| Deferred Policy Acquisition Costs |
(7) Deferred Policy Acquisition Costs The balances and activity in DAC were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
Year ended |
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
(In thousands) |
|
|
|
Term Life Insurance |
|
|
Segregated Funds (Canada) |
|
|
Term Life Insurance |
|
|
Segregated Funds (Canada) |
|
DAC balance, beginning of period |
|
$ |
3,845,442 |
|
|
$ |
55,139 |
|
|
$ |
3,608,599 |
|
|
$ |
55,303 |
|
Capitalization |
|
|
254,798 |
|
|
|
1,381 |
|
|
|
540,952 |
|
|
|
2,547 |
|
Amortization |
|
|
(166,234 |
) |
|
|
(2,638 |
) |
|
|
(316,411 |
) |
|
|
(5,381 |
) |
Foreign exchange translation and other |
|
|
(9,473 |
) |
|
|
(1,830 |
) |
|
|
12,302 |
|
|
|
2,670 |
|
DAC balance, at the end of period |
|
$ |
3,924,533 |
|
|
$ |
52,052 |
|
|
$ |
3,845,442 |
|
|
$ |
55,139 |
|
Reconciliation of DAC by product was as follows:
|
|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
|
|
(In thousands) |
|
Term Life Insurance |
|
$ |
3,924,533 |
|
|
$ |
3,845,442 |
|
Segregated Funds (Canada) |
|
|
52,052 |
|
|
|
55,139 |
|
Other |
|
|
14,901 |
|
|
|
15,417 |
|
Total DAC, net |
|
$ |
3,991,486 |
|
|
$ |
3,915,998 |
|
There were no material changes to the judgments, assumptions and methods used to amortize DAC during the six months ended June 30, 2026 and 2025.
|