10,463 | $ 10,170 |
Closed Block - Schedule of In_3
Closed Block - Schedule of Information Regarding Policyholder Dividend Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder Dividend Obligations | ||
Beginning balance | $ 13,282 | $ 11,453 |
Impact from earnings allocable to policyholder dividend obligations | 396 | 235 |
Change in net unrealized investment gains (losses) allocated to policyholder dividend obligations | (1,009) | 1,594 |
Ending balance | $ 12,669 | $ 13,282 |
Closed Block - Schedule of In_4
Closed Block - Schedule of Information Regarding Closed Block Revenues and Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | ||
Net insurance premiums | $ 3,039 | $ 7,792 |
Net investment income | 1,488 | 1,630 |
Realized gains | 29 | 38 |
Total revenues | 4,556 | 9,460 |
Benefits and expenses | ||
Life and annuity benefits - including policyholder dividends of $1,098 and $1,161 respectively | 3,810 | 7,268 |
Interest credited to policyholder account balances | 173 | 184 |
Operating costs and expenses | (875) | 2,986 |
Total expenses | 3,108 | 10,438 |
Revenues, net of expenses before provision for income tax expense (benefit) | 1,448 | (978) |
Income tax expense (benefit) | 304 | (205) |
Revenues, net of expenses and provision for income tax expense (benefit) | $ 1,144 | $ (773) |
Closed Block - Schedule of In_5
Closed Block - Schedule of Information Regarding Closed Block Revenues and Expenses (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Closed Block Disclosure [Abstract] | ||
Policyholders dividends | $ 1,098 | $ 1,161 |
Closed Block - Schedule of Amor
Closed Block - Schedule of Amortized Cost and Fair Value of Closed Block Fixed Maturity Securities Portfolio by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Closed Block Disclosure [Abstract] | ||
Amortized Cost, Due in one year or less | $ 501 | |
Amortized Cost, Due after one year through five years | 8,687 | |
Amortized Cost, Due after five years through ten years | 3,619 | |
Amortized Cost, Due after ten years | 22,687 | |
Amortized Cost, Securities not due at a single maturity date - primarily mortgage and asset-backed | 2,820 | |
Amortized Cost, Total fixed maturities | 38,314 | $ 37,364 |
Fair Value, Due in one year or less | 506 | |
Fair Value, Due after one year through five years | 9,179 | |
Fair Value, Due after five years through ten years | 4,527 | |
Fair Value, Due after ten years | 26,140 | |
Fair Value, Securities not due at a single maturity date - primarily mortgage and asset-backed | 2,810 | |
Fair Value, Total fixed maturities | $ 43,162 | $ 43,738 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Conversion by Director | ||
Statutory Accounting Practices [Line Items] | ||
Period of utilization of fund after conversion | 24 months | |
Proceeds of IPO | $ 20,000,000 | |
Amount required to fund operations | 20,000,000 | |
Fidelity Life | ||
Statutory Accounting Practices [Line Items] | ||
Declared and paid dividends | $ 0 | $ 0 |
Illinois | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment, description | The maximum amount of dividends that can be paid by Illinois life insurance companies to shareholders without 30 days prior notice to the Director of the IDOI is the greater of (i) statutory net income for the preceding year or (ii) 10% of statutory surplus as of the preceding year-end. | |
Illinois | Fidelity Life | ||
Statutory Accounting Practices [Line Items] | ||
Minimum capital and surplus level | $ 2,000,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Statutory Capital and Surplus and Net Income (Details) - Fidelity Life - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statutory Accounting Practices [Line Items] | ||
Statutory capital and surplus | $ 98,211 | $ 112,316 |
Statutory net (loss) income | $ (8,692) | $ 6,206 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Minimum Future Operating Lease Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2022 | $ 1,374 |
2023 | 746 |
2024 | 362 |
2025 | 48 |
Total | $ 2,530 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Line items] | ||
Lease expense | $ 1,466,000 | $ 1,771,000 |
