Policyholders' Liabilities

6 Months Ended

Jun. 30, 2026

POLICYHOLDERS’ LIABILITIES

LIABILITY FOR FUTURE POLICY BENEFITS

The following tables summarize balances of and changes in the liability for future policy benefits for our reporting cohorts: Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy,

and Permanent Limited Pay, which summarizes insurance policies with premiums payable for a limited time after which the policy is fully paid up. Both reporting cohorts include whole life and endowment policies.


June 30, 2026 (In thousands)	International Insurance				Domestic Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	241,394	20,592	261,986		189,845	13,052	202,897
Beginning balance at original discount rate	$	242,912	20,405	263,317		192,071	13,446	205,517

Effect of actual variances from expected experience	3,559		317	3,876		(26,934)	(1,071)	(28,005)
Adjusted beginning of year balance	246,471		20,722	267,193		165,137	12,375	177,512
Issuances	13,488		1,539	15,027		56,315	968	57,283
Interest accrual	4,948		400	5,348		4,260	244	4,504
Net premiums collected	(21,553)		(3,193)	(24,746)		(14,010)	(231)	(14,241)
Derecognition and other	421		130	551		(3,875)	(6)	(3,881)
Ending balance at original discount rate	243,775		19,598	263,373		207,827	13,350	221,177
Effect of changes in discount rates	(4,020)		—	(4,020)		(3,980)	(458)	(4,438)
Balance, end of period	$	239,755	19,598	259,353		203,847	12,892	216,739

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	910,575	166,327	1,076,902		324,382	139,220	463,602
Beginning balance at original discount rate	$	932,243	174,075	1,106,318		339,821	152,775	492,596

Effect of actual variances from expected experience	6,167		1,616	7,783		(27,148)	(916)	(28,064)
Adjusted beginning of year balance	938,410		175,691	1,114,101		312,673	151,859	464,532
Issuances	13,790		1,616	15,406		56,304	972	57,276
Interest accrual	20,264		3,459	23,723		7,751	3,576	11,327
Benefit payments	(46,664)		(8,368)	(55,032)		(11,884)	(3,626)	(15,510)
Derecognition and other	112		177	289		(3,892)	46	(3,846)
Ending balance at original discount rate	925,912		172,575	1,098,487		360,952	152,827	513,779
Effect of changes in discount rates	(31,518)		(9,574)	(41,092)		(16,671)	(13,867)	(30,538)
Balance, end of period	$	894,394	163,001	1,057,395		344,281	138,960	483,241

Net liability for future policy benefits	$	654,639	143,403	798,042		140,434	126,068	266,502
Plus: Flooring impact	2		—	2		—	—	—
Less: Reinsurance recoverable	—		—	—		9,408	—	9,408
Net liability for future policy benefits, after reinsurance recoverable	$	654,641	143,403	798,044		131,026	126,068	257,094


June 30, 2025 (In thousands)	International Insurance				Domestic Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	237,944	15,592	253,536		156,432	13,248	169,680
Beginning balance at original discount rate	$	247,279	15,807	263,086		164,666	14,105	178,771

Effect of actual variances from expected experience	1,478		978	2,456		(20,452)	(1,259)	(21,711)
Adjusted beginning of year balance	248,757		16,785	265,542		144,214	12,846	157,060
Issuances	14,578		1,840	16,418		48,645	1,140	49,785
Interest accrual	4,929		316	5,245		3,769	249	4,018
Net premiums collected	(21,513)		(2,731)	(24,244)		(11,529)	(60)	(11,589)
Derecognition and other	(44)		152	108		(4,304)	3	(4,301)
Ending balance at original discount rate	246,707		16,362	263,069		180,795	14,178	194,973
Effect of changes in discount rates	(5,763)		(20)	(5,783)		(5,959)	(657)	(6,616)
Balance, end of period	$	240,944	16,342	257,286		174,836	13,521	188,357

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	914,153	159,244	1,073,397		281,212	139,461	420,673
Beginning balance at original discount rate	$	965,548	170,911	1,136,459		304,500	153,902	458,402

