Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 08, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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, $0.01 par value | |
Trading Symbol | NWLI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001635984 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,436,020 | |
Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 200,000 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments: | ||
Debt securities available-for-sale, net of allowance for credit losses ($0 and $0), at fair value (cost: $7,712,847 and $7,714,503) | $ 7,071,553 | $ 7,108,188 |
Debt securities trading, at fair value (cost: $1,142,723 and $1,204,968) | 985,435 | 1,046,856 |
Mortgage loans, net of allowance for credit losses ($3,665 and $3,651), ($19,388 and $19,580 at fair value) | 470,793 | 474,133 |
Policy loans | 64,838 | 66,602 |
Derivatives, index options | 114,669 | 85,158 |
Equity securities, at fair value (cost: $14,229 and $14,268) | 26,399 | 24,098 |
Other long-term investments | 311,418 | 295,471 |
Short-term investments, at fair value | 24,093 | 0 |
Total investments | 9,069,198 | 9,100,506 |
Cash and cash equivalents | 450,499 | 482,758 |
Deferred policy acquisition costs | 619,967 | 628,673 |
Deferred sales inducements | 67,183 | 70,950 |
Value of business acquired | 127,827 | 129,905 |
Cost of reinsurance | 65,042 | 67,937 |
Market risk benefits asset, at fair value | 39,474 | 30,819 |
Accrued investment income | 89,997 | 82,484 |
Federal income tax receivable | 0 | 3,073 |
Amounts recoverable from reinsurer, net of allowance for credit losses ($0 and $0) | 1,471,609 | 1,542,424 |
Other assets | 115,648 | 111,086 |
Total assets | 12,116,444 | 12,250,615 |
Future policyholder obligations: | ||
Liability for policyholder account balances | 6,729,842 | 6,900,491 |
Additional liability for benefits in excess of account balance | 161,319 | 159,437 |
Liability for future policy benefits | 899,544 | 925,787 |
Market risk benefits liability, at fair value | 261,912 | 273,404 |
Other policyholder liabilities | 148,000 | 143,766 |
Funds withheld liability | 1,161,625 | 1,195,413 |
Deferred Federal income tax liability | 11,906 | 14,335 |
Federal income tax payable | 14,675 | 0 |
Other liabilities | 230,646 | 198,258 |
Total liabilities | 9,619,469 | 9,810,891 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income (loss) | (338,930) | (322,573) |
Retained earnings | 2,794,153 | 2,720,545 |
Total stockholders’ equity | 2,496,975 | 2,439,724 |
Total liabilities and stockholders' equity | 12,116,444 | 12,250,615 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt securities available-for-sale, allowance for credit losses | $ 0 | $ 0 |
Debt securities available for sale, at cost | 7,712,847 | 7,714,503 |
Debt securities, trading | 1,142,723 | 1,204,968 |
Mortgage loans - allowance for credit losses | 3,665 | 3,651 |
Mortgage loans, at fair value | 19,388 | 19,580 |
Equity securities - cost | 14,229 | 14,268 |
Amounts recoverable, allowance for credit losses | $ 0 | $ 0 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Premiums and other revenues: | ||
Universal life and annuity contract charges | $ 34,370 | $ 35,357 |
Traditional life and single premium immediate annuity with life contingency ("SPIAWLC") premiums | 22,858 | 21,576 |
Net investment income | 134,361 | 89,909 |
Other revenues | 5,985 | 5,705 |
Net realized investment gains (losses) | (8) | 67 |
Total revenues | 197,566 | 152,614 |
Benefits and expenses: | ||
Life and other policy benefits | 25,519 | 24,190 |
Market risk benefits (gains) losses | (16,417) | 36,960 |
Amortization of deferred transaction costs | 20,439 | 21,274 |
Universal life and annuity contract interest | 41,611 | 30,212 |
Other operating expenses | 33,136 | 24,683 |
Total benefits and expenses | 104,288 | 137,319 |
Earnings before Federal income taxes | 93,278 | 15,295 |
Federal income taxes | 19,670 | 2,991 |
Net earnings | 73,608 | 12,304 |
Class A | ||
Benefits and expenses: | ||
Net earnings | $ 71,526 | $ 11,956 |
Basic earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 20.82 | $ 3.48 |
Diluted earnings per share: | ||
Diluted earnings per share (in dollars per share) | $ 20.82 | $ 3.48 |
Class B | ||
Benefits and expenses: | ||
Net earnings | $ 2,082 | $ 348 |
Basic earnings per share: | ||
Basic earnings per share (in dollars per share) | $ 10.41 | $ 1.74 |
Diluted earnings per share: | ||
Diluted earnings per share (in dollars per share) | $ 10.41 | $ 1.74 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 73,608 | $ 12,304 |
Unrealized gains (losses) on debt securities available-for-sale: | ||
Net unrealized holding gains (losses) arising during period | (27,640) | 125,201 |
Reclassification adjustment for net amounts included in net earnings | 6 | (53) |
Net unrealized gains (losses) on securities | (27,634) | 125,148 |
Effect of discount rate changes on liability for future policy benefits | 17,474 | (21,714) |
Foreign currency translation adjustments | (3,203) | (30) |
Benefit plans: | ||
Amortization of net prior service cost and net gain (loss) | (2,994) | (399) |
Other comprehensive income (loss) | (16,357) | 103,005 |
Comprehensive income | $ 57,251 | $ 115,309 |
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: | Changes in the Liability for future policy benefits related to changing discount rates: | Foreign currency translation adjustments: | Benefit plan liability adjustment: | Retained earnings: |
Total stockholders’ equity, beginning of period at Dec. 31, 2022 | $ 36 | $ 41,716 | $ (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 | $ 125,201 | 125,148 | |||||||
Change in liability for future policy benefits during period, net of tax | (21,714) | (21,714) | |||||||
Change in translation adjustments during period | (30) | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (399) | (399) | |||||||
Net earnings | 12,304 | 12,304 | |||||||
Total stockholders’ equity, end of period at Mar. 31, 2023 | 2,306,231 | 36 | 41,716 | $ (375,214) | (528,283) | 148,987 | 6,420 | (2,338) | 2,639,693 |
Total stockholders’ equity, beginning of period at Dec. 31, 2023 | 2,439,724 | 36 | 41,716 | (478,989) | 145,881 | 6,528 | 4,007 | 2,720,545 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Change in unrealized gains (losses) during period, net of tax | (27,640) | (27,634) | |||||||
Change in liability for future policy benefits during period, net of tax | 17,474 | 17,474 | |||||||
Change in translation adjustments during period | (3,203) | ||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (2,994) | (2,994) | |||||||
Net earnings | 73,608 | 73,608 | |||||||
Total stockholders’ equity, end of period at Mar. 31, 2024 | $ 2,496,975 | $ 36 | $ 41,716 | $ (338,930) | $ (506,623) | $ 163,355 | $ 3,325 | $ 1,013 | $ 2,794,153 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net earnings | $ 73,608 | $ 12,304 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Universal life and annuity contract interest | 41,611 | 30,212 |
Surrender charges and other policy revenues | (6,157) | (4,782) |
Realized (gains) losses on investments | 8 | (67) |
Accretion/amortization of discounts and premiums, investments | (700) | (893) |
Depreciation and amortization | 2,415 | 2,545 |
Increase (decrease) in estimated credit losses on investments | 14 | 128 |
(Increase) decrease in value of debt securities trading | (824) | (24,335) |
(Increase) decrease in value of equity securities | (2,351) | (1,095) |
(Increase) decrease in value of derivative options | (38,474) | (2,933) |
(Increase) decrease in value of alternative investments | (6,450) | 0 |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | 14,551 | 14,755 |
(Increase) decrease in accrued investment income | (7,513) | (6,526) |
(Increase) decrease in reinsurance recoverable | 70,815 | 16,069 |
(Increase) decrease in cost of reinsurance | 2,895 | 3,025 |
(Increase) decrease in other assets | (3,911) | (5,199) |
Increase (decrease) in liabilities for future policy benefits | 2,835 | 16,527 |
Increase (decrease) in market risk benefits liability | (20,147) | 44,339 |
Increase (decrease) in other policyholder liabilities | 4,234 | (20,864) |
Increase (decrease) in Federal income tax liability | 17,748 | 12,809 |
Increase (decrease) in deferred Federal income tax | 1,919 | (9,810) |
Increase (decrease) in funds withheld liability | (33,788) | (20,731) |
Increase (decrease) in other liabilities | (8,205) | (8,427) |
Net cash provided by operating activities | 104,133 | 47,051 |
Proceeds from sales of: | ||
Debt securities available-for-sale | 0 | 2,038 |
Debt securities trading | 31,972 | 7,445 |
Other investments | 50 | 1,134 |
Proceeds from maturities, redemptions, and prepayments of: | ||
Debt securities available-for-sale | 180,445 | 265,496 |
Debt securities trading | 52,697 | 15,239 |
Other investments | 6,365 | 4,735 |
Derivatives, index options | 22,060 | 0 |
Purchases of: | ||
Debt securities available-for-sale | (149,088) | (73,767) |
Debt securities trading | (17,476) | (41,988) |
Equity securities | 0 | (11) |
Derivatives, index options | (13,282) | (12,945) |
Other investments | (15,980) | (13,533) |
Property, equipment, and other productive assets | (323) | (1,035) |
Net change in short-term investments | (24,093) | 0 |
Principal payments on mortgage loans | 3,269 | 3,417 |
Cost of mortgage loans acquired | 0 | (1,800) |
Decrease (increase) in policy loans | 1,598 | 238 |
Other (increases) decreases to funds withheld | 714 | 576 |
Net cash provided by investing activities | 78,928 | 155,239 |
Cash flows from financing activities: | ||
Deposits to account balances for universal life and annuity contracts | 25,181 | 31,151 |
Return of account balances on universal life and annuity contracts | (236,361) | (226,752) |
Principal payments under finance lease obligation | (86) | (85) |
Net cash provided by (used in) financing activities | (211,266) | (195,686) |
Effect of foreign exchange | (4,054) | (38) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (32,259) | 6,566 |
Cash, cash equivalents, and restricted cash at beginning of period | 482,758 | 295,270 |
Cash, cash equivalents and restricted cash at end of period | 450,499 | 301,836 |
Cash paid during the period for: | ||
Interest | 19 | 18 |
Income taxes | 4 | 5 |
Noncash operating activities: | ||
Net deferral and amortization of sales inducements | $ (3,767) | $ (3,299) |
Consolidation and Basis of Pres
Consolidation and Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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. 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 March 31, 2024, and for the three months ended March 31, 2024 and March 31, 2023. Certain reclasses of prior year balances have been made for comparison. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year. It is recommended that these Condensed Consolidated Financial Statements 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, 2023 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 . The Condensed Consolidated Balance Sheet at December 31, 2023 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, 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. The Company maintains two funds withheld coinsurance agreements which incorporate accounting policies related to trading debt securities and embedded derivatives 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 reinsurers. 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 the coinsurance funds withheld agreements, while the assets are withheld, the associated interest and credit risk of those assets are transferred to the reinsurers creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability 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. 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 months ended March 31, 2024 and March 31, 2023. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2024 2023 (In thousands) Other net investment (losses) gains $ (8) 67 Earnings before Federal income taxes (8) 67 Federal income taxes (2) 14 Net earnings $ (6) 53 |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect this guidance to have a material impact on the Consolidated Financial Statements and related disclosures upon adoption. Accounting pronouncements adopted Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) In August 2018, the FASB issued ASU 2018-12. This update pertained to long-duration contracts and improvement in the timeliness of recognizing changes in the liability for future policy benefits, simplification of accounting for certain market-based options, simplification of the amortization of deferred policy acquisition costs, and improvement in the effectiveness of required disclosures. Amendments included 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 retrospective method for market risk benefits and the modified retrospective method for 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. 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 | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Prior 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 Robert L. Moody, Sr. Revocable Trust (the "Moody Revocable Trust"), 99.0% of the 200,000 aggregate outstanding shares of the Company's Class B Common Stock. 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. The shares of Class B Common Stock owned by the Moody Revocable Trust represent 5.45% of the total number of outstanding shares of the Company. Holders of the Company's Class A Common Stock elect one-third of the Board of Directors of the Company (rounded up to the nearest whole number if not evenly divisible by three), and holders of the Class B Common Stock elect the remainder. Any cash or in-kind dividends paid on each share of Class B Common Stock are 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. The approval of the holders of two-thirds of the outstanding Class A Common Stock is required to modify these dividend and liquidation provisions. Except as described above in this paragraph, on all matters submitted to the Company's stockholders other than the election or removal of directors, the holders of Class A Common Stock and Class B Common Stock vote together as a single class, with each share entitled to one vote. 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 2024 is $70.5 million. National Western did not declare or pay cash dividends to NWLGI during the three months ended March 31, 2024 and 2023. 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 Ozark National 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 2024 without prior approval is $24.3 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 three months ended March 31, 2024 and 2023. 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, at December 31, 2023 the maximum dividend payment amount was $5.6 million. No dividends were declared or paid in the three months ended March 31, 2024. During the three months ended March 31, 2023, NIS declared and paid a $12.0 million dividend to NWLGI as its sole stock owner. 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, anticipated to be sometime in the second quarter of 2024, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share, by definition, reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. U.S. GAAP requires a two-class presentation for the Company's two classes of common stock (refer to Note (3) Stockholders' Equity ). The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Three Months Ended March 31, 2024 2023 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 73,608 12,304 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 73,608 12,304 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 71,526 2,082 11,956 348 Net earnings $ 71,526 2,082 11,956 348 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 $ 20.82 10.41 3.48 1.74 Diluted earnings per share $ 20.82 10.41 3.48 1.74 |
Deferred Transaction Costs
Deferred Transaction Costs | 3 Months Ended |
Mar. 31, 2024 | |
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"). Amortization and experience adjustments for DPAC, VOBA and COR are reported as Amortization of deferred transaction costs in the Condensed Consolidated Statements of Earnings. Amortization and experience adjustments on DSI are reported as gross reserve changes in Universal life and annuity contract interest in the Condensed Consolidated Statements of Earnings. 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"). DPAC and DSI 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 DPAC 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. 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. VOBA is amortized on the same basis used for DPAC and DSI balances. The 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 ceding commission paid to the reinsurer. The COR balance is amortized commensurate with the runoff of the ceded block of funds withheld business and the amortization expense 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. Three Months Ended March 31, 2024 Deferred Policy Acquisition Costs Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 2,899 180,234 9,874 138,031 279,637 17,998 Capitalization additions 3 3,953 — 90 1,788 926 Amortization (65) (3,326) (267) (3,468) (8,103) (237) Experience adjustment — — — — — — Balance, end of period $ 2,837 180,861 9,607 134,653 273,322 18,687 Three Months Ended March 31, 2023 Deferred Policy Acquisition Costs 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 3 3,452 — 158 2,077 1,103 Amortization (72) (3,094) (292) (3,792) (8,582) (204) Experience adjustment — — — — — — Balance, end of period $ 3,090 176,392 10,859 148,653 299,984 15,661 The following table summarizes DPAC balances by product line as of the end of the following periods. March 31, Deferred Policy Acquisition Costs 2024 2023 (In thousands) Domestic traditional life $ 2,837 3,090 Domestic universal life 180,861 176,392 International traditional life 9,607 10,859 International universal life 134,653 148,653 Annuities, excl. SPIAs with life contingencies 273,322 299,984 ONL & Affiliates 18,687 15,661 Total $ 619,967 654,639 Deferred Sales Inducements - A summary of information related to DSI is provided in the following tables. Three Months Ended March 31, Deferred Sales Inducements 2024 2023 (In thousands) Balance, beginning of year $ 70,950 85,303 Capitalizations (1,930) (939) Amortization expense (1,837) (2,360) In-force ceded — — Experience adjustment — — Balance, end of period $ 67,183 82,004 Value of Business Acquired - A summary of information related to VOBA is provided in the following table. March 31, Value of Business Acquired 2024 2023 (In thousands) Balance, beginning of period $ 129,905 138,495 Amortization (2,078) (2,213) Experience adjustment — — Balance as of end of period $ 127,827 136,282 Estimated future amortization of VOBA, net of interest, is as follows as of March 31, 2024: (In thousands) Remainder of 2024 $ 6,077 2025 7,743 2026 7,331 2027 6,945 2028 6,578 Cost of Reinsurance - A summary of information related to COR is provided in the following table. Three Months Ended March 31, Cost of Reinsurance 2024 2023 SPIAs WLC Annuities excl. SPIAs WLC SPIAs WLC Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 11,156 56,781 11,897 66,431 Additions — — — — Amortization (162) (2,733) (446) (2,579) Experience Adjustment — — — — Balance as of end of period $ 10,994 54,048 11,451 63,852 The following table summarizes the COR balance by product line as of the end of the following periods. March 31, Cost of Reinsurance 2024 2023 (In thousands) SPIAs with life contingencies $ 10,994 11,451 Annuities, excl. SPIAs with life contingencies 54,048 63,852 Total $ 65,042 75,303 |
Policyholder Obligations
Policyholder Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
POLICYHOLDER OBLIGATIONS | POLICYHOLDER OBLIGATIONS For universal life and annuity contracts, the liability for future policyholder obligations 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 policy acquisition costs. The Company updates the net premium ratio for actual historical experience each quarter. Future cash flow assumptions are reviewed each quarter and are updated at least annually. 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. Three Months Ended March 31, 2024 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,454,356 490,603 4,955,532 Premiums received 29,416 8,057 24,296 Policy charges (17,054) (16,687) (7,294) Surrenders and withdrawals (12,933) (14,050) (156,174) Benefit payments (8,279) (504) (38,411) Interest credited 19,438 5,152 14,146 Change in embedded derivative 14,178 2,435 (9,122) Change in unearned revenue reserve 3,092 (182) — Other (2,424) 310 (8,055) Balance, end of period 1,479,790 475,134 4,774,918 Less reinsurance recoverable — — (1,065,753) Ending balance, net of reinsurance $ 1,479,790 475,134 3,709,165 Weighted-average crediting rate 6.34 % 4.37 % 1.11 % Net amount at risk $ 1,557 5,973 1,241,261 Cash surrender value $ 1,239,802 452,178 4,558,423 Three Months Ended March 31, 2023 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,420,569 563,998 5,677,218 Issuances — — — Premiums received 27,587 10,196 34,263 Policy charges (16,441) (19,656) (7,500) Surrenders and withdrawals (14,361) (11,000) (129,363) Benefit payments (8,189) (846) (53,150) Interest credited 3,267 2,249 13,857 Change in embedded derivative 13,219 1,321 2,414 Change in unearned revenue reserve 411 (46) — Other 313 125 (6,799) Balance, end of period 1,426,375 546,341 5,530,940 Less reinsurance recoverable — — (1,211,421) Ending balance, net of reinsurance $ 1,426,375 546,341 4,319,519 Weighted-average crediting rate 0.98 % 1.53 % 0.93 % Net amount at risk $ 1,621 6,910 1,162,927 Cash surrender value $ 1,211,837 522,501 5,201,886 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. March 31, Liability for Policyholder Account Balances 2024 2023 (In thousands) Domestic universal life $ 1,479,790 1,426,375 International universal life 475,134 546,341 Annuities excl. SPIAs with life contingencies 4,774,918 5,530,940 Total $ 6,729,842 7,503,656 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. March 31, 2024 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% $ 1,629,149 2,719 14,120 100,508 1,746,496 2.00% - 2.99% 502,653 6,482 85,106 47,036 641,277 3.00% - 3.99% 449,173 35,915 11,515 28 496,631 4.00% and greater 375,935 — — 39 375,974 Total $ 2,956,910 45,116 110,741 147,611 3,260,378 March 31, 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% $ 1,977,043 2,291 38,739 140,367 2,158,440 2.00% - 2.99% 478,429 8,092 86,871 24,576 597,968 3.00% - 3.99% 453,414 40,857 2,780 27 497,078 4.00% and greater 398,573 — — 36 398,609 Total $ 3,307,459 51,240 128,390 165,006 3,652,095 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. Three Months Ended March 31, 2024 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 72,241 49,886 37,310 Beginning balance before shadow reserve adjustments 72,241 49,886 37,310 Effect of changes in cash flow assumptions — — — Effect of actual variances from expected experience 1,158 (1,546) (98) Adjusted beginning of period balance 73,399 48,340 37,212 Issuances — — — Interest accrual 1,106 618 342 Assessments collected 5,390 2,209 92 Benefit payments (5,502) (1,259) (369) Derecognition (lapses and withdrawals) — — — Other (2) (270) 13 Ending balance before shadow reserve adjustments 74,391 49,638 37,290 Effect of shadow reserve adjustments — — — Balance, end of period 74,391 49,638 37,290 Less reinsurance recoverable, end of period — — (37,273) Net additional liability, after reinsurance recoverable $ 74,391 49,638 17 Three Months Ended March 31, 2023 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits 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 — — — Effect of actual variances from expected experience 4,693 (771) 497 Adjusted beginning of period balance 68,497 45,631 38,999 