Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 07, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $0.01 par value | |
Trading Symbol | NWLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001635984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,020 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Investments: | ||
Debt securities available-for-sale, at fair value (cost: $7,994,143 and $8,438,760) | $ 7,052,554 | $ 7,611,633 |
Debt securities trading, at fair value (cost: $1,221,272 and $1,269,597) | 1,000,355 | 1,065,993 |
Mortgage loans, net of allowance for credit losses ($4,296 and $3,575), ($19,285 and $19,334 at fair value) | 490,059 | 505,730 |
Policy loans | 67,809 | 70,495 |
Derivatives, index options | 55,278 | 23,669 |
Equity securities, at fair value (cost: $14,131 and $14,547) | 21,913 | 22,076 |
Other long-term investments | 308,899 | 262,106 |
Short-term investments | 7,821 | 3,937 |
Total investments | 9,004,688 | 9,565,639 |
Cash and cash equivalents | 320,740 | 295,270 |
Deferred policy acquisition costs (Note 1) | 635,837 | 663,882 |
Deferred sales inducements (Note 1) | 74,928 | 85,303 |
Value of business acquired (Note 1) | 132,004 | 138,495 |
Cost of reinsurance (Note 1) | 69,945 | 78,328 |
Market risk benefits asset (Note 1) | 48,240 | 48,759 |
Accrued investment income | 95,704 | 92,250 |
Federal income tax receivable | 3,161 | 6,508 |
Deferred Federal income tax asset (Note 1) | 20,173 | 9,032 |
Amounts recoverable from reinsurer, net of allowance for credit losses ($0 and $450) (Note 1) | 1,547,267 | 1,688,788 |
Other assets | 106,743 | 110,691 |
Total assets | 12,059,430 | 12,782,945 |
Future policyholder obligations: | ||
Liability for policyholder account balances (Note 1) | 7,078,891 | 7,661,785 |
Additional liability for benefits in excess of account balance (Note 1) | 158,040 | 148,708 |
Liability for future policy benefits (Note 1) | 843,636 | 900,146 |
Market risk benefits liability (Note 1) | 220,506 | 215,777 |
Other policyholder liabilities | 137,169 | 175,089 |
Funds withheld liability | 1,161,155 | 1,333,036 |
Other liabilities | 215,934 | 157,482 |
Total liabilities | 9,815,331 | 10,592,023 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) (Note 1) | (531,705) | (478,219) |
Retained earnings (Note 1) | 2,734,052 | 2,627,389 |
Total stockholders’ equity | 2,244,099 | 2,190,922 |
Total liabilities and stockholders' equity | 12,059,430 | 12,782,945 |
Class A | ||
Common stock: | ||
Common stock value | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock value | $ 2 | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt securities available for sale | $ 7,994,143 | $ 8,438,760 |
Debt securities, trading | 1,221,272 | 1,269,597 |
Mortgage loans - allowance for credit losses | 4,296 | 3,575 |
Mortgage loans, at fair value | 19,285 | 19,334 |
Equity securities - cost | 14,131 | 14,547 |
Amounts recoverable, allowance for credit losses | $ 0 | $ 450 |
Class A | ||
Equity, Attributable to Parent [Abstract] | ||
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 | ||
Equity, Attributable to Parent [Abstract] | ||
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Premiums and other revenues: | ||||
Universal life and annuity contract charges (Note 1) | $ 34,471 | $ 33,810 | $ 106,952 | $ 99,428 |
Traditional life and single premium immediate annuity with life contingency ("SPIAWLC") premiums (Note 1) | 21,631 | 22,337 | 64,435 | 71,119 |
Net investment income | 68,964 | 79,504 | 281,387 | 204,702 |
Other revenues | 5,741 | 5,761 | 16,731 | 17,136 |
Net realized investment gains | 25,883 | 745 | 25,976 | 6,305 |
Total revenues | 156,690 | 142,157 | 495,481 | 398,690 |
Benefits and expenses: | ||||
Life and other policy benefits (Note 1) | 26,557 | 27,768 | 83,435 | 87,481 |
Policy benefit remeasurement (gains) and losses (Note 1) | 8,360 | 9,827 | 8,360 | 9,827 |
Market risk benefits expense (Note 1) | (29,439) | (33,571) | 6,733 | (150,069) |
Amortization of deferred transaction costs (Note 1) | 20,326 | 21,613 | 63,600 | 67,549 |
Universal life and annuity contract interest (Note 1) | (10,417) | 42,235 | 52,742 | 2,466 |
Other operating expenses | 42,430 | 29,387 | 129,556 | 92,290 |
Total benefits and expenses | 57,817 | 97,259 | 344,426 | 109,544 |
Earnings before Federal income taxes | 98,873 | 44,898 | 151,055 | 289,146 |
Federal income taxes | 34,148 | 9,710 | 44,392 | 59,869 |
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Class A (Note 4) | ||||
Benefits and expenses: | ||||
Net earnings | $ 62,895 | $ 34,193 | $ 103,647 | $ 222,793 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 |
Class B (Note 4) | ||||
Benefits and expenses: | ||||
Net earnings | $ 1,830 | $ 995 | $ 3,016 | $ 6,484 |
Basic earnings per share: | ||||
Basic earnings per share (in dollars per share) | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 |
Diluted earnings per share: | ||||
Diluted earnings per share (in dollars per share) | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 64,725 | $ 35,188 | $ 106,663 | $ 229,277 |
Unrealized gains (losses) on debt securities available-for-sale: | ||||
Net unrealized holding gains (losses) arising during period (Note 1) | (143,757) | (287,338) | (90,152) | (1,094,529) |
Reclassification adjustment for net amounts included in net earnings | (183) | 129 | (272) | (3,998) |
Net unrealized gains (losses) on securities | (143,940) | (287,209) | (90,424) | (1,098,527) |
Effect of discount rate changes on liability for future policy benefits (Note 1) | 45,495 | 51,262 | 38,125 | 207,550 |
Foreign currency translation adjustments (Note 1) | 17 | 51 | 9 | 346 |
Benefit plans: | ||||
Amortization of net prior service cost and net gain (loss) | (398) | 1,135 | (1,196) | 3,403 |
Other comprehensive income (loss) | (98,826) | (234,761) | (53,486) | (887,228) |
Comprehensive income (loss) | $ (34,101) | $ (199,573) | $ 53,177 | $ (657,951) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common stock: | Additional paid-in capital: | Accumulated other comprehensive income (loss): | Unrealized gains (losses) on debt securities available-for-sale: (Note 1) | Changes in the Liability for future policy benefits related to changing discount rates (Note 1) | Foreign currency translation adjustments: (Note 1) | Benefit plan liability adjustment: | Retained earnings: |
Total stockholders’ equity, beginning of period at Dec. 31, 2021 | $ 2,721,553 | $ 36 | $ 41,716 | $ 297,649 | $ 367,109 | $ (60,121) | $ 6,028 | $ (15,367) | $ 2,382,152 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in unrealized gains (losses) during period, net of tax | (1,094,529) | (1,098,527) | |||||||
Change in liability for future policy benefits during period, net of tax | 207,550 | 207,550 | |||||||
Change in translation adjustments during period | 346 | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | 3,403 | 3,403 | |||||||
Net earnings | 229,277 | 229,277 | |||||||
Total stockholders’ equity, end of period at Sep. 30, 2022 | 2,063,602 | 36 | 41,716 | (589,579) | (731,418) | 147,429 | 6,374 | (11,964) | 2,611,429 |
Total stockholders’ equity, beginning of period at Jun. 30, 2022 | 2,263,175 | 36 | 41,716 | (354,818) | (444,209) | 96,167 | 6,323 | (13,099) | 2,576,241 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in unrealized gains (losses) during period, net of tax | (287,338) | (287,209) | |||||||
Change in liability for future policy benefits during period, net of tax | 51,262 | 51,262 | |||||||
Change in translation adjustments during period | 51 | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | 1,135 | 1,135 | |||||||
Net earnings | 35,188 | 35,188 | |||||||
Total stockholders’ equity, end of period at Sep. 30, 2022 | 2,063,602 | 36 | 41,716 | (589,579) | (731,418) | 147,429 | 6,374 | (11,964) | 2,611,429 |
Total stockholders’ equity, beginning of period at Dec. 31, 2022 | 2,190,922 | 36 | 41,716 | (478,219) | (653,431) | 170,701 | 6,450 | (1,939) | 2,627,389 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in unrealized gains (losses) during period, net of tax | (90,152) | (90,424) | |||||||
Change in liability for future policy benefits during period, net of tax | 38,125 | 38,125 | |||||||
Change in translation adjustments during period | 9 | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (1,196) | (1,196) | |||||||
Net earnings | 106,663 | 106,663 | |||||||
Total stockholders’ equity, end of period at Sep. 30, 2023 | 2,244,099 | 36 | 41,716 | (531,705) | (743,855) | 208,826 | 6,459 | (3,135) | 2,734,052 |
Total stockholders’ equity, beginning of period at Jun. 30, 2023 | 36 | 41,716 | (599,915) | 163,331 | 6,442 | (2,737) | 2,669,327 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in unrealized gains (losses) during period, net of tax | (143,757) | (143,940) | |||||||
Change in liability for future policy benefits during period, net of tax | 45,495 | 45,495 | |||||||
Change in translation adjustments during period | 17 | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (398) | (398) | |||||||
Net earnings | 64,725 | 64,725 | |||||||
Total stockholders’ equity, end of period at Sep. 30, 2023 | $ 2,244,099 | $ 36 | $ 41,716 | $ (531,705) | $ (743,855) | $ 208,826 | $ 6,459 | $ (3,135) | $ 2,734,052 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 106,663 | $ 229,277 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest (Note 1) | 52,742 | 2,466 |
Surrender charges and other policy revenues | (18,025) | (14,338) |
Realized (gains) losses on investments | (25,976) | (6,305) |
Accretion/amortization of discounts and premiums, investments | (1,911) | (3,289) |
Depreciation and amortization | 7,449 | 10,598 |
Increase (decrease) in estimated credit losses on investments | 721 | 812 |
(Increase) decrease in value of debt securities trading | 17,313 | 218,218 |
(Increase) decrease in value of equity securities | (1,807) | 4,942 |
(Increase) decrease in value of derivative options | (4,045) | 89,173 |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired (Note 1) | 44,911 | 24,298 |
(Increase) decrease in accrued investment income | (3,454) | (7,955) |
(Increase) decrease in reinsurance recoverable (Note 1) | 141,521 | 142,466 |
(Increase) decrease in cost of reinsurance | 8,383 | 8,192 |
(Increase) decrease in other assets (Note 1) | (16,059) | (311) |
Increase (decrease) in liabilities for future policy benefits (Note 1) | 30,635 | 10,064 |
Increase (decrease) in market risk benefits liability (Note 1) | 5,248 | (149,083) |
Increase (decrease) in other policyholder liabilities | (37,910) | 12,214 |
Increase (decrease) in Federal income tax liability | 3,347 | (16,747) |
Increase (decrease) in deferred Federal income tax (Note 1) | 3,077 | 53,023 |
Increase (decrease) in funds withheld liability | (171,881) | (360,791) |
Increase (decrease) in other liabilities (Note 1) | 58,613 | (15,188) |
Net cash provided by operating activities | 199,555 | 231,736 |
Proceeds from sales of: | ||
Debt securities available-for-sale | 44,678 | 39,254 |
Debt securities trading | 50,978 | 17,183 |
Other investments | 28,615 | 4,053 |
Proceeds from maturities, redemptions, and prepayments of: | ||
Debt securities available-for-sale | 543,719 | 822,494 |
Debt securities trading | 61,702 | 82,445 |
Other investments | 22,576 | 23,748 |
Derivatives, index options | 11,825 | 46,561 |
Purchases of: | ||
Debt securities available-for-sale | (145,243) | (807,484) |
Debt securities trading | (69,197) | (290,799) |
Equity securities | (799) | (900) |
Derivatives, index options | (39,575) | (39,762) |
Other investments | (55,232) | (112,389) |
Property, equipment, and other productive assets | (2,220) | (1,348) |
Net change in short-term investments | (3,884) | 0 |
Principal payments on mortgage loans | 21,846 | 23,076 |
Cost of mortgage loans acquired | (6,800) | (45,402) |
Decrease (increase) in policy loans | 2,137 | 263 |
Other (increases) decreases to funds withheld | 8,207 | (372) |
Net cash provided by (used in) investing activities | 473,333 | (239,379) |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts (Note 1) | 75,303 | 252,873 |
Return of account balances on universal life and annuity contracts (Note 1) | (722,477) | (628,900) |
Principal payments under finance lease obligation | (255) | (254) |
Net cash provided by (used in) financing activities | (647,429) | (376,281) |
Effect of foreign exchange (Note 1) | 11 | 439 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 25,470 | (383,485) |
Cash, cash equivalents, and restricted cash at beginning of period | 295,270 | 714,624 |
Cash, cash equivalents and restricted cash at end of period | 320,740 | 331,139 |
Cash paid during the period for: | ||
Interest | 56 | 56 |
Income taxes | 38,060 | 23,643 |
Noncash operating activities: | ||
Net deferral and amortization of sales inducements (Note 1) | (10,375) | (3,159) |
Establishment of funds withheld liability (Note 1) | 0 | 243,123 |
Deferred gain on reinsurance | $ 0 | $ 21,196 |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATION AND BASIS OF PRESENTATION | CONSOLIDATION AND BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete annual financial statements. Except for the retroactive adoption of a required change in accounting standard as discussed below and as further described in Note (2) New Accounting Pronouncements , in the opinion of management, the accompanying Condensed Consolidated Financial Statements contain all adjustments necessary to present fairly the financial position and results of operations of National Western Life Group, Inc. ("NWLGI") and its wholly owned subsidiaries (collectively, the “Company”), on a basis consistent with the prior audited consolidated financial statements, as of September 30, 2023, and for the three and nine months ended September 30, 2023 and September 30, 2022. Certain reclasses of prior year balances have been made for comparison. The results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year. It is recommended that these Condensed Consolidated Financial Statements, excluding balances affected by the adoption of Accounting Standards Update (ASU) 2018-12 noted below, be read in conjunction with the audited consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022 which is accessible free of charge through the Company's internet site at www.nwlgi.com or the Securities and Exchange Commission internet site at www.sec.gov . Except for balances affected by the adoption of ASU 2018-12 noted below, the Condensed Consolidated Balance Sheet at December 31, 2022 has been derived from the audited consolidated financial statements as of that date. The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western Life Insurance Company ("NWLIC" or "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. The preparation of financial statements in accordance with GAAP requires 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 Condensed Consolidated Financial Statements include: (1) liabilities for future policy obligations and market risk 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 reinsurance recoverables, and (8) commitments and contingencies. As a result of executing a funds withheld coinsurance agreement at December 31, 2020, the Company implemented accounting policies related to trading debt securities and the embedded derivative on reinsurance in its financial statements. Trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreements to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Condensed Consolidated Financial Statements at their fair values with changes in their fair values reflected as a component of Net investment income in the Condensed 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 Condensed Consolidated Statements of Cash Flows. Under the terms of a coinsurance funds withheld agreement, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurer 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 balance reported on the Condensed Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in Net investment income in the Condensed Consolidated Statements of Earnings. On July 27, 2022, National Western entered into a Funds Withheld Coinsurance Agreement with Aspida Life Re Ltd. (“Aspida"), a reinsurer organized under the Laws of Bermuda. Pursuant to this 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 initial amount of statutory reserve liabilities ceded by the Company to Aspida under the agreement approximated $250.0 million. In addition, pursuant to the 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 agreement to provide reinsurance pursuant to the agreement, the Company transferred into a funds withheld account permitted assets approximating the initial statutory reserve liabilities ceded to Aspida. In accordance with the agreement and in order to provide additional security for Aspida’s obligations under the agreement, 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. The table below shows the net unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and September 30, 2022. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Other net investment gains $ 231 (163) 344 5,061 Earnings before Federal income taxes 231 (163) 344 5,061 Federal income taxes 48 (34) 72 1,063 Net earnings $ 183 (129) 272 3,998 Restatement of prior period consolidated financial statements as a result of adopting ASU 2018-12 As a result of the adoption of Accounting Standards Update 2018-12 Financial Services - Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI" or "ASU 2018-12"), the results and related disclosures for the comparative 2022 periods presented in this Form 10-Q were recast to be presented as if the requirements of LDTI had been in effect during those periods. Implementation of LDTI affected various line items in each condensed consolidated financial statement. Refer to Note (2) New Accounting Policies for more details about the new guidance and a summary of the restated balances. The Company adopted ASU 2018-12 guidance effective January 1, 2023 using the modified retrospective transaction method, where permitted, for changes in the liability for future policy benefits and deferred policy acquisition costs and related balances, and the retrospective transition method for market risk benefits. The transition date for restatement was January 1, 2021 and amounts previously reported were retroactively restated, including those amounts shown for the three and nine months ended September 30, 2022, and as of December 31, 2022. The following tables present amounts as previously reported, the effect of adoption of the guidance under ASU 2018-12, and the resulting adjusted amounts reported in interim Condensed Consolidated Financial Statements included herein. The tables include only those line items impacted by restatement. Restated Lines of Condensed Consolidated Balance Sheet: December 31, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Assets: Deferred policy acquisition costs $ 909,786 (245,904) 663,882 Deferred sales inducements 114,399 (29,096) 85,303 Value of business acquired 146,494 (7,999) 138,495 Market risk benefits asset — 48,759 48,759 Deferred federal income tax asset 57,867 (48,835) 9,032 Amounts recoverable from reinsurer, net of allowance for credit losses 1,723,347 (34,559) 1,688,788 Other assets 110,339 352 110,691 Total Assets 13,100,227 (317,282) 12,782,945 Liabilities: Future policy benefits: Universal life and annuity contracts 8,498,684 (8,498,684) — Traditional life reserves 919,650 (919,650) — Liability for policyholder account balances — 7,661,785 7,661,785 Additional liability for benefits in excess of account balance — 148,708 148,708 Liability for future policy benefits — 900,146 900,146 Market risk benefits liability — 215,777 215,777 Other liabilities 166,557 (9,075) 157,482 Total liabilities 11,093,016 (500,993) 10,592,023 Stockholders' Equity: Accumulated other comprehensive income (loss) (416,397) (61,822) (478,219) Retained earnings 2,381,856 245,533 2,627,389 Total stockholders' equity 2,007,211 183,711 2,190,922 Total liabilities and stockholders' equity 13,100,227 (317,282) 12,782,945 Interim Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 36,063 (2,253) 33,810 Traditional life and SPIAWLC premiums 21,639 698 22,337 Other revenues 5,922 (161) 5,761 Total Revenues 143,873 (1,716) 142,157 Benefits and Expenses: Life and other policy benefits 37,356 (9,588) 27,768 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (33,571) (33,571) Amortization of deferred transaction costs 31,679 (10,066) 21,613 Universal life and annuity contract interest 17,548 24,687 42,235 Total benefit and expenses 115,970 (18,711) 97,259 Federal income taxes 6,142 3,568 9,710 Net earnings 21,761 13,427 35,188 Basic earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Diluted earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 101,406 (1,978) 99,428 Traditional life and SPIAWLC premiums 65,619 5,500 71,119 Other revenues 17,297 (161) 17,136 Total Revenues 395,329 3,361 398,690 Benefits and Expenses: Life and other policy benefits 114,432 (26,951) 87,481 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (150,069) (150,069) Amortization of deferred transaction costs 88,451 (20,902) 67,549 Universal life and annuity contract interest (11,058) 13,524 2,466 Total benefit and expenses 284,115 (174,571) 109,544 Federal income taxes 22,504 37,365 59,869 Net earnings 88,710 140,567 229,277 Basic earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Diluted earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Interim Condensed Consolidated Statement of Changes in Stockholders' Equity: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at June 30, 2022 $ 2,348,935 227,306 2,576,241 Net earnings 21,761 13,427 35,188 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at June 30, 2022 (287,430) (156,779) (444,209) Other comprehensive income (loss), net of income tax (181,077) (106,132) (287,209) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at June 30, 2022 — 96,167 96,167 Impact of discount rate changes during the period — 51,262 51,262 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at June 30, 2022 5,391 932 6,323 Change in translation adjustments during period 48 3 51 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at June 30, 2022 (295,138) (59,680) (354,818) Change during period (179,894) (54,867) (234,761) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at June 30, 2022 2,095,549 167,626 2,263,175 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at December 31, 2021 $ 2,281,986 100,166 2,382,152 Net earnings 88,710 140,567 229,277 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at December 31, 2021 226,220 140,889 367,109 Other comprehensive income (loss), net of income tax (694,727) (403,800) (1,098,527) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at December 31, 2021 — (60,121) (60,121) Impact of discount rate changes during the period — 207,550 207,550 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at December 31, 2021 5,100 928 6,028 Change in translation adjustments during period 339 7 346 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at December 31, 2021 215,953 81,696 297,649 Change during period (690,985) (196,243) (887,228) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at December 31, 2021 2,539,691 181,862 2,721,553 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Interim Condensed Consolidated Statement of Cash Flows: Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Cash flows from operating activities: Net earnings $ 88,710 140,567 229,277 Adjustments to reconcile net earnings to net cash from operating activities: Universal life and annuity contract interest (11,058) 13,524 2,466 (Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired 47,694 (23,396) 24,298 (Increase) decrease in reinsurance recoverable 81,454 61,012 142,466 (Increase) decrease in other assets (333) 22 (311) Increase (decrease) in liabilities for future policy benefits 93,088 (83,024) 10,064 Increase (decrease) in market risk benefits liability — (149,083) (149,083) Increase (decrease) in deferred Federal income tax 15,658 37,365 53,023 Increase (decrease) in other liabilities (15,347) 159 (15,188) Net cash provided by (used in) operating activities 234,590 (2,854) 231,736 Cash flows from financing activities: Deposits to account balances for universal life and annuity contracts 258,248 (5,375) 252,873 Return of account balances on universal life and annuity contracts (637,119) 8,219 (628,900) Net cash provided by (used in) financing activities (379,125) 2,844 (376,281) Effect of foreign exchange 429 10 439 |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted None noted. Accounting pronouncements adopted Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI" or "ASU 2018-12"). 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. On January 1, 2023, the Company adopted the requirements of the new standard, using the modified retrospective approach for market risk benefits, the liability for future policy benefits, and deferred policy acquisition costs and related balances, such that those balances were adjusted to conform to ASU 2018-12 as of January 1, 2021, the transition date. The following table summarizes the restated Deferred policy acquisition costs ("DPAC") and Deferred sales inducements ("DSI") balances as of the transition date, January 1, 2021, due to the adoption of ASU 2018-12. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred policy acquisition costs: Balance, December 31, 2020 $ 4,014 96,513 13,399 157,186 103,179 7,789 Removal of shadow balances in Accumulated other comprehensive income (loss) — 47,620 — 27,076 239,099 — Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred sales inducements: Balance, December 31, 2020 $ — — — — 43,845 — Removal of shadow balances in Accumulated other comprehensive income (loss) — — — — 52,533 — Adjusted balance, January 1, 2021 $ — — — — 96,378 — The following table summarizes restated DPAC and DSI balances by product line in the Consolidated Balance Sheet as of January 1, 2021. DPAC Balances DSI Balances (In thousands) Domestic traditional life $ 4,014 — Domestic universal life 144,133 — International traditional life 13,399 — International universal life 184,262 — Annuities, excluding SPIAs with life contingencies 342,278 96,378 ONL & Affiliates 7,789 — Balance Sheet balance as of January 1, 2021 $ 695,875 96,378 A table presenting the change in Value of business acquired (VOBA) between December 31, 2020 and January 1, 2021 for the adoption of ASU 2018-12 is not included as VOBA is not impacted by shadow balance accounting. However, the method of recognizing amortization expense of VOBA in the Condensed Consolidated Statements of Earnings subsequent to January 1, 2021 has changed consistent with the method of determining amortization expense for DPAC and DSI balances. Refer to Note (5) Deferred Transaction Costs for further information concerning amortization of Deferred Transaction Costs balances effected by the adoption of ASU 2018-12. The following table summarizes the restated Liability for policyholder account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Universal life and annuity contracts balance, December 31, 2020 $ 1,267,764 740,839 7,026,713 Transfer of balances to Additional liabilities in excess of account balance (45,136) (63,046) (11,192) Transfer of balances to Liability for future policy benefits 66 107 (200,894) Transfer of balances to Market risk benefits — — (205,611) Change in embedded derivative on reserves — — (131,573) Liability for policyholder account balances, January 1, 2021 1,222,694 677,900 6,477,443 Less reinsurance recoverable — — (1,677,898) Adjusted balance, January 1, 2021, net of reinsurance $ 1,222,694 677,900 4,799,545 The following table summarizes the Additional liability in excess of account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, December 31, 2020 $ — — — Transfer of balances from universal life ("UL") and annuity contracts 45,136 63,046 11,192 Adjusted balance, January 1, 2021 45,136 63,046 11,192 Less reinsurance recoverable — — (11,192) Adjusted balance, January 1, 2021, net of reinsurance $ 45,136 63,046 — The following table summarizes the restated Liability for future policy benefits balance as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Traditional life reserve balance, December 31, 2020 $ 56,894 70,426 2,350 768,433 Transfer of balances from UL and annuity contracts (66) (107) 200,894 — Change in discount rate assumptions 36,479 26,131 37,390 86,016 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 7,937 — — — Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability — — (3,160) — Other Adjustments 1,163 (1,048) 653 12,403 Adjustment for removal of related balances in accumulated other comprehensive income — — — — Liability for future policy benefit balance, January 1, 2021 102,407 95,402 238,127 866,852 Less reinsurance recoverable (13,680) (607) (238,127) (33,731) Adjusted balance, January 1, 2021, net of reinsurance $ 88,727 94,795 — 833,121 Refer to Note (6) Policyholder Obligations for further information. The following table summarizes the Market risk benefits liability balance as of January 1, 2021 for the adoption of ASU 2018-12. (In thousands) Balance, December 31, 2020 $ — Transfer of balances from UL and annuity contracts 205,611 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 95,990 Adjustment for the cumulative effect of changes in the instrument-specific credit risk — Total adjustment for the difference between carrying amount and fair value 95,990 Adjusted balance, January 1, 2021 301,601 Less reinsurance recoverable (73,651) Adjusted balance, January 1, 2021, net of reinsurance $ 227,950 Refer to Note (7) Market Risk Benefits for further information. The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheet as of January 1, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 102,407 — Domestic universal life 1,222,694 45,136 — — International traditional life — — 95,402 — International universal life 677,900 63,046 — — SPIAs with life contingencies — — 238,127 — Annuities, excluding SPIAs with life contingencies 6,477,443 11,192 — 301,601 ONL & Affiliates — — 866,852 — Balance Sheet balances as of January 1, 2021 $ 8,378,037 119,374 1,302,788 301,601 The following table presents the effect of the transition adjustment, net of foreign exchange and deferred tax adjustments, on total equity for the adoption of ASU 2018-12 as of January 1, 2021. January 1, 2021 Retained Earnings Accumulated Other Comprehensive Income Total (In thousands) Liability for future policy benefits $ (9,650) (112,734) (122,384) Liability for policyholder account balances 303,503 — 303,503 Additional liability for excess death/annuitization benefits (85,463) — (85,463) Deferred policy acquisition costs — 247,897 247,897 Deferred sales inducements — 41,501 41,501 Market risk benefits (180,080) — (180,080) Total $ 28,310 176,664 204,974 The net transition adjustment for the Liability for future policy benefits is due to the difference in the discount rate used previously and the discount rate used for the adoption of ASU 2018-12 at January 1, 2021. The transition adjustment for DPAC and DSI removed the shadow adjustments pertaining to unrealized investment gains/(losses) previously required to be allocated from Accumulated Other Comprehensive Income (Loss). The transition adjustment for Market risk benefits is the difference between reporting certain contracts and contract features at fair value under ASU 2018-12 as opposed to the carrying amount previously required under GAAP. Prior to the adoption of ASU 2018-12, VOBA and Cost of Reinsurance (COR) balances were amortized consistent with the methodologies employed for amortizing DPAC and DSI balances. Although not otherwise impacted by ASU 2018-12, the Company elected to continue using the amortization method consistent with that used for amortizing DPAC and DSI balances after the adoption of the new accounting standard. VOBA and COR balances did not have shadow accounting requirements under GAAP prior to the adoption of ASU 2018-12 and consequently did not have a transition adjustment. The following tables summarize restated DPAC, DSI, and VOBA balances as of December 31, 2021 and the changes in these balances subsequent to the January 1, 2021 transition date. The balances as of December 31, 2021 establish the beginning balances for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Policy Acquisition Costs: Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Capitalization additions 19 33,447 — 1,072 38,836 4,176 Amortization (585) (9,265) (984) (17,666) (40,187) (676) Experience adjustment — (567) — (112) 970 — Adjusted balance, December 31, 2021 $ 3,448 167,748 12,415 167,556 341,897 11,289 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Sales Inducements: Adjusted balance, January 1, 2021 $ — — — — 96,378 — Capitalization additions — — — — 18,117 — Amortization — — — — (11,775) — Experience adjustment — — — — 256 — Adjusted balance, December 31, 2021 $ — — — — 102,976 — ONL & Affiliates (In thousands) Value of Business Acquired: Balance, January 1, 2021 $ 162,968 Capitalization additions — Amortization (13,560) Experience adjustment — Balance, December 31, 2021 $ 149,408 The following table summarizes restated DPAC, DSI, and VOBA balances in the Consolidated Balance Sheet as of December 31, 2021. DPAC DSI VOBA (In thousands) Domestic traditional life $ 3,448 — — Domestic universal life 167,748 — — International traditional life 12,415 — — International universal life 167,556 — — SPIAs with life contingencies — — — Annuities, excluding SPIAs with life contingencies 341,897 102,976 — ONL & Affiliates 11,289 — 149,408 Balance Sheet balances as of December 31, 2021 $ 704,353 102,976 149,408 The following table summarizes the restated Liability for policyholder account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 $ 1,222,694 677,900 6,477,443 Issuances — — — Premiums received 225,349 46,147 430,846 Policy charges (76,147) (68,800) (28,643) Surrenders and withdrawals (47,483) (47,644) (580,269) Benefit payments (25,418) (2,040) (207,302) Interest credited 89,508 36,902 155,783 Other 23,555 5,121 (86,558) Adjusted balance, December 31, 2021 1,412,058 647,586 6,161,300 Less reinsurance recoverable — — (1,458,076) Adjusted balance, December 31, 2021 net of reinsurance $ 1,412,058 647,586 4,703,224 The following table summarizes the restated Additional liability in excess of account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 net of reinsurance $ 45,136 63,046 — Beginning balance before shadow reserve adjustments 45,136 63,046 11,192 Effect of changes in cash flow ("CF") assumptions 7,061 (14,524) — Effect of actual variances from expected experience — — 1,512 Adjusted beginning of year balance: 52,197 48,522 12,704 Issuances — — — Interest accrual 4,767 3,264 459 Assessments collected 14,775 8,304 749 Benefit payments (17,687) (10,565) (1,198) Derecognition (lapses and withdrawals) 45 (1,189) 4 Ending balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of shadow reserve adjustments — — — Adjusted balance, December 31, 2021 54,097 48,336 12,718 Less: Reinsurance recoverable — — (12,718) Adjusted balance, December 31, 2021 net of reinsurance $ 54,097 48,336 — The following table summarizes the restated Liability for future policy benefits balance as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Adjusted balance, January 1, 2021 $ 102,407 95,402 238,127 866,852 Beginning balance at original discount rate 65,928 69,270 200,737 780,836 Effect of changes in CF assumptions — — (316) — Effect of actual variances from expected experience (525) (252) 5,724 114 Adjusted beginning of year balance: 65,403 69,018 206,145 780,950 Issuances — — 39,338 227 Interest accrual 4,058 4,391 7,076 23,801 Net premium collected 16 5,602 — 35,640 Benefit payments (6,538) (17,221) (22,173) (56,616) Derecognition (lapses and withdrawals) — — (6,840) — Other 597 2,608 358 (770) Ending balance at original discount rate 63,536 64,398 223,904 783,232 Effect of changes in discount rate 26,933 17,186 20,646 34,913 Adjusted balance, December 31, 2021 90,469 81,584 244,550 818,145 Less reinsurance recoverable (13,841) (578) (211,912) (31,476) Adjusted balance, December 31, 2021 net of reinsurance $ 76,628 81,006 32,638 786,669 The following table summarizes the net Market risk benefit liability balance as of December 31, 2021 and the changes in this net balance subsequent to the January 1, 2021 transition date. The net balance as of December 31, 2021 establishes the beginning net balance for reporting the results for the nine months ended September 30, 2022. (In thousands) Adjusted balance, January 1, 2021 $ 301,601 Balance, beginning of year, before effect of changes in instrument-specific credit risk: 301,601 Issuances 3,184 Interest accrual — Attributed fees collected 38,182 Benefit payments — Effect of changes in interest rates (36,112) Effect of changes in equity markets — Effect of changes in equity index volatility — Actual policyholder behavior different from expected behavior (7,022) Effect of changes in future expected policyholder behavior — Effect of changes in other future expected assumptions — Balance, end of year, before effect of changes in instrument-specific credit risk 299,833 Effect of changes in the instrument-specific credit risk — Adjusted balance, December 31, 2021 299,833 Less reinsurance recoverable, end of year (68,238) Adjusted balance, December 31, 2021 net of reinsurance $ 231,595 The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheets as of December 31, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 90,469 — Domestic universal life 1,412,058 54,097 — — International traditional life — — 81,584 — International universal life 647,586 48,336 — — SPIAs with life contingencies — — 244,550 — Annuities, excl. SPIAs with life contingencies 6,161,300 12,718 — 299,833 ONL & Affiliates — — 818,145 — Balances as of December 31, 2021 $ 8,220,944 115,151 1,234,748 299,833 Other Accounting Pronouncements 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. 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. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITYPrior to his death on November 7, 2023, Robert L. Moody, Sr., the Chairman Emeritus of the Company, was the controlling stockholder of the Company because he controlled, through the Moody Revocable Trust, 99.0% of the total outstanding shares of the Company's Class B Common Stock as of September 30, 2023. Under the terms of the Moody Revocable Trust, the shares of Class B Common Stock held by the Moody Revocable Trust pass to Three R Trust, a trust created by Robert L. Moody Sr. for the benefit of his children and their lineal descendants. The trustee of the Moody Revocable Trust, however, is authorized to retain trust properties, including the shares of Class B Common Stock, for as long as is necessary to administer the trust and Robert L. Moody Sr.'s estate, including the payment of debts, expenses and taxes. Therefore, upon Robert L. Moody, Sr.'s death, Three R Trust acquired beneficial ownership of the shares of Class B Common Stock held by the Moody Revocable Trust. However, legal title will remain with the Moody Revocable Trust for the foreseeable future. Therefore, until the transfer of legal title to Three R Trust, Moody National Bank (as trustee of the Moody Revocable Trust) retains the voting power with respect to those shares of Class B Common Stock. Holders of the Company's Class A Common Stock elect one-third of the Board of Directors of the Company, 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 limited to 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. As the sole owner of National Western, all dividends declared by National Western are payable entirely to NWLGI and are eliminated in consolidation. 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 of National Western 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. National Western did not declare or pay cash dividends to NWLGI during the nine months ended September 30, 2023. Dividends in the amount of $2.0 million were paid to NWLGI in the nine months ended September 30, 2022. 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 10.0% 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 nine months ended September 30, 2023 and 2022. NIS is restricted under FINRA rules as to the 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 amount at December 31, 2022 was $13.6 million. During the nine months ended September 30, 2023, NIS declared and paid a $12.0 million dividend to NWLGI as its sole stock owner. No dividends were declared or paid in the nine months ended September 30, 2022. All dividends declared and paid by NIS are eliminated in consolidation. The Company entered into an agreement and plan of merger on October 8, 2023 with S. USA Life Insurance Company Inc. and PGH Merger Inc. At the effective time of the merger, each issued and outstanding share of Class A Common Stock and Class B Common Stock will be converted into the right to receive $500.00 per share in cash, without interest. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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. The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. As previously described in Note (1) Consolidation and Basis of Presentation and Note (2) New Accounting Pronouncements , the results for the three and nine months ended September 30, 2022 have been restated for the adoption of Accounting Standards Update 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts. Accordingly, the earnings per share information presented in the following table for the three and nine months ended September 30, 2022 has been updated and differs from that previously reported. 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). Three Months Ended September 30, 2023 2022 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 64,725 35,188 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 64,725 35,188 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 62,895 1,830 34,193 995 Net earnings $ 62,895 1,830 34,193 995 Denominator: Basic earnings per share - weighted-average shares 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 Basic earnings per share $ 18.30 9.15 9.95 4.98 Diluted earnings per share $ 18.30 9.15 9.95 4.98 Nine Months Ended September 30, 2023 2022 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 106,663 229,277 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 106,663 229,277 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 103,647 3,016 222,793 6,484 Net earnings $ 103,647 3,016 222,793 6,484 Denominator: Basic earnings per share - weighted-average shares 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 Basic earnings per share $ 30.17 15.08 64.84 32.42 Diluted earnings per share $ 30.17 15.08 64.84 32.42 |
Deferred Transaction Costs
