Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-08052 | |
Entity Registrant Name | GLOBE LIFE INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 63-0780404 | |
Entity Address, Address Line One | 3700 South Stonebridge Drive | |
Entity Address, City or Town | McKinney | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75070 | |
City Area Code | 972 | |
Local Phone Number | 569-4000 | |
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 Common Stock, Shares Outstanding | 95,554,844 | |
Entity Central Index Key | 0000320335 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock, $1.00 par value per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $1.00 par value per share | |
Trading Symbol | GL | |
Security Exchange Name | NYSE | |
4.250% Junior Subordinated Debentures | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 4.250% Junior Subordinated Debentures | |
Trading Symbol | GL PRD | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments: | ||
Fixed maturities—available for sale, at fair value (amortized cost: 2023—$18,526,703; 2022—$18,301,692, allowance for credit losses: 2023— $32,767; 2022— $0) | $ 17,206,885 | $ 16,503,365 |
Policy loans | 622,736 | 614,866 |
Other long-term investments (includes: 2023—$789,197; 2022—$768,689 under the fair value option) | 1,022,611 | 976,016 |
Short-term investments | 74,377 | 114,121 |
Total investments | 18,926,609 | 18,208,368 |
Cash | 172,108 | 92,559 |
Accrued investment income | 279,445 | 259,581 |
Other receivables | 594,421 | 589,079 |
Deferred acquisition costs | 5,654,438 | 5,535,697 |
Goodwill | 481,791 | 481,791 |
Other assets | 751,311 | 760,066 |
Total assets | 26,860,123 | 25,927,141 |
Liabilities: | ||
Future policy benefits | 18,896,574 | 18,040,042 |
Unearned and advance premium | 271,517 | 253,140 |
Policy claims and other benefits payable | 489,296 | 507,219 |
Other policyholders' funds | 142,686 | 123,236 |
Total policy liabilities | 19,800,073 | 18,923,637 |
Current and deferred income taxes | 427,608 | 434,649 |
Short-term debt | 514,247 | 449,103 |
Long-term debt (estimated fair value: 2023—$1,484,172; 2022—$1,440,277) | 1,628,354 | 1,627,952 |
Other liabilities | 643,550 | 542,223 |
Total liabilities | 23,013,832 | 21,977,564 |
Commitments and Contingencies (Note 5) | ||
Shareholders' equity: | ||
Preferred stock, par value $1 per share—5,000,000 shares authorized; outstanding: 0 in 2023 and 2022 | 0 | 0 |
Common stock, par value $1 per share—320,000,000 shares authorized; outstanding: (2023—105,218,183 issued; 2022—105,218,183 issued) | 105,218 | 105,218 |
Additional paid-in-capital | 528,639 | 529,661 |
Accumulated other comprehensive income (loss) | (2,961,093) | (2,790,313) |
Retained earnings | 7,092,544 | 6,894,535 |
Treasury stock, at cost: (2023—9,489,745 shares; 2022—8,478,288 shares) | (919,017) | (789,524) |
Total shareholders' equity | 3,846,291 | 3,949,577 |
Total liabilities and shareholders' equity | $ 26,860,123 | $ 25,927,141 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fixed maturities, available for sale, amortized cost | $ 18,526,703 | $ 18,301,692 |
Fixed maturities, available for sale, allowance for credit losses | 32,767 | 0 |
Other long-term investments under fair value option | 1,022,611 | 976,016 |
Net liabilities for future policy benefits | 16,442,516 | 16,306,870 |
Total long-term debt, fair value | $ 1,484,172 | $ 1,440,277 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 320,000,000 | 320,000,000 |
Common stock, shares issued (in shares) | 105,218,183 | 105,218,183 |
Common stock, shares outstanding (in shares) | 105,218,183 | 105,218,183 |
Common stock, shares held in treasury (in shares) | 9,489,745 | 8,478,288 |
Partnership Interest - Fair Value Option | Investment in Limited Partnerships | ||
Other long-term investments under fair value option | $ 789,197 | $ 768,689 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Revenue | $ 1,095,090 | $ 1,064,812 |
Net investment income | 257,105 | 244,894 |
Realized gains (losses) | (30,927) | (7,244) |
Other income | 50 | 164 |
Total revenue | 1,321,318 | 1,302,626 |
Benefits and expenses: | ||
Life policyholder benefits | 507,977 | 495,429 |
Health policyholder benefits | 190,962 | 189,018 |
Other policyholder benefits | 8,988 | 9,702 |
Total policyholder benefits | 707,927 | 694,149 |
Amortization of deferred acquisition costs | 92,322 | 84,496 |
Commissions, premium taxes, and non-deferred acquisition costs | 137,797 | 125,509 |
Other operating expense | 84,171 | 84,352 |
Interest expense | 24,867 | 19,944 |
Total benefits and expenses | 1,047,084 | 1,008,450 |
Income before income taxes | 274,234 | 294,176 |
Income tax benefit (expense) | (50,624) | (56,692) |
Net income | $ 223,610 | $ 237,484 |
Basic net income per common share (in dollars per share) | $ 2.32 | $ 2.39 |
Diluted net income per common share (in dollars per share) | $ 2.28 | $ 2.37 |
Life premium | ||
Revenue: | ||
Revenue | $ 772,597 | $ 749,128 |
Health premium | ||
Revenue: | ||
Revenue | 322,493 | 315,684 |
Other | ||
Revenue: | ||
Revenue | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Life insurance | ||
Policyholder benefits net of remeasurement gain (loss) | $ (2,697) | $ 5,783 |
Health premium | ||
Policyholder benefits net of remeasurement gain (loss) | $ 2,038 | $ (1,959) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net income | $ 223,610 | $ 237,484 |
Unrealized gains (losses) on fixed maturities: | ||
unrealized investment gains (losses) | 511,276 | (2,296,668) |
Less applicable tax (expense) benefit | (107,368) | 482,299 |
Unrealized gains (losses) on investments, net of tax | 403,908 | (1,814,369) |
Future Policy Benefits: | ||
Change in discount rate on future policy benefits | (720,890) | 2,805,511 |
Less applicable tax (expense) benefit | 151,387 | (589,156) |
Future policy benefit adjustments, net of tax | (569,503) | 2,216,355 |
Foreign exchange translation: | ||
Foreign exchange translation adjustments, other than securities | (6,516) | 4,228 |
Less applicable tax (expense) benefit | 1,368 | (887) |
Foreign exchange translation adjustments, other than securities, net of tax | (5,148) | 3,341 |
Pension: | ||
Pension adjustments | (48) | 3,437 |
Less applicable tax (expense) benefit | 11 | (722) |
Pension adjustments, net of tax | (37) | 2,715 |
Other comprehensive income (loss) | (170,780) | 408,042 |
Comprehensive income (loss) | 52,830 | 645,526 |
Securities | ||
Unrealized gains (losses) on fixed maturities: | ||
Unrealized holding gains (losses) arising during period | 469,119 | (2,292,922) |
Other reclassification adjustments included in net income | 32,590 | (4,030) |
Foreign exchange adjustment on fixed maturities recorded at fair value | $ 9,567 | $ 284 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Beginning balance at Dec. 31, 2021 | $ 2,003,808 | $ 0 | $ 109,218 | $ 520,564 | $ (4,235,048) | $ 6,455,733 | $ (846,659) |
Increase (Decrease) in Stockholders' Equity | |||||||
Comprehensive income (loss) | 645,526 | 408,042 | 237,484 | ||||
Common dividends declared | (20,543) | (20,543) | |||||
Acquisition of treasury stock | (119,482) | (119,482) | |||||
Stock-based compensation | 9,035 | 2,504 | (345) | 6,876 | |||
Exercise of stock options | 25,931 | (9,964) | 35,895 | ||||
Ending balance at Mar. 31, 2022 | 2,544,275 | 0 | 109,218 | 523,068 | (3,827,006) | 6,662,365 | (923,370) |
Beginning balance at Dec. 31, 2022 | 3,949,577 | 0 | 105,218 | 529,661 | (2,790,313) | 6,894,535 | (789,524) |
Increase (Decrease) in Stockholders' Equity | |||||||
Comprehensive income (loss) | 52,830 | (170,780) | 223,610 | ||||
Common dividends declared | (21,542) | (21,542) | |||||
Acquisition of treasury stock | (179,276) | (179,276) | |||||
Stock-based compensation | 7,678 | (1,022) | 8,700 | ||||
Exercise of stock options | 37,024 | (4,059) | 41,083 | ||||
Ending balance at Mar. 31, 2023 | $ 3,846,291 | $ 0 | $ 105,218 | $ 528,639 | $ (2,961,093) | $ 7,092,544 | $ (919,017) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Common dividends declared, per share (in dollars per share) | $ 0.2250 | $ 0.2075 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Cash Flows [Abstract] | ||
Cash provided from (used for) operating activities | $ 477,330 | $ 397,133 |
Investments sold or matured: | ||
Fixed maturities available for sale—sold | 15,705 | 75,116 |
Fixed maturities available for sale—matured or other redemptions | 61,560 | 115,160 |
Other long-term investments | 1,950 | 20,929 |
Total investments sold or matured | 79,215 | 211,205 |
Acquisition of investments: | ||
Fixed maturities—available for sale | (285,505) | (339,145) |
Other long-term investments | (47,898) | (122,010) |
Total investments acquired | (333,403) | (461,155) |
Net (increase) decrease in policy loans | (7,870) | (2,324) |
Net (increase) decrease in short-term investments | 39,744 | 11,801 |
Additions to property and equipment | (8,210) | (6,981) |
Investments in low-income housing interests | (17,246) | (27,870) |
Cash provided from (used for) investing activities | (247,770) | (275,324) |
Cash provided from (used for) financing activities: | ||
Issuance of common stock | 37,024 | 25,931 |
Cash dividends paid to shareholders | (20,071) | (19,687) |
Short-term borrowings from FHLB | 45,000 | 0 |
Net borrowing (repayment) of commercial paper | 20,070 | 42,348 |
Acquisition of treasury stock | (179,276) | (119,482) |
Net receipts (payments) from deposit-type products | (54,487) | (13,810) |
Cash provided from (used for) financing activities | (151,740) | (84,700) |
Effect of foreign exchange rate changes on cash | 1,729 | (1,644) |
Net increase (decrease) in cash | 79,549 | 35,465 |
Cash at beginning of year | 92,559 | 92,163 |
Cash at end of period | $ 172,108 | $ 127,628 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1—Significant Accounting Policies Business : (Globe Life), (the Company), refers to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and Globe Life Inc. subsidiaries and affiliates. Globe Life Inc.'s direct or indirect primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. The underwriting companies are owned by their ultimate corporate parent, Globe Life Inc. (Parent Company). Globe Life provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The Company is organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Globe Life markets its insurance products through a number of distribution channels, each of which sells the products of one or more of Globe Life's insurance segments. Our distribution channels consist of the following exclusive agencies: American Income Life Division (American Income), Liberty National Division (Liberty National) and Family Heritage Division (Family Heritage); an independent agency, United American Division (United American); and our Direct to Consumer Division (DTC). Basis of Presentation : The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2023, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2023 and 2022. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 23, 2023. Use of Estimates : The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes. Significant Accounting Policy Updates : The following accounting policies were updated since the 2022 Form 10-K due to the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12). Refer to Note 2—New Acc ounting Stan dards for additional information on the financial statement impacts related to the adoption of this standard. Future Policy Benefits— The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 91% of the total liability for future policy benefits. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. Net level premiums reflect a recomputed net premium ratio 1 using actual experience since the issue date or the Transition Date, and expected future experience. The liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity and product type. Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, lapse, and persistency. Each quarter, the Company remeasures its liability for future policy benefits using current discount rates with the effect of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or loss within the Condensed Consolidated Statements of Operations using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions. The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, lapses and persistency) used to calculate the change in the liability for future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. When the expected future net premiums exceed the expected future gross premiums, or the present value of future policyholder benefits exceeds the present value of expected future gross premiums, the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Condensed Consolidated Statements of Operations . The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used for individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse and persistency assumptions are based on Globe Life's experience. The liability for future policy benefits is discounted as noted above, using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observable inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used for interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability. The liability for future policy benefits for annuity and interest sensitive life-type products is represented by policy account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in force. Deferred Acquisition Costs— Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business. Deferred acquisition costs (DAC) are directly related to the successful issuance of an insurance contract, and primarily include sales commissions, policy issue costs, direct to consumer advertising costs, and underwriting costs. Additionally, DAC includes the value of business acquired (VOBA), which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed, compared against the assets and liabilities for insurance contracts that the Company issues or holds measured in accordance with GAAP. DAC is amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Condensed Consolidated Statements of Operations . The in-force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and persistency. These assumptions are reviewed at least annually and revised in conjunction with any change in the future policy benefit assumptions. The effect of changes in the assumptions are recognized over the remaining expected contract term as a revision of future amortization amounts. |
New Accounting Standards
New Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standards | Note 2—New Accounting Standards Accounting Pronouncements Adopted in the Current Year : On January 1, 2023, the Company adopted ASU 2018-12 on a modified retrospective basis as of the transition date (Transition Date) of January 1, 2021 . The amended guidance is a significant change to the accounting and disclosure of long-duration life and health insurance contracts. The modified retrospective transition method requires the updated standard be applied to all long-duration life and health contracts, which has resulted in the adjustment of the 2021 and 2022 consolidated financial statements. The following tables summarize the balance of and changes to the liability for future policy benefits for traditional life and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12: Net Liability for Future Policy Benefits - Long Duration Life American Income DTC Liberty National Other Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 3,541,317 $ 2,492,226 $ 2,140,071 $ 2,736,804 $ 10,910,418 Effect of changes in discount rate assumptions 3,334,600 2,195,430 1,229,610 2,297,835 9,057,475 Effect of capping and flooring (1) — 16,899 2,433 2 19,334 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 6,875,917 $ 4,704,555 $ 3,372,114 $ 5,034,641 $ 19,987,227 Net liability for Future Policy Benefits - Long Duration Health United American Family Heritage Liberty National American Income DTC Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 131,505 $ 1,383,128 $ 501,312 $ 101,998 $ (2,941) $ 2,115,002 Effect of changes in discount rate assumptions 75,652 497,250 219,992 60,366 346 853,606 Effect of capping and flooring (1) 6,506 — 19,324 — 4,193 30,023 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 213,663 $ 1,880,378 $ 740,628 $ 162,364 $ 1,598 $ 2,998,631 (1) When the present value of expected future net premiums exceeds the present value of expected future gross premiums for a given cohort (capping), or the present value of future policy benefits and related termination expenses exceeds the present value of expected future net premiums (flooring), an adjustment is made to the liability for future policy benefits. The following table presents total policy liabilities, both before and after the Transition Date: January 1, December 31, 2021 2020 Future policy benefits: Net liability for future policy benefits—long duration life $ 19,987,227 $ 10,910,418 Net liability for future policy benefits—long duration health 2,998,631 2,115,002 Additional insurance liabilities (1),(2) 2,008,399 2,218,116 Total future policy benefits 24,994,257 15,243,536 Unearned and advance premium (1) 243,369 61,728 Policy claims and other benefits payable (1) 473,524 399,507 Other policyholders' funds (1) 98,459 97,968 Total policy liabilities $ 25,809,609 $ 15,802,739 (1) In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidated Balance Sheets as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below. (2) The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Liabilities The following table presents the Company's deferred policy acquisition costs, both before and after the Transition Date: January 1, December 31, 2021 2020 Life: American Income $ 1,647,761 $ 1,647,761 Direct to Consumer 1,498,970 1,498,435 Liberty National 531,504 531,504 Other 304,786 304,459 Total life 3,983,021 3,982,159 Health: United American 65,020 74,353 Family Heritage 364,751 364,751 Liberty National 124,754 124,888 American Income 39,477 39,477 Direct to Consumer 2,215 6,600 Total health 596,217 610,069 Annuity 8,309 3,216 Total DAC $ 4,587,547 $ 4,595,444 The following table presents the effect of transition adjustments due to the adoption of ASU 2018-12 on Shareholders' Equity: Retained Earnings Accumulated Other Comprehensive Income (Loss) Other (1) Total Shareholders’ Equity, as of December 31, 2020 $ 5,874,109 $ 3,029,244 $ (132,261) $ 8,771,092 Effect of changes in discount rate assumptions — (7,829,753) — (7,829,753) Effect of capping and flooring (38,992) — — (38,992) Effect of removal of unrealized gain (loss) on DAC — 4,704 — 4,704 Other adjustments 26,470 — — 26,470 Shareholders’ Equity, as of January 1, 2021 $ 5,861,587 $ (4,795,805) $ (132,261) $ 933,521 (1) Other represents common stock, additional paid-in capital, and treasury stock, combining balances that were unaffected by the new standard. As of the Transition Date, the primary effects of the changes required by the standard were to AOCI and retained earnings. As seen in the table above, the transition adjustments impacting AOCI consist of the effect of changes in discount rate assumptions and the effect of the removal of unrealized gains (losses) on DAC. The effect of changes in discount rate assumptions is the impact, net of tax, of the Company re-measuring its liability for future policy benefits using current discount rates. As of the Transition Date, we experienced a lower level of current discount rates than the original discount rates used in valuing our future policy benefits under the prior guidance, thus reducing Shareholders' Equity. For the effect of removing unrealized gains (losses) on DAC, this adjustment relates to the requirement to remove unrealized gains (losses) that were included within the amortization calculation, as noted previously. Accounting Pronouncements Yet to be Adopted : ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, adds disclosure requirements specific to equity securities subject to contractual sale restrictions. The disclosures clarify the nature of the contractual sale as well as the duration of the restriction and the circumstances that could cause a lapse in the restriction. This standard is effective for the Company on January 1, 2024, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the Consolidated Financial Statements. Effect of New Accounting Standards on Previously Reported Results : The impacts from the adoption of ASU 2018-12 on the Company's previously reported results included in these financial statements are as follows: Condensed Consolidated Balance Sheets December 31, 2022 As Previously Reported Adoption Impact As Adjusted Assets: Other receivables $ 484,887 $ 104,192 $ 589,079 Deferred acquisition costs 5,249,907 285,790 5,535,697 Liabilities: Future policy benefits 16,721,846 1,318,196 18,040,042 Unearned and advance premium 60,742 192,398 253,140 Policy claims and other benefits payable 430,027 77,192 507,219 Current and deferred income taxes 686,172 (251,523) 434,649 Shareholders' equity: Accumulated other comprehensive income (loss) (1,415,714) (1,374,599) (2,790,313) Retained earnings 6,466,220 428,315 6,894,535 Condensed Consolidated Statements of Operations Three Months Ended As Previously Reported Adoption Impact As Adjusted Revenue: Life premium $ 754,602 $ (5,474) $ 749,128 Health premium 317,000 (1,316) 315,684 Net investment income 243,834 1,060 244,894 Benefits and expenses: Life policyholder benefits 549,343 (53,914) 495,429 Health policyholder benefits 196,855 (7,837) 189,018 Other policyholder benefits 7,050 2,652 9,702 Amortization of deferred acquisition costs 158,384 (73,888) 84,496 Commissions, premium taxes, and non-deferred acquisition costs 90,813 34,696 125,509 Income before income taxes 201,615 92,561 294,176 Income tax benefit (expense) (37,254) (19,438) (56,692) Net income $ 164,361 $ 73,123 $ 237,484 Basic net income per common share $ 1.66 $ 0.73 $ 2.39 Diluted net income per common share $ 1.64 $ 0.73 $ 2.37 See Note 1—Significant Accounting Policies , Note 6—Policy Liabilities , and Note 7—DAC for additional information on the adoption. |
Supplemental Information about
Supplemental Information about Changes to Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Supplemental Information about Changes to Accumulated Other Comprehensive Income | Note 3—Supplemental Information about Changes to Accumulated Other Comprehensive Income Components of Accumulated Other Comprehensive Income : An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Available Future Policy Benefits Foreign Pension Total Balance at January 1, 2023 $ (1,420,672) $ (1,369,204) $ (1,681) $ 1,244 $ (2,790,313) Other comprehensive income (loss) before reclassifications, net of tax 378,162 (569,503) (5,148) — (196,489) Reclassifications, net of tax 25,746 — — (37) 25,709 Other comprehensive income (loss) 403,908 (569,503) (5,148) (37) (170,780) Balance at March 31, 2023 $ (1,016,764) $ (1,938,707) $ (6,829) $ 1,207 $ (2,961,093) Three Months Ended March 31, 2022 Available Future Policy Benefits Foreign Pension Total Balance at January 1, 2022 $ 2,765,290 $ (6,915,910) $ 19,248 $ (103,676) $ (4,235,048) Other comprehensive income (loss) before reclassifications, net of tax (1,811,185) 2,216,355 3,341 — 408,511 Reclassifications, net of tax (3,184) — — 2,715 (469) Other comprehensive income (loss) (1,814,369) 2,216,355 3,341 2,715 408,042 Balance at March 31, 2022 $ 950,921 $ (4,699,555) $ 22,589 $ (100,961) $ (3,827,006) Reclassification Adjustments : Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2023 and 2022. Three Months Ended March 31, Affected line items in the Statements of Operations Component Line Item 2023 2022 Unrealized investment (gains) losses on available for sale assets: Realized (gains) losses $ 33,124 $ (4,937) Realized (gains) losses Amortization of (discount) premium (534) 907 Net investment income Total before tax 32,590 (4,030) Tax (6,844) 846 Income taxes Total after-tax 25,746 (3,184) Pension adjustments: Amortization of prior service cost 269 158 Other operating expense Amortization of actuarial (gain) loss (317) 3,279 Other operating expense Total before tax (48) 3,437 Tax 11 (722) Income taxes Total after-tax (37) 2,715 Total reclassification (after-tax) $ 25,709 $ (469) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,235 $ 123,466 $ 20,430 $ 168,131 81 70% to 80% — 7,222 1,238 8,460 4 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,035 15,411 — 22,446 11 Total $ 39,577 $ 146,099 $ 21,668 207,344 100 Less allowance for credit losses (3,069) Total, net of allowance for credit losses $ 204,275 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. December 31, 2022 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,221 $ 108,156 $ 12,018 $ 144,395 79 70% to 80% — 22,120 1,238 23,358 13 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,034 — — 7,034 4 Total $ 39,562 $ 130,276 $ 13,256 183,094 100 Less allowance for credit losses (1,789) Total, net of allowance for credit losses $ 181,305 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. As of March 31, 2023, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the period, the Company had 25 loans in the portfolio. For the three months ended March 31, 2023, the allowance for credit losses increased $1.3 million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations . Three Months Ended 2023 2022 Allowance for credit losses beginning balance $ 1,789 $ 827 Provision (reversal) for credit losses 1,280 — Allowance for credit losses ending balance $ 3,069 $ 827 " id="sjs-B4" xml:space="preserve">Note 4—Investments Portfolio Composition : Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2023 and December 31, 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector." At March 31, 2023 Amortized Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 389,441 $ — $ 114 $ (27,482) $ 362,073 2 States, municipalities, and political subdivisions 2,894,161 — 41,407 (426,929) 2,508,639 15 Foreign governments 53,789 — 13 (11,282) 42,520 — Corporates, by sector: Financial 4,973,445 (26,040) 84,796 (453,394) 4,578,807 27 Utilities 1,958,888 — 70,798 (94,579) 1,935,107 11 Energy 1,434,766 — 38,477 (80,338) 1,392,905 8 Other corporate sectors 6,697,469 (6,727) 126,968 (557,390) 6,260,320 36 Total corporates 15,064,568 (32,767) 321,039 (1,185,701) 14,167,139 82 Collateralized debt obligations 36,778 — 8,724 — 45,502 — Other asset-backed securities 87,966 — 4 (6,958) 81,012 1 Total fixed maturities $ 18,526,703 $ (32,767) $ 371,301 $ (1,658,352) $ 17,206,885 100 (1) Amount reported in the balance sheet. (2) At fair value. The Company has exposure to banks as part of its fixed maturity portfolio. The Company’s bank securities had a fair value of $1.3 billion (8% of the total fixed maturity portfolio) at March 31, 2023 and December 31, 2022. At December 31, 2022 Amortized Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 394,439 $ — $ 27 $ (38,968) $ 355,498 2 States, municipalities, and political subdivisions 2,791,030 — 24,328 (505,447) 2,309,911 14 Foreign governments 55,164 — 6 (12,706) 42,464 — Corporates, by sector: Financial 4,907,794 — 63,126 (504,489) 4,466,431 27 Utilities 1,924,190 — 36,670 (125,713) 1,835,147 11 Energy 1,436,598 — 22,637 (101,923) 1,357,312 8 Other corporate sectors 6,667,043 — 78,903 (738,772) 6,007,174 37 Total corporates 14,935,625 — 201,336 (1,470,897) 13,666,064 83 Collateralized debt obligations 37,098 — 13,266 — 50,364 — Other asset-backed securities 88,336 — 4 (9,276) 79,064 1 Total fixed maturities $ 18,301,692 $ — $ 238,967 $ (2,037,294) $ 16,503,365 100 (1) Amount reported in the balance sheet. (2) At fair value. A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2023, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At March 31, 2023 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 169,491 $ 170,003 Due after one year through five years 1,113,684 1,118,421 Due after five years through ten years 1,691,785 1,717,908 Due after ten years through twenty years 7,976,112 7,740,695 Due after twenty years 7,418,120 6,333,344 Mortgage-backed and asset-backed securities 124,744 126,514 $ 18,493,936 $ 17,206,885 Analysis of Investment Operations: "Net investment income" for the three month periods ended March 31, 2023 and 2022 is summarized as follows: Three Months Ended 2023 2022 % Change Fixed maturities available for sale $ 232,299 $ 225,284 3 Policy loans 11,755 11,428 3 Other long-term investments (1) 15,743 12,713 24 Short-term investments 1,595 2 261,392 249,427 5 Less investment expense (4,287) (4,533) (5) Net investment income $ 257,105 $ 244,894 5 (1) For the three months ended March 31, 2023 and 2022, the investment funds, accounted for under the fair value option method, recorded $11.3 million and $10.7 million of distributions, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds. Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended 2023 2022 Fixed maturities available for sale: Proceeds from sales (1) $ 15,705 $ 75,116 Gross realized gains — 773 Gross realized losses (358) (3,679) (1) There were no unsettled sales in the periods ended March 31, 2023 and 2022. An analysis of "Realized gains (losses)" is as follows: Three Months Ended 2023 2022 Realized investment gains (losses): Fixed maturities available for sale: Sales and other (1) $ (357) $ 4,549 Provision for credit losses (32,767) 387 Fair value option—change in fair value 1,858 (5,338) Other investments 339 (6,842) Realized gains (losses) from investments (30,927) (7,244) Applicable tax 6,495 1,521 Realized gains (losses), net of tax $ (24,432) $ (5,723) (1) During the three months ended March 31, 2023 and 2022, the Company recorded $0 and $0 of exchanges of fixed maturities (noncash transactions) that resulted in $0 and $0, respectively, in realized gains (losses). Fair Value Measurements: The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2023 and December 31, 2022: Fair Value Measurement at March 31, 2023 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 362,073 $ — $ 362,073 States, municipalities, and political subdivisions — 2,508,639 — 2,508,639 Foreign governments — 42,520 — 42,520 Corporates, by sector: Financial — 4,445,091 133,716 4,578,807 Utilities — 1,822,748 112,359 1,935,107 Energy — 1,381,989 10,916 1,392,905 Other corporate sectors — 6,045,672 214,648 6,260,320 Total corporates — 13,695,500 471,639 14,167,139 Collateralized debt obligations — — 45,502 45,502 Other asset-backed securities — 81,012 — 81,012 Total fixed maturities $ — $ 16,689,744 $ 517,141 $ 17,206,885 Percentage of total — % 97 % 3 % 100 % Fair Value Measurement at December 31, 2022 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 355,498 $ — $ 355,498 States, municipalities, and political subdivisions — 2,309,911 — 2,309,911 Foreign governments — 42,464 — 42,464 Corporates, by sector: Financial — 4,332,495 133,936 4,466,431 Utilities — 1,723,832 111,315 1,835,147 Energy — 1,346,212 11,100 1,357,312 Other corporate sectors — 5,785,442 221,732 6,007,174 Total corporates — 13,187,981 478,083 13,666,064 Collateralized debt obligations — — 50,364 50,364 Other asset-backed securities — 79,064 — 79,064 Total fixed maturities $ — $ 15,974,918 $ 528,447 $ 16,503,365 Percentage of total — % 97 % 3 % 100 % The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2023 $ — $ 50,364 $ 478,083 $ 528,447 Included in realized gains / losses — — — — Included in other comprehensive income — (4,542) 5,370 828 Acquisitions — — — — Sales — — — — Amortization — 1,141 2 1,143 Other (1) — (1,461) (11,816) (13,277) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2023 $ — $ 45,502 $ 471,639 $ 517,141 Percent of total fixed maturities — % — % 3 % 3 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2022 $ — $ 63,505 $ 641,688 $ 705,193 Included in realized gains / losses — — — — Included in other comprehensive income — (3,809) (36,360) (40,169) Acquisitions — — — — Sales — — — — Amortization — 1,123 1 1,124 Other (1) — (1,281) (19,359) (20,640) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2022 $ — $ 59,538 $ 585,970 $ 645,508 Percent of total fixed maturities — % — % 3 % 3 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3s: Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period Asset- Collateralized Corporates Total At March 31, 2023 $ — $ (4,542) $ 5,370 $ 828 At March 31, 2022 — (3,809) (36,360) (40,169) Unrealized Loss Analysis : The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIPs) held: As of March 31, 2023 624 1,290 1,914 As of December 31, 2022 1,819 157 1,976 Globe Life's entire fixed maturity portfolio consisted of 2,379 issues by 987 different issuers at March 31, 2023 and 2,328 issues by 979 different issuers at December 31, 2022. The weighted-average quality rating of all unrealized loss positions at amortized cost was A- as of March 31, 2023 and December 31, 2022. The following tables disclose unrealized investment losses by class and major sector of fixed maturities available for sale at March 31, 2023 and December 31, 2022. Analysis of Gross Unrealized Investment Losses At March 31, 2023 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 275,114 $ (17,384) $ 84,691 $ (10,098) $ 359,805 $ (27,482) States, municipalities, and political subdivisions 601,542 (23,575) 1,219,137 (403,354) 1,820,679 (426,929) Foreign governments 15,491 (145) 25,555 (11,137) 41,046 (11,282) Corporates, by sector: Financial 1,355,645 (92,771) 1,482,482 (308,161) 2,838,127 (400,932) Utilities 304,897 (14,438) 474,873 (77,678) 779,770 (92,116) Energy 319,199 (11,489) 332,106 (58,433) 651,305 (69,922) Other corporate sectors 1,211,339 (64,035) 2,859,975 (470,663) 4,071,314 (534,698) Total corporates 3,191,080 (182,733) 5,149,436 (914,935) 8,340,516 (1,097,668) Collateralized debt obligations — — — — — — Other asset-backed securities 25,733 (696) 43,631 (5,454) 69,364 (6,150) Total investment grade securities 4,108,960 (224,533) 6,522,450 (1,344,978) 10,631,410 (1,569,511) Below investment grade securities: States, municipalities, and political subdivisions — — — — — — Corporates, by sector: Financial 79,716 (9,059) 106,971 (43,403) 186,687 (52,462) Utilities 8,265 (662) 20,166 (1,801) 28,431 (2,463) Energy — — 34,289 (10,416) 34,289 (10,416) Other corporate sectors 71,156 (4,350) 90,580 (18,342) 161,736 (22,692) Total corporates 159,137 (14,071) 252,006 (73,962) 411,143 (88,033) Collateralized debt obligations — — — — — — Other asset-backed securities — — 11,580 (808) 11,580 (808) Total below investment grade securities 159,137 (14,071) 263,586 (74,770) 422,723 (88,841) Total fixed maturities $ 4,268,097 $ (238,604) $ 6,786,036 $ (1,419,748) $ 11,054,133 $ (1,658,352) Gross unrealized losses may fluctuate quarter over quarter due to adverse factors in the market that affect our holdings, such as changes in interest rates or credit spreads. The Company considers many factors when determining whether an allowance for a credit loss should be recorded. While the Company holds securities that may be in an unrealized loss position from time to time, Globe Life does not generally intend to sell and it is likely that management will not be required to sell the fixed maturities prior to their anticipated recovery or maturity due to the strong cash flows generated by its insurance operations. Analysis of Gross Unrealized Investment Losses At December 31, 2022 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 349,887 $ (38,218) $ 3,424 $ (750) $ 353,311 $ (38,968) States, municipalities, and political subdivisions 1,767,624 (453,149) 95,124 (52,298) 1,862,748 (505,447) Foreign governments 6,297 (201) 25,134 (12,505) 31,431 (12,706) Corporates, by sector: Financial 2,837,918 (426,132) 109,784 (42,173) 2,947,702 (468,305) Utilities 1,088,219 (116,272) 21,636 (6,268) 1,109,855 (122,540) Energy 855,853 (91,755) — — 855,853 (91,755) Other corporate sectors 