Issuances — — — Interest accrual 184 93 374 Assessments collected 5,696 2,560 3 Benefit payments (9,001) (1,360) (552) Derecognition (lapses and withdrawals) — — — Other (1) (423) (12) Ending balance before shadow reserve adjustments 65,375 46,501 38,812 Effect of shadow reserve adjustments — — — Balance, end of period 65,375 46,501 38,812 Less reinsurance recoverable, end of period — — (38,812) Net additional liability, after reinsurance recoverable $ 65,375 46,501 — 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. March 31, 2024 2023 (In thousands) Domestic universal life $ 74,391 65,375 International universal life 49,638 46,501 Annuities 37,290 38,812 Total $ 161,319 150,688 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic universal life $ 15,180 1,106 16,790 184 International universal life 8,811 618 10,351 93 Annuities 6 342 255 374 Total $ 23,997 2,066 27,396 651 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. Three Months Ended March 31, 2024 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ (3,608) 35,323 — 409,519 Beginning balance at original discount rate (2,878) 36,038 — 485,238 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (40) 40 — (1,693) Adjusted beginning of period balance (2,918) 36,078 — 483,545 Issuances — — — 2,181 Interest accrual (65) 384 — 3,949 Net premium collected 198 (847) — (9,574) Ending balance at original discount rate (2,785) 35,615 — 480,101 Effect of changes in discount rate assumptions (689) (1,669) — (82,850) Balance, end of period $ (3,474) 33,946 — 397,251 Present value of expected future policy benefits Balance, beginning of period $ 52,358 100,948 193,180 1,020,535 Beginning balance at original discount rate 45,030 99,868 209,910 1,291,686 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (9) (77) 969 (1,648) Adjusted beginning of period balance 45,021 99,791 210,879 1,290,038 Issuances — — 2,982 2,208 Interest accrual 653 1,356 1,775 10,144 Benefit payments (1,370) (1,737) (5,265) (14,593) Derecognition (lapses and withdrawals) — — (1,656) — Other 126 449 (269) — Ending balance at original discount rate 44,430 99,859 208,446 1,287,797 Effect of changes in discount rate assumptions 5,774 (1,370) (20,469) (297,200) Balance, end of period 50,204 98,489 187,977 990,597 Net liability for future policy benefits 53,678 64,543 187,977 593,346 Less reinsurance recoverable — (149) (155,041) (25,799) Net liability for future policy benefits, after reinsurance $ 53,678 64,394 32,936 567,547 Three Months Ended March 31, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,745 Beginning balance at original discount rate 660 35,907 — 494,962 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience 8 (915) — (677) Adjusted beginning of period 668 34,992 — 494,285 Issuances — — — 2,930 Interest accrual (3) 368 — 3,997 Net premium collected (59) (880) — (9,788) Ending balance at original discount rate 606 34,480 — 491,424 Effect of changes in discount rate assumptions (415) (770) — (80,359) Balance, end of period $ 191 33,710 — 411,065 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,168 191,817 975,999 Beginning balance at original discount rate 62,865 100,929 215,542 1,291,914 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (359) (2,793) 1,000 (463) Adjusted beginning of year balance 62,506 98,136 216,542 1,291,451 Issuances — — 1,775 2,846 Interest accrual 962 1,367 1,747 10,092 Benefit payments (1,016) (1,485) (5,707) (15,344) Derecognition (lapses and withdrawals) — — (1,814) — Other 85 747 96 (38) Ending balance at original discount rate 62,537 98,765 212,639 1,289,007 Effect of changes in discount rate assumptions 9,133 1,190 (18,123) (280,035) Balance, end of period 71,670 99,955 194,516 1,008,972 Net liability for future policy benefits 71,479 66,245 194,516 597,907 Less reinsurance recoverable (13,160) (553) (164,270) (26,436) Net liability for future policy benefits, after reinsurance $ 58,319 65,692 30,246 571,471 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. March 31, 2024 2023 (In thousands) Domestic traditional life $ 53,678 71,479 International traditional life 64,543 66,245 SPIAs with life contingencies 187,977 194,516 ONL & Affiliates 593,346 597,907 Total $ 899,544 930,147 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic traditional life $ 439 718 749 965 International traditional life 2,376 972 2,647 999 SPIAs with life contingencies 1,915 1,775 81 1,747 ONL & Affiliates 18,813 6,195 19,237 6,095 Total $ 23,543 9,660 22,714 9,806 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. March 31, 2024 2023 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 26,422 79,536 32,336 105,418 International traditional life 157,291 216,623 158,329 216,235 SPIAs with life contingencies — 277,925 — 282,340 ONL & Affiliates 1,389,010 2,264,018 1,419,206 2,263,534 Total $ 1,572,723 2,838,102 1,609,871 2,867,527 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. 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.60% 1.25% 1.86% 2.05% Domestic universal life 1.83% 2.11% 2.12% 1.93% International traditional life 0.30% 0.43% 0.09% 0.39% International universal life 0.27% 0.29% 0.29% 0.26% SPIAs with life contingencies 4.41% 3.24% 3.27% 3.08% Annuities excl. SPIAs with life contingencies 2.72% 2.67% 3.55% 2.68% ONL & Affiliates 1.08% 0.89% 0.78% 0.74% 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 6.43% 6.67% 5.10% 6.18% Domestic universal life 4.40% 3.49% 4.71% 3.37% International traditional life 9.48% 5.79% 9.26% 7.74% International universal life 13.06% 6.86% 11.00% 7.06% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 7.65% 4.55% 4.60% 4.15% ONL & Affiliates 4.63% 4.43% 3.96% 4.69% 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. March 31, 2024 2023 Domestic traditional life 8.0 8.0 Domestic universal life 8.1 8.1 International traditional life 8.0 8.0 International universal life 8.1 8.1 SPIAs with life contingencies 8.0 8.0 Annuities excl. SPIAs with life contingencies 6.6 6.6 ONL & Affiliates 22.0 22.0 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. March 31, 2024 March 31, 2023 Interest Accretion Rate Current Discount Rate Interest Accretion Rate Current Discount Rate Domestic traditional life 6.75% 5.00% 6.80% 4.65% Domestic universal life 6.34% 6.34% 0.98% 0.98% International traditional life 5.13% 5.00% 5.13% 4.65% International universal life 4.37% 4.37% 1.53% 1.53% SPIAs with life contingencies 3.45% 5.00% 3.31% 4.65% Annuities excl. SPIAs with life contingencies 1.11% 1.11% 0.93% 0.93% ONL & Affiliates 3.25% 5.40% 3.24% 5.20% 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. Market risk benefits are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on annuity products that provide minimum guarantees to policyholders, such as guaranteed minimum withdrawal benefits and guaranteed annuitization benefits. Market risk benefits are measured at fair value using a risk-neutral valuation model based on current net amounts at risk, benefit utilization rates, market data, Company experience, and other factors. Changes in fair value are recognized in net income each period, with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in Other comprehensive income. The following tables present the balances of and changes in market risk benefits associated with guaranteed minimum withdrawal benefits and guaranteed annuitization benefits. The Company does not have guaranteed minimum death benefits in its policies. Three Months Ended March 31, 2024 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits (In thousands) Balance, beginning of period $ 174,375 68,210 Balance, beginning of period, before effect of changes in instrument-specific credit risk 174,375 68,210 Issuances 97 — Interest accrual — — Attributed fees collected 1,058 — Benefit payments — — Effect of changes in interest rates (18,051) (2,311) Actual policyholder behavior different from expected behavior (940) — 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 156,539 65,899 Effect of changes in the instrument-specific credit risk — — Balance, end of period 156,539 65,899 Less reinsurance recoverable, end of period (6,188) (66,250) Balance, end of period, net of reinsurance $ 150,351 (351) Net amount at risk $ 1,116,647 124,613 Weighted-average attained age of contract holders 70.0 68.2 Three Months Ended March 31, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization 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 22 — Interest accrual — — Attributed fees collected 6,771 — Benefit payments — — Effect of changes in interest rates 36,147 2,078 Actual policyholder behavior different from expected behavior (679) — 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 139,813 71,544 Effect of changes in the instrument-specific credit risk — — Balance, end of period 139,813 71,544 Less reinsurance recoverable, end of period (4,167) (71,946) Balance, end of period, net of reinsurance $ 135,646 (402) Net amount at risk $ 1,035,476 127,450 Weighted-average attained age of contract holders 69.2 67.4 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. March 31, 2024 March 31, 2023 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 39,474 196,013 156,539 41,759 181,572 139,813 Guaranteed annuitization benefits — 65,899 65,899 — 71,544 71,544 Balance, end of period $ 39,474 261,912 222,438 41,759 253,116 211,357 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 | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
MARKET RISK BENEFITS | POLICYHOLDER OBLIGATIONS For universal life and annuity contracts, the liability for future policyholder obligations 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 policy acquisition costs. The Company updates the net premium ratio for actual historical experience each quarter. Future cash flow assumptions are reviewed each quarter and are updated at least annually. 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. Three Months Ended March 31, 2024 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,454,356 490,603 4,955,532 Premiums received 29,416 8,057 24,296 Policy charges (17,054) (16,687) (7,294) Surrenders and withdrawals (12,933) (14,050) (156,174) Benefit payments (8,279) (504) (38,411) Interest credited 19,438 5,152 14,146 Change in embedded derivative 14,178 2,435 (9,122) Change in unearned revenue reserve 3,092 (182) — Other (2,424) 310 (8,055) Balance, end of period 1,479,790 475,134 4,774,918 Less reinsurance recoverable — — (1,065,753) Ending balance, net of reinsurance $ 1,479,790 475,134 3,709,165 Weighted-average crediting rate 6.34 % 4.37 % 1.11 % Net amount at risk $ 1,557 5,973 1,241,261 Cash surrender value $ 1,239,802 452,178 4,558,423 Three Months Ended March 31, 2023 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,420,569 563,998 5,677,218 Issuances — — — Premiums received 27,587 10,196 34,263 Policy charges (16,441) (19,656) (7,500) Surrenders and withdrawals (14,361) (11,000) (129,363) Benefit payments (8,189) (846) (53,150) Interest credited 3,267 2,249 13,857 Change in embedded derivative 13,219 1,321 2,414 Change in unearned revenue reserve 411 (46) — Other 313 125 (6,799) Balance, end of period 1,426,375 546,341 5,530,940 Less reinsurance recoverable — — (1,211,421) Ending balance, net of reinsurance $ 1,426,375 546,341 4,319,519 Weighted-average crediting rate 0.98 % 1.53 % 0.93 % Net amount at risk $ 1,621 6,910 1,162,927 Cash surrender value $ 1,211,837 522,501 5,201,886 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. March 31, Liability for Policyholder Account Balances 2024 2023 (In thousands) Domestic universal life $ 1,479,790 1,426,375 International universal life 475,134 546,341 Annuities excl. SPIAs with life contingencies 4,774,918 5,530,940 Total $ 6,729,842 7,503,656 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. March 31, 2024 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% $ 1,629,149 2,719 14,120 100,508 1,746,496 2.00% - 2.99% 502,653 6,482 85,106 47,036 641,277 3.00% - 3.99% 449,173 35,915 11,515 28 496,631 4.00% and greater 375,935 — — 39 375,974 Total $ 2,956,910 45,116 110,741 147,611 3,260,378 March 31, 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% $ 1,977,043 2,291 38,739 140,367 2,158,440 2.00% - 2.99% 478,429 8,092 86,871 24,576 597,968 3.00% - 3.99% 453,414 40,857 2,780 27 497,078 4.00% and greater 398,573 — — 36 398,609 Total $ 3,307,459 51,240 128,390 165,006 3,652,095 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. Three Months Ended March 31, 2024 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 72,241 49,886 37,310 Beginning balance before shadow reserve adjustments 72,241 49,886 37,310 Effect of changes in cash flow assumptions — — — Effect of actual variances from expected experience 1,158 (1,546) (98) Adjusted beginning of period balance 73,399 48,340 37,212 Issuances — — — Interest accrual 1,106 618 342 Assessments collected 5,390 2,209 92 Benefit payments (5,502) (1,259) (369) Derecognition (lapses and withdrawals) — — — Other (2) (270) 13 Ending balance before shadow reserve adjustments 74,391 49,638 37,290 Effect of shadow reserve adjustments — — — Balance, end of period 74,391 49,638 37,290 Less reinsurance recoverable, end of period — — (37,273) Net additional liability, after reinsurance recoverable $ 74,391 49,638 17 Three Months Ended March 31, 2023 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits 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 — — — Effect of actual variances from expected experience 4,693 (771) 497 Adjusted beginning of period balance 68,497 45,631 38,999 Issuances — — — Interest accrual 184 93 374 Assessments collected 5,696 2,560 3 Benefit payments (9,001) (1,360) (552) Derecognition (lapses and withdrawals) — — — Other (1) (423) (12) Ending balance before shadow reserve adjustments 65,375 46,501 38,812 Effect of shadow reserve adjustments — — — Balance, end of period 65,375 46,501 38,812 Less reinsurance recoverable, end of period — — (38,812) Net additional liability, after reinsurance recoverable $ 65,375 46,501 — 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. March 31, 2024 2023 (In thousands) Domestic universal life $ 74,391 65,375 International universal life 49,638 46,501 Annuities 37,290 38,812 Total $ 161,319 150,688 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic universal life $ 15,180 1,106 16,790 184 International universal life 8,811 618 10,351 93 Annuities 6 342 255 374 Total $ 23,997 2,066 27,396 651 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. Three Months Ended March 31, 2024 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ (3,608) 35,323 — 409,519 Beginning balance at original discount rate (2,878) 36,038 — 485,238 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (40) 40 — (1,693) Adjusted beginning of period balance (2,918) 36,078 — 483,545 Issuances — — — 2,181 Interest accrual (65) 384 — 3,949 Net premium collected 198 (847) — (9,574) Ending balance at original discount rate (2,785) 35,615 — 480,101 Effect of changes in discount rate assumptions (689) (1,669) — (82,850) Balance, end of period $ (3,474) 33,946 — 397,251 Present value of expected future policy benefits Balance, beginning of period $ 52,358 100,948 193,180 1,020,535 Beginning balance at original discount rate 45,030 99,868 209,910 1,291,686 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (9) (77) 969 (1,648) Adjusted beginning of period balance 45,021 99,791 210,879 1,290,038 Issuances — — 2,982 2,208 Interest accrual 653 1,356 1,775 10,144 Benefit payments (1,370) (1,737) (5,265) (14,593) Derecognition (lapses and withdrawals) — — (1,656) — Other 126 449 (269) — Ending balance at original discount rate 44,430 99,859 208,446 1,287,797 Effect of changes in discount rate assumptions 5,774 (1,370) (20,469) (297,200) Balance, end of period 50,204 98,489 187,977 990,597 Net liability for future policy benefits 53,678 64,543 187,977 593,346 Less reinsurance recoverable — (149) (155,041) (25,799) Net liability for future policy benefits, after reinsurance $ 53,678 64,394 32,936 567,547 Three Months Ended March 31, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,745 Beginning balance at original discount rate 660 35,907 — 494,962 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience 8 (915) — (677) Adjusted beginning of period 668 34,992 — 494,285 Issuances — — — 2,930 Interest accrual (3) 368 — 3,997 Net premium collected (59) (880) — (9,788) Ending balance at original discount rate 606 34,480 — 491,424 Effect of changes in discount rate assumptions (415) (770) — (80,359) Balance, end of period $ 191 33,710 — 411,065 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,168 191,817 975,999 Beginning balance at original discount rate 62,865 100,929 215,542 1,291,914 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (359) (2,793) 1,000 (463) Adjusted beginning of year balance 62,506 98,136 216,542 1,291,451 Issuances — — 1,775 2,846 Interest accrual 962 1,367 1,747 10,092 Benefit payments (1,016) (1,485) (5,707) (15,344) Derecognition (lapses and withdrawals) — — (1,814) — Other 85 747 96 (38) Ending balance at original discount rate 62,537 98,765 212,639 1,289,007 Effect of changes in discount rate assumptions 9,133 1,190 (18,123) (280,035) Balance, end of period 71,670 99,955 194,516 1,008,972 Net liability for future policy benefits 71,479 66,245 194,516 597,907 Less reinsurance recoverable (13,160) (553) (164,270) (26,436) Net liability for future policy benefits, after reinsurance $ 58,319 65,692 30,246 571,471 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. March 31, 2024 2023 (In thousands) Domestic traditional life $ 53,678 71,479 International traditional life 64,543 66,245 SPIAs with life contingencies 187,977 194,516 ONL & Affiliates 593,346 597,907 Total $ 899,544 930,147 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic traditional life $ 439 718 749 965 International traditional life 2,376 972 2,647 999 SPIAs with life contingencies 1,915 1,775 81 1,747 ONL & Affiliates 18,813 6,195 19,237 6,095 Total $ 23,543 9,660 22,714 9,806 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. March 31, 2024 2023 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 26,422 79,536 32,336 105,418 International traditional life 157,291 216,623 158,329 216,235 SPIAs with life contingencies — 277,925 — 282,340 ONL & Affiliates 1,389,010 2,264,018 1,419,206 2,263,534 Total $ 1,572,723 2,838,102 1,609,871 2,867,527 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. 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.60% 1.25% 1.86% 2.05% Domestic universal life 1.83% 2.11% 2.12% 1.93% International traditional life 0.30% 0.43% 0.09% 0.39% International universal life 0.27% 0.29% 0.29% 0.26% SPIAs with life contingencies 4.41% 3.24% 3.27% 3.08% Annuities excl. SPIAs with life contingencies 2.72% 2.67% 3.55% 2.68% ONL & Affiliates 1.08% 0.89% 0.78% 0.74% 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 6.43% 6.67% 5.10% 6.18% Domestic universal life 4.40% 3.49% 4.71% 3.37% International traditional life 9.48% 5.79% 9.26% 7.74% International universal life 13.06% 6.86% 11.00% 7.06% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 7.65% 4.55% 4.60% 4.15% ONL & Affiliates 4.63% 4.43% 3.96% 4.69% 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. March 31, 2024 2023 Domestic traditional life 8.0 8.0 Domestic universal life 8.1 8.1 International traditional life 8.0 8.0 International universal life 8.1 8.1 SPIAs with life contingencies 8.0 8.0 Annuities excl. SPIAs with life contingencies 6.6 6.6 ONL & Affiliates 22.0 22.0 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. March 31, 2024 March 31, 2023 Interest Accretion Rate Current Discount Rate Interest Accretion Rate Current Discount Rate Domestic traditional life 6.75% 5.00% 6.80% 4.65% Domestic universal life 6.34% 6.34% 0.98% 0.98% International traditional life 5.13% 5.00% 5.13% 4.65% International universal life 4.37% 4.37% 1.53% 1.53% SPIAs with life contingencies 3.45% 5.00% 3.31% 4.65% Annuities excl. SPIAs with life contingencies 1.11% 1.11% 0.93% 0.93% ONL & Affiliates 3.25% 5.40% 3.24% 5.20% 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. Market risk benefits are contracts or contract features that both provide protection to the contract holder from other-than-nominal capital market risk and expose the Company to other-than-nominal capital market risk. Market risk benefits include certain contract features on annuity products that provide minimum guarantees to policyholders, such as guaranteed minimum withdrawal benefits and guaranteed annuitization benefits. Market risk benefits are measured at fair value using a risk-neutral valuation model based on current net amounts at risk, benefit utilization rates, market data, Company experience, and other factors. Changes in fair value are recognized in net income each period, with the exception of the portion of the change in fair value due to a change in the instrument-specific credit risk, which is recognized in Other comprehensive income. The following tables present the balances of and changes in market risk benefits associated with guaranteed minimum withdrawal benefits and guaranteed annuitization benefits. The Company does not have guaranteed minimum death benefits in its policies. Three Months Ended March 31, 2024 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits (In thousands) Balance, beginning of period $ 174,375 68,210 Balance, beginning of period, before effect of changes in instrument-specific credit risk 174,375 68,210 Issuances 97 — Interest accrual — — Attributed fees collected 1,058 — Benefit payments — — Effect of changes in interest rates (18,051) (2,311) Actual policyholder behavior different from expected behavior (940) — 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 156,539 65,899 Effect of changes in the instrument-specific credit risk — — Balance, end of period 156,539 65,899 Less reinsurance recoverable, end of period (6,188) (66,250) Balance, end of period, net of reinsurance $ 150,351 (351) Net amount at risk $ 1,116,647 124,613 Weighted-average attained age of contract holders 70.0 68.2 Three Months Ended March 31, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization 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 22 — Interest accrual — — Attributed fees collected 6,771 — Benefit payments — — Effect of changes in interest rates 36,147 2,078 Actual policyholder behavior different from expected behavior (679) — 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 139,813 71,544 Effect of changes in the instrument-specific credit risk — — Balance, end of period 139,813 71,544 Less reinsurance recoverable, end of period (4,167) (71,946) Balance, end of period, net of reinsurance $ 135,646 (402) Net amount at risk $ 1,035,476 127,450 Weighted-average attained age of contract holders 69.2 67.4 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. March 31, 2024 March 31, 2023 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 39,474 196,013 156,539 41,759 181,572 139,813 Guaranteed annuitization benefits — 65,899 65,899 — 71,544 71,544 Balance, end of period $ 39,474 261,912 222,438 41,759 253,116 211,357 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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, Components of Net Periodic Benefit Cost (Credit) 2024 2023 (In thousands) Service cost $ 29 27 Interest cost 180 199 Expected return on plan assets (364) (310) Amortization of net loss — 70 Net periodic benefit cost (credit) $ (155) (14) The service cost shown above for each period represents plan expenses expected to be paid out of plan assets. Under 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 2024 plan year is $0.0 million. There were no planned contributions remaining for the 2023 plan year as of March 31, 2024. There were no planned contributions remaining for the 2024 plan year as of March 31, 2024. As of March 31, 2024, the Company has made no contributions to the plan for the 2023 plan year and no contributions to the plan for the 2024 plan year. The components of net periodic benefit cost including service cost are reported in “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 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 or any non-qualified defined benefit plan 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 March 31, Components of Net Periodic Benefit Cost 2024 2023 (In thousands) Service cost $ 388 204 Interest cost 568 408 Amortization of prior service cost 15 15 Amortization of net loss 614 — Net periodic benefit cost $ 1,585 627 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 $0.0 million to these plans in 2024 and as of March 31, 2024, had made no contributions to the plans. The components of net periodic benefit cost including service cost are reported in “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 March 31, Components of Net Periodic Benefit Cost 2024 2023 (In thousands) Interest cost $ 8 61 Amortization of net loss (279) — Net periodic benefit cost (credit) $ (271) 61 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 $0.1 million to the plans in 2024. As of March 31, 2024, the Company had contributed $0.0 million to the plans. Ozark National and NIS do not offer postemployment benefits. The components of net periodic benefit cost including service cost are reported in “Other operating expenses” in the Condensed Consolidated Statements of Earnings. |