Federal Home Loan Bank of Chicago | ||
Commitments and Contingencies Disclosure [Line items] | ||
Common stock held | 115,000 | 115,000 |
Pledged assets | 0 | 0 |
Outstanding borrowings | $ 0 | $ 0 |
Assets and Liabilities Measur_3
Assets and Liabilities Measured at Fair Value - Summary of Assets and Liabilities Carried at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Recurring fair value measurements | ||
Fixed maturities | $ 352,383 | $ 363,851 |
Equity securities | 3,848 | |
Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 352,383 | 363,851 |
Equity securities | 3,848 | |
Total recurring assets | 352,383 | 367,699 |
Fair Value, Measurements, Recurring | Level 1 | ||
Recurring fair value measurements | ||
Fixed maturities | 2,821 | 2,685 |
Equity securities | 3,833 | |
Total recurring assets | 2,821 | 6,518 |
Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 321,486 | 350,911 |
Equity securities | 15 | |
Total recurring assets | 321,486 | 350,926 |
Fair Value, Measurements, Recurring | Level 3 | ||
Recurring fair value measurements | ||
Fixed maturities | 28,076 | 10,255 |
Total recurring assets | 28,076 | 10,255 |
U.S. Government and Agencies | ||
Recurring fair value measurements | ||
Fixed maturities | 11,901 | 14,272 |
U.S. Government and Agencies | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 11,901 | 14,272 |
U.S. Government and Agencies | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 11,901 | 14,272 |
U.S. Agency Mortgage-backed | ||
Recurring fair value measurements | ||
Fixed maturities | 13,679 | 22,476 |
U.S. Agency Mortgage-backed | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 13,679 | 22,476 |
U.S. Agency Mortgage-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 13,679 | 22,476 |
State and Political Subdivisions | ||
Recurring fair value measurements | ||
Fixed maturities | 60,470 | 61,429 |
State and Political Subdivisions | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 60,470 | 61,429 |
State and Political Subdivisions | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 59,972 | 60,908 |
State and Political Subdivisions | Fair Value, Measurements, Recurring | Level 3 | ||
Recurring fair value measurements | ||
Fixed maturities | 498 | 521 |
Corporate and Miscellaneous | ||
Recurring fair value measurements | ||
Fixed maturities | 184,498 | 169,053 |
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 184,498 | 169,053 |
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 1 | ||
Recurring fair value measurements | ||
Fixed maturities | 2,821 | 2,685 |
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 156,937 | 157,935 |
Corporate and Miscellaneous | Fair Value, Measurements, Recurring | Level 3 | ||
Recurring fair value measurements | ||
Fixed maturities | 24,740 | 8,433 |
Foreign Government | ||
Recurring fair value measurements | ||
Fixed maturities | 414 | 176 |
Foreign Government | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 414 | 176 |
Foreign Government | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 414 | 176 |
Residential Mortgage-backed | ||
Recurring fair value measurements | ||
Fixed maturities | 6,069 | 6,421 |
Residential Mortgage-backed | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 6,069 | 6,421 |
Residential Mortgage-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 6,069 | 6,421 |
Commercial Mortgage-backed | ||
Recurring fair value measurements | ||
Fixed maturities | 20,815 | 20,017 |
Commercial Mortgage-backed | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 20,815 | 20,017 |
Commercial Mortgage-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 20,815 | 20,017 |
Asset-backed | ||
Recurring fair value measurements | ||
Fixed maturities | 54,537 | 70,007 |
Asset-backed | Fair Value, Measurements, Recurring | ||
Recurring fair value measurements | ||
Fixed maturities | 54,537 | 70,007 |
Asset-backed | Fair Value, Measurements, Recurring | Level 2 | ||
Recurring fair value measurements | ||
Fixed maturities | 51,699 | 68,706 |
Asset-backed | Fair Value, Measurements, Recurring | Level 3 | ||
Recurring fair value measurements | ||