Deferred Transaction Costs | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Charges, Insurers [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"). 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 (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 which are recorded as deferred sales inducements ("DSI"). Prior to the adoption of LDTI, DPAC and DSI balances were amortized in relation to the present value of expected gross profits for interest sensitive universal life and annuity products, and over the premium paying period for nonparticipating traditional life products proportional to the ratio of annual premium revenues to total anticipated premium revenues. Under LDTI guidance, deferred policy acquisition costs and deferred sales inducements are amortized on a constant level cohort basis over the expected term of the contracts approximating a straight-line amortization on an individual contract basis. Contracts are grouped consistent with the groupings used to estimate the liability for future policy benefits. The constant-level basis for amortizing DAC is generally in proportion to the initial face amount of life insurance in force for life insurance policies, in proportion to deposits for deferred annuity contracts, and in proportion to annual benefit payments for annuity contracts in payout mode. The Company is required to 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 . Current period amortization of DPAC and DSI is impacted by changes in actual insurance in force during the period as well as changes in future assumptions as of the end of each reporting period, where applicable. Assumptions used for DPAC are consistent with those used in estimating the liability for future policy benefits (or any other related balance) for the corresponding contracts. Determining the level of aggregation and actuarial assumptions used in projecting in force terminations requires judgment. 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 VOBA consistent with the recoverability analysis performed for DPAC and DSI balances. Under LDTI guidance, VOBA is amortized on the same basis used for DPAC and DSI balances. The Cost of Reinsurance ("COR") asset represents the amount of assets transferred at the closing date of a 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 original COR balance of $102.8 million is amortized commensurate with the runoff of the ceded block of funds withheld business and the amortization expense is reported in the Condensed Consolidated Statements of Earnings. Deferred Policy Acquisition Costs - A summary of information related to DPAC is provided in the following table. Nine Months Ended September 30, 2023 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 3,159 176,034 11,151 152,287 306,489 14,762 Capitalization additions 11 11,646 — 394 5,458 3,172 Amortization (213) (9,470) (1,046) (11,176) (26,241) (644) Experience adjustment 3 (102) 22 (25) 161 5 Balance, end of period $ 2,960 178,108 10,127 141,480 285,867 17,295 Nine Months Ended September 30, 2022 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 3,448 167,748 12,415 167,556 341,897 11,289 Capitalization additions 14 19,884 — 113 15,010 3,198 Amortization (232) (11,924) (956) (11,648) (24,591) (552) In force ceded — — — — (19,622) — Experience adjustment — 29 — (6) 42 — Balance, end of period $ 3,230 175,737 11,459 156,015 312,736 13,935 The following table summarizes DPAC balances by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ 2,960 3,230 Domestic universal life 178,108 175,737 International traditional life 10,127 11,459 International universal life 141,480 156,015 Annuities, excl. SPIAs with life contingencies 285,867 312,736 ONL & Affiliates 17,295 13,935 Total $ 635,837 673,112 Deferred Sales Inducements - A summary of information related to DSI is provided in the following tables. Nine Months Ended September 30, 2023 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ — — — — 85,303 — Capitalization additions — — — — (4,199) — Amortization — — — — (6,212) — Experience adjustment — — — — 36 — Balance, end of period $ — — — — 74,928 — Nine Months Ended September 30, 2022 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ — — — — 102,976 — Capitalization additions — — — — 4,901 — Amortization — — — — (8,091) — In force ceded — — — — (11,219) — Experience adjustment — — — — 31 — Balance, end of period $ — — — — 88,598 — The following table summarizes DSI balances by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ — — Domestic universal life — — International traditional life — — International universal life — — SPIAs with life contingencies — — Annuities, excluding SPIAs with life contingencies 74,928 88,598 ONL & Affiliates — — Total $ 74,928 88,598 Value of Business Acquired - A summary of information related to VOBA is provided in the following table. September 30, 2023 2022 (In thousands) Balance, beginning of period $ 138,495 149,408 Amortization (6,523) (9,518) Experience adjustment 32 — Balance as of end of period $ 132,004 139,890 Estimated future amortization of VOBA, net of interest, is as follows as of September 30, 2023: (In thousands) Remainder of 2023 $ 2,101 2024 8,141 2025 7,734 2026 7,326 2027 6,942 Cost of Reinsurance - A summary of information related to COR is provided in the following table. Nine Months Ended September 30, 2023 2022 SPIAs WLC Annuities excl. SPIAs WLC SPIAs WLC Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 11,897 66,431 12,591 77,095 Additions — — — — Amortization (604) (7,779) (503) (7,689) Experience Adjustment — — — — Balance as of end of period $ 11,293 58,652 12,088 69,406 The following table summarizes the COR balance by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) SPIAs with life contingencies $ 11,293 12,088 Annuities, excl. SPIAs with life contingencies 58,652 69,406 Total $ 69,945 81,494 |
Policyholder Obligations
Policyholder Obligations | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
POLICYHOLDER OBLIGATIONS | POLICYHOLDER OBLIGATIONSFor 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 embedded derivatives. 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. A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Under GAAP, the liability for future policy benefits on traditional life products has been calculated using assumptions as to future mortality and withdrawals based on Company experience. Contracts are grouped into cohorts by product features and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions quarterly and updates the net premium ratio used to calculate the liability each time the assumptions are changed. Each quarter, the Company updates its estimate of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before the updating of cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss and is presented as a separate component of benefit expense in the Condensed Consolidated Statements of Earnings. In subsequent periods, the revised net premiums are used to measure the liability for future policy benefits, subject to future revisions. The discount rate assumption is an equivalent single rate that is derived based on A-credit-rated fixed-income instruments with similar duration to the liability. The Company selects fixed-income instruments that have been A-rated by one of the major credit rating agencies, such as Moody's, Standard & Poor's, or Fitch. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A-credit-rated fixed-income instruments, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. 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 have been deferred and are being recognized in income over the period benefited using the same assumptions and factors used to amortize deferred acquisition costs. In both 2022 and 2023, the Company updated the net premium ratio for actual historical experience each quarter. Future cash flow assumptions are reviewed each quarter and are updated in the third quarter. Liability for Policyholder Account Balances - The Company recognizes a liability for policyholder account balances, which includes universal life products and annuities other than single premium immediate annuities with life contingencies. The following tables summarize balances and changes in the Liability for policyholder account balances. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,409,471 575,096 5,677,218 Premiums received 85,794 27,508 85,174 Policy charges (49,789) (56,523) (22,595) Surrenders and withdrawals (50,399) (37,170) (446,357) Benefit payments (21,739) (1,984) (141,361) Interest credited 20,509 7,004 41,292 Change in embedded derivative 26,014 4,203 (36,488) Other 2,218 (614) (18,877) Balance, end of period 1,422,079 517,520 5,138,006 Less reinsurance recoverable — — (1,135,906) Ending balance, net of reinsurance $ 1,422,079 517,520 4,002,100 Weighted-average crediting rate 2.14 % 1.62 % 0.94 % Net amount at risk $ 1,614 6,443 1,208,274 Cash surrender value $ 1,209,991 485,660 4,883,247 Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,412,058 647,586 6,161,300 Issuances — — — Premiums received 120,956 31,738 196,463 Policy charges (53,411) (52,904) (22,259) Surrenders and withdrawals (41,785) (32,791) (369,437) Benefit payments (16,428) (1,550) (148,832) Interest credited 37,863 13,772 57,969 Change in embedded derivative (54,767) (14,161) (4,515) Other 371 1,476 (15,216) Balance, end of period 1,404,857 593,166 5,855,473 Less reinsurance recoverable — — (1,290,600) Ending balance, net of reinsurance $ 1,404,857 593,166 4,564,873 Weighted-average crediting rate 4.13 % 2.97 % 1.24 % Net amount at risk $ 1,638 7,318 1,111,573 Cash surrender value $ 1,228,130 555,903 5,473,356 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 1,422,079 1,404,857 International universal life 517,520 593,166 Annuities excl. SPIAs with life contingencies 5,138,006 5,855,473 Unearned revenue reserve 1,286 5,885 Total $ 7,078,891 7,859,381 The following table presents the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. September 30, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 1,810,654 1,901 17,311 116,475 1,946,341 2.00% - 2.99% 522,451 7,940 88,704 48,025 667,120 3.00% - 3.99% 423,674 37,995 2,691 27 464,387 4.00% and greater 385,534 — — 37 385,571 Total $ 3,142,313 47,836 108,706 164,564 3,463,419 September 30, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 2,044,059 2,104 90,636 124,486 2,261,285 2.00% - 2.99% 509,776 7,997 104,561 — 622,334 3.00% - 3.99% 505,906 44,369 2,868 26 553,169 4.00% and greater 410,007 — — 35 410,042 Total $ 3,469,748 54,470 198,065 124,547 3,846,830 Additional Liability for Benefits in Excess of Account Balances And Liability for Future Policy Benefits - The following table provides the balances and changes in insurance liabilities related to universal life and annuities that are in addition to the account balance, including annuitization benefits and death or other insurance benefits. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 63,804 46,402 38,502 Beginning balance before shadow reserve adjustments 63,804 46,402 38,502 Effect of changes in cash flow assumptions 1,870 6,055 (1,759) Effect of actual variances from expected experience 5,898 (736) 625 Adjusted beginning of period balance 71,572 51,721 37,368 Issuances — — — Interest accrual 950 340 1,093 Assessments collected 15,875 7,546 (98) Benefit payments (18,318) (7,610) (1,343) Derecognition (lapses and withdrawals) — — — Other (39) (1,002) (15) Ending balance before shadow reserve adjustments 70,040 50,995 37,005 Effect of shadow reserve adjustments — — — Balance, end of period 70,040 50,995 37,005 Less reinsurance recoverable, end of period — — (37,005) Net additional liability, after reinsurance recoverable $ 70,040 50,995 — Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 54,097 48,336 12,718 Beginning balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of changes in cash flow assumptions 3,844 (18) 24,599 Effect of actual variances from expected experience 5,493 7,118 1,843 Adjusted beginning of period balance 63,434 55,436 39,160 Issuances — — — Interest accrual 1,993 1,154 589 Assessments collected 13,436 6,011 (69) Benefit payments (16,031) (15,768) (1,146) Derecognition (lapses and withdrawals) — — — Other (30) 524 (9) Ending balance before shadow reserve adjustments 62,802 47,357 38,525 Effect of shadow reserve adjustments — — — Balance, end of period 62,802 47,357 38,525 Less reinsurance recoverable, end of period — — (38,525) Net additional liability, after reinsurance recoverable $ 62,802 47,357 — The following table summarizes the Additional liability for benefits in excess of account balance by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 70,040 62,802 International universal life 50,995 47,357 Annuities 37,005 38,525 Total $ 158,040 148,684 The following table provides the amount of gross assessments and interest expense related to annuitization and death or other insurance benefits recognized in the Condensed Consolidated Statements of Earnings related to additional insurance liabilities. Gross Assessments Interest Expenses Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic universal life $ 45,525 39,029 950 1,993 International universal life 30,401 25,005 340 1,154 Annuities (127) (2,952) 1,093 589 Total $ 75,799 61,082 2,383 3,736 The following tables summarize balances and changes in the Liability for future policy benefits balance for traditional life contracts and single premium immediate annuities with life contingencies. Nine Months Ended September 30, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,744 Beginning balance at original discount rate 660 35,906 — 494,961 Effect of changes in cash flow assumptions (325) 4,019 — 6,353 Effect of actual variances from expected experience 133 (1,139) — (3,726) Adjusted beginning of period balance 468 38,786 — 497,588 Issuances — — — 7,497 Interest accrual (19) 1,121 — 11,972 Net premium collected (132) (3,386) — (29,052) Ending balance at original discount rate 317 36,521 — 488,005 Effect of changes in discount rate assumptions (488) (3,364) — (109,489) Balance, end of period $ (171) 33,157 — 378,516 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,167 191,817 975,999 Beginning balance at original discount rate 62,839 100,976 215,637 1,293,523 Effect of changes in cash flow assumptions (824) 4,433 — 6,876 Effect of actual variances from expected experience (132) (3,872) 3,083 (3,273) Adjusted beginning of period balance 61,883 101,537 218,720 1,297,126 Issuances — — 9,005 7,340 Interest accrual 2,851 4,104 5,305 30,313 Benefit payments (3,825) (4,740) (16,752) (42,932) Derecognition (lapses and withdrawals) — — (5,032) — Other 114 (1,250) (322) (1,694) Ending balance at original discount rate 61,023 99,651 210,924 1,290,153 Effect of changes in discount rate assumptions 4,590 (5,637) (28,456) (377,110) Balance, end of period 65,613 94,014 182,468 913,043 Net liability for future policy benefits 65,784 60,857 182,468 534,527 Less reinsurance recoverable (12,665) (532) (152,949) (24,395) Net liability for future policy benefits, after reinsurance $ 53,119 60,325 29,519 510,132 Nine Months Ended September 30, 2022 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 395 50,123 — 340,287 Beginning balance at original discount rate 706 40,670 — 330,854 Effect of changes in cash flow assumptions — — — 169,179 Effect of actual variances from expected experience 109 (258) — 10,761 Adjusted beginning of period 815 40,412 — 510,794 Issuances — — — 6,217 Interest accrual 1 1,266 — 8,013 Net premium collected (62) (3,605) — (24,214) Ending balance at original discount rate 754 38,073 — 500,810 Effect of changes in discount rate assumptions (389) (2,697) — (57,403) Balance, end of period $ 365 35,376 — 443,407 Present value of expected future policy benefits Balance, beginning of period $ 90,864 131,707 244,551 1,158,431 Beginning balance at original discount rate 64,242 105,103 223,904 1,114,085 Effect of changes in cash flow assumptions — — 172 175,122 Effect of actual variances from expected experience (142) (2,098) 3,032 11,758 Adjusted beginning of year balance 64,100 103,005 227,108 1,300,965 Issuances — — 9,554 5,918 Interest accrual 2,946 4,321 5,440 25,989 Benefit payments (3,661) (3,658) (17,667) (44,116) Derecognition (lapses and withdrawals) — — (4,927) — Other 137 (349) — (95) Ending balance at original discount rate 63,522 103,319 219,508 1,288,661 Effect of changes in discount rate assumptions 6,238 (3,645) (27,724) (248,479) Balance, end of period 69,760 99,674 191,784 1,040,182 Net liability for future policy benefits 69,395 64,298 191,784 596,775 Less reinsurance recoverable (12,431) (553) (161,944) (26,239) Net liability for future policy benefits, after reinsurance $ 56,964 63,745 29,840 570,536 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ 65,784 69,395 International traditional life 60,857 64,298 SPIAs with life contingencies 182,468 191,784 ONL & Affiliates 534,527 596,775 Total $ 843,636 922,252 The following tables summarize the amount of revenue and interest related to traditional life contracts and single premium immediate annuities with life contingencies recognized in the Condensed Consolidated Statements of Earnings. Gross Premiums or Assessments Interest Expense Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic traditional life $ 2,295 2,476 2,870 2,945 International traditional life 9,110 10,061 2,983 3,055 SPIAs with life contingencies 1,151 5,683 5,305 5,440 ONL & Affiliates 56,797 57,711 18,341 17,976 Total $ 69,353 75,931 29,499 29,416 The following table provides the amount of undiscounted expected gross premiums and expected future benefits and expenses for traditional life contracts and single premium immediate annuities with life contingencies. September 30, 2023 2022 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 32,013 103,177 33,319 108,001 International traditional life 162,304 221,506 163,976 225,183 SPIAs with life contingencies — 281,949 — 291,505 ONL & Affiliates 1,411,244 2,272,002 953,990 1,704,224 Total $ 1,605,561 2,878,634 1,151,285 2,328,913 The following tables summarize the annualized actual experience and expected experience for mortality and lapses of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.84% 2.12% 1.32% 1.89% International traditional life 0.18% 0.41% 0.24% 0.37% Domestic universal life 1.68% 1.91% 1.11% 1.69% International universal life 0.27% 0.25% 0.27% 0.24% SPIAs with life contingencies 11.62% 12.14% 8.44% 8.74% Annuities excl. SPIAs with life contingencies 2.86% 2.61% 2.73% 2.67% ONL & Affiliates 1.05% 0.86% 0.94% 0.82% 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 4.36% 6.02% 6.91% 6.51% International traditional life 8.35% 7.75% 8.03% 7.92% Domestic universal life 5.68% 3.40% 4.74% 4.69% International universal life 11.94% 6.92% 8.39% 7.16% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 6.20% 4.27% 4.05% 4.24% ONL & Affiliates 4.24% 4.75% 3.90% 7.96% The following table provides the weighted-average durations in years of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. September 30, 2023 2022 Domestic traditional life 8.00 8.00 Domestic universal life 8.10 8.10 International traditional life 8.00 8.00 International universal life 8.10 8.10 SPIAs with life contingencies 8.00 8.00 Annuities excl. SPIAs with life contingencies 6.60 6.60 ONL & Affiliates 22.00 22.00 The following table provides the weighted-average interest rates for the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. Interest Accretion Rate Current Discount Rate September 30, September 30, 2023 2022 2023 2022 Domestic traditional life 6.73% 6.80% 5.60% 5.30% Domestic universal life 4.56% 0.98% 4.56% 0.98% International traditional life 5.16% 5.24% 5.60% 5.30% International universal life 1.93% 1.53% 1.93% 1.53% SPIAs with life contingencies 3.48% 3.36% 5.60% 5.30% Annuities excl. SPIAs with life contingencies 1.02% 0.93% 1.02% 0.93% ONL & Affiliates 3.25% 3.25% 6.15% 5.85% The Company realized actual-expected experience variances but made no changes to assumptions for the periods shown other than the interest rates employed for purposes of calculating discounted values. The following tables present the balances of and changes in market risk benefits associated with guaranteed minimum withdrawal benefits, guaranteed annuitization benefits, and guaranteed minimum death benefits. Nine Months Ended September 30, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 97,552 69,466 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 97,552 69,466 — Issuances 64 — — Interest accrual — — — Attributed fees collected 37,572 — — Benefit payments — — — Effect of changes in interest rates (25,485) (5,426) — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (1,304) — — Effect of changes in future expected policyholder behavior (173) — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 108,226 64,040 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 108,226 64,040 — Less reinsurance recoverable, end of period (2,874) (64,373) — Balance, end of period, net of reinsurance $ 105,352 (333) — Net amount at risk $ 1,082,774 125,500 — Weighted-average attained age of contract holders 69.6 67.8 0.0 Nine Months Ended September 30, 2022 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 231,859 67,974 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 231,859 67,974 — Issuances 420 — — Interest accrual — — — Attributed fees collected 37,587 — — Benefit payments — — — Effect of changes in interest rates (184,636) 1,292 — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (3,746) — — Effect of changes in future expected policyholder behavior — — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 81,484 69,266 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 81,484 69,266 — Less reinsurance recoverable, end of period 2,865 (69,650) — Balance, end of period, net of reinsurance $ 84,349 (384) — Net amount at risk $ 982,619 128,954 — Weighted-average attained age of contract holders 68.9 67.0 0.0 The following table summarizes Market risk benefits liability balances separately by amounts in an asset position and amounts in a liability position to the Market risk benefits liability amounts as of the end of the following periods. September 30, 2023 September 30, 2022 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 48,240 156,466 108,226 51,881 133,365 81,484 Guaranteed annuitization benefits — 64,040 64,040 — 69,266 69,266 Balance, end of period $ 48,240 220,506 172,266 51,881 202,631 150,750 For the periods shown, there were no notable changes made to the inputs to the fair value estimates of market risk benefit calculations other than the interest rates employed for purposes of calculating fair value. |
Market Risk Benefits
Market Risk Benefits | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
MARKET RISK BENEFITS | POLICYHOLDER OBLIGATIONSFor 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 embedded derivatives. 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. A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. Under GAAP, the liability for future policy benefits on traditional life products has been calculated using assumptions as to future mortality and withdrawals based on Company experience. Contracts are grouped into cohorts by product features and issue year. The liability is adjusted for differences between actual and expected experience. With the exception of the expense assumption, the Company reviews its historical and future cash flow assumptions quarterly and updates the net premium ratio used to calculate the liability each time the assumptions are changed. Each quarter, the Company updates its estimate of cash flows expected over the entire life of a group of contracts using actual historical experience and current future cash flow assumptions. These updated cash flows are used to calculate the revised net premiums and net premium ratio, which are used to derive an updated liability for future policy benefits as of the beginning of the current reporting period, discounted at the original contract issuance discount rate. This amount is then compared to the carrying amount of the liability as of that same date, before the updating of cash flow assumptions, to determine the current period change in liability estimate. This current period change in the liability is the liability remeasurement gain or loss and is presented as a separate component of benefit expense in the Condensed Consolidated Statements of Earnings. In subsequent periods, the revised net premiums are used to measure the liability for future policy benefits, subject to future revisions. The discount rate assumption is an equivalent single rate that is derived based on A-credit-rated fixed-income instruments with similar duration to the liability. The Company selects fixed-income instruments that have been A-rated by one of the major credit rating agencies, such as Moody's, Standard & Poor's, or Fitch. The discount rate assumption is updated quarterly and used to remeasure the liability at the reporting date, with the resulting change reflected in other comprehensive income. For liability cash flows that are projected beyond the duration of market-observable A-credit-rated fixed-income instruments, the Company uses the last market-observable yield level, and uses linear interpolation to determine yield assumptions for durations that do not have market-observable yields. 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 have been deferred and are being recognized in income over the period benefited using the same assumptions and factors used to amortize deferred acquisition costs. In both 2022 and 2023, the Company updated the net premium ratio for actual historical experience each quarter. Future cash flow assumptions are reviewed each quarter and are updated in the third quarter. Liability for Policyholder Account Balances - The Company recognizes a liability for policyholder account balances, which includes universal life products and annuities other than single premium immediate annuities with life contingencies. The following tables summarize balances and changes in the Liability for policyholder account balances. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,409,471 575,096 5,677,218 Premiums received 85,794 27,508 85,174 Policy charges (49,789) (56,523) (22,595) Surrenders and withdrawals (50,399) (37,170) (446,357) Benefit payments (21,739) (1,984) (141,361) Interest credited 20,509 7,004 41,292 Change in embedded derivative 26,014 4,203 (36,488) Other 2,218 (614) (18,877) Balance, end of period 1,422,079 517,520 5,138,006 Less reinsurance recoverable — — (1,135,906) Ending balance, net of reinsurance $ 1,422,079 517,520 4,002,100 Weighted-average crediting rate 2.14 % 1.62 % 0.94 % Net amount at risk $ 1,614 6,443 1,208,274 Cash surrender value $ 1,209,991 485,660 4,883,247 Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,412,058 647,586 6,161,300 Issuances — — — Premiums received 120,956 31,738 196,463 Policy charges (53,411) (52,904) (22,259) Surrenders and withdrawals (41,785) (32,791) (369,437) Benefit payments (16,428) (1,550) (148,832) Interest credited 37,863 13,772 57,969 Change in embedded derivative (54,767) (14,161) (4,515) Other 371 1,476 (15,216) Balance, end of period 1,404,857 593,166 5,855,473 Less reinsurance recoverable — — (1,290,600) Ending balance, net of reinsurance $ 1,404,857 593,166 4,564,873 Weighted-average crediting rate 4.13 % 2.97 % 1.24 % Net amount at risk $ 1,638 7,318 1,111,573 Cash surrender value $ 1,228,130 555,903 5,473,356 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 1,422,079 1,404,857 International universal life 517,520 593,166 Annuities excl. SPIAs with life contingencies 5,138,006 5,855,473 Unearned revenue reserve 1,286 5,885 Total $ 7,078,891 7,859,381 The following table presents the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. September 30, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 1,810,654 1,901 17,311 116,475 1,946,341 2.00% - 2.99% 522,451 7,940 88,704 48,025 667,120 3.00% - 3.99% 423,674 37,995 2,691 27 464,387 4.00% and greater 385,534 — — 37 385,571 Total $ 3,142,313 47,836 108,706 164,564 3,463,419 September 30, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 2,044,059 2,104 90,636 124,486 2,261,285 2.00% - 2.99% 509,776 7,997 104,561 — 622,334 3.00% - 3.99% 505,906 44,369 2,868 26 553,169 4.00% and greater 410,007 — — 35 410,042 Total $ 3,469,748 54,470 198,065 124,547 3,846,830 Additional Liability for Benefits in Excess of Account Balances And Liability for Future Policy Benefits - The following table provides the balances and changes in insurance liabilities related to universal life and annuities that are in addition to the account balance, including annuitization benefits and death or other insurance benefits. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 63,804 46,402 38,502 Beginning balance before shadow reserve adjustments 63,804 46,402 38,502 Effect of changes in cash flow assumptions 1,870 6,055 (1,759) Effect of actual variances from expected experience 5,898 (736) 625 Adjusted beginning of period balance 71,572 51,721 37,368 Issuances — — — Interest accrual 950 340 1,093 Assessments collected 15,875 7,546 (98) Benefit payments (18,318) (7,610) (1,343) Derecognition (lapses and withdrawals) — — — Other (39) (1,002) (15) Ending balance before shadow reserve adjustments 70,040 50,995 37,005 Effect of shadow reserve adjustments — — — Balance, end of period 70,040 50,995 37,005 Less reinsurance recoverable, end of period — — (37,005) Net additional liability, after reinsurance recoverable $ 70,040 50,995 — Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 54,097 48,336 12,718 Beginning balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of changes in cash flow assumptions 3,844 (18) 24,599 Effect of actual variances from expected experience 5,493 7,118 1,843 Adjusted beginning of period balance 63,434 55,436 39,160 Issuances — — — Interest accrual 1,993 1,154 589 Assessments collected 13,436 6,011 (69) Benefit payments (16,031) (15,768) (1,146) Derecognition (lapses and withdrawals) — — — Other (30) 524 (9) Ending balance before shadow reserve adjustments 62,802 47,357 38,525 Effect of shadow reserve adjustments — — — Balance, end of period 62,802 47,357 38,525 Less reinsurance recoverable, end of period — — (38,525) Net additional liability, after reinsurance recoverable $ 62,802 47,357 — The following table summarizes the Additional liability for benefits in excess of account balance by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 70,040 62,802 International universal life 50,995 47,357 Annuities 37,005 38,525 Total $ 158,040 148,684 The following table provides the amount of gross assessments and interest expense related to annuitization and death or other insurance benefits recognized in the Condensed Consolidated Statements of Earnings related to additional insurance liabilities. Gross Assessments Interest Expenses Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic universal life $ 45,525 39,029 950 1,993 International universal life 30,401 25,005 340 1,154 Annuities (127) (2,952) 1,093 589 Total $ 75,799 61,082 2,383 3,736 The following tables summarize balances and changes in the Liability for future policy benefits balance for traditional life contracts and single premium immediate annuities with life contingencies. Nine Months Ended September 30, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,744 Beginning balance at original discount rate 660 35,906 — 494,961 Effect of changes in cash flow assumptions (325) 4,019 — 6,353 Effect of actual variances from expected experience 133 (1,139) — (3,726) Adjusted beginning of period balance 468 38,786 — 497,588 Issuances — — — 7,497 Interest accrual (19) 1,121 — 11,972 Net premium collected (132) (3,386) — (29,052) Ending balance at original discount rate 317 36,521 — 488,005 Effect of changes in discount rate assumptions (488) (3,364) — (109,489) Balance, end of period $ (171) 33,157 — 378,516 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,167 191,817 975,999 Beginning balance at original discount rate 62,839 100,976 215,637 1,293,523 Effect of changes in cash flow assumptions (824) 4,433 — 6,876 Effect of actual variances from expected experience (132) (3,872) 3,083 (3,273) Adjusted beginning of period balance 61,883 101,537 218,720 1,297,126 Issuances — — 9,005 7,340 Interest accrual 2,851 4,104 5,305 30,313 Benefit payments (3,825) (4,740) (16,752) (42,932) Derecognition (lapses and withdrawals) — — (5,032) — Other 114 (1,250) (322) (1,694) Ending balance at original discount rate 61,023 99,651 210,924 1,290,153 Effect of changes in discount rate assumptions 4,590 (5,637) (28,456) (377,110) Balance, end of period 65,613 94,014 182,468 913,043 Net liability for future policy benefits 65,784 60,857 182,468 534,527 Less reinsurance recoverable (12,665) (532) (152,949) (24,395) Net liability for future policy benefits, after reinsurance $ 53,119 60,325 29,519 510,132 Nine Months Ended September 30, 2022 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 395 50,123 — 340,287 Beginning balance at original discount rate 706 40,670 — 330,854 Effect of changes in cash flow assumptions — — — 169,179 Effect of actual variances from expected experience 109 (258) — 10,761 Adjusted beginning of period 815 40,412 — 510,794 Issuances — — — 6,217 Interest accrual 1 1,266 — 8,013 Net premium collected (62) (3,605) — (24,214) Ending balance at original discount rate 754 38,073 — 500,810 Effect of changes in discount rate assumptions (389) (2,697) — (57,403) Balance, end of period $ 365 35,376 — 443,407 Present value of expected future policy benefits Balance, beginning of period $ 90,864 131,707 244,551 1,158,431 Beginning balance at original discount rate 64,242 105,103 223,904 1,114,085 Effect of changes in cash flow assumptions — — 172 175,122 Effect of actual variances from expected experience (142) (2,098) 3,032 11,758 Adjusted beginning of year balance 64,100 103,005 227,108 1,300,965 Issuances — — 9,554 5,918 Interest accrual 2,946 4,321 5,440 25,989 Benefit payments (3,661) (3,658) (17,667) (44,116) Derecognition (lapses and withdrawals) — — (4,927) — Other 137 (349) — (95) Ending balance at original discount rate 63,522 103,319 219,508 1,288,661 Effect of changes in discount rate assumptions 6,238 (3,645) (27,724) (248,479) Balance, end of period 69,760 99,674 191,784 1,040,182 Net liability for future policy benefits 69,395 64,298 191,784 596,775 Less reinsurance recoverable (12,431) (553) (161,944) (26,239) Net liability for future policy benefits, after reinsurance $ 56,964 63,745 29,840 570,536 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ 65,784 69,395 International traditional life 60,857 64,298 SPIAs with life contingencies 182,468 191,784 ONL & Affiliates 534,527 596,775 Total $ 843,636 922,252 The following tables summarize the amount of revenue and interest related to traditional life contracts and single premium immediate annuities with life contingencies recognized in the Condensed Consolidated Statements of Earnings. Gross Premiums or Assessments Interest Expense Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic traditional life $ 2,295 2,476 2,870 2,945 International traditional life 9,110 10,061 2,983 3,055 SPIAs with life contingencies 1,151 5,683 5,305 5,440 ONL & Affiliates 56,797 57,711 18,341 17,976 Total $ 69,353 75,931 29,499 29,416 The following table provides the amount of undiscounted expected gross premiums and expected future benefits and expenses for traditional life contracts and single premium immediate annuities with life contingencies. September 30, 2023 2022 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 32,013 103,177 33,319 108,001 International traditional life 162,304 221,506 163,976 225,183 SPIAs with life contingencies — 281,949 — 291,505 ONL & Affiliates 1,411,244 2,272,002 953,990 1,704,224 Total $ 1,605,561 2,878,634 1,151,285 2,328,913 The following tables summarize the annualized actual experience and expected experience for mortality and lapses of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.84% 2.12% 1.32% 1.89% International traditional life 0.18% 0.41% 0.24% 0.37% Domestic universal life 1.68% 1.91% 1.11% 1.69% International universal life 0.27% 0.25% 0.27% 0.24% SPIAs with life contingencies 11.62% 12.14% 8.44% 8.74% Annuities excl. SPIAs with life contingencies 2.86% 2.61% 2.73% 2.67% ONL & Affiliates 1.05% 0.86% 0.94% 0.82% 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 4.36% 6.02% 6.91% 6.51% International traditional life 8.35% 7.75% 8.03% 7.92% Domestic universal life 5.68% 3.40% 4.74% 4.69% International universal life 11.94% 6.92% 8.39% 7.16% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 6.20% 4.27% 4.05% 4.24% ONL & Affiliates 4.24% 4.75% 3.90% 7.96% The following table provides the weighted-average durations in years of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. September 30, 2023 2022 Domestic traditional life 8.00 8.00 Domestic universal life 8.10 8.10 International traditional life 8.00 8.00 International universal life 8.10 8.10 SPIAs with life contingencies 8.00 8.00 Annuities excl. SPIAs with life contingencies 6.60 6.60 ONL & Affiliates 22.00 22.00 The following table provides the weighted-average interest rates for the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. Interest Accretion Rate Current Discount Rate September 30, September 30, 2023 2022 2023 2022 Domestic traditional life 6.73% 6.80% 5.60% 5.30% Domestic universal life 4.56% 0.98% 4.56% 0.98% International traditional life 5.16% 5.24% 5.60% 5.30% International universal life 1.93% 1.53% 1.93% 1.53% SPIAs with life contingencies 3.48% 3.36% 5.60% 5.30% Annuities excl. SPIAs with life contingencies 1.02% 0.93% 1.02% 0.93% ONL & Affiliates 3.25% 3.25% 6.15% 5.85% The Company realized actual-expected experience variances but made no changes to assumptions for the periods shown other than the interest rates employed for purposes of calculating discounted values. The following tables present the balances of and changes in market risk benefits associated with guaranteed minimum withdrawal benefits, guaranteed annuitization benefits, and guaranteed minimum death benefits. Nine Months Ended September 30, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 97,552 69,466 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 97,552 69,466 — Issuances 64 — — Interest accrual — — — Attributed fees collected 37,572 — — Benefit payments — — — Effect of changes in interest rates (25,485) (5,426) — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (1,304) — — Effect of changes in future expected policyholder behavior (173) — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 108,226 64,040 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 108,226 64,040 — Less reinsurance recoverable, end of period (2,874) (64,373) — Balance, end of period, net of reinsurance $ 105,352 (333) — Net amount at risk $ 1,082,774 125,500 — Weighted-average attained age of contract holders 69.6 67.8 0.0 Nine Months Ended September 30, 2022 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 231,859 67,974 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 231,859 67,974 — Issuances 420 — — Interest accrual — — — Attributed fees collected 37,587 — — Benefit payments — — — Effect of changes in interest rates (184,636) 1,292 — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (3,746) — — Effect of changes in future expected policyholder behavior — — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 81,484 69,266 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 81,484 69,266 — Less reinsurance recoverable, end of period 2,865 (69,650) — Balance, end of period, net of reinsurance $ 84,349 (384) — Net amount at risk $ 982,619 128,954 — Weighted-average attained age of contract holders 68.9 67.0 0.0 The following table summarizes Market risk benefits liability balances separately by amounts in an asset position and amounts in a liability position to the Market risk benefits liability amounts as of the end of the following periods. September 30, 2023 September 30, 2022 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 48,240 156,466 108,226 51,881 133,365 81,484 Guaranteed annuitization benefits — 64,040 64,040 — 69,266 69,266 Balance, end of period $ 48,240 220,506 172,266 51,881 202,631 150,750 For the periods shown, there were no notable changes made to the inputs to the fair value estimates of market risk benefit calculations other than the interest rates employed for purposes of calculating fair value. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 9 Months Ended |
Sep. 30, 2023 | |
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. The following table summarizes the components of net periodic benefit cost. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Service cost $ 27 32 81 98 Interest cost 200 145 599 435 Expected return on plan assets (311) (394) (931) (1,181) Amortization of net loss 70 34 209 101 Net periodic benefit cost $ (14) (183) (42) (547) The service cost shown above for each period 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 Company's minimum required contribution for the 2023 plan year is $0.0 million. There were no planned contributions remaining for the 2022 plan year as of September 30, 2023. There were no planned contributions remaining for the 2023 plan year as of September 30, 2023. As of September 30, 2023, the Company has made no contributions to the plan for the 2022 plan year and no contributions to the plan for the 2023 plan year. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. 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. (subsequently renamed Brookfield Reinsurance Ltd.) and is therefore no longer a related party of National Western. American National (subsequently reorganized as a Limited Liability Corporation) has guaranteed the payment of pension obligations under the plan. However, the Company has a contingent liability with respect to the plan should these entities be unable to meet their obligations under the existing agreements. Also, the Company 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. On November 7, 2023, Robert L. Moody, Sr., Chairman Emeritus of the Company, passed away. Mr. Moody, Sr.'s wife predeceased him. Accordingly, the Company has no obligation to make any additional payments with respect to Mr. Moody, Sr.'s participation in the qualified pension plan and non-qualified defined benefit plans described above. 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. The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Service cost $ 203 260 611 779 Interest cost 410 278 1,227 835 Amortization of prior service cost 14 14 44 44 Amortization of net loss — 585 — 1,754 Net periodic benefit cost $ 627 1,137 1,882 3,412 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. The Company expects to contribute $2.0 million to these plans in 2023. As of September 30, 2023, the Company had contributed $1.3 million to the plans. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. Ozark National and NIS have no defined benefit plans. (B) Postretirement Employment Plans Other Than Pension National Western sponsors two healthcare plans that were amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plans are unfunded. The following table summarizes the components of net periodic benefit costs. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Interest cost $ 60 44 182 130 Amortization of net loss — 52 — 156 Net periodic benefit cost $ 60 96 182 286 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. The Company expects to contribute minimal amounts to the plans in 2023. Ozark National and NIS do not offer postemployment benefits. The components of net periodic benefit cost including service cost are reported in the line item “Other operating expenses” in the Condensed Consolidated Statements of Earnings. |
Segment and Other Operating Inf