Effect of actual variances from expected experience	2,406		2,143	4,549		(20,358)	(450)	(20,808)
Adjusted beginning of year balance	967,954		173,054	1,141,008		284,142	153,452	437,594
Issuances	14,911		1,994	16,905		48,631	1,135	49,766
Interest accrual	20,972		3,387	24,359		7,100	3,593	10,693
Benefit payments	(53,633)		(9,693)	(63,326)		(9,753)	(3,706)	(13,459)
Derecognition and other	(425)		(3)	(428)		(4,299)	4	(4,295)
Ending balance at original discount rate	949,779		168,739	1,118,518		325,821	154,478	480,299
Effect of changes in discount rates	(41,513)		(9,928)	(51,441)		(22,525)	(15,838)	(38,363)
Balance, end of period	$	908,266	158,811	1,067,077		303,296	138,640	441,936

Net liability for future policy benefits	$	667,322	142,469	809,791		128,460	125,119	253,579

Less: Reinsurance recoverable	—		—	—		3,986	—	3,986
Net liability for future policy benefits, after reinsurance recoverable	$	667,322	142,469	809,791		124,474	125,119	249,593

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets for the periods indicated below.


	June 30, 2026				June 30, 2025
(In thousands)	International Insurance		Domestic Insurance	Consolidated	International Insurance	Domestic Insurance	Consolidated
Life Insurance:
Permanent	$	654,641	131,026	785,667	667,322	124,474	791,796
Permanent limited pay	143,403		126,068	269,471	142,469	125,119	267,588
Deferred profit liability	28,235		39,881	68,116	25,466	37,192	62,658
Other	31,761		26,068	57,829	30,827	17,247	48,074
Total life insurance	858,040		323,043	1,181,083	866,084	304,032	1,170,116
Accident & Health Insurance:

Other	796		713	1,509	631	609	1,240

Total future policy benefit reserves	$	858,836	323,756	1,182,592	866,715	304,641	1,171,356

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.


	June 30, 2026			June 30, 2025
(In thousands)	International Insurance		Domestic Insurance	International Insurance	Domestic Insurance
Undiscounted:
Permanent:
Expected future gross premiums	$	578,192	781,473	580,254	689,888
Expected future benefit payments	1,414,021		794,891	1,431,555	717,050

Permanent Limited Pay:
Expected future gross premiums	47,577		73,805	45,154	77,106
Expected future benefit payments	262,885		398,367	248,128	396,728





Discounted:
Permanent:
Expected future gross premiums	$	445,892	487,160	448,987	422,988
Expected future benefit payments	894,394		344,281	908,266	303,296

Permanent Limited Pay:
Expected future gross premiums	42,462		47,161	40,627	49,770
Expected future benefit payments	163,001		138,960	158,811	138,640

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statement of operations and comprehensive income (loss).


	Three Months Ended June 30,					Six Months Ended June 30,
	2026			2025		2026		2025
(In thousands)	Gross Premiums		Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense
International Insurance:
Life Insurance:
Permanent	$	22,672	7,624	21,958	7,962	43,914	15,316	43,725	16,043
Permanent Limited Pay	4,238		1,829	3,891	1,763	9,009	3,596	8,352	3,527
Other	1,803		—	3,268	—	1,219	—	2,932	—
Less:
Reinsurance	516		—	428	—	900	—	899	—
Total, net of reinsurance	28,197		9,453	28,689	9,725	53,242	18,912	54,110	19,570
Accident & Health Insurance:

Other	172		—	189	—	325	—	376	—



Total	$	28,369	9,453	28,878	9,725	53,567	18,912	54,486	19,570

Domestic Insurance:
Life Insurance:
Permanent	$	17,207	1,758	14,017	1,679	32,873	3,491	27,406	3,331
Permanent Limited Pay	1,983		2,134	2,040	2,117	3,956	4,267	4,163	4,224
Other	(228)		—	776	—	225	—	1,273	—
Less:
Reinsurance	3,885		—	2,584	—	7,495	—	4,666	—
Total, net of reinsurance	15,077		3,892	14,249	3,796	29,559	7,758	28,176	7,555
Accident & Health Insurance:

Other	258		—	262	—	516	—	524	—
Less:
Reinsurance	1		—	1	—	1	—	1	—
Total, net of reinsurance	257		—	261	—	515	—	523	—
Total	$	15,334	3,892	14,510	3,796	30,074	7,758	28,699	7,555

The following table provides the weighted-average durations of the liability for future policy benefits.