Segment and Other Operating Inf
Segment and Other Operating Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT AND OTHER OPERATING INFORMATION | SEGMENT AND OTHER OPERATING INFORMATION The 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 March 31, 2024 and December 31, 2023 for the Condensed Consolidated Balance Sheet items and for the three months ended March 31, 2024 and March 31, 2023 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: March 31, 2024 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 183,697 144,261 405,548 146,513 — 880,019 Market risk benefits asset — — 39,474 — — 39,474 Total segment assets 1,953,470 817,975 7,359,228 1,017,758 337,394 11,485,825 Future policyholder obligations 1,607,103 590,071 5,000,185 593,346 — 7,790,705 Market risk benefits liability — — 261,912 — — 261,912 Other policyholder liabilities 30,378 8,077 94,982 14,563 — 148,000 Funds withheld liability — — 1,161,625 — — 1,161,625 December 31, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 183,132 147,906 418,525 147,902 — 897,465 Market risk benefits asset — — 30,819 — — 30,819 Total segment assets 1,918,435 828,186 7,501,928 1,012,445 334,722 11,595,716 Future policyholder obligations 1,581,808 606,870 5,186,021 611,016 — 7,985,715 Market risk benefits liability — — 273,404 — — 273,404 Other policyholder liabilities 24,406 13,652 91,456 14,252 — 143,766 Funds withheld liability — — 1,195,413 — — 1,195,413 Condensed Consolidated Statements of Earnings: Three Months Ended March 31, 2024 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,223 19,336 6,043 18,626 — 57,228 Net investment income 35,362 11,757 71,235 8,802 7,205 134,361 Other revenues 5 27 1,734 3,110 1,109 5,985 Total revenues 48,590 31,120 79,012 30,538 8,314 197,574 Life and other policy benefits 2,635 2,472 4,753 15,659 — 25,519 Policy benefit remeasurement (gain)/loss — — — — — — Market risk benefits expense — — (16,417) — — (16,417) Amortization of deferred transaction costs 3,391 3,735 10,998 2,315 — 20,439 Universal life and annuity contract interest 31,649 9,761 201 — — 41,611 Other operating expenses 5,964 6,090 14,840 4,804 1,438 33,136 Federal income taxes 1,047 1,917 13,672 1,582 1,454 19,672 Total expenses 44,686 23,975 28,047 24,360 2,892 123,960 Segment earnings $ 3,904 7,145 50,965 6,178 5,422 73,614 Three Months Ended March 31, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,476 20,065 4,240 19,152 — 56,933 Net investment income 17,979 5,398 53,081 7,918 5,533 89,909 Other revenues — 2 2,016 2,689 998 5,705 Total revenues 31,455 25,465 59,337 29,759 6,531 152,547 Life and other policy benefits 2,509 1,878 5,000 14,803 — 24,190 Policy benefit remeasurement (gain)/loss — — — — — — Market risk benefits expense — — 36,960 — — 36,960 Amortization of deferred transaction costs 3,166 4,084 11,607 2,417 — 21,274 Universal life and annuity contract interest 13,138 3,812 13,262 — — 30,212 Other operating expenses 4,421 3,726 10,584 4,503 1,449 24,683 Federal income taxes 1,528 2,224 (3,360) 1,640 945 2,977 Total expenses 24,762 15,724 74,053 23,363 2,394 140,296 Segment earnings (loss) $ 6,693 9,741 (14,716) 6,396 4,137 12,251 Reconciliations of segment information to the Company's Condensed Consolidated Financial Statements are provided below. Three Months Ended March 31, 2024 2023 (In thousands) Premiums and Other Revenues: Premiums and contract revenues $ 57,228 56,933 Net investment income 134,361 89,909 Other revenues 5,985 5,705 Realized gains (losses) on investments (8) 67 Total condensed consolidated premiums and other revenues $ 197,566 152,614 Three Months Ended March 31, 2024 2023 (In thousands) Federal Income Taxes: Total segment Federal income taxes $ 19,672 2,977 Taxes on realized gains (losses) on investments (2) 14 Total condensed consolidated Federal income taxes $ 19,670 2,991 Three Months Ended March 31, 2024 2023 (In thousands) Net Earnings: Total segment earnings $ 73,614 12,251 Realized gains (losses) on investments, net of taxes (6) 53 Total condensed consolidated net earnings $ 73,608 12,304 March 31, December 31, 2024 2023 (In thousands) Assets: Total segment assets $ 11,485,825 11,595,716 Other unallocated assets 630,619 654,899 Total condensed consolidated assets $ 12,116,444 12,250,615 |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTS The Company's stockholders approved an Incentive Plan in 2016 which provides for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights ("SARs"), in tandem with stock options or freestanding; (3) restricted stock or restricted stock units; and (4) performance awards. The number of shares of Class A Common Stock, $0.01 par value, allowed to be issued under the Incentive Plan, cannot exceed 300,000. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which can be used in the issuance of the fourth type of award noted above (performance awards). The term of the Incentive Plan is for ten years from the date of stockholder approval. All of the employees of the Company and its subsidiaries are eligible to participate in the Incentive Plan. In addition, directors of the Company are eligible to receive the same types of awards as employees except that they are not eligible to receive incentive stock options. Company directors, including members of the Compensation and Stock Option Committee, are eligible for nonstatutory 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, 2023 were paid out in the first quarter of 2024. The performance factor during the measurement period used to determine compensation payouts was 150.00% of the pre-defined metric target. 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. 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. No awards were granted to any officers or directors during the three months ended March 31, 2024 or 2023. The Company uses the current fair value method to measure compensation costs for awards granted under the share-based plans. As of March 31, 2024 and December 31, 2023, the liability balance was $63.8 million and $64.8 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. (the "Merger Agreement"). 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 second quarter of the 2024 calendar year. In the merger contemplated by the Merger Agreement, 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. As a result, the liability balance and expense amortization for all awards outstanding at March 31, 2024 has been calculated assuming an ultimate amortization ending date of June 30, 2024 and a stock price of $500.00 per share, consistent with the assumptions used at December 31, 2023. Fair value of SARs in prior periods, including at March 31, 2023, was calculated using the Black-Scholes option pricing model and the market quoted price per share of the Company's Class A Common Stock at each respective reporting date. A summary of awards by type and related activity is detailed below. Options Outstanding Shares Shares Weighted- Stock Options : Balance at January 1, 2024 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2024 291,000 — $ — Liability Awards SARs RSUs PSUs Other Share/Unit Awards : Balance at January 1, 2024 212,067 14,254 18,444 Exercised (1,574) — (8,674) Forfeited — — — Granted — — — Balance at March 31, 2024 210,493 14,254 9,770 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 $6.6 million and $1.0 million for the three months ended March 31, 2024 and 2023, respectively. The total fair value of SARs, RSUs, and PSUs vested during the three months ended March 31, 2024 and 2023 was $0.0 million and $0.0 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 March 31, 2024. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $216.48 3,529 1.9 years 3,529 $311.16 6,745 2.9 years 6,745 $334.34 6,277 3.7 years 6,277 $303.77 7,233 4.7 years 7,233 $252.91 10,642 5.7 years 10,642 $192.10 25,002 6.7 years 25,002 $218.44 48,720 7.7 years 29,037 $220.61 102,345 8.7 years 29,254 Totals 210,493 117,719 Aggregate intrinsic value (in thousands) $ 57,373 $ 31,410 The aggregate intrinsic value in the table above is based on the price of $500.00 per share agreed upon in the Merger Agreement described above. The pre-tax compensation cost/(benefit) recognized in the Condensed Consolidated Financial Statements related to these plans was $5.6 million for the three months ended March 31, 2024, and $(2.3) million for the three months ended March 31, 2023, respectively. The related tax expense/(benefit) recognized was $(1.2) million for the three months ended March 31, 2024 and $0.5 million for the three months ended March 31, 2023, respectively. As of March 31, 2024, the total pre-tax compensation expense related to non-vested share-based awards not yet recognized was $5.6 million. This amount is expected to be recognized over a weighted-average period of 0.25 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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. 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). (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 $13.3 million in commitments to fund new loans and $2.5 million in commitments to extend credit relating to existing loans at March 31, 2024. 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 $167.2 million as of March 31, 2024. The Company had unfunded commitments on private placements of $0.0 million and unfunded commitments on revolver loans of $0.0 million as of March 31, 2024. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 3 67 Realized losses on disposal (11) — Totals $ (8) 67 For the three months ended March 31, 2024 and 2023, the percentage of total gains (losses) on bonds due to the call of securities was 100.0% and 4.7%, respectively. (B) Debt Securities The table below presents amortized costs and fair values of debt securities available-for-sale at March 31, 2024. Debt Securities Available-for-Sale Amortized Gross Gross Fair (In thousands) U.S. agencies $ 12,002 — (187) 11,815 U.S. Treasury 2,824 — (95) 2,729 States and political subdivisions 439,710 277 (52,118) 387,869 Foreign governments 62,942 — (15,782) 47,160 Public utilities 545,696 124 (56,104) 489,716 Corporate 5,393,330 4,147 (444,161) 4,953,316 Commercial mortgage-backed 22,229 31 (1,306) 20,954 Residential mortgage-backed 246,477 214 (12,527) 234,164 Asset-backed 987,637 1,955 (65,762) 923,830 Totals $ 7,712,847 6,748 (648,042) 7,071,553 The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2023. Debt Securities Available-for-Sale Amortized Gross Gross Fair (In thousands) U.S. agencies $ 12,052 — (106) 11,946 U.S. Treasury 2,821 2 (66) 2,757 States and political subdivisions 442,455 661 (48,631) 394,485 Foreign governments 62,947 — (14,453) 48,494 Public utilities 556,434 138 (53,306) 503,266 Corporate 5,442,342 6,214 (413,600) 5,034,956 Commercial mortgage-backed 22,239 26 (1,432) 20,833 Residential mortgage-backed 252,924 668 (11,573) 242,019 Asset-backed 920,289 2,102 (72,959) 849,432 Totals $ 7,714,503 9,811 (616,126) 7,108,188 Unrealized losses for debt securities available-for-sale increased slightly at March 31, 2024 from comparable balances at December 31, 2023, primarily due to increases in interest rate levels during the period. The ten-year U.S. Treasury bond increased 32 basis points during the three months ended March 31, 2024. Debt securities balances at March 31, 2024 and December 31, 2023 include Ozark National holdings of $747.5 million and $716.0 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 March 31, 2024. 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 $ 4,707 (128) 7,109 (59) 11,816 (187) U.S. Treasury 1,014 (5) 1,715 (90) 2,729 (95) States and political subdivisions 39,299 (475) 314,140 (51,643) 353,439 (52,118) Foreign governments — — 47,160 (15,782) 47,160 (15,782) Public utilities — — 485,883 (56,104) 485,883 (56,104) Corporate 141,878 (4,253) 4,554,467 (439,908) 4,696,345 (444,161) Commercial mortgage-backed — — 15,923 (1,306) 15,923 (1,306) Residential mortgage-backed 18,070 (507) 192,121 (12,020) 210,191 (12,527) Asset-backed 169,542 (2,588) 623,286 (63,174) 792,828 (65,762) Totals $ 374,510 (7,956) 6,241,804 (640,086) 6,616,314 (648,042) 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, 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 $ 4,823 (12) 7,123 (94) 11,946 (106) U.S. Treasury 33 — 1,739 (66) 1,772 (66) States and political subdivisions 14,228 (36) 318,436 (48,595) 332,664 (48,631) Foreign governments — — 48,494 (14,453) 48,494 (14,453) Public utilities — — 500,674 (53,306) 500,674 (53,306) Corporate 116,521 (2,225) 4,719,019 (411,375) 4,835,540 (413,600) Commercial mortgage-backed — — 15,807 (1,432) 15,807 (1,432) Residential mortgage-backed 12,307 (221) 208,134 (11,352) 220,441 (11,573) Asset-backed 76,980 (1,676) 619,960 (71,283) 696,940 (72,959) Totals $ 224,892 (4,170) 6,439,386 (611,956) 6,664,278 (616,126) Debt securities. The gross unrealized losses for debt securities are made up of 983 individual issues, or 90.4% of the total debt securities held available-for-sale by the Company at March 31, 2024. The market value of these bonds as a percent of amortized cost approximates 91.1%. Of the 983 securities, 911, or 92.7%, fall in the 12 months or greater aging category and 967 were rated investment grade at March 31, 2024. The amortized cost and fair value of investments in debt securities available-for-sale at March 31, 2024, 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 $ 954,486 942,367 Due after 1 year through 5 years 2,366,855 2,285,704 Due after 5 years through 10 years 1,179,151 1,061,340 Due after 10 years 1,956,012 1,603,194 6,456,504 5,892,605 Mortgage and asset-backed securities 1,256,343 1,178,948 Totals before allowance for credit losses 7,712,847 7,071,553 Allowance for credit losses — — Totals $ 7,712,847 7,071,553 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 March 31, 2024 or December 31, 2023. 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 three months ended March 31, 2024 and 2023, 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 resulted in fewer loan opportunities being available meeting the Company's required rate of return for several years. The subsequent rapid rise in interest rate levels beginning in 2022 have caused potential mortgage loan opportunities to fall outside the Company's underwriting criteria further causing a lower level of originations. There were no mortgage loans originated by the Company in the three months ended March 31, 2024 compared with $1.8 million in the three months ended March 31, 2023 and $6.8 million in the year ended December 31, 2023. 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 March 31, 2024 or 2023 and as a result all interest income was recognized at March 31, 2024 and 2023. Included in the mortgage loan investment balance at March 31, 2024 and December 31, 2023 were three mortgage loan investments made by Prosperity under the funds withheld reinsurance agreement totaling $19.4 million and $19.6 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. March 31, 2024 December 31, 2023 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 105,375 22.1 $ 105,216 21.9 50% to 60% 173,431 36.5 165,844 34.6 60% to 70% 175,750 37.0 186,664 39.0 70% to 80% 20,813 4.4 20,903 4.5 Gross balance 475,369 100.0 478,627 100.0 Market value adjustment (911) (0.2) (843) (0.2) Allowance for credit losses (3,665) (0.8) (3,651) (0.8) Totals $ 470,793 99.0 $ 474,133 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 March 31, 2024 2023 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 3,651 3,575 Provision during the period 14 128 Total ending allowance for credit losses $ 3,665 3,703 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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, and beginning in the fourth quarter of 2023, the share-based compensation obligations. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are certain available-for-sale and trading debt securities, over-the-counter derivative contracts, and mortgage loans that are recorded at fair value, The Company’s Level 3 liabilities consist of certain equity-index product-related embedded derivatives, market risk benefits liabilities, and an embedded derivative on reinsurance. Prior to the fourth quarter of 2023, Level 3 liabilities also included share-based compensation obligations. 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. March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,071,553 — 6,552,164 519,389 Debt securities, trading 985,435 — 864,620 120,815 Equity securities 26,399 22,705 3,694 — Mortgage loans 19,388 — — 19,388 Derivatives, index options 114,669 — — 114,669 Short-term investments 24,093 — 24,093 — Total assets $ 8,241,537 22,705 7,444,571 774,261 Policyholder account balances (a) $ 441,890 — — 441,890 Market risk benefits liabilities, net (b) 222,438 — — 222,438 Embedded derivative contra-liability (c) (280,244) — (278,580) (1,664) Other liabilities (d) 63,802 — 63,802 — Total liabilities $ 447,886 — (214,778) 662,664 (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 months ended March 31, 2024 and March 31, 2023, the Company made no transfers from Level 2 to Level 3 for debt securities available-for-sale. December 31, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,108,188 — 6,596,362 511,826 Debt securities, trading 1,046,856 — 900,835 146,021 Equity securities 24,098 20,638 3,460 — Mortgage loans 19,580 — — 19,580 Derivatives, index options 85,158 — — 85,158 Short-term investments — — — — Total assets $ 8,283,880 20,638 7,500,657 762,585 Policyholder account balances (a) $ 398,126 — — 398,126 Market risk benefits liabilities, net (b) 242,585 — — 242,585 Embedded derivative contra-liability (c) (280,385) — (274,981) (5,404) Other liabilities (d) 64,835 — 64,835 — Total liabilities $ 425,161 — (210,146) 635,307 (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. March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,949,121 — 6,552,164 396,957 Priced internally 122,432 — — 122,432 Subtotal 7,071,553 — 6,552,164 519,389 Debt securities, trading: Priced by third-party vendors 985,435 — 864,620 120,815 Subtotal 985,435 — 864,620 120,815 Equity securities: Priced by third-party vendors 26,399 22,705 3,694 — Subtotal 26,399 22,705 3,694 — Mortgage loans: Priced internally 19,388 — — 19,388 Subtotal 19,388 — — 19,388 Derivatives, index options: Priced by third-party vendors 114,669 — — 114,669 Subtotal 114,669 — — 114,669 Short-term Investments: Priced by third-party vendors 24,093 — 24,093 — Subtotal 24,093 — 24,093 — Total $ 8,241,537 22,705 7,444,571 774,261 Percent of total 100.0 % 0.3 % 90.3 % 9.4 % December 31, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,994,695 — 6,596,362 398,333 Priced internally 113,493 — — 113,493 Subtotal 7,108,188 — 6,596,362 511,826 Debt securities, trading: Priced by third-party vendors 1,046,856 — 900,835 146,021 Subtotal 1,046,856 — 900,835 146,021 Equity securities: Priced by third-party vendors 24,098 20,638 3,460 — Subtotal 24,098 20,638 3,460 — Mortgage loans: Priced internally 19,580 — — 19,580 Subtotal 19,580 — — 19,580 Derivatives, index options: Priced by third-party vendors 85,158 — — 85,158 Subtotal 85,158 — — 85,158 Total $ 8,283,880 20,638 7,500,657 762,585 Percent of total 100.0 % 0.2 % 90.6 % 9.2 % The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. Three Months Ended March 31, 2024 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2024 $ 511,826 146,021 85,158 19,580 762,585 Total realized and unrealized gains (losses): Included in net earnings — 3,808 38,474 (68) 42,214 Included in other comprehensive income (loss) (2,928) — — — (2,928) Purchases, sales, issuances and settlements, net: Purchases 17,778 12,532 13,348 — 43,658 Settlements (7,287) (41,546) (22,311) (124) (71,268) Balance at end of period March 31, 2024 $ 519,389 120,815 114,669 19,388 774,261 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 $ — 3,808 37,595 (68) 41,335 Total $ — 3,808 37,595 (68) 41,335 Three Months Ended March 31, 2024 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities, net Total Liabilities (In thousands) Beginning balance, January 1, 2024 $ (5,404) 398,126 — 242,585 635,307 Total realized and unrealized (gains) losses: Included in net earnings 3,740 52,727 — (20,244) 36,223 Purchases, sales, issuances and settlements, net: Purchases — 13,348 — — 13,348 Issuances — — — 97 97 Settlements — (22,311) — — (22,311) Balance at end of period March 31, 2024 $ (1,664) 441,890 — 222,438 662,664 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 $ 3,740 — — — 3,740 Benefits and expenses — 37,595 — (20,244) 17,351 Total $ 3,740 37,595 — (20,244) 21,091 Three Months Ended March 31, 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 — 1,525 2,933 254 4,712 Included in other comprehensive income (loss) 6,606 — — — 6,606 Purchases, sales, issuances and settlements, net: Purchases 22,533 24,357 12,630 — 59,520 Settlements (3,586) (3,219) — (33) (6,838) Balance at end of period March 31, 2023 $ 488,349 145,899 39,232 19,555 693,035 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — 1,525 3,233 254 5,012 Benefits and expenses — — — — — Total $ — 1,525 3,233 254 5,012 Three Months Ended March 31, 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 1,779 (6,164) (2,314) 44,317 37,618 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 12,631 — — 12,631 Sales — — — — — Issuances — — — 22 22 Settlements — — (984) — (984) Transfers into (out of) Level 3 — — — — — Balance at end of period March 31, 2023 $ (8,464) 394,153 17,244 211,357 614,290 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 $ 1,779 — — — 1,779 Benefits and expenses — 3,233 (2,314) 44,339 45,258 Total $ 1,779 3,233 (2,314) 44,339 47,037 The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: March 31, 2024 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 122,432 Discounted cash flows Discount rate 3.55% - 6.14% (5.03%) Derivatives, index options 114,669 Broker prices Implied volatility 10.20% - 19.77% (12.50%) Mortgage loans 19,388 Discounted cash flows Spread 165 - 275 bps Total assets $ 256,489 Liabilities: Policyholder account balances $ 441,890 Deterministic cash flow model Projected option cost 0.00% - 11.84% (4.12%) Market risk benefits liabilities, net 222,438 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 664,328 December 31, 2023 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 113,493 Discounted cash flows Discount rate 3.55% - 6.14% (5.01%) Derivatives, index options 85,158 Broker prices Implied volatility 10.26% - 22.00% (13.64%) Mortgage loans 19,580 Discounted cash flows Spread 195 - 230 bps Total assets $ 218,231 Liabilities: Policyholder account balances $ 398,126 Deterministic cash flow model Projected option cost 0.00% - 8.63% (3.82%) Market risk benefits liabilities, net 242,585 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 640,711 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: March 31, 2024 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,071,553 7,071,553 — 6,552,164 519,389 Debt securities, trading 985,435 985,435 — 864,620 120,815 Cash and cash equivalents 450,499 450,499 450,499 — — Mortgage loans 470,793 426,942 — — 426,942 Real estate 26,995 48,767 — — 48,767 Policy loans 64,838 82,897 — — 82,897 Other loans 51,021 49,809 — — 49,809 Derivatives, index options 114,669 114,669 — — 114,669 Equity securities 26,399 26,399 22,705 3,694 — Short-term investments 24,093 24,093 — 24,093 — Other investments 4,318 4,654 — — 4,654 LIABILITIES Deferred annuity contracts $ 4,693,311 3,126,551 — — 3,126,551 Immediate annuity and supplemental contracts 343,724 343,202 — — 343,202 Market risk benefits liabilities, net 222,437 222,437 — — 222,437 December 31, 2023 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,108,188 7,108,188 — 6,596,362 511,826 Debt securities, trading 1,046,856 1,046,856 — 900,835 146,021 Cash and cash equivalents 482,758 482,758 482,758 — — Mortgage loans 474,133 433,695 — — 433,695 Real estate 27,134 47,867 — — 47,867 Policy loans 66,602 87,086 — — 87,086 Other loans 37,906 36,985 — — 36,985 Derivatives, index options 85,158 85,158 — — 85,158 Equity securities 24,098 24,098 20,638 3,460 — Other investments 4,318 4,597 — — 4,597 LIABILITIES Deferred annuity contracts $ 4,871,141 3,307,065 — — 3,307,065 Immediate annuity and supplemental contracts 353,868 357,196 — — 357,196 Market risk benefits liabilities, net 242,585 242,585 — — 242,585 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 | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the 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 March 31, 2024 and December 31, 2023, respectively. March 31, 2024 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 114,669 Fixed-index products Universal life and annuity contracts $ 441,890 Embedded derivative on reinsurance contract Funds withheld liability (280,244) Total $ 114,669 $ 161,646 December 31, 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 $ 85,158 Fixed-index products Universal life and annuity contracts $ 398,126 Embedded derivative on reinsurance contract Funds withheld liability (280,385) Total $ 85,158 $ 117,741 The table below presents the effect of derivative instruments in the Condensed Consolidated Statements of Earnings for the three months ended March 31, 2024 and 2023. March 31, March 31, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 38,407 2,933 Fixed-index products Universal life and annuity contract interest (52,660) 6,164 Embedded derivative on reinsurance contract Net investment income (141) (28,868) $ (14,394) (19,771) |