Segment and Other Operating Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND OTHER OPERATING INFORMATION | SEGMENT AND OTHER OPERATING INFORMATIONThe Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and ONL & Affiliates. 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 its 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 as of September 30, 2023 and December 31, 2022 for the Condensed Consolidated Balance Sheet items and for the three and nine months ended September 30, 2023 and September 30, 2022 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 181,068 151,606 430,741 149,299 — 912,714 Market risk benefits asset — — 48,240 — — 48,240 Total segment assets 1,850,885 836,338 7,596,824 932,773 321,704 11,538,524 Future policyholder obligations 1,568,410 620,153 5,357,477 534,527 — 8,080,567 Market risk benefits liability — — 220,506 — — 220,506 Other policyholder liabilities 24,790 8,069 91,068 13,242 — 137,169 Funds withheld liability — — 1,161,155 — — 1,161,155 December 31, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 179,193 163,438 470,120 153,257 — 966,008 Market risk benefits asset — — 48,759 — — 48,759 Total segment assets 1,803,876 889,022 8,270,315 994,318 335,343 12,292,874 Future policyholder obligations 1,553,624 675,786 5,907,974 573,255 — 8,710,639 Market risk benefits liability — — 215,777 — — 215,777 Other policyholder liabilities 25,596 15,560 118,615 15,318 — 175,089 Funds withheld liability — — 1,333,036 — — 1,333,036 Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,807 22,871 1,895 18,529 — 56,102 Net investment income 4,181 2,229 54,169 8,358 27 68,964 Other revenues 10 2 1,872 2,829 1,028 5,741 Total revenues 16,998 25,102 57,936 29,716 1,055 130,807 Life and other policy benefits 6,180 3,880 1,846 14,651 — 26,557 Policy benefit remeasurement (gain)/loss 1,370 6,469 — 521 — 8,360 Market risk benefits expense — — (29,439) — — (29,439) Amortization of deferred transaction costs 3,407 4,148 10,457 2,314 — 20,326 Universal life and annuity contract interest 638 646 (11,701) — — (10,417) Other operating expenses 8,740 7,300 19,943 4,949 1,498 42,430 Federal income taxes (875) 3,179 22,390 1,481 2,538 28,713 Total expenses 19,460 25,622 13,496 23,916 4,036 86,530 Segment earnings (loss) $ (2,462) (520) 44,440 5,800 (2,981) 44,277 Three Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,466 18,303 5,570 18,808 — 56,147 Net investment income (loss) 8,489 3,986 55,365 7,301 4,363 79,504 Other revenues 26 24 1,584 2,778 1,349 5,761 Total revenues 21,981 22,313 62,519 28,887 5,712 141,412 Life and other policy benefits 6,647 6,419 5,142 9,560 — 27,768 Policy benefit remeasurement (gain)/loss 3,843 (18) 93 5,909 — 9,827 Market risk benefits expense — — (33,571) — — (33,571) Amortization of deferred transaction costs 5,586 3,771 9,022 3,234 — 21,613 Universal life and annuity contract interest 826 2,421 38,988 — — 42,235 Other operating expenses 7,133 4,384 11,614 4,755 1,501 29,387 Federal income taxes (414) 1,138 6,860 1,075 895 9,554 Total expenses 23,621 18,115 38,148 24,533 2,396 106,813 Segment earnings $ (1,640) 4,198 24,371 4,354 3,316 34,599 Nine Months Ended September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 38,229 64,476 12,497 56,185 — 171,387 Net investment income 51,985 16,296 168,439 24,519 20,148 281,387 Other revenues 24 6 5,674 8,154 2,873 16,731 Total revenues 90,238 80,778 186,610 88,858 23,021 469,505 Life and other policy benefits 13,569 9,410 16,582 43,874 — 83,435 Policy benefit remeasurement (gain)/loss 1,370 6,469 — 521 — 8,360 Market risk benefits expense — — 6,733 — — 6,733 Amortization of deferred transaction costs 9,782 12,225 34,463 7,130 — 63,600 Universal life and annuity contract interest 39,985 11,592 1,165 — — 52,742 Other operating expenses 27,162 22,208 60,594 15,167 4,425 129,556 Federal income taxes (545) 6,314 22,437 4,511 6,220 38,937 Total expenses 91,323 68,218 141,974 71,203 10,645 383,363 Segment earnings $ (1,085) 12,560 44,636 17,655 12,376 86,142 Nine Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 39,278 56,612 17,532 57,125 — 170,547 Net investment income (453) (3,051) 171,575 21,438 15,193 204,702 Other revenues 77 63 4,182 8,866 3,948 17,136 Total revenues 38,902 53,624 193,289 87,429 19,141 392,385 Life and other policy benefits 14,425 13,048 22,767 37,241 — 87,481 Policy benefit remeasurement (gain)/loss 3,843 (18) 93 5,909 — 9,827 Market risk benefits expense — — (150,069) — — (150,069) Amortization of deferred transaction costs 12,127 12,610 32,741 10,071 — 67,549 Universal life and annuity contract interest (15,751) (7,922) 26,139 — — 2,466 Other operating expenses 20,013 14,121 38,592 14,826 4,738 92,290 Federal income taxes 880 4,518 46,255 3,905 2,988 58,546 Total expenses 35,537 36,357 16,518 71,952 7,726 168,090 Segment earnings $ 3,365 17,267 176,771 15,477 11,415 224,295 Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Premiums and Other Revenues: Premiums and contract revenues $ 56,102 56,147 171,387 170,547 Net investment income 68,964 79,504 281,387 204,702 Other revenues 5,741 5,761 16,731 17,136 Realized gains on investments 25,883 745 25,976 6,305 Total condensed consolidated premiums and other revenues $ 156,690 142,157 495,481 398,690 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Federal Income Taxes: Total segment Federal income taxes $ 28,713 9,554 38,937 58,546 Taxes on realized gains on investments 5,435 156 5,455 1,323 Total condensed consolidated Federal income taxes $ 34,148 9,710 44,392 59,869 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Net Earnings: Total segment earnings $ 44,277 34,599 86,142 224,295 Realized gains on investments, net of taxes 20,448 589 20,521 4,982 Total condensed consolidated net earnings $ 64,725 35,188 106,663 229,277 September 30, December 31, 2023 2022 (In thousands) Assets: Total segment assets $ 11,538,524 12,292,874 Other unallocated assets 520,906 490,071 Total condensed consolidated assets $ 12,059,430 12,782,945 |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTSThe 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 vest 20% annually following three years of service following the grant date. Employee SARs granted 2016 and thereafter 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, 2022 were paid out in the first four months of 2023. The performance factor during the measurement period used to determine compensation payouts was 74.54% of the pre-defined metric target. 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. 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 during the three and nine months ended September 30, 2023 and 2022. Grants made are based upon the 20-day moving average closing market price of the Company's Class A common share at the grant date. Three Months Ended September 30, 2023 September 30, 2022 Officers Directors Officers Directors SARs — — — — RSUs — — — — PSUs — — — — Nine Months Ended September 30, 2023 September 30, 2022 Officers Directors Officers Directors SARs — — — — RSUs — 2,170 — 3,710 PSUs — — — — The Company uses the current fair value method to measure compensation costs for awards granted under the share-based plans. As of September 30, 2023 and December 31, 2022, the liability balance was $61.4 million and $20.5 million, respectively. The Company establishes its liability balance for share-based plans and recognizes related compensation cost over the graded vesting periods of each individual award. As disclosed in Note (16) Subsequent Events , the Company entered into an agreement and plan of merger on October 8, 2023 with S. USA Life Insurance Company Inc. and PGH Merger Inc. Under the terms of the merger agreement, all outstanding unvested share-based awards would fully vest at the closing date of the merger agreement which is currently expected to occur sometime in the first half of the 2024 calendar year. As a result, the liability balance and expense amortization for all awards outstanding at September 30, 2023 has been calculated assuming an ultimate amortization ending date of June 30, 2024. The effect of using this date was to increase the share-based liability and related compensation expense by $5.4 million in the three months ended September 30, 2023. A summary of awards by type and related activity is detailed below. Options Outstanding Shares Shares Weighted- Stock Options : Balance at January 1, 2023 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at September 30, 2023 291,000 — $ — Liability Awards SARs RSUs PSUs Other Share/Unit Awards : Balance at January 1, 2023 286,589 21,861 24,845 Exercised (2,860) (3,710) (6,066) Forfeited (5,927) (689) (335) Granted — 2,170 — Balance at September 30, 2023 277,802 19,632 18,444 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 $1.8 million and $1.1 million for the nine months ended September 30, 2023 and 2022, respectively. The total fair value of SARs, RSUs, and PSUs vested during the nine months ended September 30, 2023 and 2022 was $1.4 million and $0.1 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 September 30, 2023. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $210.22 21,650 0.2 years 21,650 $216.48 10,342 2.4 years 10,342 $311.16 7,807 3.4 years 7,807 $334.34 7,443 4.2 years 7,443 $303.77 9,357 5.2 years 9,357 $252.91 16,626 6.2 years 16,626 $192.10 35,861 7.2 years 23,899 $218.44 59,087 8.2 years 19,731 $220.61 109,629 9.2 years — Totals 277,802 116,855 Aggregate intrinsic value (in thousands) $ 58,799 $ 23,467 The aggregate intrinsic value in the table above is based on the closing Class A Common Stock price of $437.49 per share on September 30, 2023. The SARs shown above with an exercise price of $210.22 have a remaining contractual life of less than one year. The holders of this grant have until December 11, 2023, the end of the contractual term of the award grant, to exercise these holdings or otherwise forfeit them. The announced agreement and plan of merger noted above may potentially induce incremental exercise activity of vested SARs during the fourth quarter of 2023. In estimating the fair value of the SARs outstanding at September 30, 2023 and December 31, 2022, the Company employed the Black-Scholes option pricing model with assumptions detailed below. September 30, December 31, Expected term 0.2 to 0.8 years 0.9 to 6.7 years Expected volatility weighted-average 40.06 % 36.18 % Expected dividend yield 0.08 % 0.13 % Risk-free rate weighted-average 5.50 % 4.19 % 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. As noted previously, the Company made an adjustment at September 30, 2023 assuming the expected term of outstanding SARs to coincide with an estimated closing date of June 30, 2024 for the announced agreement and plan of merger. The pre-tax compensation cost/(benefit) recognized in the Condensed Consolidated Financial Statements related to these plans was $11.3 million and $43.6 million in the three and nine months ended September 30, 2023, and $(1.2) million and $1.4 million in the three and nine months ended September 30, 2022, respectively. The related tax expense/(benefit) recognized was $(2.4) million and $(9.2) million in the three and nine months ended September 30, 2023 and $0.2 million and $(0.3) million in the three and nine months ended September 30, 2022, respectively. Compensation expense for the three and nine months ended September 30, 2023 is indicative of the Class A Common Stock price increasing from $281.00 per share at December 31, 2022 and $242.62 per share at March 31, 2023 to $415.56 per share at June 30, 2023 and $437.49 per share at September 30, 2023. As of September 30, 2023, the total pre-tax compensation expense related to non-vested share-based awards not yet recognized was $16.8 million. This amount is expected to be recognized over a weighted-average period of 0.8 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
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. 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 $2.9 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 $2.5 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 three months 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 remitted to the IRS a payment in the amount of $4.9 million within sixty days of the effective date of the Agreement and agreed 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. The agreement and plan of merger described above (the "Merger Agreement") contains certain termination rights for both the Company and S.USA. If the Merger has not closed by July 8, 2024 (the “Outside Date”), either the Company or S.USA may terminate the Merger Agreement. However, if the closing has not occurred because the required insurance regulatory approvals have not been obtained, and all other conditions to closing have been satisfied (other than those conditions that by their terms are to be satisfied at the closing, each of which is capable of being satisfied at the closing) or waived, the Outside Date will be automatically extended to October 8, 2024. The Merger Agreement requires the Company to pay S.USA a $66.5 million termination fee under certain circumstances. Specifically, a termination fee would be payable by the Company if: ▪ S.USA terminates the Merger Agreement due to the occurrence of a Company terminable breach and (i) a competing proposal was announced after the date of the Merger Agreement but prior to the termination that was not withdrawn and (ii) within 12 months after the termination, the Company enters into a definitive agreement with respect to, or otherwise consummates, the competing proposal (or does not oppose it, in the case of a tender or exchange offer); ▪ The Company or S.USA terminates the Merger Agreement because of the Company’s failure to obtain the required vote at a duly held meeting of its stockholders and (i) a competing proposal was announced after the date of the Merger Agreement but prior to the termination that was not withdrawn and (ii) within 12 months after the termination, the Company enters into a definitive agreement with respect to, or otherwise consummates, the competing proposal (or does not oppose it, in the case of a tender or exchange offer); ▪ S.USA terminates the Merger Agreement because prior to receipt of Company stockholder approval there has been a change in the NWLGI board of directors’ recommendation, regardless of whether permitted by the Merger Agreement; or ▪ the Company terminates the Merger Agreement prior to the receipt of Company stockholder approval in order to enter into a definitive written agreement providing for a superior proposal received after the signing of the Merger Agreement that did not result from a breach of the nonsolicitation covenant binding on the Company and the Company complied with the nonsolicitation covenant’s requirements binding on 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 Condensed Consolidated Balance Sheets. The Company's exposure to credit loss in the event of nonperformance by the other 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 $25.3 million commitments to extend credit relating to existing loans at September 30, 2023. 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 $177.2 million as of September 30, 2023. The Company had unfunded commitments on private placements of $0.0 million and unfunded commitments on revolver loans of $0.0 million as of September 30, 2023. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS (A) Investment Gains and Losses 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. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 231 27 344 5,254 Realized losses on disposal — (190) — (193) Real estate gains (losses) — 908 (20) 1,244 Other 25,652 — 25,652 — Totals $ 25,883 745 25,976 6,305 For the three months ended September 30, 2023 and 2022, the percentage of total gains (losses) on bonds due to the call of securities was 100.0% and 100.0%, respectively. For the nine months ended September 30, 2023 and 2022 the percentage of total gains on bonds due to the call of securities was 81.6% and 92.2%, respectively. The Other realized gain in the three and nine months ended September 30, 2023 represents the tender of shares held in Moody Bancshares, Inc. The Company's cost basis in the shares was $195,000 and the tender proceeds approximated $25.8 million. (B) Debt Securities The table below presents amortized costs and fair values of debt securities available-for-sale at September 30, 2023. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 12,102 — (460) 11,642 — U.S. Treasury 2,820 — (141) 2,679 — States and political subdivisions 454,240 97 (79,618) 374,719 — Foreign governments 62,951 — (19,551) 43,400 — Public utilities 611,901 — (76,290) 535,611 — Corporate 5,665,482 9 (648,756) 5,016,735 — Commercial mortgage-backed 22,452 — (2,023) 20,429 — Residential mortgage-backed 265,707 3 (19,150) 246,560 — Asset-backed 896,488 300 (96,009) 800,779 — Totals $ 7,994,143 409 (941,998) 7,052,554 — 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 Gross Gross Fair Allowance for Credit Losses (In thousands) 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 — Unrealized losses for debt securities available-for-sale increased at September 30, 2023 from comparable balances at December 31, 2022 primarily due to increases in interest rate levels during the period. The ten-year U.S. Treasury bond increased 69 basis points during the nine months ended September 30, 2023. Debt securities balances at September 30, 2023 and December 31, 2022 include Ozark National holdings of $663.0 million and $674.8 million, respectively, in available-for-sale. 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 September 30, 2023. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. agencies $ 4,539 (296) 7,103 (164) 11,642 (460) U.S. Treasury 1,003 (11) 1,676 (130) 2,679 (141) States and political subdivisions 46,636 (2,704) 312,203 (76,914) 358,839 (79,618) Foreign governments — — 43,400 (19,551) 43,400 (19,551) Public utilities 2,434 (19) 533,177 (76,271) 535,611 (76,290) Corporate 260,567 (12,271) 4,702,597 (636,485) 4,963,164 (648,756) Commercial mortgage-backed 4,846 (153) 15,583 (1,870) 20,429 (2,023) Residential mortgage-backed 28,534 (1,207) 217,726 (17,943) 246,260 (19,150) Asset-backed 146,237 (5,195) 608,626 (90,814) 754,863 (96,009) Totals $ 494,796 (21,856) 6,442,091 (920,142) 6,936,887 (941,998) 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 that 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 Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. 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 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) Totals $ 6,673,701 (635,555) 653,807 (194,656) 7,327,508 (830,211) Debt securities. The gross unrealized losses for debt securities are made up of 1,076 individual issues, or 97.6% of the total debt securities held available-for-sale by the Company at September 30, 2023. The market value of these bonds as a percent of amortized cost approximates 88.0%. Of the 1,076 securities, 966, or 89.8%, fall in the 12 months or greater aging category and 1,060 were rated investment grade at September 30, 2023. The amortized cost and fair value of investments in debt securities available-for-sale at September 30, 2023, 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 $ 845,731 835,118 Due after 1 year through 5 years 2,725,641 2,576,629 Due after 5 years through 10 years 1,303,748 1,123,633 Due after 10 years 1,934,376 1,449,406 6,809,496 5,984,786 Mortgage and asset-backed securities 1,184,647 1,067,768 Totals before allowance for credit losses 7,994,143 7,052,554 Allowance for credit losses — — Totals $ 7,994,143 7,052,554 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 Condensed Consolidated Statements of Earnings. Based on its review, the Company determined none of these investments required an allowance for credit loss at September 30, 2023 or December 31, 2022. 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. (C) Transfer of Securities During the nine months ended September 30, 2023 and 2022, the Company made no transfers between debt securities available-for-sale and trading. The Company does not classify any debt securities as held-to-maturity. (D) 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 Condensed 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, have resulted in fewer loan opportunities being available meeting the Company's required rate of return. The subsequent rapid rise in interest rate levels beginning in 2022 caused potential mortgage loan opportunities to fall outside the Company's underwriting criteria further causing a lower level of originations. Mortgage loans originated by the Company totaled $6.8 million in the nine months ended September 30, 2023 compared with $45.4 million in the nine months ended September 30, 2022 and $47.4 million in the year ended December 31, 2022. 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 Condensed 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 had no mortgage loans past due 90 days or more at September 30, 2023 or 2022 and as a result all interest income was recognized at September 30, 2023 and 2022. Included in the mortgage loan investment balance at September 30, 2023 and December 31, 2022 were three mortgage loan investments made by Prosperity under the funds withheld reinsurance agreement totaling $19.3 million and $19.3 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 Condensed Consolidated Statements of Earnings and to offset the embedded derivative liability change due to market value fluctuations. The following table represents the mortgage loan portfolio by loan-to-value ratio. September 30, 2023 December 31, 2022 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 114,675 23.1 $ 100,757 19.7 50% to 60% 158,291 31.9 145,093 28.4 60% to 70% 192,448 38.8 217,445 42.6 70% to 80% 30,183 6.2 47,300 9.3 Gross balance 495,597 100.0 510,595 100.0 Market value adjustment (1,242) (0.3) (1,290) (0.3) Allowance for credit losses (4,296) (0.9) (3,575) (0.7) Totals $ 490,059 98.8 $ 505,730 99.0 (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 Condensed Consolidated Statements of Earnings. The following table represents the mortgage loan allowance for credit losses. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 3,736 2,573 3,575 2,987 Provision during the period 560 1,225 721 811 Total ending allowance for credit losses $ 4,296 3,798 4,296 3,798 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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 Condensed 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 include private debt securities available-for-sale, private trading securities, over-the-counter derivative contracts, mortgage loans, and market risk benefits assets. The Company’s Level 3 liabilities consist of share-based compensation obligations, certain equity-index product-related embedded derivatives, market risk benefits liabilities 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. September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,052,554 — 6,562,141 490,413 Debt securities, trading 1,000,355 — 872,462 127,893 Equity securities 21,913 18,475 3,438 — Mortgage loans 19,285 — — 19,285 Derivatives, index options 55,278 — — 55,278 Short-term investments 7,821 — 7,821 — Total assets $ 8,157,206 18,475 7,445,862 692,869 Policyholder account balances (a) $ 383,034 — — 383,034 Market risk benefits liabilities, net (b) 172,266 — — 172,266 Embedded derivative contra-liability (c) (349,275) — (338,252) (11,023) Other liabilities (d) 61,379 — — 61,379 Total liabilities $ 267,404 — (338,252) 605,656 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the fair value of the net market risk benefits liability which is recorded at fair value. (c) Represents the embedded derivative for funds withheld which is recorded at fair value. (d) Represents the liability for share-based compensation which is recorded at fair value. During the three and nine months ended September 30, 2023, the Company made no transfers from Level 2 to Level 3 for debt securities available-for-sale. During the nine months ended September 30, 2022, a portion of the funds withheld embedded derivative liability was reclassified from Level 2 into Level 3 due to the presence of unobservable inputs in its valuation. 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 security, 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) $ 387,686 — — 387,686 Market risk benefits liabilities, net (b) 167,018 — — 167,018 Embedded derivative contra-liability (c) (334,955) — (324,712) (10,243) Other liabilities (d) 20,542 — — 20,542 Total liabilities $ 240,291 — (324,712) 565,003 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the fair value of the net market risk benefits liability which is recorded at fair value. (c) Represents the embedded derivative for funds withheld which is recorded at fair value. (d) Represents the liability for share-based compensation which is recorded at fair value. The following tables present, by pricing source and fair value hierarchy level, the Company's assets that are measured at fair value on a recurring basis. September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,948,649 — 6,562,141 386,508 Priced internally 103,905 — — 103,905 Subtotal 7,052,554 — 6,562,141 490,413 Debt securities, trading: Priced by third-party vendors 1,000,355 — 872,462 127,893 Priced internally — — — — Subtotal 1,000,355 — 872,462 127,893 Equity securities: Priced by third-party vendors 21,913 18,475 3,438 — Priced internally — — — — Subtotal 21,913 18,475 3,438 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 19,285 — — 19,285 Subtotal 19,285 — — 19,285 Derivatives, index options: Priced by third-party vendors 55,278 — — 55,278 Priced internally — — — — Subtotal 55,278 — — 55,278 Short-term Investments: Priced by third-party vendors 7,821 — 7,821 — Priced internally — — — — Subtotal 7,821 — 7,821 — Total $ 8,157,206 18,475 7,445,862 692,869 Percent of total 100.0 % 0.2 % 91.3 % 8.5 % 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 Priced internally — — — — 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 by third-party vendors — — — — Priced internally 19,334 — — 19,334 Subtotal 19,334 — — 19,334 Derivatives, index options: Priced by third-party vendors 23,669 — — 23,669 Priced internally — — — — Subtotal 23,669 — — 23,669 Short-term investments: Priced by third-party vendors 3,937 — 3,937 — Priced internally — — — — 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 following tables provide additional information about fair value measurements for Level 3 for which significant unobservable inputs were utilized to determine fair value. Three Months Ended September 30, 2023 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2023 $ 483,980 141,624 72,863 19,422 717,889 Total realized and unrealized gains (losses): Included in net earnings — (1,492) (19,809) (104) (21,405) Included in other comprehensive income (loss) (16,193) — — — (16,193) Purchases, sales, issuances and settlements, net: Purchases 28,582 2,223 14,070 — 44,875 Settlements (5,956) (14,462) (11,846) (33) (32,297) Balance at end of period September 30, 2023 $ 490,413 127,893 55,278 19,285 692,869 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: Net investment income $ — (1,492) (24,785) (104) (26,381) Total $ — (1,492) (24,785) (104) (26,381) Three Months Ended September 30, 2023 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities, net Total Liabilities Beginning balance, July 1, 2023 $ (9,426) 430,320 50,295 208,803 679,992 Total realized and unrealized (gains) losses: Included in net earnings (1,597) (49,510) 11,068 (36,514) (76,553) Purchases, sales, issuances and settlements, net: Purchases — 14,070 — — 14,070 Issuances — — 239 (23) 216 Settlements — (11,846) (223) — (12,069) Balance at end of period September 30, 2023 $ (11,023) 383,034 61,379 172,266 605,656 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 $ (1,597) — — — (1,597) Benefits and expenses — (24,785) 11,068 (36,514) (50,231) Total $ (1,597) (24,785) 11,068 (36,514) (51,828) Three Months Ended September 30, 2022 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2022 $ 373,957 99,769 6,071 18,738 498,535 Total realized and unrealized gains (losses): Included in net earnings — (3,102) (12,550) (551) (16,203) Included in other comprehensive income (loss) (12,642) — — — (12,642) Purchases, sales, issuances and settlements, net: Purchases 55,888 3,904 13,386 1,234 74,412 Settlements (6,656) (265) (92) (31) (7,044) Balance at end of period September 30, 2022 $ 410,547 100,306 6,815 19,390 537,058 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 $ — (3,102) 6,524 (551) 2,871 Benefits and expenses — — — — — Total $ — (3,102) 6,524 (551) 2,871 Three Months Ended September 30, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, July 1, 2022 $ (6,534) 382,721 9,332 176,758 562,277 Total realized and unrealized (gains) losses: Included in net earnings (3,681) (23,145) (1,319) (26,016) (54,161) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 13,386 — — 13,386 Sales — — — — — Issuances — — 155 8 163 Settlements — (92) — — (92) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2022 $ (10,215) 372,870 8,168 150,750 521,573 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 $ (3,681) — — — (3,681) Benefits and expenses — 6,524 (1,319) (26,016) (20,811) Total $ (3,681) 6,524 (1,319) (26,016) (24,492) Nine Months Ended September 30, 2023 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2023 $ 462,796 123,236 23,669 19,334 629,035 Total realized and unrealized gains (losses): Included in net earnings — (828) 4,045 48 3,265 Included in other comprehensive income (loss) (11,338) — — — (11,338) Purchases, sales, issuances and settlements, net: Purchases 64,239 30,985 39,680 — 134,904 Sales — — — — — Issuances — — — — — Settlements (25,284) (25,500) (12,116) (97) (62,997) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2023 $ 490,413 127,893 55,278 19,285 692,869 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: Net investment income $ — (828) 289 48 (491) Benefits and expenses — — — — — Total $ — (828) 289 48 (491) Nine Months Ended September 30, 2023 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, January 1, 2023 $ (10,243) 387,686 20,542 167,018 565,003 Total realized and unrealized (gains) losses: Included in net earnings (780) (32,216) 43,336 5,184 15,524 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,680 — — 39,680 Sales — — — — — Issuances — — 261 64 325 Settlements — (12,116) (2,760) — (14,876) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2023 $ (11,023) 383,034 61,379 172,266 605,656 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 $ (780) — — — (780) Benefits and expenses — 289 43,336 5,184 48,809 Total $ (780) 289 43,336 5,184 48,029 Nine Months Ended September 30, 2022 Total 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 — (9,705) (89,173) (1,679) (100,557) Included in other comprehensive income (loss) (43,335) — — — (43,335) Purchases, sales, issuances and settlements, net: Purchases 151,872 35,454 39,642 12,693 239,661 Sales — — — — — Issuances — — — — — Settlements (24,952) (265) (45,276) (93) (70,586) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2022 $ 410,547 100,306 6,815 19,390 537,058 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 $ — (9,705) (52,858) (1,679) (64,242) Benefits and expenses — — — — — Total $ — (9,705) (52,858) (1,679) (64,242) Nine Months Ended September 30, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 550,596 7,869 299,833 858,298 Total realized and unrealized (gains) losses: Included in net earnings (11,384) (172,092) 1,192 (149,503) (331,787) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,642 — — 39,642 Sales — — — — — Issuances — — 184 420 604 Settlements — (45,276) (1,077) — (46,353) Transfers into (out of) Level 3 1,169 — — — 1,169 Balance at end of period September 30, 2022 $ (10,215) 372,870 8,168 150,750 521,573 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 $ (11,384) — — — (11,384) Benefits and expenses — (52,858) 1,193 (149,503) (201,168) Total $ (11,384) (52,858) 1,193 (149,503) (212,552) The following table presents the valuation method for financial assets and liabilities priced internally and categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: September 30, 2023 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 103,905 Discounted cash flows Discount rate 3.55% - 6.14% (5.04%) Mortgage loans 19,285 Discounted cash flows Spread 175 - 325 bps Total assets $ 123,190 Liabilities: Policyholder account balances $ 383,034 Deterministic cash flow model Projected option cost 0.00% - 9.18% (3.69%) Share-based compensation 61,379 Black-Scholes model Expected term 0.2 to 0.8 years Expected volatility 40.06% Market risk benefits liabilities, net 172,266 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 616,679 December 31, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 76,003 Discounted cash flows Discount rate 4.32% - 7.28% (5.79%) Mortgage loans 19,334 Discounted cash flows Spread 150 - 300 bps Total assets $ 95,337 Liabilities: Policyholder account balances $ 387,686 Deterministic cash flow model Projected option cost 0.00% - 5.70% (2.92%) Share-based compensation 20,542 Black-Scholes model Expected term 0.9 to 6.7 years Expected volatility 36.18% Market risk benefits liabilities, net 167,018 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 575,246 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 Condensed 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 Condensed Consolidated Balance Sheets. Unrealized gains (losses) on trading debt securities are reported in the Condensed 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. The carrying amounts and fair values of the Company's financial instruments are as follows: September 30, 2023 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,052,554 7,052,554 — 6,562,141 490,413 Debt securities, trading 1,000,355 1,000,355 — 872,462 127,893 Cash and cash equivalents 320,740 320,740 320,740 — — Mortgage loans 490,059 434,094 — — 434,094 Real estate 27,273 47,867 — — 47,867 Policy loans 67,809 81,258 — — 81,258 Other loans 44,478 43,667 — — 43,667 Derivatives, index options 55,278 55,278 — — 55,278 Equity securities 21,913 21,913 18,475 3,438 — Short-term investments 7,821 7,821 — 7,821 — Life interest in Libbie Shearn Moody Trust 7,100 12,775 — — 12,775 Other investments 4,318 4,532 — — 4,532 LIABILITIES Deferred annuity contracts $ 5,049,868 3,626,361 — — 3,626,361 Immediate annuity and supplemental contracts 348,106 350,394 — — 350,394 Market risk benefits liabilities, net 172,266 172,266 — — 172,266 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 $ 5,583,038 3,934,517 — — 3,934,517 Immediate annuity and supplemental contracts 367,128 373,346 — — 373,346 Market risk benefits liabilities, net 167,018 167,018 — — 167,018 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. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVESFixed-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 Condensed 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 Condensed Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Condensed Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Condensed 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 Condensed 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 agreements 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 reinsurer, 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 Condensed Consolidated Balance Sheets with changes in the embedded derivative on reinsurance reported in Net investment income in the Condensed Consolidated Statements of Earnings. Changes in the funds withheld liability are reported in operating activities in the Condensed Consolidated Statements of Cash Flows. The tables below present the fair value of derivative instruments as of September 30, 2023 and December 31, 2022, respectively. September 30, 2023 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 55,278 Fixed-index products Universal life and annuity contracts $ 383,034 Embedded derivative on reinsurance contract Funds withheld liability (349,275) Total $ 55,278 $ 33,759 December 31, 2022 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (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 $ 387,686 Embedded derivative on reinsurance contract Funds withheld liability (334,955) Total $ 23,669 $ 52,731 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended September 30, 2023 and 2022. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (19,655) (12,550) Fixed-index products Universal life and annuity contract interest 49,355 23,145 Embedded derivative on reinsurance contract Net investment income 35,531 70,610 $ 65,231 81,205 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2023 and 2022. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 5,246 (89,173) Fixed-index products Universal life and annuity contract interest 31,015 172,092 Embedded derivative on reinsurance contract Net investment income 14,320 256,499 $ 50,581 339,418 |
Intangibles and Goodwill
Intangibles and Goodwill | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES AND GOODWILL | INTANGIBLES AND GOODWILL Identifiable Intangible Assets The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows. September 30, 2023 December 31, 2022 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (871) 2,800 (731) Internally developed software 7 3,800 (2,533) 3,800 (2,126) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (3,404) 9,600 (2,857) 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 the estimated useful lives. These intangible 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 September 30, 2023, expected amortization expense relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected (In thousands) Remainder of 2023 $ 182 2024 730 2025 730 2026 232 2027 187 Thereafter 1,135 Goodwill The changes in the carrying amount of goodwill were as follows: September 30, December 31, 2023 2022 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 Goodwill resulting from business acquisition — — Gross goodwill, before impairments 13,864 13,864 Accumulated impairment as of beginning of year — — Current year impairments — — Net goodwill as of end of period $ 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. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 8, 2023, the Company entered the Merger Agreement with S. USA Life Insurance Company, Inc. ("S.USA”) and its direct wholly owned subsidiary PGH Merger Inc. (“Merger Sub”), under which, at the effective time of the merger, the Company would merge with and into Merger Sub (the “Merger”) and survive the Merger as a wholly owned subsidiary of S.USA. In the Merger, all outstanding shares of Class A Common Stock and Class B Common Stock will be converted into the right to receive $500.00 per share in cash, without interest. Including the vesting and cash settlement of all outstanding SARs, RSUs and PSUs (at target performance) at closing, the total merger consideration to be paid by S.USA would be approximately $1.9 billion. S.USA is an Arizona domiciled insurance company affiliated with Prosperity Group Holdings. The closing of the Merger is subject to approval by the holders of a majority of the outstanding shares of Class A Common Stock and Class B Common stock, voting together as a single class, antitrust clearance, regulatory approvals and other customary closing conditions. The Merger is currently expected to close in the first half of 2024. Other subsequent events have been evaluated through the date of filing and no other reportable items were identified. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted None noted. Accounting pronouncements adopted Targeted Improvements to the Accounting for Long-Duration Contracts In August 2018, the FASB issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI" or "ASU 2018-12"). 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. On January 1, 2023, the Company adopted the requirements of the new standard, using the modified retrospective approach for market risk benefits, the liability for future policy benefits, and deferred policy acquisition costs and related balances, such that those balances were adjusted to conform to ASU 2018-12 as of January 1, 2021, the transition date. A table presenting the change in Value of business acquired (VOBA) between December 31, 2020 and January 1, 2021 for the adoption of ASU 2018-12 is not included as VOBA is not impacted by shadow balance accounting. However, the method of recognizing amortization expense of VOBA in the Condensed Consolidated Statements of Earnings subsequent to January 1, 2021 has changed consistent with the method of determining amortization expense for DPAC and DSI balances. Refer to Note (5) Deferred Transaction Costs for further information concerning amortization of Deferred Transaction Costs balances effected by the adoption of ASU 2018-12. The net transition adjustment for the Liability for future policy benefits is due to the difference in the discount rate used previously and the discount rate used for the adoption of ASU 2018-12 at January 1, 2021. The transition adjustment for DPAC and DSI removed the shadow adjustments pertaining to unrealized investment gains/(losses) previously required to be allocated from Accumulated Other Comprehensive Income (Loss). The transition adjustment for Market risk benefits is the difference between reporting certain contracts and contract features at fair value under ASU 2018-12 as opposed to the carrying amount previously required under GAAP. Prior to the adoption of ASU 2018-12, VOBA and Cost of Reinsurance (COR) balances were amortized consistent with the methodologies employed for amortizing DPAC and DSI balances. Although not otherwise impacted by ASU 2018-12, the Company elected to continue using the amortization method consistent with that used for amortizing DPAC and DSI balances after the adoption of the new accounting standard. VOBA and COR balances did not have shadow accounting requirements under GAAP prior to the adoption of ASU 2018-12 and consequently did not have a transition adjustment. Other Accounting Pronouncements 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. 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. |
Fair Value 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 Condensed 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 include private debt securities available-for-sale, private trading securities, over-the-counter derivative contracts, mortgage loans, and market risk benefits assets. The Company’s Level 3 liabilities consist of share-based compensation obligations, certain equity-index product-related embedded derivatives, market risk benefits liabilities 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. |
Consolidation and Basis of Pr_2
Consolidation and Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of the Unrealized Gains and Losses on Available-for-Sale Securities that were Reclassified Out of Accumulated Other Comprehensive Income (Loss) | The table below shows the net unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2023 and September 30, 2022. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Other net investment gains $ 231 (163) 344 5,061 Earnings before Federal income taxes 231 (163) 344 5,061 Federal income taxes 48 (34) 72 1,063 Net earnings $ 183 (129) 272 3,998 |