4,155,986 (665,831) 94,299 (42,344) 4,250,285 (708,175) Total corporates 8,937,976 (1,299,990) 225,719 (90,785) 9,163,695 (1,390,775) Collateralized debt obligations — — — — — — Other asset-backed securities 60,157 (5,223) 7,960 (2,435) 68,117 (7,658) Total investment grade securities 11,121,941 (1,796,781) 357,361 (158,773) 11,479,302 (1,955,554) Below investment grade securities: States, municipalities, and political subdivisions — — — — — — Corporates, by sector: Financial 120,377 (18,901) 38,348 (17,283) 158,725 (36,184) Utilities 27,722 (3,173) — — 27,722 (3,173) Energy 14,480 (2,182) 20,075 (7,986) 34,555 (10,168) Other corporate sectors 166,159 (25,962) 6,670 (4,635) 172,829 (30,597) Total corporates 328,738 (50,218) 65,093 (29,904) 393,831 (80,122) Collateralized debt obligations — — — — — — Other asset-backed securities — — 10,874 (1,618) 10,874 (1,618) Total below investment grade securities 328,738 (50,218) 75,967 (31,522) 404,705 (81,740) Total fixed maturities $ 11,450,679 $ (1,846,999) $ 433,328 $ (190,295) $ 11,884,007 $ (2,037,294) Fixed Maturities, Allowance for Credit Losses : A summary of the activity in the allowance for credit losses is as follows. Three Months Ended 2023 2022 Allowance for credit losses beginning balance $ — $ 387 Additions to allowance for which credit losses were not previously recorded 32,767 — Additions (reductions) to allowance for fixed maturities that previously had an allowance — — Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period — (387) Allowance for credit losses ending balance $ 32,767 $ — As of March 31, 2023 and December 31, 2022, the Company did not have any fixed maturities in non-accrual status. Other Long-Term Investments : Other long-term investments consist of the following assets: March 31, December 31, 2022 Investment funds $ 789,197 $ 768,689 Commercial mortgage loan participations 204,275 181,305 Other 29,139 26,022 Total $ 1,022,611 $ 976,016 The following table presents additional information about the Company's investment funds as of March 31, 2023 and December 31, 2022 at fair value: Fair Value Unfunded Commitments Investment Category March 31, December 31, 2022 March 31, Redemption Term/Notice Commercial mortgage loans $ 454,144 $ 431,405 $ 330,245 Fully redeemable and non-redeemable with varying terms. Opportunistic credit 157,899 158,524 — Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period. Infrastructure 158,036 159,534 21,366 Fully redeemable and non-redeemable with varying terms. Other 19,118 19,226 120,079 Total investment funds $ 789,197 $ 768,689 $ 471,690 The Company had $21 million of capital called during the year from existing investment funds. Our unfunded commitments were $472 million as of March 31, 2023. Commercial Mortgage Loan Participations (commercial mortgage loans): Summaries of commercial mortgage loans by property type and geographical location at March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Carrying Value % of Total Carrying Value % of Total Property type: Mixed use $ 59,965 29 $ 62,375 34 Hospitality 28,033 14 27,796 15 Retail 23,744 12 15,342 9 Industrial 27,259 13 27,248 15 Multi-family 57,206 28 42,232 23 Office 11,137 6 8,101 5 Total recorded investment 207,344 102 183,094 101 Less allowance for credit losses (3,069) (2) (1,789) (1) Carrying value, net of allowance for credit losses $ 204,275 100 $ 181,305 100 March 31, 2023 December 31, 2022 Carrying Value % of Total Carrying Value % of Total Geographic location: California $ 64,990 32 $ 64,477 36 Texas 23,132 12 22,905 13 New York 27,570 14 19,167 11 Washington 14,939 7 14,925 8 Massachusetts 14,925 7 — — Florida 33,217 16 33,182 18 Other 28,571 14 28,438 15 Total recorded investment 207,344 102 183,094 101 Less allowance for credit losses (3,069) (2) (1,789) (1) Carrying value, net of allowance for credit losses $ 204,275 100 $ 181,305 100 The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value (LTV) ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss. March 31, 2023 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,235 $ 123,466 $ 20,430 $ 168,131 81 70% to 80% — 7,222 1,238 8,460 4 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,035 15,411 — 22,446 11 Total $ 39,577 $ 146,099 $ 21,668 207,344 100 Less allowance for credit losses (3,069) Total, net of allowance for credit losses $ 204,275 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. December 31, 2022 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,221 $ 108,156 $ 12,018 $ 144,395 79 70% to 80% — 22,120 1,238 23,358 13 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,034 — — 7,034 4 Total $ 39,562 $ 130,276 $ 13,256 183,094 100 Less allowance for credit losses (1,789) Total, net of allowance for credit losses $ 181,305 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. As of March 31, 2023, the Company evaluated the commercial mortgage loan portfolio on a pool basis to determine the allowance for credit losses. At the end of the period, the Company had 25 loans in the portfolio. For the three months ended March 31, 2023, the allowance for credit losses increased $1.3 million. The provision for credit losses is included in "Realized gains (losses)" in the Condensed Consolidated Statements of Operations . Three Months Ended 2023 2022 Allowance for credit losses beginning balance $ 1,789 $ 827 Provision (reversal) for credit losses 1,280 — Allowance for credit losses ending balance $ 3,069 $ 827 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5—Commitments and Contingencies Guarantees : The Parent Company has guaranteed letters of credit in connection with its credit facility with a group of banks. The letters of credit were issued by TMK Re, Ltd., a wholly-owned subsidiary, to secure TMK Re, Ltd.’s obligation for claims on certain policies reinsured by TMK Re, Ltd. that were sold by other Globe Life insurance subsidiaries. These letters of credit facilitate TMK Re, Ltd.’s ability to reinsure the business of Globe Life's insurance carriers. The agreement was amended on September 30, 2021 and now expires in 2026. The maximum amount of letters of credit available is $250 million. The Parent Company would be liable to the extent that TMK Re, Ltd. does not pay the reinsured party. The amount outstanding at March 31, 2023 was $115 million. Litigation : Globe Life Inc. and its subsidiaries, in common with the insurance industry in general, are subject to litigation, including putative class action litigation, alleged breaches of contract, torts, including bad faith and fraud claims based on alleged wrongful or fraudulent acts of agents of the Parent Company's insurance subsidiaries, employment discrimination, and miscellaneous other causes of action. Based upon information presently available, and in light of legal and other factual defenses available to the Parent Company and its subsidiaries, management does not believe that it is reasonably possible that such litigation will have a material adverse effect on Globe Life's financial condition, future operating results or liquidity; however, assessing the eventual outcome of litigation necessarily involves forward-looking speculation as to judgments to be made by judges, juries and appellate courts in the future. This bespeaks caution, particularly in states with reputations for high punitive damage verdicts. Globe Life's management recognizes that large punitive damage awards bearing little or no relation to actual damages continue to be awarded by juries in jurisdictions in which the Company has substantial business, creating the potential for unpredictable material adverse judgments in any given punitive damage suit. |
Policy Liabilities
Policy Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Policyholder Account Balance [Abstract] | |
Policy Liabilities | Note 6—Policy Liabilities The liability for future policy benefits is determined based on the net level premium method, which requires the liability be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts: Life Present value of expected future net premiums American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538 Beginning balance at original discount rates 3,906,098 5,533,741 1,040,242 416,141 10,896,222 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (4,315) (29,595) (625) 1,652 (32,883) Adjusted balance at January 1, 2022 3,901,783 5,504,146 1,039,617 417,793 10,863,339 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 43,074 67,608 12,810 5,172 128,664 Net premiums collected (3) (120,203) (149,757) (31,627) (10,831) (312,418) Effect of changes in the foreign exchange rate 2,900 — — — 2,900 Ending balance at original discount rates 4,043,480 5,595,772 1,043,765 419,434 11,102,451 Effect of change from original to current discount rates 603,267 1,114,883 181,223 92,398 1,991,771 Balance at March 31, 2022 $ 4,646,747 $ 6,710,655 $ 1,224,988 $ 511,832 $ 13,094,222 Balance at January 1, 2023 $ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528 Beginning balance at original discount rates 4,246,723 5,680,864 1,066,123 449,209 11,442,919 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (29,981) (47,988) (5,590) (1,886) (85,445) Adjusted balance at January 1, 2023 4,216,742 5,632,876 1,060,533 447,323 11,357,474 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 47,898 70,991 13,288 5,670 137,847 Net premiums collected (3) (127,239) (153,919) (33,188) (11,557) (325,903) Effect of changes in the foreign exchange rate (3,999) — — — (3,999) Ending balance at original discount rates 4,325,957 5,718,900 1,070,775 448,677 11,564,309 Effect of change from original to current discount rates 141,680 391,650 57,308 34,379 625,017 Balance at March 31, 2023 $ 4,467,637 $ 6,110,550 $ 1,128,083 $ 483,056 $ 12,189,326 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Life Present value of expected future policy benefits American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308 Beginning balance at original discount rates 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (2,959) (25,850) 153 1,680 (26,976) Adjusted balance at January 1, 2022 7,741,242 8,131,409 3,206,317 3,268,986 22,347,954 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 100,336 106,928 42,230 48,280 297,774 Benefit payments (3) (104,321) (173,611) (63,457) (34,297) (375,686) Effect of changes in the foreign exchange rate 6,511 — — — 6,511 Ending balance at original discount rates 7,959,694 8,238,501 3,208,055 3,290,269 22,696,519 Effect of change from original to current discount rates 2,692,562 2,511,848 858,179 1,558,106 7,620,695 Balance at March 31, 2022 $ 10,652,256 $ 10,750,349 $ 4,066,234 $ 4,848,375 $ 30,317,214 Balance at January 1, 2023 $ 9,119,104 $ 9,225,451 $ 3,429,256 $ 3,976,150 $ 25,749,961 Beginning balance at original discount rates 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (31,526) (48,947) (7,054) (2,896) (90,423) Adjusted balance at January 1, 2023 8,378,235 8,428,945 3,265,926 3,400,808 23,473,914 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 109,329 112,768 43,256 50,378 315,731 Benefit payments (3) (96,674) (147,061) (54,730) (30,892) (329,357) Effect of changes in the foreign exchange rate (9,711) — — — (9,711) Ending balance at original discount rates 8,573,734 8,563,604 3,284,594 3,427,535 23,849,467 Effect of change from original to current discount rates 1,063,729 1,061,076 274,418 738,992 3,138,215 Balance at March 31, 2023 $ 9,637,463 $ 9,624,680 $ 3,559,012 $ 4,166,527 $ 26,987,682 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Life Net liability for future policy benefits as of March 31, 2022 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 3,916,214 $ 2,642,729 $ 2,164,290 $ 2,870,835 $ 11,594,068 Effect of changes in discount rate assumptions 2,089,295 1,396,965 676,956 1,465,708 5,628,924 Net liability for future policy benefits at current discount rates 6,005,509 4,039,694 2,841,246 4,336,543 17,222,992 Other Adjustments (1) (11) 2,820 (10,446) (43,598) (51,235) Net liability for future policy benefits, after other adjustments, at current discount rates $ 6,005,498 $ 4,042,514 $ 2,830,800 $ 4,292,945 $ 17,171,757 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Life Net liability for future policy benefits as of March 31, 2023 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 4,247,777 $ 2,844,704 $ 2,213,819 $ 2,978,858 $ 12,285,158 Effect of changes in discount rate assumptions 922,049 669,426 217,110 704,613 2,513,198 Net liability for future policy benefits at current discount rates 5,169,826 3,514,130 2,430,929 3,683,471 14,798,356 Other Adjustments (1) (46) 4,546 486 (36,765) (31,779) Net liability for future policy benefits, after other adjustments, at current discount rates $ 5,169,780 $ 3,518,676 $ 2,431,415 $ 3,646,706 $ 14,766,577 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts: Health Present value of expected future net premiums United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018 Beginning balance at original discount rates 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (49,560) (15,162) (15,462) (2,465) (1,880) (84,529) Adjusted balance at January 1, 2022 2,900,291 1,673,428 398,947 176,336 94,896 5,243,898 Issuances (1) 90,034 53,518 10,815 10,452 880 165,699 Interest accrual (2) 30,339 14,940 4,872 1,831 1,182 53,164 Net premiums collected (3) (62,895) (42,751) (12,883) (5,252) (2,550) (126,331) Effect of changes in the foreign exchange rate — — — 312 — 312 Ending balance at original discount rates 2,957,769 1,699,135 401,751 183,679 94,408 5,336,742 Effect of change from original to current discount rates 379,383 91,102 61,701 24,385 15,326 571,897 Balance at March 31, 2022 $ 3,337,152 $ 1,790,237 $ 463,452 $ 208,064 $ 109,734 $ 5,908,639 Balance at January 1, 2023 $ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ 90,143 $ 5,207,422 Beginning balance at original discount rates 2,941,261 1,729,219 415,442 192,631 87,751 5,366,304 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (34,132) (18,758) (16,585) (1,621) (2,573) (73,669) Adjusted balance at January 1, 2023 2,907,129 1,710,461 398,857 191,010 85,178 5,292,635 Issuances (1) 75,839 67,787 13,303 10,212 2,392 169,533 Interest accrual (2) 31,587 16,199 4,890 2,036 1,057 55,769 Net premiums collected (3) (65,914) (43,979) (12,403) (5,424) (2,661) (130,381) Effect of changes in the foreign exchange rate — — — (388) — (388) Ending balance at original discount rates 2,948,641 1,750,468 404,647 197,446 85,966 5,387,168 Effect of change from original to current discount rates 49,082 (86,054) 16,800 3,220 4,277 (12,675) Balance at March 31, 2023 $ 2,997,723 $ 1,664,414 $ 421,447 $ 200,666 $ 90,243 $ 5,374,493 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Health Present value of expected future policy benefits United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001 Beginning balance at original discount rates 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (50,453) (15,668) (15,790) (2,645) (2,025) (86,581) Adjusted balance at January 1, 2022 3,040,448 3,177,674 905,818 282,959 93,603 7,500,502 Issuances (1) 89,904 53,518 10,866 10,452 876 165,616 Interest accrual (2) 32,308 29,583 12,120 3,432 1,182 78,625 Benefit payments (3) (67,243) (28,494) (23,065) (5,044) (3,389) (127,235) Effect of changes in the foreign exchange rate — — — 557 — 557 Ending balance at original discount rates 3,095,417 3,232,281 905,739 292,356 92,272 7,618,065 Effect of change from original to current discount rates 413,068 244,358 176,686 59,275 14,762 908,149 Balance at March 31, 2022 $ 3,508,485 $ 3,476,639 $ 1,082,425 $ 351,631 $ 107,034 $ 8,526,214 Balance at January 1, 2023 $ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349 Beginning balance at original discount rates 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (31,443) (19,779) (15,995) (1,578) (2,302) (71,097) Adjusted balance at January 1, 2023 3,049,190 3,316,565 888,870 302,135 82,910 7,639,670 Issuances (1) 75,683 67,787 13,285 10,212 2,388 169,355 Interest accrual (2) 33,480 32,289 11,840 3,668 1,057 82,334 Benefit payments (3) (78,563) (29,261) (23,976) (7,137) (3,354) (142,291) Effect of changes in the foreign exchange rate — — — (708) — (708) Ending balance at original discount rates 3,079,790 3,387,380 890,019 308,170 83,001 7,748,360 Effect of change from original to current discount rates 52,672 (212,708) 59,977 18,363 4,089 (77,607) Balance at March 31, 2023 $ 3,132,462 $ 3,174,672 $ 949,996 $ 326,533 $ 87,090 $ 7,670,753 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Health Net liability for future policy benefits as of March 31, 2022 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates $ 137,648 $ 1,533,146 $ 503,988 $ 108,677 $ (2,136) $ 2,281,323 Effect of changes in discount rate assumptions 33,685 153,256 114,985 34,890 (564) 336,252 Net liability for future policy benefits at current discount rates 171,333 1,686,402 618,973 143,567 (2,700) 2,617,575 Other Adjustments (1,812) (10,847) 1,508 12 3,812 (7,327) Net liability for future policy benefits, after other adjustments, at current discount rates $ 169,521 $ 1,675,555 $ 620,481 $ 143,579 $ 1,112 $ 2,610,248 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Health Net liability for future policy benefits as of March 31, 2023 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates 131,149 1,636,912 485,372 110,724 (2,965) 2,361,192 Effect of changes in discount rate assumptions 3,590 (126,654) 43,177 15,143 (188) (64,932) Net liability for future policy benefits at current discount rates 134,739 1,510,258 528,549 125,867 (3,153) 2,296,260 Other Adjustments 1,771 (9,362) 4,348 333 4,162 1,252 Net liability for future policy benefits, after other adjustments, at current discount rates $ 136,510 $ 1,500,896 $ 532,897 $ 126,200 $ 1,009 $ 2,297,512 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. During the three-month periods ended March 31, 2023 and 2022, the Company's results for actual variances from expected experience produced a net reserve remeasurement gain of $659 thousand and a net reserve remeasurement loss of $3.8 million in the Condensed Consolidated Statements of Operations , respectively. The variance of actual experience from expected experience during the first quarter of 2023 was primarily due to favorable variances from mortality assumptions as compared to actual experience in our life insurance segment (a $2.7 million gain), and unfavorable variances from morbidity assumptions as compared to actual experience in our health insurance segment (a $2.0 million loss). The variance of actual experience from expected experience during the first quarter of 2022 was primarily due to unfavorable variances from mortality assumptions as compared to actual experience in our life insurance segment (a $5.8 million loss), and favorable variances from morbidity assumptions as compared to actual experience in our health insurance segment (a $2.0 million gain). The life segment has experienced lower claims in the first quarter of 2023 versus the prior year mainly driven by lower excess claims due to COVID and non-COVID causes, which was seen in the American Income, Direct to Consumer, and Liberty National channels. The health segment's utilization has returned to normal levels in 2023, specifically in the United American and Liberty National channels. There were no changes to the inputs, judgments, assumptions and methods used in measuring the liability for future policy benefits during the three-month periods ended March 31, 2023 and 2022. The following table reconciles the liability for future policy benefits to the C onsolidated B alance S heets as of March 31, 2023: At Original Discount Rates At Current Discount Rates As of March 31, As of March 31, 2023 2022 2023 2022 Life (1) : American Income $ 4,247,758 $ 3,916,187 $ 5,169,780 $ 6,005,498 Direct to Consumer 2,844,707 2,642,729 3,518,676 4,042,514 Liberty National 2,206,288 2,153,030 2,431,415 2,830,800 Other 2,952,802 2,846,161 3,646,706 4,292,945 Net liability for future policy benefits—long duration life 12,251,555 11,558,107 14,766,577 17,171,757 Health (1) : United American 130,992 135,891 136,510 169,521 Family Heritage 1,626,881 1,524,185 1,500,896 1,675,555 Liberty National 488,546 505,319 532,897 620,481 American Income 111,096 108,693 126,200 143,579 Direct to Consumer 961 1,004 1,009 1,112 Net liability for future policy benefits—long duration health 2,358,476 2,275,092 2,297,512 2,610,248 Deferred profit liability 177,248 184,451 177,248 184,451 Deferred annuity 907,797 1,027,087 907,797 1,027,087 Interest sensitive life 737,900 744,244 737,900 744,244 Other 9,540 8,118 9,540 8,118 Total future policy benefits $ 16,442,516 $ 15,797,099 $ 18,896,574 $ 21,745,905 (1) Balances are presented net of the reinsurance recoverable and the effects of flooring the liability. The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: Life Weighted-average Discount Rates March 31, 2023 March 31, 2022 American Income DTC Liberty National Other American Income DTC Liberty National Other Original discount rate 5.8 % 6.0 % 5.6 % 6.2 % 5.8 % 6.0 % 5.6 % 6.2 % Current discount rate 4.9 % 5.0 % 5.0 % 5.0 % 4.0 % 4.0 % 3.9 % 3.9 % Health Weighted-average Discount Rates March 31, 2023 March 31, 2022 United American Family Heritage Liberty National American Income DTC United American Family Heritage Liberty National American Income DTC Original discount rate 5.2 % 4.3 % 5.8 % 5.9 % 5.2 % 5.2 % 4.4 % 5.8 % 5.9 % 5.2 % Current discount rate 4.8 % 4.9 % 4.9 % 4.8 % 4.8 % 3.8 % 3.9 % 3.6 % 3.8 % 3.8 % The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: March 31, 2023 2022 At original discount rates At current discount rates At original discount rates At current discount rates Life American Income 22.90 23.33 22.80 23.78 Direct to Consumer 20.24 21.82 20.81 22.93 Liberty National 14.94 15.63 15.08 16.85 Other 16.52 18.23 16.76 19.59 Health United American 11.40 10.80 11.68 11.83 Family Heritage 14.91 14.43 15.28 15.80 Liberty National 9.31 9.66 9.01 10.11 American Income 12.15 12.74 12.45 13.95 Direct to Consumer 11.40 10.80 11.68 11.83 The following tables summarize the amount of gross premiums and interest, net of reinsurance, related to long duration life and health contracts that are recognized in the Condensed Consolidated Statements of Operations : Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest American Income $ 387,145 $ 61,431 $ 369,737 $ 57,262 Direct to Consumer 244,707 41,714 242,662 39,292 Liberty National 84,072 29,769 79,348 29,285 Other 51,835 44,275 52,387 42,697 Total $ 767,759 $ 177,189 $ 744,134 $ 168,536 Health Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest United American $ 97,833 $ 1,822 $ 92,266 $ 1,914 Family Heritage 96,090 15,977 89,540 14,545 Liberty National 46,745 6,920 47,496 7,226 American Income 28,096 1,632 27,937 1,601 Direct to Consumer 3,542 — 3,536 — Total $ 272,306 $ 26,351 $ 260,775 $ 25,286 Gross premiums are included within life and health premium on the Condensed Consolidated Statements of Operations , while the related interest expense is included in life and health policyholder benefits. The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums and expected future policy benefits, at both original and current discount rates, for life and health contracts: Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates American Income PV of expected future net premiums $ 7,617,532 $ 4,325,957 $ 4,467,637 $ 7,115,131 $ 4,043,480 $ 4,646,747 PV of expected future gross premiums 23,041,514 13,054,486 13,575,751 21,851,854 12,374,587 14,324,455 PV of expected future policy benefits 28,821,998 8,573,734 9,637,463 26,930,450 7,959,694 10,652,256 DTC PV of expected future net premiums $ 10,832,386 $ 5,718,900 $ 6,110,550 $ 10,630,110 $ 5,595,772 $ 6,710,655 PV of expected future gross premiums 17,479,516 9,165,113 9,773,835 17,414,120 9,103,648 10,912,941 PV of expected future policy benefits 25,582,750 8,563,604 9,624,680 24,876,834 8,238,501 10,750,349 Liberty National PV of expected future net premiums $ 1,889,419 $ 1,070,775 $ 1,128,083 $ 1,855,371 $ 1,043,765 $ 1,224,988 PV of expected future gross premiums 4,453,139 2,599,082 2,667,795 4,265,146 2,485,460 2,848,626 PV of expected future policy benefits 8,658,766 3,284,594 3,559,012 8,514,395 3,208,055 4,066,234 Other PV of expected future net premiums $ 919,924 $ 448,677 $ 483,056 $ 869,727 $ 419,434 $ 511,832 PV of expected future gross premiums 3,798,669 1,920,302 2,126,949 3,907,011 1,950,624 2,441,512 PV of expected future policy benefits 12,392,224 3,427,535 4,166,527 12,277,130 3,290,269 4,848,375 Total PV of expected future net premiums $ 21,259,261 $ 11,564,309 $ 12,189,326 $ 20,470,339 $ 11,102,451 $ 13,094,222 PV of expected future gross premiums 48,772,838 26,738,983 28,144,330 47,438,131 25,914,319 30,527,534 PV of expected future policy benefits 75,455,738 23,849,467 26,987,682 72,598,809 22,696,519 30,317,214 As of March 31, 2023 for the life segment using current discount rates, the Company anticipates $12.2 billion of expected future net premiums and $28.1 billion of expected future gross premiums. As of March 31, 2022 using current discount rates, the Company anticipated $13.1 billion in expected future net premiums and $30.5 billion of expected future gross premiums. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not. . Health Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates United American PV of expected future net premiums $ 4,685,306 $ 2,948,641 $ 2,997,723 $ 4,763,592 $ 2,957,769 $ 3,337,152 PV of expected future gross premiums 6,783,819 4,279,547 4,346,007 6,781,444 4,226,705 4,765,664 PV of expected future policy benefits 4,909,212 3,079,790 3,132,462 5,057,861 3,095,417 3,508,485 Family Heritage PV of expected future net premiums $ 2,908,079 $ 1,750,468 $ 1,664,414 $ 2,784,235 $ 1,699,135 $ 1,790,237 PV of expected future gross premiums 6,442,316 3,846,392 3,682,300 5,897,650 3,570,212 3,791,575 PV of expected future policy benefits 6,358,594 3,387,380 3,174,672 6,004,155 3,232,281 3,476,639 Liberty National PV of expected future net premiums $ 634,061 $ 404,647 $ 421,447 $ 641,225 $ 401,751 $ 463,452 PV of expected future gross premiums 2,232,290 1,396,334 1,468,763 2,174,779 1,356,873 1,577,158 PV of expected future policy benefits 1,575,745 890,019 949,996 1,594,836 905,739 1,082,425 American Income PV of expected future net premiums $ 351,655 $ 197,446 $ 200,666 $ 323,828 $ 183,679 $ 208,064 PV of expected future gross premiums 1,760,671 984,216 1,037,339 1,723,857 963,321 1,130,227 PV of expected future policy benefits 626,151 308,170 326,533 599,187 292,356 351,631 Direct to Consumer PV of expected future net premiums $ 131,187 $ 85,966 $ 90,243 $ 148,614 $ 94,408 $ 109,734 PV of expected future gross premiums 171,266 112,442 118,105 204,317 130,162 151,140 PV of expected future policy benefits 124,597 83,001 87,090 143,711 92,272 107,034 Total PV of expected future net premiums 8,710,288 5,387,168 5,374,493 8,661,494 5,336,742 5,908,639 PV of expected future gross premiums 17,390,362 10,618,931 10,652,514 16,782,047 10,247,273 11,415,764 PV of expected future policy benefits 13,594,299 7,748,360 7,670,753 13,399,750 7,618,065 8,526,214 As of March 31, 2023 for the health segment using current discount rates, the Company anticipates $5.4 billion of expected future net premiums and $10.6 billion of expected future gross premiums. As of March 31, 2022 using current discount rates, the Company anticipated $5.9 billion in expected future net premiums and $11.4 billion of expected future gross premiums. For each respective period, only expected future net premiums are included in the determination of the liability for future policy benefits on the balance sheet, while the difference between the expected future gross premiums and the expected future net premiums is not. The following table summarizes the balances of, and changes in, policyholders’ account balances as of March 31, 2023 and 2022: Policyholders' Account Balances 2023 2022 Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Balance at January 1 , $ 739,105 954,318 123,234 $ 745,335 $ 1,033,525 $ 99,468 Issuances — 202 — — 340 — Premiums received 6,030 4,776 21,662 6,297 8,216 2,044 Policy charges (3,319) — — (3,474) — — Surrenders and withdrawals (5,384) (43,533) (3,303) (5,280) (11,873) (2,805) Benefit payments (7,844) (15,784) — (8,999) (12,073) — Interest credited 7,135 7,560 1,238 7,170 8,290 1,125 Other 2,177 258 (145) 3,195 662 292 Balance at March 31 , $ 737,900 $ 907,797 $ 142,686 $ 744,244 $ 1,027,087 $ 100,124 Weighted-average credit rate 3.92 % 3.29 % 3.78 % 3.91 % 3.26 % 4.58 % Net amount at risk $ 1,847,128 N/A N/A $ 1,952,631 N/A N/A Cash surrender value 676,247 907,797 142,686 693,201 1,027,064 100,124 The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policy holders and the respective guaranteed minimums: At March 31, 2023 Range of guaranteed minimum crediting rates Interest Sensitive Life (1) Deferred Annuity (1) Other Policyholders' Funds (1) At guaranteed minimum Less than 3.00% $ — $ 1,971 $ 43,191 3.00%-3.99% 28,956 698,952 4,097 4.00%-4.99% 619,411 206,874 57,596 Greater than 5.00% 89,533 — 37,802 Total $ 737,900 $ 907,797 $ 142,686 (1) All of the Company's policyholders' account balances had actual crediting rates at the guaranteed minimum. At March 31, 2022 Range of guaranteed minimum crediting rates Interest Sensitive Life (1) Deferred Annuity (1) Other Policyholders' Funds (1) At guaranteed minimum Less than 3.00% $ — $ 2,254 $ — 3.00%-3.99% 28,684 811,865 2,911 4.00%-4.99% 626,179 212,968 58,990 Greater than 5.00% 89,381 — 38,223 Total $ 744,244 $ 1,027,087 $ 100,124 |
Deferred Acquisition Costs
Deferred Acquisition Costs | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Acquisition Costs | Note 7—Deferred Acquisition Costs The following tables roll forward the deferred policy acquisition costs for the three months ended March 31, 2023 and 2022: Life American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015 Capitalizations 114,428 48,216 20,465 3,487 186,596 Amortization expense (33,513) (23,172) (11,046) (4,198) (71,929) Foreign exchange adjustment 1,738 — — — 1,738 Experience adjustment — — — — — Balance at March 31, 2022 $ 2,042,907 $ 1,608,739 $ 575,838 $ 300,936 $ 4,528,420 Balance at January 1, 2023 $ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291 Capitalizations 115,395 47,410 24,221 3,321 190,347 Amortization expense (38,299) (24,753) (12,412) (4,125) (79,589) Foreign exchange adjustment (2,787) — — — (2,787) Experience adjustment — — — — — Balance at March 31, 2023 $ 2,332,600 $ 1,699,588 $ 622,532 $ 297,542 $ 4,952,262 Health United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082 Capitalizations 580 12,363 4,121 3,155 — 20,219 Amortization expense (1,516) (6,405) (3,320) (829) (44) (12,114) Foreign exchange adjustment — — — 88 — 88 Experience adjustment — — — — — — Balance at March 31, 2022 $ 80,204 $ 394,925 $ 128,338 $ 51,820 $ 1,988 $ 657,275 Balance at January 1, 2023 $ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763 Capitalizations 507 15,097 4,882 3,143 — 23,629 Amortization expense (1,513) (6,560) (3,250) (938) (47) (12,308) Foreign exchange adjustment — — — (126) — (126) Experience adjustment — — — — — — Balance at March 31, 2023 $ 76,388 $ 425,145 $ 134,728 $ 59,890 $ 1,807 $ 697,958 The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of March 31, 2023: March 31, 2023 2022 Life American Income $ 2,332,600 $ 2,042,907 Direct to Consumer 1,699,588 1,608,739 Liberty National 622,532 575,838 Other 297,542 300,936 Total DAC - Life 4,952,262 4,528,420 Health United American 76,388 80,204 Family Heritage 425,145 394,925 Liberty National 134,728 128,338 American Income 59,890 51,820 Direct to Consumer 1,807 1,988 Total DAC - Health 697,958 657,275 Annuity 4,218 5,988 Tota l $ 5,654,438 $ 5,191,683 |
Liability for Unpaid Claims
Liability for Unpaid Claims | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Liability for Unpaid Claims | Note 8—Liability for Unpaid Claims Activity in the liability for unpaid health claims is summarized as follows: March 31, December 31, Balance at beginning of period $ 182,202 $ 171,109 Incurred related to: Current year 173,865 676,190 Prior year (1,923) (15,631) Total incurred 171,942 660,559 Paid related to: Current year 72,870 517,856 Prior year 99,876 131,610 Total paid 172,746 649,466 Balance at end of period $ 181,398 $ 182,202 Below is the reconciliation of the liability of " Policy claims and other benefits payable" in the Consolidated Balance Sheets . March 31, December 31, Policy claims and other benefits payable: Life insurance $ 307,898 $ 325,017 Health insurance 181,398 182,202 Total $ 489,296 $ 507,219 |
Postretirement Benefits