Intangibles and Goodwill
Intangibles and Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (964) 2,800 (918) Internally developed software 7 3,800 (2,805) 3,800 (2,669) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (3,769) 9,600 (3,587) 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 March 31, 2024, 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 2024 $ 547 2025 730 2026 232 2027 187 2028 187 Thereafter 948 Goodwill The changes in the carrying amount of goodwill were as follows: March 31, December 31, 2024 2023 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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. A condition to the closing of the Merger is 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. This occurred at a special meeting of NWLGI stockholders held on January 8, 2024. The closing of the Merger is further subject to regulatory approvals and other customary closing conditions. The Merger is currently expected to close in the second quarter 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) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company does not expect this guidance to have a material impact on the Consolidated Financial Statements and related disclosures upon adoption. Accounting pronouncements adopted Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) In August 2018, the FASB issued ASU 2018-12. This update pertained to long-duration contracts and improvement in the timeliness of recognizing changes in the liability for future policy benefits, simplification of accounting for certain market-based options, simplification of the amortization of deferred policy acquisition costs, and improvement in the effectiveness of required disclosures. Amendments included 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 retrospective method for market risk benefits and the modified retrospective method for 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. 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, and beginning in the fourth quarter of 2023, the share-based compensation obligations. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are certain available-for-sale and trading debt securities, over-the-counter derivative contracts, and mortgage loans that are recorded at fair value, The Company’s Level 3 liabilities consist of certain equity-index product-related embedded derivatives, market risk benefits liabilities, and an embedded derivative on reinsurance. Prior to the fourth quarter of 2023, Level 3 liabilities also included share-based compensation obligations. 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and March 31, 2023. Affected Line Item in the Condensed Consolidated Statements of Earnings Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Three Months Ended March 31, 2024 2023 (In thousands) Other net investment (losses) gains $ (8) 67 Earnings before Federal income taxes (8) 67 Federal income taxes (2) 14 Net earnings $ (6) 53 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 73,608 12,304 Dividends - Class A shares — — Dividends - Class B shares — — Undistributed earnings $ 73,608 12,304 Allocation of net earnings: Dividends $ — — — — Allocation of undistributed earnings 71,526 2,082 11,956 348 Net earnings $ 71,526 2,082 11,956 348 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 $ 20.82 10.41 3.48 1.74 Diluted earnings per share $ 20.82 10.41 3.48 1.74 |
Deferred Transaction Costs (Tab
Deferred Transaction Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Deferred Charges, Insurers [Abstract] | |
Summary of Deferred Policy Acquisition Costs | A summary of information related to DPAC is provided in the following table. Three Months Ended March 31, 2024 Deferred Policy Acquisition Costs Domestic Traditional Life Domestic Universal Life International Traditional Life International Universal Life Annuities excl. SPIAs WLC ONL & Affiliates (In thousands) Balance, beginning of period $ 2,899 180,234 9,874 138,031 279,637 17,998 Capitalization additions 3 3,953 — 90 1,788 926 Amortization (65) (3,326) (267) (3,468) (8,103) (237) Experience adjustment — — — — — — Balance, end of period $ 2,837 180,861 9,607 134,653 273,322 18,687 Three Months Ended March 31, 2023 Deferred Policy Acquisition Costs 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 3 3,452 — 158 2,077 1,103 Amortization (72) (3,094) (292) (3,792) (8,582) (204) Experience adjustment — — — — — — Balance, end of period $ 3,090 176,392 10,859 148,653 299,984 15,661 The following table summarizes DPAC balances by product line as of the end of the following periods. March 31, Deferred Policy Acquisition Costs 2024 2023 (In thousands) Domestic traditional life $ 2,837 3,090 Domestic universal life 180,861 176,392 International traditional life 9,607 10,859 International universal life 134,653 148,653 Annuities, excl. SPIAs with life contingencies 273,322 299,984 ONL & Affiliates 18,687 15,661 Total $ 619,967 654,639 |
Summary of Deferred Sale Inducement Cost | A summary of information related to DSI is provided in the following tables. Three Months Ended March 31, Deferred Sales Inducements 2024 2023 (In thousands) Balance, beginning of year $ 70,950 85,303 Capitalizations (1,930) (939) Amortization expense (1,837) (2,360) In-force ceded — — Experience adjustment — — Balance, end of period $ 67,183 82,004 |
Summary Of Value of Business Acquired | A summary of information related to VOBA is provided in the following table. March 31, Value of Business Acquired 2024 2023 (In thousands) Balance, beginning of period $ 129,905 138,495 Amortization (2,078) (2,213) Experience adjustment — — Balance as of end of period $ 127,827 136,282 |
Schedule of Estimated Future Amortization of Value of Business Acquired (VOBA) | Estimated future amortization of VOBA, net of interest, is as follows as of March 31, 2024: (In thousands) Remainder of 2024 $ 6,077 2025 7,743 2026 7,331 2027 6,945 2028 6,578 |
Summary of Cost Of Reinsurance | A summary of information related to COR is provided in the following table. Three Months Ended March 31, Cost of Reinsurance 2024 2023 SPIAs WLC Annuities excl. SPIAs WLC SPIAs WLC Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 11,156 56,781 11,897 66,431 Additions — — — — Amortization (162) (2,733) (446) (2,579) Experience Adjustment — — — — Balance as of end of period $ 10,994 54,048 11,451 63,852 The following table summarizes the COR balance by product line as of the end of the following periods. March 31, Cost of Reinsurance 2024 2023 (In thousands) SPIAs with life contingencies $ 10,994 11,451 Annuities, excl. SPIAs with life contingencies 54,048 63,852 Total $ 65,042 75,303 |
Policyholder Obligations (Table
Policyholder Obligations (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Insurance [Abstract] | |
Summary of Liability for Policyholders' Account Balances | The following tables summarize balances and changes in the Liability for policyholder account balances. Three Months Ended March 31, 2024 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,454,356 490,603 4,955,532 Premiums received 29,416 8,057 24,296 Policy charges (17,054) (16,687) (7,294) Surrenders and withdrawals (12,933) (14,050) (156,174) Benefit payments (8,279) (504) (38,411) Interest credited 19,438 5,152 14,146 Change in embedded derivative 14,178 2,435 (9,122) Change in unearned revenue reserve 3,092 (182) — Other (2,424) 310 (8,055) Balance, end of period 1,479,790 475,134 4,774,918 Less reinsurance recoverable — — (1,065,753) Ending balance, net of reinsurance $ 1,479,790 475,134 3,709,165 Weighted-average crediting rate 6.34 % 4.37 % 1.11 % Net amount at risk $ 1,557 5,973 1,241,261 Cash surrender value $ 1,239,802 452,178 4,558,423 Three Months Ended March 31, 2023 Liability for Policyholder Account Balances Domestic Universal Life International Universal Life Annuities excl. SPIAs WLC (In thousands) Balance, beginning of period $ 1,420,569 563,998 5,677,218 Issuances — — — Premiums received 27,587 10,196 34,263 Policy charges (16,441) (19,656) (7,500) Surrenders and withdrawals (14,361) (11,000) (129,363) Benefit payments (8,189) (846) (53,150) Interest credited 3,267 2,249 13,857 Change in embedded derivative 13,219 1,321 2,414 Change in unearned revenue reserve 411 (46) — Other 313 125 (6,799) Balance, end of period 1,426,375 546,341 5,530,940 Less reinsurance recoverable — — (1,211,421) Ending balance, net of reinsurance $ 1,426,375 546,341 4,319,519 Weighted-average crediting rate 0.98 % 1.53 % 0.93 % Net amount at risk $ 1,621 6,910 1,162,927 Cash surrender value $ 1,211,837 522,501 5,201,886 The following table summarizes the Liability for policyholder account balances by line of business as of the end of the following periods. March 31, Liability for Policyholder Account Balances 2024 2023 (In thousands) Domestic universal life $ 1,479,790 1,426,375 International universal life 475,134 546,341 Annuities excl. SPIAs with life contingencies 4,774,918 5,530,940 Total $ 6,729,842 7,503,656 |
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. March 31, 2024 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% $ 1,629,149 2,719 14,120 100,508 1,746,496 2.00% - 2.99% 502,653 6,482 85,106 47,036 641,277 3.00% - 3.99% 449,173 35,915 11,515 28 496,631 4.00% and greater 375,935 — — 39 375,974 Total $ 2,956,910 45,116 110,741 147,611 3,260,378 March 31, 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% $ 1,977,043 2,291 38,739 140,367 2,158,440 2.00% - 2.99% 478,429 8,092 86,871 24,576 597,968 3.00% - 3.99% 453,414 40,857 2,780 27 497,078 4.00% and greater 398,573 — — 36 398,609 Total $ 3,307,459 51,240 128,390 165,006 3,652,095 |
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. Three Months Ended March 31, 2024 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits Domestic Universal Life International Universal Life Annuities (In thousands) Balance, beginning of period $ 72,241 49,886 37,310 Beginning balance before shadow reserve adjustments 72,241 49,886 37,310 Effect of changes in cash flow assumptions — — — Effect of actual variances from expected experience 1,158 (1,546) (98) Adjusted beginning of period balance 73,399 48,340 37,212 Issuances — — — Interest accrual 1,106 618 342 Assessments collected 5,390 2,209 92 Benefit payments (5,502) (1,259) (369) Derecognition (lapses and withdrawals) — — — Other (2) (270) 13 Ending balance before shadow reserve adjustments 74,391 49,638 37,290 Effect of shadow reserve adjustments — — — Balance, end of period 74,391 49,638 37,290 Less reinsurance recoverable, end of period — — (37,273) Net additional liability, after reinsurance recoverable $ 74,391 49,638 17 Three Months Ended March 31, 2023 Additional Liability for Benefits in Excess of Account Balances and Liability for Future Policy Benefits 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 — — — Effect of actual variances from expected experience 4,693 (771) 497 Adjusted beginning of period balance 68,497 45,631 38,999 Issuances — — — Interest accrual 184 93 374 Assessments collected 5,696 2,560 3 Benefit payments (9,001) (1,360) (552) Derecognition (lapses and withdrawals) — — — Other (1) (423) (12) Ending balance before shadow reserve adjustments 65,375 46,501 38,812 Effect of shadow reserve adjustments — — — Balance, end of period 65,375 46,501 38,812 Less reinsurance recoverable, end of period — — (38,812) Net additional liability, after reinsurance recoverable $ 65,375 46,501 — 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. March 31, 2024 2023 (In thousands) Domestic universal life $ 74,391 65,375 International universal life 49,638 46,501 Annuities 37,290 38,812 Total $ 161,319 150,688 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic universal life $ 15,180 1,106 16,790 184 International universal life 8,811 618 10,351 93 Annuities 6 342 255 374 Total $ 23,997 2,066 27,396 651 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. 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.60% 1.25% 1.86% 2.05% Domestic universal life 1.83% 2.11% 2.12% 1.93% International traditional life 0.30% 0.43% 0.09% 0.39% International universal life 0.27% 0.29% 0.29% 0.26% SPIAs with life contingencies 4.41% 3.24% 3.27% 3.08% Annuities excl. SPIAs with life contingencies 2.72% 2.67% 3.55% 2.68% ONL & Affiliates 1.08% 0.89% 0.78% 0.74% 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 6.43% 6.67% 5.10% 6.18% Domestic universal life 4.40% 3.49% 4.71% 3.37% International traditional life 9.48% 5.79% 9.26% 7.74% International universal life 13.06% 6.86% 11.00% 7.06% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 7.65% 4.55% 4.60% 4.15% ONL & Affiliates 4.63% 4.43% 3.96% 4.69% 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. March 31, 2024 2023 Domestic traditional life 8.0 8.0 Domestic universal life 8.1 8.1 International traditional life 8.0 8.0 International universal life 8.1 8.1 SPIAs with life contingencies 8.0 8.0 Annuities excl. SPIAs with life contingencies 6.6 6.6 ONL & Affiliates 22.0 22.0 |
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. Three Months Ended March 31, 2024 Domestic Traditional Life International Traditional Life SPIAs With Life Contingency ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ (3,608) 35,323 — 409,519 Beginning balance at original discount rate (2,878) 36,038 — 485,238 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (40) 40 — (1,693) Adjusted beginning of period balance (2,918) 36,078 — 483,545 Issuances — — — 2,181 Interest accrual (65) 384 — 3,949 Net premium collected 198 (847) — (9,574) Ending balance at original discount rate (2,785) 35,615 — 480,101 Effect of changes in discount rate assumptions (689) (1,669) — (82,850) Balance, end of period $ (3,474) 33,946 — 397,251 Present value of expected future policy benefits Balance, beginning of period $ 52,358 100,948 193,180 1,020,535 Beginning balance at original discount rate 45,030 99,868 209,910 1,291,686 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (9) (77) 969 (1,648) Adjusted beginning of period balance 45,021 99,791 210,879 1,290,038 Issuances — — 2,982 2,208 Interest accrual 653 1,356 1,775 10,144 Benefit payments (1,370) (1,737) (5,265) (14,593) Derecognition (lapses and withdrawals) — — (1,656) — Other 126 449 (269) — Ending balance at original discount rate 44,430 99,859 208,446 1,287,797 Effect of changes in discount rate assumptions 5,774 (1,370) (20,469) (297,200) Balance, end of period 50,204 98,489 187,977 990,597 Net liability for future policy benefits 53,678 64,543 187,977 593,346 Less reinsurance recoverable — (149) (155,041) (25,799) Net liability for future policy benefits, after reinsurance $ 53,678 64,394 32,936 567,547 Three Months Ended March 31, 2023 Domestic Traditional Life International Traditional Life SPIAs With Life Contingencies ONL & Affiliates (In thousands) Present value of expected net premiums Balance, beginning of period $ 260 33,998 — 402,745 Beginning balance at original discount rate 660 35,907 — 494,962 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience 8 (915) — (677) Adjusted beginning of period 668 34,992 — 494,285 Issuances — — — 2,930 Interest accrual (3) 368 — 3,997 Net premium collected (59) (880) — (9,788) Ending balance at original discount rate 606 34,480 — 491,424 Effect of changes in discount rate assumptions (415) (770) — (80,359) Balance, end of period $ 191 33,710 — 411,065 Present value of expected future policy benefits Balance, beginning of period $ 70,165 99,168 191,817 975,999 Beginning balance at original discount rate 62,865 100,929 215,542 1,291,914 Effect of changes in cash flow assumptions — — — — Effect of actual variances from expected experience (359) (2,793) 1,000 (463) Adjusted beginning of year balance 62,506 98,136 216,542 1,291,451 Issuances — — 1,775 2,846 Interest accrual 962 1,367 1,747 10,092 Benefit payments (1,016) (1,485) (5,707) (15,344) Derecognition (lapses and withdrawals) — — (1,814) — Other 85 747 96 (38) Ending balance at original discount rate 62,537 98,765 212,639 1,289,007 Effect of changes in discount rate assumptions 9,133 1,190 (18,123) (280,035) Balance, end of period 71,670 99,955 194,516 1,008,972 Net liability for future policy benefits 71,479 66,245 194,516 597,907 Less reinsurance recoverable (13,160) (553) (164,270) (26,436) Net liability for future policy benefits, after reinsurance $ 58,319 65,692 30,246 571,471 The following table summarizes the net Liability for future policy benefits by product line as of the end of the following periods. March 31, 2024 2023 (In thousands) Domestic traditional life $ 53,678 71,479 International traditional life 64,543 66,245 SPIAs with life contingencies 187,977 194,516 ONL & Affiliates 593,346 597,907 Total $ 899,544 930,147 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. Three months ended March 31, 2024 2023 Gross Assessments Interest Expense Gross Assessments Interest Expense (In thousands) Domestic traditional life $ 439 718 749 965 International traditional life 2,376 972 2,647 999 SPIAs with life contingencies 1,915 1,775 81 1,747 ONL & Affiliates 18,813 6,195 19,237 6,095 Total $ 23,543 9,660 22,714 9,806 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. March 31, 2024 2023 Expected Future Gross Premiums Expected Future Benefit Payments Expected Future Gross Premiums Expected Future Benefit Payments (In thousands) Domestic traditional life $ 26,422 79,536 32,336 105,418 International traditional life 157,291 216,623 158,329 216,235 SPIAs with life contingencies — 277,925 — 282,340 ONL & Affiliates 1,389,010 2,264,018 1,419,206 2,263,534 Total $ 1,572,723 2,838,102 1,609,871 2,867,527 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. 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Mortality: Domestic traditional life 1.60% 1.25% 1.86% 2.05% Domestic universal life 1.83% 2.11% 2.12% 1.93% International traditional life 0.30% 0.43% 0.09% 0.39% International universal life 0.27% 0.29% 0.29% 0.26% SPIAs with life contingencies 4.41% 3.24% 3.27% 3.08% Annuities excl. SPIAs with life contingencies 2.72% 2.67% 3.55% 2.68% ONL & Affiliates 1.08% 0.89% 0.78% 0.74% 2024 2023 Actual Experience Expected Experience Actual Experience Expected Experience Lapses: Domestic traditional life 6.43% 6.67% 5.10% 6.18% Domestic universal life 4.40% 3.49% 4.71% 3.37% International traditional life 9.48% 5.79% 9.26% 7.74% International universal life 13.06% 6.86% 11.00% 7.06% SPIAs with life contingencies N/A N/A N/A N/A Annuities excl. SPIAs with life contingencies 7.65% 4.55% 4.60% 4.15% ONL & Affiliates 4.63% 4.43% 3.96% 4.69% 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. March 31, 2024 2023 Domestic traditional life 8.0 8.0 Domestic universal life 8.1 8.1 International traditional life 8.0 8.0 International universal life 8.1 8.1 SPIAs with life contingencies 8.0 8.0 Annuities excl. SPIAs with life contingencies 6.6 6.6 ONL & Affiliates 22.0 22.0 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. March 31, 2024 March 31, 2023 Interest Accretion Rate Current Discount Rate Interest Accretion Rate Current Discount Rate Domestic traditional life 6.75% 5.00% 6.80% 4.65% Domestic universal life 6.34% 6.34% 0.98% 0.98% International traditional life 5.13% 5.00% 5.13% 4.65% International universal life 4.37% 4.37% 1.53% 1.53% SPIAs with life contingencies 3.45% 5.00% 3.31% 4.65% Annuities excl. SPIAs with life contingencies 1.11% 1.11% 0.93% 0.93% ONL & Affiliates 3.25% 5.40% 3.24% 5.20% |
Market Risk Benefits (Tables)