Effect of Adoption of Guidance Under ASU 2018-12 | The following tables present amounts as previously reported, the effect of adoption of the guidance under ASU 2018-12, and the resulting adjusted amounts reported in interim Condensed Consolidated Financial Statements included herein. The tables include only those line items impacted by restatement. Restated Lines of Condensed Consolidated Balance Sheet: December 31, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Assets: Deferred policy acquisition costs $ 909,786 (245,904) 663,882 Deferred sales inducements 114,399 (29,096) 85,303 Value of business acquired 146,494 (7,999) 138,495 Market risk benefits asset — 48,759 48,759 Deferred federal income tax asset 57,867 (48,835) 9,032 Amounts recoverable from reinsurer, net of allowance for credit losses 1,723,347 (34,559) 1,688,788 Other assets 110,339 352 110,691 Total Assets 13,100,227 (317,282) 12,782,945 Liabilities: Future policy benefits: Universal life and annuity contracts 8,498,684 (8,498,684) — Traditional life reserves 919,650 (919,650) — Liability for policyholder account balances — 7,661,785 7,661,785 Additional liability for benefits in excess of account balance — 148,708 148,708 Liability for future policy benefits — 900,146 900,146 Market risk benefits liability — 215,777 215,777 Other liabilities 166,557 (9,075) 157,482 Total liabilities 11,093,016 (500,993) 10,592,023 Stockholders' Equity: Accumulated other comprehensive income (loss) (416,397) (61,822) (478,219) Retained earnings 2,381,856 245,533 2,627,389 Total stockholders' equity 2,007,211 183,711 2,190,922 Total liabilities and stockholders' equity 13,100,227 (317,282) 12,782,945 Interim Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 36,063 (2,253) 33,810 Traditional life and SPIAWLC premiums 21,639 698 22,337 Other revenues 5,922 (161) 5,761 Total Revenues 143,873 (1,716) 142,157 Benefits and Expenses: Life and other policy benefits 37,356 (9,588) 27,768 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (33,571) (33,571) Amortization of deferred transaction costs 31,679 (10,066) 21,613 Universal life and annuity contract interest 17,548 24,687 42,235 Total benefit and expenses 115,970 (18,711) 97,259 Federal income taxes 6,142 3,568 9,710 Net earnings 21,761 13,427 35,188 Basic earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Diluted earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 101,406 (1,978) 99,428 Traditional life and SPIAWLC premiums 65,619 5,500 71,119 Other revenues 17,297 (161) 17,136 Total Revenues 395,329 3,361 398,690 Benefits and Expenses: Life and other policy benefits 114,432 (26,951) 87,481 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (150,069) (150,069) Amortization of deferred transaction costs 88,451 (20,902) 67,549 Universal life and annuity contract interest (11,058) 13,524 2,466 Total benefit and expenses 284,115 (174,571) 109,544 Federal income taxes 22,504 37,365 59,869 Net earnings 88,710 140,567 229,277 Basic earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Diluted earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Interim Condensed Consolidated Statement of Changes in Stockholders' Equity: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at June 30, 2022 $ 2,348,935 227,306 2,576,241 Net earnings 21,761 13,427 35,188 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at June 30, 2022 (287,430) (156,779) (444,209) Other comprehensive income (loss), net of income tax (181,077) (106,132) (287,209) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at June 30, 2022 — 96,167 96,167 Impact of discount rate changes during the period — 51,262 51,262 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at June 30, 2022 5,391 932 6,323 Change in translation adjustments during period 48 3 51 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at June 30, 2022 (295,138) (59,680) (354,818) Change during period (179,894) (54,867) (234,761) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at June 30, 2022 2,095,549 167,626 2,263,175 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at December 31, 2021 $ 2,281,986 100,166 2,382,152 Net earnings 88,710 140,567 229,277 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at December 31, 2021 226,220 140,889 367,109 Other comprehensive income (loss), net of income tax (694,727) (403,800) (1,098,527) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at December 31, 2021 — (60,121) (60,121) Impact of discount rate changes during the period — 207,550 207,550 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at December 31, 2021 5,100 928 6,028 Change in translation adjustments during period 339 7 346 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at December 31, 2021 215,953 81,696 297,649 Change during period (690,985) (196,243) (887,228) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at December 31, 2021 2,539,691 181,862 2,721,553 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Interim Condensed Consolidated Statement of Cash Flows: Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Cash flows from operating activities: Net earnings $ 88,710 140,567 229,277 Adjustments to reconcile net earnings to net cash from operating activities: Universal life and annuity contract interest (11,058) 13,524 2,466 (Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired 47,694 (23,396) 24,298 (Increase) decrease in reinsurance recoverable 81,454 61,012 142,466 (Increase) decrease in other assets (333) 22 (311) Increase (decrease) in liabilities for future policy benefits 93,088 (83,024) 10,064 Increase (decrease) in market risk benefits liability — (149,083) (149,083) Increase (decrease) in deferred Federal income tax 15,658 37,365 53,023 Increase (decrease) in other liabilities (15,347) 159 (15,188) Net cash provided by (used in) operating activities 234,590 (2,854) 231,736 Cash flows from financing activities: Deposits to account balances for universal life and annuity contracts 258,248 (5,375) 252,873 Return of account balances on universal life and annuity contracts (637,119) 8,219 (628,900) Net cash provided by (used in) financing activities (379,125) 2,844 (376,281) Effect of foreign exchange 429 10 439 The following table summarizes the restated Deferred policy acquisition costs ("DPAC") and Deferred sales inducements ("DSI") balances as of the transition date, January 1, 2021, due to the adoption of ASU 2018-12. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred policy acquisition costs: Balance, December 31, 2020 $ 4,014 96,513 13,399 157,186 103,179 7,789 Removal of shadow balances in Accumulated other comprehensive income (loss) — 47,620 — 27,076 239,099 — Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred sales inducements: Balance, December 31, 2020 $ — — — — 43,845 — Removal of shadow balances in Accumulated other comprehensive income (loss) — — — — 52,533 — Adjusted balance, January 1, 2021 $ — — — — 96,378 — The following table summarizes restated DPAC and DSI balances by product line in the Consolidated Balance Sheet as of January 1, 2021. DPAC Balances DSI Balances (In thousands) Domestic traditional life $ 4,014 — Domestic universal life 144,133 — International traditional life 13,399 — International universal life 184,262 — Annuities, excluding SPIAs with life contingencies 342,278 96,378 ONL & Affiliates 7,789 — Balance Sheet balance as of January 1, 2021 $ 695,875 96,378 The following table summarizes the restated Liability for policyholder account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Universal life and annuity contracts balance, December 31, 2020 $ 1,267,764 740,839 7,026,713 Transfer of balances to Additional liabilities in excess of account balance (45,136) (63,046) (11,192) Transfer of balances to Liability for future policy benefits 66 107 (200,894) Transfer of balances to Market risk benefits — — (205,611) Change in embedded derivative on reserves — — (131,573) Liability for policyholder account balances, January 1, 2021 1,222,694 677,900 6,477,443 Less reinsurance recoverable — — (1,677,898) Adjusted balance, January 1, 2021, net of reinsurance $ 1,222,694 677,900 4,799,545 The following table summarizes the Additional liability in excess of account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, December 31, 2020 $ — — — Transfer of balances from universal life ("UL") and annuity contracts 45,136 63,046 11,192 Adjusted balance, January 1, 2021 45,136 63,046 11,192 Less reinsurance recoverable — — (11,192) Adjusted balance, January 1, 2021, net of reinsurance $ 45,136 63,046 — The following table summarizes the restated Liability for future policy benefits balance as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Traditional life reserve balance, December 31, 2020 $ 56,894 70,426 2,350 768,433 Transfer of balances from UL and annuity contracts (66) (107) 200,894 — Change in discount rate assumptions 36,479 26,131 37,390 86,016 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 7,937 — — — Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability — — (3,160) — Other Adjustments 1,163 (1,048) 653 12,403 Adjustment for removal of related balances in accumulated other comprehensive income — — — — Liability for future policy benefit balance, January 1, 2021 102,407 95,402 238,127 866,852 Less reinsurance recoverable (13,680) (607) (238,127) (33,731) Adjusted balance, January 1, 2021, net of reinsurance $ 88,727 94,795 — 833,121 The following table summarizes the Market risk benefits liability balance as of January 1, 2021 for the adoption of ASU 2018-12. (In thousands) Balance, December 31, 2020 $ — Transfer of balances from UL and annuity contracts 205,611 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 95,990 Adjustment for the cumulative effect of changes in the instrument-specific credit risk — Total adjustment for the difference between carrying amount and fair value 95,990 Adjusted balance, January 1, 2021 301,601 Less reinsurance recoverable (73,651) Adjusted balance, January 1, 2021, net of reinsurance $ 227,950 The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheet as of January 1, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 102,407 — Domestic universal life 1,222,694 45,136 — — International traditional life — — 95,402 — International universal life 677,900 63,046 — — SPIAs with life contingencies — — 238,127 — Annuities, excluding SPIAs with life contingencies 6,477,443 11,192 — 301,601 ONL & Affiliates — — 866,852 — Balance Sheet balances as of January 1, 2021 $ 8,378,037 119,374 1,302,788 301,601 The following table presents the effect of the transition adjustment, net of foreign exchange and deferred tax adjustments, on total equity for the adoption of ASU 2018-12 as of January 1, 2021. January 1, 2021 Retained Earnings Accumulated Other Comprehensive Income Total (In thousands) Liability for future policy benefits $ (9,650) (112,734) (122,384) Liability for policyholder account balances 303,503 — 303,503 Additional liability for excess death/annuitization benefits (85,463) — (85,463) Deferred policy acquisition costs — 247,897 247,897 Deferred sales inducements — 41,501 41,501 Market risk benefits (180,080) — (180,080) Total $ 28,310 176,664 204,974 The following tables summarize restated DPAC, DSI, and VOBA balances as of December 31, 2021 and the changes in these balances subsequent to the January 1, 2021 transition date. The balances as of December 31, 2021 establish the beginning balances for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Policy Acquisition Costs: Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Capitalization additions 19 33,447 — 1,072 38,836 4,176 Amortization (585) (9,265) (984) (17,666) (40,187) (676) Experience adjustment — (567) — (112) 970 — Adjusted balance, December 31, 2021 $ 3,448 167,748 12,415 167,556 341,897 11,289 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Sales Inducements: Adjusted balance, January 1, 2021 $ — — — — 96,378 — Capitalization additions — — — — 18,117 — Amortization — — — — (11,775) — Experience adjustment — — — — 256 — Adjusted balance, December 31, 2021 $ — — — — 102,976 — ONL & Affiliates (In thousands) Value of Business Acquired: Balance, January 1, 2021 $ 162,968 Capitalization additions — Amortization (13,560) Experience adjustment — Balance, December 31, 2021 $ 149,408 The following table summarizes restated DPAC, DSI, and VOBA balances in the Consolidated Balance Sheet as of December 31, 2021. DPAC DSI VOBA (In thousands) Domestic traditional life $ 3,448 — — Domestic universal life 167,748 — — International traditional life 12,415 — — International universal life 167,556 — — SPIAs with life contingencies — — — Annuities, excluding SPIAs with life contingencies 341,897 102,976 — ONL & Affiliates 11,289 — 149,408 Balance Sheet balances as of December 31, 2021 $ 704,353 102,976 149,408 The following table summarizes the restated Liability for policyholder account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 $ 1,222,694 677,900 6,477,443 Issuances — — — Premiums received 225,349 46,147 430,846 Policy charges (76,147) (68,800) (28,643) Surrenders and withdrawals (47,483) (47,644) (580,269) Benefit payments (25,418) (2,040) (207,302) Interest credited 89,508 36,902 155,783 Other 23,555 5,121 (86,558) Adjusted balance, December 31, 2021 1,412,058 647,586 6,161,300 Less reinsurance recoverable — — (1,458,076) Adjusted balance, December 31, 2021 net of reinsurance $ 1,412,058 647,586 4,703,224 The following table summarizes the restated Additional liability in excess of account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 net of reinsurance $ 45,136 63,046 — Beginning balance before shadow reserve adjustments 45,136 63,046 11,192 Effect of changes in cash flow ("CF") assumptions 7,061 (14,524) — Effect of actual variances from expected experience — — 1,512 Adjusted beginning of year balance: 52,197 48,522 12,704 Issuances — — — Interest accrual 4,767 3,264 459 Assessments collected 14,775 8,304 749 Benefit payments (17,687) (10,565) (1,198) Derecognition (lapses and withdrawals) 45 (1,189) 4 Ending balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of shadow reserve adjustments — — — Adjusted balance, December 31, 2021 54,097 48,336 12,718 Less: Reinsurance recoverable — — (12,718) Adjusted balance, December 31, 2021 net of reinsurance $ 54,097 48,336 — The following table summarizes the restated Liability for future policy benefits balance as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Adjusted balance, January 1, 2021 $ 102,407 95,402 238,127 866,852 Beginning balance at original discount rate 65,928 69,270 200,737 780,836 Effect of changes in CF assumptions — — (316) — Effect of actual variances from expected experience (525) (252) 5,724 114 Adjusted beginning of year balance: 65,403 69,018 206,145 780,950 Issuances — — 39,338 227 Interest accrual 4,058 4,391 7,076 23,801 Net premium collected 16 5,602 — 35,640 Benefit payments (6,538) (17,221) (22,173) (56,616) Derecognition (lapses and withdrawals) — — (6,840) — Other 597 2,608 358 (770) Ending balance at original discount rate 63,536 64,398 223,904 783,232 Effect of changes in discount rate 26,933 17,186 20,646 34,913 Adjusted balance, December 31, 2021 90,469 81,584 244,550 818,145 Less reinsurance recoverable (13,841) (578) (211,912) (31,476) Adjusted balance, December 31, 2021 net of reinsurance $ 76,628 81,006 32,638 786,669 The following table summarizes the net Market risk benefit liability balance as of December 31, 2021 and the changes in this net balance subsequent to the January 1, 2021 transition date. The net balance as of December 31, 2021 establishes the beginning net balance for reporting the results for the nine months ended September 30, 2022. (In thousands) Adjusted balance, January 1, 2021 $ 301,601 Balance, beginning of year, before effect of changes in instrument-specific credit risk: 301,601 Issuances 3,184 Interest accrual — Attributed fees collected 38,182 Benefit payments — Effect of changes in interest rates (36,112) Effect of changes in equity markets — Effect of changes in equity index volatility — Actual policyholder behavior different from expected behavior (7,022) Effect of changes in future expected policyholder behavior — Effect of changes in other future expected assumptions — Balance, end of year, before effect of changes in instrument-specific credit risk 299,833 Effect of changes in the instrument-specific credit risk — Adjusted balance, December 31, 2021 299,833 Less reinsurance recoverable, end of year (68,238) Adjusted balance, December 31, 2021 net of reinsurance $ 231,595 The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheets as of December 31, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 90,469 — Domestic universal life 1,412,058 54,097 — — International traditional life — — 81,584 — International universal life 647,586 48,336 — — SPIAs with life contingencies — — 244,550 — Annuities, excl. SPIAs with life contingencies 6,161,300 12,718 — 299,833 ONL & Affiliates — — 818,145 — Balances as of December 31, 2021 $ 8,220,944 115,151 1,234,748 299,833 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | The following tables present amounts as previously reported, the effect of adoption of the guidance under ASU 2018-12, and the resulting adjusted amounts reported in interim Condensed Consolidated Financial Statements included herein. The tables include only those line items impacted by restatement. Restated Lines of Condensed Consolidated Balance Sheet: December 31, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Assets: Deferred policy acquisition costs $ 909,786 (245,904) 663,882 Deferred sales inducements 114,399 (29,096) 85,303 Value of business acquired 146,494 (7,999) 138,495 Market risk benefits asset — 48,759 48,759 Deferred federal income tax asset 57,867 (48,835) 9,032 Amounts recoverable from reinsurer, net of allowance for credit losses 1,723,347 (34,559) 1,688,788 Other assets 110,339 352 110,691 Total Assets 13,100,227 (317,282) 12,782,945 Liabilities: Future policy benefits: Universal life and annuity contracts 8,498,684 (8,498,684) — Traditional life reserves 919,650 (919,650) — Liability for policyholder account balances — 7,661,785 7,661,785 Additional liability for benefits in excess of account balance — 148,708 148,708 Liability for future policy benefits — 900,146 900,146 Market risk benefits liability — 215,777 215,777 Other liabilities 166,557 (9,075) 157,482 Total liabilities 11,093,016 (500,993) 10,592,023 Stockholders' Equity: Accumulated other comprehensive income (loss) (416,397) (61,822) (478,219) Retained earnings 2,381,856 245,533 2,627,389 Total stockholders' equity 2,007,211 183,711 2,190,922 Total liabilities and stockholders' equity 13,100,227 (317,282) 12,782,945 Interim Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 36,063 (2,253) 33,810 Traditional life and SPIAWLC premiums 21,639 698 22,337 Other revenues 5,922 (161) 5,761 Total Revenues 143,873 (1,716) 142,157 Benefits and Expenses: Life and other policy benefits 37,356 (9,588) 27,768 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (33,571) (33,571) Amortization of deferred transaction costs 31,679 (10,066) 21,613 Universal life and annuity contract interest 17,548 24,687 42,235 Total benefit and expenses 115,970 (18,711) 97,259 Federal income taxes 6,142 3,568 9,710 Net earnings 21,761 13,427 35,188 Basic earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Diluted earnings per share: Class A (Note 4) 6.15 3.80 9.95 Class B (Note 4) 3.08 1.90 4.98 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands, except per share amounts) Premiums and other revenues: Universal life and annuity contract charges $ 101,406 (1,978) 99,428 Traditional life and SPIAWLC premiums 65,619 5,500 71,119 Other revenues 17,297 (161) 17,136 Total Revenues 395,329 3,361 398,690 Benefits and Expenses: Life and other policy benefits 114,432 (26,951) 87,481 Remeasurement gain/loss — 9,827 9,827 Market risk benefits expense — (150,069) (150,069) Amortization of deferred transaction costs 88,451 (20,902) 67,549 Universal life and annuity contract interest (11,058) 13,524 2,466 Total benefit and expenses 284,115 (174,571) 109,544 Federal income taxes 22,504 37,365 59,869 Net earnings 88,710 140,567 229,277 Basic earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Diluted earnings per share: Class A (Note 4) 25.09 39.75 64.84 Class B (Note 4) 12.54 19.88 32.42 Interim Condensed Consolidated Statement of Changes in Stockholders' Equity: Three Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at June 30, 2022 $ 2,348,935 227,306 2,576,241 Net earnings 21,761 13,427 35,188 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at June 30, 2022 (287,430) (156,779) (444,209) Other comprehensive income (loss), net of income tax (181,077) (106,132) (287,209) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at June 30, 2022 — 96,167 96,167 Impact of discount rate changes during the period — 51,262 51,262 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at June 30, 2022 5,391 932 6,323 Change in translation adjustments during period 48 3 51 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at June 30, 2022 (295,138) (59,680) (354,818) Change during period (179,894) (54,867) (234,761) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at June 30, 2022 2,095,549 167,626 2,263,175 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Retained Earnings: Balance at December 31, 2021 $ 2,281,986 100,166 2,382,152 Net earnings 88,710 140,567 229,277 Balance at September 30, 2022 2,370,696 240,733 2,611,429 Balance at December 31, 2022 2,381,856 245,533 2,627,389 Accumulated Other Comprehensive Income (Loss): Unrealized gains (losses) on non-impaired securities: Balance at December 31, 2021 226,220 140,889 367,109 Other comprehensive income (loss), net of income tax (694,727) (403,800) (1,098,527) Balance at September 30, 2022 (468,507) (262,911) (731,418) Balance at December 31, 2022 (419,965) (233,466) (653,431) Change in LFPB due to discount rate changes: Balance at December 31, 2021 — (60,121) (60,121) Impact of discount rate changes during the period — 207,550 207,550 Balance at September 30, 2022 — 147,429 147,429 Balance at December 31, 2022 — 170,701 170,701 Foreign currency translation adjustments: Balance at December 31, 2021 5,100 928 6,028 Change in translation adjustments during period 339 7 346 Balance at September 30, 2022 5,439 935 6,374 Balance at December 31, 2022 5,507 943 6,450 Total Accumulated Other Comprehensive Income (Loss): Balance at December 31, 2021 215,953 81,696 297,649 Change during period (690,985) (196,243) (887,228) Balance at September 30, 2022 (475,032) (114,547) (589,579) Balance at December 31, 2022 (416,397) (61,822) (478,219) Total stockholders' equity: Balance at December 31, 2021 2,539,691 181,862 2,721,553 Balance at September 30, 2022 1,937,416 126,186 2,063,602 Balance at December 31, 2022 2,007,211 183,711 2,190,922 Interim Condensed Consolidated Statement of Cash Flows: Nine Months Ended September 30, 2022 As previously Reported Effect of Change As Currently Reported (In thousands) Cash flows from operating activities: Net earnings $ 88,710 140,567 229,277 Adjustments to reconcile net earnings to net cash from operating activities: Universal life and annuity contract interest (11,058) 13,524 2,466 (Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired 47,694 (23,396) 24,298 (Increase) decrease in reinsurance recoverable 81,454 61,012 142,466 (Increase) decrease in other assets (333) 22 (311) Increase (decrease) in liabilities for future policy benefits 93,088 (83,024) 10,064 Increase (decrease) in market risk benefits liability — (149,083) (149,083) Increase (decrease) in deferred Federal income tax 15,658 37,365 53,023 Increase (decrease) in other liabilities (15,347) 159 (15,188) Net cash provided by (used in) operating activities 234,590 (2,854) 231,736 Cash flows from financing activities: Deposits to account balances for universal life and annuity contracts 258,248 (5,375) 252,873 Return of account balances on universal life and annuity contracts (637,119) 8,219 (628,900) Net cash provided by (used in) financing activities (379,125) 2,844 (376,281) Effect of foreign exchange 429 10 439 The following table summarizes the restated Deferred policy acquisition costs ("DPAC") and Deferred sales inducements ("DSI") balances as of the transition date, January 1, 2021, due to the adoption of ASU 2018-12. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred policy acquisition costs: Balance, December 31, 2020 $ 4,014 96,513 13,399 157,186 103,179 7,789 Removal of shadow balances in Accumulated other comprehensive income (loss) — 47,620 — 27,076 239,099 — Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred sales inducements: Balance, December 31, 2020 $ — — — — 43,845 — Removal of shadow balances in Accumulated other comprehensive income (loss) — — — — 52,533 — Adjusted balance, January 1, 2021 $ — — — — 96,378 — The following table summarizes restated DPAC and DSI balances by product line in the Consolidated Balance Sheet as of January 1, 2021. DPAC Balances DSI Balances (In thousands) Domestic traditional life $ 4,014 — Domestic universal life 144,133 — International traditional life 13,399 — International universal life 184,262 — Annuities, excluding SPIAs with life contingencies 342,278 96,378 ONL & Affiliates 7,789 — Balance Sheet balance as of January 1, 2021 $ 695,875 96,378 The following table summarizes the restated Liability for policyholder account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Universal life and annuity contracts balance, December 31, 2020 $ 1,267,764 740,839 7,026,713 Transfer of balances to Additional liabilities in excess of account balance (45,136) (63,046) (11,192) Transfer of balances to Liability for future policy benefits 66 107 (200,894) Transfer of balances to Market risk benefits — — (205,611) Change in embedded derivative on reserves — — (131,573) Liability for policyholder account balances, January 1, 2021 1,222,694 677,900 6,477,443 Less reinsurance recoverable — — (1,677,898) Adjusted balance, January 1, 2021, net of reinsurance $ 1,222,694 677,900 4,799,545 The following table summarizes the Additional liability in excess of account balances as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, December 31, 2020 $ — — — Transfer of balances from universal life ("UL") and annuity contracts 45,136 63,046 11,192 Adjusted balance, January 1, 2021 45,136 63,046 11,192 Less reinsurance recoverable — — (11,192) Adjusted balance, January 1, 2021, net of reinsurance $ 45,136 63,046 — The following table summarizes the restated Liability for future policy benefits balance as of January 1, 2021 for the adoption of ASU 2018-12. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Traditional life reserve balance, December 31, 2020 $ 56,894 70,426 2,350 768,433 Transfer of balances from UL and annuity contracts (66) (107) 200,894 — Change in discount rate assumptions 36,479 26,131 37,390 86,016 Change in cash flow assumptions, effect of net premiums exceeding gross premiums 7,937 — — — Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability — — (3,160) — Other Adjustments 1,163 (1,048) 653 12,403 Adjustment for removal of related balances in accumulated other comprehensive income — — — — Liability for future policy benefit balance, January 1, 2021 102,407 95,402 238,127 866,852 Less reinsurance recoverable (13,680) (607) (238,127) (33,731) Adjusted balance, January 1, 2021, net of reinsurance $ 88,727 94,795 — 833,121 The following table summarizes the Market risk benefits liability balance as of January 1, 2021 for the adoption of ASU 2018-12. (In thousands) Balance, December 31, 2020 $ — Transfer of balances from UL and annuity contracts 205,611 Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk 95,990 Adjustment for the cumulative effect of changes in the instrument-specific credit risk — Total adjustment for the difference between carrying amount and fair value 95,990 Adjusted balance, January 1, 2021 301,601 Less reinsurance recoverable (73,651) Adjusted balance, January 1, 2021, net of reinsurance $ 227,950 The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheet as of January 1, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 102,407 — Domestic universal life 1,222,694 45,136 — — International traditional life — — 95,402 — International universal life 677,900 63,046 — — SPIAs with life contingencies — — 238,127 — Annuities, excluding SPIAs with life contingencies 6,477,443 11,192 — 301,601 ONL & Affiliates — — 866,852 — Balance Sheet balances as of January 1, 2021 $ 8,378,037 119,374 1,302,788 301,601 The following table presents the effect of the transition adjustment, net of foreign exchange and deferred tax adjustments, on total equity for the adoption of ASU 2018-12 as of January 1, 2021. January 1, 2021 Retained Earnings Accumulated Other Comprehensive Income Total (In thousands) Liability for future policy benefits $ (9,650) (112,734) (122,384) Liability for policyholder account balances 303,503 — 303,503 Additional liability for excess death/annuitization benefits (85,463) — (85,463) Deferred policy acquisition costs — 247,897 247,897 Deferred sales inducements — 41,501 41,501 Market risk benefits (180,080) — (180,080) Total $ 28,310 176,664 204,974 The following tables summarize restated DPAC, DSI, and VOBA balances as of December 31, 2021 and the changes in these balances subsequent to the January 1, 2021 transition date. The balances as of December 31, 2021 establish the beginning balances for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Policy Acquisition Costs: Adjusted balance, January 1, 2021 $ 4,014 144,133 13,399 184,262 342,278 7,789 Capitalization additions 19 33,447 — 1,072 38,836 4,176 Amortization (585) (9,265) (984) (17,666) (40,187) (676) Experience adjustment — (567) — (112) 970 — Adjusted balance, December 31, 2021 $ 3,448 167,748 12,415 167,556 341,897 11,289 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Deferred Sales Inducements: Adjusted balance, January 1, 2021 $ — — — — 96,378 — Capitalization additions — — — — 18,117 — Amortization — — — — (11,775) — Experience adjustment — — — — 256 — Adjusted balance, December 31, 2021 $ — — — — 102,976 — ONL & Affiliates (In thousands) Value of Business Acquired: Balance, January 1, 2021 $ 162,968 Capitalization additions — Amortization (13,560) Experience adjustment — Balance, December 31, 2021 $ 149,408 The following table summarizes restated DPAC, DSI, and VOBA balances in the Consolidated Balance Sheet as of December 31, 2021. DPAC DSI VOBA (In thousands) Domestic traditional life $ 3,448 — — Domestic universal life 167,748 — — International traditional life 12,415 — — International universal life 167,556 — — SPIAs with life contingencies — — — Annuities, excluding SPIAs with life contingencies 341,897 102,976 — ONL & Affiliates 11,289 — 149,408 Balance Sheet balances as of December 31, 2021 $ 704,353 102,976 149,408 The following table summarizes the restated Liability for policyholder account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 $ 1,222,694 677,900 6,477,443 Issuances — — — Premiums received 225,349 46,147 430,846 Policy charges (76,147) (68,800) (28,643) Surrenders and withdrawals (47,483) (47,644) (580,269) Benefit payments (25,418) (2,040) (207,302) Interest credited 89,508 36,902 155,783 Other 23,555 5,121 (86,558) Adjusted balance, December 31, 2021 1,412,058 647,586 6,161,300 Less reinsurance recoverable — — (1,458,076) Adjusted balance, December 31, 2021 net of reinsurance $ 1,412,058 647,586 4,703,224 The following table summarizes the restated Additional liability in excess of account balances as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Adjusted balance, January 1, 2021 net of reinsurance $ 45,136 63,046 — Beginning balance before shadow reserve adjustments 45,136 63,046 11,192 Effect of changes in cash flow ("CF") assumptions 7,061 (14,524) — Effect of actual variances from expected experience — — 1,512 Adjusted beginning of year balance: 52,197 48,522 12,704 Issuances — — — Interest accrual 4,767 3,264 459 Assessments collected 14,775 8,304 749 Benefit payments (17,687) (10,565) (1,198) Derecognition (lapses and withdrawals) 45 (1,189) 4 Ending balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of shadow reserve adjustments — — — Adjusted balance, December 31, 2021 54,097 48,336 12,718 Less: Reinsurance recoverable — — (12,718) Adjusted balance, December 31, 2021 net of reinsurance $ 54,097 48,336 — The following table summarizes the restated Liability for future policy benefits balance as of December 31, 2021 and the changes in this balance subsequent to the January 1, 2021 transition date. The balance as of December 31, 2021 establishes the beginning balance for reporting the results for the nine months ended September 30, 2022. Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Adjusted balance, January 1, 2021 $ 102,407 95,402 238,127 866,852 Beginning balance at original discount rate 65,928 69,270 200,737 780,836 Effect of changes in CF assumptions — — (316) — Effect of actual variances from expected experience (525) (252) 5,724 114 Adjusted beginning of year balance: 65,403 69,018 206,145 780,950 Issuances — — 39,338 227 Interest accrual 4,058 4,391 7,076 23,801 Net premium collected 16 5,602 — 35,640 Benefit payments (6,538) (17,221) (22,173) (56,616) Derecognition (lapses and withdrawals) — — (6,840) — Other 597 2,608 358 (770) Ending balance at original discount rate 63,536 64,398 223,904 783,232 Effect of changes in discount rate 26,933 17,186 20,646 34,913 Adjusted balance, December 31, 2021 90,469 81,584 244,550 818,145 Less reinsurance recoverable (13,841) (578) (211,912) (31,476) Adjusted balance, December 31, 2021 net of reinsurance $ 76,628 81,006 32,638 786,669 The following table summarizes the net Market risk benefit liability balance as of December 31, 2021 and the changes in this net balance subsequent to the January 1, 2021 transition date. The net balance as of December 31, 2021 establishes the beginning net balance for reporting the results for the nine months ended September 30, 2022. (In thousands) Adjusted balance, January 1, 2021 $ 301,601 Balance, beginning of year, before effect of changes in instrument-specific credit risk: 301,601 Issuances 3,184 Interest accrual — Attributed fees collected 38,182 Benefit payments — Effect of changes in interest rates (36,112) Effect of changes in equity markets — Effect of changes in equity index volatility — Actual policyholder behavior different from expected behavior (7,022) Effect of changes in future expected policyholder behavior — Effect of changes in other future expected assumptions — Balance, end of year, before effect of changes in instrument-specific credit risk 299,833 Effect of changes in the instrument-specific credit risk — Adjusted balance, December 31, 2021 299,833 Less reinsurance recoverable, end of year (68,238) Adjusted balance, December 31, 2021 net of reinsurance $ 231,595 The following table summarizes restated Future policyholder obligations liability and the Market risk benefits liability balances in the Consolidated Balance Sheets as of December 31, 2021. Policyholder Account Balances Additional Liability for Benefits Liability for Future Policy Benefits Market Risk Benefits Liability (In thousands) Domestic traditional life $ — — 90,469 — Domestic universal life 1,412,058 54,097 — — International traditional life — — 81,584 — International universal life 647,586 48,336 — — SPIAs with life contingencies — — 244,550 — Annuities, excl. SPIAs with life contingencies 6,161,300 12,718 — 299,833 ONL & Affiliates — — 818,145 — Balances as of December 31, 2021 $ 8,220,944 115,151 1,234,748 299,833 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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). Three Months Ended September 30, 2023 2022 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 64,725 35,188 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 64,725 35,188 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 62,895 1,830 34,193 995 Net earnings $ 62,895 1,830 34,193 995 Denominator: Basic earnings per share - weighted-average shares 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 Basic earnings per share $ 18.30 9.15 9.95 4.98 Diluted earnings per share $ 18.30 9.15 9.95 4.98 Nine Months Ended September 30, 2023 2022 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 106,663 229,277 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 106,663 229,277 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 103,647 3,016 222,793 6,484 Net earnings $ 103,647 3,016 222,793 6,484 Denominator: Basic earnings per share - weighted-average shares 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 Basic earnings per share $ 30.17 15.08 64.84 32.42 Diluted earnings per share $ 30.17 15.08 64.84 32.42 |
Deferred Transaction Costs (Tab
Deferred Transaction Costs (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Charges, Insurers [Abstract] | |
Summary of Deferred Policy Acquisition Costs | A summary of information related to DPAC is provided in the following table. Nine Months Ended September 30, 2023 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 3,159 176,034 11,151 152,287 306,489 14,762 Capitalization additions 11 11,646 — 394 5,458 3,172 Amortization (213) (9,470) (1,046) (11,176) (26,241) (644) Experience adjustment 3 (102) 22 (25) 161 5 Balance, end of period $ 2,960 178,108 10,127 141,480 285,867 17,295 Nine Months Ended September 30, 2022 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 3,448 167,748 12,415 167,556 341,897 11,289 Capitalization additions 14 19,884 — 113 15,010 3,198 Amortization (232) (11,924) (956) (11,648) (24,591) (552) In force ceded — — — — (19,622) — Experience adjustment — 29 — (6) 42 — Balance, end of period $ 3,230 175,737 11,459 156,015 312,736 13,935 The following table summarizes DPAC balances by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ 2,960 3,230 Domestic universal life 178,108 175,737 International traditional life 10,127 11,459 International universal life 141,480 156,015 Annuities, excl. SPIAs with life contingencies 285,867 312,736 ONL & Affiliates 17,295 13,935 Total $ 635,837 673,112 |
Summary of Deferred Sale Inducement Cost | A summary of information related to DSI is provided in the following tables. Nine Months Ended September 30, 2023 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ — — — — 85,303 — Capitalization additions — — — — (4,199) — Amortization — — — — (6,212) — Experience adjustment — — — — 36 — Balance, end of period $ — — — — 74,928 — Nine Months Ended September 30, 2022 Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ — — — — 102,976 — Capitalization additions — — — — 4,901 — Amortization — — — — (8,091) — In force ceded — — — — (11,219) — Experience adjustment — — — — 31 — Balance, end of period $ — — — — 88,598 — The following table summarizes DSI balances by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ — — Domestic universal life — — International traditional life — — International universal life — — SPIAs with life contingencies — — Annuities, excluding SPIAs with life contingencies 74,928 88,598 ONL & Affiliates — — Total $ 74,928 88,598 |
Summary Of Value of Business Acquired | A summary of information related to VOBA is provided in the following table. September 30, 2023 2022 (In thousands) Balance, beginning of period $ 138,495 149,408 Amortization (6,523) (9,518) Experience adjustment 32 — Balance as of end of period $ 132,004 139,890 |
Schedule of Estimated Future Amortization of Value of Business Acquired (VOBA) | Estimated future amortization of VOBA, net of interest, is as follows as of September 30, 2023: (In thousands) Remainder of 2023 $ 2,101 2024 8,141 2025 7,734 2026 7,326 2027 6,942 |
Summary of Cost Of Reinsurance | A summary of information related to COR is provided in the following table. Nine Months Ended September 30, 2023 2022 SPIAs WLC Annuities excl. SPIAs WLC SPIAs WLC Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 11,897 66,431 12,591 77,095 Additions — — — — Amortization (604) (7,779) (503) (7,689) Experience Adjustment — — — — Balance as of end of period $ 11,293 58,652 12,088 69,406 The following table summarizes the COR balance by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) SPIAs with life contingencies $ 11,293 12,088 Annuities, excl. SPIAs with life contingencies 58,652 69,406 Total $ 69,945 81,494 |
Policyholder Obligations (Table
Policyholder Obligations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Summary of Liability for Policyholders' Account Balances | The following tables summarize balances and changes in the Liability for policyholder account balances. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,409,471 575,096 5,677,218 Premiums received 85,794 27,508 85,174 Policy charges (49,789) (56,523) (22,595) Surrenders and withdrawals (50,399) (37,170) (446,357) Benefit payments (21,739) (1,984) (141,361) Interest credited 20,509 7,004 41,292 Change in embedded derivative 26,014 4,203 (36,488) Other 2,218 (614) (18,877) Balance, end of period 1,422,079 517,520 5,138,006 Less reinsurance recoverable — — (1,135,906) Ending balance, net of reinsurance $ 1,422,079 517,520 4,002,100 Weighted-average crediting rate 2.14 % 1.62 % 0.94 % Net amount at risk $ 1,614 6,443 1,208,274 Cash surrender value $ 1,209,991 485,660 4,883,247 Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,412,058 647,586 6,161,300 Issuances — — — Premiums received 120,956 31,738 196,463 Policy charges (53,411) (52,904) (22,259) Surrenders and withdrawals (41,785) (32,791) (369,437) Benefit payments (16,428) (1,550) (148,832) Interest credited 37,863 13,772 57,969 Change in embedded derivative (54,767) (14,161) (4,515) Other 371 1,476 (15,216) Balance, end of period 1,404,857 593,166 5,855,473 Less reinsurance recoverable — — (1,290,600) Ending balance, net of reinsurance $ 1,404,857 593,166 4,564,873 Weighted-average crediting rate 4.13 % 2.97 % 1.24 % Net amount at risk $ 1,638 7,318 1,111,573 Cash surrender value $ 1,228,130 555,903 5,473,356 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 1,422,079 1,404,857 International universal life 517,520 593,166 Annuities excl. SPIAs with life contingencies 5,138,006 5,855,473 Unearned revenue reserve 1,286 5,885 Total $ 7,078,891 7,859,381 |
Summary of Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following table presents the account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. September 30, 2023 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 1,810,654 1,901 17,311 116,475 1,946,341 2.00% - 2.99% 522,451 7,940 88,704 48,025 667,120 3.00% - 3.99% 423,674 37,995 2,691 27 464,387 4.00% and greater 385,534 — — 37 385,571 Total $ 3,142,313 47,836 108,706 164,564 3,463,419 September 30, 2022 At Guaranteed Minimum 1-50 Basis Points Above 51-150 Basis Points Above Greater Than 150 Basis Points Above Total (In thousands) Range of guaranteed minimum crediting rate: Less than 2.00% $ 2,044,059 2,104 90,636 124,486 2,261,285 2.00% - 2.99% 509,776 7,997 104,561 — 622,334 3.00% - 3.99% 505,906 44,369 2,868 26 553,169 4.00% and greater 410,007 — — 35 410,042 Total $ 3,469,748 54,470 198,065 124,547 3,846,830 |
Summary of Liability for Additional Insurance Liabilities | The following table provides the balances and changes in insurance liabilities related to universal life and annuities that are in addition to the account balance, including annuitization benefits and death or other insurance benefits. Nine Months Ended September 30, 2023 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 63,804 46,402 38,502 Beginning balance before shadow reserve adjustments 63,804 46,402 38,502 Effect of changes in cash flow assumptions 1,870 6,055 (1,759) Effect of actual variances from expected experience 5,898 (736) 625 Adjusted beginning of period balance 71,572 51,721 37,368 Issuances — — — Interest accrual 950 340 1,093 Assessments collected 15,875 7,546 (98) Benefit payments (18,318) (7,610) (1,343) Derecognition (lapses and withdrawals) — — — Other (39) (1,002) (15) Ending balance before shadow reserve adjustments 70,040 50,995 37,005 Effect of shadow reserve adjustments — — — Balance, end of period 70,040 50,995 37,005 Less reinsurance recoverable, end of period — — (37,005) Net additional liability, after reinsurance recoverable $ 70,040 50,995 — Nine Months Ended September 30, 2022 Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 54,097 48,336 12,718 Beginning balance before shadow reserve adjustments 54,097 48,336 12,718 Effect of changes in cash flow assumptions 3,844 (18) 24,599 Effect of actual variances from expected experience 5,493 7,118 1,843 Adjusted beginning of period balance 63,434 55,436 39,160 Issuances — — — Interest accrual 1,993 1,154 589 Assessments collected 13,436 6,011 (69) Benefit payments (16,031) (15,768) (1,146) Derecognition (lapses and withdrawals) — — — Other (30) 524 (9) Ending balance before shadow reserve adjustments 62,802 47,357 38,525 Effect of shadow reserve adjustments — — — Balance, end of period 62,802 47,357 38,525 Less reinsurance recoverable, end of period — — (38,525) Net additional liability, after reinsurance recoverable $ 62,802 47,357 — The following table summarizes the Additional liability for benefits in excess of account balance by line of business as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic universal life $ 70,040 62,802 International universal life 50,995 47,357 Annuities 37,005 38,525 Total $ 158,040 148,684 The following table provides the amount of gross assessments and interest expense related to annuitization and death or other insurance benefits recognized in the Condensed Consolidated Statements of Earnings related to additional insurance liabilities. Gross Assessments Interest Expenses Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic universal life $ 45,525 39,029 950 1,993 International universal life 30,401 25,005 340 1,154 Annuities (127) (2,952) 1,093 589 Total $ 75,799 61,082 2,383 3,736 The following tables summarize the annualized actual experience and expected experience for mortality and lapses of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.84% 2.12% 1.32% 1.89% International traditional life 0.18% 0.41% 0.24% 0.37% Domestic universal life 1.68% 1.91% 1.11% 1.69% International universal life 0.27% 0.25% 0.27% 0.24% SPIAs with life contingencies 11.62% 12.14% 8.44% 8.74% Annuities excl. SPIAs with life contingencies 2.86% 2.61% 2.73% 2.67% ONL & Affiliates 1.05% 0.86% 0.94% 0.82% 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 4.36% 6.02% 6.91% 6.51% International traditional life 8.35% 7.75% 8.03% 7.92% Domestic universal life 5.68% 3.40% 4.74% 4.69% International universal life 11.94% 6.92% 8.39% 7.16% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 6.20% 4.27% 4.05% 4.24% ONL & Affiliates 4.24% 4.75% 3.90% 7.96% The following table provides the weighted-average durations in years of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. September 30, 2023 2022 Domestic traditional life 8.00 8.00 Domestic universal life 8.10 8.10 International traditional life 8.00 8.00 International universal life 8.10 8.10 SPIAs with life contingencies 8.00 8.00 Annuities excl. SPIAs with life contingencies 6.60 6.60 ONL & Affiliates 22.00 22.00 |