Postretirement Benefits | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Postretirement Benefits | Note 9—Postretirement Benefits Globe Life has qualified noncontributory defined benefit pension plans (Pension Plans) and contributory savings plans that cover substantially all employees. There is also a nonqualified noncontributory supplemental executive retirement plan (SERP) that covers a limited number of officers. The tables included herein will focus on the Pension Plans and SERP. Pension Assets: The following table presents the assets of the Company's Pension Plans at March 31, 2023 and December 31, 2022. Pension Assets by Component at March 31, 2023 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % of Corporate bonds: Financial $ — $ 22,482 $ — $ 22,482 4 Utilities — 20,838 — 20,838 4 Energy — 7,564 — 7,564 2 Other corporates — 26,433 — 26,433 5 Total corporate bonds — 77,317 — 77,317 15 Exchange traded fund (1) 276,478 — — 276,478 53 U.S. Government and Agency — 76,643 — 76,643 15 Other bonds — 202 — 202 — Guaranteed annuity contract (2) — 43,297 — 43,297 8 Short-term investments 23,016 — — 23,016 4 Other 12,379 — — 12,379 2 $ 311,873 $ 197,459 $ — 509,332 97 Other long-term investments (3) 13,767 3 Total pension assets $ 523,099 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan. (3) Included in other long-term investments is an investment fund that reports the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Globe Life Inc. Pension Plan owns less than 1% of the investment fund. As of March 31, 2023, the expected term of the investment fund is approximately 2 years and the commitment of the investment is fully funded. The investment is non-redeemable. Pension Assets by Component at December 31, 2022 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % of Corporate bonds: Financial $ — $ 35,649 $ — $ 35,649 7 Utilities — 23,436 — 23,436 5 Energy — 12,776 — 12,776 3 Other corporates — 56,786 — 56,786 11 Total corporate bonds — 128,647 — 128,647 26 Exchange traded fund (1) 258,297 — — 258,297 52 U.S. Government and Agency — 44,213 — 44,213 9 Other bonds — 200 — 200 — Guaranteed annuity contract (2) — 43,116 — 43,116 8 Short-term investments 4,467 — — 4,467 1 Other 6,547 — — 6,547 1 $ 269,311 $ 216,176 $ — 485,487 97 Other long-term investments (3) 14,288 3 Total pension assets $ 499,775 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan. (3) Included in other long-term investments is an investment fund that reports the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Globe Life Inc. Pension Plan owns approximately 1% of the investment fund. As of December 31, 2022, the expected term of the investment fund was approximately 3 years and the commitment of the investment is fully funded. The investment is non-redeemable. SERP : The following table includes information regarding the SERP. Three Months Ended 2023 2022 Premiums paid for insurance coverage $ 443 $ 443 March 31, December 31, Total investments: Company owned life insurance $ 54,788 $ 54,681 Exchange traded funds 74,632 71,258 $ 129,420 $ 125,939 Pension Plans and SERP Liabilities : The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2023 and December 31, 2022. March 31, December 31, Pension Plans $ 517,770 $ 492,103 SERP 70,499 70,464 Pension benefit obligation $ 588,269 $ 562,567 Net Periodic Benefit Cost: The following table presents the net periodic benefit costs for the Pension Plans and SERP by expense components for the three months ended March 31, 2023 and 2022. Components of Net Periodic Benefit Cost Three Months Ended 2023 2022 Service cost $ 5,392 $ 8,655 Interest cost 7,834 6,123 Expected return on assets (9,656) (8,885) Amortization: Prior service cost 269 158 Actuarial (gain) loss (52) 3,209 Net periodic benefit cost $ 3,787 $ 9,260 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 10—Earnings Per Share Earnings per Share : A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended 2023 2022 Basic weighted average shares outstanding 96,388,211 99,273,616 Weighted average dilutive options outstanding 1,522,889 976,758 Diluted weighted average shares outstanding 97,911,100 100,250,374 Antidilutive shares 209,870 563,991 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 11—Debt The following table presents information about the terms and outstanding balances of Globe Life's debt. Selected Information about Debt Issues As of March 31, December 31, Instrument Issue Date Maturity Date Coupon Rate Par Unamortized Discount & Issuance Costs Book Fair Book Senior notes 5/27/1993 5/15/2023 7.875% $ 165,612 $ (38) $ 165,574 $ 164,746 $ 165,500 Senior notes 9/27/2018 9/15/2028 4.550% 550,000 (4,229) 545,771 546,348 545,601 Senior notes 8/21/2020 8/15/2030 2.150% 400,000 (3,668) 396,332 323,984 396,219 Senior notes (1) 5/19/2022 6/15/2032 4.800% 250,000 (4,412) 245,588 241,275 245,493 Junior subordinated debentures 11/17/2017 11/17/2057 5.275% 125,000 (1,585) 123,415 124,265 123,410 Junior subordinated debentures 6/14/2021 6/15/2061 4.250% 325,000 (7,752) 317,248 248,300 317,229 1,815,612 (21,684) 1,793,928 1,648,918 1,793,452 Less current maturity of long-term debt 165,612 (38) 165,574 164,746 165,500 Total long-term debt 1,650,000 (21,646) 1,628,354 1,484,172 1,627,952 Current maturity of long-term debt 165,612 (38) 165,574 164,746 165,500 FHLB borrowings 45,000 — 45,000 45,000 — Commercial paper 305,000 (1,327) 303,673 303,673 283,603 Total short-term debt 515,612 (1,365) 514,247 513,419 449,103 Total deb t $ 2,165,612 $ (23,011) $ 2,142,601 $ 1,997,591 $ 2,077,055 (1) An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation. The commercial paper has the highest priority of all unsecured debt, followed by senior notes then junior subordinated debentures. The senior notes due 2023 are noncallable, the remaining senior notes are callable under a make-whole provision, and the junior subordinated debentures are subject to an optional redemption five years from issuance. Interest on the 4.25% junior subordinated debentures is payable quarterly while all other long-term debt is payable semi-annually. Federal Home Loan Bank (FHLB) : FHLB membership provides our insurance subsidiaries with access to various low-cost collateralized borrowings and funding agreements. The membership requires ownership of FHLB common stock, as well as the purchase of activity-based common stock equal to approximately 4.1% of outstanding borrowings. Globe Life owns $16.0 million in FHLB common stock as of March 31, 2023 and $14.3 million as of December 31, 2022. The FHLB stock is restricted for the duration of the membership and recorded at cost (par) as required by applicable guidance. The FHLB stock is included in "Other long-term investments " in the Consolidated Balance Sheets. Borrowings with the FHLB are subject to the availability of pledged assets at Globe Life. As of March 31, 2023, Globe Life's maximum borrowing capacity under the FHLB facility was approximately $633 million, based on pledged assets with a fair value of $850 million. As of March 31, 2023, $43 million in funding agreements were outstanding with the FHLB, compared to $23 million as of December 31, 2022. This amount is included in "Other policyholders' funds" on the Consolidated Balance Sheets . In addition, the Company had $45 million in short-term borrowings from the FHLB as of March 31, 2023, compared to $0 as of December 31, 2022, and this amount is recorded in "Short-term debt" on the Consolidated Balance Sheets . |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Note 12—Business Segments Globe Life is organized into four segments: life insurance, supplemental health insurance, annuities, and investments. In addition, other expenses not included in these segments are reported in "Corporate & Other." Globe Life's reportable insurance segments are based on the insurance product lines it markets and administers: life insurance, supplemental health insurance, and annuities. These major product lines are set out as reportable segments because of the common characteristics of products within these categories, comparability of margins, and the similarity in regulatory environment and management techniques. There is also an investment segment that manages the investment portfolio and cash flow for the insurance segments and the corporate function, which has been retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest on debt. The Company's chief operating decision makers evaluate the overall performance of the operations of the Company in accordance with these segments. Life insurance products marketed by Globe Life include traditional whole life and term life insurance. An immaterial amount of annuities sold as companion products are included in the life segment. Health insurance products are generally guaranteed renewable and include Medicare Supplement, critical illness, accident, and limited-benefit supplemental hospital and surgical coverage. Annuities include fixed-benefit contracts. The following tables present segment premium revenue by each of Globe Life's distribution channels. Three Months Ended March 31, 2023 Life Health Annuity Total Distribution Channel Amount % of Amount % of Amount % of Amount % of American Income $ 387,512 50 $ 29,594 9 $ — — $ 417,106 38 Direct to Consumer 247,667 32 17,248 5 — — 264,915 24 Liberty National 85,203 11 46,972 15 — — 132,175 12 United American 1,882 — 132,607 41 — — 134,489 12 Family Heritage 1,480 — 96,072 30 — — 97,552 9 Other 48,853 7 — — — — 48,853 5 $ 772,597 100 $ 322,493 100 $ — — $ 1,095,090 100 Three Months Ended March 31, 2022 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total American Income $ 370,106 49 $ 28,766 9 $ — — $ 398,872 37 Direct to Consumer 245,732 33 17,928 6 — — 263,660 25 Liberty National 80,560 11 47,760 15 — — 128,320 12 United American 2,074 — 131,690 42 — — 133,764 13 Family Heritage 1,359 — 89,540 28 — — 90,899 8 Other 49,297 7 — — — — 49,297 5 $ 749,128 100 $ 315,684 100 $ — — $ 1,064,812 100 Due to the nature of the life insurance industry, Globe Life has no individual or group that would be considered a major customer. Substantially all of Globe Life's business is conducted in the United States. The measure of profitability established by the chief operating decision makers for the insurance segments is underwriting margin before other income and administrative expenses, in accordance with the manner in which the segments are managed. It essentially represents gross profit margin on insurance products before insurance administrative expenses and consists primarily of premium less net policy benefits, acquisition expenses, and commissions. Required interest on policy liabilities is reflected as a component of the Investment segment (rather than as a component of underwriting margin in the insurance and annuity segments) in order to match this cost with the investment income earned on the assets supporting the policy liabilities. The measure of profitability for the Investment segment is excess investment income, representing the income earned on the investment portfolio in excess of policy requirements. During the implementation of ASU 2018-12, the Company reviewed its segment disclosures and modified the measure of profitability of our Investment Segment due to the adoption impact of the standard and to align more appropriately with how we view and measure this segment. As of January 1, 2023, this measure was retrospectively adjusted to exclude the interest on deferred acquisition costs due to the adoption of ASU 2018-12 and the interest expense on debt. Other than the above-mentioned interest allocations, no other intersegment revenues or expenses are recognized. Expenses directly attributable to corporate operations are included in the “Corporate & Other” category. Stock-based compensation expense is considered a corporate expense by Globe Life management and is included in this category. All other unallocated revenues and expenses on a pretax basis, including insurance administrative expense and interest on debt, are also included in the “Corporate & Other” segment category. Globe Life holds a sizable investment portfolio to support its insurance liabilities, the yield from which is used to offset policy benefit, acquisition, administrative and tax expenses. This yield or investment income is taken into account when establishing premium rates and profitability expectations for its insurance products. From time to time, investments are sold or called, or experience a credit loss event, each of which is reflected by the Company as realized gain (loss)—investments. These gains or losses generally occur as a result of disposition due to issuer calls, compliance with Company investment policies, or other reasons often beyond management’s control. Unlike investment income, realized gains and losses are incidental to insurance operations, and only overall yields are considered when setting premium rates or insurance product profitability expectations. While these gains and losses are not relevant to segment profitability or core operating results, they can have a material positive or negative result on net income. For these reasons, management removes realized investment gains and losses when it views its segment operations. Management removes items that are related to prior periods when evaluating the operating results of current periods. Management also removes non-operating items unrelated to the Company's core insurance activities when evaluating those results. Therefore, these items are excluded in its presentation of segment results because accounting guidance requires that operating segment results be presented as management views its business. With the exception of the administrative settlements noted in the paragraphs above, all of these items are included in “Other operating expense” in the Condensed Consolidated Statements of Operations for the appropriate year. See additional detail below in the tables. The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income. Three Months Ended March 31, 2023 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 772,597 $ 322,493 $ — $ — $ — $ — $ 1,095,090 Net investment income — — — 257,105 — — 257,105 Other income — — — — 50 — 50 Total revenue 772,597 322,493 — 257,105 50 — 1,352,245 Expenses: Policy benefits 507,977 190,962 7,541 1,447 — — 707,927 Required interest on reserves (189,821) (26,323) (10,259) 226,403 — — — Amortization of acquisition costs 79,589 12,308 425 — — — 92,322 Commissions, premium taxes, and non-deferred acquisition costs 83,578 54,214 5 — — — 137,797 Insurance administrative expense (1) — — — — 73,907 73,907 Parent expense — — — — 2,585 — 2,585 Stock-based compensation expense — — — — 7,679 — 7,679 Interest expense — — — — 24,867 — 24,867 Total expenses 481,323 231,161 (2,288) 227,850 109,038 — 1,047,084 Subtotal 291,274 91,332 2,288 29,255 (108,988) — 305,161 Non-operating items — — — — — — Measure of segment profitability (pretax) $ 291,274 $ 91,332 $ 2,288 $ 29,255 $ (108,988) $ — 305,161 Realized gain (loss)—investments (30,927) Income before income taxes per Condensed Consolidated Statements of Operations $ 274,234 (1) Administrative expense is not allocated to insurance segments. Three Months Ended March 31, 2022 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 749,128 $ 315,684 $ — $ — $ — $ — $ 1,064,812 Net investment income — — — 244,894 — — 244,894 Other income — — — — 164 — 164 Total revenue 749,128 315,684 — 244,894 164 — 1,309,870 Expenses: Policy obligations 495,429 189,018 8,642 1,060 — — 694,149 Required interest on reserves (181,372) (25,270) (11,367) 218,009 — — — Amortization of acquisition costs 71,929 12,114 453 — — — 84,496 Commissions, premium taxes, and non-deferred acquisition costs 73,548 51,952 9 — — — 125,509 Insurance administrative expense (1) — — — — 72,565 112 (2) 72,677 Parent expense — — — — 2,640 2,640 Stock-based compensation expense — — — — 9,035 — 9,035 Interest expense — — — — 19,944 — 19,944 Total expenses 459,534 227,814 (2,263) 219,069 104,184 112 1,008,450 Subtotal 289,594 87,870 2,263 25,825 (104,020) (112) 301,420 Non-operating items — — — — — 112 (2) 112 Measure of segment profitability (pretax) $ 289,594 $ 87,870 $ 2,263 $ 25,825 $ (104,020) $ — 301,532 Realized gain (loss)—investments (7,244) Non-operating expenses (112) Income before income taxes per Condensed Consolidated Statements of Operations $ 294,176 (1) Administrative expense is not allocated to insurance segments. (2) Non-operating expenses. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13—Subsequent Events Subsequent to the balance sheet date, the Company closed on a $170 million delayed draw term loan in April 2023 with an 18-month term and a variable interest rate. The proceeds from the term loan will be used to retire the 7.875% Senior Notes maturing on May 15, 2023. During the quarter, we reviewed available information to evaluate whether an expected credit loss allowance should be established related to our holdings of First Republic Bank. Based on our review, which included analyst reports, public company information, and investment and business news relative to current events, we determined no allowance was needed. Subsequent to March 31, 2023, it was announced First Republic Bank had entered receivership effective April 30, 2023. The Company had $38.6 million outstanding, at amortized cost, with First Republic Bank as of March 31, 2023 with no associated allowance for credit losses. As of May 9, 2023, the fair value of the investment in First Republic Bank was $0.4 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation : The accompanying condensed consolidated financial statements of Globe Life have been prepared in accordance with the instructions to Form 10-Q. Therefore, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America (GAAP) for annual financial statements. However, in the opinion of management, these statements include all adjustments, consisting of normal recurring adjustments, which are necessary for a fair presentation of the condensed consolidated financial position at March 31, 2023, and the condensed consolidated results of operations, comprehensive income, and cash flows for the periods ended March 31, 2023 and 2022. The interim period condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements that are included in the Form 10-K filed with the Securities Exchange Commission (SEC) on February 23, 2023. |
Use of Estimates | Use of Estimates : The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. See further documentation in the significant accounting policies or the accompanying notes. |
Significant Accounting Policy Updates | Significant Accounting Policy Updates : The following accounting policies were updated since the 2022 Form 10-K due to the adoption of ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (ASU 2018-12). Refer to Note 2—New Acc ounting Stan dards |
Future Policy Benefits | Future Policy Benefits— The liability for future policy benefits for traditional and limited-payment long duration life and health products comprises approximately 91% of the total liability for future policy benefits. The liability is determined each reporting period based on the net level premium method. This method requires the liability for future policy benefits be calculated as the present value of estimated future policyholder benefits and the related termination expenses, less the present value of estimated future net premiums to be collected from policyholders. Net level premiums reflect a recomputed net premium ratio 1 using actual experience since the issue date or the Transition Date, and expected future experience. The liability is accrued as premium revenue is recognized and adjusted for differences between actual and expected experience. Long-duration insurance contracts issued by the Company are grouped into cohorts based on the contract issue year, distribution channel, legal entity and product type. Both the present value of expected future benefit payments and the present value of expected future net premiums are based primarily on assumptions of discount rates, mortality, morbidity, lapse, and persistency. Each quarter, the Company remeasures its liability for future policy benefits using current discount rates with the effect of the change recognized in Other Comprehensive Income, a component of shareholders’ equity. In addition, the Company recognizes a liability remeasurement gain or loss within the Condensed Consolidated Statements of Operations using original discount rates, and relating to actual experience under the net premium calculation, as compared to the prior reporting period assumptions. The Company reviews, and updates as necessary, its cash flow assumptions (mortality, morbidity, lapses and persistency) used to calculate the change in the liability for future policy benefits at least annually. These cash flow assumptions are reviewed at the same time every year, or more frequently, if suggested by experience. If cash flow assumptions are changed, the net premium ratio is recalculated from the original issue date, or the Transition Date, using actual experience and projected future cash flows. When the expected future net premiums exceed the expected future gross premiums, or the present value of future policyholder benefits exceeds the present value of expected future gross premiums, the liability for future policy benefits is adjusted with changes recognized in policyholder benefits on the Condensed Consolidated Statements of Operations . The cash flow assumptions do not include an adjustment for adverse deviation. Mortality tables used for individual life insurance include various industry tables and reflect modifications based on Company experience. Morbidity assumptions for individual health are based on Company experience and industry data. Lapse and persistency assumptions are based on Globe Life's experience. The liability for future policy benefits is discounted as noted above, using a current upper-medium grade fixed-income instrument yield that reflects the duration characteristics of the liability for future policy benefits. The methodology for determining current discount rates consists of constructing a discount rate curve intended to be reflective of the currency and tenor of the insurance liability cash flows. The methodology is designed to prioritize observable inputs based on market data available in the local debt markets denominated in the same currency as the policies. For the discount rates applicable to tenors for which the single-A debt market is not liquid or there is little or no observable market data, the Company will use estimation techniques consistent with the fair value guidance in ASC 820. We further accrete interest as a component of policyholder benefits using the original discount rate that is locked-in during the year of contract issuance. The original discount rates (or the locked-in discount rates) are used for interest accretion purposes and for the determination of net premiums, whereas the current discount rates are used for purposes of valuing the liability. The liability for future policy benefits for annuity and interest sensitive life-type products is represented by policy account value. For limited-payment contracts, a deferred profit liability is also recorded, with changes recognized in income over the life of the contract in proportion to the amount of insurance in force. |
Deferred Acquisition Costs | Deferred Acquisition Costs— Certain costs of acquiring new insurance business are deferred and recorded as an asset. These costs are capitalized on a grouped contract basis and amortized over the expected term of the related contracts, and are essential for the acquisition of new insurance business. Deferred acquisition costs (DAC) are directly related to the successful issuance of an insurance contract, and primarily include sales commissions, policy issue costs, direct to consumer advertising costs, and underwriting costs. Additionally, DAC includes the value of business acquired (VOBA), which are the costs of acquiring blocks of insurance from other companies or through the acquisition of other companies. These costs represent the difference between the fair value of the contractual insurance assets acquired and liabilities assumed, compared against the assets and liabilities for insurance contracts that the Company issues or holds measured in accordance with GAAP. DAC is amortized on a constant-level basis over the expected term of the grouped contracts, with the related expense included in amortization of deferred acquisition costs on the Condensed Consolidated Statements of Operations . The in-force metric used to compute the DAC amortization rate is annualized premium in force. The assumptions used to amortize acquisition costs include mortality, morbidity, and persistency. These assumptions are reviewed at least annually and revised in conjunction with any change in the future policy benefit assumptions. The effect of changes in the assumptions are recognized over the remaining expected contract term as a revision of future amortization amounts. |
Accounting Pronouncements Adopted and Accounting Pronouncements Yet to be Adopted | Accounting Pronouncements Adopted in the Current Year : On January 1, 2023, the Company adopted ASU 2018-12 on a modified retrospective basis as of the transition date (Transition Date) of January 1, 2021 . Accounting Pronouncements Yet to be Adopted : ASU No. 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, adds disclosure requirements specific to equity securities subject to contractual sale restrictions. The disclosures clarify the nature of the contractual sale as well as the duration of the restriction and the circumstances that could cause a lapse in the restriction. This standard is effective for the Company on January 1, 2024, and will be implemented on a prospective basis. The Company does not expect the standard will have a material impact on the Consolidated Financial Statements. |
New Accounting Standards (Table
New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Liability for Future Policy Benefit, Activity | The following tables summarize the balance of and changes to the liability for future policy benefits for traditional life and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12: Net Liability for Future Policy Benefits - Long Duration Life American Income DTC Liberty National Other Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 3,541,317 $ 2,492,226 $ 2,140,071 $ 2,736,804 $ 10,910,418 Effect of changes in discount rate assumptions 3,334,600 2,195,430 1,229,610 2,297,835 9,057,475 Effect of capping and flooring (1) — 16,899 2,433 2 19,334 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 6,875,917 $ 4,704,555 $ 3,372,114 $ 5,034,641 $ 19,987,227 Net liability for Future Policy Benefits - Long Duration Health United American Family Heritage Liberty National American Income DTC Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 131,505 $ 1,383,128 $ 501,312 $ 101,998 $ (2,941) $ 2,115,002 Effect of changes in discount rate assumptions 75,652 497,250 219,992 60,366 346 853,606 Effect of capping and flooring (1) 6,506 — 19,324 — 4,193 30,023 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 213,663 $ 1,880,378 $ 740,628 $ 162,364 $ 1,598 $ 2,998,631 The following table presents total policy liabilities, both before and after the Transition Date: January 1, December 31, 2021 2020 Future policy benefits: Net liability for future policy benefits—long duration life $ 19,987,227 $ 10,910,418 Net liability for future policy benefits—long duration health 2,998,631 2,115,002 Additional insurance liabilities (1),(2) 2,008,399 2,218,116 Total future policy benefits 24,994,257 15,243,536 Unearned and advance premium (1) 243,369 61,728 Policy claims and other benefits payable (1) 473,524 399,507 Other policyholders' funds (1) 98,459 97,968 Total policy liabilities $ 25,809,609 $ 15,802,739 (1) In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidated Balance Sheets as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below. (2) The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Liabilities The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts: Life Present value of expected future net premiums American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538 Beginning balance at original discount rates 3,906,098 5,533,741 1,040,242 416,141 10,896,222 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (4,315) (29,595) (625) 1,652 (32,883) Adjusted balance at January 1, 2022 3,901,783 5,504,146 1,039,617 417,793 10,863,339 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 43,074 67,608 12,810 5,172 128,664 Net premiums collected (3) (120,203) (149,757) (31,627) (10,831) (312,418) Effect of changes in the foreign exchange rate 2,900 — — — 2,900 Ending balance at original discount rates 4,043,480 5,595,772 1,043,765 419,434 11,102,451 Effect of change from original to current discount rates 603,267 1,114,883 181,223 92,398 1,991,771 Balance at March 31, 2022 $ 4,646,747 $ 6,710,655 $ 1,224,988 $ 511,832 $ 13,094,222 Balance at January 1, 2023 $ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528 Beginning balance at original discount rates 4,246,723 5,680,864 1,066,123 449,209 11,442,919 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (29,981) (47,988) (5,590) (1,886) (85,445) Adjusted balance at January 1, 2023 4,216,742 5,632,876 1,060,533 447,323 11,357,474 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 47,898 70,991 13,288 5,670 137,847 Net premiums collected (3) (127,239) (153,919) (33,188) (11,557) (325,903) Effect of changes in the foreign exchange rate (3,999) — — — (3,999) Ending balance at original discount rates 4,325,957 5,718,900 1,070,775 448,677 11,564,309 Effect of change from original to current discount rates 141,680 391,650 57,308 34,379 625,017 Balance at March 31, 2023 $ 4,467,637 $ 6,110,550 $ 1,128,083 $ 483,056 $ 12,189,326 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Life Present value of expected future policy benefits American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308 Beginning balance at original discount rates 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (2,959) (25,850) 153 1,680 (26,976) Adjusted balance at January 1, 2022 7,741,242 8,131,409 3,206,317 3,268,986 22,347,954 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 100,336 106,928 42,230 48,280 297,774 Benefit payments (3) (104,321) (173,611) (63,457) (34,297) (375,686) Effect of changes in the foreign exchange rate 6,511 — — — 6,511 Ending balance at original discount rates 7,959,694 8,238,501 3,208,055 3,290,269 22,696,519 Effect of change from original to current discount rates 2,692,562 2,511,848 858,179 1,558,106 7,620,695 Balance at March 31, 2022 $ 10,652,256 $ 10,750,349 $ 4,066,234 $ 4,848,375 $ 30,317,214 Balance at January 1, 2023 $ 9,119,104 $ 9,225,451 $ 3,429,256 $ 3,976,150 $ 25,749,961 Beginning balance at original discount rates 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (31,526) (48,947) (7,054) (2,896) (90,423) Adjusted balance at January 1, 2023 8,378,235 8,428,945 3,265,926 3,400,808 23,473,914 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 109,329 112,768 43,256 50,378 315,731 Benefit payments (3) (96,674) (147,061) (54,730) (30,892) (329,357) Effect of changes in the foreign exchange rate (9,711) — — — (9,711) Ending balance at original discount rates 8,573,734 8,563,604 3,284,594 3,427,535 23,849,467 Effect of change from original to current discount rates 1,063,729 1,061,076 274,418 738,992 3,138,215 Balance at March 31, 2023 $ 9,637,463 $ 9,624,680 $ 3,559,012 $ 4,166,527 $ 26,987,682 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Life Net liability for future policy benefits as of March 31, 2022 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 3,916,214 $ 2,642,729 $ 2,164,290 $ 2,870,835 $ 11,594,068 Effect of changes in discount rate assumptions 2,089,295 1,396,965 676,956 1,465,708 5,628,924 Net liability for future policy benefits at current discount rates 6,005,509 4,039,694 2,841,246 4,336,543 17,222,992 Other Adjustments (1) (11) 2,820 (10,446) (43,598) (51,235) Net liability for future policy benefits, after other adjustments, at current discount rates $ 6,005,498 $ 4,042,514 $ 2,830,800 $ 4,292,945 $ 17,171,757 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Life Net liability for future policy benefits as of March 31, 2023 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 4,247,777 $ 2,844,704 $ 2,213,819 $ 2,978,858 $ 12,285,158 Effect of changes in discount rate assumptions 922,049 669,426 217,110 704,613 2,513,198 Net liability for future policy benefits at current discount rates 5,169,826 3,514,130 2,430,929 3,683,471 14,798,356 Other Adjustments (1) (46) 4,546 486 (36,765) (31,779) Net liability for future policy benefits, after other adjustments, at current discount rates $ 5,169,780 $ 3,518,676 $ 2,431,415 $ 3,646,706 $ 14,766,577 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts: Health Present value of expected future net premiums United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018 Beginning balance at original discount rates 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (49,560) (15,162) (15,462) (2,465) (1,880) (84,529) Adjusted balance at January 1, 2022 2,900,291 1,673,428 398,947 176,336 94,896 5,243,898 Issuances (1) 90,034 53,518 10,815 10,452 880 165,699 Interest accrual (2) 30,339 14,940 4,872 1,831 1,182 53,164 Net premiums collected (3) (62,895) (42,751) (12,883) (5,252) (2,550) (126,331) Effect of changes in the foreign exchange rate — — — 312 — 312 Ending balance at original discount rates 2,957,769 1,699,135 401,751 183,679 94,408 5,336,742 Effect of change from original to current discount rates 379,383 91,102 61,701 24,385 15,326 571,897 Balance at March 31, 2022 $ 3,337,152 $ 1,790,237 $ 463,452 $ 208,064 $ 109,734 $ 5,908,639 Balance at January 1, 2023 $ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ 90,143 $ 5,207,422 Beginning balance at original discount rates 2,941,261 1,729,219 415,442 192,631 87,751 5,366,304 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (34,132) (18,758) (16,585) (1,621) (2,573) (73,669) Adjusted balance at January 1, 2023 2,907,129 1,710,461 398,857 191,010 85,178 5,292,635 Issuances (1) 75,839 67,787 13,303 10,212 2,392 169,533 Interest accrual (2) 31,587 16,199 4,890 2,036 1,057 55,769 Net premiums collected (3) (65,914) (43,979) (12,403) (5,424) (2,661) (130,381) Effect of changes in the foreign exchange rate — — — (388) — (388) Ending balance at original discount rates 2,948,641 1,750,468 404,647 197,446 85,966 5,387,168 Effect of change from original to current discount rates 49,082 (86,054) 16,800 3,220 4,277 (12,675) Balance at March 31, 2023 $ 2,997,723 $ 1,664,414 $ 421,447 $ 200,666 $ 90,243 $ 5,374,493 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Health Present value of expected future policy benefits United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001 Beginning balance at original discount rates 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (50,453) (15,668) (15,790) (2,645) (2,025) (86,581) Adjusted balance at January 1, 2022 3,040,448 3,177,674 905,818 282,959 93,603 7,500,502 Issuances (1) 89,904 53,518 10,866 10,452 876 165,616 Interest accrual (2) 32,308 29,583 12,120 3,432 1,182 78,625 Benefit payments (3) (67,243) (28,494) (23,065) (5,044) (3,389) (127,235) Effect of changes in the foreign exchange rate — — — 557 — 557 Ending balance at original discount rates 3,095,417 3,232,281 905,739 292,356 92,272 7,618,065 Effect of change from original to current discount rates 413,068 244,358 176,686 59,275 14,762 908,149 Balance at March 31, 2022 $ 3,508,485 $ 3,476,639 $ 1,082,425 $ 351,631 $ 107,034 $ 8,526,214 Balance at January 1, 2023 $ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349 Beginning balance at original discount rates 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (31,443) (19,779) (15,995) (1,578) (2,302) (71,097) Adjusted balance at January 1, 2023 3,049,190 3,316,565 888,870 302,135 82,910 7,639,670 Issuances (1) 75,683 67,787 13,285 10,212 2,388 169,355 Interest accrual (2) 33,480 32,289 11,840 3,668 1,057 82,334 Benefit payments (3) (78,563) (29,261) (23,976) (7,137) (3,354) (142,291) Effect of changes in the foreign exchange rate — — — (708) — (708) Ending balance at original discount rates 3,079,790 3,387,380 890,019 308,170 83,001 7,748,360 Effect of change from original to current discount rates 52,672 (212,708) 59,977 18,363 4,089 (77,607) Balance at March 31, 2023 $ 3,132,462 $ 3,174,672 $ 949,996 $ 326,533 $ 87,090 $ 7,670,753 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Health Net liability for future policy benefits as of March 31, 2022 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates $ 137,648 $ 1,533,146 $ 503,988 $ 108,677 $ (2,136) $ 2,281,323 Effect of changes in discount rate assumptions 33,685 153,256 114,985 34,890 (564) 336,252 Net liability for future policy benefits at current discount rates 171,333 1,686,402 618,973 143,567 (2,700) 2,617,575 Other Adjustments (1,812) (10,847) 1,508 12 3,812 (7,327) Net liability for future policy benefits, after other adjustments, at current discount rates $ 169,521 $ 1,675,555 $ 620,481 $ 143,579 $ 1,112 $ 2,610,248 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Health Net liability for future policy benefits as of March 31, 2023 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates 131,149 1,636,912 485,372 110,724 (2,965) 2,361,192 Effect of changes in discount rate assumptions 3,590 (126,654) 43,177 15,143 (188) (64,932) Net liability for future policy benefits at current discount rates 134,739 1,510,258 528,549 125,867 (3,153) 2,296,260 Other Adjustments 1,771 (9,362) 4,348 333 4,162 1,252 Net liability for future policy benefits, after other adjustments, at current discount rates $ 136,510 $ 1,500,896 $ 532,897 $ 126,200 $ 1,009 $ 2,297,512 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. The following table reconciles the liability for future policy benefits to the C onsolidated B alance S heets as of March 31, 2023: At Original Discount Rates At Current Discount Rates As of March 31, As of March 31, 2023 2022 2023 2022 Life (1) : American Income $ 4,247,758 $ 3,916,187 $ 5,169,780 $ 6,005,498 Direct to Consumer 2,844,707 2,642,729 3,518,676 4,042,514 Liberty National 2,206,288 2,153,030 2,431,415 2,830,800 Other 2,952,802 2,846,161 3,646,706 4,292,945 Net liability for future policy benefits—long duration life 12,251,555 11,558,107 14,766,577 17,171,757 Health (1) : United American 130,992 135,891 136,510 169,521 Family Heritage 1,626,881 1,524,185 1,500,896 1,675,555 Liberty National 488,546 505,319 532,897 620,481 American Income 111,096 108,693 126,200 143,579 Direct to Consumer 961 1,004 1,009 1,112 Net liability for future policy benefits—long duration health 2,358,476 2,275,092 2,297,512 2,610,248 Deferred profit liability 177,248 184,451 177,248 184,451 Deferred annuity 907,797 1,027,087 907,797 1,027,087 Interest sensitive life 737,900 744,244 737,900 744,244 Other 9,540 8,118 9,540 8,118 Total future policy benefits $ 16,442,516 $ 15,797,099 $ 18,896,574 $ 21,745,905 (1) Balances are presented net of the reinsurance recoverable and the effects of flooring the liability. The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: Life Weighted-average Discount Rates March 31, 2023 March 31, 2022 American Income DTC Liberty National Other American Income DTC Liberty National Other Original discount rate 5.8 % 6.0 % 5.6 % 6.2 % 5.8 % 6.0 % 5.6 % 6.2 % Current discount rate 4.9 % 5.0 % 5.0 % 5.0 % 4.0 % 4.0 % 3.9 % 3.9 % Health Weighted-average Discount Rates March 31, 2023 March 31, 2022 United American Family Heritage Liberty National American Income DTC United American Family Heritage Liberty National American Income DTC Original discount rate 5.2 % 4.3 % 5.8 % 5.9 % 5.2 % 5.2 % 4.4 % 5.8 % 5.9 % 5.2 % Current discount rate 4.8 % 4.9 % 4.9 % 4.8 % 4.8 % 3.8 % 3.9 % 3.6 % 3.8 % 3.8 % The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: March 31, 2023 2022 At original discount rates At current discount rates At original discount rates At current discount rates Life American Income 22.90 23.33 22.80 23.78 Direct to Consumer 20.24 21.82 20.81 22.93 Liberty National 14.94 15.63 15.08 16.85 Other 16.52 18.23 16.76 19.59 Health United American 11.40 10.80 11.68 11.83 Family Heritage 14.91 14.43 15.28 15.80 Liberty National 9.31 9.66 9.01 10.11 American Income 12.15 12.74 12.45 13.95 Direct to Consumer 11.40 10.80 11.68 11.83 The following tables summarize the amount of gross premiums and interest, net of reinsurance, related to long duration life and health contracts that are recognized in the Condensed Consolidated Statements of Operations : Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest American Income $ 387,145 $ 61,431 $ 369,737 $ 57,262 Direct to Consumer 244,707 41,714 242,662 39,292 Liberty National 84,072 29,769 79,348 29,285 Other 51,835 44,275 52,387 42,697 Total $ 767,759 $ 177,189 $ 744,134 $ 168,536 Health Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest United American $ 97,833 $ 1,822 $ 92,266 $ 1,914 Family Heritage 96,090 15,977 89,540 14,545 Liberty National 46,745 6,920 47,496 7,226 American Income 28,096 1,632 27,937 1,601 Direct to Consumer 3,542 — 3,536 — Total $ 272,306 $ 26,351 $ 260,775 $ 25,286 The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums and expected future policy benefits, at both original and current discount rates, for life and health contracts: Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates American Income PV of expected future net premiums $ 7,617,532 $ 4,325,957 $ 4,467,637 $ 7,115,131 $ 4,043,480 $ 4,646,747 PV of expected future gross premiums 23,041,514 13,054,486 13,575,751 21,851,854 12,374,587 14,324,455 PV of expected future policy benefits 28,821,998 8,573,734 9,637,463 26,930,450 7,959,694 10,652,256 DTC PV of expected future net premiums $ 10,832,386 $ 5,718,900 $ 6,110,550 $ 10,630,110 $ 5,595,772 $ 6,710,655 PV of expected future gross premiums 17,479,516 9,165,113 9,773,835 17,414,120 9,103,648 10,912,941 PV of expected future policy benefits 25,582,750 8,563,604 9,624,680 24,876,834 8,238,501 10,750,349 Liberty National PV of expected future net premiums $ 1,889,419 $ 1,070,775 $ 1,128,083 $ 1,855,371 $ 1,043,765 $ 1,224,988 PV of expected future gross premiums 4,453,139 2,599,082 2,667,795 4,265,146 2,485,460 2,848,626 PV of expected future policy benefits 8,658,766 3,284,594 3,559,012 8,514,395 3,208,055 4,066,234 Other PV of expected future net premiums $ 919,924 $ 448,677 $ 483,056 $ 869,727 $ 419,434 $ 511,832 PV of expected future gross premiums 3,798,669 1,920,302 2,126,949 3,907,011 1,950,624 2,441,512 PV of expected future policy benefits 12,392,224 3,427,535 4,166,527 12,277,130 3,290,269 4,848,375 Total PV of expected future net premiums $ 21,259,261 $ 11,564,309 $ 12,189,326 $ 20,470,339 $ 11,102,451 $ 13,094,222 PV of expected future gross premiums 48,772,838 26,738,983 28,144,330 47,438,131 25,914,319 30,527,534 PV of expected future policy benefits 75,455,738 23,849,467 26,987,682 72,598,809 22,696,519 30,317,214 |