Market Risk Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 and guaranteed annuitization benefits. The Company does not have guaranteed minimum death benefits in its policies. Three Months Ended March 31, 2024 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization Benefits (In thousands) Balance, beginning of period $ 174,375 68,210 Balance, beginning of period, before effect of changes in instrument-specific credit risk 174,375 68,210 Issuances 97 — Interest accrual — — Attributed fees collected 1,058 — Benefit payments — — Effect of changes in interest rates (18,051) (2,311) Actual policyholder behavior different from expected behavior (940) — 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 156,539 65,899 Effect of changes in the instrument-specific credit risk — — Balance, end of period 156,539 65,899 Less reinsurance recoverable, end of period (6,188) (66,250) Balance, end of period, net of reinsurance $ 150,351 (351) Net amount at risk $ 1,116,647 124,613 Weighted-average attained age of contract holders 70.0 68.2 Three Months Ended March 31, 2023 Guaranteed Minimum Withdrawal Benefits Guaranteed Annuitization 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 22 — Interest accrual — — Attributed fees collected 6,771 — Benefit payments — — Effect of changes in interest rates 36,147 2,078 Actual policyholder behavior different from expected behavior (679) — 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 139,813 71,544 Effect of changes in the instrument-specific credit risk — — Balance, end of period 139,813 71,544 Less reinsurance recoverable, end of period (4,167) (71,946) Balance, end of period, net of reinsurance $ 135,646 (402) Net amount at risk $ 1,035,476 127,450 Weighted-average attained age of contract holders 69.2 67.4 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. March 31, 2024 March 31, 2023 Asset Liability Net liability Asset Liability Net liability (In thousands) Guaranteed minimum withdrawal benefit $ 39,474 196,013 156,539 41,759 181,572 139,813 Guaranteed annuitization benefits — 65,899 65,899 — 71,544 71,544 Balance, end of period $ 39,474 261,912 222,438 41,759 253,116 211,357 |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Pension Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs (Credit) | The following table summarizes the components of net periodic benefit cost. Three Months Ended March 31, Components of Net Periodic Benefit Cost (Credit) 2024 2023 (In thousands) Service cost $ 29 27 Interest cost 180 199 Expected return on plan assets (364) (310) Amortization of net loss — 70 Net periodic benefit cost (credit) $ (155) (14) |
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 (Credit) | The following table summarizes the components of net periodic benefit costs for the non-qualified defined benefit plans. Three Months Ended March 31, Components of Net Periodic Benefit Cost 2024 2023 (In thousands) Service cost $ 388 204 Interest cost 568 408 Amortization of prior service cost 15 15 Amortization of net loss 614 — Net periodic benefit cost $ 1,585 627 |
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 (Credit) | The following table summarizes the components of net periodic benefit costs. Three Months Ended March 31, Components of Net Periodic Benefit Cost 2024 2023 (In thousands) Interest cost $ 8 61 Amortization of net loss (279) — Net periodic benefit cost (credit) $ (271) 61 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information, by Quarter | A summary of segment information as of March 31, 2024 and December 31, 2023 for the Condensed Consolidated Balance Sheet items and for the three months ended March 31, 2024 and March 31, 2023 for the Condensed Consolidated Statements of Earnings is provided below. Condensed Consolidated Balance Sheet Items: March 31, 2024 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 183,697 144,261 405,548 146,513 — 880,019 Market risk benefits asset — — 39,474 — — 39,474 Total segment assets 1,953,470 817,975 7,359,228 1,017,758 337,394 11,485,825 Future policyholder obligations 1,607,103 590,071 5,000,185 593,346 — 7,790,705 Market risk benefits liability — — 261,912 — — 261,912 Other policyholder liabilities 30,378 8,077 94,982 14,563 — 148,000 Funds withheld liability — — 1,161,625 — — 1,161,625 December 31, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Deferred transaction costs $ 183,132 147,906 418,525 147,902 — 897,465 Market risk benefits asset — — 30,819 — — 30,819 Total segment assets 1,918,435 828,186 7,501,928 1,012,445 334,722 11,595,716 Future policyholder obligations 1,581,808 606,870 5,186,021 611,016 — 7,985,715 Market risk benefits liability — — 273,404 — — 273,404 Other policyholder liabilities 24,406 13,652 91,456 14,252 — 143,766 Funds withheld liability — — 1,195,413 — — 1,195,413 Condensed Consolidated Statements of Earnings: Three Months Ended March 31, 2024 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,223 19,336 6,043 18,626 — 57,228 Net investment income 35,362 11,757 71,235 8,802 7,205 134,361 Other revenues 5 27 1,734 3,110 1,109 5,985 Total revenues 48,590 31,120 79,012 30,538 8,314 197,574 Life and other policy benefits 2,635 2,472 4,753 15,659 — 25,519 Policy benefit remeasurement (gain)/loss — — — — — — Market risk benefits expense — — (16,417) — — (16,417) Amortization of deferred transaction costs 3,391 3,735 10,998 2,315 — 20,439 Universal life and annuity contract interest 31,649 9,761 201 — — 41,611 Other operating expenses 5,964 6,090 14,840 4,804 1,438 33,136 Federal income taxes 1,047 1,917 13,672 1,582 1,454 19,672 Total expenses 44,686 23,975 28,047 24,360 2,892 123,960 Segment earnings $ 3,904 7,145 50,965 6,178 5,422 73,614 Three Months Ended March 31, 2023 Domestic International Annuities ONL & Affiliates All Totals (In thousands) Premiums and contract revenues $ 13,476 20,065 4,240 19,152 — 56,933 Net investment income 17,979 5,398 53,081 7,918 5,533 89,909 Other revenues — 2 2,016 2,689 998 5,705 Total revenues 31,455 25,465 59,337 29,759 6,531 152,547 Life and other policy benefits 2,509 1,878 5,000 14,803 — 24,190 Policy benefit remeasurement (gain)/loss — — — — — — Market risk benefits expense — — 36,960 — — 36,960 Amortization of deferred transaction costs 3,166 4,084 11,607 2,417 — 21,274 Universal life and annuity contract interest 13,138 3,812 13,262 — — 30,212 Other operating expenses 4,421 3,726 10,584 4,503 1,449 24,683 Federal income taxes 1,528 2,224 (3,360) 1,640 945 2,977 Total expenses 24,762 15,724 74,053 23,363 2,394 140,296 Segment earnings (loss) $ 6,693 9,741 (14,716) 6,396 4,137 12,251 |
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 March 31, 2024 2023 (In thousands) Premiums and Other Revenues: Premiums and contract revenues $ 57,228 56,933 Net investment income 134,361 89,909 Other revenues 5,985 5,705 Realized gains (losses) on investments (8) 67 Total condensed consolidated premiums and other revenues $ 197,566 152,614 |
Schedule of Reconciliation of Segment Federal Income Taxes to Condensed Consolidated Financial Statements | Three Months Ended March 31, 2024 2023 (In thousands) Federal Income Taxes: Total segment Federal income taxes $ 19,672 2,977 Taxes on realized gains (losses) on investments (2) 14 Total condensed consolidated Federal income taxes $ 19,670 2,991 |
Schedule of Reconciliation of Segment Net Earnings (Loss) to Condensed Consolidated Financial Statements | Three Months Ended March 31, 2024 2023 (In thousands) Net Earnings: Total segment earnings $ 73,614 12,251 Realized gains (losses) on investments, net of taxes (6) 53 Total condensed consolidated net earnings $ 73,608 12,304 |
Schedule of Reconciliation of Segment Assets to Condensed Consolidated Financial Statements | March 31, December 31, 2024 2023 (In thousands) Assets: Total segment assets $ 11,485,825 11,595,716 Other unallocated assets 630,619 654,899 Total condensed consolidated assets $ 12,116,444 12,250,615 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
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, 2024 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at March 31, 2024 291,000 — $ — |
Schedule of Other Share / Unit Award Activity | Liability Awards SARs RSUs PSUs Other Share/Unit Awards : Balance at January 1, 2024 212,067 14,254 18,444 Exercised (1,574) — (8,674) Forfeited — — — Granted — — — Balance at March 31, 2024 210,493 14,254 9,770 |
Schedule of Information About Stock Options and SARs Outstanding | The following table summarizes information about SARs outstanding at March 31, 2024. SARs Outstanding Number Outstanding Weighted- Number Exercise prices: $216.48 3,529 1.9 years 3,529 $311.16 6,745 2.9 years 6,745 $334.34 6,277 3.7 years 6,277 $303.77 7,233 4.7 years 7,233 $252.91 10,642 5.7 years 10,642 $192.10 25,002 6.7 years 25,002 $218.44 48,720 7.7 years 29,037 $220.61 102,345 8.7 years 29,254 Totals 210,493 117,719 Aggregate intrinsic value (in thousands) $ 57,373 $ 31,410 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 3 67 Realized losses on disposal (11) — Totals $ (8) 67 |
Schedule of Debt Securities, Available-for-Sale Securities | The table below presents amortized costs and fair values of debt securities available-for-sale at March 31, 2024. Debt Securities Available-for-Sale Amortized Gross Gross Fair (In thousands) U.S. agencies $ 12,002 — (187) 11,815 U.S. Treasury 2,824 — (95) 2,729 States and political subdivisions 439,710 277 (52,118) 387,869 Foreign governments 62,942 — (15,782) 47,160 Public utilities 545,696 124 (56,104) 489,716 Corporate 5,393,330 4,147 (444,161) 4,953,316 Commercial mortgage-backed 22,229 31 (1,306) 20,954 Residential mortgage-backed 246,477 214 (12,527) 234,164 Asset-backed 987,637 1,955 (65,762) 923,830 Totals $ 7,712,847 6,748 (648,042) 7,071,553 The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2023. Debt Securities Available-for-Sale Amortized Gross Gross Fair (In thousands) U.S. agencies $ 12,052 — (106) 11,946 U.S. Treasury 2,821 2 (66) 2,757 States and political subdivisions 442,455 661 (48,631) 394,485 Foreign governments 62,947 — (14,453) 48,494 Public utilities 556,434 138 (53,306) 503,266 Corporate 5,442,342 6,214 (413,600) 5,034,956 Commercial mortgage-backed 22,239 26 (1,432) 20,833 Residential mortgage-backed 252,924 668 (11,573) 242,019 Asset-backed 920,289 2,102 (72,959) 849,432 Totals $ 7,714,503 9,811 (616,126) 7,108,188 |
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 March 31, 2024. 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 $ 4,707 (128) 7,109 (59) 11,816 (187) U.S. Treasury 1,014 (5) 1,715 (90) 2,729 (95) States and political subdivisions 39,299 (475) 314,140 (51,643) 353,439 (52,118) Foreign governments — — 47,160 (15,782) 47,160 (15,782) Public utilities — — 485,883 (56,104) 485,883 (56,104) Corporate 141,878 (4,253) 4,554,467 (439,908) 4,696,345 (444,161) Commercial mortgage-backed — — 15,923 (1,306) 15,923 (1,306) Residential mortgage-backed 18,070 (507) 192,121 (12,020) 210,191 (12,527) Asset-backed 169,542 (2,588) 623,286 (63,174) 792,828 (65,762) Totals $ 374,510 (7,956) 6,241,804 (640,086) 6,616,314 (648,042) 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, 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 $ 4,823 (12) 7,123 (94) 11,946 (106) U.S. Treasury 33 — 1,739 (66) 1,772 (66) States and political subdivisions 14,228 (36) 318,436 (48,595) 332,664 (48,631) Foreign governments — — 48,494 (14,453) 48,494 (14,453) Public utilities — — 500,674 (53,306) 500,674 (53,306) Corporate 116,521 (2,225) 4,719,019 (411,375) 4,835,540 (413,600) Commercial mortgage-backed — — 15,807 (1,432) 15,807 (1,432) Residential mortgage-backed 12,307 (221) 208,134 (11,352) 220,441 (11,573) Asset-backed 76,980 (1,676) 619,960 (71,283) 696,940 (72,959) Totals $ 224,892 (4,170) 6,439,386 (611,956) 6,664,278 (616,126) |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investments in debt securities available-for-sale at March 31, 2024, 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 $ 954,486 942,367 Due after 1 year through 5 years 2,366,855 2,285,704 Due after 5 years through 10 years 1,179,151 1,061,340 Due after 10 years 1,956,012 1,603,194 6,456,504 5,892,605 Mortgage and asset-backed securities 1,256,343 1,178,948 Totals before allowance for credit losses 7,712,847 7,071,553 Allowance for credit losses — — Totals $ 7,712,847 7,071,553 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | The following table represents the mortgage loan portfolio by loan-to-value ratio. March 31, 2024 December 31, 2023 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 105,375 22.1 $ 105,216 21.9 50% to 60% 173,431 36.5 165,844 34.6 60% to 70% 175,750 37.0 186,664 39.0 70% to 80% 20,813 4.4 20,903 4.5 Gross balance 475,369 100.0 478,627 100.0 Market value adjustment (911) (0.2) (843) (0.2) Allowance for credit losses (3,665) (0.8) (3,651) (0.8) Totals $ 470,793 99.0 $ 474,133 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 March 31, 2024 2023 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 3,651 3,575 Provision during the period 14 128 Total ending allowance for credit losses $ 3,665 3,703 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,071,553 — 6,552,164 519,389 Debt securities, trading 985,435 — 864,620 120,815 Equity securities 26,399 22,705 3,694 — Mortgage loans 19,388 — — 19,388 Derivatives, index options 114,669 — — 114,669 Short-term investments 24,093 — 24,093 — Total assets $ 8,241,537 22,705 7,444,571 774,261 Policyholder account balances (a) $ 441,890 — — 441,890 Market risk benefits liabilities, net (b) 222,438 — — 222,438 Embedded derivative contra-liability (c) (280,244) — (278,580) (1,664) Other liabilities (d) 63,802 — 63,802 — Total liabilities $ 447,886 — (214,778) 662,664 (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, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 7,108,188 — 6,596,362 511,826 Debt securities, trading 1,046,856 — 900,835 146,021 Equity securities 24,098 20,638 3,460 — Mortgage loans 19,580 — — 19,580 Derivatives, index options 85,158 — — 85,158 Short-term investments — — — — Total assets $ 8,283,880 20,638 7,500,657 762,585 Policyholder account balances (a) $ 398,126 — — 398,126 Market risk benefits liabilities, net (b) 242,585 — — 242,585 Embedded derivative contra-liability (c) (280,385) — (274,981) (5,404) Other liabilities (d) 64,835 — 64,835 — Total liabilities $ 425,161 — (210,146) 635,307 (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. March 31, 2024 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,949,121 — 6,552,164 396,957 Priced internally 122,432 — — 122,432 Subtotal 7,071,553 — 6,552,164 519,389 Debt securities, trading: Priced by third-party vendors 985,435 — 864,620 120,815 Subtotal 985,435 — 864,620 120,815 Equity securities: Priced by third-party vendors 26,399 22,705 3,694 — Subtotal 26,399 22,705 3,694 — Mortgage loans: Priced internally 19,388 — — 19,388 Subtotal 19,388 — — 19,388 Derivatives, index options: Priced by third-party vendors 114,669 — — 114,669 Subtotal 114,669 — — 114,669 Short-term Investments: Priced by third-party vendors 24,093 — 24,093 — Subtotal 24,093 — 24,093 — Total $ 8,241,537 22,705 7,444,571 774,261 Percent of total 100.0 % 0.3 % 90.3 % 9.4 % December 31, 2023 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 6,994,695 — 6,596,362 398,333 Priced internally 113,493 — — 113,493 Subtotal 7,108,188 — 6,596,362 511,826 Debt securities, trading: Priced by third-party vendors 1,046,856 — 900,835 146,021 Subtotal 1,046,856 — 900,835 146,021 Equity securities: Priced by third-party vendors 24,098 20,638 3,460 — Subtotal 24,098 20,638 3,460 — Mortgage loans: Priced internally 19,580 — — 19,580 Subtotal 19,580 — — 19,580 Derivatives, index options: Priced by third-party vendors 85,158 — — 85,158 Subtotal 85,158 — — 85,158 Total $ 8,283,880 20,638 7,500,657 762,585 Percent of total 100.0 % 0.2 % 90.6 % 9.2 % |
Schedule of Significant Unobservable Inputs for Fair Value Measurements | The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. Three Months Ended March 31, 2024 Total Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2024 $ 511,826 146,021 85,158 19,580 762,585 Total realized and unrealized gains (losses): Included in net earnings — 3,808 38,474 (68) 42,214 Included in other comprehensive income (loss) (2,928) — — — (2,928) Purchases, sales, issuances and settlements, net: Purchases 17,778 12,532 13,348 — 43,658 Settlements (7,287) (41,546) (22,311) (124) (71,268) Balance at end of period March 31, 2024 $ 519,389 120,815 114,669 19,388 774,261 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 $ — 3,808 37,595 (68) 41,335 Total $ — 3,808 37,595 (68) 41,335 Three Months Ended March 31, 2024 Total Liabilities Embedded Derivative on Funds Withheld Liability Policyholder Account Balances Other Liabilities Market Risk Benefits Liabilities, net Total Liabilities (In thousands) Beginning balance, January 1, 2024 $ (5,404) 398,126 — 242,585 635,307 Total realized and unrealized (gains) losses: Included in net earnings 3,740 52,727 — (20,244) 36,223 Purchases, sales, issuances and settlements, net: Purchases — 13,348 — — 13,348 Issuances — — — 97 97 Settlements — (22,311) — — (22,311) Balance at end of period March 31, 2024 $ (1,664) 441,890 — 222,438 662,664 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 $ 3,740 — — — 3,740 Benefits and expenses — 37,595 — (20,244) 17,351 Total $ 3,740 37,595 — (20,244) 21,091 Three Months Ended March 31, 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 — 1,525 2,933 254 4,712 Included in other comprehensive income (loss) 6,606 — — — 6,606 Purchases, sales, issuances and settlements, net: Purchases 22,533 24,357 12,630 — 59,520 Settlements (3,586) (3,219) — (33) (6,838) Balance at end of period March 31, 2023 $ 488,349 145,899 39,232 19,555 693,035 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ — 1,525 3,233 254 5,012 Benefits and expenses — — — — — Total $ — 1,525 3,233 254 5,012 Three Months Ended March 31, 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 1,779 (6,164) (2,314) 44,317 37,618 Included in other comprehensive income (loss) — — — — — Purchases, sales, issuances and settlements, net: Purchases — 12,631 — — 12,631 Sales — — — — — Issuances — — — 22 22 Settlements — — (984) — (984) Transfers into (out of) Level 3 — — — — — Balance at end of period March 31, 2023 $ (8,464) 394,153 17,244 211,357 614,290 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 $ 1,779 — — — 1,779 Benefits and expenses — 3,233 (2,314) 44,339 45,258 Total $ 1,779 3,233 (2,314) 44,339 47,037 |
Schedule of Quantitative Information of Level 3 Assets | The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: March 31, 2024 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 122,432 Discounted cash flows Discount rate 3.55% - 6.14% (5.03%) Derivatives, index options 114,669 Broker prices Implied volatility 10.20% - 19.77% (12.50%) Mortgage loans 19,388 Discounted cash flows Spread 165 - 275 bps Total assets $ 256,489 Liabilities: Policyholder account balances $ 441,890 Deterministic cash flow model Projected option cost 0.00% - 11.84% (4.12%) Market risk benefits liabilities, net 222,438 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 664,328 December 31, 2023 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities available-for-sale $ 113,493 Discounted cash flows Discount rate 3.55% - 6.14% (5.01%) Derivatives, index options 85,158 Broker prices Implied volatility 10.26% - 22.00% (13.64%) Mortgage loans 19,580 Discounted cash flows Spread 195 - 230 bps Total assets $ 218,231 Liabilities: Policyholder account balances $ 398,126 Deterministic cash flow model Projected option cost 0.00% - 8.63% (3.82%) Market risk benefits liabilities, net 242,585 Risk-neutral valuation Benefit utilization rates 5.00% - 20.00% (5.00%) Total liabilities $ 640,711 |
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: March 31, 2024 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,071,553 7,071,553 — 6,552,164 519,389 Debt securities, trading 985,435 985,435 — 864,620 120,815 Cash and cash equivalents 450,499 450,499 450,499 — — Mortgage loans 470,793 426,942 — — 426,942 Real estate 26,995 48,767 — — 48,767 Policy loans 64,838 82,897 — — 82,897 Other loans 51,021 49,809 — — 49,809 Derivatives, index options 114,669 114,669 — — 114,669 Equity securities 26,399 26,399 22,705 3,694 — Short-term investments 24,093 24,093 — 24,093 — Other investments 4,318 4,654 — — 4,654 LIABILITIES Deferred annuity contracts $ 4,693,311 3,126,551 — — 3,126,551 Immediate annuity and supplemental contracts 343,724 343,202 — — 343,202 Market risk benefits liabilities, net 222,437 222,437 — — 222,437 December 31, 2023 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 7,108,188 7,108,188 — 6,596,362 511,826 Debt securities, trading 1,046,856 1,046,856 — 900,835 146,021 Cash and cash equivalents 482,758 482,758 482,758 — — Mortgage loans 474,133 433,695 — — 433,695 Real estate 27,134 47,867 — — 47,867 Policy loans 66,602 87,086 — — 87,086 Other loans 37,906 36,985 — — 36,985 Derivatives, index options 85,158 85,158 — — 85,158 Equity securities 24,098 24,098 20,638 3,460 — Other investments 4,318 4,597 — — 4,597 LIABILITIES Deferred annuity contracts $ 4,871,141 3,307,065 — — 3,307,065 Immediate annuity and supplemental contracts 353,868 357,196 — — 357,196 Market risk benefits liabilities, net 242,585 242,585 — — 242,585 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, respectively. March 31, 2024 Asset Derivatives Liability Derivatives Balance Fair Balance Fair (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 114,669 Fixed-index products Universal life and annuity contracts $ 441,890 Embedded derivative on reinsurance contract Funds withheld liability (280,244) Total $ 114,669 $ 161,646 December 31, 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 $ 85,158 Fixed-index products Universal life and annuity contracts $ 398,126 Embedded derivative on reinsurance contract Funds withheld liability (280,385) Total $ 85,158 $ 117,741 |
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 March 31, 2024 and 2023. March 31, March 31, Derivatives Not Designated Location of Gain Amount of Gain or (In thousands) Equity index options Net investment income $ 38,407 2,933 Fixed-index products Universal life and annuity contract interest (52,660) 6,164 Embedded derivative on reinsurance contract Net investment income (141) (28,868) $ (14,394) (19,771) |
Intangibles and Goodwill (Table
Intangibles and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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. March 31, 2024 December 31, 2023 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (964) 2,800 (918) Internally developed software 7 3,800 (2,805) 3,800 (2,669) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (3,769) 9,600 (3,587) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2024, 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 2024 $ 547 2025 730 2026 232 2027 187 2028 187 Thereafter 948 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows: March 31, December 31, 2024 2023 (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) | 3 Months Ended |
Mar. 31, 2024 agreement | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of funds withheld coinsurance agreements | 2 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Earnings before Federal income taxes | $ 93,278 | $ 15,295 |
Federal income taxes | 19,670 | 2,991 |
Net earnings | 73,608 | 12,304 |
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 (losses) gains | (8) | 67 |
Earnings before Federal income taxes | (8) | 67 |
Federal income taxes | (2) | 14 |
Net earnings | $ (6) | $ 53 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Nov. 06, 2023 | Oct. 08, 2023 | |
NWLIC | |||||
Dividends Payable [Line Items] | |||||
Percentage of statutory surplus (percent) | 10% | ||||
Maximum dividend payment which may be paid without prior approval | $ 70,500,000 | ||||
NWLIC | Dividend Paid | |||||
Dividends Payable [Line Items] | |||||
Dividends | 0 | $ 0 | |||
NWLIC | Dividend Declared | |||||
Dividends Payable [Line Items] | |||||
Dividends | $ 0 | 0 | |||
Ozark National Life Insurance Company | |||||
Dividends Payable [Line Items] | |||||
Percentage of statutory surplus (percent) | 10% | ||||
Maximum dividend payment which may be paid without prior approval | $ 24,300,000 | ||||
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 amount | $ 5,600,000 | ||||
NIS Financial Services Inc | Dividend Paid | |||||
Dividends Payable [Line Items] | |||||
Dividends | 0 | 12,000,000 | |||
NIS Financial Services Inc | Dividend Declared | |||||
Dividends Payable [Line Items] | |||||
Dividends | $ 0 | 12,000,000 | |||
S. USA Life Insurance Company, Inc. | National Western Life Insurance Group, Inc | |||||
Dividends Payable [Line Items] | |||||
Conversion right for each outstanding share (in usd per share) | $ 500 | $ 500 | |||
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 | |||
Class B | |||||
Dividends Payable [Line Items] | |||||
Common stock, shares outstanding (in shares) | 200,000 | 200,000 | 200,000 | ||
Portion of the Board of Directors that can be elected by Class A Common Stock holders (percent) | 33.3333% | ||||