Summary for Liability for Future Policy Benefit, Activity | The following tables summarize balances and changes in the Liability for future policy benefits balance for traditional life contracts and single premium immediate annuities with life contingencies. Nine Months Ended September 30, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,744 Beginning balance at original discount rate 660 35,906 — 494,961 Effect of changes in cash flow assumptions (325) 4,019 — 6,353 Effect of actual variances from expected experience 133 (1,139) — (3,726) Adjusted beginning of period balance 468 38,786 — 497,588 Issuances — — — 7,497 Interest accrual (19) 1,121 — 11,972 Net premium collected (132) (3,386) — (29,052) Ending balance at original discount rate 317 36,521 — 488,005 Effect of changes in discount rate assumptions (488) (3,364) — (109,489) Balance, end of period $ (171) 33,157 — 378,516 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,167 191,817 975,999 Beginning balance at original discount rate 62,839 100,976 215,637 1,293,523 Effect of changes in cash flow assumptions (824) 4,433 — 6,876 Effect of actual variances from expected experience (132) (3,872) 3,083 (3,273) Adjusted beginning of period balance 61,883 101,537 218,720 1,297,126 Issuances — — 9,005 7,340 Interest accrual 2,851 4,104 5,305 30,313 Benefit payments (3,825) (4,740) (16,752) (42,932) Derecognition (lapses and withdrawals) — — (5,032) — Other 114 (1,250) (322) (1,694) Ending balance at original discount rate 61,023 99,651 210,924 1,290,153 Effect of changes in discount rate assumptions 4,590 (5,637) (28,456) (377,110) Balance, end of period 65,613 94,014 182,468 913,043 Net liability for future policy benefits 65,784 60,857 182,468 534,527 Less reinsurance recoverable (12,665) (532) (152,949) (24,395) Net liability for future policy benefits, after reinsurance $ 53,119 60,325 29,519 510,132 Nine Months Ended September 30, 2022 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 395 50,123 — 340,287 Beginning balance at original discount rate 706 40,670 — 330,854 Effect of changes in cash flow assumptions — — — 169,179 Effect of actual variances from expected experience 109 (258) — 10,761 Adjusted beginning of period 815 40,412 — 510,794 Issuances — — — 6,217 Interest accrual 1 1,266 — 8,013 Net premium collected (62) (3,605) — (24,214) Ending balance at original discount rate 754 38,073 — 500,810 Effect of changes in discount rate assumptions (389) (2,697) — (57,403) Balance, end of period $ 365 35,376 — 443,407 Present value of expected future policy benefits Balance, beginning of period $ 90,864 131,707 244,551 1,158,431 Beginning balance at original discount rate 64,242 105,103 223,904 1,114,085 Effect of changes in cash flow assumptions — — 172 175,122 Effect of actual variances from expected experience (142) (2,098) 3,032 11,758 Adjusted beginning of year balance 64,100 103,005 227,108 1,300,965 Issuances — — 9,554 5,918 Interest accrual 2,946 4,321 5,440 25,989 Benefit payments (3,661) (3,658) (17,667) (44,116) Derecognition (lapses and withdrawals) — — (4,927) — Other 137 (349) — (95) Ending balance at original discount rate 63,522 103,319 219,508 1,288,661 Effect of changes in discount rate assumptions 6,238 (3,645) (27,724) (248,479) Balance, end of period 69,760 99,674 191,784 1,040,182 Net liability for future policy benefits 69,395 64,298 191,784 596,775 Less reinsurance recoverable (12,431) (553) (161,944) (26,239) Net liability for future policy benefits, after reinsurance $ 56,964 63,745 29,840 570,536 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. September 30, 2023 2022 (In thousands) Domestic traditional life $ 65,784 69,395 International traditional life 60,857 64,298 SPIAs with life contingencies 182,468 191,784 ONL & Affiliates 534,527 596,775 Total $ 843,636 922,252 The following tables summarize the amount of revenue and interest related to traditional life contracts and single premium immediate annuities with life contingencies recognized in the Condensed Consolidated Statements of Earnings. Gross Premiums or Assessments Interest Expense Nine Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Domestic traditional life $ 2,295 2,476 2,870 2,945 International traditional life 9,110 10,061 2,983 3,055 SPIAs with life contingencies 1,151 5,683 5,305 5,440 ONL & Affiliates 56,797 57,711 18,341 17,976 Total $ 69,353 75,931 29,499 29,416 The following table provides the amount of undiscounted expected gross premiums and expected future benefits and expenses for traditional life contracts and single premium immediate annuities with life contingencies. September 30, 2023 2022 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 32,013 103,177 33,319 108,001 International traditional life 162,304 221,506 163,976 225,183 SPIAs with life contingencies — 281,949 — 291,505 ONL & Affiliates 1,411,244 2,272,002 953,990 1,704,224 Total $ 1,605,561 2,878,634 1,151,285 2,328,913 The following tables summarize the annualized actual experience and expected experience for mortality and lapses of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.84% 2.12% 1.32% 1.89% International traditional life 0.18% 0.41% 0.24% 0.37% Domestic universal life 1.68% 1.91% 1.11% 1.69% International universal life 0.27% 0.25% 0.27% 0.24% SPIAs with life contingencies 11.62% 12.14% 8.44% 8.74% Annuities excl. SPIAs with life contingencies 2.86% 2.61% 2.73% 2.67% ONL & Affiliates 1.05% 0.86% 0.94% 0.82% 2023 2022 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 4.36% 6.02% 6.91% 6.51% International traditional life 8.35% 7.75% 8.03% 7.92% Domestic universal life 5.68% 3.40% 4.74% 4.69% International universal life 11.94% 6.92% 8.39% 7.16% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 6.20% 4.27% 4.05% 4.24% ONL & Affiliates 4.24% 4.75% 3.90% 7.96% The following table provides the weighted-average durations in years of the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. September 30, 2023 2022 Domestic traditional life 8.00 8.00 Domestic universal life 8.10 8.10 International traditional life 8.00 8.00 International universal life 8.10 8.10 SPIAs with life contingencies 8.00 8.00 Annuities excl. SPIAs with life contingencies 6.60 6.60 ONL & Affiliates 22.00 22.00 The following table provides the weighted-average interest rates for the Liability for future policy benefits and the Additional liability for benefits in excess of account balance. Interest Accretion Rate Current Discount Rate September 30, September 30, 2023 2022 2023 2022 Domestic traditional life 6.73% 6.80% 5.60% 5.30% Domestic universal life 4.56% 0.98% 4.56% 0.98% International traditional life 5.16% 5.24% 5.60% 5.30% International universal life 1.93% 1.53% 1.93% 1.53% SPIAs with life contingencies 3.48% 3.36% 5.60% 5.30% Annuities excl. SPIAs with life contingencies 1.02% 0.93% 1.02% 0.93% ONL & Affiliates 3.25% 3.25% 6.15% 5.85% |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Insurance [Abstract] | |
Balances of and Changes In Market Risk Benefits | The following tables present the balances of and changes in market risk benefits associated with guaranteed minimum withdrawal benefits, guaranteed annuitization benefits, and guaranteed minimum death benefits. Nine Months Ended September 30, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 97,552 69,466 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 97,552 69,466 — Issuances 64 — — Interest accrual — — — Attributed fees collected 37,572 — — Benefit payments — — — Effect of changes in interest rates (25,485) (5,426) — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (1,304) — — Effect of changes in future expected policyholder behavior (173) — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 108,226 64,040 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 108,226 64,040 — Less reinsurance recoverable, end of period (2,874) (64,373) — Balance, end of period, net of reinsurance $ 105,352 (333) — Net amount at risk $ 1,082,774 125,500 — Weighted-average attained age of contract holders 69.6 67.8 0.0 Nine Months Ended September 30, 2022 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits Guaranteed Minimum Death Benefits (In thousands) Balance, beginning of period $ 231,859 67,974 — Balance, beginning of period, before effect of changes in instrument-specific credit risk 231,859 67,974 — Issuances 420 — — Interest accrual — — — Attributed fees collected 37,587 — — Benefit payments — — — Effect of changes in interest rates (184,636) 1,292 — Effect of changes in equity markets — — — Effect of changes in equity index volatility — — — Actual policyholder behavior different from expected behavior (3,746) — — Effect of changes in future expected policyholder behavior — — — Effect of changes in other future expected assumptions — — — Balance, end of period, before effect of changes in instrument-specific credit risk 81,484 69,266 — Effect of changes in the instrument-specific credit risk — — — Balance, end of period 81,484 69,266 — Less reinsurance recoverable, end of period 2,865 (69,650) — Balance, end of period, net of reinsurance $ 84,349 (384) — Net amount at risk $ 982,619 128,954 — Weighted-average attained age of contract holders 68.9 67.0 0.0 The following table summarizes Market risk benefits liability balances separately by amounts in an asset position and amounts in a liability position to the Market risk benefits liability amounts as of the end of the following periods. September 30, 2023 September 30, 2022 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 48,240 156,466 108,226 51,881 133,365 81,484 Guaranteed annuitization benefits — 64,040 64,040 — 69,266 69,266 Balance, end of period $ 48,240 220,506 172,266 51,881 202,631 150,750 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit cost. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Service cost $ 27 32 81 98 Interest cost 200 145 599 435 Expected return on plan assets (311) (394) (931) (1,181) Amortization of net loss 70 34 209 101 Net periodic benefit cost $ (14) (183) (42) (547) |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Service cost $ 203 260 611 779 Interest cost 410 278 1,227 835 Amortization of prior service cost 14 14 44 44 Amortization of net loss — 585 — 1,754 Net periodic benefit cost $ 627 1,137 1,882 3,412 |
Postretirement Employment Plans Other Than Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs | The following table summarizes the components of net periodic benefit costs. Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 (In thousands) Interest cost $ 60 44 182 130 Amortization of net loss — 52 — 156 Net periodic benefit cost $ 60 96 182 286 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information, by Quarter | A summary of segment information as of September 30, 2023 and December 31, 2022 for the Condensed Consolidated Balance Sheet items and for the three and nine months ended September 30, 2023 and September 30, 2022 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 181,068 151,606 430,741 149,299 — 912,714 Market risk benefits asset — — 48,240 — — 48,240 Total segment assets 1,850,885 836,338 7,596,824 932,773 321,704 11,538,524 Future policyholder obligations 1,568,410 620,153 5,357,477 534,527 — 8,080,567 Market risk benefits liability — — 220,506 — — 220,506 Other policyholder liabilities 24,790 8,069 91,068 13,242 — 137,169 Funds withheld liability — — 1,161,155 — — 1,161,155 December 31, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 179,193 163,438 470,120 153,257 — 966,008 Market risk benefits asset — — 48,759 — — 48,759 Total segment assets 1,803,876 889,022 8,270,315 994,318 335,343 12,292,874 Future policyholder obligations 1,553,624 675,786 5,907,974 573,255 — 8,710,639 Market risk benefits liability — — 215,777 — — 215,777 Other policyholder liabilities 25,596 15,560 118,615 15,318 — 175,089 Funds withheld liability — — 1,333,036 — — 1,333,036 Condensed Consolidated Statements of Earnings: Three Months Ended September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 12,807 22,871 1,895 18,529 — 56,102 Net investment income 4,181 2,229 54,169 8,358 27 68,964 Other revenues 10 2 1,872 2,829 1,028 5,741 Total revenues 16,998 25,102 57,936 29,716 1,055 130,807 Life and other policy benefits 6,180 3,880 1,846 14,651 — 26,557 Policy benefit remeasurement (gain)/loss 1,370 6,469 — 521 — 8,360 Market risk benefits expense — — (29,439) — — (29,439) Amortization of deferred transaction costs 3,407 4,148 10,457 2,314 — 20,326 Universal life and annuity contract interest 638 646 (11,701) — — (10,417) Other operating expenses 8,740 7,300 19,943 4,949 1,498 42,430 Federal income taxes (875) 3,179 22,390 1,481 2,538 28,713 Total expenses 19,460 25,622 13,496 23,916 4,036 86,530 Segment earnings (loss) $ (2,462) (520) 44,440 5,800 (2,981) 44,277 Three Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,466 18,303 5,570 18,808 — 56,147 Net investment income (loss) 8,489 3,986 55,365 7,301 4,363 79,504 Other revenues 26 24 1,584 2,778 1,349 5,761 Total revenues 21,981 22,313 62,519 28,887 5,712 141,412 Life and other policy benefits 6,647 6,419 5,142 9,560 — 27,768 Policy benefit remeasurement (gain)/loss 3,843 (18) 93 5,909 — 9,827 Market risk benefits expense — — (33,571) — — (33,571) Amortization of deferred transaction costs 5,586 3,771 9,022 3,234 — 21,613 Universal life and annuity contract interest 826 2,421 38,988 — — 42,235 Other operating expenses 7,133 4,384 11,614 4,755 1,501 29,387 Federal income taxes (414) 1,138 6,860 1,075 895 9,554 Total expenses 23,621 18,115 38,148 24,533 2,396 106,813 Segment earnings $ (1,640) 4,198 24,371 4,354 3,316 34,599 Nine Months Ended September 30, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 38,229 64,476 12,497 56,185 — 171,387 Net investment income 51,985 16,296 168,439 24,519 20,148 281,387 Other revenues 24 6 5,674 8,154 2,873 16,731 Total revenues 90,238 80,778 186,610 88,858 23,021 469,505 Life and other policy benefits 13,569 9,410 16,582 43,874 — 83,435 Policy benefit remeasurement (gain)/loss 1,370 6,469 — 521 — 8,360 Market risk benefits expense — — 6,733 — — 6,733 Amortization of deferred transaction costs 9,782 12,225 34,463 7,130 — 63,600 Universal life and annuity contract interest 39,985 11,592 1,165 — — 52,742 Other operating expenses 27,162 22,208 60,594 15,167 4,425 129,556 Federal income taxes (545) 6,314 22,437 4,511 6,220 38,937 Total expenses 91,323 68,218 141,974 71,203 10,645 383,363 Segment earnings $ (1,085) 12,560 44,636 17,655 12,376 86,142 Nine Months Ended September 30, 2022 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 39,278 56,612 17,532 57,125 — 170,547 Net investment income (453) (3,051) 171,575 21,438 15,193 204,702 Other revenues 77 63 4,182 8,866 3,948 17,136 Total revenues 38,902 53,624 193,289 87,429 19,141 392,385 Life and other policy benefits 14,425 13,048 22,767 37,241 — 87,481 Policy benefit remeasurement (gain)/loss 3,843 (18) 93 5,909 — 9,827 Market risk benefits expense — — (150,069) — — (150,069) Amortization of deferred transaction costs 12,127 12,610 32,741 10,071 — 67,549 Universal life and annuity contract interest (15,751) (7,922) 26,139 — — 2,466 Other operating expenses 20,013 14,121 38,592 14,826 4,738 92,290 Federal income taxes 880 4,518 46,255 3,905 2,988 58,546 Total expenses 35,537 36,357 16,518 71,952 7,726 168,090 Segment earnings $ 3,365 17,267 176,771 15,477 11,415 224,295 |
Schedule of Reconciliation of Segment Premiums and Other Revenues to Condensed Consolidated Financial Statements | Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Premiums and Other Revenues: Premiums and contract revenues $ 56,102 56,147 171,387 170,547 Net investment income 68,964 79,504 281,387 204,702 Other revenues 5,741 5,761 16,731 17,136 Realized gains on investments 25,883 745 25,976 6,305 Total condensed consolidated premiums and other revenues $ 156,690 142,157 495,481 398,690 |
Schedule of Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Federal Income Taxes: Total segment Federal income taxes $ 28,713 9,554 38,937 58,546 Taxes on realized gains on investments 5,435 156 5,455 1,323 Total condensed consolidated Federal income taxes $ 34,148 9,710 44,392 59,869 |
Schedule of Reconciliation of Segment Net Earnings (Loss) to Condensed Consolidated Financial Statements | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Net Earnings: Total segment earnings $ 44,277 34,599 86,142 224,295 Realized gains on investments, net of taxes 20,448 589 20,521 4,982 Total condensed consolidated net earnings $ 64,725 35,188 106,663 229,277 |
Schedule of Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | September 30, December 31, 2023 2022 (In thousands) Assets: Total segment assets $ 11,538,524 12,292,874 Other unallocated assets 520,906 490,071 Total condensed consolidated assets $ 12,059,430 12,782,945 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Grant Activity | The following table shows all grants issued to officers and directors during the three and nine months ended September 30, 2023 and 2022. Grants made are based upon the 20-day moving average closing market price of the Company's Class A common share at the grant date. Three Months Ended September 30, 2023 September 30, 2022 Officers Directors Officers Directors SARs — — — — RSUs — — — — PSUs — — — — Nine Months Ended September 30, 2023 September 30, 2022 Officers Directors Officers Directors SARs — — — — RSUs — 2,170 — 3,710 PSUs — — — — |
Schedule of Stock Options Activity | A summary of awards by type and related activity is detailed below. Options Outstanding Shares Shares Weighted- Stock Options : Balance at January 1, 2023 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at September 30, 2023 291,000 — $ — |
Schedule of Other Share / Unit Award Activity | Liability Awards SARs RSUs PSUs Other Share/Unit Awards : Balance at January 1, 2023 286,589 21,861 24,845 Exercised (2,860) (3,710) (6,066) Forfeited (5,927) (689) (335) Granted — 2,170 — Balance at September 30, 2023 277,802 19,632 18,444 |
Schedule of Information About Stock Options and SARs Outstanding | The following table summarizes information about SARs outstanding at September 30, 2023. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $210.22 21,650 0.2 years 21,650 $216.48 10,342 2.4 years 10,342 $311.16 7,807 3.4 years 7,807 $334.34 7,443 4.2 years 7,443 $303.77 9,357 5.2 years 9,357 $252.91 16,626 6.2 years 16,626 $192.10 35,861 7.2 years 23,899 $218.44 59,087 8.2 years 19,731 $220.61 109,629 9.2 years — Totals 277,802 116,855 Aggregate intrinsic value (in thousands) $ 58,799 $ 23,467 |
Schedule of Assumptions Employed Using Black-Scholes Option Pricing Model | In estimating the fair value of the SARs outstanding at September 30, 2023 and December 31, 2022, the Company employed the Black-Scholes option pricing model with assumptions detailed below. September 30, December 31, Expected term 0.2 to 0.8 years 0.9 to 6.7 years Expected volatility weighted-average 40.06 % 36.18 % Expected dividend yield 0.08 % 0.13 % Risk-free rate weighted-average 5.50 % 4.19 % |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Realized Investment Gains and Losses | The table below presents realized gains and losses for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 231 27 344 5,254 Realized losses on disposal — (190) — (193) Real estate gains (losses) — 908 (20) 1,244 Other 25,652 — 25,652 — Totals $ 25,883 745 25,976 6,305 |
Schedule of Debt Securities, Available-for-Sale Securities | The table below presents amortized costs and fair values of debt securities available-for-sale at September 30, 2023. Debt Securities Available-for-Sale Amortized Gross Gross Fair Allowance for Credit Losses (In thousands) U.S. agencies $ 12,102 — (460) 11,642 — U.S. Treasury 2,820 — (141) 2,679 — States and political subdivisions 454,240 97 (79,618) 374,719 — Foreign governments 62,951 — (19,551) 43,400 — Public utilities 611,901 — (76,290) 535,611 — Corporate 5,665,482 9 (648,756) 5,016,735 — Commercial mortgage-backed 22,452 — (2,023) 20,429 — Residential mortgage-backed 265,707 3 (19,150) 246,560 — Asset-backed 896,488 300 (96,009) 800,779 — Totals $ 7,994,143 409 (941,998) 7,052,554 — 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 Gross Gross Fair Allowance for Credit Losses (In thousands) 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 — |
Schedule of Gross Unrealized Losses and Fair Values of Debt Securities, 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 September 30, 2023. Debt Securities Available-for-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. agencies $ 4,539 (296) 7,103 (164) 11,642 (460) U.S. Treasury 1,003 (11) 1,676 (130) 2,679 (141) States and political subdivisions 46,636 (2,704) 312,203 (76,914) 358,839 (79,618) Foreign governments — — 43,400 (19,551) 43,400 (19,551) Public utilities 2,434 (19) 533,177 (76,271) 535,611 (76,290) Corporate 260,567 (12,271) 4,702,597 (636,485) 4,963,164 (648,756) Commercial mortgage-backed 4,846 (153) 15,583 (1,870) 20,429 (2,023) Residential mortgage-backed 28,534 (1,207) 217,726 (17,943) 246,260 (19,150) Asset-backed 146,237 (5,195) 608,626 (90,814) 754,863 (96,009) Totals $ 494,796 (21,856) 6,442,091 (920,142) 6,936,887 (941,998) 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 that 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 Unrealized Fair Unrealized Fair Unrealized (In thousands) U.S. 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 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) Totals $ 6,673,701 (635,555) 653,807 (194,656) 7,327,508 (830,211) |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investments in debt securities available-for-sale at September 30, 2023, 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 $ 845,731 835,118 Due after 1 year through 5 years 2,725,641 2,576,629 Due after 5 years through 10 years 1,303,748 1,123,633 Due after 10 years 1,934,376 1,449,406 6,809,496 5,984,786 Mortgage and asset-backed securities 1,184,647 1,067,768 Totals before allowance for credit losses 7,994,143 7,052,554 Allowance for credit losses — — Totals $ 7,994,143 7,052,554 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. September 30, 2023 December 31, 2022 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 114,675 23.1 $ 100,757 19.7 50% to 60% 158,291 31.9 145,093 28.4 60% to 70% 192,448 38.8 217,445 42.6 70% to 80% 30,183 6.2 47,300 9.3 Gross balance 495,597 100.0 510,595 100.0 Market value adjustment (1,242) (0.3) (1,290) (0.3) Allowance for credit losses (4,296) (0.9) (3,575) (0.7) Totals $ 490,059 98.8 $ 505,730 99.0 (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 Loans | The following table represents the mortgage loan allowance for credit losses. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 3,736 2,573 3,575 2,987 Provision during the period 560 1,225 721 811 Total ending allowance for credit losses $ 4,296 3,798 4,296 3,798 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities that are Measured at Fair Value on a 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. September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,052,554 — 6,562,141 490,413 Debt securities, trading 1,000,355 — 872,462 127,893 Equity securities 21,913 18,475 3,438 — Mortgage loans 19,285 — — 19,285 Derivatives, index options 55,278 — — 55,278 Short-term investments 7,821 — 7,821 — Total assets $ 8,157,206 18,475 7,445,862 692,869 Policyholder account balances (a) $ 383,034 — — 383,034 Market risk benefits liabilities, net (b) 172,266 — — 172,266 Embedded derivative contra-liability (c) (349,275) — (338,252) (11,023) Other liabilities (d) 61,379 — — 61,379 Total liabilities $ 267,404 — (338,252) 605,656 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the fair value of the net market risk benefits liability which is recorded at fair value. (c) Represents the embedded derivative for funds withheld which is recorded at fair value. (d) Represents the liability for share-based compensation which is recorded at fair value. 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 security, 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) $ 387,686 — — 387,686 Market risk benefits liabilities, net (b) 167,018 — — 167,018 Embedded derivative contra-liability (c) (334,955) — (324,712) (10,243) Other liabilities (d) 20,542 — — 20,542 Total liabilities $ 240,291 — (324,712) 565,003 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the fair value of the net market risk benefits liability which is recorded at fair value. (c) Represents the embedded derivative for funds withheld which is recorded at fair value. (d) Represents the liability for share-based compensation which is recorded at fair value. |
Schedule of Assets by Pricing Source and Fair Value Hierarchy Level | The following tables present, by pricing source and fair value hierarchy level, the Company's assets that are measured at fair value on a recurring basis. September 30, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,948,649 — 6,562,141 386,508 Priced internally 103,905 — — 103,905 Subtotal 7,052,554 — 6,562,141 490,413 Debt securities, trading: Priced by third-party vendors 1,000,355 — 872,462 127,893 Priced internally — — — — Subtotal 1,000,355 — 872,462 127,893 Equity securities: Priced by third-party vendors 21,913 18,475 3,438 — Priced internally — — — — Subtotal 21,913 18,475 3,438 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 19,285 — — 19,285 Subtotal 19,285 — — 19,285 Derivatives, index options: Priced by third-party vendors 55,278 — — 55,278 Priced internally — — — — Subtotal 55,278 — — 55,278 Short-term Investments: Priced by third-party vendors 7,821 — 7,821 — Priced internally — — — — Subtotal 7,821 — 7,821 — Total $ 8,157,206 18,475 7,445,862 692,869 Percent of total 100.0 % 0.2 % 91.3 % 8.5 % 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 Priced internally — — — — 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 by third-party vendors — — — — Priced internally 19,334 — — 19,334 Subtotal 19,334 — — 19,334 Derivatives, index options: Priced by third-party vendors 23,669 — — 23,669 Priced internally — — — — Subtotal 23,669 — — 23,669 Short-term investments: Priced by third-party vendors 3,937 — 3,937 — Priced internally — — — — 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 Significant Unobservable Inputs for Fair Value Measurements | The following tables provide additional information about fair value measurements for Level 3 for which significant unobservable inputs were utilized to determine fair value. Three Months Ended September 30, 2023 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2023 $ 483,980 141,624 72,863 19,422 717,889 Total realized and unrealized gains (losses): Included in net earnings — (1,492) (19,809) (104) (21,405) Included in other comprehensive income (loss) (16,193) — — — (16,193) Purchases, sales, issuances and settlements, net: Purchases 28,582 2,223 14,070 — 44,875 Settlements (5,956) (14,462) (11,846) (33) (32,297) Balance at end of period September 30, 2023 $ 490,413 127,893 55,278 19,285 692,869 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: Net investment income $ — (1,492) (24,785) (104) (26,381) Total $ — (1,492) (24,785) (104) (26,381) Three Months Ended September 30, 2023 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities, net Total Liabilities Beginning balance, July 1, 2023 $ (9,426) 430,320 50,295 208,803 679,992 Total realized and unrealized (gains) losses: Included in net earnings (1,597) (49,510) 11,068 (36,514) (76,553) Purchases, sales, issuances and settlements, net: Purchases — 14,070 — — 14,070 Issuances — — 239 (23) 216 Settlements — (11,846) (223) — (12,069) Balance at end of period September 30, 2023 $ (11,023) 383,034 61,379 172,266 605,656 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 $ (1,597) — — — (1,597) Benefits and expenses — (24,785) 11,068 (36,514) (50,231) Total $ (1,597) (24,785) 11,068 (36,514) (51,828) Three Months Ended September 30, 2022 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, July 1, 2022 $ 373,957 99,769 6,071 18,738 498,535 Total realized and unrealized gains (losses): Included in net earnings — (3,102) (12,550) (551) (16,203) Included in other comprehensive income (loss) (12,642) — — — (12,642) Purchases, sales, issuances and settlements, net: Purchases 55,888 3,904 13,386 1,234 74,412 Settlements (6,656) (265) (92) (31) (7,044) Balance at end of period September 30, 2022 $ 410,547 100,306 6,815 19,390 537,058 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 $ — (3,102) 6,524 (551) 2,871 Benefits and expenses — — — — — Total $ — (3,102) 6,524 (551) 2,871 Three Months Ended September 30, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, July 1, 2022 $ (6,534) 382,721 9,332 176,758 562,277 Total realized and unrealized (gains) losses: Included in net earnings (3,681) (23,145) (1,319) (26,016) (54,161) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 13,386 — — 13,386 Sales — — — — — Issuances — — 155 8 163 Settlements — (92) — — (92) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2022 $ (10,215) 372,870 8,168 150,750 521,573 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 $ (3,681) — — — (3,681) Benefits and expenses — 6,524 (1,319) (26,016) (20,811) Total $ (3,681) 6,524 (1,319) (26,016) (24,492) Nine Months Ended September 30, 2023 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2023 $ 462,796 123,236 23,669 19,334 629,035 Total realized and unrealized gains (losses): Included in net earnings — (828) 4,045 48 3,265 Included in other comprehensive income (loss) (11,338) — — — (11,338) Purchases, sales, issuances and settlements, net: Purchases 64,239 30,985 39,680 — 134,904 Sales — — — — — Issuances — — — — — Settlements (25,284) (25,500) (12,116) (97) (62,997) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2023 $ 490,413 127,893 55,278 19,285 692,869 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: Net investment income $ — (828) 289 48 (491) Benefits and expenses — — — — — Total $ — (828) 289 48 (491) Nine Months Ended September 30, 2023 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, January 1, 2023 $ (10,243) 387,686 20,542 167,018 565,003 Total realized and unrealized (gains) losses: Included in net earnings (780) (32,216) 43,336 5,184 15,524 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,680 — — 39,680 Sales — — — — — Issuances — — 261 64 325 Settlements — (12,116) (2,760) — (14,876) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2023 $ (11,023) 383,034 61,379 172,266 605,656 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 $ (780) — — — (780) Benefits and expenses — 289 43,336 5,184 48,809 Total $ (780) 289 43,336 5,184 48,029 Nine Months Ended September 30, 2022 Total 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 — (9,705) (89,173) (1,679) (100,557) Included in other comprehensive income (loss) (43,335) — — — (43,335) Purchases, sales, issuances and settlements, net: Purchases 151,872 35,454 39,642 12,693 239,661 Sales — — — — — Issuances — — — — — Settlements (24,952) (265) (45,276) (93) (70,586) Transfers into (out of) Level 3 — — — — — Balance at end of period September 30, 2022 $ 410,547 100,306 6,815 19,390 537,058 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 $ — (9,705) (52,858) (1,679) (64,242) Benefits and expenses — — — — — Total $ — (9,705) (52,858) (1,679) (64,242) Nine Months Ended September 30, 2022 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities Total Liabilities (In thousands) Beginning balance, January 1, 2022 $ — 550,596 7,869 299,833 858,298 Total realized and unrealized (gains) losses: Included in net earnings (11,384) (172,092) 1,192 (149,503) (331,787) Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 39,642 — — 39,642 Sales — — — — — Issuances — — 184 420 604 Settlements — (45,276) (1,077) — (46,353) Transfers into (out of) Level 3 1,169 — — — 1,169 Balance at end of period September 30, 2022 $ (10,215) 372,870 8,168 150,750 521,573 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 $ (11,384) — — — (11,384) Benefits and expenses — (52,858) 1,193 (149,503) (201,168) Total $ (11,384) (52,858) 1,193 (149,503) (212,552) |
Schedule of Quantitative Information of Level 3 Assets | The following table presents the valuation method for financial assets and liabilities priced internally and categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: September 30, 2023 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 103,905 Discounted cash flows Discount rate 3.55% - 6.14% (5.04%) Mortgage loans 19,285 Discounted cash flows Spread 175 - 325 bps Total assets $ 123,190 Liabilities: Policyholder account balances $ 383,034 Deterministic cash flow model Projected option cost 0.00% - 9.18% (3.69%) Share-based compensation 61,379 Black-Scholes model Expected term 0.2 to 0.8 years Expected volatility 40.06% Market risk benefits liabilities, net 172,266 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 616,679 December 31, 2022 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 76,003 Discounted cash flows Discount rate 4.32% - 7.28% (5.79%) Mortgage loans 19,334 Discounted cash flows Spread 150 - 300 bps Total assets $ 95,337 Liabilities: Policyholder account balances $ 387,686 Deterministic cash flow model Projected option cost 0.00% - 5.70% (2.92%) Share-based compensation 20,542 Black-Scholes model Expected term 0.9 to 6.7 years Expected volatility 36.18% Market risk benefits liabilities, net 167,018 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 575,246 |
Schedule of Carrying Amounts and Fair Values of the Company's Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: September 30, 2023 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,052,554 7,052,554 — 6,562,141 490,413 Debt securities, trading 1,000,355 1,000,355 — 872,462 127,893 Cash and cash equivalents 320,740 320,740 320,740 — — Mortgage loans 490,059 434,094 — — 434,094 Real estate 27,273 47,867 — — 47,867 Policy loans 67,809 81,258 — — 81,258 Other loans 44,478 43,667 — — 43,667 Derivatives, index options 55,278 55,278 — — 55,278 Equity securities 21,913 21,913 18,475 3,438 — Short-term investments 7,821 7,821 — 7,821 — Life interest in Libbie Shearn Moody Trust 7,100 12,775 — — 12,775 Other investments 4,318 4,532 — — 4,532 LIABILITIES Deferred annuity contracts $ 5,049,868 3,626,361 — — 3,626,361 Immediate annuity and supplemental contracts 348,106 350,394 — — 350,394 Market risk benefits liabilities, net 172,266 172,266 — — 172,266 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 $ 5,583,038 3,934,517 — — 3,934,517 Immediate annuity and supplemental contracts 367,128 373,346 — — 373,346 Market risk benefits liabilities, net 167,018 167,018 — — 167,018 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022, respectively. September 30, 2023 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 55,278 Fixed-index products Universal life and annuity contracts $ 383,034 Embedded derivative on reinsurance contract Funds withheld liability (349,275) Total $ 55,278 $ 33,759 December 31, 2022 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (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 $ 387,686 Embedded derivative on reinsurance contract Funds withheld liability (334,955) Total $ 23,669 $ 52,731 |
Schedule of Derivative Instruments in the Condensed Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended September 30, 2023 and 2022. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ (19,655) (12,550) Fixed-index products Universal life and annuity contract interest 49,355 23,145 Embedded derivative on reinsurance contract Net investment income 35,531 70,610 $ 65,231 81,205 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the nine months ended September 30, 2023 and 2022. September 30, September 30, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 5,246 (89,173) Fixed-index products Universal life and annuity contract interest 31,015 172,092 Embedded derivative on reinsurance contract Net investment income 14,320 256,499 $ 50,581 339,418 |
Intangibles and Goodwill (Table
Intangibles and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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. September 30, 2023 December 31, 2022 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (871) 2,800 (731) Internally developed software 7 3,800 (2,533) 3,800 (2,126) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (3,404) 9,600 (2,857) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of September 30, 2023, expected amortization expense relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected (In thousands) Remainder of 2023 $ 182 2024 730 2025 730 2026 232 2027 187 Thereafter 1,135 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: September 30, December 31, 2023 2022 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 Goodwill resulting from business acquisition — — Gross goodwill, before impairments 13,864 13,864 Accumulated impairment as of beginning of year — — Current year impairments — — Net goodwill as of end of period $ 13,864 13,864 |
Consolidation and Basis of Pr_3
Consolidation and Basis of Presentation - Narrative (Details) $ in Millions | Jul. 27, 2022 USD ($) |
Aspida Life Re Ltd. | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Statutory reserve liabilities ceded to Aspida | $ 250 |
Consolidation and Basis of Pr_4
Consolidation and Basis of Presentation - Net Unrealized Gains And Losses On Available For Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net investment gains | $ 25,652 | $ 0 | $ 25,652 | $ 0 |
Earnings before Federal income taxes | 98,873 | 44,898 | 151,055 | 289,146 |
Federal income taxes | 34,148 | 9,710 | 44,392 | 59,869 |
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Unrealized Gains and Losses on Available-for-sale Securities | Amount Reclassified From Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other net investment gains | 231 | (163) | 344 | 5,061 |
Earnings before Federal income taxes | 231 | (163) | 344 | 5,061 |
Federal income taxes | 48 | (34) | 72 | 1,063 |
Net earnings | $ 183 | $ (129) | $ 272 | $ 3,998 |
Consolidation and Basis of Pr_5
Consolidation and Basis of Presentation - Condensed Consolidated Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets: | |||||||
Deferred policy acquisition costs | $ 635,837 | $ 673,112 | $ 635,837 | $ 673,112 | $ 663,882 | $ 704,353 | $ 695,875 |
Deferred sales inducements | 74,928 | 88,598 | 74,928 | 88,598 | 85,303 | 102,976 | 96,378 |
Value of business acquired | 132,004 | 139,890 | 132,004 | 139,890 | 138,495 | 149,408 | |
Market risk benefit assets | 48,240 | 51,881 | 48,240 | 51,881 | 48,759 | ||
Deferred federal income tax asset | 20,173 | 20,173 | 9,032 | ||||
Amounts recoverable from reinsurer, net of allowance for credit losses | 1,547,267 | 1,547,267 | 1,688,788 | ||||
Other assets | 106,743 | 106,743 | 110,691 | ||||
Total assets | 12,059,430 | 12,059,430 | 12,782,945 | ||||
Future policyholder obligations: | |||||||
Universal life and annuity contracts | 0 | ||||||
Traditional life reserves | 0 | ||||||
Liability for policyholder account balances | 7,078,891 | 7,859,381 | 7,078,891 | 7,859,381 | 7,661,785 | 8,220,944 | $ 8,378,037 |
Additional liability for benefits in excess of account balance | 158,040 | 158,040 | 148,708 | ||||
Liability for future policy benefits | 843,636 | 922,252 | 843,636 | 922,252 | 900,146 | ||
Market risk benefits liability | 220,506 | 202,631 | 220,506 | 202,631 | 215,777 | ||
Other liabilities | 215,934 | 215,934 | 157,482 | ||||
Total liabilities | 9,815,331 | 9,815,331 | 10,592,023 | ||||
STOCKHOLDERS’ EQUITY: | |||||||
Accumulated other comprehensive income (loss) | (531,705) | (531,705) | (478,219) | ||||
Retained earnings | 2,734,052 | 2,734,052 | 2,627,389 | ||||
Total stockholders’ equity | 2,244,099 | 2,063,602 | 2,244,099 | 2,063,602 | 2,190,922 | 2,721,553 | |
Total liabilities and stockholders' equity | 12,059,430 | 12,059,430 | 12,782,945 | ||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | 34,471 | 33,810 | 106,952 | 99,428 | |||
Traditional life and SPIAWLC premiums | 21,631 | 22,337 | 64,435 | 71,119 | |||
Other revenues | 5,741 | 5,761 | 16,731 | 17,136 | |||
Total revenues | 156,690 | 142,157 | 495,481 | 398,690 | |||
Benefits and expenses: | |||||||
Life and other policy benefits | 26,557 | 27,768 | 83,435 | 87,481 | |||
Remeasurement gain/loss | 8,360 | 9,827 | 8,360 | 9,827 | |||
Market risk benefits expense | (29,439) | (33,571) | 6,733 | (150,069) | |||
Amortization of deferred transaction costs | 20,326 | 21,613 | 63,600 | 67,549 | |||
Universal life and annuity contract interest | (10,417) | 42,235 | 52,742 | 2,466 | |||
Total benefits and expenses | 57,817 | 97,259 | 344,426 | 109,544 | |||
Federal income taxes | 34,148 | 9,710 | 44,392 | 59,869 | |||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 2,263,175 | 2,190,922 | 2,721,553 | ||||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Other comprehensive income (loss), net of income tax | (143,757) | (287,338) | (90,152) | (1,094,529) | |||
Change during period | (98,826) | (234,761) | (53,486) | (887,228) | |||
Total stockholders’ equity, end of period | 2,244,099 | 2,063,602 | 2,244,099 | 2,063,602 | |||
Cash flows from operating activities: | |||||||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Universal life and annuity contract interest | (10,417) | 42,235 | 52,742 | 2,466 | |||
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 44,911 | 24,298 | |||||
(Increase) decrease in reinsurance recoverable | 141,521 | 142,466 | |||||
(Increase) decrease in other assets (Note 1) | (16,059) | (311) | |||||
Increase (decrease) in liabilities for future policy benefits | 30,635 | 10,064 | |||||
Increase (decrease) in market risk benefits liability | 5,248 | (149,083) | |||||
Increase (decrease) in deferred Federal income tax | 3,077 | 53,023 | |||||
Increase (decrease) in other liabilities (Note 1) | 58,613 | (15,188) | |||||
Net cash provided by operating activities | 199,555 | 231,736 | |||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts (Note 1) | 75,303 | 252,873 | |||||
Return of account balances on universal life and annuity contracts (Note 1) | (722,477) | (628,900) | |||||
Net cash provided by (used in) financing activities | (647,429) | (376,281) | |||||
Effect of foreign exchange | 11 | 439 | |||||
Retained earnings: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 2,734,052 | 2,611,429 | 2,734,052 | 2,611,429 | 2,627,389 | 2,382,152 | |
Benefits and expenses: | |||||||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 2,669,327 | 2,576,241 | 2,627,389 | 2,382,152 | |||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Total stockholders’ equity, end of period | 2,734,052 | 2,611,429 | 2,734,052 | 2,611,429 | |||
Cash flows from operating activities: | |||||||
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 | |||
Total Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (531,705) | (589,579) | (531,705) | (589,579) | (478,219) | 297,649 | |
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (354,818) | (478,219) | 297,649 | ||||
Change during period | (234,761) | (887,228) | |||||
Total stockholders’ equity, end of period | (531,705) | (589,579) | (531,705) | (589,579) | |||
Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (743,855) | (731,418) | (743,855) | (731,418) | (653,431) | 367,109 | |
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (599,915) | (444,209) | (653,431) | 367,109 | |||
Other comprehensive income (loss), net of income tax | (143,940) | (287,209) | (90,424) | (1,098,527) | |||
Total stockholders’ equity, end of period | (743,855) | (731,418) | (743,855) | (731,418) | |||
Change in LFPB due to discount rate changes: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 208,826 | 147,429 | 208,826 | 147,429 | 170,701 | (60,121) | |
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 163,331 | 96,167 | 170,701 | (60,121) | |||
Impact of discount rate changes during the period | 51,262 | 207,550 | |||||
Total stockholders’ equity, end of period | 208,826 | 147,429 | 208,826 | 147,429 | |||
Foreign currency translation adjustments: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 6,459 | 6,374 | 6,459 | 6,374 | 6,450 | 6,028 | |
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 6,442 | 6,323 | 6,450 | 6,028 | |||
Change in translation adjustments during period | 17 | 51 | 9 | 346 | |||
Total stockholders’ equity, end of period | 6,459 | 6,374 | 6,459 | 6,374 | |||
Class A (Note 4) | |||||||
Benefits and expenses: | |||||||
Net earnings | $ 62,895 | $ 34,193 | $ 103,647 | $ 222,793 | |||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 | |||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Net earnings | $ 62,895 | $ 34,193 | $ 103,647 | $ 222,793 | |||
Cash flows from operating activities: | |||||||
Net earnings | 62,895 | 34,193 | 103,647 | 222,793 | |||
Class B (Note 4) | |||||||
Benefits and expenses: | |||||||
Net earnings | $ 1,830 | $ 995 | $ 3,016 | $ 6,484 | |||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 | |||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Net earnings | $ 1,830 | $ 995 | $ 3,016 | $ 6,484 | |||
Cash flows from operating activities: | |||||||
Net earnings | $ 1,830 | 995 | 3,016 | 6,484 | |||
As previously Reported | |||||||
Assets: | |||||||
Deferred policy acquisition costs | 909,786 | ||||||
Deferred sales inducements | 114,399 | ||||||
Value of business acquired | 146,494 | ||||||
Market risk benefit assets | 0 | ||||||
Deferred federal income tax asset | 57,867 | ||||||
Amounts recoverable from reinsurer, net of allowance for credit losses | 1,723,347 | ||||||
Other assets | 110,339 | ||||||
Total assets | 13,100,227 | ||||||
Future policyholder obligations: | |||||||
Universal life and annuity contracts | 8,498,684 | ||||||
Traditional life reserves | 919,650 | ||||||
Liability for policyholder account balances | 0 | ||||||
Additional liability for benefits in excess of account balance | 0 | ||||||
Liability for future policy benefits | 0 | ||||||
Market risk benefits liability | 0 | ||||||
Other liabilities | 166,557 | ||||||
Total liabilities | 11,093,016 | ||||||
STOCKHOLDERS’ EQUITY: | |||||||
Accumulated other comprehensive income (loss) | (416,397) | ||||||
Retained earnings | 2,381,856 | ||||||
Total stockholders’ equity | 1,937,416 | 1,937,416 | 2,007,211 | 2,539,691 | |||
Total liabilities and stockholders' equity | 13,100,227 | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | 36,063 | 101,406 | |||||
Traditional life and SPIAWLC premiums | 21,639 | 65,619 | |||||
Other revenues | 5,922 | 17,297 | |||||
Total revenues | 143,873 | 395,329 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | 37,356 | 114,432 | |||||
Remeasurement gain/loss | 0 | 0 | |||||
Market risk benefits expense | 0 | 0 | |||||
Amortization of deferred transaction costs | 31,679 | 88,451 | |||||
Universal life and annuity contract interest | 17,548 | (11,058) | |||||
Total benefits and expenses | 115,970 | 284,115 | |||||
Federal income taxes | 6,142 | 22,504 | |||||
Net earnings | 21,761 | 88,710 | |||||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 2,095,549 | 2,007,211 | 2,539,691 | ||||
Net earnings | 21,761 | 88,710 | |||||
Total stockholders’ equity, end of period | 1,937,416 | 1,937,416 | |||||
Cash flows from operating activities: | |||||||
Net earnings | 21,761 | 88,710 | |||||
Universal life and annuity contract interest | 17,548 | (11,058) | |||||
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 47,694 | ||||||
(Increase) decrease in reinsurance recoverable | 81,454 | ||||||
(Increase) decrease in other assets (Note 1) | (333) | ||||||
Increase (decrease) in liabilities for future policy benefits | 93,088 | ||||||
Increase (decrease) in market risk benefits liability | 0 | ||||||