Analysis of Deferred Acquisition Costs | The following table presents the Company's deferred policy acquisition costs, both before and after the Transition Date: January 1, December 31, 2021 2020 Life: American Income $ 1,647,761 $ 1,647,761 Direct to Consumer 1,498,970 1,498,435 Liberty National 531,504 531,504 Other 304,786 304,459 Total life 3,983,021 3,982,159 Health: United American 65,020 74,353 Family Heritage 364,751 364,751 Liberty National 124,754 124,888 American Income 39,477 39,477 Direct to Consumer 2,215 6,600 Total health 596,217 610,069 Annuity 8,309 3,216 Total DAC $ 4,587,547 $ 4,595,444 The following table presents the effect of transition adjustments due to the adoption of ASU 2018-12 on Shareholders' Equity: Retained Earnings Accumulated Other Comprehensive Income (Loss) Other (1) Total Shareholders’ Equity, as of December 31, 2020 $ 5,874,109 $ 3,029,244 $ (132,261) $ 8,771,092 Effect of changes in discount rate assumptions — (7,829,753) — (7,829,753) Effect of capping and flooring (38,992) — — (38,992) Effect of removal of unrealized gain (loss) on DAC — 4,704 — 4,704 Other adjustments 26,470 — — 26,470 Shareholders’ Equity, as of January 1, 2021 $ 5,861,587 $ (4,795,805) $ (132,261) $ 933,521 The following tables roll forward the deferred policy acquisition costs for the three months ended March 31, 2023 and 2022: Life American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015 Capitalizations 114,428 48,216 20,465 3,487 186,596 Amortization expense (33,513) (23,172) (11,046) (4,198) (71,929) Foreign exchange adjustment 1,738 — — — 1,738 Experience adjustment — — — — — Balance at March 31, 2022 $ 2,042,907 $ 1,608,739 $ 575,838 $ 300,936 $ 4,528,420 Balance at January 1, 2023 $ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291 Capitalizations 115,395 47,410 24,221 3,321 190,347 Amortization expense (38,299) (24,753) (12,412) (4,125) (79,589) Foreign exchange adjustment (2,787) — — — (2,787) Experience adjustment — — — — — Balance at March 31, 2023 $ 2,332,600 $ 1,699,588 $ 622,532 $ 297,542 $ 4,952,262 Health United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082 Capitalizations 580 12,363 4,121 3,155 — 20,219 Amortization expense (1,516) (6,405) (3,320) (829) (44) (12,114) Foreign exchange adjustment — — — 88 — 88 Experience adjustment — — — — — — Balance at March 31, 2022 $ 80,204 $ 394,925 $ 128,338 $ 51,820 $ 1,988 $ 657,275 Balance at January 1, 2023 $ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763 Capitalizations 507 15,097 4,882 3,143 — 23,629 Amortization expense (1,513) (6,560) (3,250) (938) (47) (12,308) Foreign exchange adjustment — — — (126) — (126) Experience adjustment — — — — — — Balance at March 31, 2023 $ 76,388 $ 425,145 $ 134,728 $ 59,890 $ 1,807 $ 697,958 The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of March 31, 2023: March 31, 2023 2022 Life American Income $ 2,332,600 $ 2,042,907 Direct to Consumer 1,699,588 1,608,739 Liberty National 622,532 575,838 Other 297,542 300,936 Total DAC - Life 4,952,262 4,528,420 Health United American 76,388 80,204 Family Heritage 425,145 394,925 Liberty National 134,728 128,338 American Income 59,890 51,820 Direct to Consumer 1,807 1,988 Total DAC - Health 697,958 657,275 Annuity 4,218 5,988 Tota l $ 5,654,438 $ 5,191,683 |
Schedule Of New Accounting Standards on Previously Reported Results | Effect of New Accounting Standards on Previously Reported Results : The impacts from the adoption of ASU 2018-12 on the Company's previously reported results included in these financial statements are as follows: Condensed Consolidated Balance Sheets December 31, 2022 As Previously Reported Adoption Impact As Adjusted Assets: Other receivables $ 484,887 $ 104,192 $ 589,079 Deferred acquisition costs 5,249,907 285,790 5,535,697 Liabilities: Future policy benefits 16,721,846 1,318,196 18,040,042 Unearned and advance premium 60,742 192,398 253,140 Policy claims and other benefits payable 430,027 77,192 507,219 Current and deferred income taxes 686,172 (251,523) 434,649 Shareholders' equity: Accumulated other comprehensive income (loss) (1,415,714) (1,374,599) (2,790,313) Retained earnings 6,466,220 428,315 6,894,535 Condensed Consolidated Statements of Operations Three Months Ended As Previously Reported Adoption Impact As Adjusted Revenue: Life premium $ 754,602 $ (5,474) $ 749,128 Health premium 317,000 (1,316) 315,684 Net investment income 243,834 1,060 244,894 Benefits and expenses: Life policyholder benefits 549,343 (53,914) 495,429 Health policyholder benefits 196,855 (7,837) 189,018 Other policyholder benefits 7,050 2,652 9,702 Amortization of deferred acquisition costs 158,384 (73,888) 84,496 Commissions, premium taxes, and non-deferred acquisition costs 90,813 34,696 125,509 Income before income taxes 201,615 92,561 294,176 Income tax benefit (expense) (37,254) (19,438) (56,692) Net income $ 164,361 $ 73,123 $ 237,484 Basic net income per common share $ 1.66 $ 0.73 $ 2.39 Diluted net income per common share $ 1.64 $ 0.73 $ 2.37 See Note 1—Significant Accounting Policies , Note 6—Policy Liabilities , and Note 7—DAC for additional information on the adoption. |
Supplemental Information Abou_2
Supplemental Information About Changes to Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Change in Balance by Component of Accumulated Other Comprehensive Income | An analysis of the change in balance by component of Accumulated Other Comprehensive Income is as follows for the three month periods ended March 31, 2023 and 2022: Three Months Ended March 31, 2023 Available Future Policy Benefits Foreign Pension Total Balance at January 1, 2023 $ (1,420,672) $ (1,369,204) $ (1,681) $ 1,244 $ (2,790,313) Other comprehensive income (loss) before reclassifications, net of tax 378,162 (569,503) (5,148) — (196,489) Reclassifications, net of tax 25,746 — — (37) 25,709 Other comprehensive income (loss) 403,908 (569,503) (5,148) (37) (170,780) Balance at March 31, 2023 $ (1,016,764) $ (1,938,707) $ (6,829) $ 1,207 $ (2,961,093) Three Months Ended March 31, 2022 Available Future Policy Benefits Foreign Pension Total Balance at January 1, 2022 $ 2,765,290 $ (6,915,910) $ 19,248 $ (103,676) $ (4,235,048) Other comprehensive income (loss) before reclassifications, net of tax (1,811,185) 2,216,355 3,341 — 408,511 Reclassifications, net of tax (3,184) — — 2,715 (469) Other comprehensive income (loss) (1,814,369) 2,216,355 3,341 2,715 408,042 Balance at March 31, 2022 $ 950,921 $ (4,699,555) $ 22,589 $ (100,961) $ (3,827,006) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Income | Reclassification adjustments out of Accumulated Other Comprehensive Income are presented below for the three month periods ended March 31, 2023 and 2022. Three Months Ended March 31, Affected line items in the Statements of Operations Component Line Item 2023 2022 Unrealized investment (gains) losses on available for sale assets: Realized (gains) losses $ 33,124 $ (4,937) Realized (gains) losses Amortization of (discount) premium (534) 907 Net investment income Total before tax 32,590 (4,030) Tax (6,844) 846 Income taxes Total after-tax 25,746 (3,184) Pension adjustments: Amortization of prior service cost 269 158 Other operating expense Amortization of actuarial (gain) loss (317) 3,279 Other operating expense Total before tax (48) 3,437 Tax 11 (722) Income taxes Total after-tax (37) 2,715 Total reclassification (after-tax) $ 25,709 $ (469) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Fixed Maturities and Equity Securities Available for Sale by Component | Summaries of fixed maturities available for sale by amortized cost, fair value, and allowance for credit losses at March 31, 2023 and December 31, 2022, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are as follows. Redeemable preferred stock is included within "Corporates, by sector." At March 31, 2023 Amortized Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 389,441 $ — $ 114 $ (27,482) $ 362,073 2 States, municipalities, and political subdivisions 2,894,161 — 41,407 (426,929) 2,508,639 15 Foreign governments 53,789 — 13 (11,282) 42,520 — Corporates, by sector: Financial 4,973,445 (26,040) 84,796 (453,394) 4,578,807 27 Utilities 1,958,888 — 70,798 (94,579) 1,935,107 11 Energy 1,434,766 — 38,477 (80,338) 1,392,905 8 Other corporate sectors 6,697,469 (6,727) 126,968 (557,390) 6,260,320 36 Total corporates 15,064,568 (32,767) 321,039 (1,185,701) 14,167,139 82 Collateralized debt obligations 36,778 — 8,724 — 45,502 — Other asset-backed securities 87,966 — 4 (6,958) 81,012 1 Total fixed maturities $ 18,526,703 $ (32,767) $ 371,301 $ (1,658,352) $ 17,206,885 100 (1) Amount reported in the balance sheet. (2) At fair value. The Company has exposure to banks as part of its fixed maturity portfolio. The Company’s bank securities had a fair value of $1.3 billion (8% of the total fixed maturity portfolio) at March 31, 2023 and December 31, 2022. At December 31, 2022 Amortized Allowance for Credit Losses Gross Gross Fair Value (1) % of Total Fixed Maturities (2) Fixed maturities available for sale: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 394,439 $ — $ 27 $ (38,968) $ 355,498 2 States, municipalities, and political subdivisions 2,791,030 — 24,328 (505,447) 2,309,911 14 Foreign governments 55,164 — 6 (12,706) 42,464 — Corporates, by sector: Financial 4,907,794 — 63,126 (504,489) 4,466,431 27 Utilities 1,924,190 — 36,670 (125,713) 1,835,147 11 Energy 1,436,598 — 22,637 (101,923) 1,357,312 8 Other corporate sectors 6,667,043 — 78,903 (738,772) 6,007,174 37 Total corporates 14,935,625 — 201,336 (1,470,897) 13,666,064 83 Collateralized debt obligations 37,098 — 13,266 — 50,364 — Other asset-backed securities 88,336 — 4 (9,276) 79,064 1 Total fixed maturities $ 18,301,692 $ — $ 238,967 $ (2,037,294) $ 16,503,365 100 (1) Amount reported in the balance sheet. (2) At fair value. |
Schedule of Fixed Maturities by Contractual Maturity | A schedule of fixed maturities available for sale by contractual maturity date at March 31, 2023, is shown below on an amortized cost basis, net of allowance for credit losses, and on a fair value basis. Actual disposition dates could differ from contractual maturities due to call or prepayment provisions. At March 31, 2023 Amortized Fair Fixed maturities available for sale: Due in one year or less $ 169,491 $ 170,003 Due after one year through five years 1,113,684 1,118,421 Due after five years through ten years 1,691,785 1,717,908 Due after ten years through twenty years 7,976,112 7,740,695 Due after twenty years 7,418,120 6,333,344 Mortgage-backed and asset-backed securities 124,744 126,514 $ 18,493,936 $ 17,206,885 |
Schedule of Analysis of Investment Operations | "Net investment income" for the three month periods ended March 31, 2023 and 2022 is summarized as follows: Three Months Ended 2023 2022 % Change Fixed maturities available for sale $ 232,299 $ 225,284 3 Policy loans 11,755 11,428 3 Other long-term investments (1) 15,743 12,713 24 Short-term investments 1,595 2 261,392 249,427 5 Less investment expense (4,287) (4,533) (5) Net investment income $ 257,105 $ 244,894 5 (1) For the three months ended March 31, 2023 and 2022, the investment funds, accounted for under the fair value option method, recorded $11.3 million and $10.7 million of distributions, respectively, in net investment income. Refer to Other Long-Term Investments below for further discussion on the investment funds. |
Schedule of Realized Gains (Losses) on Investments | Selected information about sales of fixed maturities available for sale is as follows: Three Months Ended 2023 2022 Fixed maturities available for sale: Proceeds from sales (1) $ 15,705 $ 75,116 Gross realized gains — 773 Gross realized losses (358) (3,679) (1) There were no unsettled sales in the periods ended March 31, 2023 and 2022. An analysis of "Realized gains (losses)" is as follows: Three Months Ended 2023 2022 Realized investment gains (losses): Fixed maturities available for sale: Sales and other (1) $ (357) $ 4,549 Provision for credit losses (32,767) 387 Fair value option—change in fair value 1,858 (5,338) Other investments 339 (6,842) Realized gains (losses) from investments (30,927) (7,244) Applicable tax 6,495 1,521 Realized gains (losses), net of tax $ (24,432) $ (5,723) |
Schedule of Fair Value of Fixed Maturities Measured on a Recurring Basis | The following tables represent the fair value of fixed maturities measured on a recurring basis at March 31, 2023 and December 31, 2022: Fair Value Measurement at March 31, 2023 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 362,073 $ — $ 362,073 States, municipalities, and political subdivisions — 2,508,639 — 2,508,639 Foreign governments — 42,520 — 42,520 Corporates, by sector: Financial — 4,445,091 133,716 4,578,807 Utilities — 1,822,748 112,359 1,935,107 Energy — 1,381,989 10,916 1,392,905 Other corporate sectors — 6,045,672 214,648 6,260,320 Total corporates — 13,695,500 471,639 14,167,139 Collateralized debt obligations — — 45,502 45,502 Other asset-backed securities — 81,012 — 81,012 Total fixed maturities $ — $ 16,689,744 $ 517,141 $ 17,206,885 Percentage of total — % 97 % 3 % 100 % Fair Value Measurement at December 31, 2022 Using: Quoted Prices in Significant Other Significant Total Fair Fixed maturities available for sale U.S. Government direct, guaranteed, and government-sponsored enterprises $ — $ 355,498 $ — $ 355,498 States, municipalities, and political subdivisions — 2,309,911 — 2,309,911 Foreign governments — 42,464 — 42,464 Corporates, by sector: Financial — 4,332,495 133,936 4,466,431 Utilities — 1,723,832 111,315 1,835,147 Energy — 1,346,212 11,100 1,357,312 Other corporate sectors — 5,785,442 221,732 6,007,174 Total corporates — 13,187,981 478,083 13,666,064 Collateralized debt obligations — — 50,364 50,364 Other asset-backed securities — 79,064 — 79,064 Total fixed maturities $ — $ 15,974,918 $ 528,447 $ 16,503,365 Percentage of total — % 97 % 3 % 100 % Analysis of Gross Unrealized Investment Losses At March 31, 2023 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 275,114 $ (17,384) $ 84,691 $ (10,098) $ 359,805 $ (27,482) States, municipalities, and political subdivisions 601,542 (23,575) 1,219,137 (403,354) 1,820,679 (426,929) Foreign governments 15,491 (145) 25,555 (11,137) 41,046 (11,282) Corporates, by sector: Financial 1,355,645 (92,771) 1,482,482 (308,161) 2,838,127 (400,932) Utilities 304,897 (14,438) 474,873 (77,678) 779,770 (92,116) Energy 319,199 (11,489) 332,106 (58,433) 651,305 (69,922) Other corporate sectors 1,211,339 (64,035) 2,859,975 (470,663) 4,071,314 (534,698) Total corporates 3,191,080 (182,733) 5,149,436 (914,935) 8,340,516 (1,097,668) Collateralized debt obligations — — — — — — Other asset-backed securities 25,733 (696) 43,631 (5,454) 69,364 (6,150) Total investment grade securities 4,108,960 (224,533) 6,522,450 (1,344,978) 10,631,410 (1,569,511) Below investment grade securities: States, municipalities, and political subdivisions — — — — — — Corporates, by sector: Financial 79,716 (9,059) 106,971 (43,403) 186,687 (52,462) Utilities 8,265 (662) 20,166 (1,801) 28,431 (2,463) Energy — — 34,289 (10,416) 34,289 (10,416) Other corporate sectors 71,156 (4,350) 90,580 (18,342) 161,736 (22,692) Total corporates 159,137 (14,071) 252,006 (73,962) 411,143 (88,033) Collateralized debt obligations — — — — — — Other asset-backed securities — — 11,580 (808) 11,580 (808) Total below investment grade securities 159,137 (14,071) 263,586 (74,770) 422,723 (88,841) Total fixed maturities $ 4,268,097 $ (238,604) $ 6,786,036 $ (1,419,748) $ 11,054,133 $ (1,658,352) Analysis of Gross Unrealized Investment Losses At December 31, 2022 Less than Twelve Months Twelve Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Fixed maturities available for sale: Investment grade securities: U.S. Government direct, guaranteed, and government-sponsored enterprises $ 349,887 $ (38,218) $ 3,424 $ (750) $ 353,311 $ (38,968) States, municipalities, and political subdivisions 1,767,624 (453,149) 95,124 (52,298) 1,862,748 (505,447) Foreign governments 6,297 (201) 25,134 (12,505) 31,431 (12,706) Corporates, by sector: Financial 2,837,918 (426,132) 109,784 (42,173) 2,947,702 (468,305) Utilities 1,088,219 (116,272) 21,636 (6,268) 1,109,855 (122,540) Energy 855,853 (91,755) — — 855,853 (91,755) Other corporate sectors 4,155,986 (665,831) 94,299 (42,344) 4,250,285 (708,175) Total corporates 8,937,976 (1,299,990) 225,719 (90,785) 9,163,695 (1,390,775) Collateralized debt obligations — — — — — — Other asset-backed securities 60,157 (5,223) 7,960 (2,435) 68,117 (7,658) Total investment grade securities 11,121,941 (1,796,781) 357,361 (158,773) 11,479,302 (1,955,554) Below investment grade securities: States, municipalities, and political subdivisions — — — — — — Corporates, by sector: Financial 120,377 (18,901) 38,348 (17,283) 158,725 (36,184) Utilities 27,722 (3,173) — — 27,722 (3,173) Energy 14,480 (2,182) 20,075 (7,986) 34,555 (10,168) Other corporate sectors 166,159 (25,962) 6,670 (4,635) 172,829 (30,597) Total corporates 328,738 (50,218) 65,093 (29,904) 393,831 (80,122) Collateralized debt obligations — — — — — — Other asset-backed securities — — 10,874 (1,618) 10,874 (1,618) Total below investment grade securities 328,738 (50,218) 75,967 (31,522) 404,705 (81,740) Total fixed maturities $ 11,450,679 $ (1,846,999) $ 433,328 $ (190,295) $ 11,884,007 $ (2,037,294) |
Schedule of Fair Value, Assets Measured on Recurring Basis Using Significant Unobservable Inputs | The following tables represent changes in fixed maturities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2023 $ — $ 50,364 $ 478,083 $ 528,447 Included in realized gains / losses — — — — Included in other comprehensive income — (4,542) 5,370 828 Acquisitions — — — — Sales — — — — Amortization — 1,141 2 1,143 Other (1) — (1,461) (11,816) (13,277) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2023 $ — $ 45,502 $ 471,639 $ 517,141 Percent of total fixed maturities — % — % 3 % 3 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Asset- backed Securities Collateralized Corporates Total Balance at January 1, 2022 $ — $ 63,505 $ 641,688 $ 705,193 Included in realized gains / losses — — — — Included in other comprehensive income — (3,809) (36,360) (40,169) Acquisitions — — — — Sales — — — — Amortization — 1,123 1 1,124 Other (1) — (1,281) (19,359) (20,640) Transfers into Level 3 (2) — — — — Transfers out of Level 3 (2) — — — — Balance at March 31, 2022 $ — $ 59,538 $ 585,970 $ 645,508 Percent of total fixed maturities — % — % 3 % 3 % (1) Includes capitalized interest, foreign exchange adjustments, and principal repayments. (2) Considered to be transferred at the end of the period. Transfers into Level 3 occur when observable inputs are no longer available. Transfers out of Level 3 occur when observable inputs become available. The following table presents changes in unrealized gains and losses for the period included in accumulated other comprehensive income for assets held at the end of the reporting period for Level 3s: Changes in Unrealized Gains (Losses) included in Accumulated Other Comprehensive Income for Assets Held at the End of the Period Asset- Collateralized Corporates Total At March 31, 2023 $ — $ (4,542) $ 5,370 $ 828 At March 31, 2022 — (3,809) (36,360) (40,169) |
Schedule of Additional Information about Investments in Unrealized Loss Position | The following table discloses information about fixed maturities available for sale in an unrealized loss position. Less than Twelve Months Twelve Months or Longer Total Number of issues (CUSIPs) held: As of March 31, 2023 624 1,290 1,914 As of December 31, 2022 1,819 157 1,976 |
Schedule of Fixed Maturities, Allowance for Credit Loss | A summary of the activity in the allowance for credit losses is as follows. Three Months Ended 2023 2022 Allowance for credit losses beginning balance $ — $ 387 Additions to allowance for which credit losses were not previously recorded 32,767 — Additions (reductions) to allowance for fixed maturities that previously had an allowance — — Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period — (387) Allowance for credit losses ending balance $ 32,767 $ — |
Schedule of Other Long-Term Investments | Other long-term investments consist of the following assets: March 31, December 31, 2022 Investment funds $ 789,197 $ 768,689 Commercial mortgage loan participations 204,275 181,305 Other 29,139 26,022 Total $ 1,022,611 $ 976,016 |
Schedule of Investment Funds | The following table presents additional information about the Company's investment funds as of March 31, 2023 and December 31, 2022 at fair value: Fair Value Unfunded Commitments Investment Category March 31, December 31, 2022 March 31, Redemption Term/Notice Commercial mortgage loans $ 454,144 $ 431,405 $ 330,245 Fully redeemable and non-redeemable with varying terms. Opportunistic credit 157,899 158,524 — Initial 2 year lock on each new investment/semi-annual withdrawals thereafter/full redemption within 36 month period. Infrastructure 158,036 159,534 21,366 Fully redeemable and non-redeemable with varying terms. Other 19,118 19,226 120,079 Total investment funds $ 789,197 $ 768,689 $ 471,690 |
Summary of Commercial Mortgage Loan Participations | Summaries of commercial mortgage loans by property type and geographical location at March 31, 2023 and December 31, 2022 are as follows: March 31, 2023 December 31, 2022 Carrying Value % of Total Carrying Value % of Total Property type: Mixed use $ 59,965 29 $ 62,375 34 Hospitality 28,033 14 27,796 15 Retail 23,744 12 15,342 9 Industrial 27,259 13 27,248 15 Multi-family 57,206 28 42,232 23 Office 11,137 6 8,101 5 Total recorded investment 207,344 102 183,094 101 Less allowance for credit losses (3,069) (2) (1,789) (1) Carrying value, net of allowance for credit losses $ 204,275 100 $ 181,305 100 March 31, 2023 December 31, 2022 Carrying Value % of Total Carrying Value % of Total Geographic location: California $ 64,990 32 $ 64,477 36 Texas 23,132 12 22,905 13 New York 27,570 14 19,167 11 Washington 14,939 7 14,925 8 Massachusetts 14,925 7 — — Florida 33,217 16 33,182 18 Other 28,571 14 28,438 15 Total recorded investment 207,344 102 183,094 101 Less allowance for credit losses (3,069) (2) (1,789) (1) Carrying value, net of allowance for credit losses $ 204,275 100 $ 181,305 100 The following tables are reflective of the key factors, debt service coverage ratios, and loan-to-value (LTV) ratios that are utilized by management to monitor the performance of the portfolios. The Company only makes new investments in commercial mortgage loans that have a LTV ratio less than 80%. Generally, a higher LTV ratio and a lower debt service coverage ratio can potentially equate to higher risk of loss. March 31, 2023 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,235 $ 123,466 $ 20,430 $ 168,131 81 70% to 80% — 7,222 1,238 8,460 4 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,035 15,411 — 22,446 11 Total $ 39,577 $ 146,099 $ 21,668 207,344 100 Less allowance for credit losses (3,069) Total, net of allowance for credit losses $ 204,275 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. December 31, 2022 Recorded Investment Debt Service Coverage Ratios (1) <1.00x 1.00x—1.20x >1.20x Total % of Total Loan-to-value ratio (2) : Less than 70% $ 24,221 $ 108,156 $ 12,018 $ 144,395 79 70% to 80% — 22,120 1,238 23,358 13 81% to 90% 8,307 — — 8,307 4 Greater than 90% 7,034 — — 7,034 4 Total $ 39,562 $ 130,276 $ 13,256 183,094 100 Less allowance for credit losses (1,789) Total, net of allowance for credit losses $ 181,305 (1) Annual net operating income divided by annual mortgage debt service (principal and interest). (2) Loan balance divided by appraised value, including planned renovations and stabilized occupancy, at origination. Updated internal valuations are used when a loan is materially underperforming. |
Schedule of Commercial Loan Participations, Allowance for Credit Loss | Three Months Ended 2023 2022 Allowance for credit losses beginning balance $ 1,789 $ 827 Provision (reversal) for credit losses 1,280 — Allowance for credit losses ending balance $ 3,069 $ 827 |
Policy Liabilities (Tables)
Policy Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Policyholder Account Balance [Abstract] | |
Liability for Future Policy Benefit, Activity | The following tables summarize the balance of and changes to the liability for future policy benefits for traditional life and health long-duration contracts on the Transition Date due to the adoption of ASU 2018-12: Net Liability for Future Policy Benefits - Long Duration Life American Income DTC Liberty National Other Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 3,541,317 $ 2,492,226 $ 2,140,071 $ 2,736,804 $ 10,910,418 Effect of changes in discount rate assumptions 3,334,600 2,195,430 1,229,610 2,297,835 9,057,475 Effect of capping and flooring (1) — 16,899 2,433 2 19,334 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 6,875,917 $ 4,704,555 $ 3,372,114 $ 5,034,641 $ 19,987,227 Net liability for Future Policy Benefits - Long Duration Health United American Family Heritage Liberty National American Income DTC Total Balance, net of reinsurance, at original discount rates as of December 31, 2020 $ 131,505 $ 1,383,128 $ 501,312 $ 101,998 $ (2,941) $ 2,115,002 Effect of changes in discount rate assumptions 75,652 497,250 219,992 60,366 346 853,606 Effect of capping and flooring (1) 6,506 — 19,324 — 4,193 30,023 Balance, net of reinsurance, at current discount rates as of January 1, 2021 $ 213,663 $ 1,880,378 $ 740,628 $ 162,364 $ 1,598 $ 2,998,631 The following table presents total policy liabilities, both before and after the Transition Date: January 1, December 31, 2021 2020 Future policy benefits: Net liability for future policy benefits—long duration life $ 19,987,227 $ 10,910,418 Net liability for future policy benefits—long duration health 2,998,631 2,115,002 Additional insurance liabilities (1),(2) 2,008,399 2,218,116 Total future policy benefits 24,994,257 15,243,536 Unearned and advance premium (1) 243,369 61,728 Policy claims and other benefits payable (1) 473,524 399,507 Other policyholders' funds (1) 98,459 97,968 Total policy liabilities $ 25,809,609 $ 15,802,739 (1) In addition to the discount rate related adjustments to future policy benefits, the Company reclassified certain balances within total policy liabilities on the Consolidated Balance Sheets as a result of adopting ASU 2018-12. The reclassifications had an immaterial impact on Shareholders' Equity. See table summarizing the transition adjustments to Shareholders' Equity below. (2) The Company's additional insurance liabilities consist primarily of: 1) deferred profit liability on limited-payment contracts; and 2) reserves on deferred annuity and interest sensitive life blocks of business. See Note 6—Policy Liabilities The following tables summarize balances and changes in the net liability for future policy benefits, before reinsurance, for traditional life long-duration contracts: Life Present value of expected future net premiums American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 4,925,192 $ 7,264,905 $ 1,332,469 $ 559,972 $ 14,082,538 Beginning balance at original discount rates 3,906,098 5,533,741 1,040,242 416,141 10,896,222 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (4,315) (29,595) (625) 1,652 (32,883) Adjusted balance at January 1, 2022 3,901,783 5,504,146 1,039,617 417,793 10,863,339 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 43,074 67,608 12,810 5,172 128,664 Net premiums collected (3) (120,203) (149,757) (31,627) (10,831) (312,418) Effect of changes in the foreign exchange rate 2,900 — — — 2,900 Ending balance at original discount rates 4,043,480 5,595,772 1,043,765 419,434 11,102,451 Effect of change from original to current discount rates 603,267 1,114,883 181,223 92,398 1,991,771 Balance at March 31, 2022 $ 4,646,747 $ 6,710,655 $ 1,224,988 $ 511,832 $ 13,094,222 Balance at January 1, 2023 $ 4,273,156 $ 5,910,224 $ 1,094,407 $ 470,741 $ 11,748,528 Beginning balance at original discount rates 4,246,723 5,680,864 1,066,123 449,209 11,442,919 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (29,981) (47,988) (5,590) (1,886) (85,445) Adjusted balance at January 1, 2023 4,216,742 5,632,876 1,060,533 447,323 11,357,474 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 47,898 70,991 13,288 5,670 137,847 Net premiums collected (3) (127,239) (153,919) (33,188) (11,557) (325,903) Effect of changes in the foreign exchange rate (3,999) — — — (3,999) Ending balance at original discount rates 4,325,957 5,718,900 1,070,775 448,677 11,564,309 Effect of change from original to current discount rates 141,680 391,650 57,308 34,379 625,017 Balance at March 31, 2023 $ 4,467,637 $ 6,110,550 $ 1,128,083 $ 483,056 $ 12,189,326 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Life Present value of expected future policy benefits American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 11,773,519 $ 11,859,408 $ 4,542,697 $ 5,488,684 $ 33,664,308 Beginning balance at original discount rates 7,744,201 8,157,259 3,206,164 3,267,306 22,374,930 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (2,959) (25,850) 153 1,680 (26,976) Adjusted balance at January 1, 2022 7,741,242 8,131,409 3,206,317 3,268,986 22,347,954 Issuances (1) 215,926 173,775 22,965 7,300 419,966 Interest accrual (2) 100,336 106,928 42,230 48,280 297,774 Benefit payments (3) (104,321) (173,611) (63,457) (34,297) (375,686) Effect of changes in the foreign exchange rate 6,511 — — — 6,511 Ending balance at original discount rates 7,959,694 8,238,501 3,208,055 3,290,269 22,696,519 Effect of change from original to current discount rates 2,692,562 2,511,848 858,179 1,558,106 7,620,695 Balance at March 31, 2022 $ 10,652,256 $ 10,750,349 $ 4,066,234 $ 4,848,375 $ 30,317,214 Balance at January 1, 2023 $ 9,119,104 $ 9,225,451 $ 3,429,256 $ 3,976,150 $ 25,749,961 Beginning balance at original discount rates 8,409,761 8,477,892 3,272,980 3,403,704 23,564,337 Effect of changes in assumptions of future cash flows — — — — — Effect of actual variances from expected experience (31,526) (48,947) (7,054) (2,896) (90,423) Adjusted balance at January 1, 2023 8,378,235 8,428,945 3,265,926 3,400,808 23,473,914 Issuances (1) 192,555 168,952 30,142 7,241 398,890 Interest accrual (2) 109,329 112,768 43,256 50,378 315,731 Benefit payments (3) (96,674) (147,061) (54,730) (30,892) (329,357) Effect of changes in the foreign exchange rate (9,711) — — — (9,711) Ending balance at original discount rates 8,573,734 8,563,604 3,284,594 3,427,535 23,849,467 Effect of change from original to current discount rates 1,063,729 1,061,076 274,418 738,992 3,138,215 Balance at March 31, 2023 $ 9,637,463 $ 9,624,680 $ 3,559,012 $ 4,166,527 $ 26,987,682 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Life Net liability for future policy benefits as of March 31, 2022 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 3,916,214 $ 2,642,729 $ 2,164,290 $ 2,870,835 $ 11,594,068 Effect of changes in discount rate assumptions 2,089,295 1,396,965 676,956 1,465,708 5,628,924 Net liability for future policy benefits at current discount rates 6,005,509 4,039,694 2,841,246 4,336,543 17,222,992 Other Adjustments (1) (11) 2,820 (10,446) (43,598) (51,235) Net liability for future policy benefits, after other adjustments, at current discount rates $ 6,005,498 $ 4,042,514 $ 2,830,800 $ 4,292,945 $ 17,171,757 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Life