v3.26.1
Policyholder Account Balances
 6 Months Ended
Jun. 30, 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.

  

   June 30, 2026   December 31, 2025 
Policyholder account balances - fixed annuities  $102,529,346   $104,233,454 
Deferred profit liability - fixed annuities   506,582    546,802 
Policyholder account balances - universal life   34,990,504    35,825,494 
           
Gross policyholder account balances  $138,026,432   $140,605,750 
           
Receivable from reinsurers          
           
Policyholder account balances - fixed annuities   2,725,873    3,275,247 
           
Total receivable from reinsurers   2,725,873    3,275,247 
           
Net policyholder account balances  $135,300,559   $137,330,503 

 

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

  

    Universal Life    Fixed Annuities    Universal Life    Fixed Annuities 
   Six Months Ended June 30, 2026   Six Months Ended June 30, 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   656,762    4,517,967    684,549    5,546,355 
Interest credited   891,634    1,518,387    836,413    1,531,110 
Policy charges (1)   (1,181,073)   (7,700)   (1,140,891)   (3,868)
Surrenders, withdrawals and benefit payments   (1,202,313)   (7,732,762)   (1,095,280)   (7,326,469)
Balance, end of period   34,990,504    102,529,346    36,376,021    104,835,749 
Less: Receivable from reinsurers   -    2,725,873    -    3,473,439 
Policyholder account balances, net of reinsurance  $34,990,504   $99,803,473   $36,376,021   $101,362,310 
                     
Weighted-average crediting rate   4.16%   3.03%   4.16%   3.03%
Net amount at risk (2)   128,734,920    N/A     135,397,796    N/A  
Cash surrender value   34,990,504    102,046,772    36,376,021    104,473,330 

 

 

(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

June 30, 2026 (Unaudited)

 

11) Policyholder Account Balances (Continued)

 

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

  

   2026   2025 
   Six Months Ended June 30, 
   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   (40,220)   (41,149)
Other adjustments   -    - 
Balance, end of period   506,582    586,316 
Less: Receivable from reinsurers   -    - 
Deferred profit liability, net of reinsurance  $506,582   $586,316 

 

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:

 

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 
   June 30, 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%   24,733,263    -    1,541,406    -    26,274,669 
Greater than 4.00%   4,249,139    4,466,696    -    -    8,715,835 
Total  $28,982,402   $4,466,696   $1,541,406   $-   $34,990,504 
                          
Fixed Annuities                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   10,546,598    9,548,635    -    -    20,095,233 
2.00% - 2.99%   6,737,506    -    334,302    4,818,977    11,890,785 
3:00% - 4.00%   46,550,291    10,291,146    90,975    425,284    57,357,696 
Greater than 4.00%   12,832,101    -    353,531    -    13,185,632 
Total  $76,666,496   $19,839,781   $778,808   $5,244,261   $102,529,346 

 

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 
   June 30, 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%   25,686,478    -    1,526,169    -    27,212,647 
Greater than 4.00%   4,481,400    4,681,974    -    -    9,163,374 
Total  $30,167,878   $4,681,974   $1,526,169   $-   $36,376,021 
                          
Fixed Annuities                         
Less than 1.00%  $-   $-   $-   $-   $- 
1.00% - 1.99%   11,531,923    10,835,181    -    -    22,367,104 
2.00% - 2.99%   4,783,024    -    333,277    4,984,265    10,100,566 
3:00% - 4.00%   48,154,943    10,560,036    37,929    454,076    59,206,984 
Greater than 4.00%   12,807,491    -    353,604    -    13,161,095 
Total  $77,277,381   $21,395,217   $724,810   $5,438,341   $104,835,749 

 

 

SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements

June 30, 2026 (Unaudited)