Increase (decrease) in deferred Federal income tax | 15,658 | ||||||
Increase (decrease) in other liabilities (Note 1) | (15,347) | ||||||
Net cash provided by operating activities | 234,590 | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts (Note 1) | 258,248 | ||||||
Return of account balances on universal life and annuity contracts (Note 1) | (637,119) | ||||||
Net cash provided by (used in) financing activities | (379,125) | ||||||
Effect of foreign exchange | 429 | ||||||
As previously Reported | Retained earnings: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 2,370,696 | 2,370,696 | 2,381,856 | 2,281,986 | |||
Benefits and expenses: | |||||||
Net earnings | 21,761 | 88,710 | |||||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 2,348,935 | 2,381,856 | 2,281,986 | ||||
Net earnings | 21,761 | 88,710 | |||||
Total stockholders’ equity, end of period | 2,370,696 | 2,370,696 | |||||
Cash flows from operating activities: | |||||||
Net earnings | 21,761 | 88,710 | |||||
As previously Reported | Total Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (475,032) | (475,032) | (416,397) | 215,953 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (295,138) | (416,397) | 215,953 | ||||
Change during period | (179,894) | (690,985) | |||||
Total stockholders’ equity, end of period | (475,032) | (475,032) | |||||
As previously Reported | Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (468,507) | (468,507) | (419,965) | 226,220 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (287,430) | (419,965) | 226,220 | ||||
Other comprehensive income (loss), net of income tax | (181,077) | (694,727) | |||||
Total stockholders’ equity, end of period | (468,507) | (468,507) | |||||
As previously Reported | Change in LFPB due to discount rate changes: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 0 | 0 | 0 | 0 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 0 | 0 | 0 | ||||
Impact of discount rate changes during the period | 0 | 0 | |||||
Total stockholders’ equity, end of period | 0 | 0 | |||||
As previously Reported | Foreign currency translation adjustments: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 5,439 | 5,439 | 5,507 | 5,100 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 5,391 | 5,507 | 5,100 | ||||
Change in translation adjustments during period | 48 | 339 | |||||
Total stockholders’ equity, end of period | $ 5,439 | $ 5,439 | |||||
As previously Reported | Class A (Note 4) | |||||||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 6.15 | $ 25.09 | |||||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | 6.15 | 25.09 | |||||
As previously Reported | Class B (Note 4) | |||||||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | 3.08 | 12.54 | |||||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | $ 3.08 | $ 12.54 | |||||
Effect of Change | |||||||
Assets: | |||||||
Deferred policy acquisition costs | (245,904) | ||||||
Deferred sales inducements | (29,096) | ||||||
Value of business acquired | (7,999) | ||||||
Market risk benefit assets | 48,759 | ||||||
Deferred federal income tax asset | (48,835) | ||||||
Amounts recoverable from reinsurer, net of allowance for credit losses | (34,559) | ||||||
Other assets | 352 | ||||||
Total assets | (317,282) | ||||||
Future policyholder obligations: | |||||||
Universal life and annuity contracts | (8,498,684) | ||||||
Traditional life reserves | (919,650) | ||||||
Liability for policyholder account balances | 7,661,785 | ||||||
Additional liability for benefits in excess of account balance | 148,708 | ||||||
Liability for future policy benefits | 900,146 | ||||||
Market risk benefits liability | 215,777 | ||||||
Other liabilities | (9,075) | ||||||
Total liabilities | (500,993) | ||||||
STOCKHOLDERS’ EQUITY: | |||||||
Accumulated other comprehensive income (loss) | (61,822) | ||||||
Retained earnings | 245,533 | ||||||
Total stockholders’ equity | $ 126,186 | $ 126,186 | 183,711 | 181,862 | |||
Total liabilities and stockholders' equity | (317,282) | ||||||
Premiums and other revenues: | |||||||
Universal life and annuity contract charges | (2,253) | (1,978) | |||||
Traditional life and SPIAWLC premiums | 698 | 5,500 | |||||
Other revenues | (161) | (161) | |||||
Total revenues | (1,716) | 3,361 | |||||
Benefits and expenses: | |||||||
Life and other policy benefits | (9,588) | (26,951) | |||||
Remeasurement gain/loss | 9,827 | 9,827 | |||||
Market risk benefits expense | (33,571) | (150,069) | |||||
Amortization of deferred transaction costs | (10,066) | (20,902) | |||||
Universal life and annuity contract interest | 24,687 | 13,524 | |||||
Total benefits and expenses | (18,711) | (174,571) | |||||
Federal income taxes | 3,568 | 37,365 | |||||
Net earnings | 13,427 | 140,567 | |||||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 167,626 | 183,711 | 181,862 | ||||
Net earnings | 13,427 | 140,567 | |||||
Total stockholders’ equity, end of period | 126,186 | 126,186 | |||||
Cash flows from operating activities: | |||||||
Net earnings | 13,427 | 140,567 | |||||
Universal life and annuity contract interest | 24,687 | 13,524 | |||||
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | (23,396) | ||||||
(Increase) decrease in reinsurance recoverable | 61,012 | ||||||
(Increase) decrease in other assets (Note 1) | 22 | ||||||
Increase (decrease) in liabilities for future policy benefits | (83,024) | ||||||
Increase (decrease) in market risk benefits liability | (149,083) | ||||||
Increase (decrease) in deferred Federal income tax | 37,365 | ||||||
Increase (decrease) in other liabilities (Note 1) | 159 | ||||||
Net cash provided by operating activities | (2,854) | ||||||
Cash flows from financing activities: | |||||||
Deposits to account balances for universal life and annuity contracts (Note 1) | (5,375) | ||||||
Return of account balances on universal life and annuity contracts (Note 1) | 8,219 | ||||||
Net cash provided by (used in) financing activities | 2,844 | ||||||
Effect of foreign exchange | 10 | ||||||
Effect of Change | Retained earnings: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 240,733 | 240,733 | 245,533 | 100,166 | |||
Benefits and expenses: | |||||||
Net earnings | 13,427 | 140,567 | |||||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 227,306 | 245,533 | 100,166 | ||||
Net earnings | 13,427 | 140,567 | |||||
Total stockholders’ equity, end of period | 240,733 | 240,733 | |||||
Cash flows from operating activities: | |||||||
Net earnings | 13,427 | 140,567 | |||||
Effect of Change | Total Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (114,547) | (114,547) | (61,822) | 81,696 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (59,680) | (61,822) | 81,696 | ||||
Change during period | (54,867) | (196,243) | |||||
Total stockholders’ equity, end of period | (114,547) | (114,547) | |||||
Effect of Change | Accumulated Other Comprehensive Income (Loss): | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | (262,911) | (262,911) | (233,466) | 140,889 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | (156,779) | (233,466) | 140,889 | ||||
Other comprehensive income (loss), net of income tax | (106,132) | (403,800) | |||||
Total stockholders’ equity, end of period | (262,911) | (262,911) | |||||
Effect of Change | Change in LFPB due to discount rate changes: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 147,429 | 147,429 | 170,701 | (60,121) | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 96,167 | 170,701 | (60,121) | ||||
Impact of discount rate changes during the period | 51,262 | 207,550 | |||||
Total stockholders’ equity, end of period | 147,429 | 147,429 | |||||
Effect of Change | Foreign currency translation adjustments: | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Total stockholders’ equity | 935 | 935 | $ 943 | $ 928 | |||
Condensed Consolidated Statement of Changes in Stockholders' Equity | |||||||
Total stockholders’ equity, beginning of period | 932 | $ 943 | 928 | ||||
Change in translation adjustments during period | 3 | 7 | |||||
Total stockholders’ equity, end of period | $ 935 | $ 935 | |||||
Effect of Change | Class A (Note 4) | |||||||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | $ 3.80 | $ 39.75 | |||||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | 3.80 | 39.75 | |||||
Effect of Change | Class B (Note 4) | |||||||
Basic earnings per share: | |||||||
Basic earnings per share (in dollars per share) | 1.90 | 19.88 | |||||
Diluted earnings per share: | |||||||
Diluted earnings per share (in dollars per share) | $ 1.90 | $ 19.88 |
New Accounting Pronouncements -
New Accounting Pronouncements - Balance of and Changes in Deferred Policy Acquisition Costs ("DPAC") and Deferred Sales Inducements ("DSI") (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | $ 635,837 | $ 663,882 | $ 673,112 | $ 704,353 | $ 695,875 |
DSI Balances | 74,928 | 85,303 | 88,598 | 102,976 | 96,378 |
VOBA | 132,004 | 138,495 | 139,890 | 149,408 | |
As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 909,786 | ||||
DSI Balances | 114,399 | ||||
VOBA | 146,494 | ||||
Domestic Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 2,960 | 3,159 | 3,230 | 3,448 | 4,014 |
DSI Balances | 0 | 0 | 0 | 0 | 0 |
VOBA | 0 | ||||
Domestic Traditional Life | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 4,014 | ||||
DSI Balances | 0 | ||||
Domestic Traditional Life | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 0 | ||||
DSI Balances | 0 | ||||
Domestic Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 178,108 | 176,034 | 175,737 | 167,748 | 144,133 |
DSI Balances | 0 | 0 | 0 | 0 | 0 |
VOBA | 0 | ||||
Domestic Universal Life | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 96,513 | ||||
DSI Balances | 0 | ||||
Domestic Universal Life | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 47,620 | ||||
DSI Balances | 0 | ||||
International Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 10,127 | 11,151 | 11,459 | 12,415 | 13,399 |
DSI Balances | 0 | 0 | 0 | 0 | 0 |
VOBA | 0 | ||||
International Traditional Life | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 13,399 | ||||
DSI Balances | 0 | ||||
International Traditional Life | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 0 | ||||
DSI Balances | 0 | ||||
International Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 141,480 | 152,287 | 156,015 | 167,556 | 184,262 |
DSI Balances | 0 | 0 | 0 | 0 | 0 |
VOBA | 0 | ||||
International Universal Life | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 157,186 | ||||
DSI Balances | 0 | ||||
International Universal Life | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 27,076 | ||||
DSI Balances | 0 | ||||
SPIAs With Life Contingencies | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 0 | ||||
DSI Balances | 0 | 0 | 0 | ||
VOBA | 0 | ||||
Annuities excl. SPIAs WLC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 285,867 | 306,489 | 312,736 | 341,897 | 342,278 |
DSI Balances | 74,928 | 85,303 | 88,598 | 102,976 | 96,378 |
VOBA | 0 | ||||
Annuities excl. SPIAs WLC | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 103,179 | ||||
DSI Balances | 43,845 | ||||
Annuities excl. SPIAs WLC | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 239,099 | ||||
DSI Balances | 52,533 | ||||
ONL & Affiliates | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 17,295 | 14,762 | 13,935 | 11,289 | 7,789 |
DSI Balances | $ 0 | $ 0 | $ 0 | 0 | 0 |
VOBA | $ 149,408 | 162,968 | |||
ONL & Affiliates | As previously Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 7,789 | ||||
DSI Balances | 0 | ||||
ONL & Affiliates | Removal of shadow balances in Accumulated other comprehensive income (loss) | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
DPAC Balances | 0 | ||||
DSI Balances | $ 0 |
New Accounting Pronouncements_3
New Accounting Pronouncements - Liability for Policyholder Account Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | $ 7,661,785 | $ 8,220,944 | $ 8,378,037 | ||
Ending balance | 7,078,891 | 7,859,381 | 8,220,944 | ||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Interest accrual | 2,383 | 3,736 | |||
Adjusted balance, December 31, 2021 | 158,040 | 148,684 | 115,151 | $ 119,374 | |
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 1,234,748 | 1,302,788 | |||
Balance, end of period | 1,234,748 | ||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 299,833 | 301,601 | |||
Transfer of balances from UL and annuity contracts | 205,611 | ||||
Balance, beginning of year, before effect of changes in instrument-specific credit risk: | 299,833 | 301,601 | |||
Issuances | 3,184 | ||||
Interest accrual | 0 | ||||
Attributed fees collected | 38,182 | ||||
Benefit payments | 0 | ||||
Effect of changes in interest rates | (36,112) | ||||
Effect of changes in equity markets | 0 | ||||
Effect of changes in equity index volatility | 0 | ||||
Actual policyholder behavior different from expected behavior | (7,022) | ||||
Effect of changes in future expected policyholder behavior | 0 | ||||
Effect of changes in other future expected assumptions | 0 | ||||
Balance, end of year, before effect of changes in instrument-specific credit risk | 299,833 | ||||
Effect of changes in the instrument-specific credit risk | 0 | ||||
Ending balance | 299,833 | ||||
Less reinsurance recoverable | (68,238) | (73,651) | |||
Adjusted balance, net of reinsurance | 231,595 | 227,950 | |||
As previously Reported | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 0 | ||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | ||||
Adjustment for the difference between carrying amount and fair value, except for the difference due to instrument-specific credit risk | |||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 95,990 | ||||
Adjustment for the cumulative effect of changes in the instrument-specific credit risk | |||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | ||||
Total adjustment for the difference between carrying amount and fair value | |||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 95,990 | ||||
Domestic Traditional Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | 0 | |||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 90,469 | 102,407 | |||
Beginning balance at original discount rate | 62,839 | 64,242 | |||
Beginning balance at original discount rate | 63,536 | 65,928 | |||
Transfer of balances from UL and annuity contracts | (66) | ||||
Effect of changes in CF assumptions | 0 | $ (824) | 0 | ||
Effect of actual variances from expected experience | (142) | (132) | (525) | ||
Adjusted beginning of period balance | 64,100 | 61,883 | 65,403 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 2,851 | 2,946 | 4,058 | ||
Net premium collected | 16 | ||||
Benefit payments | (3,825) | (3,661) | (6,538) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | 114 | 137 | 597 | ||
Ending balance at original discount rate | 63,536 | ||||
Effect of changes in discount rate | 26,933 | ||||
Ending balance at original discount rate | 61,023 | 63,522 | 64,242 | ||
Balance, end of period | 90,469 | ||||
Less reinsurance recoverable | (12,665) | (12,431) | (13,841) | (13,680) | |
Net liability for future policy benefits, after reinsurance | 53,119 | 56,964 | 76,628 | 88,727 | |
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Domestic Traditional Life | As previously Reported | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Beginning balance at original discount rate | 56,894 | ||||
Domestic Traditional Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 36,479 | ||||
Domestic Traditional Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 7,937 | ||||
Domestic Traditional Life | Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
Domestic Traditional Life | Other Adjustments | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 1,163 | ||||
Domestic Traditional Life | Adjustment for removal of related balances in accumulated other comprehensive income | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
Domestic Universal Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 1,409,471 | 1,412,058 | 1,222,694 | ||
Transfer of balances to Additional liabilities in excess of account balance | (45,136) | ||||
Transfer of balances to Liability for future policy benefits | 66 | ||||
Transfer of balances to Market risk benefits | 0 | ||||
Change in embedded derivative on reserves | 0 | ||||
Issuances | 0 | 0 | |||
Premiums received | 85,794 | 120,956 | 225,349 | ||
Policy charges | (49,789) | (53,411) | (76,147) | ||
Surrenders and withdrawals | (50,399) | (41,785) | (47,483) | ||
Benefit payments | (21,739) | (16,428) | (25,418) | ||
Interest credited | 20,509 | 37,863 | 89,508 | ||
Other | 2,218 | 371 | 23,555 | ||
Ending balance | 1,422,079 | 1,404,857 | 1,412,058 | ||
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Liability for policyholder account balances, net of reinsurance | 1,422,079 | 1,404,857 | 1,412,058 | 1,222,694 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 54,097 | 45,136 | |||
Beginning balance before shadow reserve adjustments | 54,097 | 45,136 | |||
Transfer of balances from universal life ("UL") and annuity contracts | 45,136 | ||||
Effect of changes in cash flow assumptions | 3,844 | 1,870 | 7,061 | ||
Effect of actual variances from expected experience | 5,493 | 5,898 | 0 | ||
Adjusted beginning of period balance | 63,434 | 71,572 | 52,197 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 950 | 1,993 | 4,767 | ||
Assessments collected | 15,875 | 13,436 | 14,775 | ||
Benefit payments | 18,318 | 16,031 | 17,687 | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 45 | ||
Ending balance before shadow reserve adjustments | 54,097 | ||||
Effect of shadow reserve adjustments | 0 | 0 | 0 | ||
Adjusted balance, December 31, 2021 | 70,040 | 62,802 | 54,097 | 63,804 | 45,136 |
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Ending balance | 70,040 | 62,802 | 54,097 | ||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 0 | 0 | |||
Balance, end of period | 0 | ||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Domestic Universal Life | As previously Reported | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 1,267,764 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | ||||
International Traditional Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | 0 | |||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 81,584 | 95,402 | |||
Beginning balance at original discount rate | 100,976 | 105,103 | |||
Beginning balance at original discount rate | 64,398 | 69,270 | |||
Transfer of balances from UL and annuity contracts | (107) | ||||
Effect of changes in CF assumptions | 0 | 4,433 | 0 | ||
Effect of actual variances from expected experience | (2,098) | (3,872) | (252) | ||
Adjusted beginning of period balance | 103,005 | 101,537 | 69,018 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 4,104 | 4,321 | 4,391 | ||
Net premium collected | 5,602 | ||||
Benefit payments | (4,740) | (3,658) | (17,221) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | (1,250) | (349) | 2,608 | ||
Ending balance at original discount rate | 64,398 | ||||
Effect of changes in discount rate | 17,186 | ||||
Ending balance at original discount rate | 99,651 | 103,319 | 105,103 | ||
Balance, end of period | 81,584 | ||||
Less reinsurance recoverable | (532) | (553) | (578) | (607) | |
Net liability for future policy benefits, after reinsurance | 60,325 | 63,745 | 81,006 | 94,795 | |
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
International Traditional Life | As previously Reported | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Beginning balance at original discount rate | 70,426 | ||||
International Traditional Life | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 26,131 | ||||
International Traditional Life | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
International Traditional Life | Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
International Traditional Life | Other Adjustments | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | (1,048) | ||||
International Traditional Life | Adjustment for removal of related balances in accumulated other comprehensive income | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
International Universal Life | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 575,096 | 647,586 | 677,900 | ||
Transfer of balances to Additional liabilities in excess of account balance | (63,046) | ||||
Transfer of balances to Liability for future policy benefits | 107 | ||||
Transfer of balances to Market risk benefits | 0 | ||||
Change in embedded derivative on reserves | 0 | ||||
Issuances | 0 | 0 | |||
Premiums received | 27,508 | 31,738 | 46,147 | ||
Policy charges | (56,523) | (52,904) | (68,800) | ||
Surrenders and withdrawals | (37,170) | (32,791) | (47,644) | ||
Benefit payments | (1,984) | (1,550) | (2,040) | ||
Interest credited | 7,004 | 13,772 | 36,902 | ||
Other | (614) | 1,476 | 5,121 | ||
Ending balance | 517,520 | 593,166 | 647,586 | ||
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Liability for policyholder account balances, net of reinsurance | 517,520 | 593,166 | 647,586 | 677,900 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 48,336 | 63,046 | |||
Beginning balance before shadow reserve adjustments | 48,336 | 63,046 | |||
Transfer of balances from universal life ("UL") and annuity contracts | 63,046 | ||||
Effect of changes in cash flow assumptions | (18) | 6,055 | (14,524) | ||
Effect of actual variances from expected experience | 7,118 | (736) | 0 | ||
Adjusted beginning of period balance | 55,436 | 51,721 | 48,522 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 340 | 1,154 | 3,264 | ||
Assessments collected | 7,546 | 6,011 | 8,304 | ||
Benefit payments | 7,610 | 15,768 | 10,565 | ||
Derecognition (lapses and withdrawals) | 0 | 0 | (1,189) | ||
Ending balance before shadow reserve adjustments | 48,336 | ||||
Effect of shadow reserve adjustments | 0 | 0 | 0 | ||
Adjusted balance, December 31, 2021 | 50,995 | 47,357 | 48,336 | 46,402 | 63,046 |
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Ending balance | 50,995 | 47,357 | 48,336 | ||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 0 | 0 | |||
Balance, end of period | 0 | ||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
International Universal Life | As previously Reported | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 740,839 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | ||||
SPIAs With Life Contingencies | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | 0 | |||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 244,550 | 238,127 | |||
Beginning balance at original discount rate | 215,637 | 223,904 | |||
Beginning balance at original discount rate | 223,904 | 200,737 | |||
Transfer of balances from UL and annuity contracts | 200,894 | ||||
Effect of changes in CF assumptions | 172 | 0 | (316) | ||
Effect of actual variances from expected experience | 3,032 | 3,083 | 5,724 | ||
Adjusted beginning of period balance | 227,108 | 218,720 | 206,145 | ||
Issuances | 9,005 | 9,554 | 39,338 | ||
Interest accrual | 5,305 | 5,440 | 7,076 | ||
Net premium collected | 0 | ||||
Benefit payments | (16,752) | (17,667) | (22,173) | ||
Derecognition (lapses and withdrawals) | (5,032) | (4,927) | (6,840) | ||
Other | (322) | 0 | 358 | ||
Ending balance at original discount rate | 223,904 | ||||
Effect of changes in discount rate | 20,646 | ||||
Ending balance at original discount rate | 210,924 | 219,508 | 223,904 | ||
Balance, end of period | 244,550 | ||||
Less reinsurance recoverable | (152,949) | (161,944) | (211,912) | (238,127) | |
Net liability for future policy benefits, after reinsurance | 29,519 | 29,840 | 32,638 | 0 | |
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
SPIAs With Life Contingencies | As previously Reported | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Beginning balance at original discount rate | 2,350 | ||||
SPIAs With Life Contingencies | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 37,390 | ||||
SPIAs With Life Contingencies | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
SPIAs With Life Contingencies | Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | (3,160) | ||||
SPIAs With Life Contingencies | Other Adjustments | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 653 | ||||
SPIAs With Life Contingencies | Adjustment for removal of related balances in accumulated other comprehensive income | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
Annuities excl. SPIAs WLC | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 5,677,218 | 6,161,300 | 6,477,443 | ||
Transfer of balances to Additional liabilities in excess of account balance | (11,192) | ||||
Transfer of balances to Liability for future policy benefits | (200,894) | ||||
Transfer of balances to Market risk benefits | (205,611) | ||||
Change in embedded derivative on reserves | (131,573) | ||||
Issuances | 0 | 0 | |||
Premiums received | 85,174 | 196,463 | 430,846 | ||
Policy charges | (22,595) | (22,259) | (28,643) | ||
Surrenders and withdrawals | (446,357) | (369,437) | (580,269) | ||
Benefit payments | (141,361) | (148,832) | (207,302) | ||
Interest credited | 41,292 | 57,969 | 155,783 | ||
Other | (18,877) | (15,216) | (86,558) | ||
Ending balance | 5,138,006 | 5,855,473 | 6,161,300 | ||
Less reinsurance recoverable | (1,135,906) | (1,290,600) | (1,458,076) | (1,677,898) | |
Liability for policyholder account balances, net of reinsurance | 4,002,100 | 4,564,873 | 4,703,224 | 4,799,545 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Beginning balance before shadow reserve adjustments | 12,718 | 11,192 | |||
Transfer of balances from universal life ("UL") and annuity contracts | 11,192 | ||||
Effect of changes in cash flow assumptions | 0 | ||||
Effect of actual variances from expected experience | 1,512 | ||||
Adjusted beginning of period balance | 12,704 | ||||
Issuances | 0 | ||||
Interest accrual | 459 | ||||
Assessments collected | 749 | ||||
Benefit payments | 1,198 | ||||
Derecognition (lapses and withdrawals) | 4 | ||||
Ending balance before shadow reserve adjustments | 12,718 | ||||
Effect of shadow reserve adjustments | 0 | ||||
Adjusted balance, December 31, 2021 | 12,718 | 11,192 | |||
Less reinsurance recoverable | (12,718) | (11,192) | |||
Ending balance | 0 | ||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 0 | 0 | |||
Balance, end of period | 0 | ||||
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | 299,833 | 301,601 | |||
Ending balance | 299,833 | ||||
Annuities excl. SPIAs WLC | As previously Reported | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 7,026,713 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | ||||
ONL & Affiliates | |||||
Policyholder Account Balance [Roll Forward] | |||||
Beginning balance | 0 | 0 | |||
Ending balance | 0 | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Adjusted balance, December 31, 2021 | 0 | 0 | |||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Balance, beginning of period | 818,145 | 866,852 | |||
Beginning balance at original discount rate | 1,293,523 | 1,114,085 | |||
Beginning balance at original discount rate | 783,232 | 780,836 | |||
Transfer of balances from UL and annuity contracts | 0 | ||||
Effect of changes in CF assumptions | 175,122 | 6,876 | 0 | ||
Effect of actual variances from expected experience | 11,758 | (3,273) | 114 | ||
Adjusted beginning of period balance | 1,300,965 | $ 1,297,126 | 780,950 | ||
Issuances | 7,340 | 5,918 | 227 | ||
Interest accrual | 30,313 | 25,989 | 23,801 | ||
Net premium collected | 35,640 | ||||
Benefit payments | (42,932) | (44,116) | (56,616) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | (1,694) | (95) | (770) | ||
Ending balance at original discount rate | 783,232 | ||||
Effect of changes in discount rate | 34,913 | ||||
Ending balance at original discount rate | 1,290,153 | 1,288,661 | 1,114,085 | ||
Balance, end of period | 818,145 | ||||
Less reinsurance recoverable | (24,395) | (26,239) | (31,476) | (33,731) | |
Net liability for future policy benefits, after reinsurance | $ 510,132 | 570,536 | 786,669 | 833,121 | |
Market Risk Benefit [Roll Forward] | |||||
Beginning balance | $ 0 | 0 | |||
Ending balance | 0 | ||||
ONL & Affiliates | As previously Reported | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Beginning balance at original discount rate | $ 768,433 | ||||
ONL & Affiliates | Change in discount rate assumptions | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 86,016 | ||||
ONL & Affiliates | Change in cash flow assumptions, effect of net premiums exceeding gross premiums | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
ONL & Affiliates | Change in cash flow assumptions, effect of decrease (increase) of the deferred profit liability | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 0 | ||||
ONL & Affiliates | Other Adjustments | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | 12,403 | ||||
ONL & Affiliates | Adjustment for removal of related balances in accumulated other comprehensive income | |||||
Liability for Future Policy Benefit, after Reinsurance [Abstract] | |||||
Effect of changes in CF assumptions | $ 0 |
New Accounting Pronouncements_4
New Accounting Pronouncements - Reconciliation of Policyholder Obligations And Market Risk Benefits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | $ 7,078,891 | $ 7,661,785 | $ 7,859,381 | $ 8,220,944 | $ 8,378,037 |
Additional Liability for Benefits | 158,040 | 148,684 | 115,151 | 119,374 | |
Liability for Future Policy Benefits | 1,234,748 | 1,302,788 | |||
Market Risk Benefits Liability | 299,833 | 301,601 | |||
Domestic Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 0 | 0 | |||
Additional Liability for Benefits | 0 | 0 | |||
Liability for Future Policy Benefits | 90,469 | 102,407 | |||
Market Risk Benefits Liability | 0 | 0 | |||
Domestic Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 1,422,079 | 1,409,471 | 1,404,857 | 1,412,058 | 1,222,694 |
Additional Liability for Benefits | 70,040 | 63,804 | 62,802 | 54,097 | 45,136 |
Liability for Future Policy Benefits | 0 | 0 | |||
Market Risk Benefits Liability | 0 | 0 | |||
International Traditional Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 0 | 0 | |||
Additional Liability for Benefits | 0 | 0 | |||
Liability for Future Policy Benefits | 81,584 | 95,402 | |||
Market Risk Benefits Liability | 0 | 0 | |||
International Universal Life | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 517,520 | 575,096 | 593,166 | 647,586 | 677,900 |
Additional Liability for Benefits | 50,995 | 46,402 | 47,357 | 48,336 | 63,046 |
Liability for Future Policy Benefits | 0 | 0 | |||
Market Risk Benefits Liability | 0 | 0 | |||
SPIAs With Life Contingencies | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 0 | 0 | |||
Additional Liability for Benefits | 0 | 0 | |||
Liability for Future Policy Benefits | 244,550 | 238,127 | |||
Market Risk Benefits Liability | 0 | 0 | |||
Annuities excl. SPIAs WLC | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | $ 5,138,006 | $ 5,677,218 | $ 5,855,473 | 6,161,300 | 6,477,443 |
Additional Liability for Benefits | 12,718 | 11,192 | |||
Liability for Future Policy Benefits | 0 | 0 | |||
Market Risk Benefits Liability | 299,833 | 301,601 | |||
ONL & Affiliates | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Policyholder Account Balances | 0 | 0 | |||
Additional Liability for Benefits | 0 | 0 | |||
Liability for Future Policy Benefits | 818,145 | 866,852 | |||
Market Risk Benefits Liability | $ 0 | $ 0 |
New Accounting Pronouncements_5
New Accounting Pronouncements - Effect of Transition Adjustments on Stockholders' Equity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Policyholder Account Balances | $ 7,078,891 | $ 7,661,785 | $ 7,859,381 | $ 8,220,944 | $ 8,378,037 | |||
Additional Liability for Benefits | 158,040 | 148,684 | 115,151 | 119,374 | ||||
DPAC Balances | (635,837) | (663,882) | (673,112) | (704,353) | (695,875) | |||
DSI Balances | (74,928) | (85,303) | (88,598) | (102,976) | (96,378) | |||
Market Risk Benefits Liability | 299,833 | $ 301,601 | ||||||
Total stockholders’ equity | 2,244,099 | 2,190,922 | 2,063,602 | $ 2,263,175 | 2,721,553 | |||
Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total stockholders’ equity | 2,734,052 | $ 2,669,327 | 2,627,389 | 2,611,429 | 2,576,241 | 2,382,152 | ||
Accumulated Other Comprehensive Income | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Total stockholders’ equity | $ (531,705) | $ (478,219) | $ (589,579) | $ (354,818) | $ 297,649 | |||
Effect Of Application Of Accounting Standards Update 2018-12 | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Liability for future policy benefits | $ (122,384) | |||||||
Policyholder Account Balances | 303,503 | |||||||
Additional Liability for Benefits | (85,463) | |||||||
DPAC Balances | 247,897 | |||||||
DSI Balances | 41,501 | |||||||
Market Risk Benefits Liability | (180,080) | |||||||
Total stockholders’ equity | 204,974 | |||||||
Effect Of Application Of Accounting Standards Update 2018-12 | Retained Earnings | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Liability for future policy benefits | (9,650) | |||||||
Policyholder Account Balances | 303,503 | |||||||
Additional Liability for Benefits | (85,463) | |||||||
DPAC Balances | 0 | |||||||
DSI Balances | 0 | |||||||
Market Risk Benefits Liability | (180,080) | |||||||
Total stockholders’ equity | 28,310 | |||||||
Effect Of Application Of Accounting Standards Update 2018-12 | Accumulated Other Comprehensive Income | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Liability for future policy benefits | (112,734) | |||||||
Policyholder Account Balances | 0 | |||||||
Additional Liability for Benefits | 0 | |||||||
DPAC Balances | 247,897 | |||||||
DSI Balances | 41,501 | |||||||
Market Risk Benefits Liability | 0 | |||||||
Total stockholders’ equity | $ 176,664 |
New Accounting Pronouncements_6
New Accounting Pronouncements - Balance of and Changes in DPAC, DSI, VOBA, and COR (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Balances of and changes in DPAC | |||
Beginning balance | $ 663,882 | $ 704,353 | $ 695,875 |
Ending balance | 635,837 | 673,112 | 704,353 |
Balances of and changes in DSI | |||
Beginning balance | 85,303 | 102,976 | 96,378 |
Ending balance | 74,928 | 88,598 | 102,976 |
Balances of and changes in VOBA | |||
Beginning balance | 138,495 | 149,408 | |
Amortization | 6,523 | 9,518 | |
Experience adjustment | 32 | 0 | |
Ending balance | 132,004 | 139,890 | 149,408 |
Domestic Traditional Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 3,159 | 3,448 | 4,014 |
Capitalization additions | 11 | 14 | 19 |
Amortization | (213) | (232) | (585) |
Experience adjustment | (3) | 0 | 0 |
Ending balance | 2,960 | 3,230 | 3,448 |
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | ||
Amortization | 0 | 0 | 0 |
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Domestic Universal Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 176,034 | 167,748 | 144,133 |
Capitalization additions | 11,646 | 19,884 | 33,447 |
Amortization | (9,470) | (11,924) | (9,265) |
Experience adjustment | 102 | (29) | (567) |
Ending balance | 178,108 | 175,737 | 167,748 |
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | ||
Amortization | 0 | 0 | 0 |
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
International Traditional Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 11,151 | 12,415 | 13,399 |
Capitalization additions | 0 | 0 | 0 |
Amortization | (1,046) | (956) | (984) |
Experience adjustment | (22) | 0 | 0 |
Ending balance | 10,127 | 11,459 | 12,415 |
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | ||
Amortization | 0 | 0 | 0 |
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
International Universal Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 152,287 | 167,556 | 184,262 |
Capitalization additions | 394 | 113 | 1,072 |
Amortization | (11,176) | (11,648) | (17,666) |
Experience adjustment | 25 | 6 | (112) |
Ending balance | 141,480 | 156,015 | 167,556 |
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | ||
Amortization | 0 | 0 | 0 |
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
SPIAs With Life Contingencies | |||
Balances of and changes in DPAC | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Balances of and changes in DSI | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
Annuities excl. SPIAs WLC | |||
Balances of and changes in DPAC | |||
Beginning balance | 306,489 | 341,897 | 342,278 |
Capitalization additions | 5,458 | 15,010 | 38,836 |
Amortization | (26,241) | (24,591) | (40,187) |
Experience adjustment | (161) | (42) | 970 |
Ending balance | 285,867 | 312,736 | 341,897 |
Balances of and changes in DSI | |||
Beginning balance | 85,303 | 102,976 | 96,378 |
Capitalization additions | 18,117 | ||
Amortization | (6,212) | (8,091) | (11,775) |
Experience adjustment | 36 | 31 | 256 |
Ending balance | 74,928 | 88,598 | 102,976 |
Balances of and changes in VOBA | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
ONL & Affiliates | |||
Balances of and changes in DPAC | |||
Beginning balance | 14,762 | 11,289 | 7,789 |
Capitalization additions | 3,172 | 3,198 | 4,176 |
Amortization | (644) | (552) | (676) |
Experience adjustment | (5) | 0 | 0 |
Ending balance | 17,295 | 13,935 | 11,289 |
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | ||
Amortization | 0 | 0 | 0 |
Experience adjustment | 0 | 0 | 0 |
Ending balance | $ 0 | 0 | 0 |
Balances of and changes in VOBA | |||
Beginning balance | $ 149,408 | 162,968 | |
Capitalization additions | 0 | ||
Amortization | (13,560) | ||
Experience adjustment | 0 | ||
Ending balance | $ 149,408 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Oct. 08, 2023 | Dec. 31, 2022 | |
NWLIC | ||||||
Dividends Payable [Line Items] | ||||||
Percentage of statutory surplus (percent) | 10% | 10% | ||||
Maximum dividend payment which may be paid without prior approval | $ 66,500,000 | $ 66,500,000 | ||||
NWLIC | Dividend Paid | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 0 | $ 2,000,000 | ||||
NWLIC | Dividend Declared | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | $ 0 | |||||
Ozark National Life Insurance Company | ||||||
Dividends Payable [Line Items] | ||||||
Percentage of statutory surplus (percent) | 10% | 10% | ||||
Maximum dividend payment which may be paid without prior approval | $ 21,600,000 | $ 21,600,000 | ||||
Ozark National Life Insurance Company | Dividend Paid | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 0 | 0 | ||||
Ozark National Life Insurance Company | Dividend Declared | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 0 | 0 | ||||
NIS Financial Services Inc | ||||||
Dividends Payable [Line Items] | ||||||
Maximum dividend payment | $ 13,600,000 | |||||
NIS Financial Services Inc | Dividend Paid | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 12,000,000 | 0 | ||||
NIS Financial Services Inc | Dividend Declared | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 12,000,000 | 0 | ||||
National Western Life Group Inc | Dividend Paid | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | 0 | 0 | ||||
National Western Life Group Inc | Dividend Declared | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | $ 0 | 0 | ||||
S. USA Life Insurance Company, Inc. | Subsequent Event | National Western Life Insurance Group, Inc | ||||||
Dividends Payable [Line Items] | ||||||
Conversion right for each outstanding share (in usd per share) | $ 500 | |||||
Class B | ||||||
Dividends Payable [Line Items] | ||||||
Portion of the Board of Directors that can be elected by Class A Common Stock holders (percent) | 33.3333% | 33.3333% | ||||
Percentage limit on cash or in-kind dividends paid on Class A Common Stock available to Class B Common Stock (percent) | 50% | 50% | ||||
Dividends | $ 0 | $ 0 | $ 0 | 0 | ||
Class B | S. USA Life Insurance Company, Inc. | Subsequent Event | National Western Life Insurance Group, Inc | ||||||
Dividends Payable [Line Items] | ||||||
Dividends allowed prior to close of merger agreement (in dollars per share) | 0.18 | |||||
Class A | ||||||
Dividends Payable [Line Items] | ||||||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 | ||
Class A | S. USA Life Insurance Company, Inc. | Subsequent Event | National Western Life Insurance Group, Inc | ||||||
Dividends Payable [Line Items] | ||||||
Dividends allowed prior to close of merger agreement (in dollars per share) | $ 0.36 | |||||
Board of Directors Chairman | Class B | ||||||
Dividends Payable [Line Items] | ||||||
Common stock, percentage ownership | 99% | 99% |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) class_of_stock $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) class_of_stock $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | ||||
Number of classes of common stock | class_of_stock | 2 | 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 | $ 64,725 | $ 35,188 | $ 106,663 | $ 229,277 |
Undistributed earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Allocation of net earnings: | ||||
Undistributed earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Class A | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | 62,895 | 34,193 | 103,647 | 222,793 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 62,895 | 34,193 | 103,647 | 222,793 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 62,895 | 34,193 | 103,647 | 222,793 |
Net earnings | $ 62,895 | $ 34,193 | $ 103,647 | $ 222,793 |
Denominator: | ||||
Basic earnings per share - weighted-average shares (in shares) | shares | 3,436,000 | 3,436,000 | 3,436,000 | 3,436,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 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 | 3,436,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 18.30 | $ 9.95 | $ 30.17 | $ 64.84 |
Class B | ||||
Numerator for Basic and Diluted Earnings Per Share: | ||||
Net earnings | $ 1,830 | $ 995 | $ 3,016 | $ 6,484 |
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 1,830 | 995 | 3,016 | 6,484 |
Allocation of net earnings: | ||||
Dividends | 0 | 0 | 0 | 0 |
Undistributed earnings | 1,830 | 995 | 3,016 | 6,484 |
Net earnings | $ 1,830 | $ 995 | $ 3,016 | $ 6,484 |
Denominator: | ||||
Basic earnings per share - weighted-average shares (in shares) | shares | 200,000 | 200,000 | 200,000 | 200,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 200,000 | 200,000 | 200,000 | 200,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 9.15 | $ 4.98 | $ 15.08 | $ 32.42 |
Deferred Transaction Costs - Na
Deferred Transaction Costs - Narrative (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Deferred Charges, Insurers [Abstract] | |
Cost of reinsurance asset, ceding commission | $ 48 |
Cost of reinsurance, asset | $ 102.8 |
Deferred Transaction Costs - De
Deferred Transaction Costs - Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Balances of and changes in DPAC | |||
Beginning balance | $ 663,882 | $ 704,353 | $ 695,875 |
Ending balance | 635,837 | 673,112 | 704,353 |
DPAC Balances | 635,837 | 673,112 | 704,353 |
Domestic Traditional Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 3,159 | 3,448 | 4,014 |
Capitalization additions | 11 | 14 | 19 |
Amortization | (213) | (232) | (585) |
In force ceded | 0 | ||
Experience adjustment | 3 | 0 | 0 |
Ending balance | 2,960 | 3,230 | 3,448 |
DPAC Balances | 2,960 | 3,230 | 3,448 |
Domestic Universal Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 176,034 | 167,748 | 144,133 |
Capitalization additions | 11,646 | 19,884 | 33,447 |
Amortization | (9,470) | (11,924) | (9,265) |
In force ceded | 0 | ||
Experience adjustment | (102) | 29 | 567 |
Ending balance | 178,108 | 175,737 | 167,748 |
DPAC Balances | 178,108 | 175,737 | 167,748 |
International Traditional Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 11,151 | 12,415 | 13,399 |
Capitalization additions | 0 | 0 | 0 |
Amortization | (1,046) | (956) | (984) |
In force ceded | 0 | ||
Experience adjustment | 22 | 0 | 0 |
Ending balance | 10,127 | 11,459 | 12,415 |
DPAC Balances | 10,127 | 11,459 | 12,415 |
International Universal Life | |||
Balances of and changes in DPAC | |||
Beginning balance | 152,287 | 167,556 | 184,262 |
Capitalization additions | 394 | 113 | 1,072 |
Amortization | (11,176) | (11,648) | (17,666) |
In force ceded | 0 | ||
Experience adjustment | (25) | (6) | 112 |
Ending balance | 141,480 | 156,015 | 167,556 |
DPAC Balances | 141,480 | 156,015 | 167,556 |
SPIAs With Life Contingencies | |||
Balances of and changes in DPAC | |||
Beginning balance | 0 | ||
Ending balance | 0 | ||
DPAC Balances | 0 | ||
Annuities excl. SPIAs WLC | |||
Balances of and changes in DPAC | |||
Beginning balance | 306,489 | 341,897 | 342,278 |
Capitalization additions | 5,458 | 15,010 | 38,836 |
Amortization | (26,241) | (24,591) | (40,187) |
In force ceded | (19,622) | ||
Experience adjustment | 161 | 42 | (970) |
Ending balance | 285,867 | 312,736 | 341,897 |
DPAC Balances | 285,867 | 312,736 | 341,897 |
ONL & Affiliates | |||
Balances of and changes in DPAC | |||
Beginning balance | 14,762 | 11,289 | 7,789 |
Capitalization additions | 3,172 | 3,198 | 4,176 |
Amortization | (644) | (552) | (676) |
