Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 13, 2023 | Jun. 30, 2022 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-55522 | ||
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-3339380 | ||
Entity Address, Address Line One | 10801 N. Mopac Expy Bldg 3 | ||
Entity Address, City or Town | Austin, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78759 | ||
City Area Code | (512) | ||
Local Phone Number | 836-1010 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | NWLI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 518,891,325 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of the registrant’s definitive proxy statement for the annual meeting of stockholders to be held June 22, 2023, which will be filed within 120 days after December 31, 2022, are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001635984 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,436,020 | ||
Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 686 |
Auditor Name | FORVIS, LLP |
Auditor Location | West Des Moines, Iowa |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Debt securities available-for-sale, at fair value (cost: $8,438,760 and $8,604,250) | $ 7,611,633 | $ 9,068,946 |
Debt securities trading, at fair value (cost: $1,269,597 and $1,066,108) | 1,065,993 | 1,077,438 |
Mortgage loans, net of allowance for credit losses ($3,575 and $2,987), ($19,334 and $8,469 at fair value) | 505,730 | 487,304 |
Policy loans | 70,495 | 71,286 |
Derivatives, index options | 23,669 | 101,622 |
Equity securities, at fair value (cost: $14,547 and $16,549) | 22,076 | 28,217 |
Other long-term investments | 262,106 | 137,670 |
Short-term investments | 3,937 | 0 |
Total investments | 9,565,639 | 10,972,483 |
Cash and cash equivalents | 295,270 | 714,624 |
Deferred policy acquisition costs | 909,786 | 569,839 |
Deferred sales inducements | 114,399 | 78,136 |
Value of business acquired | 146,494 | 154,499 |
Cost of reinsurance | 78,328 | 89,686 |
Accrued investment income | 92,250 | 84,394 |
Federal income tax receivable | 6,508 | 0 |
Deferred federal income tax asset | 57,867 | 0 |
Amounts recoverable from reinsurer, net of allowance for credit losses ($450 and $0) | 1,723,347 | 1,539,919 |
Other assets | 110,339 | 126,609 |
Total assets | 13,100,227 | 14,330,189 |
Future policy benefits: | ||
Universal life and annuity contracts | 8,498,684 | 9,003,275 |
Traditional life reserves | 919,650 | 909,712 |
Other policyholder liabilities | 175,089 | 134,338 |
Funds withheld liability | 1,333,036 | 1,485,267 |
Deferred Federal income tax liability | 0 | 101,166 |
Federal income tax payable | 0 | 2,331 |
Other liabilities | 166,557 | 154,409 |
Total liabilities | 11,093,016 | 11,790,498 |
COMMITMENTS AND CONTINGENCIES | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) | (416,397) | 215,953 |
Retained earnings | 2,381,856 | 2,281,986 |
Total stockholders' equity | 2,007,211 | 2,539,691 |
Total liabilities and stockholders' equity | 13,100,227 | 14,330,189 |
Class A | ||
Common stock: | ||
Common stock, value outstanding | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments: | ||
Debt securities available for sale, amortized cost | $ 8,438,760 | $ 8,604,250 |
Debt securities, trading, cost | 1,269,597 | 1,066,108 |
Mortgage loans-allowance for possible losses | 3,575 | 2,987 |
Mortgage loans - fair value | 19,334 | 8,469 |
Equity securities, cost | 14,547 | 16,549 |
Allowance related to reinsurance | $ 450 | $ 0 |
Class A | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Class B | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Premiums and other revenues: | |||
Universal life and annuity contract charges | $ 139,022 | $ 134,254 | $ 145,405 |
Traditional life premiums | 87,858 | 90,043 | 92,542 |
Net investment income | 299,640 | 562,530 | 417,202 |
Other revenues | 25,522 | 22,314 | 18,522 |
Net realized investment gains: | |||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 0 | 0 | 5 |
Portion of OTTI (gains) losses recognized in other comprehensive income | 0 | 0 | (5) |
Net OTTI losses recognized in earnings | 0 | 0 | 0 |
Other net investment gains | 6,355 | 14,950 | 21,071 |
Total net realized investment gains | 6,355 | 14,950 | 21,071 |
Total revenues | 558,397 | 824,091 | 694,742 |
Benefits and expenses: | |||
Life and other policy benefits | 159,470 | 187,577 | 131,337 |
Amortization of deferred transaction costs | 121,398 | 69,461 | 140,503 |
Universal life and annuity contract interest | 15,678 | 213,184 | 206,250 |
Other operating expenses | 135,817 | 126,612 | 104,584 |
Total benefits and expenses | 432,363 | 596,834 | 582,674 |
Earnings before Federal income taxes | 126,034 | 227,257 | 112,068 |
Federal income taxes | 24,890 | 46,576 | 19,756 |
Net earnings | 101,144 | 180,681 | 92,312 |
Class A | |||
Benefits and expenses: | |||
Net earnings | $ 98,284 | $ 175,571 | $ 89,701 |
Basic Earnings Per Share: | |||
Basic earnings per share (in dollars per share) | $ 28.60 | $ 51.10 | $ 26.11 |
Diluted Earnings Per Share: | |||
Diluted earnings per share (in dollars per share) | $ 28.60 | $ 51.10 | $ 26.11 |
Class B | |||
Benefits and expenses: | |||
Net earnings | $ 2,860 | $ 5,110 | $ 2,611 |
Basic Earnings Per Share: | |||
Basic earnings per share (in dollars per share) | $ 14.30 | $ 25.55 | $ 13.05 |
Diluted Earnings Per Share: | |||
Diluted earnings per share (in dollars per share) | $ 14.30 | $ 25.55 | $ 13.05 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 101,144 | $ 180,681 | $ 92,312 |
Unrealized gains (losses) on securities: | |||
Net unrealized holding gains (losses) arising during period | (642,148) | (179,587) | 352,561 |
Net unrealized liquidity gains (losses) | 0 | 0 | 6 |
Reclassification adjustment for net amounts included in net earnings | (4,038) | (12,934) | (4,485) |
Net unrealized gains (losses) on securities | (646,186) | (192,521) | 348,082 |
Foreign currency translation adjustments | 407 | (16) | 15 |
Benefit plans: | |||
Amortization of net prior service cost and net gain (loss) | 13,428 | 13,069 | (12,784) |
Other comprehensive income (loss) | (632,351) | (179,468) | 335,313 |
Comprehensive income (loss) | $ (531,207) | $ 1,213 | $ 427,625 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock: | Additional paid-in capital: | Accumulated other comprehensive income: | Unrealized gains (losses) on non-impaired securities: | Unrealized losses on impaired held-to-maturity securities: | Unrealized losses on impaired available-for-sale securities: | Unrealized losses on impaired available-for-sale securities: Cumulative Effect, Period of Adoption, Adjustment | Foreign currency translation adjustments: | Benefit plan liability adjustment: | Retained earnings: | Retained earnings: Cumulative Effect, Period of Adoption, Adjusted Balance | Retained earnings: Cumulative Effect, Period of Adoption, Adjustment |
Stockholders’ equity, beginning of period at Dec. 31, 2019 | $ 36 | $ 41,716 | $ 70,665 | $ (4) | $ (2) | $ 2 | $ 5,101 | $ (15,652) | $ 2,014,570 | $ (3,032) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Change in unrealized gains (losses) during period | $ 352,561 | 348,076 | |||||||||||
Amortization | 4 | ||||||||||||
Change in shadow deferred policy acquisition costs | (2) | ||||||||||||
Disposals of previously impaired securities | 2 | ||||||||||||
Change in translation adjustments during period | 14 | 15 | |||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (12,784) | (12,784) | |||||||||||
Net earnings | 92,312 | $ 92,312 | |||||||||||
Stockholder dividends | (1,273) | ||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2020 | 2,539,750 | 36 | 41,716 | $ 395,421 | 418,741 | 0 | 0 | 0 | 5,116 | (28,436) | 2,102,577 | 2,102,577 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Change in unrealized gains (losses) during period | (179,587) | (192,521) | |||||||||||
Amortization | 0 | ||||||||||||
Change in shadow deferred policy acquisition costs | 0 | ||||||||||||
Disposals of previously impaired securities | 0 | ||||||||||||
Change in translation adjustments during period | (16) | (16) | |||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | 13,069 | 13,069 | |||||||||||
Net earnings | 180,681 | 180,681 | |||||||||||
Stockholder dividends | (1,272) | ||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2021 | 2,539,691 | 36 | 41,716 | 215,953 | 226,220 | 0 | 0 | $ 0 | 5,100 | (15,367) | 2,281,986 | $ 2,281,986 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Change in unrealized gains (losses) during period | (642,148) | (646,185) | |||||||||||
Amortization | 0 | ||||||||||||
Change in shadow deferred policy acquisition costs | 0 | ||||||||||||
Disposals of previously impaired securities | 0 | ||||||||||||
Change in translation adjustments during period | 407 | 407 | |||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | 13,428 | 13,428 | |||||||||||
Net earnings | 101,144 | 101,144 | |||||||||||
Stockholder dividends | (1,274) | ||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2022 | $ 2,007,211 | $ 36 | $ 41,716 | $ (416,397) | $ (419,965) | $ 0 | $ 0 | $ 5,507 | $ (1,939) | $ 2,381,856 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 101,144 | $ 180,681 | $ 92,312 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Universal life and annuity contract interest | 15,678 | 213,184 | 206,250 |
Surrender charges and other policy revenues | (19,166) | (26,315) | (26,623) |
Realized (gains) losses on investments | (6,355) | (14,950) | (21,071) |
Accretion/amortization of discounts and premiums, investments | (4,547) | 1,846 | 3,371 |
Depreciation and amortization | 14,330 | 13,001 | 11,903 |
Increase (decrease) in estimated credit losses on investments | 588 | 501 | (2,027) |
(Increase) decrease in value of debt securities trading | 214,935 | (11,331) | 0 |
(Increase) decrease in value of equity securities | 2,731 | (6,369) | 937 |
(Increase) decrease in value of derivative options | 86,866 | (120,717) | (14,754) |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 74,561 | (25,594) | 82,897 |
(Increase) decrease in accrued investment income | (7,856) | 3,929 | 4,975 |
(Increase) decrease in reinsurance recoverable | 121,607 | 169,313 | 728 |
(Increase) decrease in cost of reinsurance | 11,358 | 13,154 | 0 |
(Increase) decrease in other assets | (2,097) | (6,017) | (620) |
Increase (decrease) in liabilities for future policy benefits | 112,712 | 114,873 | 14,138 |
(Decrease) increase in other policyholder liabilities | 40,741 | (4,142) | 10,873 |
(Decrease) increase in Federal income tax liability | (8,839) | 12,739 | (14,156) |
Increase (decrease) in deferred Federal income tax | 9,061 | 3,746 | 20,031 |
Increase (decrease) in funds withheld liability | (395,354) | (212,324) | 0 |
(Decrease) increase in other liabilities | (3,558) | (22,383) | 3,907 |
Net cash provided by operating activities | 358,540 | 276,825 | 373,071 |
Proceeds from sales of: | |||
Debt securities available-for-sale | 39,254 | 1,221,308 | 0 |
Debt securities trading | 21,253 | 15,734 | 0 |
Other investments | 5,999 | 23,241 | 9,198 |
Proceeds from maturities, redemptions, and prepayments of: | |||
Debt securities held-to-maturity | 0 | 0 | 960,360 |
Debt securities available-for-sale | 1,073,194 | 1,520,734 | 334,397 |
Debt securities trading | 89,848 | 61,313 | 0 |
Other investments | 27,373 | 22,597 | 13,715 |
Derivatives, index options | 46,563 | 197,877 | 106,451 |
Purchases of: | |||
Debt securities held-to-maturity | 0 | 0 | (544,092) |
Debt securities available-for-sale | (939,820) | (1,382,318) | (297,998) |
Debt securities trading | (310,144) | (1,140,965) | 0 |
Equity securities | (1,013) | (15,265) | (1,395) |
Derivatives, index options | (53,996) | (47,383) | (62,568) |
Other investments | (145,391) | (57,153) | (52,944) |
Property, equipment, and other productive assets | (1,594) | (9,977) | (12,106) |
Net change in short-term investments | (3,937) | 0 | 0 |
Principal payments on mortgage loans | 26,804 | 28,847 | 14,814 |
Cost of mortgage loans acquired | (47,402) | (183,601) | (80,220) |
(Increase) decrease in policy loans | (18) | 2,797 | 5,925 |
Other (increases) decreases to funds withheld | 97 | (77,191) | 0 |
Net cash provided by (used in) investing activities | (172,930) | 180,595 | 393,537 |
Cash flows from financing activities: | |||
Dividends on common stock | (1,274) | (1,272) | (1,273) |
Deposits to account balances for universal life and annuity contracts | 287,799 | 610,357 | 501,867 |
Return of account balances on universal life and annuity contracts | (891,666) | (932,531) | (939,309) |
Principal payments under finance lease obligation | (338) | (389) | (378) |
Net cash provided by (used in) financing activities | (605,479) | (323,835) | (439,093) |
Effect of foreign exchange | 515 | (20) | 19 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (419,354) | 133,565 | 327,534 |
Cash, cash equivalents, and restricted cash at beginning of year | 714,624 | 581,059 | 253,525 |
Cash, cash equivalents, and restricted cash at end of year | 295,270 | 714,624 | 581,059 |
Cash paid during the year for: | |||
Interest | 75 | 75 | 75 |
Income taxes | 24,712 | 30,043 | 13,980 |
Noncash operating activities: | |||
Net deferral and amortization of sales inducements | (9,992) | 4,355 | (12,464) |
Establishment of funds withheld liability (see Note 5) | 243,123 | 0 | 1,697,591 |
Deferred cost of reinsurance (see Note 5) | 0 | 0 | 102,840 |
Deferred gain on reinsurance (see Note 5) | 30,811 | 0 | 0 |
Noncash investing activities: | |||
Exchange of debt securities trading | 0 | 4,800 | 0 |
Right of use asset obtained in exchange for finance lease liability | $ 0 | $ 1,422 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation National Western Life Insurance Company ("National Western" or "NWLIC") became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI") effective October 1, 2015 under a previously announced holding company reorganization. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. The accompanying Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western, Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). All significant intercorporate transactions and accounts have been eliminated in consolidation. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs ("DPAC"), deferred sales inducements ("DSI"), the value of business acquired ("VOBA"), and the cost of reinsurance ("COR"), (4) valuation allowances for deferred tax assets, (5) goodwill, (6) allowances for credit losses on available-for-sale debt securities, (7) allowance for credit losses for mortgage loans and real estate, and (8) commitments and contingencies. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2022, 2021 and 2020. Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Years Ended December 31, 2022 2021 2020 (In thousands) Other net investment gains $ 5,111 16,372 5,677 Net OTTI losses recognized in earnings — — — Earnings before Federal income taxes 5,111 16,372 5,677 Federal income taxes 1,073 3,438 1,192 Net earnings $ 4,038 12,934 4,485 National Western and Ozark National also file financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance and Missouri Department of Commerce and Insurance, respectively, which are significantly different from Consolidated Financial Statements prepared in accordance with GAAP. These differences are described in detail in Note (9) Statutory Information . Certain amounts in the prior year Consolidated Financial Statements have been reclassified to conform to the current year financial statement presentation. Investments Fixed Maturities and Equity Securities The Company purchases debt securities with the intent to hold to maturity. However, the Company's execution of a funds withheld reinsurance agreement introduced embedded derivative accounting requiring fair value reporting for debt securities. This precluded the Company from using a historical cost basis which is typically associated with a hold to maturity approach. Accordingly, all debt securities were classified as available-for-sale as of December 31, 2020. Investments in debt securities classified as securities available-for-sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of these securities are reflected as a component of Stockholders' Equity in Accumulated other comprehensive income (loss). The unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. With the execution of a funds withheld coinsurance agreement, the Company implemented accounting policies related to trading debt securities in its financial statements for debt securities purchased and held in the funds withheld assets. These trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreement to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Consolidated Financial Statements at their fair values with changes in their values reflected as a component of Net investment income in the Consolidated Statements of Earnings. Since these trading debt securities pertain to investment activities related to coinsurance agreements rather than as an income strategy based on active trading, they are classified as investing activities in the Consolidated Statements of Cash Flows. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts on purchased securities are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. As further disclosed under Accounting Standards and Changes in Accounting in this note, the Company adopted accounting guidance for current expected credit loss recognition as of January 1, 2020. The Company determines current expected credit losses for available-for-sale debt securities when fair value is less than amortized cost, interest payments are missed and the security is experiencing credit issues. The Company considers a number of factors in making a determination including: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline had occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Provisions to and releases from the allowance for credit losses are recorded in Net investment income in the Consolidated Statements of Earnings. Equity securities, common and non-redeemable preferred stocks are reported at fair value with changes in fair value included in Net investment income in the Consolidated Statement of Earnings. Alternative Investments The Company invests in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (i.e. investment funds). The Company does not have a controlling interest and is not the primary beneficiary for any of its alternative investments; accordingly, these investments are accounted for using the equity method of accounting where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect the pro rata ownership percentage of the operating results as indicated by the net asset value in the investment fund financial statements, which can be done on a lag of up to three months when investee information is not received in a timely manner. Alternative investments are reported in other long-term investments in the Consolidated Balance Sheets. The proportionate share of investment fund income is reported as a component of Net investment income in the Consolidated Statements of Earnings. Derivatives Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting, recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods, typically one year. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as Net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which further reduces the Company's credit exposure. At December 31, 2022 and 2021, the fair value of index options owned by the Company totaled $23.7 million and $101.6 million, respectively. Of these amounts, $(30.7) million and $54.4 million represent net unrealized gains/(losses) on the options held at December 31, 2022 and 2021, respectively. Additionally, the Company is a party to coinsurance funds withheld reinsurance agreements under which identified assets are maintained in funds withheld accounts. Under terms of these coinsurance funds withheld agreements, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurers creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability on the Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in the Net investment income in the Consolidated Statements of Earnings. The embedded derivative on reinsurance is classified as a Level 2 and Level 3 financial instrument in the fair value hierarchy because its valuation input is the fair value market adjustments on the underlying Level 2 and Level 3 debt securities. See Note (4) Fair Values of Financial Instruments for further details of fair value disclosures. In the Consolidated Statements of Cash Flows, changes in the funds withheld liability are reported in operating activities. Realized gains on funds withheld assets are transferred to the reinsurer and reported as investing activities in the Consolidated Statements of Cash Flows. The value of the embedded derivative at December 31, 2022 and 2021 was $335.0 million and $84.7 million, respectively. Mortgage Loans and Other Long-term Investments Mortgage loans and other long-term investments are primarily stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Mortgage loans made by the reinsurers under the funds withheld reinsurance agreements are reported at fair value. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Credit loss allowances for mortgage loan investments are recorded following the current expected credit loss (“CECL”) standards under GAAP. The Company uses the Weighted Average Remaining Maturity ("WARM") method, which uses an average annual charge-off rate applied to each mortgage loan risk category. The WARM method is also used to calculate the CECL allowance on unfunded mortgage loan commitments. The CECL allowance on unfunded mortgage loan commitments is reported in other liabilities in the Consolidated Balance Sheets, with changes in the CECL allowance related to unfunded commitments recorded through Other operating expenses in the Consolidated Statements of Earnings. Mortgage loans are placed on non-accrual status if there are concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans are classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest had been collected or the mortgage loan had been restructured such that the collection of interest was considered likely. Accrued Investment Income The accrual of investment income on invested assets is discontinued when it is determined that it is probable that the income will not be collected. Realized Gains and Losses on Investments Realized gains and losses for securities available-for-sale and trading securities are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. Fair Values Fair values of equity securities are based on quoted market prices in active markets when available. Fair values of fixed maturities are based on market prices in the fixed income markets. Fair values of derivative investments are based on the latest counterparty model market prices. Items not readily marketable are generally based on values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note (4) Fair Values of Financial Instruments for more information on fair value policies, including assumptions and the amount of securities priced using the valuation models. Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. Deferred Transaction Costs Deferred policy acquisition costs ("DPAC") include certain costs of successfully acquiring new insurance business, including commissions and other expenses related directly to the production of new business, to the extent recoverable from future policy revenues and gross profits (indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expenses as incurred). Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. These deferred sales inducements ("DSI") are also deferrable to the extent recoverable. For interest sensitive universal life and annuity products, these costs are amortized in relation to the present value of expected gross margins or gross profits on these policies. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred policy acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract are not written off, but instead are carried over to the new contract . Amortization of DPAC and DSI is reviewed each year and adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. The value of insurance in force business acquired ("VOBA") is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policy liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. The Company performs recoverability testing of the value of business acquired annually. The Company has recorded on the Consolidated Balance Sheet a deferred Cost of Reinsurance ("COR") asset having an original amount of $102.8 million associated with the funds withheld reinsurance transaction with Prosperity. This represents the amount of assets transferred at the closing date of the funds withheld agreement (debt securities, policy loans, and cash) in excess of the GAAP liability ceded plus a $48.0 million ceding commission paid to the reinsurer. The COR balance is amortized commensurate with the runoff of the ceded block of funds withheld business and the amortization expense reported in the Consolidated Statements of Earnings. Reinsurance The Company cedes insurance and investment contracts under a coinsurance with funds withheld arrangement, following reinsurance accounting for transactions that provides indemnification against loss or liability relating to insurance risk. To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge the Company's obligations as the primary insurer. Assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets. Under funds withheld reinsurance agreements, funds withheld assets consist of a segregated portfolio of cash and invested assets sufficient to support the current ceded balance of statutory reserves. The fair value of the funds withheld is recorded as a funds withheld liability and any excess or shortfall in relation to statutory reserves is settled periodically. Refer to Note (5) Reinsurance for more information. Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs, furniture and equipment and leasehold improvements, which are reported at cost less allowances for depreciation and amortization. Costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance are expensed. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of capitalized costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Capitalized software, property, and equipment had a carrying value of $165.6 million at December 31, 2022 and $165.3 million at December 31, 2021, and accumulated depreciation and amortization of $96.7 million at December 31, 2022 and $84.0 million at December 31, 2021. Depreciation and amortization expense for capitalized software, furniture and equipment, and leasehold improvements was $14.3 million, $13.0 million, and $11.9 million in 2022, 2021, and 2020, respectively. Other assets also include goodwill at December 31, 2022 and 2021 of $13.9 million related to the excess of the amounts paid to acquire companies over the fair value of other net tangible and intangible assets acquired. It represents the future economic benefits arising from assets acquired and liabilities assumed that could not be individually identified. Goodwill is not amortized but is subject to annual impairment analysis or more frequently if indicators are present. If indicators suggest an impairment may have occurred and suggest the value has declined below the carrying value of goodwill the balance is adjusted downward. Refer to Note (7) Goodwill and Specifically Identifiable Intangible Assets for further information. Other assets at December 31, 2022 and 2021 further include $6.7 million and $7.5 million, respectively, of identifiable intangible assets that were acquired in a business combination. These intangible assets include trademarks and trade names, internally developed software, and various insurance licenses. Identifiable intangible assets are amortized using a straight-line method over their estimated useful lives. Future Policy Benefits Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980, and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8.00%, and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as an embedded derivative. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The embedded derivatives are recorded at fair value. The fair value of the embedded derivative component of policy benefit reserves is estimated at each valuation date by (a) projecting policy and contract values and minimum guaranteed values over the expected lives of the policies and contracts and (b) discounting the excess of the projected value amounts at the applicable risk free interest rates adjusted for nonperformance risk related to those liabilities. The projections of policy and contract values are based upon best estimate assumptions for future policy growth and future policy decrements. Best estimate assumptions for future policy growth includes assumptions for the expected index credit on the next policy anniversary date which are derived from the fair values of the underlying call options purchased to fund such index credits and the expected costs of annual cost options purchased in the future to fund index credits beyond the next policy anniversary. The projections of minimum guaranteed contract values include the same best estimate assumptions for policy decrements as were used to project policy contract values. Other Policy Claims and Benefits Unearned revenue reserves are maintained that reflect the unamortized balance of charges assessed to interest sensitive contract holders which serve as compensation for services to be performed over future periods (policy premium loads). These charges are deferred and recognized in income over the period benefited using the same assumptions and factors used to amortize deferred policy acquisition costs. Share-based Compensation The Company accounts for share-based compensation under GAAP using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock appreciation rights, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected lapses from forfeiture or termination. Deferred Income Taxes Federal income taxes are accounted for under the asset and liability method. Under this method, 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 bases. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. Recognition of Premiums, Contract Revenues and Costs Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing costs over premium-paying periods of the policies. Revenues for interest sensitive universal life and annuity products consist of policy charges for the cost of insurance asset charges, administration charges, amortization of policy initiation fees and surrender charges assessed against policyholder account balances. The timing of revenue recognition as it relates to these charges and fees is determined based on the nature of such charges and fees. Policy charges for the cost of insurance, asset charges and policy administration charges are assessed on a daily or monthly basis and are recognized as revenue when assessed and earned. Certain policy initiation fees that represent compensation for services to be provided in the future are reported as unearned revenue and recognized in income over the periods benefited. Surrender charges are determined based upon contractual terms and are recognized upon surrender of a contract. Policy benefits and claims charged to expense include interest amounts credited to policyholder account balances and benefit claims incurred in excess of policyholder account balances during the period. Amortization of DPAC, DSI, VOBA, and COR balances are recognized as expense over the life of the underlying policies. All insurance-related revenues, benefits and expenses are reported net of reinsurance ceded. The cost of reinsurance ceded is recognized over the contract periods of the reinsurance agreements. Comprehensive Income Comprehensive income includes net income, as well as other comprehensive income items not recognized through net income. Other comprehensive income includes unrealized gains and losses on available-for-sale securities as well as the underfunded obligations for certain retirement and postretirement benefit plans. These items are included in accumulated other comprehensive income, net of tax and other offsets, in stockholders’ equity. The changes in unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss), excludes net investment gains and losses included in net income that represent transfers from unrealized to realized gains and losses. These transfers are further discussed in Note (2) Investments . The components of the underfunded obligation for certain retirement and postretirement benefit plans are provided in Note (14) Pension and Other Postretirement Plans . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. For example, significant estimates and assumptions are utilized in the valuation of investments, the determination of credit losses and impairments of investments, the recoverability and amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired, the calculation of policyholder liabilities and accruals and the determination of pension expense. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized, which could have a material impact on the Consolidated Financial Statements. Accounting Standards and Changes in Accounting Recent accounting pronouncements not yet adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This update pertains to long-duration contracts and improving the timeliness of rec |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Income The major components of net investment income are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross investment income: Debt and equity securities $ 298,965 309,082 373,479 Mortgage loans 20,691 20,155 13,162 Policy loans 2,626 2,667 3,361 Short-term investments 3,940 293 2,160 Other investment assets 27,409 16,321 12,698 Total investment income 353,631 348,518 404,860 Less investment expenses 2,420 2,762 2,412 Net investment income (excluding derivatives and trading securities) 351,211 345,756 402,448 Index option derivative gain (loss) (86,866) 120,718 14,754 Embedded derivative on reinsurance 250,230 84,725 — Trading securities market adjustments (214,935) 11,331 — Net investment income $ 299,640 562,530 417,202 (B) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company’s statement of financial position. The Company’s mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the Consolidated Balance Sheets. In general, the Company originates loans on high quality, income-producing properties such as shopping centers, freestanding retail stores, office buildings, storage units, industrial and sales or service facilities, selected apartment buildings, hotels, and health care facilities. The location of these properties are typically in major metropolitan areas that offer a potential for property value appreciation. Credit and default risk are minimized through strict underwriting guidelines and diversification of underlying property types and geographic locations. In addition to being secured by the property, mortgage loans with leases on the underlying property are supported by the lease payments. This approach has proven to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. The Company targets a minimum specified yield on mortgage loan investments determined by reference to currently available debt security instrument yields plus a desired amount of incremental basis points. A low interest rate environment and a competitive marketplace, had resulted in fewer loan opportunities being available that met the Company's required rate of return. Mortgage loan originations were further impeded by the COVID-19 pandemic and its effects upon the commercial real estate market. As stabilization returned to the commercial real estate market, the Company directed resources and effort towards expanding its mortgage loan investment portfolio. The rapid rise in interest rate levels during 2022 caused potential mortgage loan opportunities to fall outside the Company's underwriting criteria resulting in a lower level of originations. Mortgage loans originated by the Company totaled $47.4 million and $183.6 million for the years 2022 and 2021, respectively. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any revenue into the Consolidated Statements of Earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company has no loans past due 90 days which are accruing interest. Included in the mortgage loan investment balance at December 31, 2022, and 2021 were three mortgage loan investments made by Prosperity under the funds withheld reinsurance agreement totaling $19.3 million and $8.5 million, respectively. The Company has elected fair value measurement for these mortgage loans, and similar to trading debt securities, these loans are reported at fair market values in order to allow the market value fluctuation to be recorded directly in the Consolidated Statements of Earnings and to offset the embedded derivative liability change due to market value fluctuations. The Company held net investments in mortgage loans, after allowances for credit losses, totaling $505.7 million and $487.3 million at December 31, 2022 and 2021, respectively. The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Geographic Region: West South Central $ 220,357 43.2 $ 237,644 48.5 East North Central 60,520 11.9 61,397 12.6 South Atlantic 104,334 20.4 81,847 16.7 East South Central 18,753 3.7 20,069 4.1 West North Central 11,942 2.3 12,213 2.5 Pacific 11,924 2.3 13,800 2.8 Middle Atlantic 40,742 8.0 36,296 7.4 Mountain 42,023 8.2 26,613 5.4 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Property Type: Retail $ 169,618 33.2 $ 164,895 33.7 Office 140,092 27.4 142,824 29.2 Storage facility 79,853 15.7 73,401 15.0 Industrial 35,896 7.0 34,212 7.0 Hotel 23,431 4.6 23,748 4.8 Land/lots 4,605 0.9 4,597 0.9 Apartments 38,377 7.5 38,920 7.9 Residential 14,599 2.9 1,905 0.4 All other 4,124 0.8 5,377 1.1 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,757 19.7 $ 100,806 20.6 50% to 60% 145,093 28.4 128,191 26.2 60% to 70% 217,445 42.6 202,670 41.3 70% to 80% 47,300 9.3 58,212 11.9 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. All mortgage loans, excluding mortgage loans carried at fair value, are analyzed on an ongoing basis in order to monitor the financial quality of these assets. Mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list.” Among the criteria that would indicate a potential problem include: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. Specific mortgage loans on the internal watch list are analyzed to determine whether an impairment has occurred on any loan that would require a write down of its carrying value in the financial statements. The Company maintains a general valuation allowance following the GAAP standard for current expected credit losses ("CECL"). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of financial assets at the amount expected to be collected. For mortgage loan investments the Company employs the Weighted Average Remaining Maturity ("WARM") method in estimating current expected losses with respect to mortgage loan investments. The WARM method applies publicly available data of default incidence of commercial real estate properties by several defined segmentations combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. Changes in the allowance for current expected credit losses are reported in Net investment income in the Consolidated Statements of Earnings. The following table represents the mortgage loans allowance for credit losses. Years Ended December 31, 2022 2021 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 2,987 2,486 Provision (release) during the period 588 501 Balance, end of period $ 3,575 2,987 The Company does not recognize interest income on loans past due 90 days or more. The Company had no mortgage loans past due six months or more at December 31, 2022, 2021 and 2020. There was no interest income not recognized in 2022 or 2021. The contractual maturities of mortgage loan principal balances at December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Principal Balance by Contractual Maturity: Due in one year or less $ 2,299 0.5 $ 13,422 2.7 Due after one year through five years 184,439 36.1 127,766 26.1 Due after five years through ten years 205,712 40.3 222,444 45.4 Due after ten years through fifteen years 107,503 21.0 115,313 23.5 Due after fifteen years 10,869 2.1 11,280 2.3 Totals $ 510,822 100.0 $ 490,225 100.0 The Company's direct investments in real estate investments are not a significant portion of its total investment portfolio. These investments totaled approximately $27.7 million at December 31, 2022 and $28.6 million at December 31, 2021, and consist primarily of income-producing properties which are being operated by a wholly owned subsidiary of National Western. The Company recognized operating income on its direct investments in real estate of $3.0 million, $2.9 million and $2.