Net liability for future policy benefits as of March 31, 2023 American Income DTC Liberty National Other Total Net liability for future policy benefits at original discount rates $ 4,247,777 $ 2,844,704 $ 2,213,819 $ 2,978,858 $ 12,285,158 Effect of changes in discount rate assumptions 922,049 669,426 217,110 704,613 2,513,198 Net liability for future policy benefits at current discount rates 5,169,826 3,514,130 2,430,929 3,683,471 14,798,356 Other Adjustments (1) (46) 4,546 486 (36,765) (31,779) Net liability for future policy benefits, after other adjustments, at current discount rates $ 5,169,780 $ 3,518,676 $ 2,431,415 $ 3,646,706 $ 14,766,577 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. The following tables summarize balances and changes in the net liability for future policy benefits for long-duration health contracts: Health Present value of expected future net premiums United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,611,659 $ 1,944,714 $ 517,368 $ 222,553 $ 121,724 $ 6,418,018 Beginning balance at original discount rates 2,949,851 1,688,590 414,409 178,801 96,776 5,328,427 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (49,560) (15,162) (15,462) (2,465) (1,880) (84,529) Adjusted balance at January 1, 2022 2,900,291 1,673,428 398,947 176,336 94,896 5,243,898 Issuances (1) 90,034 53,518 10,815 10,452 880 165,699 Interest accrual (2) 30,339 14,940 4,872 1,831 1,182 53,164 Net premiums collected (3) (62,895) (42,751) (12,883) (5,252) (2,550) (126,331) Effect of changes in the foreign exchange rate — — — 312 — 312 Ending balance at original discount rates 2,957,769 1,699,135 401,751 183,679 94,408 5,336,742 Effect of change from original to current discount rates 379,383 91,102 61,701 24,385 15,326 571,897 Balance at March 31, 2022 $ 3,337,152 $ 1,790,237 $ 463,452 $ 208,064 $ 109,734 $ 5,908,639 Balance at January 1, 2023 $ 2,908,501 $ 1,594,992 $ 423,490 $ 190,296 $ 90,143 $ 5,207,422 Beginning balance at original discount rates 2,941,261 1,729,219 415,442 192,631 87,751 5,366,304 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (34,132) (18,758) (16,585) (1,621) (2,573) (73,669) Adjusted balance at January 1, 2023 2,907,129 1,710,461 398,857 191,010 85,178 5,292,635 Issuances (1) 75,839 67,787 13,303 10,212 2,392 169,533 Interest accrual (2) 31,587 16,199 4,890 2,036 1,057 55,769 Net premiums collected (3) (65,914) (43,979) (12,403) (5,424) (2,661) (130,381) Effect of changes in the foreign exchange rate — — — (388) — (388) Ending balance at original discount rates 2,948,641 1,750,468 404,647 197,446 85,966 5,387,168 Effect of change from original to current discount rates 49,082 (86,054) 16,800 3,220 4,277 (12,675) Balance at March 31, 2023 $ 2,997,723 $ 1,664,414 $ 421,447 $ 200,666 $ 90,243 $ 5,374,493 (1) Issuances represent the present value, using the original discount rate, of the expected net premiums related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected net premiums, as well as the interest on actual net premiums earned during the period, using the original interest rate. (3) Net premiums collected represent the product of the current period net premium ratio, and the gross premiums collected during the period on the in-force business. Health Present value of expected future policy benefits United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 3,810,559 $ 3,840,322 $ 1,201,317 $ 380,915 $ 119,888 $ 9,353,001 Beginning balance at original discount rates 3,090,901 3,193,342 921,608 285,604 95,628 7,587,083 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (50,453) (15,668) (15,790) (2,645) (2,025) (86,581) Adjusted balance at January 1, 2022 3,040,448 3,177,674 905,818 282,959 93,603 7,500,502 Issuances (1) 89,904 53,518 10,866 10,452 876 165,616 Interest accrual (2) 32,308 29,583 12,120 3,432 1,182 78,625 Benefit payments (3) (67,243) (28,494) (23,065) (5,044) (3,389) (127,235) Effect of changes in the foreign exchange rate — — — 557 — 557 Ending balance at original discount rates 3,095,417 3,232,281 905,739 292,356 92,272 7,618,065 Effect of change from original to current discount rates 413,068 244,358 176,686 59,275 14,762 908,149 Balance at March 31, 2022 $ 3,508,485 $ 3,476,639 $ 1,082,425 $ 351,631 $ 107,034 $ 8,526,214 Balance at January 1, 2023 $ 3,046,829 $ 3,005,664 $ 941,574 $ 312,750 $ 87,532 $ 7,394,349 Beginning balance at original discount rates 3,080,633 3,336,344 904,865 303,713 85,212 7,710,767 Effect of changes in assumptions of future cash flows — — — — — — Effect of actual variances from expected experience (31,443) (19,779) (15,995) (1,578) (2,302) (71,097) Adjusted balance at January 1, 2023 3,049,190 3,316,565 888,870 302,135 82,910 7,639,670 Issuances (1) 75,683 67,787 13,285 10,212 2,388 169,355 Interest accrual (2) 33,480 32,289 11,840 3,668 1,057 82,334 Benefit payments (3) (78,563) (29,261) (23,976) (7,137) (3,354) (142,291) Effect of changes in the foreign exchange rate — — — (708) — (708) Ending balance at original discount rates 3,079,790 3,387,380 890,019 308,170 83,001 7,748,360 Effect of change from original to current discount rates 52,672 (212,708) 59,977 18,363 4,089 (77,607) Balance at March 31, 2023 $ 3,132,462 $ 3,174,672 $ 949,996 $ 326,533 $ 87,090 $ 7,670,753 (1) Issuances represent the present value, using the original discount rate, of the expected future policy benefits related to new policies issued during each respective period. (2) The interest accrual is the interest earned on the beginning present value of the expected future policy benefits, as well as the interest on actual benefits and expenses paid during the period, using the original interest rate. (3) Benefit payments represent the release of the present value, using the original discount rate, of the actual future policy benefits incurred during the period due to death, lapse, and maturity benefit payments based on the revised expected assumptions. Health Net liability for future policy benefits as of March 31, 2022 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates $ 137,648 $ 1,533,146 $ 503,988 $ 108,677 $ (2,136) $ 2,281,323 Effect of changes in discount rate assumptions 33,685 153,256 114,985 34,890 (564) 336,252 Net liability for future policy benefits at current discount rates 171,333 1,686,402 618,973 143,567 (2,700) 2,617,575 Other Adjustments (1,812) (10,847) 1,508 12 3,812 (7,327) Net liability for future policy benefits, after other adjustments, at current discount rates $ 169,521 $ 1,675,555 $ 620,481 $ 143,579 $ 1,112 $ 2,610,248 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. Health Net liability for future policy benefits as of March 31, 2023 United American Family Heritage Liberty National American Income Direct to Consumer Total Net liability for future policy benefits at original discount rates 131,149 1,636,912 485,372 110,724 (2,965) 2,361,192 Effect of changes in discount rate assumptions 3,590 (126,654) 43,177 15,143 (188) (64,932) Net liability for future policy benefits at current discount rates 134,739 1,510,258 528,549 125,867 (3,153) 2,296,260 Other Adjustments 1,771 (9,362) 4,348 333 4,162 1,252 Net liability for future policy benefits, after other adjustments, at current discount rates $ 136,510 $ 1,500,896 $ 532,897 $ 126,200 $ 1,009 $ 2,297,512 (1) Other adjustments include the Company's reinsurance recoverable and the effects of capping and flooring the liability. The following table reconciles the liability for future policy benefits to the C onsolidated B alance S heets as of March 31, 2023: At Original Discount Rates At Current Discount Rates As of March 31, As of March 31, 2023 2022 2023 2022 Life (1) : American Income $ 4,247,758 $ 3,916,187 $ 5,169,780 $ 6,005,498 Direct to Consumer 2,844,707 2,642,729 3,518,676 4,042,514 Liberty National 2,206,288 2,153,030 2,431,415 2,830,800 Other 2,952,802 2,846,161 3,646,706 4,292,945 Net liability for future policy benefits—long duration life 12,251,555 11,558,107 14,766,577 17,171,757 Health (1) : United American 130,992 135,891 136,510 169,521 Family Heritage 1,626,881 1,524,185 1,500,896 1,675,555 Liberty National 488,546 505,319 532,897 620,481 American Income 111,096 108,693 126,200 143,579 Direct to Consumer 961 1,004 1,009 1,112 Net liability for future policy benefits—long duration health 2,358,476 2,275,092 2,297,512 2,610,248 Deferred profit liability 177,248 184,451 177,248 184,451 Deferred annuity 907,797 1,027,087 907,797 1,027,087 Interest sensitive life 737,900 744,244 737,900 744,244 Other 9,540 8,118 9,540 8,118 Total future policy benefits $ 16,442,516 $ 15,797,099 $ 18,896,574 $ 21,745,905 (1) Balances are presented net of the reinsurance recoverable and the effects of flooring the liability. The following tables provide the weighted-average original and current discount rates for the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: Life Weighted-average Discount Rates March 31, 2023 March 31, 2022 American Income DTC Liberty National Other American Income DTC Liberty National Other Original discount rate 5.8 % 6.0 % 5.6 % 6.2 % 5.8 % 6.0 % 5.6 % 6.2 % Current discount rate 4.9 % 5.0 % 5.0 % 5.0 % 4.0 % 4.0 % 3.9 % 3.9 % Health Weighted-average Discount Rates March 31, 2023 March 31, 2022 United American Family Heritage Liberty National American Income DTC United American Family Heritage Liberty National American Income DTC Original discount rate 5.2 % 4.3 % 5.8 % 5.9 % 5.2 % 5.2 % 4.4 % 5.8 % 5.9 % 5.2 % Current discount rate 4.8 % 4.9 % 4.9 % 4.8 % 4.8 % 3.8 % 3.9 % 3.6 % 3.8 % 3.8 % The following table provides the weighted-average durations of the liability for future policy benefits and the additional insurance liabilities for the periods ended March 31, 2023 and 2022: March 31, 2023 2022 At original discount rates At current discount rates At original discount rates At current discount rates Life American Income 22.90 23.33 22.80 23.78 Direct to Consumer 20.24 21.82 20.81 22.93 Liberty National 14.94 15.63 15.08 16.85 Other 16.52 18.23 16.76 19.59 Health United American 11.40 10.80 11.68 11.83 Family Heritage 14.91 14.43 15.28 15.80 Liberty National 9.31 9.66 9.01 10.11 American Income 12.15 12.74 12.45 13.95 Direct to Consumer 11.40 10.80 11.68 11.83 The following tables summarize the amount of gross premiums and interest, net of reinsurance, related to long duration life and health contracts that are recognized in the Condensed Consolidated Statements of Operations : Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest American Income $ 387,145 $ 61,431 $ 369,737 $ 57,262 Direct to Consumer 244,707 41,714 242,662 39,292 Liberty National 84,072 29,769 79,348 29,285 Other 51,835 44,275 52,387 42,697 Total $ 767,759 $ 177,189 $ 744,134 $ 168,536 Health Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Gross Interest Gross Interest United American $ 97,833 $ 1,822 $ 92,266 $ 1,914 Family Heritage 96,090 15,977 89,540 14,545 Liberty National 46,745 6,920 47,496 7,226 American Income 28,096 1,632 27,937 1,601 Direct to Consumer 3,542 — 3,536 — Total $ 272,306 $ 26,351 $ 260,775 $ 25,286 The following tables provide the undiscounted and discounted expected future net premiums, expected future gross premiums and expected future policy benefits, at both original and current discount rates, for life and health contracts: Life Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates American Income PV of expected future net premiums $ 7,617,532 $ 4,325,957 $ 4,467,637 $ 7,115,131 $ 4,043,480 $ 4,646,747 PV of expected future gross premiums 23,041,514 13,054,486 13,575,751 21,851,854 12,374,587 14,324,455 PV of expected future policy benefits 28,821,998 8,573,734 9,637,463 26,930,450 7,959,694 10,652,256 DTC PV of expected future net premiums $ 10,832,386 $ 5,718,900 $ 6,110,550 $ 10,630,110 $ 5,595,772 $ 6,710,655 PV of expected future gross premiums 17,479,516 9,165,113 9,773,835 17,414,120 9,103,648 10,912,941 PV of expected future policy benefits 25,582,750 8,563,604 9,624,680 24,876,834 8,238,501 10,750,349 Liberty National PV of expected future net premiums $ 1,889,419 $ 1,070,775 $ 1,128,083 $ 1,855,371 $ 1,043,765 $ 1,224,988 PV of expected future gross premiums 4,453,139 2,599,082 2,667,795 4,265,146 2,485,460 2,848,626 PV of expected future policy benefits 8,658,766 3,284,594 3,559,012 8,514,395 3,208,055 4,066,234 Other PV of expected future net premiums $ 919,924 $ 448,677 $ 483,056 $ 869,727 $ 419,434 $ 511,832 PV of expected future gross premiums 3,798,669 1,920,302 2,126,949 3,907,011 1,950,624 2,441,512 PV of expected future policy benefits 12,392,224 3,427,535 4,166,527 12,277,130 3,290,269 4,848,375 Total PV of expected future net premiums $ 21,259,261 $ 11,564,309 $ 12,189,326 $ 20,470,339 $ 11,102,451 $ 13,094,222 PV of expected future gross premiums 48,772,838 26,738,983 28,144,330 47,438,131 25,914,319 30,527,534 PV of expected future policy benefits 75,455,738 23,849,467 26,987,682 72,598,809 22,696,519 30,317,214 |
Undiscounted and Discounted Expected Future Gross Premiums and Expected Future Benefits And Expenses | Health Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 Not discounted At original discount rates At current discount rates Not discounted At original discount rates At current discount rates United American PV of expected future net premiums $ 4,685,306 $ 2,948,641 $ 2,997,723 $ 4,763,592 $ 2,957,769 $ 3,337,152 PV of expected future gross premiums 6,783,819 4,279,547 4,346,007 6,781,444 4,226,705 4,765,664 PV of expected future policy benefits 4,909,212 3,079,790 3,132,462 5,057,861 3,095,417 3,508,485 Family Heritage PV of expected future net premiums $ 2,908,079 $ 1,750,468 $ 1,664,414 $ 2,784,235 $ 1,699,135 $ 1,790,237 PV of expected future gross premiums 6,442,316 3,846,392 3,682,300 5,897,650 3,570,212 3,791,575 PV of expected future policy benefits 6,358,594 3,387,380 3,174,672 6,004,155 3,232,281 3,476,639 Liberty National PV of expected future net premiums $ 634,061 $ 404,647 $ 421,447 $ 641,225 $ 401,751 $ 463,452 PV of expected future gross premiums 2,232,290 1,396,334 1,468,763 2,174,779 1,356,873 1,577,158 PV of expected future policy benefits 1,575,745 890,019 949,996 1,594,836 905,739 1,082,425 American Income PV of expected future net premiums $ 351,655 $ 197,446 $ 200,666 $ 323,828 $ 183,679 $ 208,064 PV of expected future gross premiums 1,760,671 984,216 1,037,339 1,723,857 963,321 1,130,227 PV of expected future policy benefits 626,151 308,170 326,533 599,187 292,356 351,631 Direct to Consumer PV of expected future net premiums $ 131,187 $ 85,966 $ 90,243 $ 148,614 $ 94,408 $ 109,734 PV of expected future gross premiums 171,266 112,442 118,105 204,317 130,162 151,140 PV of expected future policy benefits 124,597 83,001 87,090 143,711 92,272 107,034 Total PV of expected future net premiums 8,710,288 5,387,168 5,374,493 8,661,494 5,336,742 5,908,639 PV of expected future gross premiums 17,390,362 10,618,931 10,652,514 16,782,047 10,247,273 11,415,764 PV of expected future policy benefits 13,594,299 7,748,360 7,670,753 13,399,750 7,618,065 8,526,214 |
Summary Of Policyholder Account Balance | The following table summarizes the balances of, and changes in, policyholders’ account balances as of March 31, 2023 and 2022: Policyholders' Account Balances 2023 2022 Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Interest Sensitive Life Deferred Annuity Other Policyholders' Funds Balance at January 1 , $ 739,105 954,318 123,234 $ 745,335 $ 1,033,525 $ 99,468 Issuances — 202 — — 340 — Premiums received 6,030 4,776 21,662 6,297 8,216 2,044 Policy charges (3,319) — — (3,474) — — Surrenders and withdrawals (5,384) (43,533) (3,303) (5,280) (11,873) (2,805) Benefit payments (7,844) (15,784) — (8,999) (12,073) — Interest credited 7,135 7,560 1,238 7,170 8,290 1,125 Other 2,177 258 (145) 3,195 662 292 Balance at March 31 , $ 737,900 $ 907,797 $ 142,686 $ 744,244 $ 1,027,087 $ 100,124 Weighted-average credit rate 3.92 % 3.29 % 3.78 % 3.91 % 3.26 % 4.58 % Net amount at risk $ 1,847,128 N/A N/A $ 1,952,631 N/A N/A Cash surrender value 676,247 907,797 142,686 693,201 1,027,064 100,124 |
Policyholder Account Balance, Guaranteed Minimum Crediting Rate | The following tables present the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of difference, if any, in basis points between rates being credited to policy holders and the respective guaranteed minimums: At March 31, 2023 Range of guaranteed minimum crediting rates Interest Sensitive Life (1) Deferred Annuity (1) Other Policyholders' Funds (1) At guaranteed minimum Less than 3.00% $ — $ 1,971 $ 43,191 3.00%-3.99% 28,956 698,952 4,097 4.00%-4.99% 619,411 206,874 57,596 Greater than 5.00% 89,533 — 37,802 Total $ 737,900 $ 907,797 $ 142,686 (1) All of the Company's policyholders' account balances had actual crediting rates at the guaranteed minimum. At March 31, 2022 Range of guaranteed minimum crediting rates Interest Sensitive Life (1) Deferred Annuity (1) Other Policyholders' Funds (1) At guaranteed minimum Less than 3.00% $ — $ 2,254 $ — 3.00%-3.99% 28,684 811,865 2,911 4.00%-4.99% 626,179 212,968 58,990 Greater than 5.00% 89,381 — 38,223 Total $ 744,244 $ 1,027,087 $ 100,124 |
Deferred Acquisition Costs (Tab
Deferred Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Analysis of Deferred Acquisition Costs | The following table presents the Company's deferred policy acquisition costs, both before and after the Transition Date: January 1, December 31, 2021 2020 Life: American Income $ 1,647,761 $ 1,647,761 Direct to Consumer 1,498,970 1,498,435 Liberty National 531,504 531,504 Other 304,786 304,459 Total life 3,983,021 3,982,159 Health: United American 65,020 74,353 Family Heritage 364,751 364,751 Liberty National 124,754 124,888 American Income 39,477 39,477 Direct to Consumer 2,215 6,600 Total health 596,217 610,069 Annuity 8,309 3,216 Total DAC $ 4,587,547 $ 4,595,444 The following table presents the effect of transition adjustments due to the adoption of ASU 2018-12 on Shareholders' Equity: Retained Earnings Accumulated Other Comprehensive Income (Loss) Other (1) Total Shareholders’ Equity, as of December 31, 2020 $ 5,874,109 $ 3,029,244 $ (132,261) $ 8,771,092 Effect of changes in discount rate assumptions — (7,829,753) — (7,829,753) Effect of capping and flooring (38,992) — — (38,992) Effect of removal of unrealized gain (loss) on DAC — 4,704 — 4,704 Other adjustments 26,470 — — 26,470 Shareholders’ Equity, as of January 1, 2021 $ 5,861,587 $ (4,795,805) $ (132,261) $ 933,521 The following tables roll forward the deferred policy acquisition costs for the three months ended March 31, 2023 and 2022: Life American Income DTC Liberty National Other Total Balance at January 1, 2022 $ 1,960,254 $ 1,583,695 $ 566,419 $ 301,647 $ 4,412,015 Capitalizations 114,428 48,216 20,465 3,487 186,596 Amortization expense (33,513) (23,172) (11,046) (4,198) (71,929) Foreign exchange adjustment 1,738 — — — 1,738 Experience adjustment — — — — — Balance at March 31, 2022 $ 2,042,907 $ 1,608,739 $ 575,838 $ 300,936 $ 4,528,420 Balance at January 1, 2023 $ 2,258,291 $ 1,676,931 $ 610,723 $ 298,346 $ 4,844,291 Capitalizations 115,395 47,410 24,221 3,321 190,347 Amortization expense (38,299) (24,753) (12,412) (4,125) (79,589) Foreign exchange adjustment (2,787) — — — (2,787) Experience adjustment — — — — — Balance at March 31, 2023 $ 2,332,600 $ 1,699,588 $ 622,532 $ 297,542 $ 4,952,262 Health United American Family Heritage Liberty National American Income DTC Total Balance at January 1, 2022 $ 81,140 $ 388,967 $ 127,537 $ 49,406 $ 2,032 $ 649,082 Capitalizations 580 12,363 4,121 3,155 — 20,219 Amortization expense (1,516) (6,405) (3,320) (829) (44) (12,114) Foreign exchange adjustment — — — 88 — 88 Experience adjustment — — — — — — Balance at March 31, 2022 $ 80,204 $ 394,925 $ 128,338 $ 51,820 $ 1,988 $ 657,275 Balance at January 1, 2023 $ 77,394 $ 416,608 $ 133,096 $ 57,811 $ 1,854 $ 686,763 Capitalizations 507 15,097 4,882 3,143 — 23,629 Amortization expense (1,513) (6,560) (3,250) (938) (47) (12,308) Foreign exchange adjustment — — — (126) — (126) Experience adjustment — — — — — — Balance at March 31, 2023 $ 76,388 $ 425,145 $ 134,728 $ 59,890 $ 1,807 $ 697,958 The following table presents a reconciliation of deferred policy acquisition costs to the Consolidated Balance Sheets as of March 31, 2023: March 31, 2023 2022 Life American Income $ 2,332,600 $ 2,042,907 Direct to Consumer 1,699,588 1,608,739 Liberty National 622,532 575,838 Other 297,542 300,936 Total DAC - Life 4,952,262 4,528,420 Health United American 76,388 80,204 Family Heritage 425,145 394,925 Liberty National 134,728 128,338 American Income 59,890 51,820 Direct to Consumer 1,807 1,988 Total DAC - Health 697,958 657,275 Annuity 4,218 5,988 Tota l $ 5,654,438 $ 5,191,683 |
Liability for Unpaid Claims (Ta
Liability for Unpaid Claims (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Insurance [Abstract] | |
Summary of Liability for Unpaid Health Claims | Activity in the liability for unpaid health claims is summarized as follows: March 31, December 31, Balance at beginning of period $ 182,202 $ 171,109 Incurred related to: Current year 173,865 676,190 Prior year (1,923) (15,631) Total incurred 171,942 660,559 Paid related to: Current year 72,870 517,856 Prior year 99,876 131,610 Total paid 172,746 649,466 Balance at end of period $ 181,398 $ 182,202 |
Schedule of Reconciliation of Policy Claims and Other Benefits Payable | Below is the reconciliation of the liability of " Policy claims and other benefits payable" in the Consolidated Balance Sheets . March 31, December 31, Policy claims and other benefits payable: Life insurance $ 307,898 $ 325,017 Health insurance 181,398 182,202 Total $ 489,296 $ 507,219 |
Postretirement Benefits (Tables
Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Assets by Component at Fair Value | Pension Assets: The following table presents the assets of the Company's Pension Plans at March 31, 2023 and December 31, 2022. Pension Assets by Component at March 31, 2023 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % of Corporate bonds: Financial $ — $ 22,482 $ — $ 22,482 4 Utilities — 20,838 — 20,838 4 Energy — 7,564 — 7,564 2 Other corporates — 26,433 — 26,433 5 Total corporate bonds — 77,317 — 77,317 15 Exchange traded fund (1) 276,478 — — 276,478 53 U.S. Government and Agency — 76,643 — 76,643 15 Other bonds — 202 — 202 — Guaranteed annuity contract (2) — 43,297 — 43,297 8 Short-term investments 23,016 — — 23,016 4 Other 12,379 — — 12,379 2 $ 311,873 $ 197,459 $ — 509,332 97 Other long-term investments (3) 13,767 3 Total pension assets $ 523,099 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan. (3) Included in other long-term investments is an investment fund that reports the Globe Life Inc. Pension Plan's pro-rata share of the limited partnership's net asset value per share or its equivalent (NAV), as a practical expedient for fair value. The Globe Life Inc. Pension Plan owns less than 1% of the investment fund. As of March 31, 2023, the expected term of the investment fund is approximately 2 years and the commitment of the investment is fully funded. The investment is non-redeemable. Pension Assets by Component at December 31, 2022 Fair Value Determined by: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Amount % of Corporate bonds: Financial $ — $ 35,649 $ — $ 35,649 7 Utilities — 23,436 — 23,436 5 Energy — 12,776 — 12,776 3 Other corporates — 56,786 — 56,786 11 Total corporate bonds — 128,647 — 128,647 26 Exchange traded fund (1) 258,297 — — 258,297 52 U.S. Government and Agency — 44,213 — 44,213 9 Other bonds — 200 — 200 — Guaranteed annuity contract (2) — 43,116 — 43,116 8 Short-term investments 4,467 — — 4,467 1 Other 6,547 — — 6,547 1 $ 269,311 $ 216,176 $ — 485,487 97 Other long-term investments (3) 14,288 3 Total pension assets $ 499,775 100 (1) A fund including marketable securities that mirror the S&P 500 index. (2) Representing a guaranteed annuity contract issued by Globe Life Inc.'s subsidiary, American Income Life Insurance Company, to fund the obligations of the American Income Life Insurance Company Collective Bargaining Agreement Employees Pension Plan. |
Schedule of Information Regarding the SERP | The following table includes information regarding the SERP. Three Months Ended 2023 2022 Premiums paid for insurance coverage $ 443 $ 443 March 31, December 31, Total investments: Company owned life insurance $ 54,788 $ 54,681 Exchange traded funds 74,632 71,258 $ 129,420 $ 125,939 |
Schedule of Pension Liability | The following table presents liabilities for the defined benefit pension plans and SERP at March 31, 2023 and December 31, 2022. March 31, December 31, Pension Plans $ 517,770 $ 492,103 SERP 70,499 70,464 Pension benefit obligation $ 588,269 $ 562,567 |
Schedule of Net Periodic Benefit Cost | The following table presents the net periodic benefit costs for the Pension Plans and SERP by expense components for the three months ended March 31, 2023 and 2022. Components of Net Periodic Benefit Cost Three Months Ended 2023 2022 Service cost $ 5,392 $ 8,655 Interest cost 7,834 6,123 Expected return on assets (9,656) (8,885) Amortization: Prior service cost 269 158 Actuarial (gain) loss (52) 3,209 Net periodic benefit cost $ 3,787 $ 9,260 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic and Diluted Weighted-Average Shares Outstanding | A reconciliation of basic and diluted weighted-average shares outstanding used in the computation of basic and diluted earnings per share is as follows: Three Months Ended 2023 2022 Basic weighted average shares outstanding 96,388,211 99,273,616 Weighted average dilutive options outstanding 1,522,889 976,758 Diluted weighted average shares outstanding 97,911,100 100,250,374 Antidilutive shares 209,870 563,991 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Selected Information about Debt Issues | The following table presents information about the terms and outstanding balances of Globe Life's debt. Selected Information about Debt Issues As of March 31, December 31, Instrument Issue Date Maturity Date Coupon Rate Par Unamortized Discount & Issuance Costs Book Fair Book Senior notes 5/27/1993 5/15/2023 7.875% $ 165,612 $ (38) $ 165,574 $ 164,746 $ 165,500 Senior notes 9/27/2018 9/15/2028 4.550% 550,000 (4,229) 545,771 546,348 545,601 Senior notes 8/21/2020 8/15/2030 2.150% 400,000 (3,668) 396,332 323,984 396,219 Senior notes (1) 5/19/2022 6/15/2032 4.800% 250,000 (4,412) 245,588 241,275 245,493 Junior subordinated debentures 11/17/2017 11/17/2057 5.275% 125,000 (1,585) 123,415 124,265 123,410 Junior subordinated debentures 6/14/2021 6/15/2061 4.250% 325,000 (7,752) 317,248 248,300 317,229 1,815,612 (21,684) 1,793,928 1,648,918 1,793,452 Less current maturity of long-term debt 165,612 (38) 165,574 164,746 165,500 Total long-term debt 1,650,000 (21,646) 1,628,354 1,484,172 1,627,952 Current maturity of long-term debt 165,612 (38) 165,574 164,746 165,500 FHLB borrowings 45,000 — 45,000 45,000 — Commercial paper 305,000 (1,327) 303,673 303,673 283,603 Total short-term debt 515,612 (1,365) 514,247 513,419 449,103 Total deb t $ 2,165,612 $ (23,011) $ 2,142,601 $ 1,997,591 $ 2,077,055 (1) An additional $150 million par value and book value is held by insurance subsidiaries that eliminates in consolidation. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Premium Income by Distribution Channel | Three Months Ended March 31, 2023 Life Health Annuity Total Distribution Channel Amount % of Amount % of Amount % of Amount % of American Income $ 387,512 50 $ 29,594 9 $ — — $ 417,106 38 Direct to Consumer 247,667 32 17,248 5 — — 264,915 24 Liberty National 85,203 11 46,972 15 — — 132,175 12 United American 1,882 — 132,607 41 — — 134,489 12 Family Heritage 1,480 — 96,072 30 — — 97,552 9 Other 48,853 7 — — — — 48,853 5 $ 772,597 100 $ 322,493 100 $ — — $ 1,095,090 100 Three Months Ended March 31, 2022 Life Health Annuity Total Distribution Channel Amount % of Total Amount % of Total Amount % of Total Amount % of Total American Income $ 370,106 49 $ 28,766 9 $ — — $ 398,872 37 Direct to Consumer 245,732 33 17,928 6 — — 263,660 25 Liberty National 80,560 11 47,760 15 — — 128,320 12 United American 2,074 — 131,690 42 — — 133,764 13 Family Heritage 1,359 — 89,540 28 — — 90,899 8 Other 49,297 7 — — — — 49,297 5 $ 749,128 100 $ 315,684 100 $ — — $ 1,064,812 100 |
Schedule of Reconciliation of Segment Operating Information to Consolidated Statement of Operations | The following tables set forth a reconciliation of Globe Life's revenues and operations by segment to its major income statement line items. See Note 1—Significant Accounting Policies for additional information concerning reconciling items of segment profits to pretax income. Three Months Ended March 31, 2023 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 772,597 $ 322,493 $ — $ — $ — $ — $ 1,095,090 Net investment income — — — 257,105 — — 257,105 Other income — — — — 50 — 50 Total revenue 772,597 322,493 — 257,105 50 — 1,352,245 Expenses: Policy benefits 507,977 190,962 7,541 1,447 — — 707,927 Required interest on reserves (189,821) (26,323) (10,259) 226,403 — — — Amortization of acquisition costs 79,589 12,308 425 — — — 92,322 Commissions, premium taxes, and non-deferred acquisition costs 83,578 54,214 5 — — — 137,797 Insurance administrative expense (1) — — — — 73,907 73,907 Parent expense — — — — 2,585 — 2,585 Stock-based compensation expense — — — — 7,679 — 7,679 Interest expense — — — — 24,867 — 24,867 Total expenses 481,323 231,161 (2,288) 227,850 109,038 — 1,047,084 Subtotal 291,274 91,332 2,288 29,255 (108,988) — 305,161 Non-operating items — — — — — — Measure of segment profitability (pretax) $ 291,274 $ 91,332 $ 2,288 $ 29,255 $ (108,988) $ — 305,161 Realized gain (loss)—investments (30,927) Income before income taxes per Condensed Consolidated Statements of Operations $ 274,234 (1) Administrative expense is not allocated to insurance segments. Three Months Ended March 31, 2022 Life Health Annuity Investment Corporate & Other Adjustments Consolidated Revenue: Premium $ 749,128 $ 315,684 $ — $ — $ — $ — $ 1,064,812 Net investment income — — — 244,894 — — 244,894 Other income — — — — 164 — 164 Total revenue 749,128 315,684 — 244,894 164 — 1,309,870 Expenses: Policy obligations 495,429 189,018 8,642 1,060 — — 694,149 Required interest on reserves (181,372) (25,270) (11,367) 218,009 — — — Amortization of acquisition costs 71,929 12,114 453 — — — 84,496 Commissions, premium taxes, and non-deferred acquisition costs 73,548 51,952 9 — — — 125,509 Insurance administrative expense (1) — — — — 72,565 112 (2) 72,677 Parent expense — — — — 2,640 2,640 Stock-based compensation expense — — — — 9,035 — 9,035 Interest expense — — — — 19,944 — 19,944 Total expenses 459,534 227,814 (2,263) 219,069 104,184 112 1,008,450 Subtotal 289,594 87,870 2,263 25,825 (104,020) (112) 301,420 Non-operating items — — — — — 112 (2) 112 Measure of segment profitability (pretax) $ 289,594 $ 87,870 $ 2,263 $ 25,825 $ (104,020) $ — 301,532 Realized gain (loss)—investments (7,244) Non-operating expenses (112) Income before income taxes per Condensed Consolidated Statements of Operations $ 294,176 (1) Administrative expense is not allocated to insurance segments. (2) Non-operating expenses. |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2023 segment | |
Significant of Account Policies [Line Items] | |
Number of reportable segments | 4 |
Life insurance | |
Significant of Account Policies [Line Items] | |
Proportion of future policy reserves which are not universal life type | 91% |
New Accounting Standards - Sche
New Accounting Standards - Schedule of Liability for Future Policy Benefits, Nonparticipating Traditional Life (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | $ 18,896,574 | $ 18,040,042 | |||
Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | $ 16,721,846 | ||||
Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (3,138,215) | $ (7,620,695) | $ 9,057,475 | ||
Effect of capping and flooring | 19,334 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 14,766,577 | 17,171,757 | $ 19,987,227 | ||
Life | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 10,910,418 | ||||
Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (77,607) | (908,149) | 853,606 | ||
Effect of capping and flooring | 30,023 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 2,297,512 | 2,610,248 | 2,998,631 | ||
Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 2,115,002 | ||||
American Income | Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (1,063,729) | (2,692,562) | 3,334,600 | ||
Effect of capping and flooring | 0 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 5,169,780 | 6,005,498 | 6,875,917 | ||
American Income | Life | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 3,541,317 | ||||
American Income | Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | 18,363 | (59,275) | 60,366 | ||
Effect of capping and flooring | 0 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 126,200 | 143,579 | 162,364 | ||
American Income | Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 101,998 | ||||
DTC | Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (1,061,076) | (2,511,848) | 2,195,430 | ||
Effect of capping and flooring | 16,899 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 3,518,676 | 4,042,514 | 4,704,555 | ||
DTC | Life | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 2,492,226 | ||||
DTC | Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | 4,089 | (14,762) | 346 | ||
Effect of capping and flooring | 4,193 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 1,009 | 1,112 | 1,598 | ||
DTC | Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | (2,941) | ||||
Liberty National | Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (274,418) | (858,179) | 1,229,610 | ||
Effect of capping and flooring | 2,433 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 2,431,415 | 2,830,800 | 3,372,114 | ||
Liberty National | Life | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 2,140,071 | ||||
Liberty National | Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | 59,977 | (176,686) | 219,992 | ||
Effect of capping and flooring | 19,324 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 532,897 | 620,481 | 740,628 | ||
Liberty National | Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 501,312 | ||||
Other | Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | 2,297,835 | ||||
Effect of capping and flooring | 2 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 5,034,641 | ||||
Other | Life | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 2,736,804 | ||||
United American | Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | 52,672 | (413,068) | 75,652 | ||
Effect of capping and flooring | 6,506 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | 136,510 | 169,521 | 213,663 | ||
United American | Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | 131,505 | ||||
Family Heritage | Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Effect of changes in discount rate assumptions | (212,708) | (244,358) | 497,250 | ||
Effect of capping and flooring | 0 | ||||
Balance, net of reinsurance, at current discount rates as of January 1, 2021 | $ 1,500,896 | $ 1,675,555 | $ 1,880,378 | ||
Family Heritage | Health | Previously Reported | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Balance, net of reinsurance, at original discount rates as of December 31, 2020 | $ 1,383,128 |
New Accounting Standards - Liab
New Accounting Standards - Liability For Future Policy Benefits To Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Additional insurance liabilities | $ 2,008,399 | $ 2,218,116 | |||
Total future policy benefits | 24,994,257 | 15,243,536 | |||
Unearned and advance premium | $ 271,517 | $ 253,140 | 243,369 | 61,728 | |
Policy claims and other benefits payable | 489,296 | 507,219 | 473,524 | 399,507 | |