In force ceded | 0 | ||
Experience adjustment | 5 | 0 | 0 |
Ending balance | 17,295 | 13,935 | 11,289 |
DPAC Balances | $ 17,295 | $ 13,935 | $ 11,289 |
Deferred Transaction Costs - _2
Deferred Transaction Costs - Deferred Sales Inducements (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | |
Balances of and changes in DSI | |||
Beginning balance | $ 85,303 | $ 102,976 | $ 96,378 |
Ending balance | 74,928 | 88,598 | 102,976 |
DSI Balances | 74,928 | 88,598 | 102,976 |
Domestic Traditional Life | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | 0 | |
Amortization | 0 | 0 | 0 |
In force ceded | 0 | ||
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
DSI Balances | 0 | 0 | 0 |
Domestic Universal Life | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | 0 | |
Amortization | 0 | 0 | 0 |
In force ceded | 0 | ||
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
DSI Balances | 0 | 0 | 0 |
International Traditional Life | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | 0 | |
Amortization | 0 | 0 | 0 |
In force ceded | 0 | ||
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
DSI Balances | 0 | 0 | 0 |
International Universal Life | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | 0 | |
Amortization | 0 | 0 | 0 |
In force ceded | 0 | ||
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
DSI Balances | 0 | 0 | 0 |
SPIAs With Life Contingencies | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | 0 |
DSI Balances | 0 | 0 | 0 |
Annuities excl. SPIAs WLC | |||
Balances of and changes in DSI | |||
Beginning balance | 85,303 | 102,976 | 96,378 |
Capitalization additions | (4,199) | 4,901 | |
Amortization | (6,212) | (8,091) | (11,775) |
In force ceded | (11,219) | ||
Experience adjustment | 36 | 31 | 256 |
Ending balance | 74,928 | 88,598 | 102,976 |
DSI Balances | 74,928 | 88,598 | 102,976 |
ONL & Affiliates | |||
Balances of and changes in DSI | |||
Beginning balance | 0 | 0 | 0 |
Capitalization additions | 0 | 0 | |
Amortization | 0 | 0 | 0 |
In force ceded | 0 | ||
Experience adjustment | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
DSI Balances | $ 0 | $ 0 | $ 0 |
Deferred Transaction Costs - Va
Deferred Transaction Costs - Value of Business Acquired (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balances of and changes in VOBA | ||
Beginning balance | $ 138,495 | $ 149,408 |
Amortization | (6,523) | (9,518) |
Experience adjustment | 32 | 0 |
Ending balance | $ 132,004 | $ 139,890 |
Deferred Transaction Costs - Es
Deferred Transaction Costs - Estimated Future Amortization of VOBA (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Deferred Charges, Insurers [Abstract] | |
Remainder of 2023 | $ 2,101 |
2024 | 8,141 |
2025 | 7,734 |
2026 | 7,326 |
2027 | $ 6,942 |
Deferred Transaction Costs - Co
Deferred Transaction Costs - Cost of Reinsurance (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Balances of and changes in COR | ||
Ending balance | $ 69,945 | $ 81,494 |
Cost of reinsurance | 69,945 | 81,494 |
SPIAs With Life Contingencies | ||
Balances of and changes in COR | ||
Beginning balance | 11,897 | 12,591 |
Additions | 0 | 0 |
Amortization | (604) | (503) |
Experience Adjustment | 0 | 0 |
Ending balance | 11,293 | 12,088 |
Cost of reinsurance | 11,293 | 12,088 |
Annuities excl. SPIAs WLC | ||
Balances of and changes in COR | ||
Beginning balance | 66,431 | 77,095 |
Additions | 0 | 0 |
Amortization | (7,779) | (7,689) |
Experience Adjustment | 0 | 0 |
Ending balance | 58,652 | 69,406 |
Cost of reinsurance | $ 58,652 | $ 69,406 |
Policyholder Obligations - Liab
Policyholder Obligations - Liability for Policyholders' Account Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Policyholder Account Balance [Roll Forward] | ||||
Beginning balance | $ 7,661,785 | $ 8,220,944 | $ 8,378,037 | |
Ending balance | 7,078,891 | 7,859,381 | 8,220,944 | |
Policyholder Account Balances | 7,078,891 | 7,859,381 | 8,220,944 | $ 8,378,037 |
Domestic Universal Life | ||||
Policyholder Account Balance [Roll Forward] | ||||
Beginning balance | 1,409,471 | 1,412,058 | 1,222,694 | |
Issuances | 0 | 0 | ||
Premiums received | 85,794 | 120,956 | 225,349 | |
Policy charges | (49,789) | (53,411) | (76,147) | |
Surrenders and withdrawals | (50,399) | (41,785) | (47,483) | |
Benefit payments | (21,739) | (16,428) | (25,418) | |
Interest credited | 20,509 | 37,863 | 89,508 | |
Change in embedded derivative | 26,014 | (54,767) | ||
Other | 2,218 | 371 | 23,555 | |
Ending balance | 1,422,079 | 1,404,857 | 1,412,058 | |
Less reinsurance recoverable | 0 | 0 | 0 | 0 |
Ending balance, net of reinsurance | $ 1,422,079 | $ 1,404,857 | 1,412,058 | 1,222,694 |
Weighted-average crediting rate | 2.14% | 4.13% | ||
Net amount at risk | $ 1,614 | $ 1,638 | ||
Cash surrender value | 1,209,991 | 1,228,130 | ||
Policyholder Account Balances | 1,422,079 | 1,404,857 | 1,412,058 | 1,222,694 |
International Universal Life | ||||
Policyholder Account Balance [Roll Forward] | ||||
Beginning balance | 575,096 | 647,586 | 677,900 | |
Issuances | 0 | 0 | ||
Premiums received | 27,508 | 31,738 | 46,147 | |
Policy charges | (56,523) | (52,904) | (68,800) | |
Surrenders and withdrawals | (37,170) | (32,791) | (47,644) | |
Benefit payments | (1,984) | (1,550) | (2,040) | |
Interest credited | 7,004 | 13,772 | 36,902 | |
Change in embedded derivative | 4,203 | (14,161) | ||
Other | (614) | 1,476 | 5,121 | |
Ending balance | 517,520 | 593,166 | 647,586 | |
Less reinsurance recoverable | 0 | 0 | 0 | 0 |
Ending balance, net of reinsurance | $ 517,520 | $ 593,166 | 647,586 | 677,900 |
Weighted-average crediting rate | 1.62% | 2.97% | ||
Net amount at risk | $ 6,443 | $ 7,318 | ||
Cash surrender value | 485,660 | 555,903 | ||
Policyholder Account Balances | 517,520 | 593,166 | 647,586 | 677,900 |
Annuities excl. SPIAs WLC | ||||
Policyholder Account Balance [Roll Forward] | ||||
Beginning balance | 5,677,218 | 6,161,300 | 6,477,443 | |
Issuances | 0 | 0 | ||
Premiums received | 85,174 | 196,463 | 430,846 | |
Policy charges | (22,595) | (22,259) | (28,643) | |
Surrenders and withdrawals | (446,357) | (369,437) | (580,269) | |
Benefit payments | (141,361) | (148,832) | (207,302) | |
Interest credited | 41,292 | 57,969 | 155,783 | |
Change in embedded derivative | (36,488) | (4,515) | ||
Other | (18,877) | (15,216) | (86,558) | |
Ending balance | 5,138,006 | 5,855,473 | 6,161,300 | |
Less reinsurance recoverable | (1,135,906) | (1,290,600) | (1,458,076) | (1,677,898) |
Ending balance, net of reinsurance | $ 4,002,100 | $ 4,564,873 | 4,703,224 | 4,799,545 |
Weighted-average crediting rate | 0.94% | 1.24% | ||
Net amount at risk | $ 1,208,274 | $ 1,111,573 | ||
Cash surrender value | 4,883,247 | 5,473,356 | ||
Policyholder Account Balances | 5,138,006 | 5,855,473 | $ 6,161,300 | $ 6,477,443 |
Unearned revenue reserve | ||||
Policyholder Account Balance [Roll Forward] | ||||
Ending balance | 1,286 | 5,885 | ||
Policyholder Account Balances | $ 1,286 | $ 5,885 |
Policyholder Obligations - Acco
Policyholder Obligations - Account Balances by Guaranteed Minimum Interest Rates (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | $ 3,463,419 | $ 3,846,830 |
Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 1,946,341 | 2,261,285 |
2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 667,120 | 622,334 |
3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 464,387 | 553,169 |
4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 385,571 | 410,042 |
At Guaranteed Minimum | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 3,142,313 | 3,469,748 |
At Guaranteed Minimum | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 1,810,654 | 2,044,059 |
At Guaranteed Minimum | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 522,451 | 509,776 |
At Guaranteed Minimum | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 423,674 | 505,906 |
At Guaranteed Minimum | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 385,534 | 410,007 |
1-50 Basis Points Above | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 47,836 | 54,470 |
1-50 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 1,901 | 2,104 |
1-50 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 7,940 | 7,997 |
1-50 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 37,995 | 44,369 |
1-50 Basis Points Above | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 0 | 0 |
51-150 Basis Points Above | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 108,706 | 198,065 |
51-150 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 17,311 | 90,636 |
51-150 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 88,704 | 104,561 |
51-150 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 2,691 | 2,868 |
51-150 Basis Points Above | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 0 | 0 |
Greater Than 150 Basis Points Above | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 164,564 | 124,547 |
Greater Than 150 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 116,475 | 124,486 |
Greater Than 150 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 48,025 | 0 |
Greater Than 150 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 27 | 26 |
Greater Than 150 Basis Points Above | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | $ 37 | $ 35 |
Policyholder Obligations - Li_2
Policyholder Obligations - Liability for Additional Insurance Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | $ 115,151 | $ 119,374 | |||
Interest accrual | $ 2,383 | 3,736 | |||
Ending balance | 158,040 | 148,684 | 115,151 | ||
Gross Assessments | 75,799 | 61,082 | |||
Interest Expenses | 2,383 | 3,736 | |||
Domestic Universal Life | |||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 63,804 | 54,097 | 45,136 | ||
Beginning balance before shadow reserve adjustments | 63,804 | 54,097 | |||
Effect of changes in cash flow assumptions | 3,844 | $ 1,870 | $ 7,061 | ||
Effect of actual variances from expected experience | 5,493 | 5,898 | 0 | ||
Adjusted beginning of period balance | 63,434 | 71,572 | 52,197 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 950 | 1,993 | 4,767 | ||
Assessments collected | 15,875 | 13,436 | 14,775 | ||
Benefit payments | (18,318) | (16,031) | (17,687) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 45 | ||
Other | (39) | (30) | |||
Ending balance before shadow reserve adjustments | 70,040 | 62,802 | 54,097 | ||
Effect of shadow reserve adjustments | 0 | 0 | 0 | ||
Ending balance | 70,040 | 62,802 | 54,097 | ||
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Net additional liability, after reinsurance recoverable | 70,040 | 62,802 | 54,097 | 45,136 | |
Gross Assessments | 45,525 | 39,029 | |||
Interest Expenses | 950 | 1,993 | 4,767 | ||
International Universal Life | |||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 46,402 | 48,336 | 63,046 | ||
Beginning balance before shadow reserve adjustments | 46,402 | 48,336 | |||
Effect of changes in cash flow assumptions | (18) | 6,055 | (14,524) | ||
Effect of actual variances from expected experience | 7,118 | (736) | 0 | ||
Adjusted beginning of period balance | 55,436 | 51,721 | 48,522 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 340 | 1,154 | 3,264 | ||
Assessments collected | 7,546 | 6,011 | 8,304 | ||
Benefit payments | (7,610) | (15,768) | (10,565) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | (1,189) | ||
Other | (1,002) | 524 | |||
Ending balance before shadow reserve adjustments | 50,995 | 47,357 | 48,336 | ||
Effect of shadow reserve adjustments | 0 | 0 | 0 | ||
Ending balance | 50,995 | 47,357 | 48,336 | ||
Less reinsurance recoverable | 0 | 0 | 0 | 0 | |
Net additional liability, after reinsurance recoverable | 50,995 | 47,357 | 48,336 | $ 63,046 | |
Gross Assessments | 30,401 | 25,005 | |||
Interest Expenses | 340 | 1,154 | 3,264 | ||
Annuities | |||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Ending balance | 37,005 | 38,525 | |||
Annuities Netting | |||||
Additional Liability, Long-Duration Insurance [Roll Forward] | |||||
Beginning balance | 38,502 | 12,718 | |||
Beginning balance before shadow reserve adjustments | 38,502 | 12,718 | |||
Effect of changes in cash flow assumptions | 24,599 | (1,759) | |||
Effect of actual variances from expected experience | 1,843 | 625 | |||
Adjusted beginning of period balance | 39,160 | $ 37,368 | |||
Issuances | 0 | 0 | |||
Interest accrual | 1,093 | 589 | |||
Assessments collected | (98) | (69) | |||
Benefit payments | (1,343) | (1,146) | |||
Derecognition (lapses and withdrawals) | 0 | 0 | |||
Other | (15) | (9) | |||
Ending balance before shadow reserve adjustments | 37,005 | 38,525 | 12,718 | ||
Effect of shadow reserve adjustments | 0 | 0 | |||
Ending balance | 37,005 | 38,525 | $ 12,718 | ||
Less reinsurance recoverable | (37,005) | (38,525) | |||
Net additional liability, after reinsurance recoverable | 0 | 0 | |||
Gross Assessments | (127) | (2,952) | |||
Interest Expenses | $ 1,093 | $ 589 |
Policyholder Obligations - Li_3
Policyholder Obligations - Liability for Future Policy Benefits (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2020 | |
Present value of expected future policy benefits | |||||
Liability for future policy benefits | $ 843,636 | $ 922,252 | $ 900,146 | ||
Gross Premiums or Assessments | 69,353 | 75,931 | |||
Interest Expense | 29,499 | 29,416 | |||
Expected Future Gross Premiums | 1,605,561 | 1,151,285 | |||
Expected Future Benefit Payments | 2,878,634 | 2,328,913 | |||
Domestic Traditional Life | |||||
Present value of expected net premiums | |||||
Balance, beginning of period | 260 | 395 | |||
Beginning balance at original discount rate | 660 | 706 | |||
Effect of changes in cash flow assumptions | $ 0 | (325) | |||
Effect of actual variances from expected experience | 109 | 133 | |||
Adjusted beginning of period balance | 815 | 468 | |||
Issuances | 0 | 0 | |||
Interest accrual | (19) | 1 | |||
Net premium collected | (132) | (62) | |||
Ending balance at original discount rate | 317 | 754 | 706 | ||
Effect of changes in discount rate assumptions | (488) | (389) | |||
Balance, end of period | (171) | 365 | 395 | ||
Present value of expected future policy benefits | |||||
Balance, beginning of period | 70,165 | 90,864 | 102,407 | ||
Beginning balance at original discount rate | 62,839 | 64,242 | |||
Effect of changes in cash flow assumptions | 0 | (824) | $ 0 | ||
Effect of actual variances from expected experience | (142) | (132) | (525) | ||
Adjusted beginning of period balance | 64,100 | 61,883 | 65,403 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 2,851 | 2,946 | 4,058 | ||
Benefit payments | (3,825) | (3,661) | (6,538) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | 114 | 137 | 597 | ||
Ending balance at original discount rate | 61,023 | 63,522 | 64,242 | ||
Effect of changes in discount rate | 4,590 | 6,238 | |||
Balance, end of period | 65,613 | 69,760 | 90,864 | ||
Net liability for future policy benefits | 65,784 | 69,395 | |||
Less reinsurance recoverable | (12,665) | (12,431) | (13,841) | (13,680) | |
Net liability for future policy benefits, after reinsurance | 53,119 | 56,964 | 76,628 | 88,727 | |
Liability for future policy benefits | 65,784 | 69,395 | |||
Gross Premiums or Assessments | 2,295 | 2,476 | |||
Interest Expense | 2,870 | 2,945 | |||
Expected Future Gross Premiums | 32,013 | 33,319 | |||
Expected Future Benefit Payments | 103,177 | 108,001 | |||
International Traditional Life | |||||
Present value of expected net premiums | |||||
Balance, beginning of period | 33,998 | 50,123 | |||
Beginning balance at original discount rate | 35,906 | 40,670 | |||
Effect of changes in cash flow assumptions | 0 | 4,019 | |||
Effect of actual variances from expected experience | (258) | (1,139) | |||
Adjusted beginning of period balance | 40,412 | 38,786 | |||
Issuances | 0 | 0 | |||
Interest accrual | 1,121 | 1,266 | |||
Net premium collected | (3,386) | (3,605) | |||
Ending balance at original discount rate | 36,521 | 38,073 | 40,670 | ||
Effect of changes in discount rate assumptions | (3,364) | (2,697) | |||
Balance, end of period | 33,157 | 35,376 | 50,123 | ||
Present value of expected future policy benefits | |||||
Balance, beginning of period | 99,167 | 131,707 | 95,402 | ||
Beginning balance at original discount rate | 100,976 | 105,103 | |||
Effect of changes in cash flow assumptions | 0 | 4,433 | 0 | ||
Effect of actual variances from expected experience | (2,098) | (3,872) | (252) | ||
Adjusted beginning of period balance | 103,005 | 101,537 | 69,018 | ||
Issuances | 0 | 0 | 0 | ||
Interest accrual | 4,104 | 4,321 | 4,391 | ||
Benefit payments | (4,740) | (3,658) | (17,221) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | (1,250) | (349) | 2,608 | ||
Ending balance at original discount rate | 99,651 | 103,319 | 105,103 | ||
Effect of changes in discount rate | (5,637) | (3,645) | |||
Balance, end of period | 94,014 | 99,674 | 131,707 | ||
Net liability for future policy benefits | 60,857 | 64,298 | |||
Less reinsurance recoverable | (532) | (553) | (578) | (607) | |
Net liability for future policy benefits, after reinsurance | 60,325 | 63,745 | 81,006 | 94,795 | |
Liability for future policy benefits | 60,857 | 64,298 | |||
Gross Premiums or Assessments | 9,110 | 10,061 | |||
Interest Expense | 2,983 | 3,055 | |||
Expected Future Gross Premiums | 162,304 | 163,976 | |||
Expected Future Benefit Payments | 221,506 | 225,183 | |||
SPIAs With Life Contingencies | |||||
Present value of expected net premiums | |||||
Balance, beginning of period | 0 | 0 | |||
Beginning balance at original discount rate | 0 | 0 | |||
Effect of changes in cash flow assumptions | 0 | 0 | |||
Effect of actual variances from expected experience | 0 | 0 | |||
Adjusted beginning of period balance | 0 | 0 | |||
Issuances | 0 | 0 | |||
Interest accrual | 0 | 0 | |||
Net premium collected | 0 | 0 | |||
Ending balance at original discount rate | 0 | 0 | 0 | ||
Effect of changes in discount rate assumptions | 0 | 0 | |||
Balance, end of period | 0 | 0 | 0 | ||
Present value of expected future policy benefits | |||||
Balance, beginning of period | 191,817 | 244,551 | 238,127 | ||
Beginning balance at original discount rate | 215,637 | 223,904 | |||
Effect of changes in cash flow assumptions | 172 | 0 | (316) | ||
Effect of actual variances from expected experience | 3,032 | 3,083 | 5,724 | ||
Adjusted beginning of period balance | 227,108 | 218,720 | 206,145 | ||
Issuances | 9,005 | 9,554 | 39,338 | ||
Interest accrual | 5,305 | 5,440 | 7,076 | ||
Benefit payments | (16,752) | (17,667) | (22,173) | ||
Derecognition (lapses and withdrawals) | (5,032) | (4,927) | (6,840) | ||
Other | (322) | 0 | 358 | ||
Ending balance at original discount rate | 210,924 | 219,508 | 223,904 | ||
Effect of changes in discount rate | (28,456) | (27,724) | |||
Balance, end of period | 182,468 | 191,784 | 244,551 | ||
Net liability for future policy benefits | 182,468 | 191,784 | |||
Less reinsurance recoverable | (152,949) | (161,944) | (211,912) | (238,127) | |
Net liability for future policy benefits, after reinsurance | 29,519 | 29,840 | 32,638 | 0 | |
Liability for future policy benefits | 182,468 | 191,784 | |||
Gross Premiums or Assessments | 1,151 | 5,683 | |||
Interest Expense | 5,305 | 5,440 | |||
Expected Future Gross Premiums | 0 | 0 | |||
Expected Future Benefit Payments | 281,949 | 291,505 | |||
ONL & Affiliates | |||||
Present value of expected net premiums | |||||
Balance, beginning of period | 402,744 | 340,287 | |||
Beginning balance at original discount rate | 494,961 | 330,854 | |||
Effect of changes in cash flow assumptions | 169,179 | 6,353 | |||
Effect of actual variances from expected experience | 10,761 | (3,726) | |||
Adjusted beginning of period balance | 510,794 | 497,588 | |||
Issuances | 7,497 | 6,217 | |||
Interest accrual | 11,972 | 8,013 | |||
Net premium collected | (29,052) | (24,214) | |||
Ending balance at original discount rate | 488,005 | 500,810 | 330,854 | ||
Effect of changes in discount rate assumptions | (109,489) | (57,403) | |||
Balance, end of period | 378,516 | 443,407 | 340,287 | ||
Present value of expected future policy benefits | |||||
Balance, beginning of period | 975,999 | 1,158,431 | 866,852 | ||
Beginning balance at original discount rate | 1,293,523 | 1,114,085 | |||
Effect of changes in cash flow assumptions | 175,122 | 6,876 | 0 | ||
Effect of actual variances from expected experience | 11,758 | (3,273) | 114 | ||
Adjusted beginning of period balance | 1,300,965 | $ 1,297,126 | 780,950 | ||
Issuances | 7,340 | 5,918 | 227 | ||
Interest accrual | 30,313 | 25,989 | 23,801 | ||
Benefit payments | (42,932) | (44,116) | (56,616) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | 0 | ||
Other | (1,694) | (95) | (770) | ||
Ending balance at original discount rate | 1,290,153 | 1,288,661 | 1,114,085 | ||
Effect of changes in discount rate | (377,110) | (248,479) | |||
Balance, end of period | 913,043 | 1,040,182 | 1,158,431 | ||
Net liability for future policy benefits | 534,527 | 596,775 | |||
Less reinsurance recoverable | (24,395) | (26,239) | (31,476) | (33,731) | |
Net liability for future policy benefits, after reinsurance | 510,132 | 570,536 | $ 786,669 | $ 833,121 | |
Liability for future policy benefits | 534,527 | 596,775 | |||
Gross Premiums or Assessments | 56,797 | 57,711 | |||
Interest Expense | 18,341 | 17,976 | |||
Expected Future Gross Premiums | 1,411,244 | 953,990 | |||
Expected Future Benefit Payments | $ 2,272,002 | $ 1,704,224 |
Policyholder Obligations - Actu
Policyholder Obligations - Actual Experience and Expected Experience For Mortality and Lapses of Additional Insurance Liabilities And Liability for Future Policy Benefits (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Domestic Traditional Life | ||
Mortality: | ||
Actual Experience | 1.84% | 1.32% |
Expected Experience | 2.12% | 1.89% |
Lapses: | ||
Actual Experience | 4.36% | 6.91% |
Expected Experience | 6.02% | 6.51% |
Domestic Universal Life | ||
Mortality: | ||
Actual Experience | 1.68% | 1.11% |
Expected Experience | 1.91% | 1.69% |
Lapses: | ||
Actual Experience | 5.68% | 4.74% |
Expected Experience | 3.40% | 4.69% |
International Traditional Life | ||
Mortality: | ||
Actual Experience | 0.18% | 0.24% |
Expected Experience | 0.41% | 0.37% |
Lapses: | ||
Actual Experience | 8.35% | 8.03% |
Expected Experience | 7.75% | 7.92% |
International Universal Life | ||
Mortality: | ||
Actual Experience | 0.27% | 0.27% |
Expected Experience | 0.25% | 0.24% |
Lapses: | ||
Actual Experience | 11.94% | 8.39% |
Expected Experience | 6.92% | 7.16% |
SPIAs With Life Contingencies | ||
Mortality: | ||
Actual Experience | 11.62% | 8.44% |
Expected Experience | 12.14% | 8.74% |
Annuities excl. SPIAs WLC | ||
Mortality: | ||
Actual Experience | 2.86% | 2.73% |
Expected Experience | 2.61% | 2.67% |
Lapses: | ||
Actual Experience | 6.20% | 4.05% |
Expected Experience | 4.27% | 4.24% |
ONL & Affiliates | ||
Mortality: | ||
Actual Experience | 1.05% | 0.94% |
Expected Experience | 0.86% | 0.82% |
Lapses: | ||
Actual Experience | 4.24% | 3.90% |
Expected Experience | 4.75% | 7.96% |
Policyholder Obligations - Weig
Policyholder Obligations - Weighted Average Durations and Weighted Average Interest Rates (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Domestic Traditional Life | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 8 years | 8 years |
Interest Accretion Rate | 6.73% | 6.80% |
Current Discount Rate | 5.60% | 5.30% |
Domestic Universal Life | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 8 years 1 month 6 days | 8 years 1 month 6 days |
Interest Accretion Rate | 4.56% | 0.98% |
Current Discount Rate | 4.56% | 0.98% |
International Traditional Life | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 8 years | 8 years |
Interest Accretion Rate | 5.16% | 5.24% |
Current Discount Rate | 5.60% | 5.30% |
International Universal Life | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 8 years 1 month 6 days | 8 years 1 month 6 days |
Interest Accretion Rate | 1.93% | 1.53% |
Current Discount Rate | 1.93% | 1.53% |
SPIAs With Life Contingencies | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 8 years | 8 years |
Interest Accretion Rate | 3.48% | 3.36% |
Current Discount Rate | 5.60% | 5.30% |
Annuities excl. SPIAs WLC | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 6 years 7 months 6 days | 6 years 7 months 6 days |
Interest Accretion Rate | 1.02% | 0.93% |
Current Discount Rate | 1.02% | 0.93% |
ONL & Affiliates | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-Average Durations | 22 years | 22 years |
Interest Accretion Rate | 3.25% | 3.25% |
Current Discount Rate | 6.15% | 5.85% |
Market Risk Benefits - Balances
Market Risk Benefits - Balances of and Changes in Market Risk Benefits (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Market Risk Benefit [Roll Forward] | ||||
Beginning balance | $ 299,833 | $ 301,601 | ||
Balance, beginning of year, before effect of changes in instrument-specific credit risk: | 299,833 | 301,601 | ||
Issuances | 3,184 | |||
Interest accrual | 0 | |||
Attributed fees collected | 38,182 | |||
Benefit payments | 0 | |||
Effect of changes in interest rates | (36,112) | |||
Effect of changes in equity markets | 0 | |||
Effect of changes in equity index volatility | 0 | |||
Actual policyholder behavior different from expected behavior | (7,022) | |||
Effect of changes in future expected policyholder behavior | 0 | |||
Effect of changes in other future expected assumptions | 0 | |||
Balance, end of year, before effect of changes in instrument-specific credit risk | 299,833 | |||
Effect of changes in the instrument-specific credit risk | 0 | |||
Ending balance | 299,833 | |||
Balance, end of period, net of reinsurance | 231,595 | $ 227,950 | ||
Guaranteed Minimum Withdrawal Benefits | ||||
Market Risk Benefit [Roll Forward] | ||||
Beginning balance | $ 97,552 | 231,859 | ||
Balance, beginning of year, before effect of changes in instrument-specific credit risk: | 97,552 | 231,859 | ||
Issuances | 64 | 420 | ||
Interest accrual | 0 | 0 | ||
Attributed fees collected | 37,572 | 37,587 | ||
Benefit payments | 0 | 0 | ||
Effect of changes in interest rates | (25,485) | (184,636) | ||
Effect of changes in equity markets | 0 | 0 | ||
Effect of changes in equity index volatility | 0 | 0 | ||
Actual policyholder behavior different from expected behavior | (1,304) | (3,746) | ||
Effect of changes in future expected policyholder behavior | (173) | 0 | ||
Effect of changes in other future expected assumptions | 0 | 0 | ||
Balance, end of year, before effect of changes in instrument-specific credit risk | 108,226 | 81,484 | 231,859 | |
Effect of changes in the instrument-specific credit risk | 0 | 0 | ||
Ending balance | 108,226 | 81,484 | 231,859 | |
Less reinsurance recoverable | (2,874) | 2,865 | ||
Balance, end of period, net of reinsurance | 105,352 | 84,349 | ||
Net amount at risk | $ 1,082,774 | $ 982,619 | ||
Weighted-average attained age of contract holders | 69 years 7 months 6 days | 68 years 10 months 24 days | ||
Guaranteed Annuitization Benefits | ||||
Market Risk Benefit [Roll Forward] | ||||
Beginning balance | $ 69,466 | $ 67,974 | ||
Balance, beginning of year, before effect of changes in instrument-specific credit risk: | 69,466 | 67,974 | ||
Issuances | 0 | 0 | ||
Interest accrual | 0 | 0 | ||
Attributed fees collected | 0 | 0 | ||
Benefit payments | 0 | 0 | ||
Effect of changes in interest rates | (5,426) | 1,292 | ||
Effect of changes in equity markets | 0 | 0 | ||
Effect of changes in equity index volatility | 0 | 0 | ||
Actual policyholder behavior different from expected behavior | 0 | 0 | ||
Effect of changes in future expected policyholder behavior | 0 | 0 | ||
Effect of changes in other future expected assumptions | 0 | 0 | ||
Balance, end of year, before effect of changes in instrument-specific credit risk | 64,040 | 69,266 | 67,974 | |
Effect of changes in the instrument-specific credit risk | 0 | 0 | ||
Ending balance | 64,040 | 69,266 | 67,974 | |
Less reinsurance recoverable | (64,373) | (69,650) | ||
Balance, end of period, net of reinsurance | (333) | (384) | ||
Net amount at risk | $ 125,500 | $ 128,954 | ||
Weighted-average attained age of contract holders | 67 years 9 months 18 days | 67 years | ||
Guaranteed Minimum Death Benefits | ||||
Market Risk Benefit [Roll Forward] | ||||
Beginning balance | $ 0 | $ 0 | ||
Balance, beginning of year, before effect of changes in instrument-specific credit risk: | 0 | 0 | ||
Issuances | 0 | 0 | ||
Interest accrual | 0 | 0 | ||
Attributed fees collected | 0 | 0 | ||
Benefit payments | 0 | 0 | ||
Effect of changes in interest rates | 0 | 0 | ||
Effect of changes in equity markets | 0 | 0 | ||
Effect of changes in equity index volatility | 0 | 0 | ||
Actual policyholder behavior different from expected behavior | 0 | 0 | ||
Effect of changes in future expected policyholder behavior | 0 | 0 | ||
Effect of changes in other future expected assumptions | 0 | 0 | ||
Balance, end of year, before effect of changes in instrument-specific credit risk | 0 | 0 | 0 | |
Effect of changes in the instrument-specific credit risk | 0 | 0 | ||
Ending balance | 0 | 0 | $ 0 | |
Less reinsurance recoverable | 0 | 0 | ||
Balance, end of period, net of reinsurance | 0 | 0 | ||
Net amount at risk | $ 0 | $ 0 | ||
Weighted-average attained age of contract holders | 0 years | 0 years |
Market Risk Benefits - Reconcil
Market Risk Benefits - Reconciliation Of The Gross Balances In an Asset or Liability Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Market Risk Benefit [Line Items] | |||
Asset | $ 48,240 | $ 48,759 | $ 51,881 |
Market risk benefits liability (Note 1) | 220,506 | $ 215,777 | 202,631 |
Net liability | 172,266 | 150,750 | |
Guaranteed minimum withdrawal benefit | |||
Market Risk Benefit [Line Items] | |||
Asset | 48,240 | 51,881 | |
Market risk benefits liability (Note 1) | 156,466 | 133,365 | |
Net liability | 108,226 | 81,484 | |
Guaranteed annuitization benefits | |||
Market Risk Benefit [Line Items] | |||
Asset | 0 | 0 | |
Market risk benefits liability (Note 1) | 64,040 | 69,266 | |
Net liability | $ 64,040 | $ 69,266 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) benefit_plan | Dec. 31, 2007 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Number of non-qualified defined benefit pension plans | benefit_plan | 3 | |
Number of healthcare plans | benefit_plan | 2 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Vesting percentage in accrued benefits from plan freeze | 100% | |
Minimum required contribution | $ 0 | |
Planned contributions remaining | 0 | |
Maximum contributions payable | 0 | |
Company contributions to 2021 year plan | 0 | |
Company contributions to plan | 0 | |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Company contributions to plan | $ 1,300,000 | |
Plan participant's age threshold for Company's contingent liability with respect to the Plan | 70 years | |
Aggregate average annual participant salary increase | 10% | |
Company expected contributions to plans in fiscal year | $ 2,000,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 27 | $ 32 | $ 81 | $ 98 |
Interest cost | 200 | 145 | 599 | 435 |
Expected return on plan assets | (311) | (394) | (931) | (1,181) |
Amortization of net loss | 70 | 34 | 209 | 101 |
Net periodic benefit cost | (14) | (183) | (42) | (547) |
Chairman and President Non-Qualified Defined Benefit Plans | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 203 | 260 | 611 | 779 |
Interest cost | 410 | 278 | 1,227 | 835 |
Amortization of prior service cost | 14 | 14 | 44 | 44 |
Amortization of net loss | 0 | 585 | 0 | 1,754 |
Net periodic benefit cost | 627 | 1,137 | 1,882 | 3,412 |
Postretirement Employment Plans Other Than Pension | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Interest cost | 60 | 44 | 182 | 130 |
Amortization of net loss | 0 | 52 | 0 | 156 |
Net periodic benefit cost | $ 60 | $ 96 | $ 182 | $ 286 |
Segment and Other Operating I_3
Segment and Other Operating Information - Balance Sheet Items (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | |||
Market risk benefit assets | $ 48,240 | $ 48,759 | $ 51,881 |
Total segment assets | 12,059,430 | 12,782,945 | |
Market risk benefits liability | 220,506 | 215,777 | 202,631 |
Other policyholder liabilities | 3,463,419 | $ 3,846,830 | |
Funds withheld liability | 1,161,155 | 1,333,036 | |
Total segment assets | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 912,714 | 966,008 | |
Market risk benefit assets | 48,240 | 48,759 | |
Total segment assets | 11,538,524 | 12,292,874 | |
Future policyholder obligations | 8,080,567 | 8,710,639 | |
Market risk benefits liability | 220,506 | 215,777 | |
Other policyholder liabilities | 137,169 | 175,089 | |
Funds withheld liability | 1,161,155 | 1,333,036 | |
Total segment assets | Domestic Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 181,068 | 179,193 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 1,850,885 | 1,803,876 | |
Future policyholder obligations | 1,568,410 | 1,553,624 | |
Market risk benefits liability | 0 | 0 | |
Other policyholder liabilities | 24,790 | 25,596 | |
Funds withheld liability | 0 | 0 | |
Total segment assets | International Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 151,606 | 163,438 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 836,338 | 889,022 | |
Future policyholder obligations | 620,153 | 675,786 | |
Market risk benefits liability | 0 | 0 | |
Other policyholder liabilities | 8,069 | 15,560 | |
Funds withheld liability | 0 | 0 | |
Total segment assets | Annuities | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 430,741 | 470,120 | |
Market risk benefit assets | 48,240 | 48,759 | |
Total segment assets | 7,596,824 | 8,270,315 | |
Future policyholder obligations | 5,357,477 | 5,907,974 | |
Market risk benefits liability | 220,506 | 215,777 | |
Other policyholder liabilities | 91,068 | 118,615 | |
Funds withheld liability | 1,161,155 | 1,333,036 | |
Total segment assets | ONL & Affiliates | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 149,299 | 153,257 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 932,773 | 994,318 | |
Future policyholder obligations | 534,527 | 573,255 | |
Market risk benefits liability | 0 | 0 | |
Other policyholder liabilities | 13,242 | 15,318 | |
Funds withheld liability | 0 | 0 | |
Total segment assets | All Others | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 0 | 0 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 321,704 | 335,343 | |
Future policyholder obligations | 0 | 0 | |
Market risk benefits liability | 0 | 0 | |
Other policyholder liabilities | 0 | 0 | |
Funds withheld liability | $ 0 | $ 0 |
Segment and Other Operating I_4
Segment and Other Operating Information - Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | $ 56,102 | $ 56,147 | $ 171,387 | $ 170,547 |
Net investment income (loss) | 68,964 | 79,504 | 281,387 | 204,702 |
Other revenues | 5,741 | 5,761 | 16,731 | 17,136 |
Total revenues | 156,690 | 142,157 | 495,481 | 398,690 |
Life and other policy benefits | 26,557 | 27,768 | 83,435 | 87,481 |
Policy benefit remeasurement (gain)/loss | 8,360 | 9,827 | 8,360 | 9,827 |
Market risk benefits expense | (29,439) | (33,571) | 6,733 | (150,069) |
Amortization of deferred transaction costs | 20,326 | 21,613 | 63,600 | 67,549 |
Universal life and annuity contract interest | (10,417) | 42,235 | 52,742 | 2,466 |
Other operating expenses | 42,430 | 29,387 | 129,556 | 92,290 |
Federal income taxes | 34,148 | 9,710 | 44,392 | 59,869 |
Net earnings | 64,725 | 35,188 | 106,663 | 229,277 |
Total segment assets | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 56,102 | 56,147 | 171,387 | 170,547 |
Net investment income (loss) | 68,964 | 79,504 | 281,387 | 204,702 |
Other revenues | 5,741 | 5,761 | 16,731 | 17,136 |
Total revenues | 130,807 | 141,412 | 469,505 | 392,385 |
Life and other policy benefits | 26,557 | 27,768 | 83,435 | 87,481 |
Policy benefit remeasurement (gain)/loss | 8,360 | 9,827 | 8,360 | 9,827 |
Market risk benefits expense | (29,439) | (33,571) | 6,733 | (150,069) |
Amortization of deferred transaction costs | 20,326 | 21,613 | 63,600 | 67,549 |
Universal life and annuity contract interest | (10,417) | 42,235 | 52,742 | 2,466 |
Other operating expenses | 42,430 | 29,387 | 129,556 | 92,290 |
Federal income taxes | 28,713 | 9,554 | 38,937 | 58,546 |
Total expenses | 86,530 | 106,813 | 383,363 | 168,090 |
Net earnings | 44,277 | 34,599 | 86,142 | 224,295 |
Total segment assets | Domestic Life Insurance | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 12,807 | 13,466 | 38,229 | 39,278 |
Net investment income (loss) | 4,181 | 8,489 | 51,985 | (453) |
Other revenues | 10 | 26 | 24 | 77 |
Total revenues | 16,998 | 21,981 | 90,238 | 38,902 |
Life and other policy benefits | 6,180 | 6,647 | 13,569 | 14,425 |
Policy benefit remeasurement (gain)/loss | 1,370 | 3,843 | 1,370 | 3,843 |
Market risk benefits expense | 0 | 0 | 0 | 0 |
Amortization of deferred transaction costs | 3,407 | 5,586 | 9,782 | 12,127 |
Universal life and annuity contract interest | 638 | 826 | 39,985 | (15,751) |
Other operating expenses | 8,740 | 7,133 | 27,162 | 20,013 |
Federal income taxes | (875) | (414) | (545) | 880 |
Total expenses | 19,460 | 23,621 | 91,323 | 35,537 |
Net earnings | (2,462) | (1,640) | (1,085) | 3,365 |
Total segment assets | International Life Insurance | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 22,871 | 18,303 | 64,476 | 56,612 |
Net investment income (loss) | 2,229 | 3,986 | 16,296 | (3,051) |
Other revenues | 2 | 24 | 6 | 63 |
Total revenues | 25,102 | 22,313 | 80,778 | 53,624 |
Life and other policy benefits | 3,880 | 6,419 | 9,410 | 13,048 |
Policy benefit remeasurement (gain)/loss | 6,469 | (18) | 6,469 | (18) |
Market risk benefits expense | 0 | 0 | 0 | 0 |
Amortization of deferred transaction costs | 4,148 | 3,771 | 12,225 | 12,610 |
Universal life and annuity contract interest | 646 | 2,421 | 11,592 | (7,922) |
Other operating expenses | 7,300 | 4,384 | 22,208 | 14,121 |
Federal income taxes | 3,179 | 1,138 | 6,314 | 4,518 |
Total expenses | 25,622 | 18,115 | 68,218 | 36,357 |
Net earnings | (520) | 4,198 | 12,560 | 17,267 |
Total segment assets | Annuities | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 1,895 | 5,570 | 12,497 | 17,532 |
Net investment income (loss) | 54,169 | 55,365 | 168,439 | 171,575 |
Other revenues | 1,872 | 1,584 | 5,674 | 4,182 |
Total revenues | 57,936 | 62,519 | 186,610 | 193,289 |
Life and other policy benefits | 1,846 | 5,142 | 16,582 | 22,767 |
Policy benefit remeasurement (gain)/loss | 0 | 93 | 0 | 93 |
Market risk benefits expense | (29,439) | (33,571) | 6,733 | (150,069) |
Amortization of deferred transaction costs | 10,457 | 9,022 | 34,463 | 32,741 |
Universal life and annuity contract interest | (11,701) | 38,988 | 1,165 | 26,139 |
Other operating expenses | 19,943 | 11,614 | 60,594 | 38,592 |
Federal income taxes | 22,390 | 6,860 | 22,437 | 46,255 |
Total expenses | 13,496 | 38,148 | 141,974 | 16,518 |
Net earnings | 44,440 | 24,371 | 44,636 | 176,771 |
Total segment assets | ONL & Affiliates | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 18,529 | 18,808 | 56,185 | 57,125 |
Net investment income (loss) | 8,358 | 7,301 | 24,519 | 21,438 |
Other revenues | 2,829 | 2,778 | 8,154 | 8,866 |
Total revenues | 29,716 | 28,887 | 88,858 | 87,429 |
Life and other policy benefits | 14,651 | 9,560 | 43,874 | 37,241 |
Policy benefit remeasurement (gain)/loss | 521 | 5,909 | 521 | 5,909 |
Market risk benefits expense | 0 | 0 | 0 | 0 |
Amortization of deferred transaction costs | 2,314 | 3,234 | 7,130 | 10,071 |
Universal life and annuity contract interest | 0 | 0 | 0 | 0 |
Other operating expenses | 4,949 | 4,755 | 15,167 | 14,826 |
Federal income taxes | 1,481 | 1,075 | 4,511 | 3,905 |
Total expenses | 23,916 | 24,533 | 71,203 | 71,952 |
Net earnings | 5,800 | 4,354 | 17,655 | 15,477 |
Total segment assets | All Others | ||||
Condensed Consolidated Income Statements | ||||
Premiums and contract revenues | 0 | 0 | 0 | 0 |
Net investment income (loss) | 27 | 4,363 | 20,148 | 15,193 |
Other revenues | 1,028 | 1,349 | 2,873 | 3,948 |
Total revenues | 1,055 | 5,712 | 23,021 | 19,141 |
Life and other policy benefits | 0 | 0 | 0 | 0 |
Policy benefit remeasurement (gain)/loss | 0 | 0 | 0 | 0 |
Market risk benefits expense | 0 | 0 | 0 | 0 |
Amortization of deferred transaction costs | 0 | 0 | 0 | 0 |
Universal life and annuity contract interest | 0 | 0 | 0 | 0 |
Other operating expenses | 1,498 | 1,501 | 4,425 | 4,738 |
Federal income taxes | 2,538 | 895 | 6,220 | 2,988 |
Total expenses | 4,036 | 2,396 | 10,645 | 7,726 |
Net earnings | $ (2,981) | $ 3,316 | $ 12,376 | $ 11,415 |
Segment and Other Operating I_5
Segment and Other Operating Information - Premiums and Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Premiums and contract revenues | $ 56,102 | $ 56,147 | $ 171,387 | $ 170,547 |
Net investment income (loss) | 68,964 | 79,504 | 281,387 | 204,702 |
Other revenues | 5,741 | 5,761 | 16,731 | 17,136 |
Net realized investment gains | 25,883 | 745 | 25,976 | 6,305 |
Total revenues | $ 156,690 | $ 142,157 | $ 495,481 | $ 398,690 |
Segment and Other Operating I_6
Segment and Other Operating Information - Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Federal income taxes | $ 34,148 | $ 9,710 | $ 44,392 | $ 59,869 |
Total segment assets | ||||
Segment Reporting Information [Line Items] | ||||
Federal income taxes | 28,713 | 9,554 | 38,937 | 58,546 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Taxes on realized gains on investments | $ 5,435 | $ 156 | $ 5,455 | $ 1,323 |
Segment and Other Operating I_7
Segment and Other Operating Information - Net Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net earnings | $ 64,725 | $ 35,188 | $ 106,663 | $ 229,277 |
Total segment assets | ||||
Segment Reporting Information [Line Items] | ||||
Net earnings | 44,277 | 34,599 | 86,142 | 224,295 |
Segment Reconciling Items | ||||
Segment Reporting Information [Line Items] | ||||
Realized gains on investments, net of taxes | $ 20,448 | $ 589 | $ 20,521 | $ 4,982 |
Segment and Other Operating I_8
Segment and Other Operating Information - Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 12,059,430 | $ 12,782,945 |
Total segment assets | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | 11,538,524 | 12,292,874 |
Other unallocated assets | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 520,906 | $ 490,071 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | Jun. 30, 2023 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Term of extension | 10 years | ||||||||
Liability balance of accrued costs | $ 61,400,000 | $ 61,400,000 | $ 20,500,000 | ||||||
Increase in share-based liability and related compensation expense | $ 5,400,000 | ||||||||
Total intrinsic value of options exercised | 1,800,000 | $ 1,100,000 | |||||||
Fair value of vested awards | 1,400,000 | 100,000 | |||||||
Cash received from exercise of stock options | $ 0 | 0 | |||||||
Closing stock price (in dollars per share) | $ 437.49 | $ 437.49 | |||||||
Pre-tax compensation cost (benefit) recognized | $ 11,300,000 | $ (1,200,000) | $ 43,600,000 | 1,400,000 | |||||
Compensation cost (benefit), tax expense (benefit) | (2,400,000) | $ 200,000 | (9,200,000) | $ (300,000) | |||||
Compensation cost related to nonvested options not yet recognized | $ 16,800,000 | $ 16,800,000 | |||||||
Weighted average period over which the compensation is expected to be recognized | 9 months 18 days | ||||||||
Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 3 years | ||||||||
Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 1 year | ||||||||
Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 1 year | ||||||||
RSUs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 100% | ||||||||
Vesting period | 3 years | ||||||||
RSUs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 1 year | ||||||||
PSUs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Performance period | 3 years | ||||||||
Performance outcome period | 3 years | ||||||||
Award measurement period | 3 years | 3 years | |||||||
Performance factor used to determine compensation payout percentage | 74.54% | 110.19% | |||||||
SARs | 210.22 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise price (in dollars per share) | $ 210.22 | ||||||||
Vesting Service Period, Trench One | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench One | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench One | Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench One | RSUs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 3 years | ||||||||
Vesting Service Period, Trench Two | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Two | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench Two | Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Two | RSUs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Requisite service period of awards | 3 years | ||||||||
Vesting Service Period, Trench Three | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Three | Employee SARs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 33.30% | ||||||||