	June 30, 2026		June 30, 2025
(In years)	International Insurance	Domestic Insurance	International Insurance	Domestic Insurance
Permanent:
Duration at original discount rate	8.2	17.4	7.7	16.0
Duration at current discount rate	8.0	16.3	7.7	15.0
Permanent Limited Pay:
Duration at original discount rate	7.7	13.8	5.9	15.8
Duration at current discount rate	7.3	12.9	5.6	15.0

The following table provides the weighted-average interest rates for the liability for future policy benefits.


	June 30, 2026				June 30, 2025
	International Insurance		Domestic Insurance		International Insurance		Domestic Insurance
Permanent:
Interest rate at original discount rate	4.81	%	4.99	%	4.67	%	5.03	%
Interest rate at current discount rate	5.10	%	5.53	%	4.92	%	5.82	%
Permanent Limited Pay:
Interest rate at original discount rate	4.23	%	4.85	%	3.48	%	5.67	%
Interest rate at current discount rate	5.12	%	5.49	%	4.23	%	6.50	%

LIABILITY FOR POLICYHOLDERS’ ACCOUNT BALANCES

The following table presents the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited and the respective guaranteed minimums.


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2026 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	933	—	—	31,355	32,288
1.50% - 2.99%	3,795		170	6	41,515	45,486
3.00% - 4.49%	126,834		390	26,221	—	153,445
Greater or equal to 4.50%	30,815		—	—	—	30,815
Total	$	162,377	560	26,227	72,870	262,034


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
June 30, 2025 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	851	—	—	33,465	34,316
1.50% - 2.99%	3,905		180	6	33,683	37,774
3.00% - 4.49%	104,553		381	26,989	—	131,923
Greater or equal to 4.50%	31,349		—	—	—	31,349
Total	$	140,658	561	26,995	67,148	235,362

The following tables summarize balances of and changes in policyholders' account balances.


June 30, 2026 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	85,782		88,297		51,360		27,317
Issuances	14,966			2,616		326		1,647
Premiums received	146			2,565		2,886		412

Interest credited	1,710			1,520		1,062		395

Less:
Surrenders and withdrawals	—			5,139		2,404		3,469
Benefit payments	9,961			—		—		—
Balance, end of period	$	92,643		89,859		53,230		26,302
Weighted-average crediting rates	4.13		%	3.97	%	3.98	%	3.36	%

Cash surrender value	$	92,643		89,859		53,230		26,302


June 30, 2025 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	60,414		88,080		47,768		29,897
Issuances	15,737			1,887		348		2,453
Premiums received	93			2,315		2,855		425

Interest credited	1,308			1,496		966		421

Less:
Surrenders and withdrawals	—			7,967		2,656		4,281
Benefit payments	6,197			—		—		—
Balance, end of period	$	71,355		85,811		49,281		28,915
Weighted-average crediting rates	4.09		%	3.97	%	3.84	%	3.21	%

Cash surrender value	$	71,355		85,811		49,281		28,915

The following table reconciles policyholders' account balances shown above to the policyholders' account balance liability in the consolidated balance sheets for the periods indicated below.


(In thousands)	June 30, 2026		June 30, 2025
Annuities:
Supplemental contracts without life contingencies	$	92,643	71,355
Fixed annuity	89,859		85,811
Unearned revenue reserve	1,493		1,486

Total annuities	$	183,995	158,652







Premiums paid in advance:
Premiums paid in advance	$	26,302	28,915
Other	2,896		2,148
Total premiums paid in advance	$	29,198	31,063