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. The Company had real estate investments that were non-income producing for the preceding twelve months totaling $0.0 million, $0.1 million, and $0.4 million at December 31, 2022, 2021 and 2020, respectively. Net real estate gains for the year ended December 31, 2022, are related to the sale of land located in Freeport, Texas and Houston, Texas along with a retail property located in Ruidoso, New Mexico for a total combined net realized gain of $1.2 million. Net real estate loss for the year ended December 31, 2021 was related to the Ozark National's sale of their home office, parking garage and parking lot all located in Kansas City, Missouri at a net realized loss of $1.4 million. Net real estate gains for the year ended December 31, 2020 were $2.7 million, and related to the sale of a property located in Travis County Texas. (C) Debt Securities The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2022. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses (In thousands) Debt securities: U.S. Agencies $ 21,003 — (377) 20,626 — U.S. Treasury 2,813 6 (90) 2,729 — States and political subdivisions 476,338 668 (65,507) 411,499 — Foreign governments 62,964 — (17,076) 45,888 — Public utilities 681,785 117 (66,765) 615,137 — Corporate 6,199,886 1,940 (570,255) 5,631,571 — Commercial mortgage-backed 21,965 — (1,680) 20,285 — Residential mortgage-backed 337,186 183 (16,338) 321,031 — Asset-backed 634,820 168 (92,121) 542,867 — Totals $ 8,438,760 3,082 (830,209) 7,611,633 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Agencies $ 43,472 1,071 — 44,543 U.S. Treasury 2,469 21 — 2,490 States and political subdivisions 479,148 27,733 (921) 505,960 Foreign governments 62,979 293 (881) 62,391 Public utilities 745,359 39,919 (309) 784,969 Corporate 6,322,471 391,287 (12,805) 6,700,953 Commercial mortgage-backed 27,016 741 — 27,757 Residential mortgage-backed 530,702 18,921 — 549,623 Asset-backed 390,634 2,123 (2,497) 390,260 Totals $ 8,604,250 482,109 (17,413) 9,068,946 The Company's investment policy includes investing in high quality securities with the primary intention of holding these securities until the stated maturity. As such, the portfolio has exposure to interest rate risk, which is the risk that funds are invested today at a market interest rate and in the future interest rates rise causing the current market price on that investment to be lower. This risk is not a significant factor relative to the Company's buy and hold philosophy, since the intention is to receive the stated interest rate and principal at maturity to match liability requirements to policyholders. The Company manages these risks, for example, by purchasing mortgage-backed securities types that have more predictable cash flow patterns. The Company held below investment grade debt securities totaling $112.0 million and $153.0 million at December 31, 2022 and 2021, respectively. These amounts represent 1.2% and 1.4% of total invested assets for December 31, 2022 and 2021, respectively. Below investment grade holdings are the result of credit rating downgrades subsequent to purchase, as the Company only invests in high quality securities with ratings quoted as investment grade. Below investment grade securities generally have greater default risk than higher rated corporate debt. The issuers of these securities are usually more sensitive to adverse industry or economic conditions than are investment grade issuers. For the years ended December 31, 2022, 2021, and 2020, the Company recorded net realized gains totaling $6.4 million, $15.0 million and $21.1 million, respectively, related to the disposition of investment securities and real estate. Debt securities balances at December 31, 2022 and 2021 include Ozark National holdings of $674.8 million and $823.0 million in available-for-sale, respectively. At the acquisition date of Ozark National the Company employed purchase accounting procedures in accordance with GAAP which revalued the acquired investment portfolio to their fair values as of the date of the acquisition. These fair values became the book values for Ozark National from that point going forward. The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2022. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: U.S. Government agencies $ 20,626 (377) — — 20,626 (377) U.S. Treasury 1,749 (90) — — 1,749 (90) States and political subdivisions 346,009 (55,014) 28,420 (10,493) 374,429 (65,507) Foreign governments 22,591 (7,658) 23,296 (9,420) 45,887 (17,078) Public utilities 601,824 (61,970) 10,747 (4,795) 612,571 (66,765) Corporate bonds 4,985,075 (432,492) 434,625 (137,763) 5,419,700 (570,255) Commercial mortgage-backed 20,285 (1,680) — — 20,285 (1,680) Residential mortgage-backed 307,410 (16,338) — — 307,410 (16,338) Asset-backed 368,132 (59,936) 156,719 (32,185) 524,851 (92,121) Total $ 6,673,701 (635,555) 653,807 (194,656) 7,327,508 (830,211) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2021. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Debt securities: States and political subdivisions $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate bonds 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Home equity 188,960 (2,497) — — 188,960 (2,497) Total $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) Unrealized losses increased in 2022 from 2021 amounts primarily as a result of an increase in market interest rate levels during 2022. The ten-year U.S. Treasury bond increased 237 basis points during the year ended December 31, 2022. The amortized cost and fair value of investments in available-for-sale debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 719,108 714,084 Due after 1 year through 5 years 2,866,915 2,747,445 Due after 5 years through 10 years 1,812,394 1,625,461 Due after 10 years 2,046,372 1,640,459 7,444,789 6,727,449 Mortgage and asset-backed securities 993,971 884,184 Total before allowance for credit losses 8,438,760 7,611,633 Allowance for credit losses — — Total $ 8,438,760 7,611,633 The Company uses the specific identification method in computing realized gains and losses. The table below presents realized gains and losses for the periods indicated. Years Ended December 31, 2022 2021 2020 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 5,304 16,377 5,677 Realized losses on disposal (193) (5) — Held-to-maturity debt securities: Realized gains on redemption — — 12,734 Realized losses on redemption — — (1) Real estate 1,244 (1,421) 2,661 Mortgage loans — — — Other — (1) — Totals $ 6,355 14,950 21,071 Disposals in the held-to-maturity category during the year ended December 31, 2020 represent calls initiated by the credit issuer of the debt security. At year-end 2020, the Company transferred all of its held-to-maturity debt securities to the available-for-sale category as a result of entering into a funds withheld reinsurance agreement effective December 31, 2020. The Company's policy was to initiate disposals of debt securities in the held-to-maturity category only in instances in which the credit status of the issuer came into question and the realization of all or a significant portion of the investment principal of the holding was deemed to be in jeopardy. Except for the total U.S. government agency mortgage-backed securities held, the Company had no other investments in any entity in excess of 10.0% of stockholders' equity at December 31, 2022 or 2021. The following table presents the available-for-sale debt securities allowance for credit losses for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — (Releases)/provision during period — — Balance, end of period $ — — The Company determines current expected credit losses for available-for-sale debt securities when fair value is less than amortized cost, interest payments are missed, and the security is experiencing credit issues. Provisions to and releases from the allowance for credit losses are recorded in Net investment income in the Consolidated Statements of Earnings. Based on its review, the Company determined none of these investments required an allowance for credit loss at December 31, 2022 or 2021. The Company's operating procedures include monitoring the investment portfolio on an ongoing basis for any changes in issuer facts and circumstances that might lead to future need for a credit loss allowance. (D) Net Unrealized Gains (Losses) Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 (In thousands) Gross unrealized gains $ 3,082 482,109 Gross unrealized losses (830,209) (17,413) Adjustments for: Deferred policy acquisition costs and sales inducements 295,527 (178,340) Deferred Federal income tax expense 111,636 (60,135) Net unrealized gains (losses) on investment securities $ (419,964) 226,221 (E) Transfer of Securities There were no transfers in 2022 or 2021 between debt securities available-for-sale and trading. The Company does not classify any debt securities as held-to-maturity. |
Derivative Investments
Derivative Investments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Investments | DERIVATIVE INVESTMENTS Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting in which future policy benefits are recorded as discounted debt instruments and accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statements of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as Net investment income in the Consolidated Statements of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. The Company maintains two coinsurance funds withheld reinsurance agreement under which identified assets with underlying unrealized gains (losses) are maintained in a funds withheld account. While the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurers, creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with GAAP. The fair value of the embedded derivative on reinsurance is computed as the unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability balance on the Consolidated Balance Sheets with changes in the embedded derivative on reinsurance reported in Net investment income in the Consolidated Statements of Earnings. Changes in the funds withheld liability are reported in operating activities in the Consolidated Statements of Cash Flows. The tables below present the fair value of derivative instruments as of December 31, 2022 and 2021. December 31, 2022 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 23,669 Fixed-index products Universal Life and Annuity Contracts $ 62,258 Embedded derivative on reinsurance contract Funds Withheld Liability (334,955) Total $ 23,669 $ (272,697) December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 101,622 Fixed-index products Universal Life and Annuity Contracts $ 142,761 Embedded derivative on reinsurance contract Funds Withheld Liability (84,725) Total $ 101,622 $ 58,036 The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2022, 2021 and 2020. Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2022 2021 2020 (In thousands) Equity index options Net investment income $ (86,865) 120,718 14,754 Fixed-index products Universal life and annuity contract interest 89,415 (133,327) (44,970) Embedded derivative on reinsurance contract Net investment income 250,230 84,725 — $ 252,780 72,116 (30,216) The embedded derivative liability on fixed-index products, the change of which is recorded in universal life and annuity contract interest in the Consolidated Statements of Earnings, includes projected interest credits that are offset by the expected collectability by the Company of asset management fees on fixed-index products. The anticipated asset management fees to be collected increases or decreases based upon the most recent performance of index options and adds to or reduces the offset applied to the embedded derivative liability (increasing or decreasing contract interest expense). In the years ended December 31, 2022, 2021, and 2020, the change in the embedded derivative liability due to the expected collectability of asset management fees increased contract interest expense by $0.0 million, $6.5 million, and $34.4 million, respectively. During 2020, the Company changed its budget for purchasing these options to match the collection of asset management fees with the payoff from out-of-the-money options, thereby removing the option premium that was previously being paid for the probability or expectation of collecting asset management fees ("out-of-the-money" hedging). Consequently, for annuity products having asset management fee features, the remaining one-year options purchased under the prior method expired during 2021 and were replaced by out-of-the-money hedges, Accordingly, the embedded derivative liability component due to the projected collectability of asset management fees no longer existed in 2022. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3"). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). The Company's Level 2 liabilities include the embedded derivative on reinsurance. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are debt securities available-for-sale, trading securities, over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations, certain equity-index product-related embedded derivatives, and an embedded derivative on reinsurance. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,611,633 — 7,148,838 462,795 Debt securities, trading 1,065,993 — 942,756 123,237 Equity securities 22,076 18,407 3,669 — Mortgage loans 19,334 — — 19,334 Derivatives, index options 23,669 — — 23,669 Short-term investments 3,937 — 3,937 — Total assets $ 8,746,642 18,407 8,099,200 629,035 Policyholder account balances (a) $ 62,258 — — 62,258 Other liabilities (b) (314,413) — (324,712) 10,299 Total liabilities $ (252,155) — (324,712) 72,557 December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. December 31, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2022 $ 326,962 74,822 101,622 8,469 511,875 Total realized and unrealized gains (losses): Included in net earnings — (9,709) (86,866) (1,703) (98,278) Included in other comprehensive income (loss) (41,424) — — — (41,424) Purchases, sales, issuances and settlements, net: Purchases 209,616 58,389 54,190 12,693 334,888 Sales — — — — — Issuances — — — — — Settlements (32,359) (265) (45,277) (125) (78,026) Transfers into (out of) Level 3 — — — — — Balance at end of period December 31, 2022 $ 462,795 123,237 23,669 19,334 629,035 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — (9,709) (30,779) (1,703) (42,191) Benefits and expenses — — — — — Total $ — (9,709) (30,779) (1,703) (42,191) December 31, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 142,761 7,869 150,630 Total realized and unrealized gains (losses): Included in net earnings (11,412) (89,416) 14,221 (86,607) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 54,190 — 54,190 Sales — — — — Issuances — — 1,015 1,015 Settlements — (45,277) (2,563) (47,840) Transfers into (out of) Level 3 1,169 — — 1,169 Balance at end of period December 31, 2022 $ (10,243) 62,258 20,542 72,557 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income (11,412) — — (11,412) Benefits and expenses — (30,779) 14,221 (16,558) Total $ (11,412) (30,779) 14,221 (27,970) December 31, 2021 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2021 $ — — 132,821 — 132,821 Total realized and unrealized gains (losses): Included in net earnings — 757 120,717 412 121,886 Included in other comprehensive income (loss) 876 — — — 876 Purchases, sales, issuances and settlements, net: Purchases 245,456 75,265 47,203 8,103 376,027 Sales — — — — — Issuances — — — — — Settlements (13,031) (1,200) (199,119) (46) (213,396) Transfers into (out of) Level 3 93,661 — — — 93,661 Balance at end of period December 31, 2021 $ 326,962 74,822 101,622 8,469 511,875 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — 757 54,420 412 55,589 Benefits and expenses — — — — — Total $ — 757 54,420 412 55,589 December 31, 2021 Other Liabilities Policyholder Account Balances Share-based Comp Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 $ 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 133,326 5,581 138,907 Included in other comprehensive income (loss) — — — Purchases, sales, issuances and settlements, net: Purchases 47,203 — 47,203 Sales — — — Issuances — 182 182 Settlements (199,119) (4,096) (203,215) Transfers into (out of) Level 3 — — — Balance at end of period December 31, 2021 $ 142,761 7,869 150,630 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — — Benefits and expenses 54,420 5,581 60,001 Total $ 54,420 5,581 60,001 The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: December 31, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 76,003 Discounted cash flow Discount rate 4.32% - 7.28% (5.79%) Derivatives, index options 23,669 Broker prices Implied volatility 12.94% - 34.75% (19.32%) Mortgage loans 19,334 Discounted cash flow Spread 150 - 300 bps Total assets $ 119,006 Liabilities: Policyholder account balances $ 62,258 Deterministic cash flow model Projected option cost 0.00% - 6.07% (0.65%) Share based compensation 20,542 Black-Scholes model Expected term 0.9 to 10.0 years Expected volatility 36.18% Total liabilities $ 82,800 December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 113,268 Discounted cash flow Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flow Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 The tables above exclude certain securities for which fair values are obtained and unadjusted from third party vendors, including the funds withheld trading debt securities supporting the embedded derivative liability. Realized gains (losses) on debt securities are reported in the Consolidated Statements of Earnings as Net realized investment gains (losses) with liabilities reported as expenses. Unrealized gains (losses) on available-for-sale debt securities are reported as Other comprehensive income (loss) within the stockholders’ equity section of the Consolidated Balance Sheets. Unrealized gains (losses) on trading debt securities are reported in the Consolidated Statements of Earnings as Net investment income. The fair value hierarchy classifications are reviewed each reporting period. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. Reclassifications are reported as transfers into and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. GAAP defines fair value, establishes a framework for measuring fair value, and requires additional disclosures about fair value measurements. Fair value is based on an exit price, which is the 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 objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. GAAP also establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a variety of factors including the type of instrument and the characteristics of instruments. Financial instruments with readily available active quoted prices or those for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measures. The following methods and assumptions were used in estimating the fair value of financial instruments and liabilities during the periods presented in the Consolidated Financial Statements. Fixed maturity securities. Fair values for debt securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services with any adjustments based upon observable data. In the cases where prices are unavailable for these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Equity securities. Fair values for equity securities are based upon quoted market prices, where available. For equity securities that are not actively traded, estimated values are based on values of comparable issues or audited financial statements of the issuer. Cash and cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values due to the relatively short time between the purchase of the instrument and its expected repayment or maturity. Mortgage and other loans. The fair values of performing mortgage and other loans are estimated by discounting scheduled cash flows through the scheduled maturities of the loans, using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Fair values for significant nonperforming loans are based on recent internal or external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Policy Loans. Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are collateralized by the cash surrender value of the underlying insurance policy. Derivatives. Fair values for index (call) options are based on counterparty market prices. The counterparties use market standard valuation methodologies incorporating market inputs for volatility and risk free interest rates in arriving at a fair value for each option contract. Prices are monitored for reasonableness by the Company using analytical tools. There are no performance obligations related to the call options purchased to hedge the Company’s fixed-index life and annuity policy liabilities. Fair values for embedded derivatives on reinsurance contracts are classified consistently with the underlying assets withheld under coinsurance funds withheld agreements, which were Level 2 fixed maturity securities. Valuations are obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Life interest in Libbie Shearn Moody Trust. The fair value of the life interest asset is determined annually based on assumptions as to future distributions from the trust over the life expectancy of Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI. These estimated cash flows are discounted at a rate consistent with uncertainties relating to the amount and timing of future cash distributions subject to the maximum amount to be received by the Company from life insurance proceeds in the event of Mr. Moody's death. The carrying value or cost basis of the life interest asset is amortized ratably over the remaining expected life of Mr. Moody, updated for changes in expected mortality. Annuity and supplemental contracts. Fair values for the Company's insurance contracts other than annuity contracts are not required to be disclosed. This includes the Company's traditional and universal life products. Fair values for immediate annuities without mortality features are based on the discounted future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including fixed-index annuities, are determined using estimated projected future cash flows discounted at the rate that would be required to transfer the liability in an orderly transaction. The fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with the duration of amounts due under insurance and annuity contracts. The Company utilizes independent third-party pricing services to determine the majority of its fair values of investment securities. The independent pricing services provide quoted market prices when available or otherwise incorporate a variety of observable market data in their valuation techniques including reported trading prices, broker-dealer quotes, bids and offers, benchmark securities, benchmark yields, credit ratings, and other reference data. The Company reviews prices received from service providers for unusual fluctuations to ensure that the prices represent a reasonable estimate of fair value but generally accepts the price identified from the primary pricing service. When quoted market prices in active markets are unavailable, the Company determines fair values using various valuation techniques and models based on a range of observable market inputs including pricing models, quoted market price of publicly traded securities with similar duration and yield, time value, yield curve, prepayment speeds, default rates, and discounted cash flow. In most cases, these estimates are determined based on independent third party valuation information, and the amounts are disclosed in Level 2 of the fair value hierarchy. Generally, the Company obtains a single price or quote per instrument from independent third parties to assist in establishing the fair value of these investments. Fair value measurements for investment securities where there exists limited or no observable data are calculated using the Company’s estimates based on current interest rates, credit spreads, liquidity premium or discount, the economic and competitive environment, unique characteristics of the security, and other pertinent factors. These estimates are derived a number of ways including, but not limited to, pricing provided by brokers where the price indicates reliability as to value, fair values of comparable securities incorporating a spread adjustment (for maturity differences, credit quality, liquidity, and collateralization), discounted cash flow models and margin spreads, bond yield curves, and observable market prices and exchange transaction information not provided by external pricing services. The resulting prices may not be realized in an actual sale or immediate settlement and there may be inherent weaknesses in any calculation technique. In addition, changes in underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 7,535,630 — 7,148,838 386,792 Priced internally 76,003 — — 76,003 Subtotal 7,611,633 — 7,148,838 462,795 Debt securities, trading: Priced by third-party vendors 1,065,993 — 942,756 123,237 Subtotal 1,065,993 — 942,756 123,237 Equity securities: Priced by third-party vendors 22,076 18,407 3,669 — Priced internally — — — — Subtotal 22,076 18,407 3,669 — Mortgage loans: Priced internally 19,334 — — 19,334 Subtotal 19,334 — — 19,334 Derivatives, index options: Priced by third-party vendors 23,669 — — 23,669 Subtotal 23,669 — — 23,669 Short-term Investments: Priced by third-party vendors 3,937 — 3,937 — Subtotal 3,937 — 3,937 — Total $ 8,746,642 18,407 8,099,200 629,035 Percent of total 100.0 % 0.2 % 92.6 % 7.2 % The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2022 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,611,633 7,611,633 — 7,148,837 462,796 Debt securities, trading 1,065,993 1,065,993 — 942,756 123,237 Cash and cash equivalents 295,270 295,270 295,270 — — Mortgage loans 505,730 457,873 — — 457,873 Real estate 27,712 47,867 — — 47,867 Policy loans 70,495 87,478 — — 87,478 Other loans 31,586 31,915 — — 31,915 Derivatives, index options 23,669 23,669 — — 23,669 Equity securities 22,076 22,076 18,407 3,669 — Short-term investments 3,937 3,937 — 3,937 — Life interest in Libbie Shearn Moody Trust 7,100 12,775 — — 12,775 Other investments 4,513 26,230 — — 26,230 LIABILITIES Deferred annuity contracts $ 6,054,030 4,405,510 — — 4,405,510 Immediate annuity and supplemental contracts 397,318 373,346 — — 373,346 December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real Estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity Securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCENational Western reinsures the risk on any one life in excess of $500,000. Total life insurance in force was $13.9 billion and $15.0 billion at December 31, 2022 and 2021, respectively. Of these amounts, life insurance in force totaling $3.0 billion and $3.3 billion was ceded to reinsurance companies on a yearly renewable term basis at December 31, 2022 and 2021, respectively. In accordance with these reinsurance contracts, reinsurance receivables, including amounts related to claims incurred but not reported and liabilities for future policy benefits, totaled $91.2 million and $31.6 million at December 31, 2022 and 2021, respectively. Premiums and contract revenues were reduced by $23.7 million, $22.0 million and $21.0 million for reinsurance premiums ceded during 2022, 2021 and 2020, respectively. Benefit expenses were reduced by $12.7 million, $29.3 million and $8.4 million, for reinsurance recoveries during 2022, 2021 and 2020, respectively. In addition to the above, National Western is a party to a Funds Withheld Coinsurance Agreement ("Prosperity Agreement") with Prosperity Life Assurance Limited ("Prosperity"), an unauthorized reinsurer organized under the Laws of Bermuda. Under the Prosperity Agreement, National Western ceded, on a coinsurance with funds withheld basis, a 100% quota share of contractual statutory reserve liabilities approximating $1.7 billion pertaining to a group of in force fixed rate and payout annuity contracts issued by the Company on or before December 31, 2020, and paid to Prosperity a ceding commission of $48.0 million. The annuity statutory reserve liabilities ceded to Prosperity are secured by the funds withheld assets and a comfort trust established by Prosperity under which National Western is the sole beneficiary. The funds withheld assets and the assets in the trust are required to remain at a value prescribed under the Prosperity Agreement sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. If the value of the funds withheld assets and the comfort trust account assets were ever to be less than the prescribed amount under the Prosperity Agreement, Prosperity is required to deposit funds into the trust for the amount of any shortfall. At December 31, 2022 and 2021, the current balance of policy benefit liabilities ceded on a statutory basis were $1.3 billion and $1.5 billion, respectively. At the date of the Prosperity Agreement, December 31, 2020, the Company recorded as an asset on the Consolidated Balance Sheet a deferred cost of reinsurance ("COR") amount of $102.8 million associated with the funds withheld reinsurance transaction. This represents the amount of assets transferred at the closing date of the Prosperity Agreement (debt securities, policy loans, and cash) in excess of the GAAP liability ceded to Prosperity. This COR balance is amortized as a component of benefits and expenses commensurate with the runoff of the ceded block of funds withheld business. COR amortization expense for the years ended December 31, 2022 and 2021 was $11.4 million and $13.2 million, respectively. On July 27, 2022, National Western entered into a second Funds Withheld Coinsurance Agreement ("Aspida Agreement") with Aspida Life Re Ltd. (“Aspida"), a reinsurer organized under the Laws of Bermuda. Pursuant to the Aspida Agreement, the Company agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain liabilities pertaining to an in-force block of annuity contracts issued by the Company before July 1, 2022. The amount of statutory reserve liabilities ceded by the Company to Aspida under the agreement approximated $250.0 million. In addition, under the Aspida Agreement, the Company agreed to cede, on a coinsurance with funds withheld basis, a specified quota share of certain annuity contracts issued or to be issued by the Company on or after July 1, 2022. As consideration for Aspida’s commitment to provide reinsurance, the Company transferred into a funds withheld account permitted assets approximating the statutory reserve liabilities ceded to Aspida. In accordance with the Aspida Agreement and in order to provide additional security for Aspida’s obligations, the parties established a trust account for the benefit of the Company in which Aspida maintains certain assets and grants the Company a first priority security interest in such assets. At the date of the Aspida Agreement, the Company recorded as a liability (deferred revenue) on the Consolidated Balance Sheet a deferred Gain on Reinsurance amount of $30.8 million associated with the funds withheld reinsurance transaction. This represents the net amount of GAAP reserves, deferred policy acquisition costs and sales inducements reinsured at the closing date, plus a $68.2 million ceding commission payable by Aspida, which in the aggregate was in excess of the Statutory Reserves ceded to Aspida. This balance is amortized and included in Other revenues in the Consolidated Statements of Earnings. For the year ended December 31, 2022, amortization revenue from the deferred Gain on Reinsurance was $1.4 million. Ozark National generally reinsures the risk on any one life in excess of $200,000. Total life insurance in force was $5.7 billion and $5.9 billion at December 31, 2022 and 2021, respectively. Of this amount, life insurance in force totaling $0.5 billion and $0.5 billion was ceded to reinsurance companies at December 31, 2022 and 2021, respectively. In accordance with the reinsurance contracts, reinsurance receivables, including amounts related to claims incurred but not reported and liabilities for future policy benefits, totaled $32.4 million and $32.4 million at December 31, 2022 and 2021, respectively. Premiums and contract revenues were reduced by $2.8 million and $2.8 million for reinsurance premiums ceded during 2022 and 2021, respectively. Benefit expenses were reduced by $2.6 million and $2.4 million for reinsurance recoveries during 2022 and 2021, respectively. A contingent liability exists with respect to reinsurance, as the Company remains liable if the reinsurance companies are unable to perform and meet their obligations under the existing agreements. The Company does not assume reinsurance but Ozark National maintains a closed block of assumed reinsurance. |
Deferred Transaction Costs
Deferred Transaction Costs | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Deferred Transaction Costs | DEFERRED TRANSACTION COSTS Deferred transaction costs include deferred policy acquisition costs (DPAC), deferred sales inducements (DSI), value of business acquired (VOBA), and cost of reinsurance (COR). A summary of information related to DPAC is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 569,839 382,080 723,972 Deferrals 45,444 77,306 69,857 Amortization, net of interest: Amortization, excluding unlocking, net of interest (101,477) (84,349) (107,917) Unlocking (559) 36,510 (22,358) Adjustments related to unrealized (gains) losses 416,397 158,292 (261,186) Reinsurance (19,858) — (20,288) Balance, end of year $ 909,786 569,839 382,080 A summary of information related to DSI is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 78,136 43,845 104,359 Deferrals 4,039 18,118 10,344 Amortization, net of interest: Amortization, excluding unlocking, net of interest (14,130) (14,755) (18,363) Unlocking 99 993 (4,445) Adjustments related to unrealized (gains) losses 57,498 29,935 (43,557) Reinsurance (11,243) — (4,493) Balance, end of year $ 114,399 78,136 43,845 A summary of information related to VOBA is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 154,499 162,968 138,071 Business acquired — — — Other increase — — 35,125 Amortization: Amortization, excluding unlocking (8,005) (8,469) (10,228) Unlocking — — — Balance as of end of year $ 146,494 154,499 162,968 During the year ended December 31, 2020, the cash value of certain acquired reserves was increased which resulted in a commensurate increase in both the traditional life reserve liability and the related VOBA balance reported on the Consolidated Balance Sheets. Estimated future amortization of VOBA, net of interest (in thousands), as of December 31, 2022, is as follows: 2023 $ 7,673 2024 7,363 2025 7,172 2026 7,030 2027 6,823 A summary of information related to COR is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 89,686 102,840 — Additions — — 102,840 Amortization (11,358) (13,154) — Balance as of end of year $ 78,328 89,686 102,840 The COR balance was recorded on the effective date of the funds withheld coinsurance agreement with Prosperity, December 31, 2020. Accordingly, no amortization was recorded in 2020. |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | GOODWILL AND SPECIFICALLY IDENTIFIABLE INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill were as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 13,864 Goodwill resulting from business acquisition — — — Gross goodwill, before impairments 13,864 13,864 13,864 Accumulated impairment as of beginning of year — — — Current year impairments — — — Net goodwill as of end of year $ 13,864 13,864 13,864 The Company periodically evaluates the goodwill balance for potential impairment and, as of the dates presented, determined that there was sufficient evidence to support not impairing the balance. Identifiable Intangible Assets The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows. December 31, 2022 December 31, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (731) 2,800 (545) Internally developed software 7 3,800 (2,126) 3,800 (1,583) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,857) 9,600 (2,128) The value of trademarks was estimated using the relief from royalty method, based on the assumption that in lieu of ownership, an organization would be willing to pay a royalty in order to receive the related benefits of using the brand. The value of insurance licenses was estimated using the market approach to value, based on values paid for licenses in recent shell company transactions. The value of internally developed software was estimated using the replacement cost method. Trademarks, trade names and internally developed software are amortized using a straight-line method over their estimated useful lives. These intangibles assets are evaluated for impairment if indicators of impairment arise. Insurance licenses were determined to have an indefinite useful life. The Company evaluates the useful life of the insurance licenses at each reporting period to determine whether the useful life remains indefinite. As of December 31, 2022, expected amortization expenses relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected Amortization (In thousands) 2023 $ 730 2024 730 2025 730 2026 232 2027 187 Thereafter 1,134 $ 3,743 |
Segment and Other Operating Inf