Percentage limit on cash or in-kind dividends paid on Class A Common Stock available to Class B Common Stock (percent) | 50% | ||||
Dividends | $ 0 | 0 | |||
Class B | S. USA Life Insurance Company, Inc. | 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] | |||||
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 | |||
Dividends | $ 0 | $ 0 | |||
Class A | S. USA Life Insurance Company, Inc. | 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 (percent) | 99% | ||||
Related Party | Class B | Moody Revocable Trust | |||||
Dividends Payable [Line Items] | |||||
Common stock, percentage ownership (percent) | 5.45% |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) class_of_stock $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | |
Earnings Per Share [Abstract] | ||
Number of classes of common stock | class_of_stock | 2 | |
Share-based compensation awards outstanding that could be redeemed for shares of common stock (shares) | shares | 0 | |
Numerator for Basic and Diluted Earnings Per Share: | ||
Net earnings | $ 73,608 | $ 12,304 |
Undistributed earnings | 73,608 | 12,304 |
Allocation of net earnings: | ||
Undistributed earnings | 73,608 | 12,304 |
Net earnings | 73,608 | 12,304 |
Class A | ||
Numerator for Basic and Diluted Earnings Per Share: | ||
Net earnings | 71,526 | 11,956 |
Dividends | 0 | 0 |
Undistributed earnings | 71,526 | 11,956 |
Allocation of net earnings: | ||
Dividends | 0 | 0 |
Undistributed earnings | 71,526 | 11,956 |
Net earnings | $ 71,526 | $ 11,956 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | shares | 3,436,000 | 3,436,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 3,436,000 | 3,436,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 20.82 | $ 3.48 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 20.82 | $ 3.48 |
Class B | ||
Numerator for Basic and Diluted Earnings Per Share: | ||
Net earnings | $ 2,082 | $ 348 |
Dividends | 0 | 0 |
Undistributed earnings | 2,082 | 348 |
Allocation of net earnings: | ||
Dividends | 0 | 0 |
Undistributed earnings | 2,082 | 348 |
Net earnings | $ 2,082 | $ 348 |
Denominator: | ||
Basic earnings per share - weighted-average shares (in shares) | shares | 200,000 | 200,000 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 200,000 | 200,000 |
Basic earnings per share (in dollars per share) | $ / shares | $ 10.41 | $ 1.74 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 10.41 | $ 1.74 |
Deferred Transaction Costs - De
Deferred Transaction Costs - Deferred Policy Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balances of and changes in DPAC | ||
Balance, beginning of period | $ 628,673 | |
Balance, end of period | 619,967 | $ 654,639 |
Deferred policy acquisition costs | 619,967 | 654,639 |
Domestic traditional life | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 2,899 | 3,159 |
Capitalization additions | 3 | 3 |
Amortization | (65) | (72) |
Experience adjustment | 0 | 0 |
Balance, end of period | 2,837 | 3,090 |
Deferred policy acquisition costs | 2,837 | 3,090 |
Domestic universal life | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 180,234 | 176,034 |
Capitalization additions | 3,953 | 3,452 |
Amortization | (3,326) | (3,094) |
Experience adjustment | 0 | 0 |
Balance, end of period | 180,861 | 176,392 |
Deferred policy acquisition costs | 180,861 | 176,392 |
International traditional life | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 9,874 | 11,151 |
Capitalization additions | 0 | 0 |
Amortization | (267) | (292) |
Experience adjustment | 0 | 0 |
Balance, end of period | 9,607 | 10,859 |
Deferred policy acquisition costs | 9,607 | 10,859 |
International universal life | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 138,031 | 152,287 |
Capitalization additions | 90 | 158 |
Amortization | (3,468) | (3,792) |
Experience adjustment | 0 | 0 |
Balance, end of period | 134,653 | 148,653 |
Deferred policy acquisition costs | 134,653 | 148,653 |
Annuities excl. SPIAs WLC | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 279,637 | 306,489 |
Capitalization additions | 1,788 | 2,077 |
Amortization | (8,103) | (8,582) |
Experience adjustment | 0 | 0 |
Balance, end of period | 273,322 | 299,984 |
Deferred policy acquisition costs | 273,322 | 299,984 |
ONL & Affiliates | ||
Balances of and changes in DPAC | ||
Balance, beginning of period | 17,998 | 14,762 |
Capitalization additions | 926 | 1,103 |
Amortization | (237) | (204) |
Experience adjustment | 0 | 0 |
Balance, end of period | 18,687 | 15,661 |
Deferred policy acquisition costs | $ 18,687 | $ 15,661 |
Deferred Transaction Costs - _2
Deferred Transaction Costs - Deferred Sales Inducements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balances of and changes in DSI | ||
Balance, beginning of year | $ 70,950 | $ 85,303 |
Capitalizations | (1,930) | (939) |
Amortization expense | (1,837) | (2,360) |
In force ceded | 0 | 0 |
Experience adjustment | 0 | 0 |
Balance, end of period | $ 67,183 | $ 82,004 |
Deferred Transaction Costs - Va
Deferred Transaction Costs - Value of Business Acquired (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balances of and changes in VOBA | ||
Balance, beginning of period | $ 129,905 | $ 138,495 |
Amortization | (2,078) | (2,213) |
Experience adjustment | 0 | 0 |
Balance as of end of period | $ 127,827 | $ 136,282 |
Deferred Transaction Costs - Es
Deferred Transaction Costs - Estimated Future Amortization of VOBA (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Deferred Charges, Insurers [Abstract] | |
Remainder of 2024 | $ 6,077 |
2025 | 7,743 |
2026 | 7,331 |
2027 | 6,945 |
2028 | $ 6,578 |
Deferred Transaction Costs - Co
Deferred Transaction Costs - Cost of Reinsurance (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Balances of and changes in COR | ||
Balance as of end of period | $ 65,042 | $ 75,303 |
Cost of reinsurance | 65,042 | 75,303 |
SPIAs with life contingencies | ||
Balances of and changes in COR | ||
Balance, beginning of period | 11,156 | 11,897 |
Additions | 0 | 0 |
Amortization | (162) | (446) |
Experience Adjustment | 0 | 0 |
Balance as of end of period | 10,994 | 11,451 |
Cost of reinsurance | 10,994 | 11,451 |
Annuities excl. SPIAs WLC | ||
Balances of and changes in COR | ||
Balance, beginning of period | 56,781 | 66,431 |
Additions | 0 | 0 |
Amortization | (2,733) | (2,579) |
Experience Adjustment | 0 | 0 |
Balance as of end of period | 54,048 | 63,852 |
Cost of reinsurance | $ 54,048 | $ 63,852 |
Policyholder Obligations - Liab
Policyholder Obligations - Liability for Policyholders' Account Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | $ 6,900,491 | |
Balance, end of period | 6,729,842 | $ 7,503,656 |
Liability for policyholder account balances | 6,729,842 | 7,503,656 |
Domestic universal life | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 1,454,356 | 1,420,569 |
Issuances | 0 | |
Premiums received | 29,416 | 27,587 |
Policy charges | (17,054) | (16,441) |
Surrenders and withdrawals | (12,933) | (14,361) |
Benefit payments | (8,279) | (8,189) |
Interest credited | 19,438 | 3,267 |
Change in embedded derivative | 14,178 | 13,219 |
Change in unearned revenue reserve | 3,092 | 411 |
Other | (2,424) | 313 |
Balance, end of period | 1,479,790 | 1,426,375 |
Less reinsurance recoverable | 0 | 0 |
Ending balance, net of reinsurance | $ 1,479,790 | $ 1,426,375 |
Weighted-average crediting rate | 6.34% | 0.98% |
Net amount at risk | $ 1,557 | $ 1,621 |
Cash surrender value | 1,239,802 | 1,211,837 |
Liability for policyholder account balances | 1,479,790 | 1,426,375 |
International universal life | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 490,603 | 563,998 |
Issuances | 0 | |
Premiums received | 8,057 | 10,196 |
Policy charges | (16,687) | (19,656) |
Surrenders and withdrawals | (14,050) | (11,000) |
Benefit payments | (504) | (846) |
Interest credited | 5,152 | 2,249 |
Change in embedded derivative | 2,435 | 1,321 |
Change in unearned revenue reserve | (182) | (46) |
Other | 310 | 125 |
Balance, end of period | 475,134 | 546,341 |
Less reinsurance recoverable | 0 | 0 |
Ending balance, net of reinsurance | $ 475,134 | $ 546,341 |
Weighted-average crediting rate | 4.37% | 1.53% |
Net amount at risk | $ 5,973 | $ 6,910 |
Cash surrender value | 452,178 | 522,501 |
Liability for policyholder account balances | 475,134 | 546,341 |
Annuities excl. SPIAs WLC | ||
Policyholder Account Balance [Roll Forward] | ||
Balance, beginning of period | 4,955,532 | 5,677,218 |
Issuances | 0 | |
Premiums received | 24,296 | 34,263 |
Policy charges | (7,294) | (7,500) |
Surrenders and withdrawals | (156,174) | (129,363) |
Benefit payments | (38,411) | (53,150) |
Interest credited | 14,146 | 13,857 |
Change in embedded derivative | (9,122) | 2,414 |
Change in unearned revenue reserve | 0 | 0 |
Other | (8,055) | (6,799) |
Balance, end of period | 4,774,918 | 5,530,940 |
Less reinsurance recoverable | (1,065,753) | (1,211,421) |
Ending balance, net of reinsurance | $ 3,709,165 | $ 4,319,519 |
Weighted-average crediting rate | 1.11% | 0.93% |
Net amount at risk | $ 1,241,261 | $ 1,162,927 |
Cash surrender value | 4,558,423 | 5,201,886 |
Liability for policyholder account balances | $ 4,774,918 | $ 5,530,940 |
Policyholder Obligations - Acco
Policyholder Obligations - Account Balances by Guaranteed Minimum Interest Rates (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Mar. 31, 2023 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | $ 3,260,378 | $ 3,652,095 |
Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 1,746,496 | 2,158,440 |
2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 641,277 | 597,968 |
3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 496,631 | 497,078 |
4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 375,974 | 398,609 |
At Guaranteed Minimum | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 2,956,910 | 3,307,459 |
At Guaranteed Minimum | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 1,629,149 | 1,977,043 |
At Guaranteed Minimum | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 502,653 | 478,429 |
At Guaranteed Minimum | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 449,173 | 453,414 |
At Guaranteed Minimum | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 375,935 | 398,573 |
1-50 Basis Points Above | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 45,116 | 51,240 |
1-50 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 2,719 | 2,291 |
1-50 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 6,482 | 8,092 |
1-50 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 35,915 | 40,857 |
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 | 110,741 | 128,390 |
51-150 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 14,120 | 38,739 |
51-150 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 85,106 | 86,871 |
51-150 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 11,515 | 2,780 |
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 | 147,611 | 165,006 |
Greater Than 150 Basis Points Above | Less than 2.00% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 100,508 | 140,367 |
Greater Than 150 Basis Points Above | 2.00% - 2.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 47,036 | 24,576 |
Greater Than 150 Basis Points Above | 3.00% - 3.99% | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | 28 | 27 |
Greater Than 150 Basis Points Above | 4.00% and greater | ||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||
Policyholder account balance | $ 39 | $ 36 |
Policyholder Obligations - Li_2
Policyholder Obligations - Liability for Additional Insurance Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||
Interest accrual | $ 2,066 | $ 651 | ||
Balance, end of period | 161,319 | 150,688 | ||
Gross Assessments | 23,997 | 27,396 | ||
Interest Expense | 2,066 | 651 | ||
Domestic universal life | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||
Balance, beginning of period | 72,241 | 63,804 | ||
Beginning balance before shadow reserve adjustments | 72,241 | 63,804 | ||
Effect of changes in cash flow assumptions | $ 0 | $ 0 | ||
Effect of actual variances from expected experience | 1,158 | 4,693 | ||
Adjusted beginning of period balance | 73,399 | 68,497 | ||
Issuances | 0 | 0 | ||
Interest accrual | 1,106 | 184 | ||
Assessments collected | 5,390 | 5,696 | ||
Benefit payments | (5,502) | (9,001) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | (2) | (1) | ||
Ending balance before shadow reserve adjustments | 74,391 | 65,375 | ||
Effect of shadow reserve adjustments | 0 | 0 | ||
Balance, end of period | 74,391 | 65,375 | ||
Less reinsurance recoverable, end of period | 0 | 0 | ||
Net additional liability, after reinsurance recoverable | 74,391 | 65,375 | ||
Gross Assessments | 15,180 | 16,790 | ||
Interest Expense | 1,106 | 184 | ||
International universal life | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||
Balance, beginning of period | 49,886 | 46,402 | ||
Beginning balance before shadow reserve adjustments | 49,886 | 46,402 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (1,546) | (771) | ||
Adjusted beginning of period balance | 48,340 | 45,631 | ||
Issuances | 0 | 0 | ||
Interest accrual | 618 | 93 | ||
Assessments collected | 2,209 | 2,560 | ||
Benefit payments | (1,259) | (1,360) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | (270) | (423) | ||
Ending balance before shadow reserve adjustments | 49,638 | 46,501 | ||
Effect of shadow reserve adjustments | 0 | 0 | ||
Balance, end of period | 49,638 | 46,501 | ||
Less reinsurance recoverable, end of period | 0 | 0 | ||
Net additional liability, after reinsurance recoverable | 49,638 | 46,501 | ||
Gross Assessments | 8,811 | 10,351 | ||
Interest Expense | 618 | 93 | ||
Annuities | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||
Balance, beginning of period | 37,310 | 38,502 | ||
Beginning balance before shadow reserve adjustments | 37,310 | 38,502 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (98) | 497 | ||
Adjusted beginning of period balance | $ 37,212 | $ 38,999 | ||
Issuances | 0 | 0 | ||
Interest accrual | 342 | 374 | ||
Assessments collected | 92 | 3 | ||
Benefit payments | (369) | (552) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | 13 | (12) | ||
Ending balance before shadow reserve adjustments | 37,290 | 38,812 | ||
Effect of shadow reserve adjustments | 0 | 0 | ||
Balance, end of period | 37,290 | 38,812 | ||
Less reinsurance recoverable, end of period | (37,273) | (38,812) | ||
Net additional liability, after reinsurance recoverable | 17 | 0 | ||
Gross Assessments | 6 | 255 | ||
Interest Expense | 342 | 374 | ||
Annuities | ||||
Additional Liability, Long-Duration Insurance [Roll Forward] | ||||
Balance, end of period | $ 37,290 | $ 38,812 |
Policyholder Obligations - Li_3
Policyholder Obligations - Liability for Future Policy Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Present value of expected future policy benefits | ||||
Liability for future policy benefits | $ 899,544 | $ 930,147 | $ 925,787 | |
Gross Assessments | 23,543 | 22,714 | ||
Interest Expense | 9,660 | 9,806 | ||
Expected Future Gross Premiums | 1,572,723 | 1,609,871 | ||
Expected Future Benefit Payments | 2,838,102 | 2,867,527 | ||
Domestic traditional life | ||||
Present value of expected net premiums | ||||
Balance, beginning of period | (3,608) | 260 | ||
Beginning balance at original discount rate | (2,878) | 660 | ||
Effect of changes in cash flow assumptions | 0 | $ 0 | ||
Effect of actual variances from expected experience | (40) | 8 | ||
Adjusted beginning of period balance | (2,918) | 668 | ||
Issuances | 0 | 0 | ||
Interest accrual | (65) | (3) | ||
Net premium collected | 198 | (59) | ||
Ending balance at original discount rate | (2,785) | 606 | ||
Effect of changes in discount rate assumptions | (689) | (415) | ||
Balance, end of period | (3,474) | 191 | ||
Present value of expected future policy benefits | ||||
Balance, beginning of period | 52,358 | 70,165 | ||
Beginning balance at original discount rate | 45,030 | 62,865 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (9) | (359) | ||
Adjusted beginning of period balance | 45,021 | 62,506 | ||
Issuances | 0 | 0 | ||
Interest accrual | 653 | 962 | ||
Benefit payments | (1,370) | (1,016) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | 126 | 85 | ||
Ending balance at original discount rate | 44,430 | 62,537 | ||
Effect of changes in discount rate assumptions | 5,774 | 9,133 | ||
Balance, end of period | 50,204 | 71,670 | ||
Net liability for future policy benefits | 53,678 | 71,479 | ||
Less reinsurance recoverable | 0 | (13,160) | ||
Net liability for future policy benefits, after reinsurance | 53,678 | 58,319 | ||
Liability for future policy benefits | 53,678 | 71,479 | ||
Gross Assessments | 439 | 749 | ||
Interest Expense | 718 | 965 | ||
Expected Future Gross Premiums | 26,422 | 32,336 | ||
Expected Future Benefit Payments | 79,536 | 105,418 | ||
International traditional life | ||||
Present value of expected net premiums | ||||
Balance, beginning of period | 35,323 | 33,998 | ||
Beginning balance at original discount rate | 36,038 | 35,907 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | 40 | (915) | ||
Adjusted beginning of period balance | 36,078 | 34,992 | ||
Issuances | 0 | 0 | ||
Interest accrual | 384 | 368 | ||
Net premium collected | (847) | (880) | ||
Ending balance at original discount rate | 35,615 | 34,480 | ||
Effect of changes in discount rate assumptions | (1,669) | (770) | ||
Balance, end of period | 33,946 | 33,710 | ||
Present value of expected future policy benefits | ||||
Balance, beginning of period | 100,948 | 99,168 | ||
Beginning balance at original discount rate | 99,868 | 100,929 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (77) | (2,793) | ||
Adjusted beginning of period balance | 99,791 | 98,136 | ||
Issuances | 0 | 0 | ||
Interest accrual | 1,356 | 1,367 | ||
Benefit payments | (1,737) | (1,485) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | 449 | 747 | ||
Ending balance at original discount rate | 99,859 | 98,765 | ||
Effect of changes in discount rate assumptions | (1,370) | 1,190 | ||
Balance, end of period | 98,489 | 99,955 | ||
Net liability for future policy benefits | 64,543 | 66,245 | ||
Less reinsurance recoverable | (149) | (553) | ||
Net liability for future policy benefits, after reinsurance | 64,394 | 65,692 | ||
Liability for future policy benefits | 64,543 | 66,245 | ||
Gross Assessments | 2,376 | 2,647 | ||
Interest Expense | 972 | 999 | ||
Expected Future Gross Premiums | 157,291 | 158,329 | ||
Expected Future Benefit Payments | 216,623 | 216,235 | ||
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 | ||
Effect of changes in discount rate assumptions | 0 | 0 | ||
Balance, end of period | 0 | 0 | ||
Present value of expected future policy benefits | ||||
Balance, beginning of period | 193,180 | 191,817 | ||
Beginning balance at original discount rate | 209,910 | 215,542 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | 969 | 1,000 | ||
Adjusted beginning of period balance | 210,879 | 216,542 | ||
Issuances | 2,982 | 1,775 | ||
Interest accrual | 1,775 | 1,747 | ||
Benefit payments | (5,265) | (5,707) | ||
Derecognition (lapses and withdrawals) | (1,656) | (1,814) | ||
Other | (269) | 96 | ||
Ending balance at original discount rate | 208,446 | 212,639 | ||
Effect of changes in discount rate assumptions | (20,469) | (18,123) | ||
Balance, end of period | 187,977 | 194,516 | ||
Net liability for future policy benefits | 187,977 | 194,516 | ||
Less reinsurance recoverable | (155,041) | (164,270) | ||
Net liability for future policy benefits, after reinsurance | 32,936 | 30,246 | ||
Liability for future policy benefits | 187,977 | 194,516 | ||
Gross Assessments | 1,915 | 81 | ||
Interest Expense | 1,775 | 1,747 | ||
Expected Future Gross Premiums | 0 | 0 | ||
Expected Future Benefit Payments | 277,925 | 282,340 | ||
ONL & Affiliates | ||||
Present value of expected net premiums | ||||
Balance, beginning of period | 409,519 | 402,745 | ||
Beginning balance at original discount rate | 485,238 | 494,962 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (1,693) | (677) | ||
Adjusted beginning of period balance | 483,545 | 494,285 | ||
Issuances | 2,181 | 2,930 | ||
Interest accrual | 3,949 | 3,997 | ||
Net premium collected | (9,574) | (9,788) | ||
Ending balance at original discount rate | 480,101 | 491,424 | ||
Effect of changes in discount rate assumptions | (82,850) | (80,359) | ||
Balance, end of period | 397,251 | 411,065 | ||
Present value of expected future policy benefits | ||||
Balance, beginning of period | 1,020,535 | 975,999 | ||
Beginning balance at original discount rate | 1,291,686 | 1,291,914 | ||
Effect of changes in cash flow assumptions | 0 | 0 | ||
Effect of actual variances from expected experience | (1,648) | (463) | ||
Adjusted beginning of period balance | $ 1,290,038 | $ 1,291,451 | ||
Issuances | 2,208 | 2,846 | ||
Interest accrual | 10,144 | 10,092 | ||
Benefit payments | (14,593) | (15,344) | ||
Derecognition (lapses and withdrawals) | 0 | 0 | ||
Other | 0 | (38) | ||
Ending balance at original discount rate | 1,287,797 | 1,289,007 | ||
Effect of changes in discount rate assumptions | (297,200) | (280,035) | ||
Balance, end of period | 990,597 | 1,008,972 | ||
Net liability for future policy benefits | 593,346 | 597,907 | ||
Less reinsurance recoverable | (25,799) | (26,436) | ||
Net liability for future policy benefits, after reinsurance | 567,547 | 571,471 | ||
Liability for future policy benefits | 593,346 | 597,907 | ||
Gross Assessments | 18,813 | 19,237 | ||
Interest Expense | 6,195 | 6,095 | ||
Expected Future Gross Premiums | 1,389,010 | 1,419,206 | ||
Expected Future Benefit Payments | $ 2,264,018 | $ 2,263,534 |
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) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Domestic traditional life | ||
Mortality: | ||
Actual Experience | 1.60% | 1.86% |
Expected Experience | 1.25% | 2.05% |
Lapses: | ||
Actual Experience | 6.43% | 5.10% |
Expected Experience | 6.67% | 6.18% |
Domestic universal life | ||
Mortality: | ||
Actual Experience | 1.83% | 2.12% |
Expected Experience | 2.11% | 1.93% |
Lapses: | ||
Actual Experience | 4.40% | 4.71% |
Expected Experience | 3.49% | 3.37% |
International traditional life | ||
Mortality: | ||
Actual Experience | 0.30% | 0.09% |
Expected Experience | 0.43% | 0.39% |
Lapses: | ||
Actual Experience | 9.48% | 9.26% |
Expected Experience | 5.79% | 7.74% |
International universal life | ||
Mortality: | ||
Actual Experience | 0.27% | 0.29% |
Expected Experience | 0.29% | 0.26% |
Lapses: | ||
Actual Experience | 13.06% | 11% |
Expected Experience | 6.86% | 7.06% |
SPIAs with life contingencies | ||
Mortality: | ||
Actual Experience | 4.41% | 3.27% |
Expected Experience | 3.24% | 3.08% |
Annuities excl. SPIAs WLC | ||
Mortality: | ||
Actual Experience | 2.72% | 3.55% |
Expected Experience | 2.67% | 2.68% |
Lapses: | ||
Actual Experience | 7.65% | 4.60% |
Expected Experience | 4.55% | 4.15% |
ONL & Affiliates | ||
Mortality: | ||
Actual Experience | 1.08% | 0.78% |
Expected Experience | 0.89% | 0.74% |
Lapses: | ||
Actual Experience | 4.63% | 3.96% |
Expected Experience | 4.43% | 4.69% |
Policyholder Obligations - Weig
Policyholder Obligations - Weighted Average Durations and Weighted Average Interest Rates (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Domestic traditional life | ||
Additional Insurance Liability And Liability for Future Policy Benefit [Line Items] | ||
Weighted-average durations | 8 years | 8 years |
Interest Accretion Rate | 6.75% | 6.80% |
Current Discount Rate | 5% | 4.65% |
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 | 6.34% | 0.98% |
Current Discount Rate | 6.34% | 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 | 5.13% | 5.13% |
Current Discount Rate | 5% | 4.65% |
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 | 4.37% | 1.53% |