Fixed maturities | $ 2,838 | $ 1,301 |
Assets and Liabilities Measur_4
Assets and Liabilities Measured at Fair Value - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2021USD ($)Investment | Dec. 31, 2020USD ($) | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of investments transferred from level 3 to level 2 | Investment | 3 | |
Number of investments transferred from level 2 to level 3 | Investment | 1 | |
Fair value, assets transfers from Level 1 to Level 2 | $ 0 | |
Fair value, assets transfers from Level 2 to Level 1 | 0 | |
Fair value, assets transfers into Level 3 | 0 | |
Fair value, assets transfers out of Level 3 | 0 | |
Mortgage loans | $ 47,487,000 | 50,427,000 |
Second and Mezzanine Mortgages | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans | $ 2,398,000 | $ 2,675,000 |
Assets and Liabilities Measur_5
Assets and Liabilities Measured at Fair Value - Summary of Changes in Fair Value of Level 3 Assets Held at Fair Value on Recurring Basis (Details) - Fixed Maturities, Available-for-Sale - Level 3 - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Financial Assets, Beginning Balance | $ 10,255 | $ 1,215 |
Total gains (losses) included in: Net Income (loss) | (39) | 42 |
Total gains (losses) included in: OCI | (25) | 107 |
Purchases | 20,163 | 9,063 |
Settlements | (265) | (172) |
Net Transfers | (2,013) | |
Financial Assets, Ending Balance | 28,076 | 10,255 |
State and Political Subdivisions | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Financial Assets, Beginning Balance | 521 | |
Total gains (losses) included in: OCI | (23) | 21 |
Purchases | 500 | |
Financial Assets, Ending Balance | 498 | 521 |
Corporate and Miscellaneous | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Financial Assets, Beginning Balance | 8,433 | |
Total gains (losses) included in: Net Income (loss) | (39) | 42 |
Total gains (losses) included in: OCI | 120 | |
Purchases | 18,873 | 8,271 |
Settlements | (14) | |
Net Transfers | (2,513) | |
Financial Assets, Ending Balance | 24,740 | 8,433 |
Asset-backed | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Financial Assets, Beginning Balance | 1,301 | 1,215 |
Total gains (losses) included in: OCI | (2) | (34) |
Purchases | 1,290 | 292 |
Settlements | (251) | (172) |
Net Transfers | 500 | |
Financial Assets, Ending Balance | $ 2,838 | $ 1,301 |
Assets and Liabilities Measur_6
Assets and Liabilities Measured at Fair Value - Summary of Carrying Amount and Estimated Fair Values of Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Financial instruments recorded as assets: | ||
Mortgage loans | $ 47,487 | $ 50,427 |
Policyholder loans | 6,371 | 6,414 |
Financial instruments recorded as liabilities: | ||
Future policy benefits, excluding term life reserves | 22,680 | 24,495 |
Long/short-term debt | 26,378 | 30,478 |
Policyholder account balances | 80,494 | 83,869 |
Estimated Fair Value | ||
Financial instruments recorded as assets: | ||
Mortgage loans | 43,047 | 46,816 |
Policyholder loans | 8,280 | 8,335 |
Financial instruments recorded as liabilities: | ||
Future policy benefits, excluding term life reserves | 19,733 | 20,454 |
Long/short-term debt | 31,940 | 37,033 |
Policyholder account balances | 86,198 | 92,190 |
Estimated Fair Value | Level 3 | ||
Financial instruments recorded as assets: | ||
Mortgage loans | 43,047 | 46,816 |
Policyholder loans | 8,280 | 8,335 |
Financial instruments recorded as liabilities: | ||
Future policy benefits, excluding term life reserves | 19,733 | 20,454 |
Long/short-term debt | 31,940 | 37,033 |
Policyholder account balances | $ 86,198 | $ 92,190 |
Long and Short-Term Debt - Addi
Long and Short-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 01, 2017 | |
Debt Disclosure [Abstract] | ||||
Maximum amount finance available on commission | $ 30,000,000 | |||
Minimum aggregate amount advanced under arrangement | $ 30,000,000 | |||
Net advance from external party | $ 21,937,000 | $ 27,533,000 |
Long and Short-Term Debt - Sche
Long and Short-Term Debt - Schedule of Long Term and Short Term Debt Pay Back (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
Due in one year or less | $ 3,869 |