Vesting Service Period, Trench Three | Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Four | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Four | Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Five | Employee SARs granted before 2016 | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
Vesting Service Period, Trench Five | Employee Stock Options and SARs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting percentage | 20% | ||||||||
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 | $ 0.01 | ||||||
Closing stock price (in dollars per share) | $ 281 | $ 415.56 | $ 242.62 | ||||||
Class A | RSUs | Directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting price determining period | 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 | Vesting Service Period, Trench Two | RSUs | Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting price determining period | 20 days | ||||||||
Class A | Incentive Plan | |||||||||
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 |
Share-Based Payments - Granted
Share-Based Payments - Granted Issued to Officers and Directors (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Officers and Directors | SARs, RSUs and PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grant price, moving average period | 20 days | |||
Officers | SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Officers | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Officers | PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Directors | SARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Directors | RSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 2,170 | 3,710 |
Directors | PSUs | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Grants in the period (in shares) | 0 | 0 | 0 | 0 |
Share-Based Payments - Options
Share-Based Payments - Options and Stock Appreciation Rights Outstanding (Details) | 9 Months Ended |
Sep. 30, 2023 $ / 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 |
Shares | |
Beginning balance (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock option granted (in shares) | 0 |
Ending balance (in shares) | 0 |
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 option granted (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 0 |
SARs | |
Liability Awards | |
Beginning balance (in shares) | 286,589 |
Exercised (in shares) | (2,860) |
Forfeited (in shares) | (5,927) |
Granted (in shares) | 0 |
Ending balance (in shares) | 277,802 |
RSUs | |
Liability Awards | |
Beginning balance (in shares) | 21,861 |
Exercised (in shares) | (3,710) |
Forfeited (in shares) | (689) |
Granted (in shares) | 2,170 |
Ending balance (in shares) | 19,632 |
PSUs | |
Liability Awards | |
Beginning balance (in shares) | 24,845 |
Exercised (in shares) | (6,066) |
Forfeited (in shares) | (335) |
Granted (in shares) | 0 |
Ending balance (in shares) | 18,444 |
Share-Based Payments - Exercise
Share-Based Payments - Exercise Range (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 277,802 |
Number Exercisable (in shares) | 116,855 |
SARs | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding, Aggregate intrinsic value | $ | $ 58,799 |
Number Exercisable, Aggregate intrinsic value | $ | $ 23,467 |
SARs | 210.22 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 210.22 |
Number Outstanding (in shares) | 21,650 |
Weighted- Average Remaining Contractual Life | 2 months 12 days |
Number Exercisable (in shares) | 21,650 |
SARs | 216.48 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 216.48 |
Number Outstanding (in shares) | 10,342 |
Weighted- Average Remaining Contractual Life | 2 years 4 months 24 days |
Number Exercisable (in shares) | 10,342 |
SARs | 311.16 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 311.16 |
Number Outstanding (in shares) | 7,807 |
Weighted- Average Remaining Contractual Life | 3 years 4 months 24 days |
Number Exercisable (in shares) | 7,807 |
SARs | 334.34 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 334.34 |
Number Outstanding (in shares) | 7,443 |
Weighted- Average Remaining Contractual Life | 4 years 2 months 12 days |
Number Exercisable (in shares) | 7,443 |
SARs | 303.77 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 303.77 |
Number Outstanding (in shares) | 9,357 |
Weighted- Average Remaining Contractual Life | 5 years 2 months 12 days |
Number Exercisable (in shares) | 9,357 |
SARs | 252.91 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 252.91 |
Number Outstanding (in shares) | 16,626 |
Weighted- Average Remaining Contractual Life | 6 years 2 months 12 days |
Number Exercisable (in shares) | 16,626 |
SARs | 192.1 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 192.10 |
Number Outstanding (in shares) | 35,861 |
Weighted- Average Remaining Contractual Life | 7 years 2 months 12 days |
Number Exercisable (in shares) | 23,899 |
SARs | 218.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 218.44 |
Number Outstanding (in shares) | 59,087 |
Weighted- Average Remaining Contractual Life | 8 years 2 months 12 days |
Number Exercisable (in shares) | 19,731 |
SARs | 220.61 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 220.61 |
Number Outstanding (in shares) | 109,629 |
Weighted- Average Remaining Contractual Life | 9 years 2 months 12 days |
Number Exercisable (in shares) | 0 |
Share-Based Payments - Black Sc
Share-Based Payments - Black Scholes Option Pricing Model Assumptions (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.08% | 0.13% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 2 months 12 days | 10 months 24 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 9 months 18 days | 6 years 8 months 12 days |
Weighted-Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility weighted-average | 40.06% | 36.18% |
Risk-free rate weighted-average | 5.50% | 4.19% |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended | |||||||||
May 10, 2022 USD ($) | Mar. 04, 2022 USD ($) | Feb. 11, 2022 USD ($) | Nov. 11, 2019 USD ($) | Jul. 27, 2019 USD ($) | Sep. 30, 2020 class_action_suit | Oct. 08, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2021 USD ($) | Apr. 30, 2019 USD ($) | |
National Western Life Insurance Group, Inc | Subsequent Event | S. USA Life Insurance Company, Inc. | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Contract termination fee | $ 66,500,000 | |||||||||
Revolving Credit Facility | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other commitment | $ 0 | |||||||||
New Loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other commitment | 0 | |||||||||
Existing Loans | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other commitment | 25,300,000 | |||||||||
Capital Contributions to Investment Funds | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other commitment | 177,200,000 | |||||||||
Private Placement | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Other commitment | $ 0 | |||||||||
Tax Status Of Companys International Life Insurance Products Member | Internal Revenue Service (IRS) | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Accrued settlement amount | $ 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 | |||||||||
Williams v Pantaleoni et al | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Equity indexed annuity | $ 100,000 | |||||||||
Punitive damages reversed | $ 2,500,000 | |||||||||
Williams v Pantaleoni et al | Economic Damages | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | $ 14,949 | 14,949 | ||||||||
Punitive damages reversed | 2,500,000 | |||||||||
Williams v Pantaleoni et al | Non-Economic Damages | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | 420,000 | 420,000 | ||||||||
Williams v Pantaleoni et al | Plaintiff Attorney's Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | 1,260,000 | $ 1,260,000 | ||||||||
Williams v Pantaleoni et al | Appellate Costs | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | 538,461 | |||||||||
Williams v Pantaleoni et al | Reduced Plaintiff Attorney's Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | $ 842,380 | |||||||||
Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Number of proposed claims | class_action_suit | 2 | |||||||||
Accrued settlement amount | $ 4,400,000 | |||||||||
Judicial Ruling | Williams v Pantaleoni et al | Economic Damages | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | $ 14,949 | |||||||||
Judicial Ruling | Williams v Pantaleoni et al | Non-Economic Damages | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | $ 2,900,000 | |||||||||
Judicial Ruling | Williams v Pantaleoni et al | Plaintiff Attorney's Fees | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Loss contingency, damages awarded | $ 1,260,000 |
Investments - Investment Gains
Investments - Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Available-for-sale debt securities: | ||||
Realized gains on disposal | $ 231 | $ 27 | $ 344 | $ 5,254 |
Realized losses on disposal | 0 | (190) | 0 | (193) |
Real estate gains (losses) | 0 | 908 | (20) | 1,244 |
Other | 25,652 | 0 | 25,652 | 0 |
Net realized investment gains | $ 25,883 | $ 745 | $ 25,976 | $ 6,305 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 | Sep. 30, 2023 USD ($) investment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) investment | Sep. 30, 2023 | Sep. 30, 2023 issue | Sep. 30, 2023 security | |
Schedule of Investments [Line Items] | ||||||||
Percentage of gain (loss) on bonds due to calls of securities (percent) | 100% | 100% | 81.60% | 92.20% | ||||
Proceeds from tender of shares held in Moody Bancshares | $ 28,615 | $ 4,053 | ||||||
Debt securities available for sale | $ 7,994,143 | 7,994,143 | $ 8,438,760 | |||||
Proceeds from sale of investment | 44,678 | 39,254 | ||||||
Debt securities, available-for-sale | 7,052,554 | 7,052,554 | 7,611,633 | |||||
Loans originated during the year | $ 6,800 | 45,400 | $ 47,400 | |||||
Number of mortgage loan | investment | 3 | 3 | ||||||
Other long-term investments | 308,899 | $ 308,899 | $ 262,106 | |||||
Mortgage Loan Investment | ||||||||
Schedule of Investments [Line Items] | ||||||||
Loan investments made by reinsurer | 19,300 | 19,300 | 19,300 | |||||
Real Estate | ||||||||
Schedule of Investments [Line Items] | ||||||||
Other long-term investments | 27,300 | 27,300 | 27,700 | |||||
Operating income from real estate | 2,300 | 2,300 | ||||||
Total net gain | $ 1,200 | |||||||
Moody Bancshares Inc | ||||||||
Schedule of Investments [Line Items] | ||||||||
Cost basis in Moody Bancshares | 195 | 195 | ||||||
Proceeds from tender of shares held in Moody Bancshares | 25,800 | |||||||
Ozark National Holdings | ||||||||
Schedule of Investments [Line Items] | ||||||||
Debt securities, available-for-sale | $ 663,000 | $ 663,000 | $ 674,800 | |||||
US Treasury Bond Securities | ||||||||
Schedule of Investments [Line Items] | ||||||||
Increase in 10-year U.S. Treasury bond rate | 0.69% | |||||||
Debt Securities | ||||||||
Schedule of Investments [Line Items] | ||||||||
Gross unrealized losses, number of issues | 1,076 | 1,076 | ||||||
Gross unrealized losses, percentage of total debt | 97.60% | |||||||
Gross unrealized losses, market value as a percent of amortized cost | 88% | |||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater | security | 966 | |||||||
Gross unrealized losses, number of securities with maturities of 12 months or greater percentage | 89.80% | |||||||
Debt Securities | External Credit Rating, Investment Grade | ||||||||
Schedule of Investments [Line Items] | ||||||||
Gross unrealized losses, number of issues | security | 1,060 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt securities: | ||
Totals before allowance for credit losses | $ 7,994,143 | $ 8,438,760 |
Gross Unrealized Gains | 409 | 3,082 |
Gross Unrealized Losses | (941,998) | (830,209) |
Fair Value | 7,052,554 | 7,611,633 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 494,796 | 6,673,701 |
12 Months or Greater | 6,442,091 | 653,807 |
Total | 6,936,887 | 7,327,508 |
Unrealized Losses | ||
Less than 12 Months | (21,856) | (635,555) |
12 Months or Greater | (920,142) | (194,656) |
Total | (941,998) | (830,211) |
U.S. agencies | ||
Debt securities: | ||
Totals before allowance for credit losses | 12,102 | 21,003 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (460) | (377) |
Fair Value | 11,642 | 20,626 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 4,539 | 20,626 |
12 Months or Greater | 7,103 | 0 |
Total | 11,642 | 20,626 |
Unrealized Losses | ||
Less than 12 Months | (296) | (377) |
12 Months or Greater | (164) | 0 |
Total | (460) | (377) |
U.S. Treasury | ||
Debt securities: | ||
Totals before allowance for credit losses | 2,820 | 2,813 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized Losses | (141) | (90) |
Fair Value | 2,679 | 2,729 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 1,003 | 1,749 |
12 Months or Greater | 1,676 | 0 |
Total | 2,679 | 1,749 |
Unrealized Losses | ||
Less than 12 Months | (11) | (90) |
12 Months or Greater | (130) | 0 |
Total | (141) | (90) |
States and political subdivisions | ||
Debt securities: | ||
Totals before allowance for credit losses | 454,240 | 476,338 |
Gross Unrealized Gains | 97 | 668 |
Gross Unrealized Losses | (79,618) | (65,507) |
Fair Value | 374,719 | 411,499 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 46,636 | 346,009 |
12 Months or Greater | 312,203 | 28,420 |
Total | 358,839 | 374,429 |
Unrealized Losses | ||
Less than 12 Months | (2,704) | (55,014) |
12 Months or Greater | (76,914) | (10,493) |
Total | (79,618) | (65,507) |
Foreign governments | ||
Debt securities: | ||
Totals before allowance for credit losses | 62,951 | 62,964 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (19,551) | (17,076) |
Fair Value | 43,400 | 45,888 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 0 | 22,591 |
12 Months or Greater | 43,400 | 23,296 |
Total | 43,400 | 45,887 |
Unrealized Losses | ||
Less than 12 Months | 0 | (7,658) |
12 Months or Greater | (19,551) | (9,420) |
Total | (19,551) | (17,078) |
Public utilities | ||
Debt securities: | ||
Totals before allowance for credit losses | 611,901 | 681,785 |
Gross Unrealized Gains | 0 | 117 |
Gross Unrealized Losses | (76,290) | (66,765) |
Fair Value | 535,611 | 615,137 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 2,434 | 601,824 |
12 Months or Greater | 533,177 | 10,747 |
Total | 535,611 | 612,571 |
Unrealized Losses | ||
Less than 12 Months | (19) | (61,970) |
12 Months or Greater | (76,271) | (4,795) |
Total | (76,290) | (66,765) |
Corporate | ||
Debt securities: | ||
Totals before allowance for credit losses | 5,665,482 | 6,199,886 |
Gross Unrealized Gains | 9 | 1,940 |
Gross Unrealized Losses | (648,756) | (570,255) |
Fair Value | 5,016,735 | 5,631,571 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 260,567 | 4,985,075 |
12 Months or Greater | 4,702,597 | 434,625 |
Total | 4,963,164 | 5,419,700 |
Unrealized Losses | ||
Less than 12 Months | (12,271) | (432,492) |
12 Months or Greater | (636,485) | (137,763) |
Total | (648,756) | (570,255) |
Commercial mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 22,452 | 21,965 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2,023) | (1,680) |
Fair Value | 20,429 | 20,285 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 4,846 | 20,285 |
12 Months or Greater | 15,583 | 0 |
Total | 20,429 | 20,285 |
Unrealized Losses | ||
Less than 12 Months | (153) | (1,680) |
12 Months or Greater | (1,870) | 0 |
Total | (2,023) | (1,680) |
Residential mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 265,707 | 337,186 |
Gross Unrealized Gains | 3 | 183 |
Gross Unrealized Losses | (19,150) | (16,338) |
Fair Value | 246,560 | 321,031 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 28,534 | 307,410 |
12 Months or Greater | 217,726 | 0 |
Total | 246,260 | 307,410 |
Unrealized Losses | ||
Less than 12 Months | (1,207) | (16,338) |
12 Months or Greater | (17,943) | 0 |
Total | (19,150) | (16,338) |
Asset-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 896,488 | 634,820 |
Gross Unrealized Gains | 300 | 168 |
Gross Unrealized Losses | (96,009) | (92,121) |
Fair Value | 800,779 | 542,867 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 146,237 | 368,132 |
12 Months or Greater | 608,626 | 156,719 |
Total | 754,863 | 524,851 |
Unrealized Losses | ||
Less than 12 Months | (5,195) | (59,936) |
12 Months or Greater | (90,814) | (32,185) |
Total | $ (96,009) | $ (92,121) |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities Available for Sale - Amortized Cost | ||
Due in 1 year or less | $ 845,731 | |
Due after 1 year through 5 years | 2,725,641 | |
Due after 5 years through 10 years | 1,303,748 | |
Due after 10 years | 1,934,376 | |
Amortized Cost | 6,809,496 | |
Mortgage and asset-backed securities | 1,184,647 | |
Totals before allowance for credit losses | 7,994,143 | $ 8,438,760 |
Allowance for Credit Losses | 0 | 0 |
Totals | 7,994,143 | |
Debt Securities Available for Sale - Fair Value | ||
Due in 1 year or less | 835,118 | |
Due after 1 year through 5 years | 2,576,629 | |
Due after 5 years through 10 years | 1,123,633 | |
Due after 10 years | 1,449,406 | |
Fair Value | 5,984,786 | |
Mortgage and asset-backed securities | 1,067,768 | |
Allowance for credit losses | 0 | |
Total | $ 7,052,554 | $ 7,611,633 |
Investments - Mortgage Loans an
Investments - Mortgage Loans and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Totals | $ 490,059 | $ 490,059 | $ 505,730 | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | 3,575 | ||||
Total ending allowance for credit losses | 4,296 | 4,296 | |||
Real Estate | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | 495,597 | 495,597 | 510,595 | ||
Market value adjustment | (1,242) | (1,242) | (1,290) | ||
Allowance for credit losses | (4,296) | (4,296) | (3,575) | ||
Totals | $ 490,059 | $ 490,059 | $ 505,730 | ||
Mortgage loans, percentage | 100% | 100% | 100% | ||
Market value adjustment percentage | (0.30%) | (0.30%) | (0.30%) | ||
Allowance for credit losses | (0.90%) | (0.90%) | (0.70%) | ||
Totals, percentage | 98.80% | 98.80% | 99% | ||
Allowance for Loan and Lease Losses [Roll Forward] | |||||
Balance, beginning of the period | $ 3,736 | $ 2,573 | $ 3,575 | $ 2,987 | |
Provision during the period | 560 | 1,225 | 721 | 811 | |
Total ending allowance for credit losses | 4,296 | $ 3,798 | 4,296 | $ 3,798 | |
Real Estate | Less than 50% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 114,675 | $ 114,675 | $ 100,757 | ||
Mortgage loans, percentage | 23.10% | 23.10% | 19.70% | ||
Real Estate | 50% to 60% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 158,291 | $ 158,291 | $ 145,093 | ||
Mortgage loans, percentage | 31.90% | 31.90% | 28.40% | ||
Real Estate | 60% to 70% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 192,448 | $ 192,448 | $ 217,445 | ||
Mortgage loans, percentage | 38.80% | 38.80% | 42.60% | ||
Real Estate | 70% to 80% | |||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||||
Mortgage loan, amount | $ 30,183 | $ 30,183 | $ 47,300 | ||
Mortgage loans, percentage | 6.20% | 6.20% | 9.30% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 7,052,554,000 | $ 7,052,554,000 | $ 7,611,633,000 | |
Debt securities, trading | 1,000,355,000 | 1,000,355,000 | 1,065,993,000 | |
Equity securities | 21,913,000 | 21,913,000 | 22,076,000 | |
Mortgage loans | 19,285,000 | 19,285,000 | 19,334,000 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Market risk benefits liabilities, net | 220,506,000 | 220,506,000 | $ 215,777,000 | $ 202,631,000 |
Transfer from Level 2 to Level 3 for debt securities available for sale | 0 | $ 0 | ||
Transfer from level 2 to level 3 for liabilities | $ 0 | |||
Derivative Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Policyholder account balances (a) | Policyholder account balances (a) | Policyholder account balances (a) | |
Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 7,052,554,000 | $ 7,052,554,000 | $ 7,611,633,000 | |
Debt securities, trading | 1,000,355,000 | 1,000,355,000 | 1,065,993,000 | |
Equity securities | 21,913,000 | 21,913,000 | 22,076,000 | |
Mortgage loans | 19,285,000 | 19,285,000 | 19,334,000 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Short-term investments | 7,821,000 | 7,821,000 | 3,937,000 | |
Total assets | 8,157,206,000 | 8,157,206,000 | 8,746,642,000 | |
Policyholder account balances | 383,034,000 | 383,034,000 | 387,686,000 | |
Market risk benefits liabilities, net | 172,266,000 | 172,266,000 | 167,018,000 | |
Embedded derivative contra-liability | (349,275,000) | (349,275,000) | (334,955,000) | |
Other liabilities | 61,379,000 | 61,379,000 | 20,542,000 | |
Total liabilities | $ 267,404,000 | $ 267,404,000 | $ 240,291,000 | |
Percent of total | 100% | 100% | 100% | |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 0 | $ 0 | $ 0 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 18,475,000 | 18,475,000 | 18,407,000 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Market risk benefits liabilities, net | 0 | 0 | 0 | |
Level 1 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 0 | 0 | 0 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 18,475,000 | 18,475,000 | 18,407,000 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Total assets | 18,475,000 | 18,475,000 | 18,407,000 | |
Policyholder account balances | 0 | 0 | 0 | |
Market risk benefits liabilities, net | 0 | 0 | 0 | |
Embedded derivative contra-liability | 0 | 0 | 0 | |
Other liabilities | 0 | 0 | 0 | |
Total liabilities | $ 0 | $ 0 | $ 0 | |
Percent of total | 0.20% | 0.20% | 0.20% | |
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 6,562,141,000 | $ 6,562,141,000 | $ 7,148,837,000 | |
Debt securities, trading | 872,462,000 | 872,462,000 | 942,756,000 | |
Equity securities | 3,438,000 | 3,438,000 | 3,669,000 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 7,821,000 | 7,821,000 | 3,937,000 | |
Market risk benefits liabilities, net | 0 | 0 | 0 | |
Level 2 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 6,562,141,000 | 6,562,141,000 | 7,148,838,000 | |
Debt securities, trading | 872,462,000 | 872,462,000 | 942,756,000 | |
Equity securities | 3,438,000 | 3,438,000 | 3,669,000 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 7,821,000 | 7,821,000 | 3,937,000 | |
Total assets | 7,445,862,000 | 7,445,862,000 | 8,099,200,000 | |
Policyholder account balances | 0 | 0 | 0 | |
Market risk benefits liabilities, net | 0 | 0 | 0 | |
Embedded derivative contra-liability | (338,252,000) | (338,252,000) | (324,712,000) | |
Other liabilities | 0 | 0 | 0 | |
Total liabilities | $ (338,252,000) | $ (338,252,000) | $ (324,712,000) | |
Percent of total | 91.30% | 91.30% | 92.60% | |
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 490,413,000 | $ 490,413,000 | $ 462,796,000 | |
Debt securities, trading | 127,893,000 | 127,893,000 | 123,237,000 | |
Equity securities | 0 | 0 | 0 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Short-term investments | 0 | 0 | 0 | |
Total assets | 123,190,000 | 123,190,000 | 95,337,000 | |
Market risk benefits liabilities, net | 172,266,000 | 172,266,000 | 167,018,000 | |
Total liabilities | 616,679,000 | 616,679,000 | 575,246,000 | |
Level 3 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 490,413,000 | 490,413,000 | 462,795,000 | |
Debt securities, trading | 127,893,000 | 127,893,000 | 123,237,000 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 19,285,000 | 19,285,000 | 19,334,000 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Short-term investments | 0 | 0 | 0 | |
Total assets | 692,869,000 | 692,869,000 | 629,035,000 | |
Policyholder account balances | 383,034,000 | 383,034,000 | 387,686,000 | |
Market risk benefits liabilities, net | 172,266,000 | 172,266,000 | 167,018,000 | |
Embedded derivative contra-liability | (11,023,000) | (11,023,000) | (10,243,000) | |
Other liabilities | 61,379,000 | 61,379,000 | 20,542,000 | |
Total liabilities | $ 605,656,000 | $ 605,656,000 | $ 565,003,000 | |
Percent of total | 8.50% | 8.50% | 7.20% | |
Priced by third-party vendors | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | $ 6,948,649,000 | $ 6,948,649,000 | $ 7,535,630,000 | |
Debt securities, trading | 1,000,355,000 | 1,000,355,000 | 1,065,993,000 | |
Equity securities | 21,913,000 | 21,913,000 | 22,076,000 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Short-term investments | 7,821,000 | 7,821,000 | 3,937,000 | |
Priced by third-party vendors | Level 1 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 0 | 0 | 0 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 18,475,000 | 18,475,000 | 18,407,000 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Priced by third-party vendors | Level 2 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 6,562,141,000 | 6,562,141,000 | 7,148,838,000 | |
Debt securities, trading | 872,462,000 | 872,462,000 | 942,756,000 | |
Equity securities | 3,438,000 | 3,438,000 | 3,669,000 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 7,821,000 | 7,821,000 | 3,937,000 | |
Priced by third-party vendors | Level 3 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 386,508,000 | 386,508,000 | 386,792,000 | |
Debt securities, trading | 127,893,000 | 127,893,000 | 123,237,000 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 55,278,000 | 55,278,000 | 23,669,000 | |
Short-term investments | 0 | 0 | 0 | |
Priced internally | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 103,905,000 | 103,905,000 | 76,003,000 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 19,285,000 | 19,285,000 | 19,334,000 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Priced internally | Level 1 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 0 | 0 | 0 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Priced internally | Level 2 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 0 | 0 | 0 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 0 | 0 | 0 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | 0 | |
Priced internally | Level 3 | Fair Value, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt securities, available-for-sale | 103,905,000 | 103,905,000 | 76,003,000 | |
Debt securities, trading | 0 | 0 | 0 | |
Equity securities | 0 | 0 | 0 | |
Mortgage loans | 19,285,000 | 19,285,000 | 19,334,000 | |
Derivatives, index options | 0 | 0 | 0 | |
Short-term investments | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value Measurements for Level 3 Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 717,889 | $ 498,535 | $ 629,035 | $ 511,875 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (21,405) | (16,203) | 3,265 | (100,557) |
Included in other comprehensive income (loss) | (16,193) | (12,642) | (11,338) | (43,335) |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 44,875 | 74,412 | 134,904 | 239,661 |
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (32,297) | (7,044) | (62,997) | (70,586) |
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at ending of period | $ 692,869 | $ 537,058 | $ 692,869 | $ 537,058 |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net earnings | Net earnings | 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: | $ (26,381) | $ 2,871 | $ (491) | $ (64,242) |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Asset, Gain (Loss), Statement of Other Comprehensive Income or Comprehensive Income [Extensible Enumeration] | Change during period | Change during period | Change during period | Change during period |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ 679,992 | $ 562,277 | $ 565,003 | $ 858,298 |
Total realized and unrealized (gains) losses: | ||||
Included in net earnings | (76,553) | (54,161) | 15,524 | (331,787) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 14,070 | 13,386 | 39,680 | 39,642 |
Sales | 0 | 0 | 0 | |
Issuances | 216 | 163 | 325 | 604 |
Settlements | (12,069) | (92) | (14,876) | (46,353) |
Transfers into (out of) Level 3 | 0 | 0 | 1,169 | |
Balance at end of period September 30, 2023 | 605,656 | 521,573 | 605,656 | 521,573 |
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: | $ (51,828) | $ (24,492) | $ 48,029 | $ (212,552) |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net earnings | Net earnings | Net earnings | Net earnings |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net | Net investment income, Benefits, Losses and Expenses (Income), Net |
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: | $ 2,871 | $ (491) | $ (64,242) | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income | 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: | $ (1,597) | $ (3,681) | $ (780) | $ (11,384) |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income | 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 | $ 0 | |
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Benefits, Losses and Expenses (Income), Net | Benefits, Losses and Expenses (Income), Net | Benefits, Losses and Expenses (Income), Net | |
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: | $ (50,231) | $ (20,811) | $ 48,809 | $ (201,168) |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Benefits, Losses and Expenses (Income), Net | Benefits, Losses and Expenses (Income), Net | Benefits, Losses and Expenses (Income), Net | Benefits, Losses and Expenses (Income), Net |
Embedded Derivative Financial Instruments | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | $ (9,426) | $ (6,534) | $ (10,243) | $ 0 |
Total realized and unrealized (gains) losses: | ||||
Included in net earnings | (1,597) | (3,681) | (780) | (11,384) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 | 1,169 | |
Balance at end of period September 30, 2023 | (11,023) | (10,215) | (11,023) | (10,215) |
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: | (1,597) | (3,681) | (780) | (11,384) |
Embedded Derivative Financial Instruments | 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: | (1,597) | (3,681) | (780) | (11,384) |
Embedded Derivative Financial Instruments | 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 | 0 | 0 |
Policyholder Account Balances | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 430,320 | 382,721 | 387,686 | 550,596 |
Total realized and unrealized (gains) losses: | ||||
Included in net earnings | (49,510) | (23,145) | (32,216) | (172,092) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 14,070 | 13,386 | 39,680 | 39,642 |
Sales | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 |
Settlements | (11,846) | (92) | (12,116) | (45,276) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | |
Balance at end of period September 30, 2023 | 383,034 | 372,870 | 383,034 | 372,870 |
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: | (24,785) | 6,524 | 289 | (52,858) |
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 | 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: | (24,785) | 6,524 | 289 | (52,858) |
Other Liabilities | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 50,295 | 9,332 | 20,542 | 7,869 |
Total realized and unrealized (gains) losses: | ||||
Included in net earnings | 11,068 | (1,319) | 43,336 | 1,192 |
Included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | |
Issuances | 239 | 155 | 261 | 184 |
Settlements | (223) | 0 | (2,760) | (1,077) |
Transfers into (out of) Level 3 | 0 | 0 | 0 | |
Balance at end of period September 30, 2023 | 61,379 | 8,168 | 61,379 | 8,168 |
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: | 11,068 | (1,319) | 43,336 | 1,193 |
Other Liabilities | 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 | 0 | 0 |
Other Liabilities | 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: | 11,068 | (1,319) | 43,336 | 1,193 |
Market Risk Benefits Liabilities, net | ||||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 208,803 | 176,758 | 167,018 | 299,833 |
Total realized and unrealized (gains) losses: | ||||
Included in net earnings | (36,514) | (26,016) | 5,184 | (149,503) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | |
Issuances | (23) | 8 | 64 | 420 |
Settlements | 0 | 0 | 0 | 0 |
Transfers into (out of) Level 3 | 0 | 0 | 0 | |
Balance at end of period September 30, 2023 | 172,266 | 150,750 | 172,266 | 150,750 |
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: | (36,514) | (26,016) | 5,184 | (149,503) |
Market Risk Benefits Liabilities, net | 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 | 0 | 0 |
Market Risk Benefits Liabilities, net | 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: | (36,514) | (26,016) | 5,184 | (149,503) |
Debt Securities, Available-for-Sale | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 483,980 | 373,957 | 462,796 | 326,962 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | 0 | 0 | 0 | 0 |
Included in other comprehensive income (loss) | (16,193) | (12,642) | (11,338) | (43,335) |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 28,582 | 55,888 | 64,239 | 151,872 |
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (5,956) | (6,656) | (25,284) | (24,952) |
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at ending of period | 490,413 | 410,547 | 490,413 | 410,547 |
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 | 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 | 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 | 0 | |
Trading Securities | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 141,624 | 99,769 | 123,236 | 74,822 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (1,492) | (3,102) | (828) | (9,705) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 2,223 | 3,904 | 30,985 | 35,454 |
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (14,462) | (265) | (25,500) | (265) |
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at ending of period | 127,893 | 100,306 | 127,893 | 100,306 |
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: | (1,492) | (3,102) | (828) | (9,705) |
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: | (3,102) | (828) | (9,705) | |
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 | 0 | |
Derivatives, Index Options | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 72,863 | 6,071 | 23,669 | 101,622 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (19,809) | (12,550) | 4,045 | (89,173) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 14,070 | 13,386 | 39,680 | 39,642 |
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (11,846) | (92) | (12,116) | (45,276) |
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at ending of period | 55,278 | 6,815 | 55,278 | 6,815 |
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: | (24,785) | 6,524 | 289 | (52,858) |
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: | 6,524 | 289 | (52,858) | |
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 | 0 | |
Mortgage Loans | ||||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||
Balance at beginning of period | 19,422 | 18,738 | 19,334 | 8,469 |
Total realized and unrealized gains (losses): | ||||
Included in net earnings | (104) | (551) | 48 | (1,679) |
Included in other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||||
Purchases | 0 | 1,234 | 0 | 12,693 |
Sales | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | (33) | (31) | (97) | (93) |
Transfers into (out of) Level 3 | 0 | 0 | ||
Balance at ending of period | 19,285 | 19,390 | 19,285 | 19,390 |
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: | $ (104) | (551) | 48 | (1,679) |
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: | (551) | 48 | (1,679) | |
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 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Quantitative Information (Details) $ in Thousands | Sep. 30, 2023 USD ($) year | Dec. 31, 2022 USD ($) year | Sep. 30, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 7,052,554 | $ 7,611,633 | |
Mortgage loans, at fair value | 19,285 | 19,334 | |
Market risk benefits liabilities, net | 220,506 | 215,777 | $ 202,631 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 490,413 | 462,796 | |
Total assets | 123,190 | 95,337 | |
Market risk benefits liabilities, net | 172,266 | 167,018 | |
Total liabilities | 616,679 | 575,246 | |
Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 103,905 | 76,003 | |
Mortgage loans, at fair value | 19,285 | 19,334 | |
Deterministic cash flow model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Policyholder account balances | 383,034 | 387,686 | |
Black-Scholes model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Share-based compensation | 61,379 | 20,542 | |
Risk-neutral valuation | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Market risk benefits liabilities, net | $ 172,266 | $ 167,018 | |
Expected volatility | Black-Scholes model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Share based compensation, measurement input | 0.4006 | 0.3618 | |
Minimum | Discount rate | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, available-for-sale, measurement input | 0.0355 | 0.0432 | |
Minimum | Spread | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans, measurement input | 0.0175 | 0.0150 | |
Minimum | Projected option cost | Deterministic cash flow model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Policyholder account balances, measurement input | 0 | 0 | |
Minimum | Expected term | Black-Scholes model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Share based compensation, measurement input | year | 0.2 | 0.9 | |
Minimum | Benefit utilization rates | Risk-neutral valuation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Market risk benefit, measurement input | 0.0500 | 0.0500 | |
Maximum | Discount rate | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, available-for-sale, measurement input | 0.0614 | 0.0728 | |
Maximum | Spread | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans, measurement input | 0.0325 | 0.0300 | |
Maximum | Projected option cost | Deterministic cash flow model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Policyholder account balances, measurement input | 0.0918 | 0.0570 | |
Maximum | Expected term | Black-Scholes model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Share based compensation, measurement input | year | 0.8 | 6.7 | |
Maximum | Benefit utilization rates | Risk-neutral valuation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Market risk benefit, measurement input | 0.2000 | 0.2000 | |
Weighted-Average | Discount rate | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt Securities, available-for-sale, measurement input | 0.0504 | 0.0579 | |
Weighted-Average | Projected option cost | Deterministic cash flow model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Policyholder account balances, measurement input | 0.0369 | 0.0292 | |
Weighted-Average | Benefit utilization rates | Risk-neutral valuation | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Market risk benefit, measurement input | 0.0500 | 0.0500 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
ASSETS | |||
Debt securities, available-for-sale | $ 7,052,554 | $ 7,611,633 | |
Debt securities, trading | 1,000,355 | 1,065,993 | |
Derivatives, index options | 55,278 | 23,669 | |
Equity securities | 21,913 | 22,076 | |
LIABILITIES | |||
Market risk benefits liabilities, net | 220,506 | 215,777 | $ 202,631 |
Carrying Values | |||
ASSETS | |||
Debt securities, available-for-sale | 7,052,554 | 7,611,633 | |
Debt securities, trading | 1,000,355 | 1,065,993 | |
Cash and cash equivalents | 320,740 | 295,270 | |
Mortgage loans | 490,059 | 505,730 | |
Real estate | 27,273 | 27,712 | |
Policy loans | 67,809 | 70,495 | |
Other loans | 44,478 | 31,586 | |
Derivatives, index options | 55,278 | 23,669 | |
Equity securities | 21,913 | 22,076 | |
Short-term investments | 7,821 | 3,937 | |
Life interest in Libbie Shearn Moody Trust | 7,100 | 7,100 | |
Other investments | 4,318 | 4,513 | |
LIABILITIES | |||
Deferred annuity contracts | 5,049,868 | 5,583,038 | |
Immediate annuity and supplemental contracts | 348,106 | 367,128 | |
Market risk benefits liabilities, net | 172,266 | 167,018 | |
Fair Values | |||
ASSETS | |||
Debt securities, available-for-sale | 7,052,554 | 7,611,633 | |
Debt securities, trading | 1,000,355 | 1,065,993 | |
Cash and cash equivalents | 320,740 | 295,270 | |
Mortgage loans | 434,094 | 457,873 | |
Real estate | 47,867 | 47,867 | |
Policy loans | 81,258 | 87,478 | |
Other loans | 43,667 | 31,915 | |
Derivatives, index options | 55,278 | 23,669 | |
Equity securities | 21,913 | 22,076 | |
Short-term investments | 7,821 | 3,937 | |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 | |
Other investments | 4,532 | 26,230 | |
LIABILITIES | |||
Deferred annuity contracts | 3,626,361 | 3,934,517 | |
Immediate annuity and supplemental contracts | 350,394 | 373,346 | |
Market risk benefits liabilities, net | 172,266 | 167,018 | |
Level 1 | |||
ASSETS | |||
Debt securities, available-for-sale | 0 | 0 | |
Debt securities, trading | 0 | 0 | |
Cash and cash equivalents | 320,740 | 295,270 | |
Mortgage loans | 0 | 0 | |
Real estate | 0 | 0 | |
Policy loans | 0 | 0 | |
Other loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Equity securities | 18,475 | 18,407 | |
Short-term investments | 0 | 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 | |
Market risk benefits liabilities, net | 0 | 0 | |
Level 2 | |||
ASSETS | |||
Debt securities, available-for-sale | 6,562,141 | 7,148,837 | |
Debt securities, trading | 872,462 | 942,756 | |
Cash and cash equivalents | 0 | 0 | |
Mortgage loans | 0 | 0 | |
Real estate | 0 | 0 | |
Policy loans | 0 | 0 | |
Other loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Equity securities | 3,438 | 3,669 | |
Short-term investments | 7,821 | 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 | |
Market risk benefits liabilities, net | 0 | 0 | |
Level 3 | |||
ASSETS | |||
Debt securities, available-for-sale | 490,413 | 462,796 | |
Debt securities, trading | 127,893 | 123,237 | |
Cash and cash equivalents | 0 | 0 | |
Mortgage loans | 434,094 | 457,873 | |
Real estate | 47,867 | 47,867 | |
Policy loans | 81,258 | 87,478 | |
Other loans | 43,667 | 31,915 | |
Derivatives, index options | 55,278 | 23,669 | |
Equity securities | 0 | 0 | |
Short-term investments | 0 | 0 | |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 | |
Other investments | 4,532 | 26,230 | |
LIABILITIES | |||
Deferred annuity contracts | 3,626,361 | 3,934,517 | |
Immediate annuity and supplemental contracts | 350,394 | 373,346 | |
Market risk benefits liabilities, net | $ 172,266 | $ 167,018 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) $ in Thousands | Sep. 30, 2023 USD ($) agreement | Dec. 31, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of coinsurance funds withheld reinsurance agreements | agreement | 2 | |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 55,278 | $ 23,669 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 55,278 | 23,669 |
Liability Derivatives | 33,759 | 52,731 |
Derivatives not designated as hedging instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 55,278 | 23,669 |
Derivatives not designated as hedging instruments: | Fixed-index products | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 383,034 | 387,686 |
Derivatives not designated as hedging instruments: | Embedded derivative on reinsurance contract | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (349,275) | $ (334,955) |
Derivatives - Statements of Ear
Derivatives - Statements of Earnings (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 65,231 | $ 81,205 | $ 50,581 | $ 339,418 |
Equity index options | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (19,655) | (12,550) | 5,246 | (89,173) |
Fixed-index products | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 49,355 | 23,145 | 31,015 | 172,092 |
Embedded derivative on reinsurance contract | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ 35,531 | $ 70,610 | $ 14,320 | $ 256,499 |
Intangibles and Goodwill - Gros
Intangibles and Goodwill - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (3,404) | (2,857) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (871) | (731) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (2,533) | (2,126) |
Insurance licenses | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 3,000 | 3,000 |
Accumulated Amortization | $ 0 | $ 0 |
Intangibles and Goodwill - Expe
Intangibles and Goodwill - Expected Amortization (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2023 | $ 182 |
2024 | 730 |
2025 | 730 |
2026 | 232 |
2027 | 187 |
Thereafter | $ 1,135 |
Intangibles and Goodwill - Chan
Intangibles and Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | |||
Gross goodwill as of beginning of year | $ 13,864 | $ 13,864 | |
Goodwill resulting from business acquisition | 0 | 0 | |
Gross goodwill, before impairments | 13,864 | 13,864 | |
Accumulated impairment as of beginning of year | 0 | $ 0 | |
Current year impairments | 0 | 0 | |
Net goodwill as of end of period | $ 13,864 | $ 13,864 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - National Western Life Insurance Group, Inc - S. USA Life Insurance Company, Inc. $ / shares in Units, $ in Billions | Oct. 08, 2023 USD ($) $ / shares |
Effects of Reinsurance [Line Items] | |
Conversion right for each outstanding share (in usd per share) | $ / shares | $ 500 |
Merger agreement | $ | $ 1.9 |