Current Discount Rate | 4.37% | 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 | 3.45% | 3.31% |
Current Discount Rate | 5% | 4.65% |
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 | 1.11% | 0.93% |
Current Discount Rate | 1.11% | 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% | 3.24% |
Current Discount Rate | 5.40% | 5.20% |
Market Risk Benefits - Balances
Market Risk Benefits - Balances of and Changes in Market Risk Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Guaranteed Minimum Withdrawal Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ 174,375 | $ 97,552 |
Balance, beginning of period, before effect of changes in instrument-specific credit risk | 174,375 | 97,552 |
Issuances | 97 | 22 |
Interest accrual | 0 | 0 |
Attributed fees collected | 1,058 | 6,771 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | (18,051) | 36,147 |
Actual policyholder behavior different from expected behavior | (940) | (679) |
Effect of changes in future expected policyholder behavior | 0 | 0 |
Effect of changes in other future expected assumptions | 0 | 0 |
Balance, end of period, before effect of changes in instrument-specific credit risk | 156,539 | 139,813 |
Effect of changes in the instrument-specific credit risk | 0 | 0 |
Balance, end of period | 156,539 | 139,813 |
Less reinsurance recoverable, end of period | (6,188) | (4,167) |
Balance, end of period, net of reinsurance | 150,351 | 135,646 |
Net amount at risk | $ 1,116,647 | $ 1,035,476 |
Weighted-average attained age of contract holders | 70 years | 69 years 2 months 12 days |
Guaranteed Annuitization Benefits | ||
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of period | $ 68,210 | $ 69,466 |
Balance, beginning of period, before effect of changes in instrument-specific credit risk | 68,210 | 69,466 |
Issuances | 0 | 0 |
Interest accrual | 0 | 0 |
Attributed fees collected | 0 | 0 |
Benefit payments | 0 | 0 |
Effect of changes in interest rates | (2,311) | 2,078 |
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 period, before effect of changes in instrument-specific credit risk | 65,899 | 71,544 |
Effect of changes in the instrument-specific credit risk | 0 | 0 |
Balance, end of period | 65,899 | 71,544 |
Less reinsurance recoverable, end of period | (66,250) | (71,946) |
Balance, end of period, net of reinsurance | (351) | (402) |
Net amount at risk | $ 124,613 | $ 127,450 |
Weighted-average attained age of contract holders | 68 years 2 months 12 days | 67 years 4 months 24 days |
Market Risk Benefits - Reconcil
Market Risk Benefits - Reconciliation Of The Gross Balances In an Asset or Liability Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Market Risk Benefit [Line Items] | |||
Asset | $ 39,474 | $ 30,819 | $ 41,759 |
Liability | 261,912 | $ 273,404 | 253,116 |
Net liability | 222,438 | 211,357 | |
Guaranteed minimum withdrawal benefit | |||
Market Risk Benefit [Line Items] | |||
Asset | 39,474 | 41,759 | |
Liability | 196,013 | 181,572 | |
Net liability | 156,539 | 139,813 | |
Guaranteed annuitization benefits | |||
Market Risk Benefit [Line Items] | |||
Asset | 0 | 0 | |
Liability | 65,899 | 71,544 | |
Net liability | $ 65,899 | $ 71,544 |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 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 | $ 0 | |
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 | $ 0 | |
Postretirement Employment Plans Other Than Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Company contributions to plan | 0 | |
Company expected contributions to plans in fiscal year | $ 100,000 |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Components of Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Pension Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 29 | $ 27 |
Interest cost | 180 | 199 |
Expected return on plan assets | (364) | (310) |
Amortization of net loss | 0 | 70 |
Net periodic benefit cost (credit) | (155) | (14) |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 388 | 204 |
Interest cost | 568 | 408 |
Amortization of prior service cost | 15 | 15 |
Amortization of net loss | 614 | 0 |
Net periodic benefit cost (credit) | 1,585 | 627 |
Postretirement Employment Plans Other Than Pension | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | 8 | 61 |
Amortization of net loss | (279) | 0 |
Net periodic benefit cost (credit) | $ (271) | $ 61 |
Segment and Other Operating I_3
Segment and Other Operating Information - Balance Sheet Items (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Segment Reporting Information [Line Items] | |||
Market risk benefit assets | $ 39,474 | $ 30,819 | $ 41,759 |
Total segment assets | 12,116,444 | 12,250,615 | |
Market risk benefits liability, at fair value | 261,912 | 273,404 | 253,116 |
Other policyholder liabilities | 3,260,378 | $ 3,652,095 | |
Funds withheld liability | 1,161,625 | 1,195,413 | |
Total segment assets | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 880,019 | 897,465 | |
Market risk benefit assets | 39,474 | 30,819 | |
Total segment assets | 11,485,825 | 11,595,716 | |
Future policyholder obligations | 7,790,705 | 7,985,715 | |
Market risk benefits liability, at fair value | 261,912 | 273,404 | |
Other policyholder liabilities | 148,000 | 143,766 | |
Funds withheld liability | 1,161,625 | 1,195,413 | |
Total segment assets | Domestic Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 183,697 | 183,132 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 1,953,470 | 1,918,435 | |
Future policyholder obligations | 1,607,103 | 1,581,808 | |
Market risk benefits liability, at fair value | 0 | 0 | |
Other policyholder liabilities | 30,378 | 24,406 | |
Funds withheld liability | 0 | 0 | |
Total segment assets | International Life Insurance | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 144,261 | 147,906 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 817,975 | 828,186 | |
Future policyholder obligations | 590,071 | 606,870 | |
Market risk benefits liability, at fair value | 0 | 0 | |
Other policyholder liabilities | 8,077 | 13,652 | |
Funds withheld liability | 0 | 0 | |
Total segment assets | Annuities | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 405,548 | 418,525 | |
Market risk benefit assets | 39,474 | 30,819 | |
Total segment assets | 7,359,228 | 7,501,928 | |
Future policyholder obligations | 5,000,185 | 5,186,021 | |
Market risk benefits liability, at fair value | 261,912 | 273,404 | |
Other policyholder liabilities | 94,982 | 91,456 | |
Funds withheld liability | 1,161,625 | 1,195,413 | |
Total segment assets | ONL & Affiliates | |||
Segment Reporting Information [Line Items] | |||
Deferred transaction costs | 146,513 | 147,902 | |
Market risk benefit assets | 0 | 0 | |
Total segment assets | 1,017,758 | 1,012,445 | |
Future policyholder obligations | 593,346 | 611,016 | |
Market risk benefits liability, at fair value | 0 | 0 | |
Other policyholder liabilities | 14,563 | 14,252 | |
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 | 337,394 | 334,722 | |
Future policyholder obligations | 0 | 0 | |
Market risk benefits liability, at fair value | 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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | $ 57,228 | $ 56,933 |
Net investment income | 134,361 | 89,909 |
Other revenues | 5,985 | 5,705 |
Total revenues | 197,566 | 152,614 |
Life and other policy benefits | 25,519 | 24,190 |
Market risk benefits expense | (16,417) | 36,960 |
Amortization of deferred transaction costs | 20,439 | 21,274 |
Universal life and annuity contract interest | 41,611 | 30,212 |
Other operating expenses | 33,136 | 24,683 |
Federal income taxes | 19,670 | 2,991 |
Net earnings | 73,608 | 12,304 |
Total segment assets | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 57,228 | 56,933 |
Net investment income | 134,361 | 89,909 |
Other revenues | 5,985 | 5,705 |
Total revenues | 197,574 | 152,547 |
Life and other policy benefits | 25,519 | 24,190 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | (16,417) | 36,960 |
Amortization of deferred transaction costs | 20,439 | 21,274 |
Universal life and annuity contract interest | 41,611 | 30,212 |
Other operating expenses | 33,136 | 24,683 |
Federal income taxes | 19,672 | 2,977 |
Total expenses | 123,960 | 140,296 |
Net earnings | 73,614 | 12,251 |
Total segment assets | Domestic Life Insurance | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 13,223 | 13,476 |
Net investment income | 35,362 | 17,979 |
Other revenues | 5 | 0 |
Total revenues | 48,590 | 31,455 |
Life and other policy benefits | 2,635 | 2,509 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | 0 | 0 |
Amortization of deferred transaction costs | 3,391 | 3,166 |
Universal life and annuity contract interest | 31,649 | 13,138 |
Other operating expenses | 5,964 | 4,421 |
Federal income taxes | 1,047 | 1,528 |
Total expenses | 44,686 | 24,762 |
Net earnings | 3,904 | 6,693 |
Total segment assets | International Life Insurance | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 19,336 | 20,065 |
Net investment income | 11,757 | 5,398 |
Other revenues | 27 | 2 |
Total revenues | 31,120 | 25,465 |
Life and other policy benefits | 2,472 | 1,878 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | 0 | 0 |
Amortization of deferred transaction costs | 3,735 | 4,084 |
Universal life and annuity contract interest | 9,761 | 3,812 |
Other operating expenses | 6,090 | 3,726 |
Federal income taxes | 1,917 | 2,224 |
Total expenses | 23,975 | 15,724 |
Net earnings | 7,145 | 9,741 |
Total segment assets | Annuities | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 6,043 | 4,240 |
Net investment income | 71,235 | 53,081 |
Other revenues | 1,734 | 2,016 |
Total revenues | 79,012 | 59,337 |
Life and other policy benefits | 4,753 | 5,000 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | (16,417) | 36,960 |
Amortization of deferred transaction costs | 10,998 | 11,607 |
Universal life and annuity contract interest | 201 | 13,262 |
Other operating expenses | 14,840 | 10,584 |
Federal income taxes | 13,672 | (3,360) |
Total expenses | 28,047 | 74,053 |
Net earnings | 50,965 | (14,716) |
Total segment assets | ONL & Affiliates | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 18,626 | 19,152 |
Net investment income | 8,802 | 7,918 |
Other revenues | 3,110 | 2,689 |
Total revenues | 30,538 | 29,759 |
Life and other policy benefits | 15,659 | 14,803 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | 0 | 0 |
Amortization of deferred transaction costs | 2,315 | 2,417 |
Universal life and annuity contract interest | 0 | 0 |
Other operating expenses | 4,804 | 4,503 |
Federal income taxes | 1,582 | 1,640 |
Total expenses | 24,360 | 23,363 |
Net earnings | 6,178 | 6,396 |
Total segment assets | All Others | ||
Condensed Consolidated Income Statements | ||
Premiums and contract revenues | 0 | 0 |
Net investment income | 7,205 | 5,533 |
Other revenues | 1,109 | 998 |
Total revenues | 8,314 | 6,531 |
Life and other policy benefits | 0 | 0 |
Policy benefit remeasurement (gain)/loss | 0 | 0 |
Market risk benefits expense | 0 | 0 |
Amortization of deferred transaction costs | 0 | 0 |
Universal life and annuity contract interest | 0 | 0 |
Other operating expenses | 1,438 | 1,449 |
Federal income taxes | 1,454 | 945 |
Total expenses | 2,892 | 2,394 |
Net earnings | $ 5,422 | $ 4,137 |
Segment and Other Operating I_5
Segment and Other Operating Information - Premiums and Other Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting [Abstract] | ||
Premiums and contract revenues | $ 57,228 | $ 56,933 |
Net investment income | 134,361 | 89,909 |
Other revenues | 5,985 | 5,705 |
Realized gains (losses) on investments | (8) | 67 |
Total revenues | $ 197,566 | $ 152,614 |
Segment and Other Operating I_6
Segment and Other Operating Information - Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Federal income taxes | $ 19,670 | $ 2,991 |
Total segment assets | ||
Segment Reporting Information [Line Items] | ||
Federal income taxes | 19,672 | 2,977 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Taxes on realized gains (losses) on investments | $ (2) | $ 14 |
Segment and Other Operating I_7
Segment and Other Operating Information - Net Earnings (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net earnings | $ 73,608 | $ 12,304 |
Total segment assets | ||
Segment Reporting Information [Line Items] | ||
Net earnings | 73,614 | 12,251 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Realized gains (losses) on investments, net of taxes | $ (6) | $ 53 |
Segment and Other Operating I_8
Segment and Other Operating Information - Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 12,116,444 | $ 12,250,615 |
Total segment assets | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | 11,485,825 | 11,595,716 |
Other unallocated assets | ||
Segment Reporting Information [Line Items] | ||
Total condensed consolidated assets | $ 630,619 | $ 654,899 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2016 | Dec. 31, 2023 | Dec. 31, 2022 | Oct. 08, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Term of extension | 10 years | |||||
Grants in the period (in shares) | 0 | 0 | ||||
Liability balance of accrued costs | $ 63,800,000 | $ 64,800,000 | ||||
Agreed upon share price (in dollars per share) | $ 500 | |||||
Total intrinsic value of options exercised | $ 6,600,000 | $ 1,000,000 | ||||
Fair value of vested awards | 0 | 0 | ||||
Cash received from exercise of stock options | 0 | 0 | ||||
Pre-tax compensation cost (benefit) recognized | 5,600,000 | (2,300,000) | ||||
Compensation cost (benefit), tax (benefit) expense | (1,200,000) | $ 500,000 | ||||
Compensation cost related to nonvested options not yet recognized | $ 5,600,000 | |||||
Weighted average period over which the compensation is expected to be recognized | 3 months | |||||
S. USA Life Insurance Company, Inc. | National Western Life Insurance Group, Inc | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Conversion right for each outstanding share (in usd per share) | $ 500 | $ 500 | ||||
Agreed upon share price (in dollars per share) | $ 500 | |||||
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 | 150% | 74.54% | ||||
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 | ||||
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 - Options
Share-Based Payments - Options and Stock Appreciation Rights Outstanding (Details) | 3 Months Ended |
Mar. 31, 2024 $ / 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) | 212,067 |
Exercised (in shares) | (1,574) |
Forfeited (in shares) | 0 |
Granted (in shares) | 0 |
Ending balance (in shares) | 210,493 |
RSUs | |
Liability Awards | |
Beginning balance (in shares) | 14,254 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Granted (in shares) | 0 |
Ending balance (in shares) | 14,254 |
PSUs | |
Liability Awards | |
Beginning balance (in shares) | 18,444 |
Exercised (in shares) | (8,674) |
Forfeited (in shares) | 0 |
Granted (in shares) | 0 |
Ending balance (in shares) | 9,770 |
Share-Based Payments - Exercise
Share-Based Payments - Exercise Range (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding (in shares) | 210,493 |
Number exercisable (in shares) | 117,719 |
SARs | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number outstanding, aggregate intrinsic value | $ | $ 57,373 |
Number exercisable, aggregate intrinsic value | $ | $ 31,410 |
SARs | Exercise Price Range 1 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 216.48 |
Number outstanding (in shares) | 3,529 |
Weighted- Average Remaining Contractual Life | 1 year 10 months 24 days |
Number exercisable (in shares) | 3,529 |
SARs | Exercise Price Range 2 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 311.16 |
Number outstanding (in shares) | 6,745 |
Weighted- Average Remaining Contractual Life | 2 years 10 months 24 days |
Number exercisable (in shares) | 6,745 |
SARs | Exercise Price Range 3 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 334.34 |
Number outstanding (in shares) | 6,277 |
Weighted- Average Remaining Contractual Life | 3 years 8 months 12 days |
Number exercisable (in shares) | 6,277 |
SARs | Exercise Price Range 4 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 303.77 |
Number outstanding (in shares) | 7,233 |
Weighted- Average Remaining Contractual Life | 4 years 8 months 12 days |
Number exercisable (in shares) | 7,233 |
SARs | Exercise Price Range 5 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 252.91 |
Number outstanding (in shares) | 10,642 |
Weighted- Average Remaining Contractual Life | 5 years 8 months 12 days |
Number exercisable (in shares) | 10,642 |
SARs | Exercise Price Range 6 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 192.10 |
Number outstanding (in shares) | 25,002 |
Weighted- Average Remaining Contractual Life | 6 years 8 months 12 days |
Number exercisable (in shares) | 25,002 |
SARs | Exercise Price Range 7 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 218.44 |
Number outstanding (in shares) | 48,720 |
Weighted- Average Remaining Contractual Life | 7 years 8 months 12 days |
Number exercisable (in shares) | 29,037 |
SARs | Exercise Price Range 8 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 220.61 |
Number outstanding (in shares) | 102,345 |
Weighted- Average Remaining Contractual Life | 8 years 8 months 12 days |
Number exercisable (in shares) | 29,254 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Oct. 08, 2023 |
Revolving Credit Facility | ||
Loss Contingencies [Line Items] | ||
Other commitment | $ 0 | |
National Western Life Insurance Group, Inc | S. USA Life Insurance Company, Inc. | ||
Loss Contingencies [Line Items] | ||
Contract termination fee | $ 66.5 | |
Period after termination within which Company enters into a competing proposal or agreement | 12 months | |
New Loans | ||
Loss Contingencies [Line Items] | ||
Other commitment | 13.3 | |
Existing Loans | ||
Loss Contingencies [Line Items] | ||
Other commitment | 2.5 | |
Capital Contributions to Investment Funds | ||
Loss Contingencies [Line Items] | ||
Other commitment | 167.2 | |
Private Placement | ||
Loss Contingencies [Line Items] | ||
Other commitment | $ 0 |
Investments - Investment Gains
Investments - Investment Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Available-for-sale debt securities: | ||
Realized gains on disposal | $ 3 | $ 67 |
Realized losses on disposal | (11) | 0 |
Net realized investment gains (losses) | $ (8) | $ 67 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) investment | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) investment | Mar. 31, 2024 | Mar. 31, 2024 issue | Mar. 31, 2024 security | |
Schedule of Investments [Line Items] | ||||||
Percentage of gain (loss) on bonds due to calls of securities (percent) | 100% | 4.70% | ||||
Proceeds from tender of shares held in Moody Bancshares | $ 50 | $ 1,134 | ||||
Debt securities available for sale | 7,712,847 | $ 7,714,503 | ||||
Proceeds from sale of investment | 0 | 2,038 | ||||
Debt securities, available-for-sale | 7,071,553 | 7,108,188 | ||||
Loans originated during the year | $ 0 | 1,800 | $ 6,800 | |||
Number of mortgage loan | investment | 3 | 3 | ||||
Other long-term investments | $ 311,418 | $ 295,471 | ||||
Mortgage Loan Investment | ||||||
Schedule of Investments [Line Items] | ||||||
Loan investments made by reinsurer | 19,400 | 19,600 | ||||
Real Estate | ||||||
Schedule of Investments [Line Items] | ||||||
Other long-term investments | 27,000 | 27,100 | ||||
Operating income from real estate | 800 | $ 800 | ||||
Ozark National Holdings | ||||||
Schedule of Investments [Line Items] | ||||||
Debt securities, available-for-sale | $ 747,500 | $ 716,000 | ||||
US Treasury Bond Securities | ||||||
Schedule of Investments [Line Items] | ||||||
Increase in 10-year U.S. Treasury bond rate | 0.32% | |||||
Debt Securities | ||||||
Schedule of Investments [Line Items] | ||||||
Gross unrealized losses, number of issues | 983 | 983 | ||||
Gross unrealized losses, percentage of total debt | 90.40% | |||||
Gross unrealized losses, market value as a percent of amortized cost | 91.10% | |||||
Gross unrealized losses, number of securities with maturities of 12 months or greater | security | 911 | |||||
Gross unrealized losses, number of securities with maturities of 12 months or greater percentage | 92.70% | |||||
Debt Securities | External Credit Rating, Investment Grade | ||||||
Schedule of Investments [Line Items] | ||||||
Gross unrealized losses, number of issues | security | 967 |
Investments - Securities Availa
Investments - Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt securities: | ||
Totals before allowance for credit losses | $ 7,712,847 | $ 7,714,503 |
Gross Unrealized Gains | 6,748 | 9,811 |
Gross Unrealized Losses | (648,042) | (616,126) |
Fair Value | 7,071,553 | 7,108,188 |
Allowance for Credit Losses | 0 | 0 |
Fair Value | ||
Less than 12 Months | 374,510 | 224,892 |
12 Months or Greater | 6,241,804 | 6,439,386 |
Total | 6,616,314 | 6,664,278 |
Unrealized Losses | ||
Less than 12 Months | (7,956) | (4,170) |
12 Months or Greater | (640,086) | (611,956) |
Total | (648,042) | (616,126) |
U.S. agencies | ||
Debt securities: | ||
Totals before allowance for credit losses | 12,002 | 12,052 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (187) | (106) |
Fair Value | 11,815 | 11,946 |
Fair Value | ||
Less than 12 Months | 4,707 | 4,823 |
12 Months or Greater | 7,109 | 7,123 |
Total | 11,816 | 11,946 |
Unrealized Losses | ||
Less than 12 Months | (128) | (12) |
12 Months or Greater | (59) | (94) |
Total | (187) | (106) |
U.S. Treasury | ||
Debt securities: | ||
Totals before allowance for credit losses | 2,824 | 2,821 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (95) | (66) |
Fair Value | 2,729 | 2,757 |
Fair Value | ||
Less than 12 Months | 1,014 | 33 |
12 Months or Greater | 1,715 | 1,739 |
Total | 2,729 | 1,772 |
Unrealized Losses | ||
Less than 12 Months | (5) | 0 |
12 Months or Greater | (90) | (66) |
Total | (95) | (66) |
States and political subdivisions | ||
Debt securities: | ||
Totals before allowance for credit losses | 439,710 | 442,455 |
Gross Unrealized Gains | 277 | 661 |
Gross Unrealized Losses | (52,118) | (48,631) |
Fair Value | 387,869 | 394,485 |
Fair Value | ||
Less than 12 Months | 39,299 | 14,228 |
12 Months or Greater | 314,140 | 318,436 |
Total | 353,439 | 332,664 |
Unrealized Losses | ||
Less than 12 Months | (475) | (36) |
12 Months or Greater | (51,643) | (48,595) |
Total | (52,118) | (48,631) |
Foreign governments | ||
Debt securities: | ||
Totals before allowance for credit losses | 62,942 | 62,947 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (15,782) | (14,453) |
Fair Value | 47,160 | 48,494 |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | 47,160 | 48,494 |
Total | 47,160 | 48,494 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | (15,782) | (14,453) |
Total | (15,782) | (14,453) |
Public utilities | ||
Debt securities: | ||
Totals before allowance for credit losses | 545,696 | 556,434 |
Gross Unrealized Gains | 124 | 138 |
Gross Unrealized Losses | (56,104) | (53,306) |
Fair Value | 489,716 | 503,266 |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | 485,883 | 500,674 |
Total | 485,883 | 500,674 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | (56,104) | (53,306) |
Total | (56,104) | (53,306) |
Corporate | ||
Debt securities: | ||
Totals before allowance for credit losses | 5,393,330 | 5,442,342 |
Gross Unrealized Gains | 4,147 | 6,214 |
Gross Unrealized Losses | (444,161) | (413,600) |
Fair Value | 4,953,316 | 5,034,956 |
Fair Value | ||
Less than 12 Months | 141,878 | 116,521 |
12 Months or Greater | 4,554,467 | 4,719,019 |
Total | 4,696,345 | 4,835,540 |
Unrealized Losses | ||
Less than 12 Months | (4,253) | (2,225) |
12 Months or Greater | (439,908) | (411,375) |
Total | (444,161) | (413,600) |
Commercial mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 22,229 | 22,239 |
