v3.26.1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customers

(16) 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 June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(In thousands)

 

Term Life Insurance segment revenues:

 

 

 

 

 

 

 

 

 

 

 

 

  Other, net

 

$

11,243

 

 

$

12,221

 

 

$

22,518

 

 

$

24,966

 

    Total segment revenues from contracts with customers

 

 

11,243

 

 

 

12,221

 

 

 

22,518

 

 

 

24,966

 

  Revenues from sources other than contracts with customers

 

 

432,362

 

 

 

429,613

 

 

 

885,722

 

 

 

874,710

 

      Total Term Life Insurance segment revenues

 

$

443,605

 

 

$

441,834

 

 

$

908,240

 

 

$

899,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment and Savings Products segment revenues:

 

 

 

 

 

 

 

 

 

 

 

 

  Commissions and fees

 

 

 

 

 

 

 

 

 

 

 

 

    Sales-based revenues

 

$

135,509

 

 

$

115,933

 

 

$

271,864

 

 

$

227,204

 

    Asset-based revenues

 

 

184,755

 

 

 

141,811

 

 

 

359,106

 

 

 

280,941

 

    Account-based revenues

 

 

24,118

 

 

 

24,394

 

 

 

47,737

 

 

 

48,588

 

  Other, net

 

 

3,293

 

 

 

3,236

 

 

 

6,598

 

 

 

6,568

 

      Total segment revenues from contracts with customers

 

 

347,675

 

 

 

285,374

 

 

 

685,305

 

 

 

563,301

 

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

 

 

12,843

 

 

 

12,924

 

 

 

25,859

 

 

 

25,808

 

        Total Investment and Savings Products segment revenues

 

$

360,518

 

 

$

298,298

 

 

$

711,164

 

 

$

589,109

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and Other Distributed Products segment revenues:

 

 

 

 

 

 

 

 

 

 

 

 

  Commissions and fees

 

$

11,385

 

 

$

10,970

 

 

$

20,786

 

 

$

20,447

 

  Other, net

 

 

1,018

 

 

 

937

 

 

 

2,323

 

 

 

1,996

 

    Total segment revenues from contracts with customers

 

 

12,403

 

 

 

11,907

 

 

 

23,109

 

 

 

22,443

 

  Revenues from sources other than contracts with customers

 

 

48,541

 

 

 

41,295

 

 

 

95,246

 

 

 

86,949

 

      Total Corporate and Other Distributed Products segment revenues

 

$

60,944

 

 

$

53,202

 

 

$

118,355

 

 

$

109,392

 

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 June 30,

 

 

Six months ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(In thousands)

 

Balance, beginning of period

 

$

53,278

 

 

$

57,331

 

 

$

54,321

 

 

$

58,079

 

Commissions revenue

 

 

5,710

 

 

 

5,793

 

 

 

10,636

 

 

 

11,077

 

Less: collections

 

 

(6,338

)

 

 

(6,309

)

 

 

(12,307

)

 

 

(12,341

)

Balance, at the end of period

 

$

52,650

 

 

$

56,815

 

 

$

52,650

 

 

$

56,815

 

 

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.