Segment and Other Operating Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION (A) Operating Segment Information The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and ONL and Affiliates (previously referred to as "Acquired Businesses"). These segments are organized based on product types, geographic marketing areas, and business groupings. Ozark National and NIS have been combined into a separate segment given their inter-related marketing and sales approach which consists of a coordinated sale of a non-participating whole life insurance product (Ozark National) and a mutual fund investment product (NIS). A fifth category "All Others" primarily includes investments and earnings of non-operating subsidiaries as well as other remaining investments and assets not otherwise supporting specific segment operations. In accordance with GAAP guidance for segment reporting, the Company excludes or segregates realized investment gains and losses. A summary of segment information is provided below. Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2022: Selected Balance Sheet Items: Deferred transaction costs $ 233,460 270,035 584,158 161,354 — 1,249,007 Total segment assets 1,737,992 958,699 8,521,636 1,008,004 335,343 12,561,674 Future policy benefits 1,533,155 678,103 6,409,784 797,292 — 9,418,334 Other policyholder liabilities 25,596 15,560 118,615 15,318 — 175,089 Funds withheld liability — — 1,333,036 — — 1,333,036 Condensed Income Statements: Premiums and contract revenues $ 59,379 76,115 15,353 76,033 — 226,880 Net investment income 17,671 1,681 229,324 29,198 21,766 299,640 Other revenues 93 71 6,777 11,539 7,042 25,522 Total revenues 77,143 77,867 251,454 116,770 28,808 552,042 Life and other policy benefits 25,090 20,777 48,029 65,574 — 159,470 Amortization of deferred transaction costs 18,968 19,643 73,926 8,861 — 121,398 Universal life and annuity contract interest 758 (3,840) 18,760 — — 15,678 Other operating expenses 31,046 20,146 58,799 19,579 6,247 135,817 Federal income taxes 251 4,139 10,169 4,580 4,417 23,556 Total expenses 76,113 60,865 209,683 98,594 10,664 455,919 Segment earnings $ 1,030 17,002 41,771 18,176 18,144 96,123 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2021: Selected Balance Sheet Items: Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Income Statements: Premiums and contract revenues $ 51,294 79,085 16,809 77,109 — 224,297 Net investment income 90,006 52,227 368,234 26,989 25,074 562,530 Other revenues 105 95 5,374 12,654 4,086 22,314 Total revenues 141,405 131,407 390,417 116,752 29,160 809,141 Life and other policy benefits 24,416 26,481 67,515 69,165 — 187,577 Amortization of deferred transaction costs 9,580 (11,118) 61,881 9,118 — 69,461 Universal life and annuity contract interest 77,246 31,696 104,242 — — 213,184 Other operating expenses 26,959 19,679 53,817 20,244 5,913 126,612 Federal income taxes 656 13,249 21,094 3,675 4,762 43,436 Total expenses 138,857 79,987 308,549 102,202 10,675 640,270 Segment earnings $ 2,548 51,420 81,868 14,550 18,485 168,871 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2020: Selected Balance Sheet Items: Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Income Statements: Premiums and contract revenues $ 53,834 88,167 17,025 78,921 — 237,947 Net investment income 54,516 27,273 290,576 26,383 18,454 417,202 Other revenues 58 67 43 10,118 8,236 18,522 Total revenues 108,408 115,507 307,644 115,422 26,690 673,671 Life and other policy benefits 18,471 14,084 31,043 67,739 — 131,337 Amortization of deferred transaction costs 17,661 24,929 87,133 10,780 — 140,503 Universal life and annuity contract interest 44,782 (2,087) 163,555 — — 206,250 Other operating expenses 25,730 17,829 36,870 18,454 5,701 104,584 Federal income taxes (benefit) 265 9,143 (1,649) 4,413 3,159 15,331 Total expenses 106,909 63,898 316,952 101,386 8,860 598,005 Segment earnings (loss) $ 1,499 51,609 (9,308) 14,036 17,830 75,666 Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 226,880 224,297 237,947 Net investment income 299,640 562,530 417,202 Other revenues 25,522 22,314 18,522 Realized gains on investments 6,355 14,950 21,071 Total consolidated premiums and other revenues $ 558,397 824,091 694,742 Years Ended December 31, 2022 2021 2020 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 23,556 43,436 15,331 Taxes on realized gains on investments 1,334 3,140 4,425 Total consolidated Federal income taxes $ 24,890 46,576 19,756 Years Ended December 31, 2022 2021 2020 (In thousands) Net Earnings : Total segment earnings $ 96,123 168,871 75,666 Realized gains on investments, net of taxes 5,021 11,810 16,646 Total consolidated net earnings $ 101,144 180,681 92,312 December 31, 2022 2021 2020 (In thousands) Assets : Total segment assets $ 12,561,674 13,426,665 13,753,320 Other unallocated assets 538,553 903,524 894,950 Total consolidated assets $ 13,100,227 14,330,189 14,648,270 (B) Geographic Information A portion of the Company's premiums and contract revenues are from international policies with residents of countries other than the United States. Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) United States $ 163,733 156,614 165,217 Brazil 21,043 20,535 22,190 Taiwan 11,566 10,954 11,433 Peru 8,543 8,635 9,167 Venezuela 8,090 8,560 9,949 Haiti 7,519 4,453 4,708 Other foreign countries 32,866 39,382 38,969 Revenues, excluding reinsurance premiums 253,360 249,133 261,633 Reinsurance premiums (26,480) (24,836) (23,686) Total premiums and contract revenues $ 226,880 224,297 237,947 Premiums and contract revenues are attributed to countries based on the location of the policyholder. All premiums from international policies are renewal premiums. The Company has no significant assets, other than certain limited financial instruments, located in countries other than the United States. (C) Major Agency Relationships A portion exceeding 10% of National Western's annual annuity sales has been sold through one or more of its top independent marketing agencies in recent years. Business from one top agency accounted for approximately 13% of annuity sales in 2022. In 2022, one domestic independent marketing agency exceeded 10% of total Domestic Life sales accounting for 54%. Ozark National did not have a single distributor accounting for 10% or more of its sales in 2022. |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Statutory Information | STATUTORY INFORMATION Domiciled in Colorado, National Western prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance, while Ozark National, domiciled in Missouri, follows the accounting practices prescribed or permitted by the Missouri Department of Commerce and Insurance. These insurance departments have adopted the provisions of the National Association of Insurance Commissioners' ("NAIC") Statutory Accounting Practices (“SSAP”) as the basis for its statutory accounting practices. The following are major differences between GAAP and SSAP. 1. The Company accounts for universal life and annuity contracts based on the provisions of GAAP. The basic difference between GAAP and SSAP with respect to certain long-duration contracts is that deposits for universal life and annuity contracts are not reflected as revenues, and surrenders and certain other benefit payments are not reflected as expenses. Only contracts with no insurance risk qualify for such treatment under statutory accounting practices. For all other contracts, SSAP does reflect such items as revenues and expenses. A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Annuity deposits $ 236,931 462,632 358,900 Universal life insurance deposits 187,987 270,717 267,809 Traditional life and other premiums 94,379 96,429 98,711 Totals $ 519,297 829,778 725,420 2. SSAP requires commissions and related acquisition costs to be expensed as incurred; under GAAP these items are deferred and amortized. 3. For SSAP, liabilities for future policy benefits for life insurance policies are calculated by the net level premium method, the commissioners reserve valuation method, or principles-based reserving under VM-20. Future policy benefit liabilities for annuities are calculated based on the continuous commissioners annuity reserve valuation method and provisions of Actuarial Guidelines 33 and 35. 4. Deferred Federal income taxes are provided for temporary differences which are recognized in the Consolidated Financial Statements in a different period than for Federal income tax purposes. Deferred taxes are also recognized under SSAP; however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets. The change in the deferred taxes under SSAP is recorded directly in surplus, rather than as a component of income tax expense. 5. For SSAP, debt securities are recorded at amortized cost, except for securities in or near default, which are reported at fair value. Under GAAP, debt securities are carried at amortized cost or fair value based on their classification as either held-to-maturity, available-for-sale, or trading. 6. Investments in subsidiaries are recorded as affiliated common stock investments at their respective SSAP investment value under statutory accounting with the change in value recorded directly in surplus; under GAAP the financial statements of the subsidiaries have been consolidated with those of the Company. 7. The asset valuation reserve and interest maintenance reserve are investment valuation reserves prescribed by SSAP; under GAAP these valuation reserves are not required and have been eliminated. 8. Beginning January 1, 2022, derivative investments were accounted for under a Colorado statutory permitted practice in which index option derivatives are recorded at amortized cost; under GAAP, index option derivatives are carried at fair value. 9. GAAP requires that embedded derivatives on funds withheld reinsurance agreements in which the credit risk of funds held is transferred to the reinsurer, are recognized as a component of the funds withheld liability. SSAP does not follow embedded derivative accounting. 10. The table below provides the National Western and Ozark National net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2022 2021 2020 (In thousands) National Western Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 72,793 85,440 1,423 Net income $ 67,888 63,476 6,487 Unassigned surplus $ 1,500,445 1,536,112 1,461,100 Capital and surplus $ 1,544,509 1,580,176 1,505,163 Ozark National Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 26,926 23,103 24,976 Net income $ 21,629 28,183 20,966 Unassigned surplus $ 99,089 77,806 50,054 Capital and surplus $ 127,043 105,761 78,009 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share, by definition, reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. U.S. GAAP requires a two-class presentation for the Company’s two classes of common stock (refer to Note (13) Information Regarding Controlling Stockholder ). The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 101,144 180,681 92,312 Dividends – Class A shares (1,237) (1,237) (1,237) Dividends – Class B shares (36) (36) (36) Undistributed earnings $ 99,871 179,408 91,039 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 97,047 2,824 174,334 5,074 88,464 2,575 Net earnings $ 98,284 2,860 175,571 5,110 89,701 2,611 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,436 200 Basic earnings per share $ 28.60 14.30 51.10 25.55 26.11 13.05 Diluted earnings per share $ 28.60 14.30 51.10 25.55 26.11 13.05 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOMEGAAP guidance requires that all items recognized under accounting standards as components of comprehensive income (loss) be reported in a financial statement that is displayed with the same prominence as other financial statements. This guidance requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income (loss) separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. This guidance affects the Company's reporting presentation of certain items such as foreign currency translation adjustments, unrealized gains and losses on investment securities, and benefit plan liabilities. These items are reflected as components of other comprehensive income (loss), net of taxes, as reported in the accompanying Consolidated Financial Statements. Components of other comprehensive income (loss) for 2022, 2021 and 2020 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Amounts Net of Taxes (In thousands) 2022: Unrealized gains (losses) on securities, net of effects of deferred costs of $(473,867): Net unrealized holding gains (losses) arising during the period $ (812,846) 170,698 (642,148) Reclassification adjustment for net (gains) losses included in net earnings (5,111) 1,073 (4,038) Net unrealized gains (losses) on securities (817,957) 171,771 (646,186) Foreign currency translation adjustments 515 (108) 407 Benefit plan liability adjustment 16,997 (3,569) 13,428 Other comprehensive income (loss) $ (800,445) 168,094 (632,351) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2021: Unrealized gains (losses) on securities, net of effects of deferred costs of $187,987: Net unrealized holding gains (losses) arising during the period $ (227,325) 47,738 (179,587) Reclassification adjustment for net (gains) losses included in net earnings (16,372) 3,438 (12,934) Net unrealized gains (losses) on securities (243,697) 51,176 (192,521) Foreign currency translation adjustments (20) 4 (16) Benefit plan liability adjustment 16,543 (3,474) 13,069 Other comprehensive income (loss) $ (227,174) 47,706 (179,468) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2020: Unrealized gains (losses) on securities, net of effects of deferred costs of $(304,955): Net unrealized holding gains (losses) arising during the period $ 446,280 (93,719) 352,561 Unrealized liquidity gains (losses) 8 (2) 6 Reclassification adjustment for net (gains) losses included in net earnings (5,677) 1,192 (4,485) Net unrealized (losses) gains on securities 440,611 (92,529) 348,082 Foreign currency translation adjustments 18 (4) 14 Benefit plan liability adjustment (16,182) 3,398 (12,784) Other comprehensive income (loss) $ 424,447 (89,135) 335,312 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY (A) Changes in Common Stock Shares Outstanding Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year $ 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year $ 3,636 3,636 3,636 (B) Dividend Restrictions National Western is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the lesser of statutory earnings from operations, excluding capital gains, or 10% of statutory surplus as of the previous year-end. Under these guidelines, the maximum dividend payment which may be made without prior approval in 2023 is $66.5 million. As the sole owner of NWLIC, all dividends declared by National Western are payable entirely to NWLGI and are eliminated in consolidation. During 2022, the Board of Directors of National Western declared ordinary cash dividends totaling $2.0 million which were paid to NWLGI during the year. National Western did not declare or pay cash dividends to NWLGI during the year ended December 31, 2021. Ozark National is similarly restricted under the state insurance laws of Missouri as to dividend amounts which may be paid to stockholders without prior approval to the greater of 10% of the statutory surplus of the company from the preceding year-end or the company's net gain from operations, excluding capital gains, from the prior calendar year. Based upon this restriction, the maximum dividend payment which may be made in 2023 without prior approval is $21.6 million. All dividends declared by Ozark National are payable entirely to NWLIC as the sole owner and are eliminated in consolidation. Ozark National did not declare or pay cash dividends to NWLIC during the years ended December 31, 2022 and 2021. NIS is restricted under FINRA rules as to maximum dividend amounts that can be paid out to stockholders. Maximum allowable dividend amounts are determined based on calculations which require that certain net capital thresholds be maintained after dividends are paid out. Under these guidelines, the maximum dividend payment which may be made as of December 31, 2022 was $13.6 million. No dividends were declared or paid in the years ended December 31, 2022 and 2021. On October 21, 2022, the Board of Directors of NWLGI declared a cash dividend to stockholders on record as of November 7, 2022 which was paid December 1, 2022. The dividends approved were $0.36 per common share to Class A stockholders and $0.18 per common share to Class B stockholders. A dividend in the same amounts per share on Class A and Class B shares was declared in October 2021 and paid in December of 2021. (C) Regulatory Capital Requirements The Colorado Division of Insurance and Missouri Department of Commerce and Insurance impose minimum risk-based capital requirements on insurance companies that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of risk-based capital ("RBC") specify various weighting factors that are applied to statutory financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of a company's regulatory total adjusted capital to its authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. National Western's current authorized control level RBC of $118.3 million is significantly below its regulatory total adjusted capital of $1.7 billion. In addition, Ozark National's regulatory total adjusted capital of $131.4 million is also materially greater than its current authorized control level RBC of $8.1 million. (D) Share-Based Payments The Company's stockholders approved an Incentive Plan in 2016 which provides for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights ("SARs"), in tandem with stock options or freestanding; (3) restricted stock or restricted stock units; and (4) performance awards. The number of shares of Class A Common Stock, $0.01 par value, allowed to be issued under the Incentive Plan, cannot exceed 300,000. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which can be used in the issuance of the fourth type of award noted above (performance awards). The term of the Incentive Plan is for ten years from the date of stockholder approval. All of the employees of the Company and its subsidiaries are eligible to participate in the Incentive Plan. In addition, directors of the Company are eligible to receive the same types of awards as employees except that they are not eligible to receive incentive stock options. Company directors, including members of the Compensation and Stock Option Committee, are eligible for nondiscretionary stock options. SARs granted prior to 2016 under a prior plan vest 20% annually following three years of service following the grant date. Employee SARs granted in 2016 and forward vest 33.3% annually following one year of service from the date of the grant. Directors' SARs grants vest 20% annually following one year of service from the date of grant. The Incentive Plan allows for certain other share or unit awards which are solely paid out in cash based on the value of the Company's shares, or changes therein, as well as the financial performance of the Company under pre-determined target performance metrics. Certain awards, such as restricted stock units ("RSUs") provide solely for cash settlement based upon the market price of the Company's Class A Common Stock, often referred to as "phantom stock-based awards" in equity compensation plans. Unlike share-settled awards, which have a fixed grant-date fair value, the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value of a share. The liability and corresponding expense are adjusted accordingly until the award is settled. For employees, the vesting period for RSUs is 100% at the end of three years from the grant date. RSUs granted prior to 2019 were paid in cash at the vesting date equal to the closing price of the Company's Class A Common Stock on the three year anniversary date. RSUs granted in 2019 and after are payable in cash at the three year vesting date equal to the 20-day moving average closing price of the Company's Class A Common Stock at that time. Other awards may involve performance share units ("PSUs") which are units granted at a specified dollar amount per unit, typically linked to the share price of the Class A Common Stock, that are subsequently multiplied by an attained performance factor to derive the number of PSUs to be paid as cash compensation at the vesting date. PSUs also vest three years from the date of grant. For PSUs, the performance period begins the first day of the calendar year for which the PSUs are granted and runs three PSU awards covering the three year measurement period ended December 31, 2021 were paid out in the first quarter of 2022. The performance factor during the measurement period used to determine compensation payouts was 110.19% of the pre-defined metric target. PSU awards covering the three year measurement period ended December 31, 2020 were paid out in April 2021. The performance factor during the measurement period used to determine compensation payouts was 85.16% of the pre-defined metric target. Directors of the Company are eligible to receive RSUs under the Incentive Plan. Unlike RSUs granted to officers, the RSUs granted to directors vest one year from the date of grant and are payable in cash at the vesting date equal to the 20-day moving average closing price of the Class A Common Stock at that time. The following table shows all grants issued to officers and directors for the twelve months ended December 31, 2022 and 2021. These grants were made based upon the 20-day moving average closing market price of the Class A Common Stock at the grant date. Years Ended December 31, 2022 December 31, 2021 Officers Directors Officers Directors SARs 113,127 — 64,157 — RSUs 7,591 3,710 5,301 3,530 PSUs 5,989 — 4,066 — The grant prices of Officer awards were $218.44 in 2021 and $220.61 in 2022. The grant prices of Director awards were $218.44 in 2021 and $207.84 in 2022. The annual allocation of PSU, SAR, and RSU awards to Officers was changed beginning in 2021 to place greater emphasis on SARs and less on PSU awards. The Company uses the current fair value method to measure compensation costs for awards granted under the share-based plans. As of December 31, 2022 and 2021, the liability balance for these plans was $20.5 million and $7.9 million, respectively. A summary of awards by type and related activity is detailed below. Options Outstanding Shares Available For Issuance Pursuant to Grants Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2022 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2022 291,000 — $ — Liability Awards SARs RSUs PSUs Other Share/Unit Awards: Balance at January 1, 2022 186,994 18,955 24,485 Exercised (209) (7,210) (4,213) Forfeited (13,323) (1,185) (1,416) Granted 113,127 11,301 5,989 Balance at December 31, 2022 286,589 21,861 24,845 SARs, RSUs, and PSUs shown as forfeited in the above tables represent vested and unvested awards not exercised by plan participants upon their termination from the Company in accordance with the expiration provisions of the awards. Furthermore, under the terms of all outstanding SARs, RSUs and PSUs, all such awards may be settled only in cash. Accordingly, no shares of Class A Common Stock are issuable under the terms of such awards. The total intrinsic value of share-based compensation exercised and paid was $2.6 million, $4.1 million, and $2.8 million for the years ended December 31, 2022, 2021, and 2020, respectively. The total fair value of SARs, RSUs, and PSUs vested during the years ended December 31, 2022, 2021, and 2020 was $7.7 million, $3.7 million, and $4.2 million, respectively. No cash amounts were received from the exercise of stock options under the Plans during the periods reported on. The following table summarizes information about SARs outstanding at December 31, 2022. SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: $210.22 21,850 0.9 years 21,850 $216.48 10,342 3.1 years 10,342 $311.16 7,981 4.1 years 7,981 $310.55 203 4.3 years 203 $334.34 7,631 5.0 years 7,631 $303.77 9,574 6.0 years 9,574 $252.91 17,638 6.8 years 17,638 $192.10 37,394 7.9 years 25,023 $218.44 60,849 9.0 years 20,272 $220.61 113,127 10.0 years — Totals 286,589 120,514 Aggregate intrinsic value (in thousands) $ 16,672 $ 6,202 The aggregate intrinsic value in the table above is based on the closing Class A Common Stock price of $281.00 per share on December 31, 2022. In estimating the fair value of SARs outstanding at December 31, 2022 and 2021, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2022 December 31, 2021 Expected term 0.9 to 10.0 years 1.9 to 10.0 years Expected volatility weighted-average 36.18 % 35.05 % Expected dividend yield 0.13 % 0.17 % Risk-free rate weighted-average 4.19 % 1.01 % The Company reviewed the contractual term relative to the SARs as well as perceived future behavior patterns of exercise. Volatility is based on the Company’s historical volatility over the expected term of the SARs by expected exercise date. The pre-tax compensation expense/(benefit) recognized in the Consolidated Financial Statements related to these plans was $15.2 million, $5.8 million, and $(2.2) million for the years ended December 31, 2022, 2021 and 2020, respectively. The related tax (benefit)/expense recognized was $(3.2) million, $(1.2) million, and $0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. For the years ended December 31, 2022, 2021 and 2020, the total pre-tax compensation expense related to nonvested share-based awards not yet recognized was $27.4 million, $11.9 million, and $9.1 million, respectively. The December 31, 2022 amount is expected to be recognized over a weighted-average period of 1.5 years. The Company recognizes compensation cost over the graded vesting periods. |
Information Regarding Controlli
Information Regarding Controlling Stockholder | 12 Months Ended |
Dec. 31, 2022 | |
Information Regarding Controlling Stockholder [Abstract] | |
Information Regarding Controlling Stockholder | INFORMATION REGARDING CONTROLLING STOCKHOLDERRobert L. Moody, Sr., through the Robert L. Moody Revocable Trust controls 99.0% of the 200,000 aggregate outstanding shares of the Company's Class B Common Stock as of December 31, 2022. The shares of Class B Common Stock owned by the revocable trust represent 5.45% of the total number of outstanding shares of the Company. Holders of the Company's Class A Common Stock elect one-third of the Board of Directors of the Company (rounded up to the nearest whole number if not evenly divisible by three), and holders of the Class B Common Stock elect the remainder. Any cash or in-kind dividends paid on each share of Class B Common Stock are to be only one-half of the cash or in-kind dividends paid on each share of Class A Common Stock. In the event of liquidation of the Company by dissolution, the holders of Class A Common Stock will receive the par value of their shares; then the holders of Class B Common Stock will receive the par value of their shares; and the remaining net assets of the Company shall be divided between the stockholders of both Class A Common Stock and Class B Common Stock based upon the number of shares held. The approval of the holders of two-thirds of the outstanding Class A Common Stock is required to modify these dividend and liquidation provisions. Except as described above in this paragraph, on all matters submitted to the Company's stockholders other than the election or removal of directors, the holders of Class A Common Stock and Class B Common Stock vote together as a single class, with each share entitled to one vote. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT PLANS (A) Defined Benefit Pension Plans National Western sponsors a qualified defined benefit pension plan covering employees enrolled prior to 2008. The plan provides benefits based on the participants' years of service and compensation. The company makes annual contributions to the plan that comply with the minimum funding provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). On October 19, 2007, National Western’s Board of Directors approved an amendment to freeze the pension plan as of December 31, 2007. The freeze ceased future benefit accruals to all participants and closed the plan to any new participants. In addition, all participants became immediately 100% vested in their accrued benefits as of that date. As participants are no longer earning a credit for service, future qualified defined benefit plan expense is projected to be minimal. Fair values of plan assets and liabilities are measured as of the prior December 31 for each year. A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 22,056 23,927 Service cost 131 119 Interest cost 581 528 Actuarial (gain) loss (4,217) (805) Benefits paid (1,574) (1,713) Projected benefit obligations at end of year 16,977 22,056 Changes in plan assets: Fair value of plan assets at beginning of year 23,241 20,833 Actual return on plan assets (3,407) 3,265 Contributions 250 856 Benefits paid (1,574) (1,713) Fair value of plan assets at end of year 18,510 23,241 Funded status at end of year $ 1,533 1,185 The service cost shown above for each year represents plan expenses expected to be paid out of plan assets. Under the clarified rules of the Pension Protection Act, plan expenses paid from plan assets are to be included in the plan's service cost component. The Projected Benefit Obligation decreased in 2022 due to the following: • An experience gain of approximately $177,000 due to census demographics. • An experience loss of approximately $48,000 due to the difference in expected and actual benefit payments. • An experience gain of approximately $4,088,000 due to the increase in the discount rate from 2.75% to 5.00%. The Projected Benefit Obligation decreased in 2021 from the previous year due to the following: • An experience loss of approximately $309,000 due to census demographics. • An experience loss of approximately $78,000 due to the change in mortality. • An experience loss of approximately $127,000 due to the difference in expected and actual benefit payments. • An experience gain of approximately $1,319,000 due to the increase in the discount rate from 2.25% to 2.75%. December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ 1,533 1,185 Liabilities — — Net amount recognized $ 1,533 1,185 Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ 4,273 3,642 Prior service cost — — Net amount recognized $ 4,273 3,642 The accumulated benefit obligation was $17.0 million and $22.1 million at December 31, 2022 and 2021, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit costs: Interest cost $ 581 528 674 Service cost 131 119 107 Expected return on plan assets (1,575) (1,425) (1,261) Amortization of net loss (gain) 134 539 580 Net periodic benefit cost (729) (239) 100 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 765 (2,645) 503 Amortization of net loss (gain) (134) (539) (580) Total recognized in other comprehensive income (loss) 631 (3,184) (77) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (98) (3,423) 23 The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Rate of compensation increase n/a n/a December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a The assumed long-term rate of return on plan assets is generally set at the rate expected to be earned based on the long-term investment policy of the plan and the various classes of invested funds, based on the input of the plan’s investment advisors and consulting actuary and the plan’s historic rate of return. As of December 31, 2022, the plan’s average 5-year and inception-to-date returns were 6.91% and 6.23%, respectively. In setting the annual discount rate assumption, the Pension Committee designated by National Western's Board of Directors reviews current 10 year and 30 year corporate bond yields, the current spread to treasuries, and their relative change during the past twelve months. It also considers the present value of the projected benefit payment stream based on the Citigroup Pension Discount Curve and market data observations provided by independent consultants. Plan Assets As discussed in Note (4) Fair Values of Financial Instruments , GAAP defines fair value and establishes a framework for measuring fair value of financial assets. Using this guidance, the Company has categorized its pension plan assets into a three level hierarchy, based on the priority of inputs to the valuation process. The fair value hierarchy classifications are reviewed annually. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2022 and 2021. December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 787 787 — — Equity securities: Domestic 11,533 11,533 — — International 117 117 — — Debt securities: U.S. government agencies 601 — 601 — Corporate bonds 5,471 — 5,471 — Other invested assets 1 1 — — Total $ 18,510 12,438 6,072 — December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 852 852 — — Equity securities: Domestic 15,752 15,752 — — International 163 163 — — Debt securities: Corporate bonds 6,474 — 6,474 — Other invested assets — — — — Total $ 23,241 16,767 6,474 — Investment securities. Fair values for investments in debt and equity securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services. In cases where prices are unavailable from these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Cash and cash equivalents. Carrying amounts for these instruments approximate their fair values. The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2022 2021 2020 Asset Category: Equity securities 63% 68% 67% Debt securities 33% 28% 28% Cash and cash equivalents 4% 4% 5% Total 100% 100% 100% The Company has established and maintains an investment policy statement for the assets held in the plan's trust. The investment strategies are of a long-term nature and are designed to meet the following objectives: Ensure that funds are available to pay benefits as they become due Set forth an investment structure detailing permitted assets and expected allocation ranges among classes Ensure that plan assets are managed in accordance with ERISA The pension plan is a highly diversified portfolio. The 96% of pension assets not invested in cash is allocated among 244 different investments, with no single issuer representing more than 4.1% of the fair value of the portfolio. The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% Deviations from these ranges are permitted if such deviations are consistent with the duty of prudence under ERISA. Investments in natural resources, venture capital, precious metals, futures and options, real estate, and other vehicles that do not have readily available objective valuations are not permitted. Short sales, use of margin or leverage, and investment in commodities and art objects are also prohibited. The investment policy statement is reviewed annually to ensure that the objectives are met considering any changes in benefit plan design, market conditions, or other material considerations. Contributions National Western expects to contribute $0 to the plan during 2023 which amount includes a $0 voluntary contribution for the 2022 plan year. Additional amounts may be contributed at NWLIC's discretion. The plan’s funding status is reviewed periodically throughout the year by National Western’s Pension Plan Committee. NWLIC intends to contribute at least the minimum amounts necessary for tax compliance and to maintain an Adjusted Funding Target Attainment Percentage ("AFTAP") of over 80% to meet the Pension Protection Act Plan’s threshold. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ 1,503 2024 1,455 2025 1,459 2026 1,405 2027 1,410 2028-2032 6,398 National Western also sponsors three non-qualified defined benefit pension plans. The first plan covers certain senior officers and provides benefits based on the participants' years of service and compensation. The primary pension obligations and administrative responsibilities of the plan are maintained by a pension administration firm, which is a subsidiary of American National Group, Inc. ("American National"), previously a related party. In the second quarter of 2022, American National was acquired by Brookfield Asset Management Reinsurance Partners Ltd. and is therefore no longer a related party of National Western. American National has guaranteed the payment of pension obligations under the plan. However, the Company has a contingent liability with respect to the plan should American National be unable to meet its obligations under the existing agreements. Also, NWLGI has a contingent liability with respect to the plan in the event that a plan participant continues employment with National Western beyond age seventy Effective July 1, 2005, National Western established a second non-qualified defined benefit plan for the benefit of Robert L. Moody, Sr., who was then Chairman of the Company. This plan is intended to provide for post-2004 benefit accruals that mirror and supplement the pre-2005 benefit accruals under the previously discussed non-qualified plan, while complying with the requirements of the Act. Effective November 1, 2005, National Western established a third non-qualified defined benefit plan for the benefit of Ross R. Moody, who was then President of the Company. This plan is intended to provide for post-2004 benefit accruals that supplement the pre-2005 benefit accruals under the first non-qualified plan as previously discussed, while complying with the requirements of the Act. Ozark National and NIS have no defined benefit plans. A detail of plan disclosures related to the amendments of the original plan and the additional two plans is provided below: Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 44,448 51,571 Service cost 1,038 1,235 Interest cost 1,114 1,044 Actuarial (gain) loss (13,096) (7,420) Benefits paid (1,982) (1,982) Projected benefit obligations at end of year 31,522 44,448 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982) (1,982) Fair value of plan assets at end of year — — Funded status at end of year $ (31,522) (44,448) The Projected Benefit Obligation decreased in 2022 due to the following: • An experience gain of approximately $2,956,000 due to census demographics different than assumed including changes in compensation different than assumed. • An experience gain of approximately $10,140,000 due to the increase in the discount rate from 2.75% to 5.00%. The Projected Benefit Obligation decreased in 2021 from the prior year due to the following: • An experience gain of approximately $4,208,000 due to census demographics different than assumed including changes in compensation different than assumed. • An experience loss of approximately $80,000 due to the change in mortality. • An experience gain of approximately $3,292,000 due to the increase in the discount rate from 2.25% to 2.75%. December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (31,522) (44,448) Net amount recognized $ (31,522) (44,448) Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ (1,509) 13,925 Prior service cost 286 345 Net amount recognized $ (1,223) 14,270 The accumulated benefit obligation was $23.2 million and $26.4 million at December 31, 2022 and 2021, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Service cost $ 1,038 1,235 1,209 Interest cost 1,114 1,044 1,350 Amortization of prior service cost 59 59 59 Amortization of net loss (gain) 2,338 5,131 5,781 Net periodic benefit cost 4,549 7,469 8,399 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) (13,096) (7,420) 21,736 Amortization of prior service cost (59) (59) (59) Amortization of net loss (gain) (2,338) (5,131) (5,781) Total recognized in other comprehensive income (loss) (15,493) (12,610) 15,896 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (10,944) (5,141) 24,295 The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Rate of compensation increase 8.00 % 8.00 % December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % The plan is unfunded and therefore no assumption has been made related to the expected long-term return on plan assets. Plan Assets The plan is unfunded and therefore had no assets at December 31, 2022 or 2021. Contributions National Western expects to contribute approximately $2.0 million to the plan in 2023. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ 1,982 2024 1,982 2025 1,982 2026 1,982 2027 2,375 2028-2032 11,814 (B) Defined Contribution Pension Plans In addition to the defined benefit pension plans, National Western sponsors a qualified 401(k) plan for substantially all employees and a non-qualified deferred compensation plan primarily for senior officers. National Western made annual contributions to the 401(k) plan in 2022, 2021, and 2020 of up to four percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. Contributions prior to 2021 are subject to a vesting schedule based on the employee's years of service and those for 2021 and forward are not subject to a vesting schedule. For the years ended December 31, 2022, 2021, and 2020, NWLIC contributions totaled $703,000, $755,000, and $720,000, respectively. The non-qualified deferred compensation plan sponsored by National Western was established to allow eligible employees to defer the payment of a percentage of their compensation and to provide for additional company contributions. Contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2022, 2021, and 2020, contributions totaled $128,000, $143,000, and $175,000, respectively. Ozark National sponsors a qualified 401(k) plan for substantially all employees of Ozark National and NIS. The employer match was discretionary for deferral dates prior to 2021. In 2021, Ozark National contributions for employee deferrals increased to four percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. Contributions for deferral dates prior to 2021 were subject to a graded vesting schedule while contributions for 2021 and after are not subject to a vesting schedule. Expense related to this plan totaled $112,000, $125,000, and $175,000 for Ozark National and $15,000, $10,000, and $17,000 for NIS for the years ended December 31, 2022, 2021, and 2020, respectively. Ozark National also sponsors a non-qualified, unfunded retirement plan covering certain members of executive staff. The plan is funded solely through discretionary employer contributions. Expense related to this plan totaled $(75,000), $24,000, and $247,000 for the years ended December 31, 2022, 2021, and 2020, respectively. (C) Postretirement Employment Plans Other Than Pension National Western sponsors two health care plans that were amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plans are unfunded. The measurement date for the plans is December 31st. A detail of plan disclosures related to the plans is provided below: Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 6,160 6,469 Interest cost 173 148 Actuarial (gain) loss (1,927) (457) Benefits paid — — Projected benefit obligations at end of year 4,406 6,160 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (4,406) (6,160) The Projected Benefit Obligation decreased in 2022 due to the following: • An experience loss of approximately $129,000 due to the claims/healthcare cost trend experience. • An experience gain of approximately $318,000 due to the death of a participant's spouse. • An experience loss of $264,000 due to the change in the trend rate. • An experience gain of approximately $2,002,000 due to the increase in the discount rate from 2.75% to 5.00%. The Projected Benefit Obligation decreased in 2021 from the prior year due to the following: • An experience loss of approximately $123,000 due to the claims/healthcare cost trend experience. • An experience loss of approximately $30,000 due to the change in mortality. • An experience gain of approximately $610,000 due to the increase in the discount rate from 2.25% to 2.75%. December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (4,406) (6,160) Net amount recognized $ (4,406) (6,160) Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ (596) 1,539 Prior service cost — — Net amount recognized $ (596) 1,539 The accumulated benefit obligation was $4.4 million and $6.2 million at December 31, 2022 and 2021, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Interest cost $ 173 148 165 Amortization of prior service cost — — — Amortization of net loss 208 292 158 Net periodic benefit cost 381 440 323 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) (1,927) (457) 522 Amortization of prior service cost — — — Amortization of net loss (gain) (208) (292) (158) Total recognized in other comprehensive income (loss) (2,135) (749) 364 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (1,754) (309) 687 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. Ozark National and NIS do not offer postretirement employment benefits. The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Expected long-term return on plan assets n/a n/a December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets n/a n/a n/a For measurement purposes, a 7.