v3.26.1
Future Policy Benefits and Unpaid Claims (Tables)
 6 Months Ended
Jun. 30, 2026
Insurance [Abstract]  
Schedule of Liability for Future Policy Benefits, by Product Segment

The following table provides a reconciliation of future policy benefits and unpaid claims and the related receivable from reinsurers to the condensed consolidated balance sheets.

 

   June 30, 2026   December 31, 2025 
Traditional and limited-payment life  $576,213,332   $581,389,399 
Deferred profit liability - traditional and limited-payment life   211,420,629    205,802,774 
Payout annuities   91,209    95,436 
Accident and health   495,742    505,208 
Other policyholder funds   4,463,995    4,514,783 
Reported but unpaid claims   2,306,231    3,299,899 
Incurred but not reported claims   4,081,502    4,099,447 
           
Gross future policy benefits and unpaid claims  $799,072,640   $799,706,946 
           
Receivable from reinsurers          
           
Traditional and limited-payment life   8,997,782    9,186,983 
Deferred profit liability - traditional and limited-payment life   963,513    985,258 
Accident and health   70,173    70,173 
Reported but unpaid claims   63,751    131,712 
Incurred but not reported claims   6,000    6,000 
           
Total receivable from reinsurers   10,101,219    10,380,126 
           
Net future policy benefits and unpaid claims  $788,971,421   $789,326,820 
           
Net unpaid claims  $6,317,982   $7,261,634 
Schedule of Balances of and Changes in the Liability for Future Policy Benefits

The following table summarizes the balance of and changes in the liability for future policy benefits for traditional and limited-payment life:

 

   2026   2025 
   Six Months Ended June 30, 
   2026   2025 
Present Value of Expected Net Premiums:        
Balance, beginning of year  $250,450,302   $252,828,339 
Beginning balance at original discount rate   250,331,770    258,790,212 
Effect of changes in cash flow assumptions   -    - 
Effect of actual variances from expected experience (1)   (9,125,505)   (8,850,587)
Adjusted beginning of year balance   241,206,265    249,939,625 
Issuances   24,679,101    26,216,812 
Interest accrual   5,864,428    6,164,310 
Net premiums collected (2)   (25,194,587)   (25,990,691)
Ending balance at original discount rate   246,555,207    256,330,056 
Effect of changes in discount rate assumptions   (4,092,345)   (1,782,680)
Balance, end of period  $242,462,862   $254,547,376 
           
Present Value of Expected Future Policy Benefits:          
Balance, beginning of year  $831,839,700   $800,812,826 
Beginning balance at original discount rate   867,177,517    858,516,933 
Effect of changes in cash flow assumptions   -    - 
Effect of actual variances from expected experience (1)   (6,967,515)   (6,646,425)
Adjusted beginning of year balance   860,210,002    851,870,508 
Issuances   24,609,755    26,382,636 
Interest accrual   20,776,434    20,629,718 
Benefit payments   (34,467,584)   (34,214,879)
Ending balance at original discount rate   871,128,607    864,667,983 
Effect of changes in discount rate assumptions   (52,452,413)   (43,363,232)
Balance, end of period  $818,676,194   $821,304,751 
           
Net liability for future policy benefits, pre-flooring  $576,205,399   $566,700,902 
Flooring impact, end of period   7,933    56,473 
Net liability for future policy benefits, post-flooring   576,213,332    566,757,375 
Less: Receivable from reinsurers   8,997,782    9,217,915 
Net liability for future policy benefits, after reinsurance  $567,215,550   $557,539,460 

 

 

(1)For the three and six months ended June 30, 2026, and 2025, the net effect of actual variances from expected experience was primarily due to lapses. Actual mortality and surrenders were close to expected.
(2)Net premiums collected represent the portion of gross premiums collected from policyholders that is used to fund expected benefit payments.