Other policyholders' funds | 142,686 | 123,236 | 98,459 | 97,968 | |
Total policy liabilities | 19,800,073 | $ 18,923,637 | 25,809,609 | 15,802,739 | |
Life | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Total future policy benefits | 14,798,356 | $ 17,222,992 | 19,987,227 | 10,910,418 | |
Health | |||||
Liability for Future Policy Benefit, Activity [Line Items] | |||||
Total future policy benefits | $ 2,296,260 | $ 2,617,575 | $ 2,998,631 | $ 2,115,002 |
New Accounting Standards - Defe
New Accounting Standards - Deferred Policy Acquisition Costs to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | $ 5,654,438 | $ 5,535,697 | $ 5,191,683 | $ 4,587,547 | $ 4,595,444 | |
Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 4,952,262 | 4,844,291 | 4,528,420 | $ 4,412,015 | 3,983,021 | 3,982,159 |
Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 697,958 | 686,763 | 657,275 | 649,082 | 596,217 | 610,069 |
Annuity | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 4,218 | 5,988 | 8,309 | 3,216 | ||
American Income | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 2,332,600 | 2,258,291 | 2,042,907 | 1,960,254 | 1,647,761 | 1,647,761 |
American Income | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 59,890 | 57,811 | 51,820 | 49,406 | 39,477 | 39,477 |
Direct to Consumer | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 1,699,588 | 1,676,931 | 1,608,739 | 1,583,695 | 1,498,970 | 1,498,435 |
Direct to Consumer | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 1,807 | 1,854 | 1,988 | 2,032 | 2,215 | 6,600 |
Liberty National | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 622,532 | 610,723 | 575,838 | 566,419 | 531,504 | 531,504 |
Liberty National | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 134,728 | 133,096 | 128,338 | 127,537 | 124,754 | 124,888 |
United American | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 76,388 | 77,394 | 80,204 | 81,140 | 65,020 | 74,353 |
Family Heritage | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 425,145 | 416,608 | 394,925 | 388,967 | 364,751 | 364,751 |
Other | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | $ 297,542 | $ 298,346 | $ 300,936 | $ 301,647 | $ 304,786 | $ 304,459 |
New Accounting Standards - Li_2
New Accounting Standards - Liability For Future Policy Benefits To Consolidated Statements of Shareholders' Equity: (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Stockholders' equity | $ 3,846,291 | $ 3,949,577 | $ 2,544,275 | $ 2,003,808 | $ 933,521 | $ 8,771,092 |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Effect of changes in discount rate assumptions | (7,829,753) | |||||
Effect of capping and flooring | (38,992) | |||||
Effect of removal of unrealized gain (loss) on DAC | 4,704 | |||||
Other adjustments | 26,470 | |||||
Retained Earnings | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Stockholders' equity | 7,092,544 | 6,894,535 | 6,662,365 | 6,455,733 | 5,861,587 | 5,874,109 |
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Effect of changes in discount rate assumptions | 0 | |||||
Effect of capping and flooring | (38,992) | |||||
Effect of removal of unrealized gain (loss) on DAC | 0 | |||||
Other adjustments | 26,470 | |||||
Accumulated Other Comprehensive Income (Loss) | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Stockholders' equity | $ (2,961,093) | $ (2,790,313) | $ (3,827,006) | $ (4,235,048) | (4,795,805) | 3,029,244 |
Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Effect of changes in discount rate assumptions | (7,829,753) | |||||
Effect of capping and flooring | 0 | |||||
Effect of removal of unrealized gain (loss) on DAC | 4,704 | |||||
Other adjustments | 0 | |||||
Other | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Stockholders' equity | $ (132,261) | (132,261) | ||||
Other | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||||
Effect of changes in discount rate assumptions | 0 | |||||
Effect of capping and flooring | 0 | |||||
Effect of removal of unrealized gain (loss) on DAC | 0 | |||||
Other adjustments | $ 0 |
New Accounting Standards - Bala
New Accounting Standards - Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Assets: | |||||
Other receivables | $ 594,421 | $ 589,079 | |||
Deferred acquisition costs | 5,654,438 | 5,535,697 | $ 5,191,683 | $ 4,587,547 | $ 4,595,444 |
Liabilities: | |||||
Future policy benefits | 18,896,574 | 18,040,042 | |||
Unearned and advance premium | 271,517 | 253,140 | 243,369 | 61,728 | |
Policy claims and other benefits payable | 489,296 | 507,219 | $ 473,524 | $ 399,507 | |
Current and deferred income taxes | 427,608 | 434,649 | |||
Shareholders' equity: | |||||
Accumulated other comprehensive income | (2,961,093) | (2,790,313) | |||
Retained earnings | $ 7,092,544 | 6,894,535 | |||
Previously Reported | |||||
Assets: | |||||
Other receivables | 484,887 | ||||
Deferred acquisition costs | 5,249,907 | ||||
Liabilities: | |||||
Future policy benefits | 16,721,846 | ||||
Unearned and advance premium | 60,742 | ||||
Policy claims and other benefits payable | 430,027 | ||||
Current and deferred income taxes | 686,172 | ||||
Shareholders' equity: | |||||
Accumulated other comprehensive income | (1,415,714) | ||||
Retained earnings | 6,466,220 | ||||
Revision of Prior Period, Adjustment | |||||
Assets: | |||||
Other receivables | 104,192 | ||||
Deferred acquisition costs | 285,790 | ||||
Liabilities: | |||||
Future policy benefits | 1,318,196 | ||||
Unearned and advance premium | 192,398 | ||||
Policy claims and other benefits payable | 77,192 | ||||
Current and deferred income taxes | (251,523) | ||||
Shareholders' equity: | |||||
Accumulated other comprehensive income | (1,374,599) | ||||
Retained earnings | $ 428,315 |
New Accounting Standards - Stat
New Accounting Standards - Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Premium | $ 1,095,090 | $ 1,064,812 |
Net investment income | 257,105 | 244,894 |
Benefits and expenses: | ||
Life policyholder benefits | 507,977 | 495,429 |
Health policyholder benefits | 190,962 | 189,018 |
Other policyholder benefits | 8,988 | 9,702 |
Amortization of deferred acquisition costs | 92,322 | 84,496 |
Commissions, premium taxes, and non-deferred acquisition costs | 137,797 | 125,509 |
Income before income taxes | 274,234 | 294,176 |
Income tax benefit (expense) | (50,624) | (56,692) |
Net income | $ 223,610 | $ 237,484 |
Basic net income per common share (in dollars per share) | $ 2.32 | $ 2.39 |
Diluted net income per common share (in dollars per share) | $ 2.28 | $ 2.37 |
Previously Reported | ||
Revenue: | ||
Net investment income | $ 243,834 | |
Benefits and expenses: | ||
Life policyholder benefits | 549,343 | |
Health policyholder benefits | 196,855 | |
Other policyholder benefits | 7,050 | |
Amortization of deferred acquisition costs | 158,384 | |
Commissions, premium taxes, and non-deferred acquisition costs | 90,813 | |
Income before income taxes | 201,615 | |
Income tax benefit (expense) | (37,254) | |
Net income | $ 164,361 | |
Basic net income per common share (in dollars per share) | $ 1.66 | |
Diluted net income per common share (in dollars per share) | $ 1.64 | |
Revision of Prior Period, Adjustment | ||
Revenue: | ||
Net investment income | $ 1,060 | |
Benefits and expenses: | ||
Life policyholder benefits | (53,914) | |
Health policyholder benefits | (7,837) | |
Other policyholder benefits | 2,652 | |
Amortization of deferred acquisition costs | (73,888) | |
Commissions, premium taxes, and non-deferred acquisition costs | 34,696 | |
Income before income taxes | 92,561 | |
Income tax benefit (expense) | (19,438) | |
Net income | $ 73,123 | |
Basic net income per common share (in dollars per share) | $ 0.73 | |
Diluted net income per common share (in dollars per share) | $ 0.73 | |
Life insurance | ||
Revenue: | ||
Premium | $ 772,597 | $ 749,128 |
Life insurance | Previously Reported | ||
Revenue: | ||
Premium | 754,602 | |
Life insurance | Revision of Prior Period, Adjustment | ||
Revenue: | ||
Premium | (5,474) | |
Health premium | ||
Revenue: | ||
Premium | $ 322,493 | 315,684 |
Health premium | Previously Reported | ||
Revenue: | ||
Premium | 317,000 | |
Health premium | Revision of Prior Period, Adjustment | ||
Revenue: | ||
Premium | $ (1,316) |
Supplemental Information abou_3
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Schedule of Change in Balance by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | $ 3,949,577 | $ 2,003,808 |
Other comprehensive income (loss) before reclassifications, net of tax | (196,489) | 408,511 |
Reclassifications, net of tax | 25,709 | (469) |
Other comprehensive income (loss) | (170,780) | 408,042 |
Ending balance | 3,846,291 | 2,544,275 |
Total | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (2,790,313) | (4,235,048) |
Ending balance | (2,961,093) | (3,827,006) |
Available for Sale Assets | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (1,420,672) | 2,765,290 |
Other comprehensive income (loss) before reclassifications, net of tax | 378,162 | (1,811,185) |
Reclassifications, net of tax | 25,746 | (3,184) |
Other comprehensive income (loss) | 403,908 | (1,814,369) |
Ending balance | (1,016,764) | 950,921 |
Future Policy Benefits | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (1,369,204) | (6,915,910) |
Other comprehensive income (loss) before reclassifications, net of tax | (569,503) | 2,216,355 |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | (569,503) | 2,216,355 |
Ending balance | (1,938,707) | (4,699,555) |
Foreign Exchange | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | (1,681) | 19,248 |
Other comprehensive income (loss) before reclassifications, net of tax | (5,148) | 3,341 |
Reclassifications, net of tax | 0 | 0 |
Other comprehensive income (loss) | (5,148) | 3,341 |
Ending balance | (6,829) | 22,589 |
Pension Adjustments | ||
Increase (Decrease) in AOCI, Net of Tax | ||
Beginning balance | 1,244 | (103,676) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 | 0 |
Reclassifications, net of tax | (37) | 2,715 |
Other comprehensive income (loss) | (37) | 2,715 |
Ending balance | $ 1,207 | $ (100,961) |
Supplemental Information abou_4
Supplemental Information about Changes to Accumulated Other Comprehensive Income - Summary of Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Unrealized investment (gains) losses on available for sale assets: | ||
Realized (gains) losses | $ 30,927 | $ 7,244 |
Net investment income | (257,105) | (244,894) |
Other operating expense | 84,171 | 84,352 |
Total before tax | (274,234) | (294,176) |
Tax | 50,624 | 56,692 |
Total after-tax | (223,610) | (237,484) |
Reclassification out of Accumulated Other Comprehensive Income | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Total after-tax | 25,709 | (469) |
Reclassification out of Accumulated Other Comprehensive Income | Unrealized Gains (Losses) on Available for Sale Assets | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Realized (gains) losses | 33,124 | (4,937) |
Net investment income | (534) | 907 |
Total before tax | 32,590 | (4,030) |
Tax | (6,844) | 846 |
Total after-tax | 25,746 | (3,184) |
Reclassification out of Accumulated Other Comprehensive Income | Pension Adjustments | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Total before tax | (48) | 3,437 |
Tax | 11 | (722) |
Total after-tax | (37) | 2,715 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service cost | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Other operating expense | 269 | 158 |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of actuarial (gain) loss | ||
Unrealized investment (gains) losses on available for sale assets: | ||
Other operating expense | $ (317) | $ 3,279 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities Available for Sale by Component (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Allowance for Credit Losses | $ (32,767) | $ 0 |
Fair value | 17,206,885 | 16,503,365 |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,526,703 | 18,301,692 |
Allowance for Credit Losses | (32,767) | 0 |
Gross Unrealized Gains | 371,301 | 238,967 |
Gross Unrealized Losses | (1,658,352) | (2,037,294) |
Fair value | $ 17,206,885 | $ 16,503,365 |
Percentage of Fixed Maturities at Fair Value | 100% | 100% |
U.S. Government direct, guaranteed, and government-sponsored enterprises | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 389,441 | $ 394,439 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 114 | 27 |
Gross Unrealized Losses | (27,482) | (38,968) |
Fair value | $ 362,073 | $ 355,498 |
Percentage of Fixed Maturities at Fair Value | 2% | 2% |
States, municipalities, and political subdivisions | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,894,161 | $ 2,791,030 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 41,407 | 24,328 |
Gross Unrealized Losses | (426,929) | (505,447) |
Fair value | $ 2,508,639 | $ 2,309,911 |
Percentage of Fixed Maturities at Fair Value | 15% | 14% |
Foreign governments | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 53,789 | $ 55,164 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 13 | 6 |
Gross Unrealized Losses | (11,282) | (12,706) |
Fair value | $ 42,520 | $ 42,464 |
Percentage of Fixed Maturities at Fair Value | 0% | 0% |
Corporates | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 15,064,568 | $ 14,935,625 |
Allowance for Credit Losses | (32,767) | 0 |
Gross Unrealized Gains | 321,039 | 201,336 |
Gross Unrealized Losses | (1,185,701) | (1,470,897) |
Fair value | $ 14,167,139 | $ 13,666,064 |
Percentage of Fixed Maturities at Fair Value | 82% | 83% |
Corporates | Financial | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 4,973,445 | $ 4,907,794 |
Allowance for Credit Losses | (26,040) | 0 |
Gross Unrealized Gains | 84,796 | 63,126 |
Gross Unrealized Losses | (453,394) | (504,489) |
Fair value | $ 4,578,807 | $ 4,466,431 |
Percentage of Fixed Maturities at Fair Value | 27% | 27% |
Corporates | Utilities | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,958,888 | $ 1,924,190 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 70,798 | 36,670 |
Gross Unrealized Losses | (94,579) | (125,713) |
Fair value | $ 1,935,107 | $ 1,835,147 |
Percentage of Fixed Maturities at Fair Value | 11% | 11% |
Corporates | Energy | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,434,766 | $ 1,436,598 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 38,477 | 22,637 |
Gross Unrealized Losses | (80,338) | (101,923) |
Fair value | $ 1,392,905 | $ 1,357,312 |
Percentage of Fixed Maturities at Fair Value | 8% | 8% |
Corporates | Other corporate sectors | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,697,469 | $ 6,667,043 |
Allowance for Credit Losses | (6,727) | 0 |
Gross Unrealized Gains | 126,968 | 78,903 |
Gross Unrealized Losses | (557,390) | (738,772) |
Fair value | $ 6,260,320 | $ 6,007,174 |
Percentage of Fixed Maturities at Fair Value | 36% | 37% |
Collateralized debt obligations | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 36,778 | $ 37,098 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 8,724 | 13,266 |
Gross Unrealized Losses | 0 | 0 |
Fair value | $ 45,502 | $ 50,364 |
Percentage of Fixed Maturities at Fair Value | 0% | 0% |
Other asset-backed securities | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 87,966 | $ 88,336 |
Allowance for Credit Losses | 0 | 0 |
Gross Unrealized Gains | 4 | 4 |
Gross Unrealized Losses | (6,958) | (9,276) |
Fair value | $ 81,012 | $ 79,064 |
Percentage of Fixed Maturities at Fair Value | 1% | 1% |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) issuer loan Issue | Dec. 31, 2022 USD ($) Issue issuer | |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 17,206,885 | $ 16,503,365 |
Fixed maturity, portfolio issues | Issue | 2,379 | 2,328 |
Fixed portfolio, number of issuers | issuer | 987 | 979 |
Investment funds, unfunded commitments | $ 472,000 | |
Increase in allowance for credit losses | 1,300 | |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 17,206,885 | $ 16,503,365 |
Percentage of fixed maturities at fair value | 100% | 100% |
Corporates | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 14,167,139 | $ 13,666,064 |
Percentage of fixed maturities at fair value | 82% | 83% |
Banks | Corporates | Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value | $ 1,300,000 | $ 1,300,000 |
Percentage of fixed maturities at fair value | 8% | 8% |
Unfunded loan commitment | ||
Debt Securities, Available-for-sale [Line Items] | ||
Carrying value, net of valuation allowance | $ 28,000 | |
Investment in Limited Partnerships | ||
Debt Securities, Available-for-sale [Line Items] | ||
Capital called from investment funds | 21,000 | |
Investment funds, unfunded commitments | $ 471,690 | |
Commercial mortgage loan participations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of loans | loan | 25 | |
Carrying value, net of valuation allowance | $ 204,275 | $ 181,305 |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost, net | ||
Due in one year or less | $ 169,491 | |
Due after one year through five years | 1,113,684 | |
Due after five years through ten years | 1,691,785 | |
Due after ten years through twenty years | 7,976,112 | |
Due after twenty years | 7,418,120 | |
Mortgage-backed and asset-backed securities | 124,744 | |
Fixed maturities, net of allowance for credit losses | 18,493,936 | |
Fair Value | ||
Due in one year or less | 170,003 | |
Due after one year through five years | 1,118,421 | |
Due after five years through ten years | 1,717,908 | |
Due after ten years through twenty years | 7,740,695 | |
Due after twenty years | 6,333,344 | |
Mortgage-backed and asset-backed securities | 126,514 | |
Fixed maturities, fair value | $ 17,206,885 | $ 16,503,365 |
Investments - Schedule of Analy
Investments - Schedule of Analysis of Investment Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net Investment Income [Line Items] | ||
Investment income, gross | $ 261,392 | $ 249,427 |
Percentage change in investment income, gross | 5% | |
Less investment expense | $ (4,287) | (4,533) |
Percentage change in investment expense | (5.00%) | |
Net investment income | $ 257,105 | 244,894 |
Percentage change in net investment income | 5% | |
Investment distribution | $ 11,300 | 10,700 |
Fixed maturities available for sale | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 232,299 | 225,284 |
Percentage change in investment income, gross | 3% | |
Policy loans | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 11,755 | 11,428 |
Percentage change in investment income, gross | 3% | |
Other long-term investments | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 15,743 | 12,713 |
Percentage change in investment income, gross | 24% | |
Short-term investments | ||
Net Investment Income [Line Items] | ||
Investment income, gross | $ 1,595 | $ 2 |
Percentage change in investment income, gross |
Investments - Schedule of Selec
Investments - Schedule of Selected Information about Sales of Fixed Maturities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | $ 15,705 | $ 75,116 |
Fixed maturities available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
Proceeds from sales | 15,705 | 75,116 |
Gross realized gains | 0 | 773 |
Gross realized losses | $ (358) | $ (3,679) |
Investments - Realized Gain (Lo
Investments - Realized Gain (Loss) on Investments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales and other | $ (357,000) | $ 4,549,000 |
Provision for credit losses | (32,767,000) | 387,000 |
Fair value option—change in fair value | 1,858,000 | (5,338,000) |
Other investments | 339,000 | (6,842,000) |
Realized gains (losses) from investments | (30,927,000) | (7,244,000) |
Applicable tax | 6,495,000 | 1,521,000 |
Realized gains (losses), net of tax | (24,432,000) | (5,723,000) |
Exchanges of fixed maturities | 0 | 0 |
Exchanges of fixed maturities, net realized gains | $ 0 | $ 0 |
Investments - Assets Measured a
Investments - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 17,206,885 | $ 16,503,365 | |
Percentage of total | 3% | 3% | |
Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 17,206,885 | $ 16,503,365 | |
Percentage of total | 100% | 100% | |
U.S. Government direct, guaranteed, and government-sponsored enterprises | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 362,073 | $ 355,498 | |
States, municipalities, and political subdivisions | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,508,639 | 2,309,911 | |
Foreign governments | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 42,520 | 42,464 | |
Corporates | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of total | 3% | 3% | |
Corporates | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 14,167,139 | 13,666,064 | |
Corporates | Financial | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 4,578,807 | 4,466,431 | |
Corporates | Utilities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 1,935,107 | 1,835,147 | |
Corporates | Energy | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 1,392,905 | 1,357,312 | |
Corporates | Other corporate sectors | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 6,260,320 | 6,007,174 | |
Collateralized debt obligations | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of total | 0% | 0% | |
Collateralized debt obligations | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 45,502 | 50,364 | |
Other asset-backed securities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 81,012 | 79,064 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 0 | $ 0 | |
Percentage of total | 0% | 0% | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government direct, guaranteed, and government-sponsored enterprises | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 0 | $ 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | States, municipalities, and political subdivisions | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign governments | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Financial | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Utilities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Energy | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporates | Other corporate sectors | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Collateralized debt obligations | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other asset-backed securities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 16,689,744 | $ 15,974,918 | |
Percentage of total | 97% | 97% | |
Significant Other Observable Inputs (Level 2) | U.S. Government direct, guaranteed, and government-sponsored enterprises | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 362,073 | $ 355,498 | |
Significant Other Observable Inputs (Level 2) | States, municipalities, and political subdivisions | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 2,508,639 | 2,309,911 | |
Significant Other Observable Inputs (Level 2) | Foreign governments | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 42,520 | 42,464 | |
Significant Other Observable Inputs (Level 2) | Corporates | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 13,695,500 | 13,187,981 | |
Significant Other Observable Inputs (Level 2) | Corporates | Financial | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 4,445,091 | 4,332,495 | |
Significant Other Observable Inputs (Level 2) | Corporates | Utilities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 1,822,748 | 1,723,832 | |
Significant Other Observable Inputs (Level 2) | Corporates | Energy | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 1,381,989 | 1,346,212 | |
Significant Other Observable Inputs (Level 2) | Corporates | Other corporate sectors | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 6,045,672 | 5,785,442 | |
Significant Other Observable Inputs (Level 2) | Collateralized debt obligations | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Other asset-backed securities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 81,012 | 79,064 | |
Significant Unobservable Inputs (Level 3) | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 517,141 | $ 528,447 | |
Percentage of total | 3% | 3% | |
Significant Unobservable Inputs (Level 3) | U.S. Government direct, guaranteed, and government-sponsored enterprises | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 0 | $ 0 | |
Significant Unobservable Inputs (Level 3) | States, municipalities, and political subdivisions | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Foreign governments | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | Corporates | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 471,639 | 478,083 | |
Significant Unobservable Inputs (Level 3) | Corporates | Financial | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 133,716 | 133,936 | |
Significant Unobservable Inputs (Level 3) | Corporates | Utilities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 112,359 | 111,315 | |
Significant Unobservable Inputs (Level 3) | Corporates | Energy | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 10,916 | 11,100 | |
Significant Unobservable Inputs (Level 3) | Corporates | Other corporate sectors | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 214,648 | 221,732 | |
Significant Unobservable Inputs (Level 3) | Collateralized debt obligations | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 45,502 | 50,364 | |
Significant Unobservable Inputs (Level 3) | Other asset-backed securities | Fixed maturities available for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 0 | $ 0 |
Investments - Schedule of Chang
Investments - Schedule of Changes in Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 528,447 | $ 705,193 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 828 | (40,169) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,143 | 1,124 |
Other | (13,277) | (20,640) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 517,141 | $ 645,508 |
Percentage of total | 3% | 3% |
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Realized gains (losses) | Realized gains (losses) |
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 |
Asset- backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 0 | $ 0 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 0 | 0 |
Other | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 0 | $ 0 |
Percentage of total | 0% | 0% |
Collateralized debt obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 50,364 | $ 63,505 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | (4,542) | (3,809) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 1,141 | 1,123 |
Other | (1,461) | (1,281) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 45,502 | $ 59,538 |
Percentage of total | 0% | 0% |
Corporates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Beginning Balance | $ 478,083 | $ 641,688 |
Included in realized gains/losses | 0 | 0 |
Included in other comprehensive income | 5,370 | (36,360) |
Acquisitions | 0 | 0 |
Sales | 0 | 0 |
Amortization | 2 | 1 |
Other | (11,816) | (19,359) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Ending Balance | $ 471,639 | $ 585,970 |
Percentage of total | 3% | 3% |
Investments - Unrealized Gains
Investments - Unrealized Gains or (Losses) Included in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized gains (losses) for the period | $ 828 | $ (40,169) |
Asset- backed Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized gains (losses) for the period | 0 | 0 |
Collateralized debt obligations | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized gains (losses) for the period | (4,542) | (3,809) |
Corporates | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in unrealized gains (losses) for the period | $ 5,370 | $ (36,360) |
Investments - Information about
Investments - Information about Investments in Unrealized Loss Position (Details) - Issue | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Less than Twelve Months | 624 | 1,819 |
Twelve Months or Longer | 1,290 | 157 |
Total | 1,914 | 1,976 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Investment Losses by Class of Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | $ 4,268,097 | $ 11,450,679 |
Unrealized Loss, Less than Twelve Months | (238,604) | (1,846,999) |
Fair Value, Twelve Months or Longer | 6,786,036 | 433,328 |
Unrealized Loss, Twelve Months or Longer | (1,419,748) | (190,295) |
Fair Value | 11,054,133 | 11,884,007 |
Unrealized Loss | (1,658,352) | (2,037,294) |
Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 4,108,960 | 11,121,941 |
Unrealized Loss, Less than Twelve Months | (224,533) | (1,796,781) |
Fair Value, Twelve Months or Longer | 6,522,450 | 357,361 |
Unrealized Loss, Twelve Months or Longer | (1,344,978) | (158,773) |
Fair Value | 10,631,410 | 11,479,302 |
Unrealized Loss | (1,569,511) | (1,955,554) |
Investment Grade | U.S. Government direct, guaranteed, and government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 275,114 | 349,887 |
Unrealized Loss, Less than Twelve Months | (17,384) | (38,218) |
Fair Value, Twelve Months or Longer | 84,691 | 3,424 |
Unrealized Loss, Twelve Months or Longer | (10,098) | (750) |
Fair Value | 359,805 | 353,311 |
Unrealized Loss | (27,482) | (38,968) |
Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 601,542 | 1,767,624 |
Unrealized Loss, Less than Twelve Months | (23,575) | (453,149) |
Fair Value, Twelve Months or Longer | 1,219,137 | 95,124 |
Unrealized Loss, Twelve Months or Longer | (403,354) | (52,298) |
Fair Value | 1,820,679 | 1,862,748 |
Unrealized Loss | (426,929) | (505,447) |
Investment Grade | Foreign governments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 15,491 | 6,297 |
Unrealized Loss, Less than Twelve Months | (145) | (201) |
Fair Value, Twelve Months or Longer | 25,555 | 25,134 |
Unrealized Loss, Twelve Months or Longer | (11,137) | (12,505) |
Fair Value | 41,046 | 31,431 |
Unrealized Loss | (11,282) | (12,706) |
Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 3,191,080 | 8,937,976 |
Unrealized Loss, Less than Twelve Months | (182,733) | (1,299,990) |
Fair Value, Twelve Months or Longer | 5,149,436 | 225,719 |
Unrealized Loss, Twelve Months or Longer | (914,935) | (90,785) |
Fair Value | 8,340,516 | 9,163,695 |
Unrealized Loss | (1,097,668) | (1,390,775) |
Investment Grade | Corporates | Financial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 1,355,645 | 2,837,918 |
Unrealized Loss, Less than Twelve Months | (92,771) | (426,132) |
Fair Value, Twelve Months or Longer | 1,482,482 | 109,784 |
Unrealized Loss, Twelve Months or Longer | (308,161) | (42,173) |
Fair Value | 2,838,127 | 2,947,702 |
Unrealized Loss | (400,932) | (468,305) |
Investment Grade | Corporates | Utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 304,897 | 1,088,219 |
Unrealized Loss, Less than Twelve Months | (14,438) | (116,272) |
Fair Value, Twelve Months or Longer | 474,873 | 21,636 |
Unrealized Loss, Twelve Months or Longer | (77,678) | (6,268) |
Fair Value | 779,770 | 1,109,855 |
Unrealized Loss | (92,116) | (122,540) |
Investment Grade | Corporates | Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 319,199 | 855,853 |
Unrealized Loss, Less than Twelve Months | (11,489) | (91,755) |
Fair Value, Twelve Months or Longer | 332,106 | 0 |
Unrealized Loss, Twelve Months or Longer | (58,433) | 0 |
Fair Value | 651,305 | 855,853 |
Unrealized Loss | (69,922) | (91,755) |
Investment Grade | Corporates | Other corporate sectors | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 1,211,339 | 4,155,986 |
Unrealized Loss, Less than Twelve Months | (64,035) | (665,831) |
Fair Value, Twelve Months or Longer | 2,859,975 | 94,299 |
Unrealized Loss, Twelve Months or Longer | (470,663) | (42,344) |
Fair Value | 4,071,314 | 4,250,285 |
Unrealized Loss | (534,698) | (708,175) |
Investment Grade | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 25,733 | 60,157 |
Unrealized Loss, Less than Twelve Months | (696) | (5,223) |
Fair Value, Twelve Months or Longer | 43,631 | 7,960 |
Unrealized Loss, Twelve Months or Longer | (5,454) | (2,435) |
Fair Value | 69,364 | 68,117 |
Unrealized Loss | (6,150) | (7,658) |
Below Investment Grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 159,137 | 328,738 |
Unrealized Loss, Less than Twelve Months | (14,071) | (50,218) |
Fair Value, Twelve Months or Longer | 263,586 | 75,967 |
Unrealized Loss, Twelve Months or Longer | (74,770) | (31,522) |
Fair Value | 422,723 | 404,705 |
Unrealized Loss | (88,841) | (81,740) |
Below Investment Grade | States, municipalities, and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Below Investment Grade | Corporates | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 159,137 | 328,738 |
Unrealized Loss, Less than Twelve Months | (14,071) | (50,218) |
Fair Value, Twelve Months or Longer | 252,006 | 65,093 |
Unrealized Loss, Twelve Months or Longer | (73,962) | (29,904) |
Fair Value | 411,143 | 393,831 |
Unrealized Loss | (88,033) | (80,122) |
Below Investment Grade | Corporates | Financial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 79,716 | 120,377 |
Unrealized Loss, Less than Twelve Months | (9,059) | (18,901) |
Fair Value, Twelve Months or Longer | 106,971 | 38,348 |
Unrealized Loss, Twelve Months or Longer | (43,403) | (17,283) |
Fair Value | 186,687 | 158,725 |
Unrealized Loss | (52,462) | (36,184) |
Below Investment Grade | Corporates | Utilities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 8,265 | 27,722 |
Unrealized Loss, Less than Twelve Months | (662) | (3,173) |
Fair Value, Twelve Months or Longer | 20,166 | 0 |
Unrealized Loss, Twelve Months or Longer | (1,801) | 0 |
Fair Value | 28,431 | 27,722 |
Unrealized Loss | (2,463) | (3,173) |
Below Investment Grade | Corporates | Energy | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 14,480 |
Unrealized Loss, Less than Twelve Months | 0 | (2,182) |
Fair Value, Twelve Months or Longer | 34,289 | 20,075 |
Unrealized Loss, Twelve Months or Longer | (10,416) | (7,986) |
Fair Value | 34,289 | 34,555 |
Unrealized Loss | (10,416) | (10,168) |
Below Investment Grade | Corporates | Other corporate sectors | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 71,156 | 166,159 |
Unrealized Loss, Less than Twelve Months | (4,350) | (25,962) |
Fair Value, Twelve Months or Longer | 90,580 | 6,670 |
Unrealized Loss, Twelve Months or Longer | (18,342) | (4,635) |
Fair Value | 161,736 | 172,829 |
Unrealized Loss | (22,692) | (30,597) |
Below Investment Grade | Collateralized debt obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 0 | 0 |
Unrealized Loss, Twelve Months or Longer | 0 | 0 |
Fair Value | 0 | 0 |
Unrealized Loss | 0 | 0 |
Below Investment Grade | Other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value, Less than Twelve Months | 0 | 0 |
Unrealized Loss, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Longer | 11,580 | 10,874 |
Unrealized Loss, Twelve Months or Longer | (808) | (1,618) |
Fair Value | 11,580 | 10,874 |
Unrealized Loss | $ (808) | $ (1,618) |
Investments - Fixed Maturities,
Investments - Fixed Maturities, Allowance for Credit Loss (Details) - Corporates - Fixed maturities available for sale - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses beginning balance | $ 0 | $ 387 |
Additions to allowance for which credit losses were not previously recorded | 32,767 | 0 |
Additions (reductions) to allowance for fixed maturities that previously had an allowance | 0 | 0 |
Reduction of allowance for which the Company intends to sell or more likely than not will be required to sell or sold during the period | 0 | (387) |
Allowance for credit losses ending balance | $ 32,767 | $ 0 |
Investments - Schedule of Other
Investments - Schedule of Other Long-Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Long-Term Investment [Line Items] | ||
Commercial mortgage loan participations | $ 1,022,611 | $ 976,016 |
Commercial mortgage loan participations | ||