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2023, decreasing annually by 0.25% until reaching an ultimate rate of 5%. Plan Assets The plans are unfunded and therefore had no assets at December 31, 2022 and 2021. Contributions The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ — 2024 — 2025 — 2026 157 2027 119 2028-2032 1,416 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | FEDERAL INCOME TAXES Total Federal income taxes were allocated as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 15,830 42,829 (275) Deferred 9,060 3,747 20,031 Taxes on earnings 24,890 46,576 19,756 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available-for-sale (171,770) (51,177) 92,528 Foreign currency translation adjustments 108 (4) 4 Change in benefit plan liability 3,569 3,474 (3,398) Change in accounting — — (806) Total Federal income taxes $ (143,203) (1,131) 108,084 . The provisions for Federal income taxes attributable to earnings from continuing operations vary from amounts computed by applying the statutory income tax rate to income statement earnings before Federal income taxes due to differences between the financial statement reporting and income tax treatment of certain items. These differences and the corresponding tax effects are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Income tax expense at statutory rate of 21% $ 26,467 47,724 23,534 Dividend received deduction (405) (394) (401) Tax exempt interest (1,194) (1,263) (1,436) Non deductible salary expense 642 439 351 Adjustments pertaining to prior tax years (538) (63) (8) Nondeductible insurance 96 96 96 Nondeductible expenses 42 54 44 Tax rate differential for loss carryback — — (2,497) Other, net (220) (17) 73 Taxes on earnings from continuing operations $ 24,890 46,576 19,756 The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020 to provide relief to businesses impacted by the COVID-19 pandemic. The CARES Act included a temporary reprieve from the carryback limitation on the use of net operating losses, allowing taxpayers to carryback certain net operating losses generated from 2018 through 2020 for up to five years in order to claim a refund of taxes paid in prior years. Accordingly, the Company was permitted to carryback the taxable loss generated in the year ended December 31, 2020 to tax years when the corporate tax rate was 35%. This resulted in a permanent tax benefit equal to the 14% corporate tax rate differential between the carryback rate of 35% and the current statutory rate of 21%. As a result, there was a permanent tax benefit of $2.5 million reflected in the reconciliation of the tax rate for the year ended December 31, 2020. An additional permanent tax benefit of $120,000 was included in the reconciliation of the tax rate for the year ended December 31, 2021 as a true up from provision to actual for the carryback claim. The Company generally expects its effective tax rate to be slightly less than the current statutory rate due to recurring permanent differences that reduce tax expense, principally tax exempt interest income and the dividend received deduction. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. December 31, 2022 2021 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 142,476 183,692 Investment securities write-downs for financial accounting purposes 1,088 735 Benefit plan liabilities 8,974 12,546 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 5,915 4,490 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 42 64 Net unrealized losses on debt and equity securities 151,284 — Goodwill 1,315 1,696 Other 6,637 88 Total gross deferred tax assets 317,731 203,311 Deferred tax liabilities: Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes (136,092) (157,543) Tax reform reserve adjustment (26,198) (34,942) Debt securities, principally due to deferred market discount for tax (5,895) (5,611) Real estate, principally due to adjustments for financial accounting purposes (30) (14) Net unrealized gains on debt and equity securities — (66,696) Foreign currency translation adjustments (1,464) (1,356) Fixed assets, due to different depreciation bases (11,729) (13,032) Cost of reinsurance (16,449) (18,834) Funds withheld liability (61,198) (5,591) Other (809) (858) Total gross deferred tax liabilities (259,864) (304,477) Net deferred tax assets (liabilities) $ 57,867 (101,166) The 2017 Tax Cuts and Jobs Act ("Tax Act") imposed a limitation on life insurance tax reserves based upon the greater of net surrender value or 92.81% of the reserve method prescribed by the National Association of Insurance Commissioners which covers such contracts as of the date the reserve is determined. The Company determined that this limitation resulted in a tax reserve decrease of $332.9 million which the Tax Act allowed to be recognized over an eight-year period. At the statutory rate of 21%, the Company recorded a deferred tax liability as of December 31, 2017 of $69.9 million. This amount is incorporated into the periodic measurement of net deferred tax liabilities and at December 31, 2022 is $26.2 million as shown in the table above. The total tax reserve adjustment of $332.9 million which resulted from the limitation imposed under the Tax Act is recognized as an increase in taxable income of $41.6 million per year through the year 2025. At the statutory rate of 21%, this results in additional tax of $8.7 million per year. There were no valuation allowances for deferred tax assets at December 31, 2022 and 2021. In assessing deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and available tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. In accordance with GAAP, the Company assessed whether it had any significant uncertain tax positions related to open examination or other IRS issues and determined that there were none. Accordingly, no reserve for uncertain tax positions has been recorded. Should a provision for any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company's policy to accrue for such in its income tax accounts. There were no such accruals as of December 31, 2022 or 2021. The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2018. The Company's federal income tax return is consolidated with the entities listed below. • National Western Life Group, Inc. (NWLGI) • National Western Life Insurance Company (NWLIC, a subsidiary of NWLGI) • The Westcap Corporation (subsidiary of NWLIC) • Braker P III, LLC (subsidiary of NWLIC) • NWL Financial, Inc. (subsidiary of NWLIC) • NWLSM, Inc. (subsidiary of NWLIC) • NWL Services, Inc. (subsidiary of NWLGI) • Regent Care Operations General Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care Operations Limited Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care General Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care Limited Partner, Inc. (subsidiary of NWL Services, Inc.) • N.I.S. Financial Services, Inc. (NIS, a subsidiary of NWLGI) Ozark National will not be consolidated with NWLGI for federal tax filings until it has been a member of the affiliated group for five full years, per section 1504(c)(2) of the Internal Revenue Code. Allocation of the consolidated Federal income tax liability amongst the Company and its consolidated subsidiaries is based on separate return calculations pursuant to the "wait-and-see" method as described in sections 1.1552-1(a)(1) and 1.1502-33(d)(2) of the current Treasury Regulations. Under this method, consolidated group members are not given current credit for net losses until future net taxable income is generated to realize such credits. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Short-Term Debt [Abstract] | |
Short-Term Borrowings | SHORT-TERM BORROWINGS National Western has available a $75 million bank line of credit (with Moody National Bank, its custodian bank and a related party) primarily for cash management purposes. The Company is required to maintain a collateral security deposit in trust with the sponsoring bank having a fair value equal to 110% of the line of credit. The Company had no outstanding borrowings under the line of credit at December 31, 2022 or 2021. The Company maintained assets having an amortized value of $92.4 million (fair value of $82.5 million) on deposit with the lender at December 31, 2022. During 2020, National Western became a member of the Federal Home Loan Bank of Dallas ("FHLB") through an initial minimum required stock investment of $4.3 million. Through this membership, National Western has a specified borrowing capacity based upon the amount of collateral it establishes. At December 31, 2022, cash and securities in the amount of $196.9 million (fair value of $187.7 million) were pledged to FHLB. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. As previously disclosed, the Company has been a defendant in prior years in such class action lawsuits. Given the uncertainty involved in these types of actions, the ability to make a reliable evaluation of the likelihood of an unfavorable outcome or an estimate of the amount of or range of potential loss is endemic to the particular circumstances and evolving developments of each individual matter on its own merits. On September 28, 2017, a purported stockholder derivative lawsuit was filed in the 122nd District Court of Galveston County, State of Texas titled Robert L. Moody, Jr. derivatively on behalf of National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody, et al., naming certain current and former directors and current officers as defendants. The complaint challenged the directors’ oversight of insurance sales to non-U.S. residents and alleged that the defendants breached their fiduciary duties in the conduct of their duties as board members by failing to act (i) on an informed basis and (ii) in good faith or with the honest belief that their actions were in the best interests of the Company. The complaint sought an undetermined amount of damages, attorneys’ fees and costs, and equitable relief, including the removal of the Company’s Chairman and Chief Executive Officer and other board members and/or officers of the Company. The companies and directors filed their respective Pleas to the Jurisdiction ("Pleas") contesting the plaintiff's standing to even pursue this action, along with their Answers, on October 27, 2017. The case was litigated through 2021, ultimately culminating in the court granting the companies’ and directors’ Pleas, dismissing Mr. Moody, Jr.’s claims with prejudice, and ordering that Mr. Moody, Jr. pay the companies their attorney’s fees and expenses. On October 15, 2021, Defendants received final payment in satisfaction of judgment from Mr. Moody, Jr. for a total amount of $1,803,503. The Court of Appeals stated in its opinion that the evidence supported the trial court’s implied finding that Mr. Moody, Jr.’s suit was filed without reasonable cause and for an improper purpose, and therefore, the court’s order that he pay $1,803,503 in attorneys’ fees to the Defendants was proper. Defendants filed a Notice of Satisfaction of Judgment with the trial court on October 19, 2021. Judgment in the Defendants’ favor is now final and not subject to any further appeals. In April of 2019, National Western defended a two-week jury trial in which it was alleged that the Company committed actionable Financial Elder Abuse in its issuance of a $100,000 equity indexed annuity to the Plaintiff in the case of Williams v Pantaleoni et al , Case No. 17CV03462, Butte County California Superior Court. The Court entered an Amended Judgment on the Jury Verdict on July 27, 2019 against National Western in the amount of $14,949 for economic damages and $2.92 million in non-economic and punitive damages. National Western vigorously disputed the verdicts and the amounts awarded, and in furtherance of such, filed a Motion for Judgment Notwithstanding Jury Verdict and a Motion for New Trial, both of which were rejected by the Court. On September 9, 2019, NWLIC filed its Notice of Appeal. On November 11, 2019, the judge awarded the Plaintiff attorney’s fees in the amount of $1.26 million. Both the Plaintiff and NWLIC appealed this ruling. On June 11, 2021, the appellate court reversed the judgment and directed the trial court to enter judgment in favor of NWLIC. Plaintiff then filed an appeal with the Supreme Court of California. On September 22, 2021, the California Supreme Court granted review and transferred the case back to the appellate court with instructions to vacate its decision and reconsider its finding that Mr. Pantaleoni did not have an agency relationship with NWLIC. On March 4, 2022, the appellate court filed an opinion completely striking the award of punitive damages that had been in the amount of $2.50 million, affirming economic damages of $14,949 and non-economic damages of $420,000, and awarding Plaintiff costs on appeal. The appellate court remanded the case to the trial court to reconsider the attorney fee award of $1.26 million in light of the reversal of punitive damages. Upon petitions for rehearing separately filed by both parties, the appellate court vacated its March 4th decision. On May 10, 2022, the appellate court filed its new opinion once again completely striking the award of punitive damages that had been in the amount of $2.5 million, affirming economic damages of $14,949 and non-economic damages of $420,000, and awarding Plaintiff costs on appeal. The appellate court again remanded the case to the trial court to reconsider the attorney fee award of $1.26 million in light of the reversal of punitive damages. The California Supreme Court denied National Western’s appeal while ordering the appellate decision depublished. This denial made the appellate court’s decision final, which was to strike the award of punitive damages, to affirm the award of economic damages of $14,949 and non-economic damages of $420,000, and to award Plaintiff costs on appeal. The trial court subsequently awarded Plaintiff appellate costs of $538,461, and reduced Plaintiff's trial fees to $842,380. The parties agreed to a judgment, and final payment of fees was tendered by the Company in January 2023. The amount was accrued for and included in the Company's financial statements for the year ended December 31, 2022. In the Form 10-Q for the quarter ended September 30, 2020, the Company reported that it experienced a data event in which an intruder accessed and exfiltrated certain data from the Company's network and that it was aware of two proposed class actions filed against National Western: Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , Missouri Circuit Court for the 18th Judicial Circuit (Pettis County) filed February 16, 2021, and Douglas Dyrssen Sr., individually and on behalf of all others similarly situated vs. National Western Life Insurance Company and National Western Life Group, Inc. , United States District Court for the Eastern District of California filed March 8, 2021. The parties subsequently agreed to consolidate those two proposed class actions into a single proposed class action, Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , United States District Court for the Western District of Missouri. Baldwin was seeking an undetermined amount of damages, attorneys' fees and costs, injunctive relief, declaratory and other equitable relief, and enjoinment. National Western filed a Motion to Dismiss on July 16, 2021. On July 26, 2021, the parties filed a Joint Motion to Stay Pending Mediation, which the court denied. On September 15, 2021, the court granted in part and denied in part National Western’s Motion to Dismiss. At a mediation held on October 12, 2021, the parties agreed on preliminary terms to settle the litigation. The parties filed a Joint Notice of Settlement and Motion to Stay Deadlines with the court on October 20, 2021. The Company accrued $4.4 million for this matter at December 31, 2021. The Court issued an order preliminarily approving the settlement on January 19, 2022. The Court issued an order granting final approval of the settlement on June 16, 2022. The ultimate payments due under the settlement terms were paid in 2022. The Company was informed by the Internal Revenue Service (“IRS”) that it had countersigned a previously negotiated closing agreement effective February 11, 2022 (“Agreement”) by and between National Western and the Commissioner of Internal Revenue pertaining to an open matter regarding the tax status of certain of the Company’s international life insurance products. Under terms of the Agreement, the Company was to remit to the IRS a payment in the amount of $4.9 million within sixty days of the effective date of the Agreement and to make stipulated adjustments to the policies covered under the Agreement within ninety days of the effective date. The Company had previously accrued for this contingency in a financial statement period predating the financial statements for the three years ended December 31, 2022. Separately, in 2015 Brazilian authorities commenced an investigation into possible violations of Brazilian criminal law in connection with the issuance of National Western insurance policies to Brazilian residents, and in assistance of such investigation a Commissioner appointed by the U.S. District Court for the Western District of Texas issued a subpoena in March of 2015 upon NWLIC to provide information relating to such possible violations. National Western cooperated with the relevant governmental authorities in regard to this matter. National Western has been informed that the investigation in Brazil has been closed without any action being taken against the Company, its directors, officers, or employees. Although there can be no assurances, at the present time, the Company does not anticipate that the ultimate liability arising from such other potential, pending, or threatened legal actions will have a material adverse effect on the financial condition or operating results of the Company. (B) Financial Instruments In order to meet the financing needs of its customers in the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments are commitments to extend credit which involve elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The Company's exposure to credit loss in the event of nonperformance by another party to the financial instrument for commitments to extend credit is represented by the contractual amounts, assuming that the amounts are fully advanced and that collateral or other security is of no value. Commitments to extend credit are legally binding agreements to lend to a customer that generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments do not necessarily represent future liquidity requirements, as some could expire without being drawn upon. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. The Company had no commitments to fund new loans and $1.4 million in commitments to extend credit relating to existing loans at December 31, 2022. The Company evaluates each customer's creditworthiness on a case-by-case basis. The Company also had open commitments to make capital contributions to alternative investment debt and equity funds of $232.8 million as of December 31, 2022. The Company had unfunded commitments on private placements of $9.7 million and unfunded commitments on revolver loans of $0.3 million as of December 31, 2022. (C) Guaranty Association Assessments National Western and Ozark National are subject to state guaranty association assessments in all states in which they are licensed to do business. These associations generally guarantee certain levels of benefits payable to resident policyholders of insolvent insurance companies. Many states allow premium tax credits for all or a portion of such assessments, thereby allowing potential recovery of these payments over a period of years. However, several states do not allow such credits. The Company estimates its liabilities for guaranty association assessments by using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. The Company monitors and revises its estimates for assessments as additional information becomes available which could result in changes to the estimated liabilities. As of December 31, 2022, 2021 and 2020, liabilities for guaranty association assessments totaled $0.3 million, $0.1 million and $0.2 million, respectively. Other operating expenses related to state guaranty association assessments were $0.2 million for the year ended December 31, 2022 and were minimal for the years ended December 31, 2021 and 2020. (D) Leases The Company leases various office related equipment. Rental expenses for these leases were $0.4 million, $0.4 million and $0.5 million for the years ended December 31, 2022, 2021, and 2020, respectively. In 2021, the Company entered into two lease agreements for new equipment under finance leases 2023 $ 343 2024 316 2024 179 2026 165 2027 — Total minimum lease payments 1,003 Less: Interest (6) Present value of net minimum lease payments $ 997 |
Deposits with Regulatory Author
Deposits with Regulatory Authorities | 12 Months Ended |
Dec. 31, 2022 | |
Deposits with Regulatory Authorities [Abstract] | |
Deposits with Regulatory Authorities | DEPOSITS WITH REGULATORY AUTHORITIES The following assets, stated at amortized cost, were on deposit with state and other regulatory authorities, as required by law, at the dates shown in the table below. December 31, 2022 2021 (In thousands) National Western: Debt securities available-for-sale $ 15,379 15,307 Short-term investments 475 475 Total National Western 15,854 15,782 Ozark National: Debt securities available-for-sale 3,368 3,319 Total Ozark National 3,368 3,319 Total $ 19,222 19,101 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSRobert L. Moody, Jr. ("Mr. Moody, Jr.") is the brother of Ross R. Moody, NWLGI's Chairman, President and Chief Executive Officer, son of Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI, brother of Russell S. Moody who serves as an advisory director of NWLGI, and a half-brother of Frances A. Moody-Dahlberg who serves as a director of NWLGI. Mr. Moody, Jr. wholly owns an insurance marketing organization that maintains agency contracts with National Western pursuant to which agency commissions are paid in accordance with standard commission schedules. Mr. Moody, Jr. also maintains an independent agent contract with National Western for policies personally sold under which commissions are also paid in accordance with standard commission schedules. Commissions paid under these agency contracts totaled $46,507 and $155,107 in 2022 and 2021, respectively. National Western holds an investment totaling approximately 9.4% of the issued and outstanding shares of Moody Bancshares, Inc. at December 31, 2022 and the Three R Trusts owns a majority of the issued and outstanding shares. The Three R Trusts are four separate Texas trusts for the benefit of the children of Robert L. Moody, Sr. (Robert L. Moody, Jr., Ross R. Moody, Russell S. Moody, and Frances A. Moody-Dahlberg). Moody Bancshares, Inc. owns 100% of the outstanding shares of Moody Bank Holding Company, Inc., which owns approximately 98.5% of the outstanding shares of The Moody National Bank of Galveston ("MNB"). Ross R. Moody and Frances A. Moody-Dahlberg are members of the Board of Directors of Moody Bancshares, Inc. National Western utilizes MNB for certain bank custodian services as well as for certain administrative services with respect to its defined benefit plan. Fees totaling $486,813 and $536,101 were paid to MNB with respect to these services in 2022 and 2021, respectively. The Company maintains an office space lease with MNB and made payments totaling $32,101 and $32,101 in 2022 and 2021, respectively, under this lease. American National Group, Inc. ("American National") was previously a related party until it was acquired by Brookfield Asset Management Reinsurance Partners Ltd. in the second quarter of 2022. Related party transaction totals with American National disclosed here for 2022 cover the period prior to the acquisition. National Western paid American National $116,314 and $642,099 in 2022 and 2021, respectively, in premiums for certain company sponsored benefit plans and $1,506,422 and $3,021,197 in 2022 and 2021, respectively, in reimbursements for claim costs for which American National provides third party administrative services. American National paid National Western $1,569,190 and $3,147,080 in 2022 and 2021, respectively, in premiums for its company sponsored benefit plans. National Western maintained an investment agreement with American National Registered Investment Advisory, Inc., a subsidiary of American National, under which $29,753 and $58,032 was paid in 2022 and 2021, respectively, for services. Robert L. Moody, Sr., served as Chairman Emeritus and Ross R. Moody served as a non-executive Chairman of the Board of American National. E. Douglas McLeod and E. J. Pederson, members of the NWLGI Board of Directors, were also members of the American National Board of Directors. During 2015, American National sold a 24.93% undivided participation in a mortgage loan to The Westcap Corporation for $20.0 million. The Westcap Corporation will receive 24.93% of all future cash receipts, which will be recognized over the life of the loan. This mortgage loan investment was no longer a related party transaction at December 31, 2022. The mortgage loan investment had a balance of $17.9 million as of December 31, 2021, which is reflected in the Consolidated Balance Sheets. Todd M. Wallace serves as a director of NWLGI. Mr. Wallace is the President of the Central Texas Region of Jones, Lang, LaSalle Brokerage, Inc. ("JLL"). Braker P III, LLC, a subsidiary of National Western, entered into a leasing agent agreement with JLL in 2022 under which payments were made totaling $180,208 in 2022. Ozark National also entered into a services agreement with JLL in 2022, and no payments were made under that agreement in 2022. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSSubsequent events have been evaluated through the date of filing and no other reportable items were identified. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investment in Related Parties | Type of Investment Amortized Cost or Cost (1) Fair Value Balance Sheet Amount Debt securities available-for-sale: United States government and government agencies and authorities $ 23,816 23,355 23,355 States, municipalities, and political subdivisions 476,338 411,499 411,499 Foreign governments 62,964 45,887 45,887 Public utilities 681,785 615,137 615,137 Corporate 6,199,886 5,631,571 5,631,571 Commercial mortgage-backed 21,965 20,285 20,285 Residential mortgage-backed 337,186 321,032 321,032 Asset-backed 634,820 542,867 542,867 Total securities available-for-sale 8,438,760 7,611,633 7,611,633 Debt securities trading: United States government and government agencies and authorities — — — States, municipalities, and political subdivisions 16,603 12,126 12,126 Foreign Government — — — Public utilities 36,010 26,030 26,030 Corporate 574,227 450,135 450,135 Commercial mortgage-backed 253,567 221,096 221,096 Residential mortgage-backed 18,369 16,857 16,857 Asset-backed 343,618 313,588 313,588 Collateralized loan obligation 27,203 26,162 26,161 Total securities trading 1,269,597 1,065,994 1,065,993 Total fixed maturity bonds 9,708,357 8,677,627 8,677,626 Equity securities: Common stocks: Public utilities 688 1,441 1,441 Banks, trust, and insurance companies 1,575 3,098 3,098 Industrial, miscellaneous, and all others 7,959 13,868 13,868 Preferred stocks 4,325 3,669 3,669 Total equity securities 14,547 22,076 22,076 Derivatives, index options 23,669 23,669 Mortgage loans on real estate 507,020 505,730 Policy loans 70,495 70,495 Other long-term investments (2) 262,106 262,106 Short-term investments 3,937 3,937 Total investments other than investments in related parties $ 10,590,131 9,565,639 (1) Bonds and mortgages are shown at amortized cost reduced by repayments and allowances for possible losses. Real estate is stated at cost net of accumulated depreciation. Derivatives are shown at fair value. (2) There was no real estate acquired by foreclosure included in other long-term investments. See accompanying report of Independent Registered Public Accounting Firm. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | 2022 2021 ASSETS Investment in subsidiaries $ 2,009,817 2,538,996 Cash and cash equivalents 1,939 7,017 Deferred Federal income tax asset 14,972 8,258 Other assets 233 263 Total assets $ 2,026,961 2,554,534 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Current Federal income tax liability $ 18,444 14,388 Other liabilities 1,306 455 Total liabilities 19,750 14,843 Stockholders' Equity: Common Stock: Class A - $0.01 par value; 7,500,000 shares authorized; 3,436,020 issued and outstanding in 2022 and 2021 34 34 Class B - $0.01 par value; 200,000 shares authorized, issued, and outstanding in 2022 and 2021 2 2 Additional paid-in capital 41,716 41,716 Accumulated other comprehensive income (loss) (416,397) 215,953 Retained earnings 2,381,856 2,281,986 Total stockholders’ equity 2,007,211 2,539,691 Total liabilities and stockholders' equity $ 2,026,961 2,554,534 See Notes to Condensed Financial Information of Registrant 2022 2021 2020 Revenues: Dividend income from subsidiaries $ 2,000 — 1,395 Net investment income 36 10 9 Total revenues 2,036 10 1,404 Expenses: Other operating expenses 5,140 2,660 3,322 Total expenses 5,140 2,660 3,322 Earnings (loss) before Federal income taxes (3,104) (2,650) (1,918) Federal income taxes (benefit) (1,077) (537) (2,212) Earnings (loss) before equity in earnings of affiliates (2,027) (2,113) 294 Equity in earnings of affiliates 103,171 182,794 92,018 Net earnings $ 101,144 180,681 92,312 2022 2021 2020 Cash flows from operating activities: Net earnings $ 101,144 180,681 92,312 Adjustments to reconcile net earnings to cash provided by operating activities: Equity in earnings of affiliates (103,171) (182,794) (92,018) Depreciation and amortization 30 30 30 Change in: Federal income tax, net 4,056 2,721 16,397 Deferred Federal income tax (6,714) (537) (7,481) Other, net 851 (188) (830) Net cash provided by (used in) operating activities (3,804) (87) 8,410 Cash flows from investing activities: Payments to acquire businesses — — — Net cash provided by (used in) investing activities — — — Cash flows from financing activities: Dividends on common stock (1,274) (1,272) (1,273) Net cash provided by (used in) financing activities (1,274) (1,272) (1,273) Net increase (decrease) in cash, cash equivalents, and restricted cash (5,078) (1,359) 7,137 Cash, cash equivalents, and restricted cash at the beginning of year 7,017 8,376 1,239 Cash, cash equivalents, and restricted cash at the end of year $ 1,939 7,017 8,376 1. Basis of Presentation The accompanying condensed financial information of the Parent Company Only should be read in conjunction with the consolidated financial statements and notes thereto of National Western Life Group, Inc. ("NWLGI"). As discussed in Note (1) Summary of Significant Accounting Policies of the Consolidated Financial Statements, on October 1, 2015, National Western Life Insurance Company ("National Western" or "NWLIC") completed its previously announced holding company reorganization and became a wholly owned subsidiary of NWLGI. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. In the Parent Company Only condensed financial statements, NWLGI's investments in subsidiaries are stated at cost plus equity in undistributed income (losses) of subsidiaries since the date of acquisition. The subsidiary information presented is eliminated in the consolidated financial statements. NWLGI and its subsidiaries pay service fees to NWLIC which are included in expenses and equity earnings. These service fees are also eliminated in the consolidated financial statements. 2. Dividend Payments In the years ended December 31, 2022, 2021, and 2020, dividends of $2.0 million, $0.0 million and $0.0 million were declared and paid by NWLIC to NWLGI, respectively. In the years ended December 31, 2022, 2021, and 2020, dividends of $0.0 million, $0.0 million, and $1.4 million were declared and paid by NIS to NWLGI, respectively. These dividend payments are eliminated in the consolidated financial statements. |
Schedule IV - Reinsurance Infor
Schedule IV - Reinsurance Information | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance Information | Gross Amount Ceded to Other Companies Assumed from Other Companies Net amount Percentage of Amount Assumed to Net (In thousands) 2022 Life insurance face amount in force $ 19,668,410 3,549,917 — 16,118,493 — % Premiums: Life insurance $ 90,854 6,443 177 84,588 0.2 % Accident and health insurance 3,252 — — 3,252 — % Annuities 18 — — 18 — % Total premiums $ 94,124 6,443 177 87,858 0.2 % 2021 Life insurance face amount in force $ 20,888,431 3,781,167 — 17,107,264 — % Premiums: Life insurance $ 92,891 6,419 194 86,666 0.2 % Accident and health insurance 3,346 — — 3,346 — % Annuities 31 — — 31 — % Total premiums $ 96,268 6,419 194 90,043 0.2 % 2020 Life insurance face amount in force $ 21,954,160 4,013,073 — 17,941,087 — % Premiums: Life insurance $ 95,579 6,217 205 89,567 0.2 % Accident and health insurance 2,956 — — 2,956 — % Annuities 19 — — 19 — % Total premiums $ 98,554 6,217 205 92,542 0.2 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Description Balance at Beginning of Period Charged to Costs and Expenses (1) Charged to Retained Earnings Reductions Balance at End of Period Valuation accounts deducted from applicable assets: Allowance for current expected credit losses on mortgage loans: December 31, 2022 $ 2,987 588 — — 3,575 December 31, 2021 $ 2,486 501 — — 2,987 December 31, 2020 $ 675 1,307 504 — 2,486 Allowance for current expected credit losses on debt securities: December 31, 2022 $ — — — — — December 31, 2021 $ — — — — — Allowance for current expected credit losses on reinsurance recoverables: December 31, 2022 $ — 450 — — 450 December 31, 2021 $ — — — — — December 31, 2020 $ — — — — — Allowance for possible losses on real estate: December 31, 2022 $ 424 — — (74) 350 December 31, 2021 $ 424 — — — 424 December 31, 2020 $ 596 — — (172) 424 Notes: (1) On January 1, 2020, the Company adopted ASU 2016-13 and recorded a transition adjustment to retained earnings. See accompanying report of Independent Registered Public Accounting Firm. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation National Western Life Insurance Company ("National Western" or "NWLIC") became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI") effective October 1, 2015 under a previously announced holding company reorganization. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. The accompanying Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western, Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). All significant intercorporate transactions and accounts have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs ("DPAC"), deferred sales inducements ("DSI"), the value of business acquired ("VOBA"), and the cost of reinsurance ("COR"), (4) valuation allowances for deferred tax assets, (5) goodwill, (6) allowances for credit losses on available-for-sale debt securities, (7) allowance for credit losses for mortgage loans and real estate, and (8) commitments and contingencies. National Western and Ozark National also file financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance and Missouri Department of Commerce and Insurance, respectively, which are significantly different from Consolidated Financial Statements prepared in accordance with GAAP. These differences are described in detail in Note (9) Statutory Information . Certain amounts in the prior year Consolidated Financial Statements have been reclassified to conform to the current year financial statement presentation. |
Investments | Investments Fixed Maturities and Equity Securities The Company purchases debt securities with the intent to hold to maturity. However, the Company's execution of a funds withheld reinsurance agreement introduced embedded derivative accounting requiring fair value reporting for debt securities. This precluded the Company from using a historical cost basis which is typically associated with a hold to maturity approach. Accordingly, all debt securities were classified as available-for-sale as of December 31, 2020. Investments in debt securities classified as securities available-for-sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of these securities are reflected as a component of Stockholders' Equity in Accumulated other comprehensive income (loss). The unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. With the execution of a funds withheld coinsurance agreement, the Company implemented accounting policies related to trading debt securities in its financial statements for debt securities purchased and held in the funds withheld assets. These trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreement to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Consolidated Financial Statements at their fair values with changes in their values reflected as a component of Net investment income in the Consolidated Statements of Earnings. Since these trading debt securities pertain to investment activities related to coinsurance agreements rather than as an income strategy based on active trading, they are classified as investing activities in the Consolidated Statements of Cash Flows. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts on purchased securities are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. As further disclosed under Accounting Standards and Changes in Accounting in this note, the Company adopted accounting guidance for current expected credit loss recognition as of January 1, 2020. The Company determines current expected credit losses for available-for-sale debt securities when fair value is less than amortized cost, interest payments are missed and the security is experiencing credit issues. The Company considers a number of factors in making a determination including: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline had occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Provisions to and releases from the allowance for credit losses are recorded in Net investment income in the Consolidated Statements of Earnings. Equity securities, common and non-redeemable preferred stocks are reported at fair value with changes in fair value included in Net investment income in the Consolidated Statement of Earnings. Alternative Investments The Company invests in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (i.e. investment funds). The Company does not have a controlling interest and is not the primary beneficiary for any of its alternative investments; accordingly, these investments are accounted for using the equity method of accounting where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect the pro rata ownership percentage of the operating results as indicated by the net asset value in the investment fund financial statements, which can be done on a lag of up to three months when investee information is not received in a timely manner. Alternative investments are reported in other long-term investments in the Consolidated Balance Sheets. The proportionate share of investment fund income is reported as a component of Net investment income in the Consolidated Statements of Earnings. Derivatives Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting, recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods, typically one year. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as Net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which further reduces the Company's credit exposure. At December 31, 2022 and 2021, the fair value of index options owned by the Company totaled $23.7 million and $101.6 million, respectively. Of these amounts, $(30.7) million and $54.4 million represent net unrealized gains/(losses) on the options held at December 31, 2022 and 2021, respectively. Additionally, the Company is a party to coinsurance funds withheld reinsurance agreements under which identified assets are maintained in funds withheld accounts. Under terms of these coinsurance funds withheld agreements, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurers creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability on the Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in the Net investment income in the Consolidated Statements of Earnings. The embedded derivative on reinsurance is classified as a Level 2 and Level 3 financial instrument in the fair value hierarchy because its valuation input is the fair value market adjustments on the underlying Level 2 and Level 3 debt securities. See Note (4) Fair Values of Financial Instruments for further details of fair value disclosures. In the Consolidated Statements of Cash Flows, changes in the funds withheld liability are reported in operating activities. Realized gains on funds withheld assets are transferred to the reinsurer and reported as investing activities in the Consolidated Statements of Cash Flows. The value of the embedded derivative at December 31, 2022 and 2021 was $335.0 million and $84.7 million, respectively. Mortgage Loans and Other Long-term Investments Mortgage loans and other long-term investments are primarily stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Mortgage loans made by the reinsurers under the funds withheld reinsurance agreements are reported at fair value. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. Credit loss allowances for mortgage loan investments are recorded following the current expected credit loss (“CECL”) standards under GAAP. The Company uses the Weighted Average Remaining Maturity ("WARM") method, which uses an average annual charge-off rate applied to each mortgage loan risk category. The WARM method is also used to calculate the CECL allowance on unfunded mortgage loan commitments. The CECL allowance on unfunded mortgage loan commitments is reported in other liabilities in the Consolidated Balance Sheets, with changes in the CECL allowance related to unfunded commitments recorded through Other operating expenses in the Consolidated Statements of Earnings. Mortgage loans are placed on non-accrual status if there are concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans are classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest had been collected or the mortgage loan had been restructured such that the collection of interest was considered likely. Accrued Investment Income The accrual of investment income on invested assets is discontinued when it is determined that it is probable that the income will not be collected. Realized Gains and Losses on Investments Realized gains and losses for securities available-for-sale and trading securities are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. Fair Values Fair values of equity securities are based on quoted market prices in active markets when available. Fair values of fixed maturities are based on market prices in the fixed income markets. Fair values of derivative investments are based on the latest counterparty model market prices. Items not readily marketable are generally based on values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note (4) Fair Values of Financial Instruments for more information on fair value policies, including assumptions and the amount of securities priced using the valuation models. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. |