Due after one year through two years | 3,567 |
Due after two years through three years | 3,350 |
Due after three years through four years | 3,182 |
Due after four years through five years | 3,038 |
Due after five years | 21,911 |
Less discount | (12,539) |
Total long/short-term debt | $ 26,378 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive (Loss) Income, Net of Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance – beginning of period | $ 195,233 | |
Other comprehensive income (loss) | ||
Unrealized holding gains from changes in the market value of securities | (9,796) | $ 15,054 |
Impact on Policy benefit liabilities of changes in market value of securities | 1,606 | (3,527) |
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations | 1,009 | (1,594) |
Income tax (expense) benefit | 1,509 | (2,089) |
Total other comprehensive (loss) income | (5,672) | 7,844 |
Balance – end of period | 172,904 | 195,233 |
Net Unrealized Gains (Losses) on Investments with OTTI Losses | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance – beginning of period | 362 | 362 |
Other comprehensive income (loss) | ||
Balance – end of period | 362 | 362 |
Net Unrealized Gains (Losses) on Other Investments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance – beginning of period | 16,239 | 8,395 |
Other comprehensive income (loss) | ||
Unrealized holding gains from changes in the market value of securities | (9,796) | 15,054 |
Impact on Policy benefit liabilities of changes in market value of securities | 1,606 | (3,527) |
Change in net unrealized investment (losses) gains allocated to policyholder dividend obligations | 1,009 | (1,594) |
Income tax (expense) benefit | 1,509 | (2,089) |
Total other comprehensive (loss) income | (5,672) | 7,844 |
Balance – end of period | 10,567 | 16,239 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance – beginning of period | 16,601 | 8,757 |
Other comprehensive income (loss) | ||
Balance – end of period | $ 10,929 | $ 16,601 |
Business Segments - Additional
Business Segments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Business Segments - Schedule of
Business Segments - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Net insurance premiums | $ 107,958 | $ 108,042 | |
Net investment income | 14,566 | 14,121 | |
Net gains (losses) on investments | 3,106 | (1,242) | |
Other-than-temporary impairments | (4) | (68) | |
Earned commissions | 44,393 | 21,811 | |
Other income | 6,560 | 5,167 | |
Total revenues | 176,579 | 147,831 | |
Life, annuity, and health claim benefits | 80,677 | 80,810 | |
Operating costs and expenses | 94,712 | 80,363 | |
Amortization of deferred policy acquisition costs | 18,225 | 13,961 | |
Total benefits and expenses | 193,614 | 175,134 | |
(Loss) income before income tax | (17,035) | (27,303) | |
Investments and cash | 430,780 | 461,055 | |
Commissions and agent balances | 28,689 | 19,526 | |
Deferred policy acquisition costs | 95,715 | 87,212 | $ 85,776 |
Intangible assets | 1,635 | 1,635 | |
Reinsurance recoverables | 184,131 | 158,015 | |
Deferred income tax (liabilities) assets, net | 12,700 | 10,926 | |
Other | 34,357 | 30,395 | |
Total assets | 788,007 | 768,764 | |
Operating Segments | Insurance | |||
Segment Reporting Information [Line Items] | |||
Net insurance premiums | 107,958 | 108,042 | |
Net investment income | 13,973 | 13,925 | |
Net gains (losses) on investments | 2,352 | (1,370) | |
Other-than-temporary impairments | (4) | (68) | |
Other income | 247 | 209 | |
Total revenues | 124,526 | 120,738 | |
Life, annuity, and health claim benefits | 80,677 | 80,810 | |
Operating costs and expenses | 25,688 | 26,589 | |
Amortization of deferred policy acquisition costs | 18,225 | 13,961 | |
Total benefits and expenses | 124,590 | 121,360 | |
(Loss) income before income tax | (64) | (622) | |
Investments and cash | 419,953 | 436,757 | |
Commissions and agent balances | 11,919 | (12,231) | |
Deferred policy acquisition costs | 95,715 | 87,212 | |
Reinsurance recoverables | 184,131 | 158,015 | |
Deferred income tax (liabilities) assets, net | (4,136) | (7,351) | |