Long-Term Investment [Line Items] | ||
Commercial mortgage loan participations | 204,275 | 181,305 |
Other | ||
Long-Term Investment [Line Items] | ||
Commercial mortgage loan participations | 29,139 | 26,022 |
Partnership Interest - Fair Value Option | Investment funds | ||
Long-Term Investment [Line Items] | ||
Commercial mortgage loan participations | $ 789,197 | $ 768,689 |
Investments - Schedule of Inves
Investments - Schedule of Investment Funds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Alternative Investment [Line Items] | ||
Investment funds, unfunded commitments | $ 472,000 | |
Investment funds | ||
Alternative Investment [Line Items] | ||
Investment funds, fair value | 789,197 | $ 768,689 |
Investment funds, unfunded commitments | 471,690 | |
Capital called from investment funds | 21,000 | |
Investment funds | Commercial mortgage loans | ||
Alternative Investment [Line Items] | ||
Investment funds, fair value | 454,144 | 431,405 |
Investment funds, unfunded commitments | 330,245 | |
Investment funds | Opportunistic credit | ||
Alternative Investment [Line Items] | ||
Investment funds, fair value | 157,899 | 158,524 |
Investment funds, unfunded commitments | $ 0 | |
Investments, initial redemption, term | 2 years | |
Investments, redemption, term | 36 months | |
Investment funds | Infrastructure | ||
Alternative Investment [Line Items] | ||
Investment funds, fair value | $ 158,036 | 159,534 |
Investment funds, unfunded commitments | 21,366 | |
Investment funds | Other investments | ||
Alternative Investment [Line Items] | ||
Investment funds, fair value | 19,118 | $ 19,226 |
Investment funds, unfunded commitments | $ 120,079 |
Investments - Commercial Mortga
Investments - Commercial Mortgage Loan Participations (Details) - Commercial mortgage loan participations - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 207,344 | $ 183,094 | ||
Carrying value, gross, percent | 102% | 101% | ||
Less allowance for credit losses | $ (3,069) | $ (1,789) | $ (827) | $ (827) |
Allowance for credit losses, percent | (2.00%) | (1.00%) | ||
Carrying value, net of valuation allowance | $ 204,275 | $ 181,305 | ||
Carrying value, net, percent | 100% | 100% | ||
Less than 70% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 168,131 | $ 144,395 | ||
Carrying value, net, percent | 81% | 79% | ||
70% to 80% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 8,460 | $ 23,358 | ||
Carrying value, net, percent | 4% | 13% | ||
81% to 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 8,307 | $ 8,307 | ||
Carrying value, net, percent | 4% | 4% | ||
Greater than 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 22,446 | $ 7,034 | ||
Carrying value, net, percent | 11% | 4% | ||
California | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 64,990 | $ 64,477 | ||
Carrying value, gross, percent | 32% | 36% | ||
Texas | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 23,132 | $ 22,905 | ||
Carrying value, gross, percent | 12% | 13% | ||
New York | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 27,570 | $ 19,167 | ||
Carrying value, gross, percent | 14% | 11% | ||
Washington | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 14,939 | $ 14,925 | ||
Carrying value, gross, percent | 7% | 8% | ||
Massachusetts | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 14,925 | $ 0 | ||
Carrying value, gross, percent | 7% | 0% | ||
Florida | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 33,217 | $ 33,182 | ||
Carrying value, gross, percent | 16% | 18% | ||
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 28,571 | $ 28,438 | ||
Carrying value, gross, percent | 14% | 15% | ||
Mixed use | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 59,965 | $ 62,375 | ||
Carrying value, gross, percent | 29% | 34% | ||
Hospitality | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 28,033 | $ 27,796 | ||
Carrying value, gross, percent | 14% | 15% | ||
Retail | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 23,744 | $ 15,342 | ||
Carrying value, gross, percent | 12% | 9% | ||
Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 27,259 | $ 27,248 | ||
Carrying value, gross, percent | 13% | 15% | ||
Multi-family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 57,206 | $ 42,232 | ||
Carrying value, gross, percent | 28% | 23% | ||
Office | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 11,137 | $ 8,101 | ||
Carrying value, gross, percent | 6% | 5% |
Investments - Commercial Mort_2
Investments - Commercial Mortgage Loan Participations Recorded Investment (Details) - Commercial mortgage loan participations - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | $ 204,275 | $ 181,305 | ||
Carrying value | 207,344 | 183,094 | ||
Less allowance for credit losses | $ (3,069) | $ (1,789) | $ (827) | $ (827) |
Carrying value, net of valuation allowance, percent | 100% | 100% | ||
Less than 70% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 168,131 | $ 144,395 | ||
Carrying value, net of valuation allowance, percent | 81% | 79% | ||
70% to 80% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 8,460 | $ 23,358 | ||
Carrying value, net of valuation allowance, percent | 4% | 13% | ||
81% to 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 8,307 | $ 8,307 | ||
Carrying value, net of valuation allowance, percent | 4% | 4% | ||
Greater than 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value | $ 22,446 | $ 7,034 | ||
Carrying value, net of valuation allowance, percent | 11% | 4% | ||
Less Than 1.00x | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | $ 39,577 | $ 39,562 | ||
Less Than 1.00x | Less than 70% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 24,235 | 24,221 | ||
Less Than 1.00x | 70% to 80% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 0 | 0 | ||
Less Than 1.00x | 81% to 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 8,307 | 8,307 | ||
Less Than 1.00x | Greater than 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 7,035 | 7,034 | ||
1.00x-1.20x | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 146,099 | 130,276 | ||
1.00x-1.20x | Less than 70% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 123,466 | 108,156 | ||
1.00x-1.20x | 70% to 80% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 7,222 | 22,120 | ||
1.00x-1.20x | 81% to 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 0 | 0 | ||
1.00x-1.20x | Greater than 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 15,411 | 0 | ||
Greater Than 1.20x | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 21,668 | 13,256 | ||
Greater Than 1.20x | Less than 70% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 20,430 | 12,018 | ||
Greater Than 1.20x | 70% to 80% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 1,238 | 1,238 | ||
Greater Than 1.20x | 81% to 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | 0 | 0 | ||
Greater Than 1.20x | Greater than 90% | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Carrying value, net of valuation allowance | $ 0 | $ 0 |
Investments - Commercial Mort_3
Investments - Commercial Mortgage Loan Participations, Allowance for Credit Loss (Details) - Commercial mortgage loan participations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Allowance for credit losses beginning balance | $ 1,789 | $ 827 |
Provision (reversal) for credit losses | 1,280 | 0 |
Allowance for credit losses ending balance | $ 3,069 | $ 827 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Mar. 31, 2023 USD ($) |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Letters of credit outstanding | $ 115 |
Letter of Credit | |
Obligation with Joint and Several Liability Arrangement [Line Items] | |
Letter of credit maximum available amount | $ 250 |
Policy Liabilities - Liability
Policy Liabilities - Liability for Future Policy Benefit, Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Net liability for future policy benefits—long duration health | $ 24,994,257 | $ 15,243,536 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | $ 18,896,574 | $ 18,040,042 | ||||
Life | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 11,748,528 | $ 14,082,538 | ||||
Beginning balance | 11,442,919 | 10,896,222 | ||||
Effect of changes in assumptions of future cash flows | 0 | $ 0 | ||||
Effect of actual variances from expected experience | (85,445) | (32,883) | ||||
Adjusted balance | 11,357,474 | 10,863,339 | ||||
Issuances | 398,890 | 419,966 | ||||
Interest accrual | 137,847 | 128,664 | ||||
Net premiums collected | (325,903) | (312,418) | ||||
Effect of changes in the foreign exchange rate | (3,999) | 2,900 | ||||
Ending balance | 11,564,309 | 11,102,451 | ||||
Effect of change from original to current discount rates | 625,017 | 1,991,771 | ||||
Ending balance | 12,189,326 | 13,094,222 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 25,749,961 | 33,664,308 | ||||
Beginning balance | 23,564,337 | 22,374,930 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (90,423) | (26,976) | ||||
Adjusted balance | 23,473,914 | 22,347,954 | ||||
Issuances | 398,890 | 419,966 | ||||
Interest accrual | 315,731 | 297,774 | ||||
Benefit payments | (329,357) | (375,686) | ||||
Effect of changes in the foreign exchange rate | (9,711) | 6,511 | ||||
Ending balance | 23,849,467 | 22,696,519 | ||||
Effect of changes in discount rate assumptions | 3,138,215 | 7,620,695 | (9,057,475) | |||
Ending balance | 26,987,682 | 30,317,214 | ||||
Net liability for future policy benefits at original discount rates | 12,285,158 | 11,594,068 | ||||
Effect of changes in discount rate assumptions | 2,513,198 | 5,628,924 | ||||
Net liability for future policy benefits—long duration health | 14,798,356 | 17,222,992 | 19,987,227 | 10,910,418 | ||
Other Adjustments | (51,235) | (31,779) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 14,766,577 | 17,171,757 | 19,987,227 | |||
Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 5,207,422 | 6,418,018 | ||||
Beginning balance | 5,366,304 | 5,328,427 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (73,669) | (84,529) | ||||
Adjusted balance | 5,292,635 | 5,243,898 | ||||
Issuances | 169,533 | 165,699 | ||||
Interest accrual | 55,769 | 53,164 | ||||
Net premiums collected | (130,381) | (126,331) | ||||
Effect of changes in the foreign exchange rate | (388) | 312 | ||||
Ending balance | 5,387,168 | 5,336,742 | ||||
Effect of change from original to current discount rates | 12,675 | (571,897) | ||||
Ending balance | 5,374,493 | 5,908,639 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 7,394,349 | 9,353,001 | ||||
Beginning balance | 7,710,767 | 7,587,083 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (71,097) | (86,581) | ||||
Adjusted balance | 7,639,670 | 7,500,502 | ||||
Issuances | 169,355 | 165,616 | ||||
Interest accrual | 82,334 | 78,625 | ||||
Benefit payments | (142,291) | (127,235) | ||||
Effect of changes in the foreign exchange rate | (708) | 557 | ||||
Ending balance | 7,748,360 | 7,618,065 | ||||
Effect of changes in discount rate assumptions | 77,607 | 908,149 | (853,606) | |||
Ending balance | 7,670,753 | 8,526,214 | ||||
Net liability for future policy benefits at original discount rates | 2,361,192 | 2,281,323 | ||||
Effect of changes in discount rate assumptions | (64,932) | 336,252 | ||||
Net liability for future policy benefits—long duration health | 2,296,260 | 2,617,575 | 2,998,631 | 2,115,002 | ||
Other Adjustments | 1,252 | (7,327) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 2,297,512 | 2,610,248 | 2,998,631 | |||
American Income | Life | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 4,273,156 | 4,925,192 | ||||
Beginning balance | 4,246,723 | 3,906,098 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (29,981) | (4,315) | ||||
Adjusted balance | 4,216,742 | 3,901,783 | ||||
Issuances | 192,555 | 215,926 | ||||
Interest accrual | 47,898 | 43,074 | ||||
Net premiums collected | (127,239) | (120,203) | ||||
Effect of changes in the foreign exchange rate | (3,999) | 2,900 | ||||
Ending balance | 4,325,957 | 4,043,480 | ||||
Effect of change from original to current discount rates | 141,680 | 603,267 | ||||
Ending balance | 4,467,637 | 4,646,747 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 9,119,104 | 11,773,519 | ||||
Beginning balance | 8,409,761 | 7,744,201 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (31,526) | (2,959) | ||||
Adjusted balance | 8,378,235 | 7,741,242 | ||||
Issuances | 192,555 | 215,926 | ||||
Interest accrual | 109,329 | 100,336 | ||||
Benefit payments | (96,674) | (104,321) | ||||
Effect of changes in the foreign exchange rate | (9,711) | 6,511 | ||||
Ending balance | 8,573,734 | 7,959,694 | ||||
Effect of changes in discount rate assumptions | 1,063,729 | 2,692,562 | (3,334,600) | |||
Ending balance | 9,637,463 | 10,652,256 | ||||
Net liability for future policy benefits at original discount rates | 4,247,777 | 3,916,214 | ||||
Effect of changes in discount rate assumptions | 922,049 | 2,089,295 | ||||
Net liability for future policy benefits—long duration health | 5,169,826 | 6,005,509 | ||||
Other Adjustments | (11) | (46) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 5,169,780 | 6,005,498 | 6,875,917 | |||
American Income | Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 190,296 | 222,553 | ||||
Beginning balance | 192,631 | 178,801 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (1,621) | (2,465) | ||||
Adjusted balance | 191,010 | 176,336 | ||||
Issuances | 10,212 | 10,452 | ||||
Interest accrual | 2,036 | 1,831 | ||||
Net premiums collected | (5,424) | (5,252) | ||||
Effect of changes in the foreign exchange rate | (388) | 312 | ||||
Ending balance | 197,446 | 183,679 | ||||
Effect of change from original to current discount rates | (3,220) | (24,385) | ||||
Ending balance | 200,666 | 208,064 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 312,750 | 380,915 | ||||
Beginning balance | 303,713 | 285,604 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (1,578) | (2,645) | ||||
Adjusted balance | 302,135 | 282,959 | ||||
Issuances | 10,212 | 10,452 | ||||
Interest accrual | 3,668 | 3,432 | ||||
Benefit payments | (7,137) | (5,044) | ||||
Effect of changes in the foreign exchange rate | (708) | 557 | ||||
Ending balance | 308,170 | 292,356 | ||||
Effect of changes in discount rate assumptions | (18,363) | 59,275 | (60,366) | |||
Ending balance | 326,533 | 351,631 | ||||
Net liability for future policy benefits at original discount rates | 110,724 | 108,677 | ||||
Effect of changes in discount rate assumptions | 15,143 | 34,890 | ||||
Net liability for future policy benefits—long duration health | 125,867 | 143,567 | ||||
Other Adjustments | 333 | 12 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 126,200 | 143,579 | 162,364 | |||
Direct to Consumer | Life | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 5,910,224 | 7,264,905 | ||||
Beginning balance | 5,680,864 | 5,533,741 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (47,988) | (29,595) | ||||
Adjusted balance | 5,632,876 | 5,504,146 | ||||
Issuances | 168,952 | 173,775 | ||||
Interest accrual | 70,991 | 67,608 | ||||
Net premiums collected | (153,919) | (149,757) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 5,718,900 | 5,595,772 | ||||
Effect of change from original to current discount rates | 391,650 | 1,114,883 | ||||
Ending balance | 6,110,550 | 6,710,655 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 9,225,451 | 11,859,408 | ||||
Beginning balance | 8,477,892 | 8,157,259 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (48,947) | (25,850) | ||||
Adjusted balance | 8,428,945 | 8,131,409 | ||||
Issuances | 168,952 | 173,775 | ||||
Interest accrual | 112,768 | 106,928 | ||||
Benefit payments | (147,061) | (173,611) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 8,563,604 | 8,238,501 | ||||
Effect of changes in discount rate assumptions | 1,061,076 | 2,511,848 | (2,195,430) | |||
Ending balance | 9,624,680 | 10,750,349 | ||||
Net liability for future policy benefits at original discount rates | 2,844,704 | 2,642,729 | ||||
Effect of changes in discount rate assumptions | 669,426 | 1,396,965 | ||||
Net liability for future policy benefits—long duration health | 3,514,130 | 4,039,694 | ||||
Other Adjustments | 2,820 | 4,546 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 3,518,676 | 4,042,514 | 4,704,555 | |||
Direct to Consumer | Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 90,143 | 121,724 | ||||
Beginning balance | 87,751 | 96,776 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (2,573) | (1,880) | ||||
Adjusted balance | 85,178 | 94,896 | ||||
Issuances | 2,392 | 880 | ||||
Interest accrual | 1,057 | 1,182 | ||||
Net premiums collected | (2,661) | (2,550) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 85,966 | 94,408 | ||||
Effect of change from original to current discount rates | (4,277) | (15,326) | ||||
Ending balance | 90,243 | 109,734 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 87,532 | 119,888 | ||||
Beginning balance | 85,212 | 95,628 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (2,302) | (2,025) | ||||
Adjusted balance | 82,910 | 93,603 | ||||
Issuances | 2,388 | 876 | ||||
Interest accrual | 1,057 | 1,182 | ||||
Benefit payments | (3,354) | (3,389) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 83,001 | 92,272 | ||||
Effect of changes in discount rate assumptions | (4,089) | 14,762 | (346) | |||
Ending balance | 87,090 | 107,034 | ||||
Net liability for future policy benefits at original discount rates | (2,965) | (2,136) | ||||
Effect of changes in discount rate assumptions | (188) | (564) | ||||
Net liability for future policy benefits—long duration health | (3,153) | (2,700) | ||||
Other Adjustments | 4,162 | 3,812 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 1,009 | 1,112 | 1,598 | |||
Liberty National | Life | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 1,094,407 | 1,332,469 | ||||
Beginning balance | 1,066,123 | 1,040,242 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (5,590) | (625) | ||||
Adjusted balance | 1,060,533 | 1,039,617 | ||||
Issuances | 30,142 | 22,965 | ||||
Interest accrual | 13,288 | 12,810 | ||||
Net premiums collected | (33,188) | (31,627) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 1,070,775 | 1,043,765 | ||||
Effect of change from original to current discount rates | 57,308 | 181,223 | ||||
Ending balance | 1,128,083 | 1,224,988 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 3,429,256 | 4,542,697 | ||||
Beginning balance | 3,272,980 | 3,206,164 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (7,054) | 153 | ||||
Adjusted balance | 3,265,926 | 3,206,317 | ||||
Issuances | 30,142 | 22,965 | ||||
Interest accrual | 43,256 | 42,230 | ||||
Benefit payments | (54,730) | (63,457) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 3,284,594 | 3,208,055 | ||||
Effect of changes in discount rate assumptions | 274,418 | 858,179 | (1,229,610) | |||
Ending balance | 3,559,012 | 4,066,234 | ||||
Net liability for future policy benefits at original discount rates | 2,213,819 | 2,164,290 | ||||
Effect of changes in discount rate assumptions | 217,110 | 676,956 | ||||
Net liability for future policy benefits—long duration health | 2,430,929 | 2,841,246 | ||||
Other Adjustments | (10,446) | 486 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 2,431,415 | 2,830,800 | 3,372,114 | |||
Liberty National | Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 423,490 | 517,368 | ||||
Beginning balance | 415,442 | 414,409 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (16,585) | (15,462) | ||||
Adjusted balance | 398,857 | 398,947 | ||||
Issuances | 13,303 | 10,815 | ||||
Interest accrual | 4,890 | 4,872 | ||||
Net premiums collected | (12,403) | (12,883) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 404,647 | 401,751 | ||||
Effect of change from original to current discount rates | (16,800) | (61,701) | ||||
Ending balance | 421,447 | 463,452 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 941,574 | 1,201,317 | ||||
Beginning balance | 904,865 | 921,608 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (15,995) | (15,790) | ||||
Adjusted balance | 888,870 | 905,818 | ||||
Issuances | 13,285 | 10,866 | ||||
Interest accrual | 11,840 | 12,120 | ||||
Benefit payments | (23,976) | (23,065) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 890,019 | 905,739 | ||||
Effect of changes in discount rate assumptions | (59,977) | 176,686 | (219,992) | |||
Ending balance | 949,996 | 1,082,425 | ||||
Net liability for future policy benefits at original discount rates | 485,372 | 503,988 | ||||
Effect of changes in discount rate assumptions | 43,177 | 114,985 | ||||
Net liability for future policy benefits—long duration health | 528,549 | 618,973 | ||||
Other Adjustments | 4,348 | 1,508 | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 532,897 | 620,481 | 740,628 | |||
Other | Life | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 470,741 | 559,972 | ||||
Beginning balance | 449,209 | 416,141 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (1,886) | 1,652 | ||||
Adjusted balance | 447,323 | 417,793 | ||||
Issuances | 7,241 | 7,300 | ||||
Interest accrual | 5,670 | 5,172 | ||||
Net premiums collected | (11,557) | (10,831) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 448,677 | 419,434 | ||||
Effect of change from original to current discount rates | 34,379 | 92,398 | ||||
Ending balance | 483,056 | 511,832 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 3,976,150 | 5,488,684 | ||||
Beginning balance | 3,403,704 | 3,267,306 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (2,896) | 1,680 | ||||
Adjusted balance | 3,400,808 | 3,268,986 | ||||
Issuances | 7,241 | 7,300 | ||||
Interest accrual | 50,378 | 48,280 | ||||
Benefit payments | (30,892) | (34,297) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 3,427,535 | 3,290,269 | ||||
Effect of changes in discount rate assumptions | 738,992 | 1,558,106 | ||||
Ending balance | 4,166,527 | 4,848,375 | ||||
Net liability for future policy benefits at original discount rates | 2,978,858 | 2,870,835 | ||||
Effect of changes in discount rate assumptions | 704,613 | 1,465,708 | ||||
Net liability for future policy benefits—long duration health | 3,683,471 | 4,336,543 | ||||
Other Adjustments | (43,598) | (36,765) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 3,646,706 | 4,292,945 | ||||
United American | Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 2,908,501 | 3,611,659 | ||||
Beginning balance | 2,941,261 | 2,949,851 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (34,132) | (49,560) | ||||
Adjusted balance | 2,907,129 | 2,900,291 | ||||
Issuances | 75,839 | 90,034 | ||||
Interest accrual | 31,587 | 30,339 | ||||
Net premiums collected | (65,914) | (62,895) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 2,948,641 | 2,957,769 | ||||
Effect of change from original to current discount rates | (49,082) | (379,383) | ||||
Ending balance | 2,997,723 | 3,337,152 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 3,046,829 | 3,810,559 | ||||
Beginning balance | 3,080,633 | 3,090,901 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (31,443) | (50,453) | ||||
Adjusted balance | 3,049,190 | 3,040,448 | ||||
Issuances | 75,683 | 89,904 | ||||
Interest accrual | 33,480 | 32,308 | ||||
Benefit payments | (78,563) | (67,243) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 3,079,790 | 3,095,417 | ||||
Effect of changes in discount rate assumptions | (52,672) | 413,068 | (75,652) | |||
Ending balance | 3,132,462 | 3,508,485 | ||||
Net liability for future policy benefits at original discount rates | 131,149 | 137,648 | ||||
Effect of changes in discount rate assumptions | 3,590 | 33,685 | ||||
Net liability for future policy benefits—long duration health | 134,739 | 171,333 | ||||
Other Adjustments | 1,771 | (1,812) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 136,510 | 169,521 | 213,663 | |||
Family Heritage | Health | ||||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||||
Beginning balance | 1,594,992 | 1,944,714 | ||||
Beginning balance | 1,729,219 | 1,688,590 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (18,758) | (15,162) | ||||
Adjusted balance | 1,710,461 | 1,673,428 | ||||
Issuances | 67,787 | 53,518 | ||||
Interest accrual | 16,199 | 14,940 | ||||
Net premiums collected | (43,979) | (42,751) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 1,750,468 | 1,699,135 | ||||
Effect of change from original to current discount rates | 86,054 | (91,102) | ||||
Ending balance | 1,664,414 | 1,790,237 | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||||
Beginning balance | 3,005,664 | 3,840,322 | ||||
Beginning balance | 3,336,344 | 3,193,342 | ||||
Effect of changes in assumptions of future cash flows | 0 | 0 | ||||
Effect of actual variances from expected experience | (19,779) | (15,668) | ||||
Adjusted balance | $ 3,316,565 | $ 3,177,674 | ||||
Issuances | 67,787 | 53,518 | ||||
Interest accrual | 32,289 | 29,583 | ||||
Benefit payments | (29,261) | (28,494) | ||||
Effect of changes in the foreign exchange rate | 0 | 0 | ||||
Ending balance | 3,387,380 | 3,232,281 | ||||
Effect of changes in discount rate assumptions | 212,708 | 244,358 | $ (497,250) | |||
Ending balance | 3,174,672 | 3,476,639 | ||||
Net liability for future policy benefits at original discount rates | 1,636,912 | 1,533,146 | ||||
Effect of changes in discount rate assumptions | (126,654) | 153,256 | ||||
Net liability for future policy benefits—long duration health | 1,510,258 | 1,686,402 | ||||
Other Adjustments | (9,362) | (10,847) | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | $ 1,500,896 | $ 1,675,555 | $ 1,880,378 |
Policy Liabilities - Additional
Policy Liabilities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Effect of actual variances from expected experience | $ (90,423) | $ (26,976) | ||
PV of expected future net premiums | $ 12,189,326 | $ 13,094,222 | 11,748,528 | 14,082,538 |
PV of expected future gross premiums | 28,100,000 | 30,500,000 | ||
Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Policyholder benefits net of remeasurement gain (loss) | 659 | (3,800) | ||
Effect of actual variances from expected experience | (71,097) | (86,581) | ||
PV of expected future net premiums | 5,374,493 | 5,908,639 | $ 5,207,422 | $ 6,418,018 |
PV of expected future gross premiums | 10,600,000 | 11,400,000 | ||
Mortality | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Effect of actual variances from expected experience | 2,700 | (5,800) | ||
Morbidity | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Effect of actual variances from expected experience | $ (2,000) | $ 2,000 |
Policy Liabilities - Liabilit_2
Policy Liabilities - Liability For Future Policy Benefits To Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Jan. 01, 2021 |
At Original Discount Rates | ||||
Deferred profit liability | $ 177,248 | $ 184,451 | ||
Deferred annuity | 907,797 | 1,027,087 | ||
Interest sensitive life | 737,900 | 744,244 | ||
Other | 9,540 | 8,118 | ||
Total future policy benefits | 16,442,516 | $ 16,306,870 | 15,797,099 | |
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 18,896,574 | $ 18,040,042 | ||
Deferred profit liability | 177,248 | 184,451 | ||
Deferred annuity | 907,797 | 1,027,087 | ||
Interest sensitive life | 737,900 | 744,244 | ||
Other | 9,540 | 8,118 | ||
Total future policy benefits | 18,896,574 | 21,745,905 | ||
Life | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 12,251,555 | 11,558,107 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 14,766,577 | 17,171,757 | $ 19,987,227 | |
Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 2,358,476 | 2,275,092 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 2,297,512 | 2,610,248 | 2,998,631 | |
American Income | Life | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 4,247,758 | 3,916,187 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 5,169,780 | 6,005,498 | 6,875,917 | |
American Income | Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 111,096 | 108,693 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 126,200 | 143,579 | 162,364 | |
Direct to Consumer | Life | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 2,844,707 | 2,642,729 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 3,518,676 | 4,042,514 | 4,704,555 | |
Direct to Consumer | Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 961 | 1,004 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 1,009 | 1,112 | 1,598 | |
Liberty National | Life | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 2,206,288 | 2,153,030 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 2,431,415 | 2,830,800 | 3,372,114 | |
Liberty National | Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 488,546 | 505,319 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 532,897 | 620,481 | 740,628 | |
Other | Life | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 2,952,802 | 2,846,161 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 3,646,706 | 4,292,945 | ||
United American | Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 130,992 | 135,891 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | 136,510 | 169,521 | 213,663 | |
Family Heritage | Health | ||||
At Original Discount Rates | ||||
Net liability for future policy benefits—long duration life | 1,626,881 | 1,524,185 | ||
At Current Discount Rates | ||||
Net liability for future policy benefits, after other adjustments, at current discount rates | $ 1,500,896 | $ 1,675,555 | $ 1,880,378 |
Policy Liabilities - Weighted A
Policy Liabilities - Weighted Average Interest Rate of Liability For Future Policy Benefits (Details) | Mar. 31, 2023 | Mar. 31, 2022 |
American Income | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.80% | 5.80% |
Weighted average discount rate | 4.90% | 4% |
American Income | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.90% | 5.90% |
Weighted average discount rate | 4.80% | 3.80% |
DTC | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 6% | 6% |
Weighted average discount rate | 5% | 4% |
DTC | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.20% | 5.20% |
Weighted average discount rate | 4.80% | 3.80% |
Liberty National | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.60% | 5.60% |
Weighted average discount rate | 5% | 3.90% |
Liberty National | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.80% | 5.80% |
Weighted average discount rate | 4.90% | 3.60% |
Other | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 6.20% | 6.20% |
Weighted average discount rate | 5% | 3.90% |
United American | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 5.20% | 5.20% |
Weighted average discount rate | 4.80% | 3.80% |
Family Heritage | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Weighted average interest rate | 4.30% | 4.40% |
Weighted average discount rate | 4.90% | 3.90% |
Policy Liabilities - Weighted_2
Policy Liabilities - Weighted Average Duration of Liability For Future Policy Benefits (Details) | Mar. 31, 2023 | Mar. 31, 2022 |
American Income | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 22 years 10 months 24 days | 22 years 9 months 18 days |
At current discount rates | 23 years 3 months 29 days | 23 years 9 months 10 days |
American Income | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 12 years 1 month 24 days | 12 years 5 months 12 days |
At current discount rates | 12 years 8 months 26 days | 13 years 11 months 12 days |
DTC | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 20 years 2 months 26 days | 20 years 9 months 21 days |
At current discount rates | 21 years 9 months 25 days | 22 years 11 months 4 days |
DTC | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 11 years 4 months 24 days | 11 years 8 months 4 days |
At current discount rates | 10 years 9 months 18 days | 11 years 9 months 29 days |
Liberty National | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 14 years 11 months 8 days | 15 years 29 days |
At current discount rates | 15 years 7 months 17 days | 16 years 10 months 6 days |
Liberty National | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 9 years 3 months 21 days | 9 years 3 days |
At current discount rates | 9 years 7 months 28 days | 10 years 1 month 9 days |
Other | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 16 years 6 months 7 days | 16 years 9 months 3 days |
At current discount rates | 18 years 2 months 23 days | 19 years 7 months 2 days |
United American | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 11 years 4 months 24 days | 11 years 8 months 4 days |
At current discount rates | 10 years 9 months 18 days | 11 years 9 months 29 days |
Family Heritage | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
At original discount rates | 14 years 10 months 28 days | 15 years 3 months 10 days |
At current discount rates | 14 years 5 months 4 days | 15 years 9 months 18 days |
Policy Liabilities - Liabilit_3
Policy Liabilities - Liability For Future Policy Benefits To Consolidated Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | $ 767,759 | $ 744,134 |
Interest expense | 177,189 | 168,536 |
Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 272,306 | 260,775 |
Interest expense | 26,351 | 25,286 |
American Income | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 387,145 | 369,737 |
Interest expense | 61,431 | 57,262 |
American Income | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 28,096 | 27,937 |
Interest expense | 1,632 | 1,601 |
Direct to Consumer | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 244,707 | 242,662 |
Interest expense | 41,714 | 39,292 |
Direct to Consumer | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 3,542 | 3,536 |
Interest expense | 0 | 0 |
Liberty National | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 84,072 | 79,348 |
Interest expense | 29,769 | 29,285 |
Liberty National | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 46,745 | 47,496 |
Interest expense | 6,920 | 7,226 |
Other | Life | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 51,835 | 52,387 |
Interest expense | 44,275 | 42,697 |
United American | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 97,833 | 92,266 |
Interest expense | 1,822 | 1,914 |
Family Heritage | Health | ||
Liability for Future Policy Benefit, Activity [Line Items] | ||
Gross Premiums | 96,090 | 89,540 |
Interest expense | $ 15,977 | $ 14,545 |
Policy Liabilities - Undiscount
Policy Liabilities - Undiscounted And Discounted Expected Future Gross Premiums And Expected Future Benefits And Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | $ 21,259,261 | $ 20,470,339 | ||
At original discount rates | 11,564,309 | $ 11,442,919 | 11,102,451 | $ 10,896,222 |
At current discount rates | 12,189,326 | 11,748,528 | 13,094,222 | 14,082,538 |
Not discounted | 48,772,838 | 47,438,131 | ||
At original discount rates | 26,738,983 | 25,914,319 | ||
At current discount rates | 28,144,330 | 30,527,534 | ||
Not discounted | 75,455,738 | 72,598,809 | ||
At original discount rates | 23,849,467 | 23,564,337 | 22,696,519 | 22,374,930 |
At current discount rates | 26,987,682 | 25,749,961 | 30,317,214 | 33,664,308 |
Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 8,710,288 | 8,661,494 | ||
At original discount rates | 5,387,168 | 5,366,304 | 5,336,742 | 5,328,427 |
At current discount rates | 5,374,493 | 5,207,422 | 5,908,639 | 6,418,018 |
Not discounted | 17,390,362 | 16,782,047 | ||
At original discount rates | 10,618,931 | 10,247,273 | ||
At current discount rates | 10,652,514 | 11,415,764 | ||
Not discounted | 13,594,299 | 13,399,750 | ||
At original discount rates | 7,748,360 | 7,710,767 | 7,618,065 | 7,587,083 |
At current discount rates | 7,670,753 | 7,394,349 | 8,526,214 | 9,353,001 |
American Income | Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 7,617,532 | 7,115,131 | ||