Deferred Transaction Costs | Deferred Transaction Costs Deferred policy acquisition costs ("DPAC") include certain costs of successfully acquiring new insurance business, including commissions and other expenses related directly to the production of new business, to the extent recoverable from future policy revenues and gross profits (indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expenses as incurred). Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. These deferred sales inducements ("DSI") are also deferrable to the extent recoverable. For interest sensitive universal life and annuity products, these costs are amortized in relation to the present value of expected gross margins or gross profits on these policies. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred policy acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract are not written off, but instead are carried over to the new contract . Amortization of DPAC and DSI is reviewed each year and adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. The value of insurance in force business acquired ("VOBA") is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policy liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. The Company performs recoverability testing of the value of business acquired annually. The Company has recorded on the Consolidated Balance Sheet a deferred Cost of Reinsurance ("COR") asset having an original amount of $102.8 million associated with the funds withheld reinsurance transaction with Prosperity. This represents the amount of assets transferred at the closing date of the funds withheld agreement (debt securities, policy loans, and cash) in excess of the GAAP liability ceded plus a $48.0 million ceding commission paid to the reinsurer. The COR balance is amortized commensurate with the runoff of the ceded block of funds withheld business and the amortization expense reported in the Consolidated Statements of Earnings. |
Reinsurance | Reinsurance The Company cedes insurance and investment contracts under a coinsurance with funds withheld arrangement, following reinsurance accounting for transactions that provides indemnification against loss or liability relating to insurance risk. To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge the Company's obligations as the primary insurer. Assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets. Under funds withheld reinsurance agreements, funds withheld assets consist of a segregated portfolio of cash and invested assets sufficient to support the current ceded balance of statutory reserves. The fair value of the funds withheld is recorded as a funds withheld liability and any excess or shortfall in relation to statutory reserves is settled periodically. Refer to Note (5) Reinsurance for more information. |
Other Assets | Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs, furniture and equipment and leasehold improvements, which are reported at cost less allowances for depreciation and amortization. Costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance are expensed. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of capitalized costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Capitalized software, property, and equipment had a carrying value of $165.6 million at December 31, 2022 and $165.3 million at December 31, 2021, and accumulated depreciation and amortization of $96.7 million at December 31, 2022 and $84.0 million at December 31, 2021. Depreciation and amortization expense for capitalized software, furniture and equipment, and leasehold improvements was $14.3 million, $13.0 million, and $11.9 million in 2022, 2021, and 2020, respectively. Other assets also include goodwill at December 31, 2022 and 2021 of $13.9 million related to the excess of the amounts paid to acquire companies over the fair value of other net tangible and intangible assets acquired. It represents the future economic benefits arising from assets acquired and liabilities assumed that could not be individually identified. Goodwill is not amortized but is subject to annual impairment analysis or more frequently if indicators are present. If indicators suggest an impairment may have occurred and suggest the value has declined below the carrying value of goodwill the balance is adjusted downward. Refer to Note (7) Goodwill and Specifically Identifiable Intangible Assets for further information. |
Future Policy Benefits | Future Policy Benefits Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980, and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8.00%, and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as an embedded derivative. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. |
Other Policy Claims and Benefits | Other Policy Claims and Benefits Unearned revenue reserves are maintained that reflect the unamortized balance of charges assessed to interest sensitive contract holders which serve as compensation for services to be performed over future periods (policy premium loads). These charges are deferred and recognized in income over the period benefited using the same assumptions and factors used to amortize deferred policy acquisition costs. |
Stock Compensation | Share-based Compensation The Company accounts for share-based compensation under GAAP using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock appreciation rights, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected lapses from forfeiture or termination. |
Deferred Income Taxes | Deferred Income Taxes Federal income taxes are accounted for under the asset and liability method. Under this method, 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 bases. 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 effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. |
Recognition of Premiums, Contract Revenues and Costs | Recognition of Premiums, Contract Revenues and Costs Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing costs over premium-paying periods of the policies. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income, as well as other comprehensive income items not recognized through net income. Other comprehensive income includes unrealized gains and losses on available-for-sale securities as well as the underfunded obligations for certain retirement and postretirement benefit plans. These items are included in accumulated other comprehensive income, net of tax and other offsets, in stockholders’ equity. The changes in unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss), excludes net investment gains and losses included in net income that represent transfers from unrealized to realized gains and losses. These transfers are further discussed in Note (2) Investments . The components of the underfunded obligation for certain retirement and postretirement benefit plans are provided in Note (14) Pension and Other Postretirement Plans |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. For example, significant estimates and assumptions are utilized in the valuation of investments, the determination of credit losses and impairments of investments, the recoverability and amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired, the calculation of policyholder liabilities and accruals and the determination of pension expense. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized, which could have a material impact on the Consolidated Financial Statements. |
Accounting Standards and Changes in Accounting | Accounting Standards and Changes in Accounting Recent accounting pronouncements not yet adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This update pertains to long-duration contracts and improving the timeliness of recognizing changes in the liability for future policy benefits, simplifying accounting for certain market-based options, simplifying the amortization of deferred policy acquisition costs, and improving the effectiveness of required disclosures. Amendments include the following: A. Require an insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumptions at each quarterly reporting date with the impact recognized in other comprehensive income ("OCI"). B. Require an insurance entity to measure all market risk benefits, which are contracts or contract features that provide protection to the policyholder from capital market risk, associated with deposit (i.e. account balance) contracts at fair value. The periodic change in fair value attributable to change in instrument-specific credit risk is recognized in OCI. C. Simplify amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on a constant basis over the expected term of the related contracts. Deferred policy acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. D. Require an insurance entity to add disclosures of disaggregated rollforwards of significant insurance liabilities and other account balances (i.e. beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs). The insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. In November 2020, the FASB released ASU 2020-11 Financial Services – Insurance (Topic 944) . The amendments in this update deferred the effective date of adoption of ASU 2018-12 for all entities by one year. In particular, for publicly traded business entities, adoption of LDTI was made effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Accordingly, the Company's required adoption date is January 1, 2023. The Company has selected the modified retrospective transition method, which requires the amended guidance be applied to the earliest period presented, which for comparable prior period reporting will be a January 1, 2021 transition date. When the Company adopts the updated standard beginning January 1, 2023, opening retained earnings and accumulated other comprehensive income balances will be adjusted for the January 1, 2021 transition date impacts and prior periods presented will be restated following the updated standard. While the Company has substantially completed the necessary data gathering, valuation modeling, and computations, the results are still subject to independent review and vetting. Accordingly, at the time of this filing, the Company currently expects an increase in Total stockholders' equity ranging from $100.0 million to $200.0 million as of the transition date. Accounting pronouncements adopted In March 2022, the FASB released ASU 2022-02 Financial Instruments – Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures. The amendments in this Update eliminate the accounting guidance for troubled-debt restructurings by creditors in Subtopic 310-40, Receivables - Troubled Debt Restructurings by Creditors, but enhances disclosure requirements for certain loan modifications in which the debtor is experiencing financial difficulties. Additionally, the amendments in this Update require public business entities to disclose current-period gross write offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20, Financial Instruments - Credit Losses - Measured at Amortized Cost. The updates are required to be applied prospectively beginning in fiscal years after December 15, 2022, including interim periods within those fiscal years. The Company elected to adopt the requirements of this update in its Consolidated Financial Statements for the year ended December 31, 2022. The adoption of this ASU did not have a material impact on the results of operations or financial position of the Company. In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplifies various aspects of the income tax accounting guidance and is applied using different approaches depending on the specific amendment. The amendments were effective for fiscal periods beginning after December 15, 2020. The adoption of this ASU did not have a material impact on the results of operations or financial position of the Company. In June 2016, the FASB released ASU 2016-13, Financial Instruments-Credit Losses , which revised the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaced the existing incurred loss recognition model with an expected loss recognition model (“CECL”). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this Update added clarification and correction to ASU 2016-13 around accrued interest, transfers between classifications or categories for loans and debt securities, consideration of recoveries in estimating allowances, reinsurance recoveries, consideration of prepayments and estimated costs to sell when foreclosure is probable. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The amendments in this Update added clarification and correction to ASU 2016-13 around expected recoveries for purchased financial assets with credit deterioration, transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, and financial assets secured by collateral maintenance provisions. The guidance for these pronouncements was effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained earnings. Effective January 1, 2020, the Company adopted the expected loss recognition model related to mortgage loans, debt securities held-to-maturity at that time and reinsurance recoverable using a modified retrospective approach. The change in accounting, net of tax, of $3.0 million was recorded as a charge to retained earnings in the first quarter of 2020 reflecting initial allowance for estimated credit losses balances of $1.2 million on mortgage loans and $3.3 million on debt securities held to maturity. The estimated credit losses for the reinsurance recoverable were immaterial to the financial statements, but are monitored on a quarterly basis for any changes. Refer to Note (2) Investments for more information. Certain disclosures required by ASU 2016-13 are not included in the Consolidated Financial Statements as the impact of this standard was not material. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Unrealized Gains and Losses on Available-for-Sale Securities Reclassified out of Accumulated Other Comprehensive Income | The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2022, 2021 and 2020. Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Years Ended December 31, 2022 2021 2020 (In thousands) Other net investment gains $ 5,111 16,372 5,677 Net OTTI losses recognized in earnings — — — Earnings before Federal income taxes 5,111 16,372 5,677 Federal income taxes 1,073 3,438 1,192 Net earnings $ 4,038 12,934 4,485 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Components of Net Investment Income | The major components of net investment income are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross investment income: Debt and equity securities $ 298,965 309,082 373,479 Mortgage loans 20,691 20,155 13,162 Policy loans 2,626 2,667 3,361 Short-term investments 3,940 293 2,160 Other investment assets 27,409 16,321 12,698 Total investment income 353,631 348,518 404,860 Less investment expenses 2,420 2,762 2,412 Net investment income (excluding derivatives and trading securities) 351,211 345,756 402,448 Index option derivative gain (loss) (86,866) 120,718 14,754 Embedded derivative on reinsurance 250,230 84,725 — Trading securities market adjustments (214,935) 11,331 — Net investment income $ 299,640 562,530 417,202 |
Schedule of Mortgage Loans by Geographic Region | The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Geographic Region: West South Central $ 220,357 43.2 $ 237,644 48.5 East North Central 60,520 11.9 61,397 12.6 South Atlantic 104,334 20.4 81,847 16.7 East South Central 18,753 3.7 20,069 4.1 West North Central 11,942 2.3 12,213 2.5 Pacific 11,924 2.3 13,800 2.8 Middle Atlantic 40,742 8.0 36,296 7.4 Mountain 42,023 8.2 26,613 5.4 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 |
Schedule of Mortgage Loans by Property Type | December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Property Type: Retail $ 169,618 33.2 $ 164,895 33.7 Office 140,092 27.4 142,824 29.2 Storage facility 79,853 15.7 73,401 15.0 Industrial 35,896 7.0 34,212 7.0 Hotel 23,431 4.6 23,748 4.8 Land/lots 4,605 0.9 4,597 0.9 Apartments 38,377 7.5 38,920 7.9 Residential 14,599 2.9 1,905 0.4 All other 4,124 0.8 5,377 1.1 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,757 19.7 $ 100,806 20.6 50% to 60% 145,093 28.4 128,191 26.2 60% to 70% 217,445 42.6 202,670 41.3 70% to 80% 47,300 9.3 58,212 11.9 Gross balance 510,595 100.0 489,879 100.0 Market value adjustment (1,290) (0.3) 412 0.1 Allowance for credit losses (3,575) (0.7) (2,987) (0.6) Totals $ 505,730 99.0 $ 487,304 99.5 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. |
Schedule of Allowance for Mortgage Loan | The following table represents the mortgage loans allowance for credit losses. Years Ended December 31, 2022 2021 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 2,987 2,486 Provision (release) during the period 588 501 Balance, end of period $ 3,575 2,987 |
Schedule of Contractual Maturities of Mortgage Loan Principal Balances | The contractual maturities of mortgage loan principal balances at December 31, 2022 and 2021 were as follows: December 31, 2022 December 31, 2021 Amount % Amount % (In thousands, except for percentages) Principal Balance by Contractual Maturity: Due in one year or less $ 2,299 0.5 $ 13,422 2.7 Due after one year through five years 184,439 36.1 127,766 26.1 Due after five years through ten years 205,712 40.3 222,444 45.4 Due after ten years through fifteen years 107,503 21.0 115,313 23.5 Due after fifteen years 10,869 2.1 11,280 2.3 Totals $ 510,822 100.0 $ 490,225 100.0 |
Schedule of Amortized Costs and Fair Values of Securities Available for Sale | The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2022. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses (In thousands) Debt securities: U.S. Agencies $ 21,003 — (377) 20,626 — U.S. Treasury 2,813 6 (90) 2,729 — States and political subdivisions 476,338 668 (65,507) 411,499 — Foreign governments 62,964 — (17,076) 45,888 — Public utilities 681,785 117 (66,765) 615,137 — Corporate 6,199,886 1,940 (570,255) 5,631,571 — Commercial mortgage-backed 21,965 — (1,680) 20,285 — Residential mortgage-backed 337,186 183 (16,338) 321,031 — Asset-backed 634,820 168 (92,121) 542,867 — Totals $ 8,438,760 3,082 (830,209) 7,611,633 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Agencies $ 43,472 1,071 — 44,543 U.S. Treasury 2,469 21 — 2,490 States and political subdivisions 479,148 27,733 (921) 505,960 Foreign governments 62,979 293 (881) 62,391 Public utilities 745,359 39,919 (309) 784,969 Corporate 6,322,471 391,287 (12,805) 6,700,953 Commercial mortgage-backed 27,016 741 — 27,757 Residential mortgage-backed 530,702 18,921 — 549,623 Asset-backed 390,634 2,123 (2,497) 390,260 Totals $ 8,604,250 482,109 (17,413) 9,068,946 |
Schedule of Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2022. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: U.S. Government agencies $ 20,626 (377) — — 20,626 (377) U.S. Treasury 1,749 (90) — — 1,749 (90) States and political subdivisions 346,009 (55,014) 28,420 (10,493) 374,429 (65,507) Foreign governments 22,591 (7,658) 23,296 (9,420) 45,887 (17,078) Public utilities 601,824 (61,970) 10,747 (4,795) 612,571 (66,765) Corporate bonds 4,985,075 (432,492) 434,625 (137,763) 5,419,700 (570,255) Commercial mortgage-backed 20,285 (1,680) — — 20,285 (1,680) Residential mortgage-backed 307,410 (16,338) — — 307,410 (16,338) Asset-backed 368,132 (59,936) 156,719 (32,185) 524,851 (92,121) Total $ 6,673,701 (635,555) 653,807 (194,656) 7,327,508 (830,211) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale debt securities by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2021. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Debt securities: States and political subdivisions $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate bonds 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Home equity 188,960 (2,497) — — 188,960 (2,497) Total $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) |
Schedule of Amortized Cost and Fair Value of Investments In Debt Securities | The amortized cost and fair value of investments in available-for-sale debt securities at December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 719,108 714,084 Due after 1 year through 5 years 2,866,915 2,747,445 Due after 5 years through 10 years 1,812,394 1,625,461 Due after 10 years 2,046,372 1,640,459 7,444,789 6,727,449 Mortgage and asset-backed securities 993,971 884,184 Total before allowance for credit losses 8,438,760 7,611,633 Allowance for credit losses — — Total $ 8,438,760 7,611,633 |
Schedule of Realized Gains (Losses) Excluding Impairments | The table below presents realized gains and losses for the periods indicated. Years Ended December 31, 2022 2021 2020 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 5,304 16,377 5,677 Realized losses on disposal (193) (5) — Held-to-maturity debt securities: Realized gains on redemption — — 12,734 Realized losses on redemption — — (1) Real estate 1,244 (1,421) 2,661 Mortgage loans — — — Other — (1) — Totals $ 6,355 14,950 21,071 |
Schedule of Allowance for Debt Securities Held to Maturity | The following table presents the available-for-sale debt securities allowance for credit losses for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — (Releases)/provision during period — — Balance, end of period $ — — |
Schedule of Allowance for Debt Securities Available for Sale | The following table presents the available-for-sale debt securities allowance for credit losses for the years ended December 31, 2022 and 2021. December 31, 2022 2021 Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — (Releases)/provision during period — — Balance, end of period $ — — |
Schedule of Net Unrealized Gains (Losses) on Investment Securities | Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2022 and 2021, are as follows: December 31, 2022 2021 (In thousands) Gross unrealized gains $ 3,082 482,109 Gross unrealized losses (830,209) (17,413) Adjustments for: Deferred policy acquisition costs and sales inducements 295,527 (178,340) Deferred Federal income tax expense 111,636 (60,135) Net unrealized gains (losses) on investment securities $ (419,964) 226,221 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The tables below present the fair value of derivative instruments as of December 31, 2022 and 2021. December 31, 2022 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 23,669 Fixed-index products Universal Life and Annuity Contracts $ 62,258 Embedded derivative on reinsurance contract Funds Withheld Liability (334,955) Total $ 23,669 $ (272,697) December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 101,622 Fixed-index products Universal Life and Annuity Contracts $ 142,761 Embedded derivative on reinsurance contract Funds Withheld Liability (84,725) Total $ 101,622 $ 58,036 |
Schedule of Effect of Derivative Instruments in Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2022, 2021 and 2020. Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2022 2021 2020 (In thousands) Equity index options Net investment income $ (86,865) 120,718 14,754 Fixed-index products Universal life and annuity contract interest 89,415 (133,327) (44,970) Embedded derivative on reinsurance contract Net investment income 250,230 84,725 — $ 252,780 72,116 (30,216) |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables set forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,611,633 — 7,148,838 462,795 Debt securities, trading 1,065,993 — 942,756 123,237 Equity securities 22,076 18,407 3,669 — Mortgage loans 19,334 — — 19,334 Derivatives, index options 23,669 — — 23,669 Short-term investments 3,937 — 3,937 — Total assets $ 8,746,642 18,407 8,099,200 629,035 Policyholder account balances (a) $ 62,258 — — 62,258 Other liabilities (b) (314,413) — (324,712) 10,299 Total liabilities $ (252,155) — (324,712) 72,557 December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. |
Schedule of Significant Unobservable Inputs for Fair Value Measurements | The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. December 31, 2022 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2022 $ 326,962 74,822 101,622 8,469 511,875 Total realized and unrealized gains (losses): Included in net earnings — (9,709) (86,866) (1,703) (98,278) Included in other comprehensive income (loss) (41,424) — — — (41,424) Purchases, sales, issuances and settlements, net: Purchases 209,616 58,389 54,190 12,693 334,888 Sales — — — — — Issuances — — — — — Settlements (32,359) (265) (45,277) (125) (78,026) Transfers into (out of) Level 3 — — — — — Balance at end of period December 31, 2022 $ 462,795 123,237 23,669 19,334 629,035 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — (9,709) (30,779) (1,703) (42,191) Benefits and expenses — — — — — Total $ — (9,709) (30,779) (1,703) (42,191) December 31, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Share-based Comp Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 142,761 7,869 150,630 Total realized and unrealized gains (losses): Included in net earnings (11,412) (89,416) 14,221 (86,607) Included in other comprehensive income (loss) — — — — Purchases, sales, issuances and settlements, net: Purchases — 54,190 — 54,190 Sales — — — — Issuances — — 1,015 1,015 Settlements — (45,277) (2,563) (47,840) Transfers into (out of) Level 3 1,169 — — 1,169 Balance at end of period December 31, 2022 $ (10,243) 62,258 20,542 72,557 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income (11,412) — — (11,412) Benefits and expenses — (30,779) 14,221 (16,558) Total $ (11,412) (30,779) 14,221 (27,970) December 31, 2021 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2021 $ — — 132,821 — 132,821 Total realized and unrealized gains (losses): Included in net earnings — 757 120,717 412 121,886 Included in other comprehensive income (loss) 876 — — — 876 Purchases, sales, issuances and settlements, net: Purchases 245,456 75,265 47,203 8,103 376,027 Sales — — — — — Issuances — — — — — Settlements (13,031) (1,200) (199,119) (46) (213,396) Transfers into (out of) Level 3 93,661 — — — 93,661 Balance at end of period December 31, 2021 $ 326,962 74,822 101,622 8,469 511,875 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — 757 54,420 412 55,589 Benefits and expenses — — — — — Total $ — 757 54,420 412 55,589 December 31, 2021 Other Liabilities Policyholder Account Balances Share-based Comp Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 $ 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 133,326 5,581 138,907 Included in other comprehensive income (loss) — — — Purchases, sales, issuances and settlements, net: Purchases 47,203 — 47,203 Sales — — — Issuances — 182 182 Settlements (199,119) (4,096) (203,215) Transfers into (out of) Level 3 — — — Balance at end of period December 31, 2021 $ 142,761 7,869 150,630 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — — — Benefits and expenses 54,420 5,581 60,001 Total $ 54,420 5,581 60,001 |
Schedule of Fair Value, Valuation Techniques and Significant Unobservable Inputs for Financial Instruments Categorized as Level 3 | The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: December 31, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 76,003 Discounted cash flow Discount rate 4.32% - 7.28% (5.79%) Derivatives, index options 23,669 Broker prices Implied volatility 12.94% - 34.75% (19.32%) Mortgage loans 19,334 Discounted cash flow Spread 150 - 300 bps Total assets $ 119,006 Liabilities: Policyholder account balances $ 62,258 Deterministic cash flow model Projected option cost 0.00% - 6.07% (0.65%) Share based compensation 20,542 Black-Scholes model Expected term 0.9 to 10.0 years Expected volatility 36.18% Total liabilities $ 82,800 December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 113,268 Discounted cash flow Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flow Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 |
Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured at Fair Value on Recurring Basis | The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 7,535,630 — 7,148,838 386,792 Priced internally 76,003 — — 76,003 Subtotal 7,611,633 — 7,148,838 462,795 Debt securities, trading: Priced by third-party vendors 1,065,993 — 942,756 123,237 Subtotal 1,065,993 — 942,756 123,237 Equity securities: Priced by third-party vendors 22,076 18,407 3,669 — Priced internally — — — — Subtotal 22,076 18,407 3,669 — Mortgage loans: Priced internally 19,334 — — 19,334 Subtotal 19,334 — — 19,334 Derivatives, index options: Priced by third-party vendors 23,669 — — 23,669 Subtotal 23,669 — — 23,669 Short-term Investments: Priced by third-party vendors 3,937 — 3,937 — Subtotal 3,937 — 3,937 — Total $ 8,746,642 18,407 8,099,200 629,035 Percent of total 100.0 % 0.2 % 92.6 % 7.2 % |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2022 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,611,633 7,611,633 — 7,148,837 462,796 Debt securities, trading 1,065,993 1,065,993 — 942,756 123,237 Cash and cash equivalents 295,270 295,270 295,270 — — Mortgage loans 505,730 457,873 — — 457,873 Real estate 27,712 47,867 — — 47,867 Policy loans 70,495 87,478 — — 87,478 Other loans 31,586 31,915 — — 31,915 Derivatives, index options 23,669 23,669 — — 23,669 Equity securities 22,076 22,076 18,407 3,669 — Short-term investments 3,937 3,937 — 3,937 — Life interest in Libbie Shearn Moody Trust 7,100 12,775 — — 12,775 Other investments 4,513 26,230 — — 26,230 LIABILITIES Deferred annuity contracts $ 6,054,030 4,405,510 — — 4,405,510 Immediate annuity and supplemental contracts 397,318 373,346 — — 373,346 December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real Estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity Securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 |
Deferred Transaction Costs (Tab
Deferred Transaction Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of Deferred Policy Acquisition Costs | A summary of information related to DPAC is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 569,839 382,080 723,972 Deferrals 45,444 77,306 69,857 Amortization, net of interest: Amortization, excluding unlocking, net of interest (101,477) (84,349) (107,917) Unlocking (559) 36,510 (22,358) Adjustments related to unrealized (gains) losses 416,397 158,292 (261,186) Reinsurance (19,858) — (20,288) Balance, end of year $ 909,786 569,839 382,080 |
Schedule of Information Related to DSI | A summary of information related to DSI is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 78,136 43,845 104,359 Deferrals 4,039 18,118 10,344 Amortization, net of interest: Amortization, excluding unlocking, net of interest (14,130) (14,755) (18,363) Unlocking 99 993 (4,445) Adjustments related to unrealized (gains) losses 57,498 29,935 (43,557) Reinsurance (11,243) — (4,493) Balance, end of year $ 114,399 78,136 43,845 |
Schedule of Information Related to VOBA | A summary of information related to VOBA is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 154,499 162,968 138,071 Business acquired — — — Other increase — — 35,125 Amortization: Amortization, excluding unlocking (8,005) (8,469) (10,228) Unlocking — — — Balance as of end of year $ 146,494 154,499 162,968 |
Schedule of Estimated Future Amortization of VOBA, Net of Interest | Estimated future amortization of VOBA, net of interest (in thousands), as of December 31, 2022, is as follows: 2023 $ 7,673 2024 7,363 2025 7,172 2026 7,030 2027 6,823 |
Schedule of Information Related to Cost of Reinsurance | A summary of information related to COR is provided in the following table: Years Ended December 31, 2022 2021 2020 (In thousands) Balance, beginning of year $ 89,686 102,840 — Additions — — 102,840 Amortization (11,358) (13,154) — Balance as of end of year $ 78,328 89,686 102,840 |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill were as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 13,864 Goodwill resulting from business acquisition — — — Gross goodwill, before impairments 13,864 13,864 13,864 Accumulated impairment as of beginning of year — — — Current year impairments — — — Net goodwill as of end of year $ 13,864 13,864 13,864 |
Schedule of Fair Value of Identifiable Intangible Assets Acquired | The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows. December 31, 2022 December 31, 2021 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (731) 2,800 (545) Internally developed software 7 3,800 (2,126) 3,800 (1,583) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,857) 9,600 (2,128) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2022, expected amortization expenses relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected Amortization (In thousands) 2023 $ 730 2024 730 2025 730 2026 232 2027 187 Thereafter 1,134 $ 3,743 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | A summary of segment information is provided below. Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2022: Selected Balance Sheet Items: Deferred transaction costs $ 233,460 270,035 584,158 161,354 — 1,249,007 Total segment assets 1,737,992 958,699 8,521,636 1,008,004 335,343 12,561,674 Future policy benefits 1,533,155 678,103 6,409,784 797,292 — 9,418,334 Other policyholder liabilities 25,596 15,560 118,615 15,318 — 175,089 Funds withheld liability — — 1,333,036 — — 1,333,036 Condensed Income Statements: Premiums and contract revenues $ 59,379 76,115 15,353 76,033 — 226,880 Net investment income 17,671 1,681 229,324 29,198 21,766 299,640 Other revenues 93 71 6,777 11,539 7,042 25,522 Total revenues 77,143 77,867 251,454 116,770 28,808 552,042 Life and other policy benefits 25,090 20,777 48,029 65,574 — 159,470 Amortization of deferred transaction costs 18,968 19,643 73,926 8,861 — 121,398 Universal life and annuity contract interest 758 (3,840) 18,760 — — 15,678 Other operating expenses 31,046 20,146 58,799 19,579 6,247 135,817 Federal income taxes 251 4,139 10,169 4,580 4,417 23,556 Total expenses 76,113 60,865 209,683 98,594 10,664 455,919 Segment earnings $ 1,030 17,002 41,771 18,176 18,144 96,123 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2021: Selected Balance Sheet Items: Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Income Statements: Premiums and contract revenues $ 51,294 79,085 16,809 77,109 — 224,297 Net investment income 90,006 52,227 368,234 26,989 25,074 562,530 Other revenues 105 95 5,374 12,654 4,086 22,314 Total revenues 141,405 131,407 390,417 116,752 29,160 809,141 Life and other policy benefits 24,416 26,481 67,515 69,165 — 187,577 Amortization of deferred transaction costs 9,580 (11,118) 61,881 9,118 — 69,461 Universal life and annuity contract interest 77,246 31,696 104,242 — — 213,184 Other operating expenses 26,959 19,679 53,817 20,244 5,913 126,612 Federal income taxes 656 13,249 21,094 3,675 4,762 43,436 Total expenses 138,857 79,987 308,549 102,202 10,675 640,270 Segment earnings $ 2,548 51,420 81,868 14,550 18,485 168,871 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2020: Selected Balance Sheet Items: Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Income Statements: Premiums and contract revenues $ 53,834 88,167 17,025 78,921 — 237,947 Net investment income 54,516 27,273 290,576 26,383 18,454 417,202 Other revenues 58 67 43 10,118 8,236 18,522 Total revenues 108,408 115,507 307,644 115,422 26,690 673,671 Life and other policy benefits 18,471 14,084 31,043 67,739 — 131,337 Amortization of deferred transaction costs 17,661 24,929 87,133 10,780 — 140,503 Universal life and annuity contract interest 44,782 (2,087) 163,555 — — 206,250 Other operating expenses 25,730 17,829 36,870 18,454 5,701 104,584 Federal income taxes (benefit) 265 9,143 (1,649) 4,413 3,159 15,331 Total expenses 106,909 63,898 316,952 101,386 8,860 598,005 Segment earnings (loss) $ 1,499 51,609 (9,308) 14,036 17,830 75,666 |
Reconciliation of Revenue from Segments to Consolidated | Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Premiums and Other Revenues : Premiums and contract revenues $ 226,880 224,297 237,947 Net investment income 299,640 562,530 417,202 Other revenues 25,522 22,314 18,522 Realized gains on investments 6,355 14,950 21,071 Total consolidated premiums and other revenues $ 558,397 824,091 694,742 |
Schedule of Reconciliation of Segment Federal Income Taxes to Consolidated Financial Statements | Years Ended December 31, 2022 2021 2020 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 23,556 43,436 15,331 Taxes on realized gains on investments 1,334 3,140 4,425 Total consolidated Federal income taxes $ 24,890 46,576 19,756 |
Schedule of Reconciliation of Segment Net Earnings to Consolidated Financial Statements | Years Ended December 31, 2022 2021 2020 (In thousands) Net Earnings : Total segment earnings $ 96,123 168,871 75,666 Realized gains on investments, net of taxes 5,021 11,810 16,646 Total consolidated net earnings $ 101,144 180,681 92,312 |
Schedule of Reconciliation of Segment Assets to Consolidated Financial Statements | December 31, 2022 2021 2020 (In thousands) Assets : Total segment assets $ 12,561,674 13,426,665 13,753,320 Other unallocated assets 538,553 903,524 894,950 Total consolidated assets $ 13,100,227 14,330,189 14,648,270 |
Schedule of Premiums and Contract Revenue Detailed by Country | Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) United States $ 163,733 156,614 165,217 Brazil 21,043 20,535 22,190 Taiwan 11,566 10,954 11,433 Peru 8,543 8,635 9,167 Venezuela 8,090 8,560 9,949 Haiti 7,519 4,453 4,708 Other foreign countries 32,866 39,382 38,969 Revenues, excluding reinsurance premiums 253,360 249,133 261,633 Reinsurance premiums (26,480) (24,836) (23,686) Total premiums and contract revenues $ 226,880 224,297 237,947 |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance [Abstract] | |
Schedule of Direct Premiums and Deposits Collected | A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Annuity deposits $ 236,931 462,632 358,900 Universal life insurance deposits 187,987 270,717 267,809 Traditional life and other premiums 94,379 96,429 98,711 Totals $ 519,297 829,778 725,420 |