Other | 26,074 | 23,845 | |
Total assets | 733,656 | 686,247 | |
Operating Segments | Agency | |||
Segment Reporting Information [Line Items] | |||
Earned commissions | 46,455 | 43,425 | |
Other income | 6,313 | 4,958 | |
Total revenues | 52,768 | 48,383 | |
Operating costs and expenses | 56,739 | 49,249 | |
Total benefits and expenses | 56,739 | 49,249 | |
(Loss) income before income tax | (3,971) | (866) | |
Investments and cash | 425 | 3,469 | |
Commissions and agent balances | 16,770 | 31,651 | |
Intangible assets | 1,635 | 1,635 | |
Other | 4,023 | 2,909 | |
Total assets | 22,853 | 39,664 | |
Operating Segments | Corporate & Other | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 593 | 196 | |
Net gains (losses) on investments | 754 | 128 | |
Earned commissions | (2,062) | (21,614) | |
Total revenues | (715) | (21,290) | |
Operating costs and expenses | 12,285 | 4,525 | |
Total benefits and expenses | 12,285 | 4,525 | |
(Loss) income before income tax | (13,000) | (25,815) | |
Investments and cash | 10,402 | 20,829 | |
Commissions and agent balances | 106 | ||
Deferred income tax (liabilities) assets, net | 16,836 | 18,277 | |
Other | 4,260 | 3,641 | |
Total assets | $ 31,498 | $ 42,853 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | $ 382,589 |
Value | 408,381 |
Balance Sheet | 408,381 |
Bonds | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 326,591 |
Value | 352,383 |
Balance Sheet | 352,383 |
Bonds | U.S. Government and Agencies | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 9,825 |
Value | 11,901 |
Balance Sheet | 11,901 |
Bonds | U.S. Agency Mortgage-backed | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 12,889 |
Value | 13,679 |
Balance Sheet | 13,679 |
Bonds | State and Political Subdivisions | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 58,170 |
Value | 60,470 |
Balance Sheet | 60,470 |
Bonds | Corporate and Miscellaneous | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 164,823 |
Value | 184,498 |
Balance Sheet | 184,498 |
Bonds | Foreign Government | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 378 |
Value | 414 |
Balance Sheet | 414 |
Bonds | Residential Mortgage Backed Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 5,880 |
Value | 6,069 |
Balance Sheet | 6,069 |
Bonds | Commercial Mortgage Backed Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 20,003 |
Value | 20,815 |
Balance Sheet | 20,815 |
Bonds | Asset Backed Securities | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 54,623 |
Value | 54,537 |
Balance Sheet | 54,537 |
Mortgage Loans | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 47,487 |
Value | 47,487 |
Balance Sheet | 47,487 |
Policy Loans | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 6,371 |
Value | 6,371 |
Balance Sheet | 6,371 |
Other Invested Assets | |
Summary Of Investments Other Than Investments In Related Parties Reportable Data [Line Items] | |
Cost | 2,140 |
Value | 2,140 |
Balance Sheet | $ 2,140 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant (Parent Company) Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | ||
Total revenues | $ 176,579 | $ 147,831 |
Expenses | ||
Operating costs and expenses | 94,712 | 80,363 |
Income tax expense (benefit) | (378) | (2,275) |
Net (loss) income | (16,657) | (25,028) |
Other comprehensive income (loss) | (5,672) | 7,844 |
Total comprehensive (loss) income | (22,329) | (17,184) |
Parent Company | ||
Revenues | ||
Net investment income and gains (losses) | 1,425 | 385 |
Total revenues | 1,425 | 385 |
Expenses | ||
Operating costs and expenses | 11,038 | 11,343 |
Total expenses | 11,038 | 11,343 |
Income (loss) before income taxes | (9,613) | (10,958) |
Income tax expense (benefit) | (670) | (762) |
Net income (loss) before equity in net loss of subsidiary | (8,943) | (10,196) |
Equity in net (loss) of subsidiary | (7,714) | (14,832) |
Net (loss) income | (16,657) | (25,028) |
Other comprehensive income (loss) | 15 | |
Equity in other comprehensive income of subsidiary | (5,672) | 7,829 |