At original discount rates | 4,325,957 | 4,246,723 | 4,043,480 | 3,906,098 |
At current discount rates | 4,467,637 | 4,273,156 | 4,646,747 | 4,925,192 |
Not discounted | 23,041,514 | 21,851,854 | ||
At original discount rates | 13,054,486 | 12,374,587 | ||
At current discount rates | 13,575,751 | 14,324,455 | ||
Not discounted | 28,821,998 | 26,930,450 | ||
At original discount rates | 8,573,734 | 8,409,761 | 7,959,694 | 7,744,201 |
At current discount rates | 9,637,463 | 9,119,104 | 10,652,256 | 11,773,519 |
American Income | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 351,655 | 323,828 | ||
At original discount rates | 197,446 | 192,631 | 183,679 | 178,801 |
At current discount rates | 200,666 | 190,296 | 208,064 | 222,553 |
Not discounted | 1,760,671 | 1,723,857 | ||
At original discount rates | 984,216 | 963,321 | ||
At current discount rates | 1,037,339 | 1,130,227 | ||
Not discounted | 626,151 | 599,187 | ||
At original discount rates | 308,170 | 303,713 | 292,356 | 285,604 |
At current discount rates | 326,533 | 312,750 | 351,631 | 380,915 |
Direct to Consumer | Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 10,832,386 | 10,630,110 | ||
At original discount rates | 5,718,900 | 5,680,864 | 5,595,772 | 5,533,741 |
At current discount rates | 6,110,550 | 5,910,224 | 6,710,655 | 7,264,905 |
Not discounted | 17,479,516 | 17,414,120 | ||
At original discount rates | 9,165,113 | 9,103,648 | ||
At current discount rates | 9,773,835 | 10,912,941 | ||
Not discounted | 25,582,750 | 24,876,834 | ||
At original discount rates | 8,563,604 | 8,477,892 | 8,238,501 | 8,157,259 |
At current discount rates | 9,624,680 | 9,225,451 | 10,750,349 | 11,859,408 |
Direct to Consumer | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 131,187 | 148,614 | ||
At original discount rates | 85,966 | 87,751 | 94,408 | 96,776 |
At current discount rates | 90,243 | 90,143 | 109,734 | 121,724 |
Not discounted | 171,266 | 204,317 | ||
At original discount rates | 112,442 | 130,162 | ||
At current discount rates | 118,105 | 151,140 | ||
Not discounted | 124,597 | 143,711 | ||
At original discount rates | 83,001 | 85,212 | 92,272 | 95,628 |
At current discount rates | 87,090 | 87,532 | 107,034 | 119,888 |
Liberty National | Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 1,889,419 | 1,855,371 | ||
At original discount rates | 1,070,775 | 1,066,123 | 1,043,765 | 1,040,242 |
At current discount rates | 1,128,083 | 1,094,407 | 1,224,988 | 1,332,469 |
Not discounted | 4,453,139 | 4,265,146 | ||
At original discount rates | 2,599,082 | 2,485,460 | ||
At current discount rates | 2,667,795 | 2,848,626 | ||
Not discounted | 8,658,766 | 8,514,395 | ||
At original discount rates | 3,284,594 | 3,272,980 | 3,208,055 | 3,206,164 |
At current discount rates | 3,559,012 | 3,429,256 | 4,066,234 | 4,542,697 |
Liberty National | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 634,061 | 641,225 | ||
At original discount rates | 404,647 | 415,442 | 401,751 | 414,409 |
At current discount rates | 421,447 | 423,490 | 463,452 | 517,368 |
Not discounted | 2,232,290 | 2,174,779 | ||
At original discount rates | 1,396,334 | 1,356,873 | ||
At current discount rates | 1,468,763 | 1,577,158 | ||
Not discounted | 1,575,745 | 1,594,836 | ||
At original discount rates | 890,019 | 904,865 | 905,739 | 921,608 |
At current discount rates | 949,996 | 941,574 | 1,082,425 | 1,201,317 |
Other | Life | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 919,924 | 869,727 | ||
At original discount rates | 448,677 | 449,209 | 419,434 | 416,141 |
At current discount rates | 483,056 | 470,741 | 511,832 | 559,972 |
Not discounted | 3,798,669 | 3,907,011 | ||
At original discount rates | 1,920,302 | 1,950,624 | ||
At current discount rates | 2,126,949 | 2,441,512 | ||
Not discounted | 12,392,224 | 12,277,130 | ||
At original discount rates | 3,427,535 | 3,403,704 | 3,290,269 | 3,267,306 |
At current discount rates | 4,166,527 | 3,976,150 | 4,848,375 | 5,488,684 |
United American | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 4,685,306 | 4,763,592 | ||
At original discount rates | 2,948,641 | 2,941,261 | 2,957,769 | 2,949,851 |
At current discount rates | 2,997,723 | 2,908,501 | 3,337,152 | 3,611,659 |
Not discounted | 6,783,819 | 6,781,444 | ||
At original discount rates | 4,279,547 | 4,226,705 | ||
At current discount rates | 4,346,007 | 4,765,664 | ||
Not discounted | 4,909,212 | 5,057,861 | ||
At original discount rates | 3,079,790 | 3,080,633 | 3,095,417 | 3,090,901 |
At current discount rates | 3,132,462 | 3,046,829 | 3,508,485 | 3,810,559 |
Family Heritage | Health | ||||
Liability for Future Policy Benefit, Activity [Line Items] | ||||
Not discounted | 2,908,079 | 2,784,235 | ||
At original discount rates | 1,750,468 | 1,729,219 | 1,699,135 | 1,688,590 |
At current discount rates | 1,664,414 | 1,594,992 | 1,790,237 | 1,944,714 |
Not discounted | 6,442,316 | 5,897,650 | ||
At original discount rates | 3,846,392 | 3,570,212 | ||
At current discount rates | 3,682,300 | 3,791,575 | ||
Not discounted | 6,358,594 | 6,004,155 | ||
At original discount rates | 3,387,380 | 3,336,344 | 3,232,281 | 3,193,342 |
At current discount rates | $ 3,174,672 | $ 3,005,664 | $ 3,476,639 | $ 3,840,322 |
Policy Liabilities - Summary Of
Policy Liabilities - Summary Of Policyholder Account Balance (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest Sensitive Life | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning Balance | $ 739,105,000 | $ 745,335,000 |
Issuances | 0 | 0 |
Premiums received | 6,030,000 | 6,297,000 |
Policy charges | (3,319,000) | (3,474,000) |
Surrenders and withdrawals | (5,384,000) | (5,280,000) |
Benefit payments | (7,844,000) | (8,999,000) |
Interest credited | 7,135,000 | 7,170,000 |
Other | 2,177,000 | 3,195,000 |
Ending Balance | $ 737,900,000 | $ 744,244,000 |
Weighted-average credit rate | 3.92% | 3.91% |
Net amount at risk | $ 1,847,128,000 | $ 1,952,631,000 |
Cash surrender value | 676,247,000 | 693,201,000 |
Deferred Annuity | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning Balance | 954,318,000 | 1,033,525,000 |
Issuances | 202,000 | 340,000 |
Premiums received | 4,776,000 | 8,216,000 |
Policy charges | 0 | 0 |
Surrenders and withdrawals | (43,533,000) | (11,873,000) |
Benefit payments | (15,784,000) | (12,073,000) |
Interest credited | 7,560,000 | 8,290,000 |
Other | 258,000 | 662,000 |
Ending Balance | $ 907,797,000 | $ 1,027,087,000 |
Weighted-average credit rate | 3.29% | 3.26% |
Cash surrender value | $ 907,797,000 | $ 1,027,064,000 |
Other Policyholders' Funds | ||
Policyholder Account Balance [Roll Forward] | ||
Beginning Balance | 123,234,000 | 99,468,000 |
Issuances | 0 | 0 |
Premiums received | 21,662,000 | 2,044,000 |
Policy charges | 0 | 0 |
Surrenders and withdrawals | (3,303,000) | (2,805,000) |
Benefit payments | 0 | 0 |
Interest credited | 1,238,000 | 1,125,000 |
Other | (145,000) | 292,000 |
Ending Balance | $ 142,686,000 | $ 100,124,000 |
Weighted-average credit rate | 3.78% | 4.58% |
Cash surrender value | $ 142,686,000 | $ 100,124,000 |
Policy Liabilities - Policyhold
Policy Liabilities - Policyholder Account Balance, Guaranteed Minimum Crediting Rate (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Interest Sensitive Life | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | $ 737,900,000 | $ 739,105,000 | $ 744,244,000 | $ 745,335,000 |
Interest Sensitive Life | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | $ 737,900,000 | 744,244,000 | ||
Interest Sensitive Life | Less than 3.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 3% | 3% | ||
Range of guaranteed minimum crediting rates | $ 0 | 0 | ||
Interest Sensitive Life | 3.00%-3.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | $ 28,956,000 | 28,684,000 | ||
Interest Sensitive Life | 3.00%-3.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Minimum | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 3% | 3% | ||
Interest Sensitive Life | 3.00%-3.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Maximum | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 3.99% | 3.99% | ||
Interest Sensitive Life | 4.00%-4.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | $ 619,411,000 | 626,179,000 | ||
Interest Sensitive Life | 4.00%-4.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Minimum | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 4% | 4% | ||
Interest Sensitive Life | 4.00%-4.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | Maximum | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 4.99% | 4.99% | ||
Interest Sensitive Life | Greater than 5.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates (percent) | 5% | 5% | ||
Range of guaranteed minimum crediting rates | $ 89,533,000 | 89,381,000 | ||
Deferred Annuity | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 907,797,000 | $ 954,318,000 | 1,027,087,000 | 1,033,525,000 |
Deferred Annuity | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 907,797,000 | 1,027,087,000 | ||
Deferred Annuity | Less than 3.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 1,971,000 | 2,254,000 | ||
Deferred Annuity | 3.00%-3.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 698,952,000 | 811,865,000 | ||
Deferred Annuity | 4.00%-4.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 206,874,000 | 212,968,000 | ||
Deferred Annuity | Greater than 5.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 0 | 0 | ||
Other | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 142,686,000 | $ 123,234,000 | 100,124,000 | $ 99,468,000 |
Other | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 142,686,000 | 100,124,000 | ||
Other | Less than 3.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 43,191,000 | 0 | ||
Other | 3.00%-3.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 4,097,000 | 2,911,000 | ||
Other | 4.00%-4.99% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | 57,596,000 | 58,990,000 | ||
Other | Greater than 5.00% | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Policyholder Account Balance, Guaranteed Minimum Crediting Rate [Line Items] | ||||
Range of guaranteed minimum crediting rates | $ 37,802,000 | $ 38,223,000 |
Deferred Acquisition Costs - An
Deferred Acquisition Costs - Analysis of Deferred Acquisition Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | $ 5,535,697 | |
Amortization expense | (92,322) | $ (84,496) |
Ending Balance | 5,654,438 | 5,191,683 |
Life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 4,844,291 | 4,412,015 |
Capitalizations | 190,347 | 186,596 |
Amortization expense | (79,589) | (71,929) |
Foreign exchange adjustment | (2,787) | 1,738 |
Experience adjustment | 0 | 0 |
Ending Balance | 4,952,262 | 4,528,420 |
Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 686,763 | 649,082 |
Capitalizations | 23,629 | 20,219 |
Amortization expense | (12,308) | (12,114) |
Foreign exchange adjustment | (126) | 88 |
Experience adjustment | 0 | 0 |
Ending Balance | 697,958 | 657,275 |
United American | Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 77,394 | 81,140 |
Capitalizations | 507 | 580 |
Amortization expense | (1,513) | (1,516) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 76,388 | 80,204 |
American Income | Life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 2,258,291 | 1,960,254 |
Capitalizations | 115,395 | 114,428 |
Amortization expense | (38,299) | (33,513) |
Foreign exchange adjustment | (2,787) | 1,738 |
Experience adjustment | 0 | 0 |
Ending Balance | 2,332,600 | 2,042,907 |
American Income | Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 57,811 | 49,406 |
Capitalizations | 3,143 | 3,155 |
Amortization expense | (938) | (829) |
Foreign exchange adjustment | (126) | 88 |
Experience adjustment | 0 | 0 |
Ending Balance | 59,890 | 51,820 |
DTC | Life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 1,676,931 | 1,583,695 |
Capitalizations | 47,410 | 48,216 |
Amortization expense | (24,753) | (23,172) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 1,699,588 | 1,608,739 |
DTC | Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 1,854 | 2,032 |
Capitalizations | 0 | 0 |
Amortization expense | (47) | (44) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 1,807 | 1,988 |
Family Heritage | Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 416,608 | 388,967 |
Capitalizations | 15,097 | 12,363 |
Amortization expense | (6,560) | (6,405) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 425,145 | 394,925 |
Liberty National | Life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 610,723 | 566,419 |
Capitalizations | 24,221 | 20,465 |
Amortization expense | (12,412) | (11,046) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 622,532 | 575,838 |
Liberty National | Health | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 133,096 | 127,537 |
Capitalizations | 4,882 | 4,121 |
Amortization expense | (3,250) | (3,320) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | 134,728 | 128,338 |
Other | Life | ||
Movement Analysis of Deferred Policy Acquisition Costs | ||
Beginning Balance | 298,346 | 301,647 |
Capitalizations | 3,321 | 3,487 |
Amortization expense | (4,125) | (4,198) |
Foreign exchange adjustment | 0 | 0 |
Experience adjustment | 0 | 0 |
Ending Balance | $ 297,542 | $ 300,936 |
Deferred Acquisition Costs - De
Deferred Acquisition Costs - Deferred Policy Acquisition Costs to Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 |
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | $ 5,654,438 | $ 5,535,697 | $ 5,191,683 | $ 4,587,547 | $ 4,595,444 | |
Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 4,952,262 | 4,844,291 | 4,528,420 | $ 4,412,015 | 3,983,021 | 3,982,159 |
Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 697,958 | 686,763 | 657,275 | 649,082 | 596,217 | 610,069 |
Annuity | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 4,218 | 5,988 | 8,309 | 3,216 | ||
United American | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 76,388 | 77,394 | 80,204 | 81,140 | 65,020 | 74,353 |
Family Heritage | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 425,145 | 416,608 | 394,925 | 388,967 | 364,751 | 364,751 |
American Income | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 2,332,600 | 2,258,291 | 2,042,907 | 1,960,254 | 1,647,761 | 1,647,761 |
American Income | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 59,890 | 57,811 | 51,820 | 49,406 | 39,477 | 39,477 |
DTC | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 1,699,588 | 1,676,931 | 1,608,739 | 1,583,695 | 1,498,970 | 1,498,435 |
DTC | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 1,807 | 1,854 | 1,988 | 2,032 | 2,215 | 6,600 |
Liberty National | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 622,532 | 610,723 | 575,838 | 566,419 | 531,504 | 531,504 |
Liberty National | Health | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | 134,728 | 133,096 | 128,338 | 127,537 | 124,754 | 124,888 |
Other | Life | ||||||
Deferred Policy Acquisition Cost [Line Items] | ||||||
Deferred acquisition costs | $ 297,542 | $ 298,346 | $ 300,936 | $ 301,647 | $ 304,786 | $ 304,459 |
Liability for Unpaid Claims - S
Liability for Unpaid Claims - Summary of Liability for Unpaid Health Claims (Details) - Health claims - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Activity in the Liability for Unpaid Health Claims | ||
Beginning balance | $ 182,202 | $ 171,109 |
Incurred related to: | ||
Current year | 173,865 | 676,190 |
Prior years | (1,923) | (15,631) |
Total incurred | 171,942 | 660,559 |
Paid related to: | ||
Current year | 72,870 | 517,856 |
Prior year | 99,876 | 131,610 |
Total paid | 172,746 | 649,466 |
Ending balance | $ 181,398 | $ 182,202 |
Liability for Unpaid Claims - R
Liability for Unpaid Claims - Reconciliation of Net Incurred and Paid Claims Development to Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2021 | Dec. 31, 2020 |
Policy claims and other benefits payable: | ||||
Policy claims and other benefits payable | $ 489,296 | $ 507,219 | $ 473,524 | $ 399,507 |
Life insurance | ||||
Policy claims and other benefits payable: | ||||
Policy claims and other benefits payable | 307,898 | 325,017 | ||
Health insurance | ||||
Policy claims and other benefits payable: | ||||
Policy claims and other benefits payable | $ 181,398 | $ 182,202 |
Postretirement Benefits - Pensi
Postretirement Benefits - Pension Assets by Components at Fair Value (Details) - Pension Plan - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 523,099 | $ 499,775 | |
Percentage of plan assets | 100% | 100% | |
Investment funds, percentage ownership by pension plan | 1% | 1% | |
Expected life of investment | 2 years | 3 years | |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 509,332 | $ 485,487 | |
Percentage of plan assets | 97% | 97% | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 311,873 | $ 269,311 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 197,459 | 216,176 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 13,767 | $ 14,288 | |
Percentage of plan assets | 3% | 3% | |
Total corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 77,317 | $ 128,647 | |
Percentage of total plan assets, within plan asset category | 15% | 26% | |
Total corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Total corporate bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 77,317 | 128,647 | |
Total corporate bonds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Financial | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 22,482 | $ 35,649 | |
Percentage of total plan assets, within plan asset category | 4% | 7% | |
Financial | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Financial | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 22,482 | 35,649 | |
Financial | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Utilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 20,838 | $ 23,436 | |
Percentage of total plan assets, within plan asset category | 4% | 5% | |
Utilities | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Utilities | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 20,838 | 23,436 | |
Utilities | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Energy | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 7,564 | $ 12,776 | |
Percentage of total plan assets, within plan asset category | 2% | 3% | |
Energy | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Energy | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 7,564 | 12,776 | |
Energy | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Other corporates | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 26,433 | $ 56,786 | |
Percentage of total plan assets, within plan asset category | 5% | 11% | |
Other corporates | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Other corporates | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 26,433 | 56,786 | |
Other corporates | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Exchange traded funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 276,478 | $ 258,297 | |
Percentage of total plan assets, within plan asset category | 53% | 52% | |
Exchange traded funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 276,478 | $ 258,297 | |
Exchange traded funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Exchange traded funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
U.S. Government and Agency | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 76,643 | $ 44,213 | |
Percentage of total plan assets, within plan asset category | 15% | 9% | |
U.S. Government and Agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
U.S. Government and Agency | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 76,643 | 44,213 | |
U.S. Government and Agency | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Other bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 202 | $ 200 | |
Percentage of total plan assets, within plan asset category | 0% | 0% | |
Other bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Other bonds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 202 | 200 | |
Other bonds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Guaranteed annuity contract | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 43,297 | $ 43,116 | |
Percentage of total plan assets, within plan asset category | 8% | 8% | |
Guaranteed annuity contract | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 | |
Guaranteed annuity contract | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 43,297 | 43,116 | |
Guaranteed annuity contract | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 23,016 | $ 4,467 | |
Percentage of total plan assets, within plan asset category | 4% | 1% | |
Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 23,016 | $ 4,467 | |
Short-term investments | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Short-term investments | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 12,379 | $ 6,547 | |
Percentage of total plan assets, within plan asset category | 2% | 1% | |
Other | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 12,379 | $ 6,547 | |
Other | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | 0 | 0 | |
Other | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets, within plan asset category | $ 0 | $ 0 |
Postretirement Benefits - Activ
Postretirement Benefits - Activity for the SERP (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |||
Premiums paid for insurance coverage | $ 443 | $ 443 | |
Total investments: | |||
Company owned life insurance | 54,788 | $ 54,681 | |
Exchange traded funds | 74,632 | 71,258 | |
Total investments of SERP | $ 129,420 | $ 125,939 |
Postretirement Benefits - Pen_2
Postretirement Benefits - Pension Liability (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit obligation | $ 588,269 | $ 562,567 |
Qualified Plan | Pension plans | Funded defined benefit pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit obligation | 517,770 | 492,103 |
Nonqualified Plan | SERP | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension benefit obligation | $ 70,499 | $ 70,464 |
Postretirement Benefits - Compo
Postretirement Benefits - Components of Net Periodic Pension Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 5,392 | $ 8,655 |
Interest cost | 7,834 | 6,123 |
Expected return on assets | (9,656) | (8,885) |
Prior service cost | 269 | 158 |
Actuarial (gain) loss | (52) | 3,209 |
Net periodic benefit cost | $ 3,787 | $ 9,260 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Basic weighted average shares outstanding (in shares) | 96,388,211 | 99,273,616 |
Weighted average dilutive options outstanding (in shares) | 1,522,889 | 976,758 |
Diluted weighted average shares outstanding (in shares) | 97,911,100 | 100,250,374 |
Antidilutive shares (in shares) | 209,870 | 563,991 |
Debt - Selected Information abo
Debt - Selected Information about Debt Issues (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, par value, gross | $ 1,815,612,000 | |
Current maturity of long-term debt, par value | 165,612,000 | |
Total long-term debt | 1,650,000,000 | |
Total short-term debt, par value | 515,612,000 | |
Total debt, par value | 2,165,612,000 | |
Unamortized discount & issuance costs, noncurrent | (21,684,000) | |
Unamortized discount & issuance costs, current maturities | (38,000) | |
Unamortized discount & issuance costs, long-term debt | (21,646,000) | |
Unamortized discount & issuance costs, current | (1,365,000) | |
Total debt, unamortized discount & issuance costs, | (23,011,000) | |
Long-term debt, net, book value | 1,793,928,000 | $ 1,793,452,000 |
Current maturity of long-term debt, book value | 165,574,000 | 165,500,000 |
Long-term debt | 1,628,354,000 | 1,627,952,000 |
Total short-term debt, book value | 514,247,000 | 449,103,000 |
Total debt, book value | 2,142,601,000 | 2,077,055,000 |
Long-term debt, gross, fair value | 1,648,918,000 | |
Current maturity of term loan, fair value | 164,746,000 | |
Long-term debt, net, fair value | 1,484,172,000 | |
Total short-term debt, fair value | 513,419,000 | |
Total debt, fair value | 1,997,591,000 | |
FHLB borrowings | ||
Debt Instrument [Line Items] | ||
Total short-term debt, par value | 45,000,000 | 0 |
Unamortized discount & issuance costs, current | 0 | |
Total short-term debt, book value | 45,000,000 | 0 |
Total short-term debt, fair value | 45,000,000 | |
Commercial paper | ||
Debt Instrument [Line Items] | ||
Total short-term debt, par value | 305,000,000 | |
Unamortized discount & issuance costs, current | (1,327,000) | |
Total short-term debt, book value | 303,673,000 | 283,603,000 |
Total short-term debt, fair value | $ 303,673,000 | |
Senior Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 7.875% | |
Long-term debt, par value, gross | $ 165,612,000 | |
Unamortized discount & issuance costs, noncurrent | (38,000) | |
Debt | 165,574,000 | 165,500,000 |
Long-term debt, gross, fair value | $ 164,746,000 | |
Senior Notes Due 2028 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 4.55% | |
Long-term debt, par value, gross | $ 550,000,000 | |
Unamortized discount & issuance costs, noncurrent | (4,229,000) | |
Debt | 545,771,000 | 545,601,000 |
Long-term debt, gross, fair value | $ 546,348,000 | |
Senior Notes Due 2030 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 2.15% | |
Long-term debt, par value, gross | $ 400,000,000 | |
Unamortized discount & issuance costs, noncurrent | (3,668,000) | |
Debt | 396,332,000 | 396,219,000 |
Long-term debt, gross, fair value | $ 323,984,000 | |
Senior Notes Due June 15 2032 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 4.80% | |
Long-term debt, par value, gross | $ 250,000,000 | |
Unamortized discount & issuance costs, noncurrent | (4,412,000) | |
Debt | 245,588,000 | 245,493,000 |
Long-term debt, gross, fair value | 241,275,000 | |
Senior Notes Due June 15 2032 | Consolidation Eliminations | Subsidiaries | ||
Debt Instrument [Line Items] | ||
Long-term debt, net, book value | $ 150,000,000 | |
Junior Subordinated Debentures Due 2057 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 5.275% | |
Long-term debt, par value, gross | $ 125,000,000 | |
Unamortized discount & issuance costs, noncurrent | (1,585,000) | |
Debt | 123,415,000 | 123,410,000 |
Long-term debt, gross, fair value | $ 124,265,000 | |
Junior Subordinated Debentures Due 2061 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 4.25% | |
Long-term debt, par value, gross | $ 325,000,000 | |
Unamortized discount & issuance costs, noncurrent | (7,752,000) | |
Debt | 317,248,000 | $ 317,229,000 |
Long-term debt, gross, fair value | $ 248,300,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
FHLB stock | $ 16,000,000 | $ 14,300,000 |
Long-term debt, net, book value | 1,793,928,000 | 1,793,452,000 |
Total short-term debt, par value | 515,612,000 | |
Federal Home Loan Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Total short-term debt, par value | 45,000,000 | 0 |
Estimate of Fair Value Measurement | Asset Pledged as Collateral | ||
Debt Instrument [Line Items] | ||
Fair value of pledged assets | $ 850,000,000 | |
Junior Subordinated Debentures Due 2056 | ||
Debt Instrument [Line Items] | ||
Coupon Rate | 4.25% | |
Senior notes | ||
Debt Instrument [Line Items] | ||
Optional redemption, period from issuance date | 5 years | |
Federal Home Loan Bank Borrowings | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 633,000,000 | |
Long-term debt, net, book value | $ 43,000,000 | $ 23,000,000 |
Business Segments - Segment Pre
Business Segments - Segment Premium Income by Distribution Channel and Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Segment Reporting [Abstract] | ||
Number of segments | segment | 4 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,095,090 | $ 1,064,812 |
% of Total | 100% | 100% |
Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 772,597 | $ 749,128 |
% of Total | 100% | 100% |
Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 322,493 | $ 315,684 |
% of Total | 100% | 100% |
Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
American Income | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 417,106 | $ 398,872 |
% of Total | 38% | 37% |
American Income | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 387,512 | $ 370,106 |
% of Total | 50% | 49% |
American Income | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 29,594 | $ 28,766 |
% of Total | 9% | 9% |
American Income | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Direct to Consumer | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 264,915 | $ 263,660 |
% of Total | 24% | 25% |
Direct to Consumer | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 247,667 | $ 245,732 |
% of Total | 32% | 33% |
Direct to Consumer | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 17,248 | $ 17,928 |
% of Total | 5% | 6% |
Direct to Consumer | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Liberty National | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 132,175 | $ 128,320 |
% of Total | 12% | 12% |
Liberty National | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 85,203 | $ 80,560 |
% of Total | 11% | 11% |
Liberty National | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 46,972 | $ 47,760 |
% of Total | 15% | 15% |
Liberty National | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
United American | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 134,489 | $ 133,764 |
% of Total | 12% | 13% |
United American | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,882 | $ 2,074 |
% of Total | 0% | 0% |
United American | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 132,607 | $ 131,690 |
% of Total | 41% | 42% |
United American | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Family Heritage | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 97,552 | $ 90,899 |
% of Total | 9% | 8% |
Family Heritage | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 1,480 | $ 1,359 |
% of Total | 0% | 0% |
Family Heritage | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 96,072 | $ 89,540 |
% of Total | 30% | 28% |
Family Heritage | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 48,853 | $ 49,297 |
% of Total | 5% | 5% |
Other | Life | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 48,853 | $ 49,297 |
% of Total | 7% | 7% |
Other | Health | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Other | Annuity | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
% of Total | 0% | 0% |
Business Segments - Reconciliat
Business Segments - Reconciliation of Segment Operating Information to Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue: | ||
Premium | $ 1,095,090 | $ 1,064,812 |
Net investment income | 257,105 | 244,894 |
Other income | 50 | 164 |
Total revenue | 1,352,245 | 1,309,870 |
Expenses: | ||
Policy obligations | 707,927 | 694,149 |
Required interest on reserves | 0 | 0 |
Amortization of acquisition costs | 92,322 | 84,496 |
Commissions, premium taxes, and non-deferred acquisition costs | 137,797 | 125,509 |
Insurance administrative expense | 73,907 | 72,677 |
Parent expense | 2,585 | 2,640 |
Stock-based compensation expense | 7,679 | 9,035 |
Interest expense | 24,867 | 19,944 |
Total benefits and expenses | 1,047,084 | 1,008,450 |
Subtotal | 305,161 | 301,420 |
Non-operating items | 0 | 112 |
Measure of segment profitability (pretax) | 305,161 | 301,532 |
Realized gain (loss)—investments | (30,927) | (7,244) |
Non-operating expenses | (112) | |
Income before income taxes | 274,234 | 294,176 |
Life | ||
Revenue: | ||
Premium | 772,597 | 749,128 |
Expenses: | ||
Amortization of acquisition costs | 79,589 | 71,929 |
Health | ||
Revenue: | ||
Premium | 322,493 | 315,684 |
Expenses: | ||
Amortization of acquisition costs | 12,308 | 12,114 |
Annuity | ||
Revenue: | ||
Premium | 0 | 0 |
Operating Segments | ||
Expenses: | ||
Non-operating items | 0 | 0 |
Operating Segments | Life | ||
Revenue: | ||
Premium | 772,597 | 749,128 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 772,597 | 749,128 |
Expenses: | ||
Policy obligations | 507,977 | 495,429 |
Required interest on reserves | (189,821) | (181,372) |
Amortization of acquisition costs | 79,589 | 71,929 |
Commissions, premium taxes, and non-deferred acquisition costs | 83,578 | 73,548 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 481,323 | 459,534 |
Subtotal | 291,274 | 289,594 |
Measure of segment profitability (pretax) | 291,274 | 289,594 |
Operating Segments | Health | ||
Revenue: | ||
Premium | 322,493 | 315,684 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 322,493 | 315,684 |
Expenses: | ||
Policy obligations | 190,962 | 189,018 |
Required interest on reserves | (26,323) | (25,270) |
Amortization of acquisition costs | 12,308 | 12,114 |
Commissions, premium taxes, and non-deferred acquisition costs | 54,214 | 51,952 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 231,161 | 227,814 |
Subtotal | 91,332 | 87,870 |
Measure of segment profitability (pretax) | 91,332 | 87,870 |
Operating Segments | Annuity | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 0 | 0 |
Expenses: | ||
Policy obligations | 7,541 | 8,642 |
Required interest on reserves | (10,259) | (11,367) |
Amortization of acquisition costs | 425 | 453 |
Commissions, premium taxes, and non-deferred acquisition costs | 5 | 9 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | (2,288) | (2,263) |
Subtotal | 2,288 | 2,263 |
Measure of segment profitability (pretax) | 2,288 | 2,263 |
Operating Segments | Investment | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 257,105 | 244,894 |
Other income | 0 | 0 |
Total revenue | 257,105 | 244,894 |
Expenses: | ||
Policy obligations | 1,447 | 1,060 |
Required interest on reserves | 226,403 | 218,009 |
Amortization of acquisition costs | 0 | 0 |
Commissions, premium taxes, and non-deferred acquisition costs | 0 | 0 |
Insurance administrative expense | 0 | 0 |
Parent expense | 0 | 0 |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 227,850 | 219,069 |
Subtotal | 29,255 | 25,825 |
Measure of segment profitability (pretax) | 29,255 | 25,825 |
Corporate & Other | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 0 | 0 |
Other income | 50 | 164 |
Total revenue | 50 | 164 |
Expenses: | ||
Policy obligations | 0 | 0 |
Required interest on reserves | 0 | 0 |
Amortization of acquisition costs | 0 | 0 |
Commissions, premium taxes, and non-deferred acquisition costs | 0 | 0 |
Insurance administrative expense | 73,907 | 72,565 |
Parent expense | 2,585 | 2,640 |
Stock-based compensation expense | 7,679 | 9,035 |
Interest expense | 24,867 | 19,944 |
Total benefits and expenses | 109,038 | 104,184 |
Subtotal | (108,988) | (104,020) |
Non-operating items | 0 | 0 |
Measure of segment profitability (pretax) | (108,988) | (104,020) |
Adjustments | ||
Revenue: | ||
Premium | 0 | 0 |
Net investment income | 0 | 0 |
Other income | 0 | 0 |
Total revenue | 0 | 0 |
Expenses: | ||
Policy obligations | 0 | 0 |
Required interest on reserves | 0 | 0 |
Amortization of acquisition costs | 0 | 0 |
Commissions, premium taxes, and non-deferred acquisition costs | 0 | 0 |
Insurance administrative expense | 112 | |
Parent expense | 0 | |
Stock-based compensation expense | 0 | 0 |
Interest expense | 0 | 0 |
Total benefits and expenses | 0 | 112 |
Subtotal | 0 | (112) |
Non-operating items | 112 | |
Measure of segment profitability (pretax) | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | May 09, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
First Republic Bank | |||
Subsequent Event [Line Items] | |||
Deposits | $ 38,600 | ||
Senior Notes Due 2023 | |||
Subsequent Event [Line Items] | |||
Debt | $ 165,574 | $ 165,500 | |
Interest rate | 7.875% | ||
Subsequent Event | First Republic Bank | |||
Subsequent Event [Line Items] | |||
Deposits | $ 400 | ||
Subsequent Event | Senior Notes Due 2023 | |||
Subsequent Event [Line Items] | |||
Debt | $ 170,000 | ||
Long-term debt, term | 18 months | ||
Interest rate | 7.875% |