Schedule of Net Gain from Operations, Net Income, Unassigned Surplus (Retained Earnings) and Capital and Surplus (Stockholders' Equity), on Statutory Basis Used to Report Regulatory Authorities | The table below provides the National Western and Ozark National net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2022 2021 2020 (In thousands) National Western Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 72,793 85,440 1,423 Net income $ 67,888 63,476 6,487 Unassigned surplus $ 1,500,445 1,536,112 1,461,100 Capital and surplus $ 1,544,509 1,580,176 1,505,163 Ozark National Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 26,926 23,103 24,976 Net income $ 21,629 28,183 20,966 Unassigned surplus $ 99,089 77,806 50,054 Capital and surplus $ 127,043 105,761 78,009 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2022 2021 2020 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 101,144 180,681 92,312 Dividends – Class A shares (1,237) (1,237) (1,237) Dividends – Class B shares (36) (36) (36) Undistributed earnings $ 99,871 179,408 91,039 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 97,047 2,824 174,334 5,074 88,464 2,575 Net earnings $ 98,284 2,860 175,571 5,110 89,701 2,611 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,436 200 Basic earnings per share $ 28.60 14.30 51.10 25.55 26.11 13.05 Diluted earnings per share $ 28.60 14.30 51.10 25.55 26.11 13.05 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) for 2022, 2021 and 2020 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Amounts Net of Taxes (In thousands) 2022: Unrealized gains (losses) on securities, net of effects of deferred costs of $(473,867): Net unrealized holding gains (losses) arising during the period $ (812,846) 170,698 (642,148) Reclassification adjustment for net (gains) losses included in net earnings (5,111) 1,073 (4,038) Net unrealized gains (losses) on securities (817,957) 171,771 (646,186) Foreign currency translation adjustments 515 (108) 407 Benefit plan liability adjustment 16,997 (3,569) 13,428 Other comprehensive income (loss) $ (800,445) 168,094 (632,351) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2021: Unrealized gains (losses) on securities, net of effects of deferred costs of $187,987: Net unrealized holding gains (losses) arising during the period $ (227,325) 47,738 (179,587) Reclassification adjustment for net (gains) losses included in net earnings (16,372) 3,438 (12,934) Net unrealized gains (losses) on securities (243,697) 51,176 (192,521) Foreign currency translation adjustments (20) 4 (16) Benefit plan liability adjustment 16,543 (3,474) 13,069 Other comprehensive income (loss) $ (227,174) 47,706 (179,468) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2020: Unrealized gains (losses) on securities, net of effects of deferred costs of $(304,955): Net unrealized holding gains (losses) arising during the period $ 446,280 (93,719) 352,561 Unrealized liquidity gains (losses) 8 (2) 6 Reclassification adjustment for net (gains) losses included in net earnings (5,677) 1,192 (4,485) Net unrealized (losses) gains on securities 440,611 (92,529) 348,082 Foreign currency translation adjustments 18 (4) 14 Benefit plan liability adjustment (16,182) 3,398 (12,784) Other comprehensive income (loss) $ 424,447 (89,135) 335,312 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Changes in Shares of Common Stock Outstanding | Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2022 2021 2020 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year $ 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year $ 3,636 3,636 3,636 |
Schedule of Shares Available for Grant and Stock Options Activity | The following table shows all grants issued to officers and directors for the twelve months ended December 31, 2022 and 2021. These grants were made based upon the 20-day moving average closing market price of the Class A Common Stock at the grant date. Years Ended December 31, 2022 December 31, 2021 Officers Directors Officers Directors SARs 113,127 — 64,157 — RSUs 7,591 3,710 5,301 3,530 PSUs 5,989 — 4,066 — Options Outstanding Shares Available For Issuance Pursuant to Grants Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2022 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2022 291,000 — $ — |
Schedule of Other Share / Unit Awards Activity | Liability Awards SARs RSUs PSUs Other Share/Unit Awards: Balance at January 1, 2022 186,994 18,955 24,485 Exercised (209) (7,210) (4,213) Forfeited (13,323) (1,185) (1,416) Granted 113,127 11,301 5,989 Balance at December 31, 2022 286,589 21,861 24,845 |
Schedule of Information About SARs Outstanding | The following table summarizes information about SARs outstanding at December 31, 2022. SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: $210.22 21,850 0.9 years 21,850 $216.48 10,342 3.1 years 10,342 $311.16 7,981 4.1 years 7,981 $310.55 203 4.3 years 203 $334.34 7,631 5.0 years 7,631 $303.77 9,574 6.0 years 9,574 $252.91 17,638 6.8 years 17,638 $192.10 37,394 7.9 years 25,023 $218.44 60,849 9.0 years 20,272 $220.61 113,127 10.0 years — Totals 286,589 120,514 Aggregate intrinsic value (in thousands) $ 16,672 $ 6,202 |
Schedule of SARs / Options Outstanding Using Black-Scholes Option Pricing Model | In estimating the fair value of SARs outstanding at December 31, 2022 and 2021, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2022 December 31, 2021 Expected term 0.9 to 10.0 years 1.9 to 10.0 years Expected volatility weighted-average 36.18 % 35.05 % Expected dividend yield 0.13 % 0.17 % Risk-free rate weighted-average 4.19 % 1.01 % |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Obligations and Funded Status | A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 22,056 23,927 Service cost 131 119 Interest cost 581 528 Actuarial (gain) loss (4,217) (805) Benefits paid (1,574) (1,713) Projected benefit obligations at end of year 16,977 22,056 Changes in plan assets: Fair value of plan assets at beginning of year 23,241 20,833 Actual return on plan assets (3,407) 3,265 Contributions 250 856 Benefits paid (1,574) (1,713) Fair value of plan assets at end of year 18,510 23,241 Funded status at end of year $ 1,533 1,185 |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Accumulated Other Comprehensive Income | December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ 1,533 1,185 Liabilities — — Net amount recognized $ 1,533 1,185 Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ 4,273 3,642 Prior service cost — — Net amount recognized $ 4,273 3,642 |
Schedule of Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit costs: Interest cost $ 581 528 674 Service cost 131 119 107 Expected return on plan assets (1,575) (1,425) (1,261) Amortization of net loss (gain) 134 539 580 Net periodic benefit cost (729) (239) 100 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) 765 (2,645) 503 Amortization of net loss (gain) (134) (539) (580) Total recognized in other comprehensive income (loss) 631 (3,184) (77) Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (98) (3,423) 23 |
Schedule of Assumptions Used | Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Rate of compensation increase n/a n/a December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a |
Schedule of Allocation of Plan Assets | The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2022 and 2021. December 31, 2022 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 787 787 — — Equity securities: Domestic 11,533 11,533 — — International 117 117 — — Debt securities: U.S. government agencies 601 — 601 — Corporate bonds 5,471 — 5,471 — Other invested assets 1 1 — — Total $ 18,510 12,438 6,072 — December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 852 852 — — Equity securities: Domestic 15,752 15,752 — — International 163 163 — — Debt securities: Corporate bonds 6,474 — 6,474 — Other invested assets — — — — Total $ 23,241 16,767 6,474 — |
Schedule of Pension Allocation by Type of Fund and Target Allocation | The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2022 2021 2020 Asset Category: Equity securities 63% 68% 67% Debt securities 33% 28% 28% Cash and cash equivalents 4% 4% 5% Total 100% 100% 100% |
Schedule of Acceptable Ranges for Each Asset as per Investment Policy Statement | The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% |
Schedule of Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ 1,503 2024 1,455 2025 1,459 2026 1,405 2027 1,410 2028-2032 6,398 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Obligations and Funded Status | Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 44,448 51,571 Service cost 1,038 1,235 Interest cost 1,114 1,044 Actuarial (gain) loss (13,096) (7,420) Benefits paid (1,982) (1,982) Projected benefit obligations at end of year 31,522 44,448 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982) (1,982) Fair value of plan assets at end of year — — Funded status at end of year $ (31,522) (44,448) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Accumulated Other Comprehensive Income | December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (31,522) (44,448) Net amount recognized $ (31,522) (44,448) Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ (1,509) 13,925 Prior service cost 286 345 Net amount recognized $ (1,223) 14,270 |
Schedule of Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Service cost $ 1,038 1,235 1,209 Interest cost 1,114 1,044 1,350 Amortization of prior service cost 59 59 59 Amortization of net loss (gain) 2,338 5,131 5,781 Net periodic benefit cost 4,549 7,469 8,399 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) (13,096) (7,420) 21,736 Amortization of prior service cost (59) (59) (59) Amortization of net loss (gain) (2,338) (5,131) (5,781) Total recognized in other comprehensive income (loss) (15,493) (12,610) 15,896 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (10,944) (5,141) 24,295 |
Schedule of Assumptions Used | Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Rate of compensation increase 8.00 % 8.00 % December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % |
Schedule of Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ 1,982 2024 1,982 2025 1,982 2026 1,982 2027 2,375 2028-2032 11,814 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Obligations and Funded Status | measurement date for the plans is December 31st. A detail of plan disclosures related to the plans is provided below: Obligations and Funded Status December 31, 2022 2021 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 6,160 6,469 Interest cost 173 148 Actuarial (gain) loss (1,927) (457) Benefits paid — — Projected benefit obligations at end of year 4,406 6,160 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (4,406) (6,160) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Accumulated Other Comprehensive Income | December 31, 2022 2021 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (4,406) (6,160) Net amount recognized $ (4,406) (6,160) Amounts recognized in accumulated other comprehensive income (loss): Net (gain) loss $ (596) 1,539 Prior service cost — — Net amount recognized $ (596) 1,539 |
Schedule of Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2022 2021 2020 (In thousands) Components of net periodic benefit cost: Interest cost $ 173 148 165 Amortization of prior service cost — — — Amortization of net loss 208 292 158 Net periodic benefit cost 381 440 323 Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): Net loss (gain) (1,927) (457) 522 Amortization of prior service cost — — — Amortization of net loss (gain) (208) (292) (158) Total recognized in other comprehensive income (loss) (2,135) (749) 364 Total recognized in net periodic benefit cost and other comprehensive income (loss) $ (1,754) (309) 687 |
Schedule of Assumptions Used | Assumptions December 31, 2022 2021 Weighted-average assumptions used to determine benefit obligations: Discount rate 5.00 % 2.75 % Expected long-term return on plan assets n/a n/a December 31, 2022 2021 2020 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.75 % 2.25 % 3.00 % Expected long-term return on plan assets n/a n/a n/a |
Schedule of Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2023 $ — 2024 — 2025 — 2026 157 2027 119 2028-2032 1,416 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Total Federal Income Taxes | Total Federal income taxes were allocated as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 15,830 42,829 (275) Deferred 9,060 3,747 20,031 Taxes on earnings 24,890 46,576 19,756 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available-for-sale (171,770) (51,177) 92,528 Foreign currency translation adjustments 108 (4) 4 Change in benefit plan liability 3,569 3,474 (3,398) Change in accounting — — (806) Total Federal income taxes $ (143,203) (1,131) 108,084 |
Schedule of Differences and Corresponding Tax Effects | These differences and the corresponding tax effects are as follows: Years Ended December 31, 2022 2021 2020 (In thousands) Income tax expense at statutory rate of 21% $ 26,467 47,724 23,534 Dividend received deduction (405) (394) (401) Tax exempt interest (1,194) (1,263) (1,436) Non deductible salary expense 642 439 351 Adjustments pertaining to prior tax years (538) (63) (8) Nondeductible insurance 96 96 96 Nondeductible expenses 42 54 44 Tax rate differential for loss carryback — — (2,497) Other, net (220) (17) 73 Taxes on earnings from continuing operations $ 24,890 46,576 19,756 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below. December 31, 2022 2021 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 142,476 183,692 Investment securities write-downs for financial accounting purposes 1,088 735 Benefit plan liabilities 8,974 12,546 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 5,915 4,490 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 42 64 Net unrealized losses on debt and equity securities 151,284 — Goodwill 1,315 1,696 Other 6,637 88 Total gross deferred tax assets 317,731 203,311 Deferred tax liabilities: Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes (136,092) (157,543) Tax reform reserve adjustment (26,198) (34,942) Debt securities, principally due to deferred market discount for tax (5,895) (5,611) Real estate, principally due to adjustments for financial accounting purposes (30) (14) Net unrealized gains on debt and equity securities — (66,696) Foreign currency translation adjustments (1,464) (1,356) Fixed assets, due to different depreciation bases (11,729) (13,032) Cost of reinsurance (16,449) (18,834) Funds withheld liability (61,198) (5,591) Other (809) (858) Total gross deferred tax liabilities (259,864) (304,477) Net deferred tax assets (liabilities) $ 57,867 (101,166) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Lease, Liability, Maturity | The Company's future annual lease obligations under finance leases as of December 31, 2022 are as shown below (in thousands). 2023 $ 343 2024 316 2024 179 2026 165 2027 — Total minimum lease payments 1,003 Less: Interest (6) Present value of net minimum lease payments $ 997 |
Deposits with Regulatory Auth_2
Deposits with Regulatory Authorities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits with Regulatory Authorities [Abstract] | |
Schedule of Assets Deposited with State and Other Regulatory Authorities | The following assets, stated at amortized cost, were on deposit with state and other regulatory authorities, as required by law, at the dates shown in the table below. December 31, 2022 2021 (In thousands) National Western: Debt securities available-for-sale $ 15,379 15,307 Short-term investments 475 475 Total National Western 15,854 15,782 Ozark National: Debt securities available-for-sale 3,368 3,319 Total Ozark National 3,368 3,319 Total $ 19,222 19,101 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Unrealized Gains and Losses on Available-for-Sale Securities Reclassified out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net investment gains | $ 6,355 | $ 14,950 | $ 21,071 |
Net OTTI losses recognized in earnings | 0 | 0 | 0 |
Earnings before Federal income taxes | 126,034 | 227,257 | 112,068 |
Federal income taxes | 24,890 | 46,576 | 19,756 |
Net earnings | 101,144 | 180,681 | 92,312 |
Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net investment gains | 5,111 | 16,372 | 5,677 |
Net OTTI losses recognized in earnings | 0 | 0 | 0 |
Earnings before Federal income taxes | 5,111 | 16,372 | 5,677 |
Federal income taxes | 1,073 | 3,438 | 1,192 |
Net earnings | $ 4,038 | $ 12,934 | $ 4,485 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 14, 2023 | Jan. 01, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Derivatives, index options | $ 23,669 | $ 101,622 | ||||
Unrealized gains (losses) on options held | (86,866) | 120,717 | $ 14,754 | |||
Embedded derivative, fair value | 335,000 | 84,700 | ||||
Cost of reinsurance | 78,328 | 89,686 | 102,840 | $ 0 | ||
Ceding commission paid | 48,000 | |||||
Carrying value of capitalized software, property and equipment | 165,600 | 165,300 | ||||
Accumulated depreciation and amortization | 96,700 | 84,000 | ||||
Depreciation and amortization expense | 14,300 | 13,000 | 11,900 | |||
Goodwill | 13,864 | 13,864 | 13,864 | |||
Identifiable intangible assets acquired in business combination | 6,700 | 7,500 | ||||
Stockholders' equity | 2,007,211 | 2,539,691 | 2,539,750 | |||
Charge to retained earnings | (2,381,856) | (2,281,986) | ||||
Mortgage loans-allowance for possible losses | 3,575 | 2,987 | ||||
Retained earnings: | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | $ 2,381,856 | 2,281,986 | 2,102,577 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Charge to retained earnings | $ 3,000 | |||||
Mortgage loans-allowance for possible losses | 1,200 | |||||
Debt securities held to maturity, allowance for credit losses | $ 3,300 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings: | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | 0 | $ 0 | $ (3,032) | |||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of assets | 3 years | |||||
Interest rate range to calculate future mortality | 3.25% | |||||
Minimum | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Pro Forma | Subsequent Event | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | $ 100,000 | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of assets | 39 years | |||||
Interest rate range to calculate future mortality | 8% | |||||
Maximum | Effect of Modified Retrospective Application Accounting Standards Update 2018-12 | Pro Forma | Subsequent Event | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | $ 200,000 | |||||
Options Held | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Unrealized gains (losses) on options held | $ (30,700) | $ 54,400 |
Investments - Schedule of Compo
Investments - Schedule of Components of Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | $ 353,631 | $ 348,518 | $ 404,860 |
Less investment expenses | 2,420 | 2,762 | 2,412 |
Net investment income (excluding derivatives and trading securities) | 351,211 | 345,756 | 402,448 |
Net investment income | 299,640 | 562,530 | 417,202 |
Debt and equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 298,965 | 309,082 | 373,479 |
Mortgage loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 20,691 | 20,155 | 13,162 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 2,626 | 2,667 | 3,361 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 3,940 | 293 | 2,160 |
Other investment assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 27,409 | 16,321 | 12,698 |
Index option derivative gain (loss) | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Index option derivative gain (loss) | (86,866) | 120,718 | 14,754 |
Embedded derivative on reinsurance | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 250,230 | 84,725 | 0 |
Trading securities market adjustments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ (214,935) | $ 11,331 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) mortgage_loan | Dec. 31, 2021 USD ($) mortgage_loan | Dec. 31, 2020 USD ($) | |
Schedule of Investments [Line Items] | |||
Loans originated during the year | $ 47,400 | $ 183,600 | |
Number of mortgage loan | mortgage_loan | 3 | 3 | |
Net investments in mortgage loans, after allowances for possible losses | $ 505,730 | $ 487,304 | |
Real estate investments | 262,106 | 137,670 | |
(Loss) gain on disposition of property | (1,400) | 2,700 | |
Debt securities, available-for-sale | 7,611,633 | 9,068,946 | |
Realized gains on investments | 6,355 | 14,950 | $ 21,071 |
Real Estate | |||
Schedule of Investments [Line Items] | |||
Real estate investments | 27,700 | 28,600 | |
Operating income recognized on real estate investment properties | 3,000 | 2,900 | 2,900 |
Mortgage Loan Investment | |||
Schedule of Investments [Line Items] | |||
Loan investments made by reinsurer | 19,300 | 8,500 | |
Real Estate Investment | |||
Schedule of Investments [Line Items] | |||
Net gain | $ 1,200 | ||
US Treasury Bond Securities | |||
Schedule of Investments [Line Items] | |||
Increase in 10-year U.S. Treasury bond rate | 2.37% | ||
External Credit Rating, Non Investment Grade | Debt Securities | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale | $ 112,000 | $ 153,000 | |
Debt securities below investment grade, percentage of total invested assets | 1.20% | 1.40% | |
Non- Income Producing | |||
Schedule of Investments [Line Items] | |||
Real estate investment | $ 0 | $ 100 | $ 400 |
Ozark National Life Insurance Company: | |||
Schedule of Investments [Line Items] | |||
Debt securities, available-for-sale | $ 674,800 | $ 823,000 |
Investments - Schedule of Mortg
Investments - Schedule of Mortgage Loans by Geographic Region, Property Type and Loan-to-Value Ratio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Allowance for credit losses, amount | $ (3,575) | $ (2,987) |
Totals, amount | 505,730 | 487,304 |
Real Estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 510,595 | $ 489,879 |
Mortgage loans, percentage | 100% | 100% |
Market value adjustment | $ (1,290) | $ 412 |
Market value adjustment, percentage | (0.30%) | 0.10% |
Allowance for credit losses, amount | $ (3,575) | $ (2,987) |
Allowance for credit losses, percentage | (0.70%) | (0.60%) |
Totals, amount | $ 505,730 | $ 487,304 |
Totals, percentage | 99% | 99.50% |
Real Estate | Less than 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 100,757 | $ 100,806 |
Mortgage loans, percentage | 19.70% | 20.60% |
Real Estate | 50% to 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 145,093 | $ 128,191 |
Mortgage loans, percentage | 28.40% | 26.20% |
Real Estate | 60% to 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 217,445 | $ 202,670 |
Mortgage loans, percentage | 42.60% | 41.30% |
Real Estate | 70% to 80% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 47,300 | $ 58,212 |
Mortgage loans, percentage | 9.30% | 11.90% |
Real Estate | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 169,618 | $ 164,895 |
Mortgage loans, percentage | 33.20% | 33.70% |
Real Estate | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 140,092 | $ 142,824 |
Mortgage loans, percentage | 27.40% | 29.20% |
Real Estate | Storage facility | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 79,853 | $ 73,401 |
Mortgage loans, percentage | 15.70% | 15% |
Real Estate | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 35,896 | $ 34,212 |
Mortgage loans, percentage | 7% | 7% |
Real Estate | Hotel | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 23,431 | $ 23,748 |
Mortgage loans, percentage | 4.60% | 4.80% |
Real Estate | Land/lots | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 4,605 | $ 4,597 |
Mortgage loans, percentage | 0.90% | 0.90% |
Real Estate | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 38,377 | $ 38,920 |
Mortgage loans, percentage | 7.50% | 7.90% |
Real Estate | Residential | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 14,599 | $ 1,905 |
Mortgage loans, percentage | 2.90% | 0.40% |
Real Estate | All other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 4,124 | $ 5,377 |
Mortgage loans, percentage | 0.80% | 1.10% |
Real Estate | West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 220,357 | $ 237,644 |
Mortgage loans, percentage | 43.20% | 48.50% |
Real Estate | East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 60,520 | $ 61,397 |
Mortgage loans, percentage | 11.90% | 12.60% |
Real Estate | South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 104,334 | $ 81,847 |
Mortgage loans, percentage | 20.40% | 16.70% |
Real Estate | East South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 18,753 | $ 20,069 |
Mortgage loans, percentage | 3.70% | 4.10% |
Real Estate | West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 11,942 | $ 12,213 |
Mortgage loans, percentage | 2.30% | 2.50% |
Real Estate | Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 11,924 | $ 13,800 |
Mortgage loans, percentage | 2.30% | 2.80% |
Real Estate | Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 40,742 | $ 36,296 |
Mortgage loans, percentage | 8% | 7.40% |
Real Estate | Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 42,023 | $ 26,613 |
Mortgage loans, percentage | 8.20% | 5.40% |
Investments - Schedule of Allow
Investments - Schedule of Allowance for Mortgage Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Mortgage Loans Allowance for Credit Losses: | ||
Balance, beginning of the period | $ 2,987 | |
Balance, end of period | 3,575 | $ 2,987 |
Real Estate | ||
Mortgage Loans Allowance for Credit Losses: | ||
Balance, beginning of the period | 2,987 | 2,486 |
Provision (release) during the period | 588 | 501 |
Balance, end of period | $ 3,575 | $ 2,987 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Mortgage Loan Principal Balances (Details) - Real Estate - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | $ 2,299 | $ 13,422 |
Due after one year through five years | 184,439 | 127,766 |
Due after five years through ten years | 205,712 | 222,444 |
Due after ten years through fifteen years | 107,503 | 115,313 |
Due after fifteen years | 10,869 | 11,280 |
Totals | $ 510,822 | $ 490,225 |
Principal Balance by Contractual Maturity, Percentage | ||
Due in one year or less | 0.50% | 2.70% |
Due after one year through five years | 36.10% | 26.10% |
Due after five years through ten years | 40.30% | 45.40% |
Due after ten years through fifteen years | 21% | 23.50% |
Due after fifteen years | 2.10% | 2.30% |
Totals | 100% | 100% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Costs and Fair Values of Securities Available for Sale and Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt securities: | |||
Total before allowance for credit losses | $ 8,438,760 | $ 8,604,250 | |
Gross Unrealized Gains | 3,082 | 482,109 | |
Gross Unrealized Losses | (830,209) | (17,413) | |
Fair Value | 7,611,633 | 9,068,946 | |
Allowance for Credit Losses | 0 | 0 | $ 0 |
Fair Value | |||
Less than 12 Months | 6,673,701 | 816,935 | |
12 Months or Greater | 653,807 | 27,109 | |
Total | 7,327,508 | 844,044 | |
Unrealized Losses | |||
Less than 12 Months | (635,555) | (15,844) | |
12 Months or Greater | (194,656) | (1,569) | |
Total | (830,211) | (17,413) | |
U.S. Government agencies | |||
Debt securities: | |||
Total before allowance for credit losses | 21,003 | 43,472 | |
Gross Unrealized Gains | 0 | 1,071 | |
Gross Unrealized Losses | (377) | 0 | |
Fair Value | 20,626 | 44,543 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 20,626 | ||
12 Months or Greater | 0 | ||
Total | 20,626 | ||
Unrealized Losses | |||
Less than 12 Months | (377) | ||
12 Months or Greater | 0 | ||
Total | (377) | ||
U.S. Treasury | |||
Debt securities: | |||
Total before allowance for credit losses | 2,813 | 2,469 | |
Gross Unrealized Gains | 6 | 21 | |
Gross Unrealized Losses | (90) | 0 | |
Fair Value | 2,729 | 2,490 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 1,749 | ||
12 Months or Greater | 0 | ||
Total | 1,749 | ||
Unrealized Losses | |||
Less than 12 Months | (90) | ||
12 Months or Greater | 0 | ||
Total | (90) | ||
States and political subdivisions | |||
Debt securities: | |||
Total before allowance for credit losses | 476,338 | 479,148 | |
Gross Unrealized Gains | 668 | 27,733 | |
Gross Unrealized Losses | (65,507) | (921) | |
Fair Value | 411,499 | 505,960 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 346,009 | 38,853 | |
12 Months or Greater | 28,420 | 1,790 | |
Total | 374,429 | 40,643 | |
Unrealized Losses | |||
Less than 12 Months | (55,014) | (779) | |
12 Months or Greater | (10,493) | (142) | |
Total | (65,507) | (921) | |
Foreign governments | |||
Debt securities: | |||
Total before allowance for credit losses | 62,964 | 62,979 | |
Gross Unrealized Gains | 0 | 293 | |
Gross Unrealized Losses | (17,076) | (881) | |
Fair Value | 45,888 | 62,391 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 22,591 | 31,862 | |
12 Months or Greater | 23,296 | 0 | |
Total | 45,887 | 31,862 | |
Unrealized Losses | |||
Less than 12 Months | (7,658) | (881) | |
12 Months or Greater | (9,420) | 0 | |
Total | (17,078) | (881) | |
Public utilities | |||
Debt securities: | |||
Total before allowance for credit losses | 681,785 | 745,359 | |
Gross Unrealized Gains | 117 | 39,919 | |
Gross Unrealized Losses | (66,765) | (309) | |
Fair Value | 615,137 | 784,969 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 601,824 | 15,286 | |
12 Months or Greater | 10,747 | 0 | |
Total | 612,571 | 15,286 | |
Unrealized Losses | |||
Less than 12 Months | (61,970) | (309) | |
12 Months or Greater | (4,795) | 0 | |
Total | (66,765) | (309) | |
Corporate bonds | |||
Debt securities: | |||
Total before allowance for credit losses | 6,199,886 | 6,322,471 | |
Gross Unrealized Gains | 1,940 | 391,287 | |
Gross Unrealized Losses | (570,255) | (12,805) | |
Fair Value | 5,631,571 | 6,700,953 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 4,985,075 | 541,974 | |
12 Months or Greater | 434,625 | 25,319 | |
Total | 5,419,700 | 567,293 | |
Unrealized Losses | |||
Less than 12 Months | (432,492) | (11,378) | |
12 Months or Greater | (137,763) | (1,427) | |
Total | (570,255) | (12,805) | |
Commercial mortgage-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 21,965 | 27,016 | |
Gross Unrealized Gains | 0 | 741 | |
Gross Unrealized Losses | (1,680) | 0 | |
Fair Value | 20,285 | 27,757 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 20,285 | ||
12 Months or Greater | 0 | ||
Total | 20,285 | ||
Unrealized Losses | |||
Less than 12 Months | (1,680) | ||
12 Months or Greater | 0 | ||
Total | (1,680) | ||
Residential mortgage-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 337,186 | 530,702 | |
Gross Unrealized Gains | 183 | 18,921 | |
Gross Unrealized Losses | (16,338) | 0 | |
Fair Value | 321,031 | 549,623 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 307,410 | ||
12 Months or Greater | 0 | ||
Total | 307,410 | ||
Unrealized Losses | |||
Less than 12 Months | (16,338) | ||
12 Months or Greater | 0 | ||
Total | (16,338) | ||
Asset-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 634,820 | 390,634 | |
Gross Unrealized Gains | 168 | 2,123 | |
Gross Unrealized Losses | (92,121) | (2,497) | |
Fair Value | 542,867 | 390,260 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 368,132 | ||
12 Months or Greater | 156,719 | ||
Total | 524,851 | ||
Unrealized Losses | |||
Less than 12 Months | (59,936) | ||
12 Months or Greater | (32,185) | ||
Total | $ (92,121) | ||
Home equity | |||
Fair Value | |||
Less than 12 Months | 188,960 | ||
12 Months or Greater | 0 | ||
Total | 188,960 | ||
Unrealized Losses | |||
Less than 12 Months | (2,497) | ||
12 Months or Greater | 0 | ||
Total | $ (2,497) |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost and Fair Value of Investments in Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities Available for Sale, Amortized Cost | |||
Due in 1 year or less | $ 719,108 | ||
Due after 1 year through 5 years | 2,866,915 | ||
Due after 5 years through 10 years | 1,812,394 | ||
Due after 10 years | 2,046,372 | ||
Total, excluding mortgage and asset-backed securities | 7,444,789 | ||
Mortgage and asset-backed securities | 993,971 | ||
Total before allowance for credit losses | 8,438,760 | $ 8,604,250 | |
Allowance for credit losses | 0 | 0 | $ 0 |
Total | 8,438,760 | ||
Debt Securities Available for Sale, Fair Value | |||
Due in 1 year or less | 714,084 | ||
Due after 1 year through 5 years | 2,747,445 | ||
Due after 5 years through 10 years | 1,625,461 | ||
Due after 10 years | 1,640,459 | ||
Total, excluding mortgage and asset-backed securities | 6,727,449 | ||
Mortgage and asset-backed securities | 884,184 | ||
Total | 7,611,633 | $ 9,068,946 | |
Allowance for credit losses | $ 0 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains (Losses) Excluding Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale debt securities: | |||
Realized gains on disposal | $ 5,304 | $ 16,377 | $ 5,677 |
Realized losses on disposal | (193) | (5) | 0 |
Held-to-maturity debt securities: | |||
Realized gains on redemption | 0 | 0 | 12,734 |
Realized losses on redemption | 0 | 0 | (1) |
Real estate | 1,244 | (1,421) | 2,661 |
Mortgage loans | 0 | 0 | 0 |
Other | 0 | (1) | 0 |
Other net investment gains (losses) | $ 6,355 | $ 14,950 | $ 21,071 |
Investments - Schedule of Debt
Investments - Schedule of Debt Securities Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Securities Available-for- Sale | ||
Beginning balance | $ 0 | $ 0 |
(Releases)/provision during period | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Investments - Schedule of Net U
Investments - Schedule of Net Unrealized Gains (Losses) on Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 3,082 | $ 482,109 |
Gross unrealized losses | (830,209) | (17,413) |
Deferred policy acquisition costs and sales inducements | 295,527 | (178,340) |
Deferred Federal income tax expense | 111,636 | (60,135) |
Net unrealized gains (losses) on investment securities | $ (419,964) | $ 226,221 |
Derivative Investments - Narrat
Derivative Investments - Narrative (Details) | Dec. 31, 2022 agreement |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Number of coinsurance funds withheld reinsurance agreements | 2 |
Derivative Investments - Schedu
Derivative Investments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 23,669 | $ 101,622 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 23,669 | 101,622 |
Liability Derivatives | (272,697) | 58,036 |
Derivatives not designated as hedging instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 23,669 | 101,622 |
Derivatives not designated as hedging instruments: | Fixed-index products | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 62,258 | 142,761 |
Derivatives not designated as hedging instruments: | Embedded derivative on reinsurance contract | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (334,955) | $ (84,725) |
Derivative Investments - Sche_2
Derivative Investments - Schedule of Effect of Derivative Instruments in Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense | $ 0 | $ 6,500 | $ 34,400 |
Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | 252,780 | 72,116 | (30,216) |
Derivatives Not Designated as Hedging Instruments | Equity index options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | (86,865) | 120,718 | 14,754 |
Derivatives Not Designated as Hedging Instruments | Fixed-index products | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | 89,415 | (133,327) | (44,970) |
Derivatives Not Designated as Hedging Instruments | Embedded derivative on reinsurance contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | $ 250,230 | $ 84,725 | $ 0 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,611,633 | $ 9,068,946 |
Debt securities, trading | 1,065,993 | 1,077,438 |
Equity securities | 22,076 | 28,217 |
Derivatives, index options | $ 23,669 | $ 101,622 |
DerivativeLiabilityStatementOfFinancialPositionExtensibleEnumerationNotDisclosedFlag | Policyholder account balances (a) | Policyholder account balances (a) |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,611,633 | $ 9,068,946 |
Debt securities, trading | 1,065,993 | 1,077,438 |
Equity securities | 22,076 | 28,217 |
Mortgage loans | 19,334 | 8,469 |
Derivatives, index options | 23,669 | 101,622 |
Short-term investments | 3,937 | |
Total assets | 8,746,642 | 10,284,692 |
Policyholder account balances | 62,258 | 142,761 |
Other liabilities | (314,413) | (76,856) |
Total liabilities | (252,155) | 65,905 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Equity securities | 18,407 | 23,795 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term investments | 0 | |
Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Equity securities | 18,407 | 23,795 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term investments | 0 | |
Total assets | 18,407 | 23,795 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 7,148,837 | 8,741,984 |
Debt securities, trading | 942,756 | 1,002,616 |
Equity securities | 3,669 | 4,422 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term investments | 3,937 | |
Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 7,148,838 | 8,741,984 |
Debt securities, trading | 942,756 | 1,002,616 |
Equity securities | 3,669 | 4,422 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term investments | 3,937 | |
Total assets | 8,099,200 | 9,749,022 |
Policyholder account balances | 0 | 0 |
Other liabilities | (324,712) | (84,725) |
Total liabilities | (324,712) | (84,725) |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 462,796 | 326,962 |
Debt securities, trading | 123,237 | 74,822 |
Equity securities | 0 | 0 |
Mortgage loans | 457,873 | 513,246 |
Derivatives, index options | 23,669 | 101,622 |
Short-term investments | 0 | |
Total assets | 119,006 | 223,359 |
Total liabilities | 82,800 | 150,630 |
Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 462,795 | 326,962 |
Debt securities, trading | 123,237 | 74,822 |
Equity securities | 0 | 0 |
Mortgage loans | 19,334 | 8,469 |
Derivatives, index options | 23,669 | 101,622 |
Short-term investments | 0 | |
Total assets | 629,035 | 511,875 |
Policyholder account balances | 62,258 | 142,761 |
Other liabilities | 10,299 | 7,869 |
Total liabilities | $ 72,557 | $ 150,630 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Fair Value Measurements for Level 3 Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | $ 511,875 | $ 132,821 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (98,278) | 121,886 |
Included in other comprehensive income (loss) | (41,424) | 876 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 334,888 | 376,027 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (78,026) | (213,396) |
Transfers into (out of) Level 3 | 0 | 93,661 |
Balance at end of period December 31, 2022 | $ 629,035 | $ 511,875 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net earnings | Net earnings |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ (42,191) | $ 55,589 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | $ 150,630 | 167,553 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (86,607) | 138,907 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 54,190 | 47,203 |
Sales | 0 | 0 |
Issuances | 1,015 | 182 |
Settlements | (47,840) | (203,215) |
Transfers into (out of) Level 3 | 1,169 | 0 |
Balance at end of period December 31, 2022 | 72,557 | 150,630 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ (27,970) | 60,001 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total expenses, Net investment income | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total expenses, Net investment income | |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net earnings | |
Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ (42,191) | 55,589 |
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ (11,412) | $ 0 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 0 | $ 0 |
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ (16,558) | $ 60,001 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total expenses | Total expenses |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Total expenses | Total expenses |
Embedded Derivative on Funds Withheld Liability | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | $ 0 | |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (11,412) | |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | 0 | |
Transfers into (out of) Level 3 | 1,169 | |
Balance at end of period December 31, 2022 | (10,243) | $ 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (11,412) | |
Embedded Derivative on Funds Withheld Liability | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (11,412) | |
Embedded Derivative on Funds Withheld Liability | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Policyholder Account Balances | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 142,761 | 161,351 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (89,416) | 133,326 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 54,190 | 47,203 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (45,277) | (199,119) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period December 31, 2022 | 62,258 | 142,761 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (30,779) | 54,420 |