Total comprehensive (loss) income | $ (22,329) | $ (17,184) |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant (Parent Company) - Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Fixed maturities - available-for-sale - at fair value | $ 352,383 | $ 363,851 |
Other invested assets | 2,140 | 273 |
Cash, cash equivalents and restricted cash | 22,399 | 36,242 |
Accrued investment income | 2,590 | 2,633 |
Other assets | 31,767 | 27,762 |
Total assets | 788,007 | 768,764 |
Liabilities | ||
Other liabilities | 23,394 | 19,854 |
Total liabilities | 615,103 | 573,531 |
Shareholders' Equity | ||
Common stock, $.001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding | 15 | 15 |
Additional paid-in capital | 39,840 | 39,840 |
Retained earnings | 122,120 | 138,777 |
Accumulated other comprehensive income (loss) | 10,929 | 16,601 |
Total shareholders' equity | 172,904 | 195,233 |
Total liabilities and shareholders' equity | 788,007 | 768,764 |
Parent Company | ||
Assets | ||
Investment in subsidiaries | 155,163 | 168,549 |
Fixed maturities - available-for-sale - at fair value | 5,883 | 4,863 |
Other invested assets | 555 | 135 |
Cash, cash equivalents and restricted cash | 3,884 | 15,750 |
Accrued investment income | 1 | |
Inter-company receivables | 7,095 | 6,067 |
Current income tax receivable | 1,613 | 943 |
Other assets | 755 | 862 |
Total assets | 174,948 | 197,170 |
Liabilities | ||
Other liabilities | 2,044 | 1,937 |
Total liabilities | 2,044 | 1,937 |
Shareholders' Equity | ||
Common stock, $.001 par value, 30,000,000 shares authorized, 14,875,000 shares, issued and outstanding | 15 | 15 |
Additional paid-in capital | 39,840 | 39,840 |
Retained earnings | 122,120 | 138,777 |
Accumulated other comprehensive income (loss) | 10,929 | 16,601 |
Total shareholders' equity | 172,904 | 195,233 |
Total liabilities and shareholders' equity | $ 174,948 | $ 197,170 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant (Parent Company) - Statement of Financial Position (Parenthetical) (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements Captions [Line Items] | ||
Fixed maturities - available-for-sale - amortized cost | $ 326,591 | $ 328,263 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,875,000 | 14,875,000 |
Common stock, shares outstanding | 14,875,000 | 14,875,000 |
Parent Company | ||
Condensed Balance Sheet Statements Captions [Line Items] | ||
Fixed maturities - available-for-sale - amortized cost | $ 5,883 | $ 4,863 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,875,000 | 14,875,000 |
Common stock, shares outstanding | 14,875,000 | 14,875,000 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant (Parent Company) - Condensed Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (16,657) | $ (25,028) |
Adjustments to reconcile net income to net cash provided (used) by operations: | ||
Net investment gains (losses) | (3,106) | 1,242 |
Change in: | ||
Accrued investment income | 43 | 147 |
Other liabilities | 3,719 | (2,414) |
Other assets | (1,349) | 7,621 |
Net cash (used) provided by operating activities | (794) | 5,303 |
Cash flows from investing activities | ||
Purchases of fixed maturities | (65,392) | (92,082) |
Purchases of other invested assets | (1,120) | (611) |
Sales of fixed maturities | 68,115 | 58,333 |
Net cash (used) provided by investing activities | (1,275) | (8,754) |
Net (decrease) in cash, cash equivalents and restricted cash | (13,843) | (1,600) |
Cash, cash equivalents and restricted cash – beginning of period | 36,242 | 37,842 |
Cash, cash equivalents and restricted cash – end of period | 22,399 | 36,242 |
Parent Company | ||
Cash flows from operating activities | ||
Net (loss) income | (16,657) | (25,028) |
Adjustments to reconcile net income to net cash provided (used) by operations: | ||
Equity in earnings of subsidiaries | 7,714 | 14,832 |
Net investment gains (losses) | (754) | (128) |
Accretion of bond discount | (321) | (58) |
Change in: | ||
Due to subsidiaries | (1,027) | (1,349) |
Accrued investment income | 1 | 11 |
Other liabilities | 106 | 1,843 |
Other assets | 107 | (862) |
Income tax | (670) | (762) |
Net cash (used) provided by operating activities | (11,501) | (11,501) |
Cash flows from investing activities | ||