Schedule of Amount of Undiscounted and Discounted Expected Gross Premiums and Expected Future Benefit Payments

The following table summarizes the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for traditional and limited-payment life:

 

   2026   2025 
   Six Months Ended June 30, 
   2026   2025 
Undiscounted expected future benefit payments  $1,930,940,323   $1,933,878,976 
Discounted expected future benefit payments (at original discount rate)   871,128,607    864,667,984 
Discounted expected future benefit payments (at current discount rate)   818,676,194    821,304,751 
           
Undiscounted expected future gross premiums  $806,178,110   $832,796,284 
Discounted expected future gross premiums (at original discount rate)   540,083,057    556,610,277 
Discounted expected future gross premiums (at current discount rate)   531,118,711    552,739,259 
Schedule of Gross Premiums and Interest Accretion

The following table summarizes the amount of gross premiums and interest accretion recognized in insurance premiums and other considerations and policyholder benefits and claims, respectively, in the condensed consolidated statements of earnings for traditional and limited-payment life:

 

   2026   2025 
   Six Months Ended June 30, 
   2026   2025 
Gross premiums  $57,326,570   $59,480,517 
Interest accretion  $14,912,006   $14,465,409 
Schedule of Weighted-average Interest Rates

The following table summarizes the weighted-average interest rates for traditional and limited-payment life:

 

   2026   2025 
   As of June 30, 
   2026   2025 
Interest accretion rate   4.90%   4.90%
Current discount rate   5.60%   5.50%
Schedule of Weighted Average Duration of the Liability

The following table summarizes the weighted-average duration of the liability for traditional and limited-payment life:

 

   As of June 30, 
   2026   2025 
Duration of the liability in years (at original discount rate)   15    15 
Duration of the liability in years (at current discount rate)   13    14 
Schedule of Balances of and Changes in Deferred Profit Liability for Traditional and Limited- Payment Life

The following table summarizes the balances of and changes in deferred profit liability for traditional and limited-payment life:

 

   2026   2025 
   Six Months Ended June 30, 
   2026   2025 
Balance, beginning of year  $205,802,774   $192,278,993 
Effect of actual variances from expected experience (1)   (1,663,002)   (2,328,599)
Adjusted balance, beginning of period   204,139,772    189,950,394 
Profits deferred   32,131,982    33,489,827 
Interest accrual   5,143,805    4,829,075 
Amortization   (29,994,930)   (29,412,087)
Other adjustments   -    - 
Balance, end of period   211,420,629    198,857,209 
Less: Receivable from reinsurers   963,513    1,001,393 
Deferred profit liability, net of reinsurance  $210,457,116   $197,855,816 

 

 

(1)For the three and six months ended June 30, 2026, and 2025, the net effect of actual variances from expected experience was primarily due to lapses. Actual mortality and surrenders were close to expected.

Schedule of Liability for Reported but Unpaid Claims and Incurred but not Reported Claims

The following table provides a roll forward of the Company’s liability for reported but unpaid claims and incurred but not reported claims, net of the related receivable from reinsurers.

 

   Life   Annuities   Accident and Health   Total 
Balance at December 31, 2025  $6,941,791   $302,843   $17,000   $7,261,634 
Incurred   30,576,460 (1)  6,369,120(2)   71,625 (3)  37,017,205 
Settled   (31,556,777)   (6,332,455)   (71,625)   (37,960,857)
Balance at June 30, 2026  $5,961,474   $339,508   $17,000   $6,317,982 

 

    Life    Annuities    Accident and Health    Total 
Balance at December 31, 2024  $6,363,243   $255,480   $17,000   $6,635,723 
Incurred   31,067,103(1)  6,696,820(2)   661 (3)  37,764,584 
Settled   (30,729,487)   (6,711,229)   (661)   (37,441,377)
Balance at June 30, 2025  $6,700,859   $241,071   $17,000   $6,958,930 

 

 

(1)Included in policyholder benefits and claims on the condensed consolidated statements of earnings
(2)Released from policyholder account balances
(3)Included in policyholder benefits and claims on the condensed consolidated statements of earnings