Policyholder Account Balances | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Policyholder Account Balances | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (30,779) | 54,420 |
Share-based Comp | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 7,869 | 6,202 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 14,221 | 5,581 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 1,015 | 182 |
Settlements | (2,563) | (4,096) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period December 31, 2022 | 20,542 | 7,869 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 14,221 | 5,581 |
Share-based Comp | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Share-based Comp | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 14,221 | 5,581 |
Debt securities available-for-sale | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 326,962 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 0 | 0 |
Included in other comprehensive income (loss) | (41,424) | 876 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 209,616 | 245,456 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (32,359) | (13,031) |
Transfers into (out of) Level 3 | 0 | 93,661 |
Balance at end of period December 31, 2022 | 462,795 | 326,962 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Debt securities available-for-sale | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Debt securities available-for-sale | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Trading Securities | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 74,822 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (9,709) | 757 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 58,389 | 75,265 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (265) | (1,200) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period December 31, 2022 | 123,237 | 74,822 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (9,709) | 757 |
Trading Securities | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (9,709) | 757 |
Trading Securities | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Derivatives, Index Options | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 101,622 | 132,821 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (86,866) | 120,717 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 54,190 | 47,203 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (45,277) | (199,119) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period December 31, 2022 | 23,669 | 101,622 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (30,779) | 54,420 |
Derivatives, Index Options | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (30,779) | 54,420 |
Derivatives, Index Options | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Mortgage loans | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance, January 1, 2022 | 8,469 | 0 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (1,703) | 412 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 12,693 | 8,103 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (125) | (46) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period December 31, 2022 | 19,334 | 8,469 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (1,703) | 412 |
Mortgage loans | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (1,703) | 412 |
Mortgage loans | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 0 | $ 0 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Schedule of Fair Value, Valuation Techniques and Significant Unobservable Inputs for Financial Instruments Categorized as Level 3 (Details) $ in Thousands | Dec. 31, 2022 USD ($) yr | Dec. 31, 2021 USD ($) yr |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | $ 7,611,633 | $ 9,068,946 |
Derivatives, index options | 23,669 | 101,622 |
Level 3 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | 462,796 | 326,962 |
Derivatives, index options | 23,669 | 101,622 |
Mortgage loans | 457,873 | 513,246 |
Total assets | 119,006 | 223,359 |
Total liabilities | 82,800 | 150,630 |
Level 3 | Discounted cash flow | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | 76,003 | 113,268 |
Mortgage loans | 19,334 | 8,469 |
Level 3 | Broker prices | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options | 23,669 | 101,622 |
Level 3 | Deterministic cash flow model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances | 62,258 | 142,761 |
Level 3 | Black-Scholes model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation | $ 20,542 | $ 7,869 |
Discount rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0432 | 0.0240 |
Discount rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0728 | 0.0614 |
Discount rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0579 | 0.0406 |
Implied volatility | Level 3 | Broker prices | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.1294 | 0.1176 |
Implied volatility | Level 3 | Broker prices | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.3475 | 0.1654 |
Implied volatility | Level 3 | Broker prices | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.1932 | 0.1455 |
Spread | Level 3 | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortgage loans, measurement input | 0.0150 | 0.0100 |
Spread | Level 3 | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortgage loans, measurement input | 0.0300 | 0.0250 |
Projected option cost | Level 3 | Deterministic cash flow model | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0 | 0.0003 |
Projected option cost | Level 3 | Deterministic cash flow model | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0.0607 | 0.1449 |
Projected option cost | Level 3 | Deterministic cash flow model | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0.0065 | 0.0265 |
Expected term | Level 3 | Black-Scholes model | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | yr | 0.9 | 1.9 |
Expected term | Level 3 | Black-Scholes model | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | yr | 10 | 10 |
Expected volatility | Level 3 | Black-Scholes model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | 0.3618 | 0.3505 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments - Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,611,633 | $ 9,068,946 |
Debt securities, trading: | 1,065,993 | 1,077,438 |
Equity securities: | 22,076 | 28,217 |
Derivatives, index options | 23,669 | 101,622 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading: | 0 | 0 |
Equity securities: | 18,407 | 23,795 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 7,148,837 | 8,741,984 |
Debt securities, trading: | 942,756 | 1,002,616 |
Equity securities: | 3,669 | 4,422 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 462,796 | 326,962 |
Debt securities, trading: | 123,237 | 74,822 |
Equity securities: | 0 | 0 |
Mortgage loans | 457,873 | 513,246 |
Derivatives, index options | 23,669 | 101,622 |
Total assets | 119,006 | 223,359 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 7,611,633 | 9,068,946 |
Debt securities, trading: | 1,065,993 | 1,077,438 |
Equity securities: | 22,076 | 28,217 |
Mortgage loans | 19,334 | 8,469 |
Derivatives, index options | 23,669 | 101,622 |
Short-term Investments: | 3,937 | |
Total assets | $ 8,746,642 | 10,284,692 |
Percent of total | 100% | |
Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 0 | 0 |
Debt securities, trading: | 0 | 0 |
Equity securities: | 18,407 | 23,795 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term Investments: | 0 | |
Total assets | $ 18,407 | 23,795 |
Percent of total | 0.20% | |
Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,148,838 | 8,741,984 |
Debt securities, trading: | 942,756 | 1,002,616 |
Equity securities: | 3,669 | 4,422 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Short-term Investments: | 3,937 | |
Total assets | $ 8,099,200 | 9,749,022 |
Percent of total | 92.60% | |
Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 462,795 | 326,962 |
Debt securities, trading: | 123,237 | 74,822 |
Equity securities: | 0 | 0 |
Mortgage loans | 19,334 | 8,469 |
Derivatives, index options | 23,669 | 101,622 |
Short-term Investments: | 0 | |
Total assets | $ 629,035 | $ 511,875 |
Percent of total | 7.20% | |
Priced by third-party vendors | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 7,535,630 | |
Debt securities, trading: | 1,065,993 | |
Equity securities: | 22,076 | |
Derivatives, index options | 23,669 | |
Short-term Investments: | 3,937 | |
Priced by third-party vendors | Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Debt securities, trading: | 0 | |
Equity securities: | 18,407 | |
Derivatives, index options | 0 | |
Short-term Investments: | 0 | |
Priced by third-party vendors | Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 7,148,838 | |
Debt securities, trading: | 942,756 | |
Equity securities: | 3,669 | |
Derivatives, index options | 0 | |
Short-term Investments: | 3,937 | |
Priced by third-party vendors | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 386,792 | |
Debt securities, trading: | 123,237 | |
Equity securities: | 0 | |
Derivatives, index options | 23,669 | |
Short-term Investments: | 0 | |
Priced internally | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 76,003 | |
Equity securities: | 0 | |
Mortgage loans | 19,334 | |
Priced internally | Recurring basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Equity securities: | 0 | |
Mortgage loans | 0 | |
Priced internally | Recurring basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Equity securities: | 0 | |
Mortgage loans | 0 | |
Priced internally | Recurring basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 76,003 | |
Equity securities: | 0 | |
Mortgage loans | $ 19,334 |
Fair Values of Financial Inst_7
Fair Values of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Debt securities, available-for-sale | $ 7,611,633 | $ 9,068,946 |
Debt securities, trading | 1,065,993 | 1,077,438 |
Other loans | 19,334 | 8,469 |
Derivatives, index options | 23,669 | 101,622 |
Equity securities: | 22,076 | 28,217 |
Carrying Values | ||
ASSETS | ||
Debt securities, available-for-sale | 7,611,633 | 9,068,946 |
Debt securities, trading | 1,065,993 | 1,077,438 |
Cash and cash equivalents | 295,270 | 714,624 |
Mortgage loans | 505,730 | 487,304 |
Real estate | 27,712 | 28,606 |
Policy loans | 70,495 | 71,286 |
Other loans | 31,586 | 24,266 |
Derivatives, index options | 23,669 | 101,622 |
Equity securities: | 22,076 | 28,217 |
Short-term investments | 3,937 | |
Life interest in Libbie Shearn Moody Trust | 7,100 | 8,254 |
Other investments | 4,513 | 4,537 |
LIABILITIES | ||
Deferred annuity contracts | 6,054,030 | 6,463,314 |
Immediate annuity and supplemental contracts | 397,318 | 422,209 |
Fair Values | ||
ASSETS | ||
Debt securities, available-for-sale | 7,611,633 | 9,068,946 |
Debt securities, trading | 1,065,993 | 1,077,438 |
Cash and cash equivalents | 295,270 | 714,624 |
Mortgage loans | 457,873 | 513,246 |
Real estate | 47,867 | 47,027 |
Policy loans | 87,478 | 110,492 |
Other loans | 31,915 | 25,085 |
Derivatives, index options | 23,669 | 101,622 |
Equity securities: | 22,076 | 28,217 |
Short-term investments | 3,937 | |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 26,230 | 24,876 |
LIABILITIES | ||
Deferred annuity contracts | 4,405,510 | 4,703,331 |
Immediate annuity and supplemental contracts | 373,346 | 457,787 |
Level 1 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | 0 |
Cash and cash equivalents | 295,270 | 702,632 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities: | 18,407 | 23,795 |
Short-term investments | 0 | |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 2 | ||
ASSETS | ||
Debt securities, available-for-sale | 7,148,837 | 8,741,984 |
Debt securities, trading | 942,756 | 1,002,616 |
Cash and cash equivalents | 0 | 11,992 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities: | 3,669 | 4,422 |
Short-term investments | 3,937 | |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 3 | ||
ASSETS | ||
Debt securities, available-for-sale | 462,796 | 326,962 |
Debt securities, trading | 123,237 | 74,822 |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 457,873 | 513,246 |
Real estate | 47,867 | 47,027 |
Policy loans | 87,478 | 110,492 |
Other loans | 31,915 | 25,085 |
Derivatives, index options | 23,669 | 101,622 |
Equity securities: | 0 | 0 |
Short-term investments | 0 | |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 26,230 | 24,876 |
LIABILITIES | ||
Deferred annuity contracts | 4,405,510 | 4,703,331 |
Immediate annuity and supplemental contracts | $ 373,346 | $ 457,787 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jul. 27, 2022 | Dec. 31, 2019 | |
Effects of Reinsurance [Line Items] | ||||||
Total life insurance in force | $ 21,954,160 | $ 19,668,410 | $ 20,888,431 | $ 21,954,160 | ||
Ceded to other companies | 4,013,073 | 3,549,917 | 3,781,167 | 4,013,073 | ||
Cost of reinsurance | 102,840 | 78,328 | 89,686 | 102,840 | $ 0 | |
Amortization | 11,358 | 13,154 | 0 | |||
Allowance related to reinsurance | 450 | 0 | ||||
Prosperity Life Assurance Company | ||||||
Effects of Reinsurance [Line Items] | ||||||
Cost of reinsurance | $ 102,800 | 102,800 | ||||
Amortization | 11,400 | 13,200 | ||||
Aspida Life Re Ltd. | ||||||
Effects of Reinsurance [Line Items] | ||||||
Reinsurance, amount in force, coinsurance funds withheld basis | $ 250,000 | |||||
Deferred revenue | 30,800 | |||||
Ceded commissions payable | 68,200 | |||||
Amortization revenue from deferred gain | 1,400 | |||||
National Western Life Insurance Company: | ||||||
Effects of Reinsurance [Line Items] | ||||||
Limit for reinsuring risk | 500 | |||||
Total life insurance in force | 13,900,000 | 15,000,000 | ||||
Ceded to other companies | 3,000,000 | 3,300,000 | ||||
Reinsurance recoverables | 91,200 | 31,600 | ||||
Reinsurance premiums | 23,700 | 22,000 | 21,000 | |||
Reinsurance recoveries | 12,700 | 29,300 | 8,400 | |||
National Western Life Insurance Company: | Prosperity Life Assurance Company | ||||||
Effects of Reinsurance [Line Items] | ||||||
Ceded to other companies | 1,300,000 | 1,500,000 | ||||
Percentage of share of contractual statutory reserve liabilities | 100% | |||||
Reinsurance, amount in force, coinsurance funds withheld basis | $ 1,700,000 | 1,700,000 | ||||
Reinsurance, ceded commission | $ 48,000 | $ 48,000 | ||||
Ozark National Life Insurance Company: | ||||||
Effects of Reinsurance [Line Items] | ||||||
Limit for reinsuring risk | 200 | |||||
Total life insurance in force | 5,700,000 | 5,900,000 | ||||
Ceded to other companies | 500,000 | 500,000 | ||||
Reinsurance recoverables | 32,400 | 32,400 | ||||
Reinsurance premiums | 2,800 | 2,800 | ||||
Reinsurance recoveries | $ 2,600 | $ 2,400 |
Deferred Transaction Costs (Det
Deferred Transaction Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred policy acquisition costs, beginning of year | $ 569,839 | $ 382,080 | $ 723,972 |
Deferrals | 45,444 | 77,306 | 69,857 |
Amortization, excluding unlocking, net of interest | (101,477) | (84,349) | (107,917) |
Unlocking | (559) | 36,510 | (22,358) |
Adjustments related to unrealized (gains) losses | 416,397 | 158,292 | (261,186) |
Reinsurance | (19,858) | 0 | (20,288) |
Deferred policy acquisition costs, end of year | 909,786 | 569,839 | 382,080 |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Deferred sales inducements, beginning of year | 78,136 | 43,845 | 104,359 |
Deferrals | 4,039 | 18,118 | 10,344 |
Amortization, excluding unlocking, net of interest | (14,130) | (14,755) | (18,363) |
Unlocking | 99 | 993 | (4,445) |
Adjustments related to unrealized (gains) losses | 57,498 | 29,935 | (43,557) |
Reinsurance | (11,243) | 0 | (4,493) |
Deferred sales inducements, end of year | 114,399 | 78,136 | 43,845 |
Movement Analysis Of Value Of Business Acquired [Roll Forward] | |||
VOBA, beginning of year | 154,499 | 162,968 | 138,071 |
Business acquired | 0 | 0 | 0 |
Other increase | 0 | 0 | 35,125 |
Amortization, excluding unlocking | (8,005) | (8,469) | (10,228) |
Unlocking | 0 | 0 | 0 |
VOBA, end of year | 146,494 | 154,499 | 162,968 |
Present Value of Future Insurance Profits, Amortization Expense [Abstract] | |||
2023 | 7,673 | ||
2024 | 7,363 | ||
2025 | 7,172 | ||
2026 | 7,030 | ||
2027 | 6,823 | ||
Cost of Reinsurance [Abstract] | |||
Balance, beginning of year | 89,686 | 102,840 | 0 |
Additions | 0 | 0 | 102,840 |
Amortization | (11,358) | (13,154) | 0 |
Balance as of end of year | $ 78,328 | $ 89,686 | $ 102,840 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets - Schedule of Goodwill and Specifically Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | |||
Gross goodwill as of beginning of year | $ 13,864 | $ 13,864 | $ 13,864 |
Goodwill resulting from business acquisition | 0 | 0 | 0 |
Gross goodwill, before impairments | 13,864 | 13,864 | 13,864 |
Accumulated impairment as of beginning of year | 0 | 0 | 0 |
Current year impairments | 0 | 0 | 0 |
Net goodwill as of end of year | $ 13,864 | $ 13,864 | $ 13,864 |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (2,857) | (2,128) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (731) | (545) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (2,126) | (1,583) |
Insurance licenses | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 3,000 | 3,000 |
Accumulated Amortization | $ 0 | $ 0 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets - Schedule of Expected Amortization Expenses (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 730 |
2024 | 730 |
2025 | 730 |
2026 | 232 |
2027 | 187 |
Thereafter | 1,134 |
Finite-lived intangible assets, net | $ 3,743 |
Segment and Other Operating I_3
Segment and Other Operating Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Selected Balance Sheet Items: | |||
Total segment assets | $ 13,100,227 | $ 14,330,189 | $ 14,648,270 |
Other policyholder liabilities | 175,089 | 134,338 | |
Funds withheld liability | 1,333,036 | 1,485,267 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 226,880 | 224,297 | 237,947 |
Net investment income | 299,640 | 562,530 | 417,202 |
Other revenues | 25,522 | 22,314 | 18,522 |
Realized gains on investments | 6,355 | 14,950 | 21,071 |
Total revenues | 558,397 | 824,091 | 694,742 |
Life and other policy benefits | 159,470 | 187,577 | 131,337 |
Amortization of deferred transaction costs | 121,398 | 69,461 | 140,503 |
Universal life and annuity contract interest | 15,678 | 213,184 | 206,250 |
Other operating expenses | 135,817 | 126,612 | 104,584 |
Federal income taxes (benefit) | 24,890 | 46,576 | 19,756 |
Net earnings | 101,144 | 180,681 | 92,312 |
Segments | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 1,249,007 | 892,160 | 691,733 |
Total segment assets | 12,561,674 | 13,426,665 | 13,753,320 |
Future policy benefits | 9,418,334 | 9,912,987 | 9,933,419 |
Other policyholder liabilities | 175,089 | 134,338 | 138,480 |
Funds withheld liability | 1,333,036 | 1,485,267 | 1,697,591 |
Condensed Income Statements: | |||
Premiums and contract revenues | 226,880 | 224,297 | 237,947 |
Net investment income | 299,640 | 562,530 | 417,202 |
Other revenues | 25,522 | 22,314 | 18,522 |
Total revenues | 552,042 | 809,141 | 673,671 |
Life and other policy benefits | 159,470 | 187,577 | 131,337 |
Amortization of deferred transaction costs | 121,398 | 69,461 | 140,503 |
Universal life and annuity contract interest | 15,678 | 213,184 | 206,250 |
Other operating expenses | 135,817 | 126,612 | 104,584 |
Federal income taxes (benefit) | 23,556 | 43,436 | 15,331 |
Total expenses | 455,919 | 640,270 | 598,005 |
Net earnings | 96,123 | 168,871 | 75,666 |
Segments | Domestic Life Insurance | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 233,460 | 150,688 | 94,100 |
Total segment assets | 1,737,992 | 1,791,017 | 3,242,794 |
Future policy benefits | 1,533,155 | 1,537,482 | 1,337,174 |
Other policyholder liabilities | 25,596 | 20,950 | 16,378 |
Funds withheld liability | 0 | 0 | 0 |
Condensed Income Statements: | |||
Premiums and contract revenues | 59,379 | 51,294 | 53,834 |
Net investment income | 17,671 | 90,006 | 54,516 |
Other revenues | 93 | 105 | 58 |
Total revenues | 77,143 | 141,405 | 108,408 |
Life and other policy benefits | 25,090 | 24,416 | 18,471 |
Amortization of deferred transaction costs | 18,968 | 9,580 | 17,661 |
Universal life and annuity contract interest | 758 | 77,246 | 44,782 |
Other operating expenses | 31,046 | 26,959 | 25,730 |
Federal income taxes (benefit) | 251 | 656 | 265 |
Total expenses | 76,113 | 138,857 | 106,909 |
Net earnings | 1,030 | 2,548 | 1,499 |
Segments | International Life Insurance | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 270,035 | 152,340 | 124,480 |
Total segment assets | 958,699 | 975,942 | 1,034,280 |
Future policy benefits | 678,103 | 749,537 | 798,952 |
Other policyholder liabilities | 15,560 | 14,268 | 11,086 |
Funds withheld liability | 0 | 0 | 0 |
Condensed Income Statements: | |||
Premiums and contract revenues | 76,115 | 79,085 | 88,167 |
Net investment income | 1,681 | 52,227 | 27,273 |
Other revenues | 71 | 95 | 67 |
Total revenues | 77,867 | 131,407 | 115,507 |
Life and other policy benefits | 20,777 | 26,481 | 14,084 |
Amortization of deferred transaction costs | 19,643 | (11,118) | 24,929 |
Universal life and annuity contract interest | (3,840) | 31,696 | (2,087) |
Other operating expenses | 20,146 | 19,679 | 17,829 |
Federal income taxes (benefit) | 4,139 | 13,249 | 9,143 |
Total expenses | 60,865 | 79,987 | 63,898 |
Net earnings | 17,002 | 51,420 | 51,609 |
Segments | Annuities | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 584,158 | 423,318 | 302,397 |
Total segment assets | 8,521,636 | 9,187,610 | 7,976,588 |
Future policy benefits | 6,409,784 | 6,843,457 | 7,028,860 |
Other policyholder liabilities | 118,615 | 82,650 | 94,049 |
Funds withheld liability | 1,333,036 | 1,485,267 | 1,697,591 |
Condensed Income Statements: | |||
Premiums and contract revenues | 15,353 | 16,809 | 17,025 |
Net investment income | 229,324 | 368,234 | 290,576 |
Other revenues | 6,777 | 5,374 | 43 |
Total revenues | 251,454 | 390,417 | 307,644 |
Life and other policy benefits | 48,029 | 67,515 | 31,043 |
Amortization of deferred transaction costs | 73,926 | 61,881 | 87,133 |
Universal life and annuity contract interest | 18,760 | 104,242 | 163,555 |
Other operating expenses | 58,799 | 53,817 | 36,870 |
Federal income taxes (benefit) | 10,169 | 21,094 | (1,649) |
Total expenses | 209,683 | 308,549 | 316,952 |
Net earnings | 41,771 | 81,868 | (9,308) |
Segments | ONL & Affiliates | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 161,354 | 165,814 | 170,756 |
Total segment assets | 1,008,004 | 1,115,380 | 1,117,509 |
Future policy benefits | 797,292 | 782,511 | 768,433 |
Other policyholder liabilities | 15,318 | 16,470 | 16,967 |
Funds withheld liability | 0 | 0 | 0 |
Condensed Income Statements: | |||
Premiums and contract revenues | 76,033 | 77,109 | 78,921 |
Net investment income | 29,198 | 26,989 | 26,383 |
Other revenues | 11,539 | 12,654 | 10,118 |
Total revenues | 116,770 | 116,752 | 115,422 |
Life and other policy benefits | 65,574 | 69,165 | 67,739 |
Amortization of deferred transaction costs | 8,861 | 9,118 | 10,780 |
Universal life and annuity contract interest | 0 | 0 | 0 |
Other operating expenses | 19,579 | 20,244 | 18,454 |
Federal income taxes (benefit) | 4,580 | 3,675 | 4,413 |
Total expenses | 98,594 | 102,202 | 101,386 |
Net earnings | 18,176 | 14,550 | 14,036 |
Segments | All Others | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 0 | 0 | 0 |
Total segment assets | 335,343 | 356,716 | 382,149 |
Future policy benefits | 0 | 0 | 0 |
Other policyholder liabilities | 0 | 0 | 0 |
Funds withheld liability | 0 | 0 | 0 |
Condensed Income Statements: | |||
Premiums and contract revenues | 0 | 0 | 0 |
Net investment income | 21,766 | 25,074 | 18,454 |
Other revenues | 7,042 | 4,086 | 8,236 |
Total revenues | 28,808 | 29,160 | 26,690 |
Life and other policy benefits | 0 | 0 | 0 |
Amortization of deferred transaction costs | 0 | 0 | 0 |
Universal life and annuity contract interest | 0 | 0 | 0 |
Other operating expenses | 6,247 | 5,913 | 5,701 |
Federal income taxes (benefit) | 4,417 | 4,762 | 3,159 |
Total expenses | 10,664 | 10,675 | 8,860 |
Net earnings | 18,144 | 18,485 | 17,830 |
Segment Reconciling Items | |||
Condensed Income Statements: | |||
Taxes on realized gains on investments | 1,334 | 3,140 | 4,425 |
Realized gains on investments, net of taxes | 5,021 | 11,810 | 16,646 |
Other unallocated | |||
Selected Balance Sheet Items: | |||
Total segment assets | $ 538,553 | $ 903,524 | $ 894,950 |
Segment and Other Operating I_4
Segment and Other Operating Information - Geographic Information and Major Agency Relationships (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) agency | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 253,360 | $ 249,133 | $ 261,633 |
Reinsurance premiums | (26,480) | (24,836) | (23,686) |
Total premiums and contract revenues | $ 226,880 | 224,297 | 237,947 |
Annuities | National Western Life Insurance Company: | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of customers | agency | 1 | ||
Annuities | National Western Life Insurance Company: | Agency Three | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 13% | ||
Domestic Life Insurance | National Western Life Insurance Company: | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of customers | agency | 1 | ||
Domestic Life Insurance | National Western Life Insurance Company: | Domestic independent agency | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 54% | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 163,733 | 156,614 | 165,217 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 21,043 | 20,535 | 22,190 |
Taiwan | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 11,566 | 10,954 | 11,433 |
Peru | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 8,543 | 8,635 | 9,167 |
Venezuela | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 8,090 | 8,560 | 9,949 |
Haiti | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 7,519 | 4,453 | 4,708 |
Other foreign countries | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 32,866 | $ 39,382 | $ 38,969 |
Statutory Information - Schedul
Statutory Information - Schedule of Premiums and Deposits Collected (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Insurance [Abstract] | |||
Annuity deposits | $ 236,931 | $ 462,632 | $ 358,900 |
Universal life insurance deposits | 187,987 | 270,717 | 267,809 |
Traditional life and other premiums | 94,379 | 96,429 | 98,711 |
Totals | $ 519,297 | $ 829,778 | $ 725,420 |
Statutory Information - Sched_2
Statutory Information - Schedule of Statutory Accounting Practices (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
National Western Life Insurance Company: | |||
Statutory Accounting Practices [Line Items] | |||
Net gain from operations before Federal and foreign income taxes | $ 72,793 | $ 85,440 | $ 1,423 |
Net income | 67,888 | 63,476 | 6,487 |
Unassigned surplus | 1,500,445 | 1,536,112 | 1,461,100 |
Capital and surplus | 1,544,509 | 1,580,176 | 1,505,163 |
Ozark National Life Insurance Company: | |||
Statutory Accounting Practices [Line Items] | |||
Net gain from operations before Federal and foreign income taxes | 26,926 | 23,103 | 24,976 |
Net income | 21,629 | 28,183 | 20,966 |
Unassigned surplus | 99,089 | 77,806 | 50,054 |
Capital and surplus | $ 127,043 | $ 105,761 | $ 78,009 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) class_of_stock $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | |||
Number of classes of common stock | class_of_stock | 2 | ||
Share-based compensation awards outstanding that could be redeemed for shares of common stock (shares) | shares | 0 | ||
Numerator for Basic and Diluted Earnings Per Share: | |||
Net earnings | $ 101,144 | $ 180,681 | $ 92,312 |
Undistributed earnings | 99,871 | 179,408 | 91,039 |
Allocation of net earnings: | |||
Allocation of undistributed earnings | 99,871 | 179,408 | 91,039 |
Net earnings | 101,144 | 180,681 | 92,312 |
Class A | |||
Numerator for Basic and Diluted Earnings Per Share: | |||
Net earnings | 98,284 | 175,571 | 89,701 |
Dividends | (1,237) | (1,237) | (1,237) |
Undistributed earnings | 97,047 | 174,334 | 88,464 |
Allocation of net earnings: | |||
Dividends | 1,237 | 1,237 | 1,237 |
Allocation of undistributed earnings | 97,047 | 174,334 | 88,464 |
Net earnings | $ 98,284 | $ 175,571 | $ 89,701 |
Denominator: | |||
Basic earnings per share - weighted-average shares (in shares) | shares | 3,436,000 | 3,436,000 | 3,436,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 3,436,000 | 3,436,000 | 3,436,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 28.60 | $ 51.10 | $ 26.11 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 28.60 | $ 51.10 | $ 26.11 |
Class B | |||
Numerator for Basic and Diluted Earnings Per Share: | |||
Net earnings | $ 2,860 | $ 5,110 | $ 2,611 |
Dividends | (36) | (36) | (36) |
Undistributed earnings | 2,824 | 5,074 | 2,575 |
Allocation of net earnings: | |||
Dividends | 36 | 36 | 36 |
Allocation of undistributed earnings | 2,824 | 5,074 | 2,575 |
Net earnings | $ 2,860 | $ 5,110 | $ 2,611 |
Denominator: | |||
Basic earnings per share - weighted-average shares (in shares) | shares | 200,000 | 200,000 | 200,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 200,000 | 200,000 | 200,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 14.30 | $ 25.55 | $ 13.05 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 14.30 | $ 25.55 | $ 13.05 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Deferred costs | $ (473,867) | $ 187,987 | $ (304,955) |
Amounts Before Taxes | |||
Net unrealized holding gains (losses) arising during the period | (812,846) | (227,325) | 446,280 |
Unrealized liquidity gains (losses) | 8 | ||
Reclassification adjustment for net (gains) losses included in net earnings | (5,111) | (16,372) | (5,677) |
Net unrealized gains (losses) on securities | (817,957) | (243,697) | 440,611 |
Foreign currency translation adjustments | 515 | (20) | 18 |
Benefit plan liability adjustment | 16,997 | 16,543 | (16,182) |
Other comprehensive income (loss) | (800,445) | (227,174) | 424,447 |
Tax (Expense) Benefit | |||
Net unrealized holding gains (losses) arising during the period | 170,698 | 47,738 | (93,719) |
Unrealized liquidity gains (losses) | (2) | ||
Reclassification adjustment for net (gains) losses included in net earnings | 1,073 | 3,438 | 1,192 |
Net unrealized gains (losses) on securities | 171,771 | 51,176 | (92,529) |
Foreign currency translation adjustments | (108) | 4 | (4) |
Benefit plan liability adjustment | (3,569) | (3,474) | 3,398 |
Other comprehensive income (loss) | 168,094 | 47,706 | (89,135) |
Amounts Net of Taxes | |||
Net unrealized holding gains (losses) arising during the period | (642,148) | (179,587) | 352,561 |
Unrealized liquidity gains (losses) | 0 | 0 | 6 |
Reclassification adjustment for net (gains) losses included in net earnings | (4,038) | (12,934) | (4,485) |
Net unrealized gains (losses) on securities | (646,186) | (192,521) | 348,082 |
Foreign currency translation adjustments | 407 | (16) | 14 |
Benefit plan liability adjustment | 13,428 | 13,069 | (12,784) |
Other comprehensive income (loss) | $ (632,351) | $ (179,468) | $ 335,312 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Changes in Shares of Common Stock Outstanding (Details) - Common Stock - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Common stock shares outstanding: | |||
Shares outstanding at beginning of year (in shares) | 3,636 | 3,636 | 3,636 |
Shares exercised under stock option plan (in shares) | 0 | 0 | 0 |
Shares outstanding at end of year (in shares) | 3,636 | 3,636 | 3,636 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividend Restrictions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Dec. 01, 2022 | Oct. 21, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class A | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | $ 1,237,000 | $ 1,237,000 | $ 1,237,000 | ||||
Class B | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | $ 36,000 | 36,000 | $ 36,000 | ||||
National Western Life Insurance Company: | |||||||
Class of Stock [Line Items] | |||||||
Percentage of statutory surplus (percent) | 10% | ||||||
Maximum dividend payment which may be paid without prior approval | $ 66,500,000 | ||||||
National Western Life Insurance Company: | Dividend Declared | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | 2,000,000 | 0 | |||||
National Western Life Insurance Company: | Dividend Paid | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | $ 2,000,000 | 0 | |||||
Ozark National Life Insurance Company: | |||||||
Class of Stock [Line Items] | |||||||
Percentage of statutory surplus (percent) | 10% | ||||||
Maximum dividend payment which may be paid without prior approval | $ 21,600,000 | ||||||
Ozark National Life Insurance Company: | Dividend Declared | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | 0 | 0 | |||||
Ozark National Life Insurance Company: | Dividend Paid | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | 0 | 0 | |||||
NIS | |||||||
Class of Stock [Line Items] | |||||||
Maximum dividend payment | 13,600,000 | ||||||
NIS | Dividend Declared | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | 0 | 0 | |||||
NIS | Dividend Paid | |||||||
Class of Stock [Line Items] | |||||||
Dividends declared and paid | $ 0 | $ 0 | |||||
National Western Life Group Inc | Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $ 0.36 | $ 0.36 | |||||
Common stock, dividends paid (in dollars per share) | $ 0.36 | $ 0.36 | |||||
National Western Life Group Inc | Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $ 0.18 | $ 0.18 | |||||
Common stock, dividends paid (in dollars per share) | $ 0.18 | $ 0.18 |
Stockholders' Equity - Regulato
Stockholders' Equity - Regulatory Capital Requirements and Share-Based Payments - General Descriptions (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost, liability balance | $ 20,500,000 | $ 7,900,000 | |||
Intrinsic value of share-based compensation exercised | 2,600,000 | 4,100,000 | $ 2,800,000 | ||
Fair value of options vested | 7,700,000 | 3,700,000 | 4,200,000 | ||
Proceeds from exercise of stock options | $ 0 | 0 | 0 | ||
Share price (in dollars per share) | $ 281 | ||||
Pre-tax compensation cost (benefit) recognized | $ 15,200,000 | 5,800,000 | (2,200,000) | ||
Compensation cost (benefit), tax expense (benefit) | (3,200,000) | (1,200,000) | 500,000 | ||
Pre-tax compensation expense related to nonvested share-based awards not yet recognized | $ 27,400,000 | $ 11,900,000 | $ 9,100,000 | ||
Compensation cost related to nonvested options not yet recognized, weighted-average period of recognition | 1 year 6 months | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Share-base payment, performance period | 3 years | ||||
Performance outcome period | 3 years | ||||
Award measurement period | 3 years | 3 years | |||
Performance factor used to determine compensation payout | 110.19% | 85.16% | |||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 3 years | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Four | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Five | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Employees | Employee Stock Appreciation Rights SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 100% | ||||
Award vesting period | 3 years | ||||
Requisite service period of awards | 3 years | 3 years | |||
Officers | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant price (in dollars per share) | $ 220.61 | $ 218.44 | |||
Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant price (in dollars per share) | $ 207.84 | 218.44 | |||
Directors | Employee Stock Options SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Directors | Employee Stock Options SARs | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Directors | Employee Stock Options SARs | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Directors | Employee Stock Options SARs | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Directors | Employee Stock Options SARs | Tranche Four | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Directors | Employee Stock Options SARs | Tranche Five | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20% | ||||
Directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Award vesting price determining period | 20 days | 20 days | |||
Class A | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Class A | Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Class A | Directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Incentive Plan | Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Share-based payments, number of shares authorized under plans (in shares) | 300,000 | ||||
National Western Life Insurance Company: | Colorado Division of Insurance | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Current authorized control level RBC | $ 118,300,000 | ||||
Capital and surplus | 1,700,000,000 | ||||
Ozark National Life Insurance Company: | Missouri Department of Commerce and Insurance | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Current authorized control level RBC | 8,100,000 | ||||
Capital and surplus | $ 131,400,000 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Grants Issued to Officers and Directors (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Officers | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 113,127 | 64,157 |
Officers | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 7,591 | 5,301 |
Officers | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 5,989 | 4,066 |
Directors | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Directors | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 3,710 | 3,530 |
Directors | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Shares Available for Grant and Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Shares Available For Issuance Pursuant to Grants | |
Beginning Balance (in shares) | 291,000 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock options granted (in shares) | 0 |
Ending Balance (in shares) | 291,000 |
Options Outstanding, Shares | |
Beginning Balance (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock options granted (in shares) | 0 |
Ending Balance (in shares) | 0 |
Options Outstanding, Weighted-Average Exercise Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Stock options granted (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 0 |
Stockholders' Equity - Schedu_4
Stockholders' Equity - Schedule of Other Share / Unit Awards Activity (Details) | 12 Months Ended |
Dec. 31, 2022 shares | |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 186,994 |
Exercised (in shares) | (209) |
Forfeited (in shares) | (13,323) |
Granted (in shares) | 113,127 |
Ending balance (in shares) | 286,589 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 18,955 |
Exercised (in shares) | (7,210) |
Forfeited (in shares) | (1,185) |
Granted (in shares) | 11,301 |
Ending balance (in shares) | 21,861 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 24,485 |
Exercised (in shares) | (4,213) |
Forfeited (in shares) | (1,416) |
Granted (in shares) | 5,989 |
Ending balance (in shares) | 24,845 |
Stockholders' Equity - Schedu_5
Stockholders' Equity - Schedule of Share-Based Payments - Exercise Range (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 286,589 |
Number Outstanding, Aggregate intrinsic value | $ | $ 16,672 |
Number Exercisable (in shares) | 120,514 |
Number Exercisable, Aggregate intrinsic value | $ | $ 6,202 |
210.22 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 210.22 |
Number Outstanding (in shares) | 21,850 |
Weighted-Average Remaining Contractual Life | 10 months 24 days |
Number Exercisable (in shares) | 21,850 |
216.48 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 216.48 |
Number Outstanding (in shares) | 10,342 |
Weighted-Average Remaining Contractual Life | 3 years 1 month 6 days |
Number Exercisable (in shares) | 10,342 |
311.16 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 311.16 |
Number Outstanding (in shares) | 7,981 |
Weighted-Average Remaining Contractual Life | 4 years 1 month 6 days |
Number Exercisable (in shares) | 7,981 |
310.55 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 310.55 |
Number Outstanding (in shares) | 203 |
Weighted-Average Remaining Contractual Life | 4 years 3 months 18 days |
Number Exercisable (in shares) | 203 |
334.34 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 334.34 |
Number Outstanding (in shares) | 7,631 |
Weighted-Average Remaining Contractual Life | 5 years |
Number Exercisable (in shares) | 7,631 |
303.77 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 303.77 |
Number Outstanding (in shares) | 9,574 |
Weighted-Average Remaining Contractual Life | 6 years |
Number Exercisable (in shares) | 9,574 |
252.91 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 252.91 |