Purchases of fixed maturities | (4,239) | (4,734) |
Purchases of other invested assets | 334 | (135) |
Sales of fixed maturities | 3,540 | |
Sales of short-term investments | 29,800 | |
Net cash (used) provided by investing activities | (365) | 24,931 |
Net (decrease) in cash, cash equivalents and restricted cash | (11,866) | 13,430 |
Cash, cash equivalents and restricted cash – beginning of period | 15,750 | 2,320 |
Cash, cash equivalents and restricted cash – end of period | $ 3,884 | $ 15,750 |
Schedule III - Summary of Suppl
Schedule III - Summary of Supplementary Insurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Supplementary Insurance Information by Segment [Line Items] | ||
Deferred Policy Acquisition Costs | $ 95,715 | $ 87,212 |
Future Policy Benefits Losses and Expenses | 416,039 | 381,563 |
Other Policy Claims and Benefits Payable | 142,365 | 134,940 |
Net Insurance Premiums | 107,958 | 108,042 |
Net Investment Income | 14,566 | 14,121 |
Benefits, Claims, Losses and Settlement Expenses | 80,677 | 80,810 |
Amortization of DAC | 18,225 | 13,961 |
Other Operating Expenses | 94,712 | 80,363 |
Operating Segments | Insurance | ||
Supplementary Insurance Information by Segment [Line Items] | ||
Deferred Policy Acquisition Costs | 95,715 | 87,212 |
Future Policy Benefits Losses and Expenses | 416,039 | 381,563 |
Other Policy Claims and Benefits Payable | 142,365 | 134,940 |
Net Insurance Premiums | 107,958 | 108,042 |
Net Investment Income | 13,973 | 13,925 |
Benefits, Claims, Losses and Settlement Expenses | 80,677 | 80,810 |
Amortization of DAC | 18,225 | 13,961 |
Other Operating Expenses | 25,688 | 26,589 |
Operating Segments | Agency | ||
Supplementary Insurance Information by Segment [Line Items] | ||
Other Operating Expenses | 56,739 | 49,249 |
Operating Segments | Corporate and Other | ||
Supplementary Insurance Information by Segment [Line Items] | ||
Net Investment Income | 593 | 196 |
Other Operating Expenses | $ 12,285 | $ 4,525 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Reinsurance Premiums for Insurance Companies by Product Segment [Line Items] | ||
Gross Amount | $ 169,958 | $ 146,293 |
Ceded to Other Companies | 103,187 | 74,030 |
Assumed From Other Companies | 41,187 | 35,779 |
Net Amount | $ 107,958 | $ 108,042 |
Percentage of Amount Assumed to Net | 38.20% | 33.10% |
Life Insurance Face Amount In-force | ||
Reinsurance Premiums for Insurance Companies by Product Segment [Line Items] | ||
Gross Amount | $ 34,854 | $ 32,343 |
Ceded to Other Companies | 33,845 | 32,094 |
Assumed From Other Companies | 3,975 | 2,928 |
Net Amount | $ 4,984 | $ 3,177 |
Percentage of Amount Assumed to Net | 79.80% | 92.20% |
Life Insurance Premiums | ||
Reinsurance Premiums for Insurance Companies by Product Segment [Line Items] | ||
Gross Amount | $ 169,204 | $ 145,597 |
Ceded to Other Companies | 103,028 | 73,855 |
Assumed From Other Companies | 41,187 | 35,779 |
Net Amount | $ 107,363 | $ 107,521 |
Percentage of Amount Assumed to Net | 38.40% | 33.30% |
Accident and Health Premiums | ||
Reinsurance Premiums for Insurance Companies by Product Segment [Line Items] | ||
Gross Amount | $ 754 | $ 696 |
Ceded to Other Companies | 159 | 175 |
Net Amount | $ 595 | $ 521 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | $ 17,686 | $ 16,254 |
Additions Charged to Costs and Expenses | 3,394 | 1,344 |
Additions Other | 88 | |
Deductions | 371 | |
Balance at End of Period | 20,709 | 17,686 |
Allowance for Losses on Commercial Mortgage Loans | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 141 | 53 |
Additions Other | 88 | |
Deductions | 72 | |
Balance at End of Period | 69 | 141 |
Allowance for Uncollectible Receivables | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 880 | 545 |
Additions Charged to Costs and Expenses | 335 | |
Deductions | 299 | |
Balance at End of Period | 581 | 880 |
Valuation Allowance on Deferred Tax Assets | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Balance at Beginning of Period | 16,665 | 15,656 |
Additions Charged to Costs and Expenses | 3,394 | 1,009 |
Balance at End of Period | $ 20,059 | $ 16,665 |