v3.26.1
Policyholder Account Balances
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Policyholder Account Balances

11) Policyholder Account Balances

 

The Company establishes liabilities for policyholder account balances, which are generally equal to the account value, and which include interest credited.

 

The following table provides a reconciliation of policyholder account balances and the related receivable from reinsurers to the condensed consolidated balance sheets.

  

   March 31, 2026   December 31, 2025 
Policyholder account balances - fixed annuities  $103,029,371   $104,233,454 
Deferred profit liability - fixed annuities   523,926    546,802 
Policyholder account balances - universal life   35,289,278    35,825,494 
           
Gross policyholder account balances  $138,842,575   $140,605,750 
           
Receivable from reinsurers          
           
Policyholder account balances - fixed annuities   3,092,871    3,275,247 
           
Total receivable from reinsurers   3,092,871    3,275,247 
           
Net policyholder account balances  $135,749,704   $137,330,503 

 

The following table summarizes the balances and changes in policyholder account balances for the lines of business indicated:

  

                 
  

Three Months Ended

March 31, 2026

  

Three Months Ended

March 31, 2025

 
   Universal Life   Fixed Annuities   Universal Life   Fixed Annuities 
Balance, beginning of year  $35,825,494   $104,233,454   $37,091,230   $105,088,621 
Deposits   337,324    2,202,600    353,341    2,711,947 
Interest credited   437,262    764,992    423,220    767,523 
Policy charges (1)   (590,416)   (2,097)   (532,389)   (1,690)
Surrenders, withdrawals and benefit payments   (720,386)   (4,169,578)   (384,291)   (3,713,105)
Balance, end of period   35,289,278    103,029,371    36,951,111    104,853,296 
Less: Receivable from reinsurers   -    3,092,871    -    3,438,939 
Policyholder account balances, net of reinsurance  $35,289,278   $99,936,500   $36,951,111   $101,414,357 
                     
Weighted-average crediting rate   4.16%   3.04%   4.16%   3.03%
Net amount at risk (2)   130,213,794    N/A     137,245,425    N/A  
Cash surrender value   35,289,277    102,546,622    36,951,111    104,493,368 

 

 

(1)Contracts included in the policyholder account balances are generally charged a premium and/or monthly assessments on the basis of the account balance. Included in premiums and other considerations on the consolidated statements of earnings.
(2)For those guarantees of benefits that are payable in the event of death, the net amount at risk is generally defined as the current guaranteed minimum death benefit in excess of the current account balance at the balance sheet date

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)

 

11) Policyholder Account Balances (Continued)

 

The following table summarizes the balances of and changes in deferred profit liability for fixed annuities:

  

         
   Three Months Ended March 31, 
   2026   2025 
Balance, beginning of year  $546,802   $627,465 
Effect of actual variances from expected experience   -    - 
Adjusted balance, beginning of period   546,802    627,465 
Profits deferred   -    - 
Interest accrual   -    - 
Amortization   (22,876)   (19,409)
Other adjustments   -    - 
Balance, end of period   523,926    608,056 
Less: Receivable from reinsurers   -    - 
Deferred profit liability, net of reinsurance  $523,926   $608,056 

 

The balance of account values by range of guaranteed minimum crediting rates and the related range of difference, in basis points, between rates being credited to policyholders and the respective guaranteed minimums for the lines of business indicated are as follows:

 

                     
   March 31, 2026 
Range of Guaranteed Minimum Crediting Rate  At guaranteed minimum   1-50 bps above guaranteed minimum   51-150 bps above guaranteed minimum   Greater than 150 bps above guaranteed minimum   Total 
Universal Life                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   -    -    -    -    - 
2.00% - 2.99%   -    -    -    -    - 
3:00%-4.00%   24,884,774    -    1,541,532    -    26,426,306 
Greater than 4.00%   4,284,184    4,578,788    -    -    8,862,972 
Total  $29,168,958   $4,578,788   $1,541,532   $-   $35,289,278 
                          
Fixed Annuities                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   10,729,410    9,927,428    -    -    20,656,838 
2.00% - 2.99%   5,689,266    -    330,239    4,848,175    10,867,680 
3:00%-4.00%   47,533,902    10,286,807    55,261    432,287    58,308,257 
Greater than 4.00%   12,847,413    -    349,183    -    13,196,596 
Total  $76,799,991   $20,214,235   $734,683   $5,280,462   $103,029,371 

 

                     
   March 31, 2025 
Range of Guaranteed Minimum Crediting Rate  At guaranteed minimum   1-50 bps above guaranteed minimum   51-150 bps above guaranteed minimum   Greater than 150 bps above guaranteed minimum   Total 
Universal Life                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   -    -    -    -    - 
2.00% - 2.99%   -    -    -    -    - 
3:00%-4.00%   25,948,248    -    1,524,901    -    27,473,149 
Greater than 4.00%   4,725,717    4,752,245    -    -    9,477,962 
Total  $30,673,965   $4,752,245   $1,524,901   $-   $36,951,111 
                          
Fixed Annuities                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   11,826,448    11,168,785    -    -    22,995,233 
2.00% - 2.99%   4,854,112    -    327,727    5,054,713    10,236,552 
3:00%-4.00%   47,384,970    10,552,439    36,757    450,086    58,424,252 
Greater than 4.00%   12,848,005    -    349,254    -    13,197,259 
Total  $76,913,535   $21,721,224   $713,738   $5,504,799   $104,853,296 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

March 31, 2026 (Unaudited)