Number Outstanding (in shares) | 17,638 |
Weighted-Average Remaining Contractual Life | 6 years 9 months 18 days |
Number Exercisable (in shares) | 17,638 |
192.1 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 192.10 |
Number Outstanding (in shares) | 37,394 |
Weighted-Average Remaining Contractual Life | 7 years 10 months 24 days |
Number Exercisable (in shares) | 25,023 |
218.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 218.44 |
Number Outstanding (in shares) | 60,849 |
Weighted-Average Remaining Contractual Life | 9 years |
Number Exercisable (in shares) | 20,272 |
220.61 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise prices (in dollars per share) | $ / shares | $ 220.61 |
Number Outstanding (in shares) | 113,127 |
Weighted-Average Remaining Contractual Life | 10 years |
Number Exercisable (in shares) | 0 |
Stockholders' Equity - Schedu_6
Stockholders' Equity - Schedule of SARs / Options Outstanding Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.13% | 0.17% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 months 24 days | 1 year 10 months 24 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 years | 10 years |
Weighted Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility weighted-average | 36.18% | 35.05% |
Risk-free rate weighted-average | 4.19% | 1.01% |
Information Regarding Control_2
Information Regarding Controlling Stockholder (Details) | Dec. 31, 2022 vote shares | Dec. 31, 2021 shares |
Related Party Transaction [Line Items] | ||
Number of votes entitled to for each share | vote | 1 | |
Class B | ||
Related Party Transaction [Line Items] | ||
Ownership in the company | 5.45% | |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Class B | Chairman of the Board of Directors | ||
Related Party Transaction [Line Items] | ||
Ownership in the company | 99% | |
Class A | ||
Related Party Transaction [Line Items] | ||
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Percentage of board of directors that can be elected by holders of stock (percent) | 33.33% |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) benefit_plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | Dec. 31, 2007 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Average rate of return calculation period | 5 years | |||
Average rate of return | 6.91% | |||
Inception-to-date return | 6.23% | |||
Number of non-qualified defined benefit pension plan | benefit_plan | 3 | |||
Number of additional non-qualified defined benefit pension plan | benefit_plan | 2 | |||
Number of healthcare plans | benefit_plan | 2 | |||
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting percentage in accrued benefits from plan freeze (in percentage) | 100% | |||
Actuarial gain (loss) | $ 4,217 | $ 805 | ||
Discount rate | 5% | 2.75% | 2.25% | |
Accumulated benefit obligation | $ 17,000 | $ 22,100 | ||
Defined Benefit Pension Plans | Census Demographics | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 177 | (309) | ||
Defined Benefit Pension Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (78) | |||
Defined Benefit Pension Plans | Difference in Expected and Actual Benefit Payments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (48) | (127) | ||
Defined Benefit Pension Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 4,088 | 1,319 | ||
Chairman and President Non-Qualified Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 13,096 | $ 7,420 | ||
Discount rate | 5% | 2.75% | 2.25% | |
Accumulated benefit obligation | $ 23,200 | $ 26,400 | ||
Participant age threshold for contingent liability | 70 years | |||
Rate of compensation increase | 8% | 8% | 8% | |
Chairman and President Non-Qualified Defined Benefit Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Rate of compensation increase | 10% | |||
Chairman and President Non-Qualified Defined Benefit Plans | Census Demographics | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 2,956 | $ 4,208 | ||
Chairman and President Non-Qualified Defined Benefit Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (80) | |||
Chairman and President Non-Qualified Defined Benefit Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 10,140 | 3,292 | ||
Defined Benefit Postretirement Healthcare Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 1,927 | $ 457 | ||
Discount rate | 5% | 2.75% | 2.25% | |
Accumulated benefit obligation | $ 4,400 | $ 6,200 | ||
Defined Benefit Postretirement Healthcare Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 318 | (30) | ||
Defined Benefit Postretirement Healthcare Plans | Change in the Trend Rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (264) | |||
Defined Benefit Postretirement Healthcare Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 2,002 | 610 | ||
Defined Benefit Postretirement Healthcare Plans | Claims/Healthcare Cost Trend Experience | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ (129) | $ (123) |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Schedule of Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Pension Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | $ 22,056 | $ 23,927 | |
Service cost | 131 | 119 | $ 107 |
Interest cost | 581 | 528 | 674 |
Actuarial (gain) loss | (4,217) | (805) | |
Benefits paid | (1,574) | (1,713) | |
Projected benefit obligations at end of year | 16,977 | 22,056 | 23,927 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 23,241 | 20,833 | |
Actual return on plan assets | (3,407) | 3,265 | |
Contributions | 250 | 856 | |
Benefits paid | (1,574) | (1,713) | |
Fair value of plan assets at end of year | 18,510 | 23,241 | 20,833 |
Funded status at end of year | 1,533 | 1,185 | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 44,448 | 51,571 | |
Service cost | 1,038 | 1,235 | 1,209 |
Interest cost | 1,114 | 1,044 | 1,350 |
Actuarial (gain) loss | (13,096) | (7,420) | |
Benefits paid | (1,982) | (1,982) | |
Projected benefit obligations at end of year | 31,522 | 44,448 | 51,571 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Contributions | 1,982 | 1,982 | |
Benefits paid | (1,982) | (1,982) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (31,522) | (44,448) | |
Defined Benefit Postretirement Healthcare Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 6,160 | 6,469 | |
Interest cost | 173 | 148 | 165 |
Actuarial (gain) loss | (1,927) | (457) | |
Benefits paid | 0 | 0 | |
Projected benefit obligations at end of year | 4,406 | 6,160 | 6,469 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (4,406) | $ (6,160) |
Pension and Other Postretirem_5
Pension and Other Postretirement Plans - Schedule of Amounts Recognized in Consolidated Financial Statements and Accumulated Other Comprehensive Income (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Pension Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | $ 1,533,000 | $ 1,185,000 |
Liabilities | 0 | 0 |
Net amount recognized | 1,533,000 | 1,185,000 |
Amounts recognized in accumulated other comprehensive income (loss): | ||
Net (gain) loss | 4,273,000 | 3,642,000 |
Prior service cost | 0 | 0 |
Net amount recognized | 4,273,000 | 3,642,000 |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | 0 | 0 |
Liabilities | (31,522,000) | (44,448,000) |
Net amount recognized | (31,522,000) | (44,448,000) |
Amounts recognized in accumulated other comprehensive income (loss): | ||
Net (gain) loss | (1,509,000) | 13,925,000 |
Prior service cost | 286,000 | 345,000 |
Net amount recognized | (1,223,000) | 14,270,000 |
Defined Benefit Postretirement Healthcare Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | 0 | 0 |
Liabilities | (4,406,000) | (6,160,000) |
Net amount recognized | (4,406,000) | (6,160,000) |
Amounts recognized in accumulated other comprehensive income (loss): | ||
Net (gain) loss | (596,000) | 1,539,000 |
Prior service cost | 0 | 0 |
Net amount recognized | $ (596,000) | $ 1,539,000 |
Pension and Other Postretirem_6
Pension and Other Postretirement Plans - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Pension Plans | |||
Components of net periodic benefit costs: | |||
Interest cost | $ 581 | $ 528 | $ 674 |
Service cost | 131 | 119 | 107 |
Expected return on plan assets | (1,575) | (1,425) | (1,261) |
Amortization of net loss (gain) | 134 | 539 | 580 |
Net periodic benefit cost | (729) | (239) | 100 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net loss (gain) | 765 | (2,645) | 503 |
Amortization of net loss (gain) | (134) | (539) | (580) |
Total recognized in other comprehensive income (loss) | 631 | (3,184) | (77) |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (98) | (3,423) | 23 |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Components of net periodic benefit costs: | |||
Interest cost | 1,114 | 1,044 | 1,350 |
Service cost | 1,038 | 1,235 | 1,209 |
Amortization of prior service cost | 59 | 59 | 59 |
Amortization of net loss (gain) | 2,338 | 5,131 | 5,781 |
Net periodic benefit cost | 4,549 | 7,469 | 8,399 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net loss (gain) | (13,096) | (7,420) | 21,736 |
Amortization of prior service cost | (59) | (59) | (59) |
Amortization of net loss (gain) | (2,338) | (5,131) | (5,781) |
Total recognized in other comprehensive income (loss) | (15,493) | (12,610) | 15,896 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | (10,944) | (5,141) | 24,295 |
Defined Benefit Postretirement Healthcare Plans | |||
Components of net periodic benefit costs: | |||
Interest cost | 173 | 148 | 165 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | 208 | 292 | 158 |
Net periodic benefit cost | 381 | 440 | 323 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||
Net loss (gain) | (1,927) | (457) | 522 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss (gain) | (208) | (292) | (158) |
Total recognized in other comprehensive income (loss) | (2,135) | (749) | 364 |
Total recognized in net periodic benefit cost and other comprehensive income (loss) | $ (1,754) | $ (309) | $ 687 |
Pension and Other Postretirem_7
Pension and Other Postretirement Plans - Schedule of Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 5% | 2.75% | 2.25% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.75% | 2.25% | 3% |
Expected long-term return on plan assets | 7% | 7% | 7% |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 5% | 2.75% | 2.25% |
Rate of compensation increase | 8% | 8% | |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.75% | 2.25% | 3% |
Rate of compensation increase | 8% | 8% | 8% |
Defined Benefit Postretirement Healthcare Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 5% | 2.75% | 2.25% |
Annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 7.50% | ||
Decrease in annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 0.25% | ||
Ultimate annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 5% | ||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.75% | 2.25% | 3% |
Pension and Other Postretirem_8
Pension and Other Postretirement Plans - Schedule of Plan Assets (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) investment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Pension Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 18,510,000 | $ 23,241,000 | $ 20,833,000 |
Plan assets | $ 1,533,000 | $ 1,185,000 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 100% | 100% | 100% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Percentage pension assets not invested in cash or U.S. Government agencies (in percentage) | 96% | ||
Number of different investments | investment | 244 | ||
Acceptable range for each asset class (in percentage) | 4.10% | ||
Defined Benefit Pension Plans | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 12,438,000 | $ 16,767,000 | |
Defined Benefit Pension Plans | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,072,000 | 6,474,000 | |
Defined Benefit Pension Plans | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 787,000 | $ 852,000 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 4% | 4% | 5% |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 787,000 | $ 852,000 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Equity securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 63% | 68% | 67% |
Defined Benefit Pension Plans | Domestic | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 11,533,000 | $ 15,752,000 | |
Defined Benefit Pension Plans | Domestic | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 11,533,000 | 15,752,000 | |
Defined Benefit Pension Plans | Domestic | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Domestic | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 117,000 | 163,000 | |
Defined Benefit Pension Plans | International | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 117,000 | 163,000 | |
Defined Benefit Pension Plans | International | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 33% | 28% | 28% |
Defined Benefit Pension Plans | U.S. government agencies | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 601,000 | ||
Defined Benefit Pension Plans | U.S. government agencies | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans | U.S. government agencies | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 601,000 | ||
Defined Benefit Pension Plans | U.S. government agencies | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | ||
Defined Benefit Pension Plans | Corporate bonds | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 5,471,000 | $ 6,474,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Corporate bonds | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 5,471,000 | 6,474,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Other invested assets | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 1,000 | 0 | |
Defined Benefit Pension Plans | Other invested assets | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 1,000 | 0 | |
Defined Benefit Pension Plans | Other invested assets | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Other invested assets | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Plan assets | 0 | 0 | |
Defined Benefit Postretirement Healthcare Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Plan assets | $ 0 | $ 0 | |
Minimum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 0% | ||
Minimum | Equity securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 55% | ||
Minimum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 30% | ||
Maximum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 15% | ||
Maximum | Equity securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 70% | ||
Maximum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 40% |
Pension and Other Postretirem_9
Pension and Other Postretirement Plans - Contributions Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 0 |
Expected voluntary contribution for next fiscal year | $ 0 |
Defined Benefit Pension Plans | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Adjusted funding target attainment percentage (in percentage) | 80% |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 2,000 |
Pension and Other Postretire_10
Pension and Other Postretirement Plans - Schedule of Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 1,503 |
2024 | 1,455 |
2025 | 1,459 |
2026 | 1,405 |
2027 | 1,410 |
2028-2032 | 6,398 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 1,982 |
2024 | 1,982 |
2025 | 1,982 |
2026 | 1,982 |
2027 | 2,375 |
2028-2032 | 11,814 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 157 |
2027 | 119 |
2028-2032 | $ 1,416 |
Pension and Other Postretire_11
Pension and Other Postretirement Plans - Defined Contribution Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional company's matching contribution | 4% | 4% | 4% |
Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional company's matching contribution | 4% | ||
Qualified Plan | National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, 401(k) plan | $ 703 | $ 755 | $ 720 |
Qualified Plan | Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | 112 | 125 | 175 |
Qualified Plan | NIS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | 15 | 10 | 17 |
Non-Qualified Contribution Pension Plan | National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, 401(k) plan | 128 | 143 | 175 |
Non-Qualified Contribution Pension Plan | Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | $ (75) | $ 24 | $ 247 |
Federal Income Taxes - Schedule
Federal Income Taxes - Schedule of Total Federal Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes (benefits) on earnings from continuing operations: | |||
Current | $ 15,830 | $ 42,829 | $ (275) |
Deferred | 9,060 | 3,747 | 20,031 |
Taxes on earnings from continuing operations | 24,890 | 46,576 | 19,756 |
Taxes (benefits) on components of stockholders' equity: | (168,094) | (47,706) | 89,135 |
Total Federal income taxes | (143,203) | (1,131) | 108,084 |
Net unrealized gains and losses on securities available-for-sale | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity: | (171,770) | (51,177) | 92,528 |
Foreign currency translation adjustments | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity: | 108 | (4) | 4 |
Change in benefit plan liability | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity: | 3,569 | 3,474 | (3,398) |
Change in accounting | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity: | $ 0 | $ 0 | $ (806) |
Federal Income Taxes - Schedu_2
Federal Income Taxes - Schedule of Differences and Corresponding Tax Effects (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Reconciliation | |||||
Income tax expense at statutory rate of 21% | $ 26,467 | $ 47,724 | $ 23,534 | ||
Federal statutory income tax rate | 21% | 21% | 21% | ||
Dividend received deduction | $ (405) | (394) | (401) | ||
Tax exempt interest | (1,194) | (1,263) | (1,436) | ||
Non deductible salary expense | 642 | 439 | 351 | ||
Adjustments pertaining to prior tax years | (538) | (63) | (8) | ||
Nondeductible insurance | 96 | 96 | 96 | ||
Nondeductible expenses | 42 | 54 | 44 | ||
Tax rate differential for loss carryback | 0 | 0 | (2,497) | ||
Other, net | (220) | (17) | 73 | ||
Taxes on earnings from continuing operations | $ 24,890 | $ 46,576 | $ 19,756 |
Federal Income Taxes - Narrativ
Federal Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Permanent tax benefit percentage | 14% | ||||
Permanent tax benefit | $ 120,000 | $ 2,500,000 | |||
Adjustment to tax reserves | $ 332,900,000 | ||||
Federal statutory income tax rate | 21% | 21% | 21% | ||
Deferred tax liability from Tax Act | $ 69,900,000 | $ 26,200,000 | |||
Annual adjustment to tax reserves | $ 41,600,000 | ||||
Annual income tax expense from adjustment to tax reserves | $ 8,700,000 | ||||
Valuation allowances for deferred tax assets | 0 | 0 | |||
Reserve for uncertain tax positions | 0 | ||||
Accruals for interest or penalties related to unrecognized tax benefits | $ 0 | $ 0 |
Federal Income Taxes - Schedu_3
Federal Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Future policy benefits, excess of financial accounting liabilities over tax liabilities | $ 142,476 | $ 183,692 |
Investment securities write-downs for financial accounting purposes | 1,088 | 735 |
Benefit plan liabilities | 8,974 | 12,546 |
Accrued operating expenses recorded for financial accounting purposes not currently tax deductible | 5,915 | 4,490 |
Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes | 42 | 64 |
Net unrealized losses on debt and equity securities | 151,284 | 0 |
Goodwill | 1,315 | 1,696 |
Other | 6,637 | 88 |
Total gross deferred tax assets | 317,731 | 203,311 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes | (136,092) | (157,543) |
Tax reform reserve adjustment | (26,198) | (34,942) |
Debt securities, principally due to deferred market discount for tax | (5,895) | (5,611) |
Real estate, principally due to adjustments for financial accounting purposes | (30) | (14) |
Net unrealized gains on debt and equity securities | 0 | (66,696) |
Foreign currency translation adjustments | (1,464) | (1,356) |
Fixed assets, due to different depreciation bases | (11,729) | (13,032) |
Cost of reinsurance | (16,449) | (18,834) |
Funds withheld liability | (61,198) | (5,591) |
Other | (809) | (858) |
Total gross deferred tax liabilities | (259,864) | (304,477) |
Net deferred tax assets (liabilities) | $ 57,867 | |
Net deferred tax assets (liabilities) | $ (101,166) |
Short-Term Borrowing (Details)
Short-Term Borrowing (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-term Debt [Line Items] | |||
Collateral security deposit | 110% | ||
Outstanding borrowings | $ 0 | $ 0 | |
Debt securities amortized value | 8,438,760,000 | $ 8,604,250,000 | |
Carrying Values | |||
Short-term Debt [Line Items] | |||
Debt securities amortized value | 92,400,000 | ||
Cash and securities | 196,900,000 | ||
Fair Values | |||
Short-term Debt [Line Items] | |||
Debt securities amortized value | 82,500,000 | ||
Cash and securities | 187,700,000 | ||
MNB | |||
Short-term Debt [Line Items] | |||
Bank line of credit available to the company | $ 75,000,000 | ||
FHLB | |||
Short-term Debt [Line Items] | |||
Initial minimum required stock investment | $ 4,300,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 31, 2023 USD ($) | May 10, 2022 USD ($) | Mar. 04, 2022 USD ($) | Feb. 11, 2022 USD ($) | Oct. 15, 2021 USD ($) | Nov. 11, 2019 USD ($) | Jul. 27, 2019 USD ($) | Sep. 30, 2020 class_action_suit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) agreement | Dec. 31, 2020 USD ($) | Nov. 30, 2021 USD ($) | Apr. 30, 2019 USD ($) | |
Loss Contingencies [Line Items] | |||||||||||||
Rental expense | $ 400,000 | $ 400,000 | $ 500,000 | ||||||||||
Number of agreement | agreement | 2 | ||||||||||||
Finance lease | 997,000 | $ 1,400,000 | |||||||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||||||||
2023 | 343,000 | ||||||||||||
2024 | 316,000 | ||||||||||||
2024 | 179,000 | ||||||||||||
2026 | 165,000 | ||||||||||||
2027 | 0 | ||||||||||||
Total minimum lease payments | 1,003,000 | ||||||||||||
Less: Interest | $ (6,000) | ||||||||||||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |||||||||||
Present value of net minimum lease payments | $ 997,000 | $ 1,400,000 | |||||||||||
Tax Status Of Company's International Life Insurance Products | IRS | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
IRS payment to be remitted | $ 4,900,000 | ||||||||||||
Payment remittance period after agreement effective date | 60 days | ||||||||||||
Period within which to make the stipulated adjustments after agreement effective date | 90 days | ||||||||||||
Guaranty Association Assessments | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
IRS payment to be remitted | 300,000 | $ 100,000 | $ 200,000 | ||||||||||
Other operating expenses | 200,000 | ||||||||||||
New Loans | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Commitments to extend credit relating to mortgage loans | 0 | ||||||||||||
Existing Loans | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Commitments to extend credit relating to mortgage loans | 1,400,000 | ||||||||||||
Capital Contributions To Investment Funds | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Commitments to extend credit relating to mortgage loans | 232,800,000 | ||||||||||||
Private Placement | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Commitments to extend credit relating to mortgage loans | 9,700,000 | ||||||||||||
Revolver Loans | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Commitments to extend credit relating to mortgage loans | $ 300,000 | ||||||||||||
Williams v Pantaleoni et al | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Equity indexed annuity issued | $ 100,000 | ||||||||||||
Punitive damages reversed | $ 2,500,000 | ||||||||||||
Williams v Pantaleoni et al | Economic damages | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 14,949 | 14,949 | |||||||||||
Punitive damages reversed | 2,500,000 | ||||||||||||
Williams v Pantaleoni et al | Economic damages | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 14,949 | ||||||||||||
Williams v Pantaleoni et al | Non-economic damages | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | 420,000 | 420,000 | |||||||||||
Williams v Pantaleoni et al | Non-economic damages | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | 420,000 | ||||||||||||
Williams v Pantaleoni et al | Plaintiff attorney's fees | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 1,260,000 | $ 1,260,000 | |||||||||||
Williams v Pantaleoni et al | Plaintiff attorney's fees | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | 842,380 | ||||||||||||
Williams v Pantaleoni et al | Appellate Costs | Subsequent Event | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 538,461 | ||||||||||||
Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Number of class action suit | class_action_suit | 2 | ||||||||||||
IRS payment to be remitted | $ 4,400,000 | ||||||||||||
Judicial Ruling | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 1,803,503 | ||||||||||||
Judicial Ruling | Williams v Pantaleoni et al | Economic damages | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 14,949 | ||||||||||||
Judicial Ruling | Williams v Pantaleoni et al | Non-economic damages | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 2,920,000 | ||||||||||||
Judicial Ruling | Williams v Pantaleoni et al | Plaintiff attorney's fees | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Damages award to plaintiff | $ 1,260,000 |
Deposits with Regulatory Auth_3
Deposits with Regulatory Authorities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | $ 19,222 | $ 19,101 |
National Western: | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 15,854 | 15,782 |
National Western: | Debt securities available-for-sale | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 15,379 | 15,307 |
National Western: | Short-term investments | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 475 | 475 |
Ozark National: | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 3,368 | 3,319 |
Ozark National: | Debt securities available-for-sale | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | $ 3,368 | $ 3,319 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) trust | Dec. 31, 2021 USD ($) | Dec. 31, 2015 USD ($) | |
Related Party Transaction [Line Items] | |||
Mortgage loan | $ 505,730,000 | $ 487,304,000 | |
Robert L. Moody, Jr. | |||
Related Party Transaction [Line Items] | |||
Commission paid under agency contracts | $ 46,507 | 155,107 | |
Moody Bancshares, Inc. | The Company | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 9.40% | ||
Number of separate trusts | trust | 4 | ||
Moody Bank Holding | Moody Bancshares, Inc. | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 100% | ||
MNB | |||
Related Party Transaction [Line Items] | |||
Commission and service fees expense | $ 486,813 | 536,101 | |
Payments for rent | $ 32,101 | 32,101 | |
MNB | Moody Bank Holding | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 98.50% | ||
American National Insurance Company | |||
Related Party Transaction [Line Items] | |||
Premiums paid during the year | $ 116,314 | 642,099 | |
Reimbursements for claim costs | 1,506,422 | 3,021,197 | |
Premium received | 1,569,190 | 3,147,080 | |
American National Insurance Company | The Westcap Corporation | |||
Related Party Transaction [Line Items] | |||
Undivided participation in mortgage | 24.93% | ||
Mortgage loan | 17,900,000 | $ 20,000,000 | |
Percentage of commercial mortgage | 24.93% | ||
American National Registered Investment Advisory | |||
Related Party Transaction [Line Items] | |||
Professional fees | 29,753 | $ 58,032 | |
Todd M. Wallace | Jones, Lang, LaSalle Brokerage, Inc. (JLL) | Leasing Agent Agreement | |||
Related Party Transaction [Line Items] | |||
Payments under agreements | 180,208 | ||
Todd M. Wallace | Jones, Lang, LaSalle Brokerage, Inc. (JLL) | Services Agreement | |||
Related Party Transaction [Line Items] | |||
Payments under agreements | $ 0 |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) | Dec. 31, 2022 USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | $ 10,590,131,000 |
Balance Sheet Amount | 9,565,639,000 |
Fixed maturities: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 9,708,357,000 |
Fair Value | 8,677,627,000 |
Balance Sheet Amount | 8,677,626,000 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 14,547,000 |
Fair Value | 22,076,000 |
Balance Sheet Amount | 22,076,000 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 688,000 |
Fair Value | 1,441,000 |
Balance Sheet Amount | 1,441,000 |
Banks, trust, and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 1,575,000 |
Fair Value | 3,098,000 |
Balance Sheet Amount | 3,098,000 |
Industrial, miscellaneous, and all others | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 7,959,000 |
Fair Value | 13,868,000 |
Balance Sheet Amount | 13,868,000 |
Preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 4,325,000 |
Fair Value | 3,669,000 |
Balance Sheet Amount | 3,669,000 |
Derivatives, index options | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 23,669,000 |
Balance Sheet Amount | 23,669,000 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 507,020,000 |
Balance Sheet Amount | 505,730,000 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 70,495,000 |
Balance Sheet Amount | 70,495,000 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 262,106,000 |
Balance Sheet Amount | 262,106,000 |
Real estate acquired through foreclosure | 0 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 3,937,000 |
Balance Sheet Amount | 3,937,000 |
Debt securities available-for-sale: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 8,438,760,000 |
Fair Value | 7,611,633,000 |
Balance Sheet Amount | 7,611,633,000 |
Debt securities available-for-sale: | United States government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 23,816,000 |
Fair Value | 23,355,000 |
Balance Sheet Amount | 23,355,000 |
Debt securities available-for-sale: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 476,338,000 |
Fair Value | 411,499,000 |
Balance Sheet Amount | 411,499,000 |
Debt securities available-for-sale: | Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 62,964,000 |
Fair Value | 45,887,000 |
Balance Sheet Amount | 45,887,000 |
Debt securities available-for-sale: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 681,785,000 |
Fair Value | 615,137,000 |
Balance Sheet Amount | 615,137,000 |
Debt securities available-for-sale: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 6,199,886,000 |
Fair Value | 5,631,571,000 |
Balance Sheet Amount | 5,631,571,000 |
Debt securities available-for-sale: | Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 21,965,000 |
Fair Value | 20,285,000 |
Balance Sheet Amount | 20,285,000 |
Debt securities available-for-sale: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 337,186,000 |
Fair Value | 321,032,000 |
Balance Sheet Amount | 321,032,000 |
Debt securities available-for-sale: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 634,820,000 |
Fair Value | 542,867,000 |
Balance Sheet Amount | 542,867,000 |
Debt securities trading: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 1,269,597,000 |
Fair Value | 1,065,994,000 |
Balance Sheet Amount | 1,065,993,000 |
Debt securities trading: | United States government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 0 |
Fair Value | 0 |
Balance Sheet Amount | 0 |
Debt securities trading: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 16,603,000 |
Fair Value | 12,126,000 |
Balance Sheet Amount | 12,126,000 |
Debt securities trading: | Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 0 |
Fair Value | 0 |
Balance Sheet Amount | 0 |
Debt securities trading: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 36,010,000 |
Fair Value | 26,030,000 |
Balance Sheet Amount | 26,030,000 |
Debt securities trading: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 574,227,000 |
Fair Value | 450,135,000 |
Balance Sheet Amount | 450,135,000 |
Debt securities trading: | Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 253,567,000 |
Fair Value | 221,096,000 |
Balance Sheet Amount | 221,096,000 |
Debt securities trading: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 18,369,000 |
Fair Value | 16,857,000 |
Balance Sheet Amount | 16,857,000 |
Debt securities trading: | Collateralized loan obligation | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 27,203,000 |
Fair Value | 26,162,000 |
Balance Sheet Amount | 26,161,000 |
Debt securities trading: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 343,618,000 |
Fair Value | 313,588,000 |
Balance Sheet Amount | $ 313,588,000 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Cash and cash equivalents | $ 295,270 | $ 714,624 | |
Deferred federal income tax asset | 57,867 | 0 | |
Other assets | 110,339 | 126,609 | |
Total assets | 13,100,227 | 14,330,189 | $ 14,648,270 |
Liabilities: | |||
Current Federal income tax liability | 0 | 2,331 | |
Other liabilities | 166,557 | 154,409 | |
Total liabilities | 11,093,016 | 11,790,498 | |
Stockholders' Equity: | |||
Additional paid-in capital | 41,716 | 41,716 | |
Accumulated other comprehensive income (loss) | (416,397) | 215,953 | |
Retained earnings | 2,381,856 | 2,281,986 | |
Total stockholders' equity | 2,007,211 | 2,539,691 | $ 2,539,750 |
Total liabilities and stockholders' equity | 13,100,227 | 14,330,189 | |
The Company | |||
ASSETS | |||
Investment in subsidiaries | 2,009,817 | 2,538,996 | |
Cash and cash equivalents | 1,939 | 7,017 | |
Deferred federal income tax asset | 14,972 | 8,258 | |
Other assets | 233 | 263 | |
Total assets | 2,026,961 | 2,554,534 | |
Liabilities: | |||
Current Federal income tax liability | 18,444 | 14,388 | |
Other liabilities | 1,306 | 455 | |
Total liabilities | 19,750 | 14,843 | |
Stockholders' Equity: | |||
Additional paid-in capital | 41,716 | 41,716 | |
Accumulated other comprehensive income (loss) | (416,397) | 215,953 | |
Retained earnings | 2,381,856 | 2,281,986 | |
Total stockholders' equity | 2,007,211 | 2,539,691 | |
Total liabilities and stockholders' equity | 2,026,961 | 2,554,534 | |
Class A | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 34 | 34 | |
Class A | The Company | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 34 | 34 | |
Class B | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 2 | 2 | |
Class B | The Company | |||
Stockholders' Equity: | |||
Common stock, value outstanding | $ 2 | $ 2 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Financial Position Additional Information (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Class A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Class B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
The Company | Class A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
The Company | Class B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Net investment income | $ 299,640 | $ 562,530 | $ 417,202 |
Total revenues | 558,397 | 824,091 | 694,742 |
Expenses: | |||
Other operating expenses | 135,817 | 126,612 | 104,584 |
Total expenses | 432,363 | 596,834 | 582,674 |
Earnings before Federal income taxes | 126,034 | 227,257 | 112,068 |
Federal income taxes (benefit) | 24,890 | 46,576 | 19,756 |
Net earnings | 101,144 | 180,681 | 92,312 |
The Company | |||
Revenues: | |||
Dividend income from subsidiaries | 2,000 | 0 | 1,395 |
Net investment income | 36 | 10 | 9 |
Total revenues | 2,036 | 10 | 1,404 |
Expenses: | |||
Other operating expenses | 5,140 | 2,660 | 3,322 |
Total expenses | 5,140 | 2,660 | 3,322 |
Earnings before Federal income taxes | (3,104) | (2,650) | (1,918) |
Federal income taxes (benefit) | (1,077) | (537) | (2,212) |
Earnings (loss) before equity in earnings of affiliates | (2,027) | (2,113) | 294 |
Equity in earnings of affiliates | 103,171 | 182,794 | 92,018 |
Net earnings | $ 101,144 | $ 180,681 | $ 92,312 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net earnings | $ 101,144 | $ 180,681 | $ 92,312 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Depreciation and amortization | 14,330 | 13,001 | 11,903 |
Change in: | |||
Federal income tax, net | (8,839) | 12,739 | (14,156) |
Deferred Federal income tax | 9,061 | 3,746 | 20,031 |
Net cash provided by operating activities | 358,540 | 276,825 | 373,071 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | (172,930) | 180,595 | 393,537 |
Cash flows from financing activities: | |||
Dividends on common stock | (1,274) | (1,272) | (1,273) |
Net cash provided by (used in) financing activities | (605,479) | (323,835) | (439,093) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (419,354) | 133,565 | 327,534 |
Cash, cash equivalents, and restricted cash at beginning of year | 714,624 | 581,059 | 253,525 |
Cash, cash equivalents, and restricted cash at end of year | 295,270 | 714,624 | 581,059 |
The Company | |||
Cash flows from operating activities: | |||
Net earnings | 101,144 | 180,681 | 92,312 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Equity in earnings of affiliates | (103,171) | (182,794) | (92,018) |
Depreciation and amortization | 30 | 30 | 30 |
Change in: | |||
Federal income tax, net | 4,056 | 2,721 | 16,397 |
Deferred Federal income tax | (6,714) | (537) | (7,481) |
Other, net | 851 | (188) | (830) |
Net cash provided by operating activities | (3,804) | (87) | 8,410 |
Cash flows from investing activities: | |||
Payments to acquire businesses | 0 | 0 | 0 |
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Dividends on common stock | (1,274) | (1,272) | (1,273) |
Net cash provided by (used in) financing activities | (1,274) | (1,272) | (1,273) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (5,078) | (1,359) | 7,137 |
Cash, cash equivalents, and restricted cash at beginning of year | 7,017 | 8,376 | 1,239 |
Cash, cash equivalents, and restricted cash at end of year | $ 1,939 | $ 7,017 | $ 8,376 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - Basis of Presentation and Dividend Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
National Western Life Insurance Company: | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividend payments | $ 2 | $ 0 | $ 0 |
NIS | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividend payments | $ 0 | $ 0 | $ 1.4 |
Schedule IV - Reinsurance Inf_2
Schedule IV - Reinsurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Life insurance face amount in force | |||
Gross Amount | $ 19,668,410 | $ 20,888,431 | $ 21,954,160 |
Ceded to Other Companies | 3,549,917 | 3,781,167 | 4,013,073 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 16,118,493 | $ 17,107,264 | $ 17,941,087 |
Percentage of Amount Assumed to Net | 0% | 0% | 0% |
Premiums: | |||
Gross Amount | $ 94,124 | $ 96,268 | $ 98,554 |
Ceded to Other Companies | 6,443 | 6,419 | 6,217 |
Assumed from Other Companies | 177 | 194 | 205 |
Net amount | $ 87,858 | $ 90,043 | $ 92,542 |
Percentage of Amount Assumed to Net | 0.20% | 0.20% | 0.20% |
Life insurance | |||
Premiums: | |||
Gross Amount | $ 90,854 | $ 92,891 | $ 95,579 |
Ceded to Other Companies | 6,443 | 6,419 | 6,217 |
Assumed from Other Companies | 177 | 194 | 205 |
Net amount | $ 84,588 | $ 86,666 | $ 89,567 |
Percentage of Amount Assumed to Net | 0.20% | 0.20% | 0.20% |
Accident and health insurance | |||
Premiums: | |||
Gross Amount | $ 3,252 | $ 3,346 | $ 2,956 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 3,252 | $ 3,346 | $ 2,956 |
Percentage of Amount Assumed to Net | 0% | 0% | 0% |
Annuities | |||
Premiums: | |||
Gross Amount | $ 18 | $ 31 | $ 19 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 18 | $ 31 | $ 19 |
Percentage of Amount Assumed to Net | 0% | 0% | 0% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for current expected credit losses on mortgage loans: | |||
Allowance for current expected credit losses on mortgage loans: | |||
Balance at Beginning of Period | $ 2,987 | $ 2,486 | $ 675 |
Charged to Costs and Expenses | 588 | 501 | 1,307 |
Charged to Retained Earnings | 0 | 0 | 504 |
Reductions | 0 | 0 | 0 |
Balance at End of Period | 3,575 | 2,987 | 2,486 |
Allowance for current expected credit losses on debt securities: | |||
Allowance for current expected credit losses on mortgage loans: | |||
Balance at Beginning of Period | 0 | 0 | |
Charged to Costs and Expenses | 0 | 0 | |
Charged to Retained Earnings | 0 | 0 | |
Reductions | 0 | 0 | |
Balance at End of Period | 0 | 0 | 0 |
Allowance for current expected credit losses on reinsurance recoverables: | |||
Allowance for current expected credit losses on mortgage loans: | |||
Balance at Beginning of Period | 0 | 0 | 0 |
Charged to Costs and Expenses | 450 | 0 | 0 |
Charged to Retained Earnings | 0 | 0 | 0 |
Reductions | 0 | 0 | 0 |
Balance at End of Period | 450 | 0 | 0 |
Allowance for possible losses on real estate: | |||
Allowance for current expected credit losses on mortgage loans: | |||
Balance at Beginning of Period | 424 | 424 | 596 |
Charged to Costs and Expenses | 0 | 0 | 0 |
Charged to Retained Earnings | 0 | 0 | 0 |
Reductions | (74) | 0 | (172) |
Balance at End of Period | $ 350 | $ 424 | $ 424 |