Gross Unrealized Gains | 31 | 26 |
Gross Unrealized Losses | (1,306) | (1,432) |
Fair Value | 20,954 | 20,833 |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | 15,923 | 15,807 |
Total | 15,923 | 15,807 |
Unrealized Losses | ||
Less than 12 Months | 0 | 0 |
12 Months or Greater | (1,306) | (1,432) |
Total | (1,306) | (1,432) |
Residential mortgage-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 246,477 | 252,924 |
Gross Unrealized Gains | 214 | 668 |
Gross Unrealized Losses | (12,527) | (11,573) |
Fair Value | 234,164 | 242,019 |
Fair Value | ||
Less than 12 Months | 18,070 | 12,307 |
12 Months or Greater | 192,121 | 208,134 |
Total | 210,191 | 220,441 |
Unrealized Losses | ||
Less than 12 Months | (507) | (221) |
12 Months or Greater | (12,020) | (11,352) |
Total | (12,527) | (11,573) |
Asset-backed | ||
Debt securities: | ||
Totals before allowance for credit losses | 987,637 | 920,289 |
Gross Unrealized Gains | 1,955 | 2,102 |
Gross Unrealized Losses | (65,762) | (72,959) |
Fair Value | 923,830 | 849,432 |
Fair Value | ||
Less than 12 Months | 169,542 | 76,980 |
12 Months or Greater | 623,286 | 619,960 |
Total | 792,828 | 696,940 |
Unrealized Losses | ||
Less than 12 Months | (2,588) | (1,676) |
12 Months or Greater | (63,174) | (71,283) |
Total | $ (65,762) | $ (72,959) |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities Available for Sale - Amortized Cost | ||
Due in 1 year or less | $ 954,486 | |
Due after 1 year through 5 years | 2,366,855 | |
Due after 5 years through 10 years | 1,179,151 | |
Due after 10 years | 1,956,012 | |
Amortized cost | 6,456,504 | |
Mortgage and asset-backed securities | 1,256,343 | |
Totals before allowance for credit losses | 7,712,847 | $ 7,714,503 |
Allowance for Credit Losses | 0 | 0 |
Totals | 7,712,847 | |
Debt Securities Available for Sale - Fair Value | ||
Due in 1 year or less | 942,367 | |
Due after 1 year through 5 years | 2,285,704 | |
Due after 5 years through 10 years | 1,061,340 | |
Due after 10 years | 1,603,194 | |
Fair value | 5,892,605 | |
Mortgage and asset-backed securities | 1,178,948 | |
Allowance for credit losses | 0 | |
Total | $ 7,071,553 | $ 7,108,188 |
Investments - Mortgage Loans an
Investments - Mortgage Loans and Real Estate (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Totals | $ 470,793 | $ 474,133 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of the period | 3,651 | ||
Total ending allowance for credit losses | 3,665 | ||
Real Estate | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | 475,369 | 478,627 | |
Market value adjustment | (911) | (843) | |
Allowance for credit losses | (3,665) | (3,651) | |
Totals | $ 470,793 | $ 474,133 | |
Mortgage loans, percentage | 100% | 100% | |
Market value adjustment percentage | (0.20%) | (0.20%) | |
Allowance for credit losses | (0.80%) | (0.80%) | |
Totals, percentage | 99% | 99% | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Balance, beginning of the period | $ 3,651 | $ 3,575 | |
Provision during the period | 14 | 128 | |
Total ending allowance for credit losses | 3,665 | $ 3,703 | |
Real Estate | Less than 50% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 105,375 | $ 105,216 | |
Mortgage loans, percentage | 22.10% | 21.90% | |
Real Estate | 50% to 60% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 173,431 | $ 165,844 | |
Mortgage loans, percentage | 36.50% | 34.60% | |
Real Estate | 60% to 70% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 175,750 | $ 186,664 | |
Mortgage loans, percentage | 37% | 39% | |
Real Estate | 70% to 80% | |||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | |||
Mortgage loan, amount | $ 20,813 | $ 20,903 | |
Mortgage loans, percentage | 4.40% | 4.50% |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 7,071,553,000 | $ 7,108,188,000 | |
Debt securities, trading | 985,435,000 | 1,046,856,000 | |
Equity securities | 26,399,000 | 24,098,000 | |
Mortgage loans | 19,388,000 | 19,580,000 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Market risk benefits liabilities, net | 261,912,000 | $ 273,404,000 | $ 253,116,000 |
Transfer from Level 2 to Level 3 for debt securities available for sale | 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) | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 7,071,553,000 | $ 7,108,188,000 | |
Debt securities, trading | 985,435,000 | 1,046,856,000 | |
Equity securities | 26,399,000 | 24,098,000 | |
Mortgage loans | 19,388,000 | 19,580,000 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Short-term investments | 24,093,000 | 0 | |
Total assets | 8,241,537,000 | 8,283,880,000 | |
Policyholder account balances | 441,890,000 | 398,126,000 | |
Market risk benefits liabilities, net | 222,438,000 | 242,585,000 | |
Embedded derivative contra-liability | (280,244,000) | (280,385,000) | |
Other liabilities | 63,802,000 | 64,835,000 | |
Total liabilities | $ 447,886,000 | $ 425,161,000 | |
Percent of total | 100% | 100% | |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 0 | $ 0 | |
Debt securities, trading | 0 | 0 | |
Equity securities | 22,705,000 | 20,638,000 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 0 | ||
Market risk benefits liabilities, net | 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 | |
Debt securities, trading | 0 | 0 | |
Equity securities | 22,705,000 | 20,638,000 | |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 0 | 0 | |
Total assets | 22,705,000 | 20,638,000 | |
Policyholder account balances | 0 | 0 | |
Market risk benefits liabilities, net | 0 | 0 | |
Embedded derivative contra-liability | 0 | 0 | |
Other liabilities | 0 | 0 | |
Total liabilities | $ 0 | $ 0 | |
Percent of total | 0.30% | 0.20% | |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 6,552,164,000 | $ 6,596,362,000 | |
Debt securities, trading | 864,620,000 | 900,835,000 | |
Equity securities | 3,694,000 | 3,460,000 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 24,093,000 | ||
Market risk benefits liabilities, net | 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 | 6,552,164,000 | 6,596,362,000 | |
Debt securities, trading | 864,620,000 | 900,835,000 | |
Equity securities | 3,694,000 | 3,460,000 | |
Mortgage loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 24,093,000 | 0 | |
Total assets | 7,444,571,000 | 7,500,657,000 | |
Policyholder account balances | 0 | 0 | |
Market risk benefits liabilities, net | 0 | 0 | |
Embedded derivative contra-liability | (278,580,000) | (274,981,000) | |
Other liabilities | 63,802,000 | 64,835,000 | |
Total liabilities | $ (214,778,000) | $ (210,146,000) | |
Percent of total | 90.30% | 90.60% | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 519,389,000 | $ 511,826,000 | |
Debt securities, trading | 120,815,000 | 146,021,000 | |
Equity securities | 0 | 0 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Short-term investments | 0 | ||
Total assets | 256,489,000 | 218,231,000 | |
Market risk benefits liabilities, net | 222,437,000 | 242,585,000 | |
Total liabilities | 664,328,000 | 640,711,000 | |
Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 519,389,000 | 511,826,000 | |
Debt securities, trading | 120,815,000 | 146,021,000 | |
Equity securities | 0 | 0 | |
Mortgage loans | 19,388,000 | 19,580,000 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Short-term investments | 0 | 0 | |
Total assets | 774,261,000 | 762,585,000 | |
Policyholder account balances | 441,890,000 | 398,126,000 | |
Market risk benefits liabilities, net | 222,438,000 | 242,585,000 | |
Embedded derivative contra-liability | (1,664,000) | (5,404,000) | |
Other liabilities | 0 | 0 | |
Total liabilities | $ 662,664,000 | $ 635,307,000 | |
Percent of total | 9.40% | 9.20% | |
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 | $ 6,949,121,000 | $ 6,994,695,000 | |
Debt securities, trading | 985,435,000 | 1,046,856,000 | |
Equity securities | 26,399,000 | 24,098,000 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Short-term investments | 24,093,000 | ||
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 | |
Debt securities, trading | 0 | 0 | |
Equity securities | 22,705,000 | 20,638,000 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 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 | 6,552,164,000 | 6,596,362,000 | |
Debt securities, trading | 864,620,000 | 900,835,000 | |
Equity securities | 3,694,000 | 3,460,000 | |
Derivatives, index options | 0 | 0 | |
Short-term investments | 24,093,000 | ||
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 | 396,957,000 | 398,333,000 | |
Debt securities, trading | 120,815,000 | 146,021,000 | |
Equity securities | 0 | 0 | |
Derivatives, index options | 114,669,000 | 85,158,000 | |
Short-term investments | 0 | ||
Priced internally | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 122,432,000 | 113,493,000 | |
Mortgage loans | 19,388,000 | 19,580,000 | |
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 | |
Mortgage loans | 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 | |
Mortgage loans | 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 | 122,432,000 | 113,493,000 | |
Mortgage loans | $ 19,388,000 | $ 19,580,000 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 762,585 | $ 629,035 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 42,214 | 4,712 |
Included in other comprehensive income (loss) | (2,928) | 6,606 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 43,658 | 59,520 |
Settlements | (71,268) | (6,838) |
Balance at ending of period | $ 774,261 | $ 693,035 |
Fair value, asset, recurring basis, unobservable input reconciliation, gain (loss), statement of income or comprehensive income [Extensible Enumeration] | Net earnings | Net earnings |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 41,335 | $ 5,012 |
Fair value, asset, recurring basis, unobservable input reconciliation, asset, gain (loss), statement of other comprehensive income or comprehensive income [Extensible Enumeration] | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent |
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 |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 635,307 | $ 565,003 |
Total realized and unrealized (gains) losses: | ||
Included in net earnings | 36,223 | 37,618 |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 13,348 | 12,631 |
Sales | 0 | |
Issuances | 97 | 22 |
Settlements | (22,311) | (984) |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period March 31, 2024 | 662,664 | 614,290 |
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: | $ 21,091 | $ 47,037 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | 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 | ||
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: | $ 5,012 | |
Fair value, asset, recurring basis, still held, unrealized gain (loss), statement of income or comprehensive income [Extensible Enumeration] | 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: | $ 3,740 | $ 1,779 |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Net investment income | Net investment income |
Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 0 | |
Fair value, asset, recurring basis, still held, unrealized gain (loss), statement of income or comprehensive income [Extensible Enumeration] | 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: | $ 17,351 | $ 45,258 |
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 |
Embedded Derivative Financial Instruments | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ (5,404) | $ (10,243) |
Total realized and unrealized (gains) losses: | ||
Included in net earnings | 3,740 | 1,779 |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Sales | 0 | |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period March 31, 2024 | (1,664) | (8,464) |
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: | 3,740 | 1,779 |
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: | 3,740 | 1,779 |
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 |
Policyholder Account Balances | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 398,126 | 387,686 |
Total realized and unrealized (gains) losses: | ||
Included in net earnings | 52,727 | (6,164) |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 13,348 | 12,631 |
Sales | 0 | |
Issuances | 0 | 0 |
Settlements | (22,311) | 0 |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period March 31, 2024 | 441,890 | 394,153 |
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: | 37,595 | 3,233 |
Policyholder Account Balances | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Policyholder Account Balances | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 37,595 | 3,233 |
Other Liabilities | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 0 | 20,542 |
Total realized and unrealized (gains) losses: | ||
Included in net earnings | 0 | (2,314) |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Sales | 0 | |
Issuances | 0 | 0 |
Settlements | 0 | (984) |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period March 31, 2024 | 0 | 17,244 |
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 | (2,314) |
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 |
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: | 0 | (2,314) |
Market Risk Benefits Liabilities, net | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 242,585 | 167,018 |
Total realized and unrealized (gains) losses: | ||
Included in net earnings | (20,244) | 44,317 |
Included in other comprehensive income (loss) | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Sales | 0 | |
Issuances | 97 | 22 |
Settlements | 0 | 0 |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period March 31, 2024 | 222,438 | 211,357 |
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: | (20,244) | 44,339 |
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 |
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: | (20,244) | 44,339 |
Debt Securities, Available-for-Sale | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 511,826 | 462,796 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 0 | 0 |
Included in other comprehensive income (loss) | (2,928) | 6,606 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 17,778 | 22,533 |
Settlements | (7,287) | (3,586) |
Balance at ending of period | 519,389 | 488,349 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Debt Securities, Available-for-Sale | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
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 | |
Trading Securities | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 146,021 | 123,236 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 3,808 | 1,525 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 12,532 | 24,357 |
Settlements | (41,546) | (3,219) |
Balance at ending of period | 120,815 | 145,899 |
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: | 3,808 | 1,525 |
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: | 1,525 | |
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 | |
Derivatives, Index Options | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 85,158 | 23,669 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 38,474 | 2,933 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 13,348 | 12,630 |
Settlements | (22,311) | 0 |
Balance at ending of period | 114,669 | 39,232 |
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: | 37,595 | 3,233 |
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: | 3,233 | |
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 | |
Mortgage Loans | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | 19,580 | 19,334 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (68) | 254 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Settlements | (124) | (33) |
Balance at ending of period | 19,388 | 19,555 |
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: | $ (68) | 254 |
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: | 254 | |
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 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Quantitative Information (Details) $ in Thousands | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | $ 7,071,553 | $ 7,108,188 | |
Derivatives, index options | 114,669 | 85,158 | |
Mortgage loans, at fair value | 19,388 | 19,580 | |
Market risk benefits liabilities, net | 261,912 | 273,404 | $ 253,116 |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 519,389 | 511,826 | |
Derivatives, index options | 114,669 | 85,158 | |
Total assets | 256,489 | 218,231 | |
Market risk benefits liabilities, net | 222,437 | 242,585 | |
Total liabilities | 664,328 | 640,711 | |
Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Debt securities, available-for-sale | 122,432 | 113,493 | |
Mortgage loans, at fair value | 19,388 | 19,580 | |
Deterministic cash flow model | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Policyholder account balances | 441,890 | 398,126 | |
Risk-neutral valuation | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Market risk benefits liabilities, net | 222,438 | 242,585 | |
Broker prices | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, index options | $ 114,669 | $ 85,158 | |
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 | 0.0355 | |
Minimum | Spread | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans, measurement input | 0.0165 | 0.0195 | |
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 | 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 | |
Minimum | Implied volatility | Broker prices | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, index options, measurement input | 0.1020 | 0.1026 | |
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 | 0.0614 | |
Maximum | Spread | Discounted cash flows | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Mortgage loans, measurement input | 0.0275 | 0.0230 | |
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 | 0.1184 | 0.0863 | |
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 | |
Maximum | Implied volatility | Broker prices | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, index options, measurement input | 0.1977 | 0.2200 | |
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 | 0.0503 | 0.0501 | |
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 | 0.0412 | 0.0382 | |
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 | |
Weighted-Average | Implied volatility | Broker prices | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivatives, index options, measurement input | 0.1250 | 0.1364 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments - Fair Value by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
ASSETS | |||
Debt securities, available-for-sale | $ 7,071,553 | $ 7,108,188 | |
Debt securities, trading | 985,435 | 1,046,856 | |
Derivatives, index options | 114,669 | 85,158 | |
Equity securities | 26,399 | 24,098 | |
LIABILITIES | |||
Market risk benefits liabilities, net | 261,912 | 273,404 | $ 253,116 |
Carrying Values | |||
ASSETS | |||
Debt securities, available-for-sale | 7,071,553 | 7,108,188 | |
Debt securities, trading | 985,435 | 1,046,856 | |
Cash and cash equivalents | 450,499 | 482,758 | |
Mortgage loans | 470,793 | 474,133 | |
Real estate | 26,995 | 27,134 | |
Policy loans | 64,838 | 66,602 | |
Other loans | 51,021 | 37,906 | |
Derivatives, index options | 114,669 | 85,158 | |
Equity securities | 26,399 | 24,098 | |
Short-term investments | 24,093 | ||
Other investments | 4,318 | 4,318 | |
LIABILITIES | |||
Deferred annuity contracts | 4,693,311 | 4,871,141 | |
Immediate annuity and supplemental contracts | 343,724 | 353,868 | |
Market risk benefits liabilities, net | 222,437 | 242,585 | |
Fair Values | |||
ASSETS | |||
Debt securities, available-for-sale | 7,071,553 | 7,108,188 | |
Debt securities, trading | 985,435 | 1,046,856 | |
Cash and cash equivalents | 450,499 | 482,758 | |
Mortgage loans | 426,942 | 433,695 | |
Real estate | 48,767 | 47,867 | |
Policy loans | 82,897 | 87,086 | |
Other loans | 49,809 | 36,985 | |
Derivatives, index options | 114,669 | 85,158 | |
Equity securities | 26,399 | 24,098 | |
Short-term investments | 24,093 | ||
Other investments | 4,654 | 4,597 | |
LIABILITIES | |||
Deferred annuity contracts | 3,126,551 | 3,307,065 | |
Immediate annuity and supplemental contracts | 343,202 | 357,196 | |
Market risk benefits liabilities, net | 222,437 | 242,585 | |
Level 1 | |||
ASSETS | |||
Debt securities, available-for-sale | 0 | 0 | |
Debt securities, trading | 0 | 0 | |
Cash and cash equivalents | 450,499 | 482,758 | |
Mortgage loans | 0 | 0 | |
Real estate | 0 | 0 | |
Policy loans | 0 | 0 | |
Other loans | 0 | 0 | |
Derivatives, index options | 0 | 0 | |
Equity securities | 22,705 | 20,638 | |
Short-term investments | 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 | 6,552,164 | 6,596,362 | |
Debt securities, trading | 864,620 | 900,835 | |
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 | 3,694 | 3,460 | |
Short-term investments | 24,093 | ||
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 | 519,389 | 511,826 | |
Debt securities, trading | 120,815 | 146,021 | |
Cash and cash equivalents | 0 | 0 | |
Mortgage loans | 426,942 | 433,695 | |
Real estate | 48,767 | 47,867 | |
Policy loans | 82,897 | 87,086 | |
Other loans | 49,809 | 36,985 | |
Derivatives, index options | 114,669 | 85,158 | |
Equity securities | 0 | 0 | |
Short-term investments | 0 | ||
Other investments | 4,654 | 4,597 | |
LIABILITIES | |||
Deferred annuity contracts | 3,126,551 | 3,307,065 | |
Immediate annuity and supplemental contracts | 343,202 | 357,196 | |
Market risk benefits liabilities, net | $ 222,437 | $ 242,585 |
Derivatives - Balance Sheet (De
Derivatives - Balance Sheet (Details) $ in Thousands | Mar. 31, 2024 USD ($) agreement | Dec. 31, 2023 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Number of coinsurance funds withheld reinsurance agreements | agreement | 2 | |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 114,669 | $ 85,158 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 114,669 | 85,158 |
Liability Derivatives | 161,646 | 117,741 |
Derivatives not designated as hedging instruments: | Equity index options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 114,669 | 85,158 |
Derivatives not designated as hedging instruments: | Fixed-index products | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 441,890 | 398,126 |
Derivatives not designated as hedging instruments: | Embedded derivative on reinsurance contract | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (280,244) | $ (280,385) |
Derivatives - Statements of Ear
Derivatives - Statements of Earnings (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ (14,394) | $ (19,771) |
Equity index options | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | 38,407 | 2,933 |
Fixed-index products | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | (52,660) | 6,164 |
Embedded derivative on reinsurance contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain or (Loss) Recognized in Income on Derivatives | $ (141) | $ (28,868) |
Intangibles and Goodwill - Gros
Intangibles and Goodwill - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (3,769) | (3,587) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (964) | (918) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (2,805) | (2,669) |
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 | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of 2024 | $ 547 |
2025 | 730 |
2026 | 232 |
2027 | 187 |
2028 | 187 |
Thereafter | $ 948 |
Intangibles and Goodwill - Chan
Intangibles and Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
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) - National Western Life Insurance Group, Inc - S. USA Life Insurance Company, Inc. - USD ($) $ / shares in Units, $ in Billions | Oct. 08, 2023 | Mar. 31, 2024 |
Effects of Reinsurance [Line Items] | ||
Conversion right for each outstanding share (in usd per share) | $ 500 | $ 500 |
Merger agreement | $ 1.9 |