v3.26.1
Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customers

(15) Revenue from Contracts with Customers

Our revenues from contracts with customers primarily include:

•
Commissions and fees earned for the marketing and distribution of investment and savings products managed and/or underwritten by mutual fund companies, annuity providers, and other asset managers. For purposes of revenue recognition,
mutual fund companies, annuity providers, and other asset managers are considered the customers in marketing and distribution arrangements;
•
Fees earned for investment advisory and administrative services within our managed accounts investments program and shareholder service fees earned in Canada for mutual funds for which we serve as principal distributor;
•
Account-based fees for transfer agent recordkeeping functions and non-bank custodial services;
•
Fees associated with mortgage distribution and the distribution of other third-party financial products; and
•
Other revenue from the sale of miscellaneous products and services including monthly subscription fees from the independent sales representatives for access to POL, our primary independent sales force support tool.

Premiums from insurance contracts we underwrite, fees received from segregated funds insurance contracts we underwrite, and income earned on our invested assets are excluded from the definition of revenues from contracts with customers in accordance with U.S. GAAP.

Further discussion on the Company’s revenues from contracts with customers and revenue recognition policies are included in Note 20 (Revenue from Contracts with Customers) to our consolidated financial statements in our 2025 Annual Report.

The disaggregation of our revenues from contracts with customers were as follows:

 

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

 

 

(In thousands)

Term Life Insurance segment revenues:

 

 

 

 

 

 

 

  Other, net

 

$

11,275

 

 

$

12,745

 

 

    Total segment revenues from contracts with customers

 

 

11,275

 

 

 

12,745

 

 

  Revenues from sources other than contracts with customers

 

 

453,359

 

 

 

445,096

 

 

      Total Term Life Insurance segment revenues

 

$

464,634

 

 

$

457,841

 

 

 

 

 

 

 

 

 

 

Investment and Savings Products segment revenues:

 

 

 

 

 

 

 

  Commissions and fees

 

 

 

 

 

 

 

    Sales-based revenues

 

$

136,355

 

 

$

111,270

 

 

    Asset-based revenues

 

 

174,351

 

 

 

139,130

 

 

    Account-based revenues

 

 

23,619

 

 

 

24,195

 

 

  Other, net

 

 

3,305

 

 

 

3,333

 

 

      Total segment revenues from contracts with customers

 

 

337,630

 

 

 

277,928

 

 

  Revenues from sources other than contracts
    with customers (segregated funds we underwrite)

 

 

13,015

 

 

 

12,884

 

 

        Total Investment and Savings Products segment revenues

 

$

350,645

 

 

$

290,812

 

 

 

 

 

 

 

 

 

 

Corporate and Other Distributed Products segment revenues:

 

 

 

 

 

 

 

  Commissions and fees

 

$

9,401

 

 

$

9,478

 

 

  Other, net

 

 

1,306

 

 

 

1,056

 

 

    Total segment revenues from contracts with customers

 

 

10,707

 

 

 

10,534

 

 

  Revenues from sources other than contracts with customers

 

 

46,707

 

 

 

45,656

 

 

      Total Corporate and Other Distributed Products segment revenues

 

$

57,414

 

 

$

56,190

 

 

Renewal Commissions Receivable. For revenue associated with ongoing renewal commissions in the Corporate and Other Distributed Products segment, we record a renewal commission receivable contract asset for the amount of ongoing renewal commissions we anticipate collecting in reporting periods subsequent to the satisfaction of the performance obligation, less amounts that are constrained, in Other assets in the accompanying unaudited condensed consolidated balance sheets. The renewal commissions receivable is reduced for commissions that are billed and become due receivables from product providers during the reporting period.

Activity in the renewal commissions receivable account was as follows:

 

 

Three months ended March 31,

 

 

 

 

2026

 

 

2025

 

 

 

 

(In thousands)

Balance, beginning of period

 

$

54,321

 

 

$

58,079

 

 

Commissions revenue

 

 

4,926

 

 

 

5,284

 

 

Less: collections

 

 

(5,969

)

 

 

(6,032

)

 

Balance, at the end of period

 

$

53,278

 

 

$

57,331

 

 

 

 

Incremental costs to obtain or fulfill contracts, most notably sales commissions to the independent sales representatives, are not incurred prior to the recognition of the related revenue. Therefore, we have no assets recognized for incremental costs to obtain or fulfill contracts.