| Long-Duration Insurance Contracts Disclosure [Text Block] |
10. Liability for Future Policy Benefits
Future policy benefits include reserves for long-duration contracts as well as certain reinsurance balances when in a liability position.
The balances and changes in the liability for future policy benefits meeting ASU 2018-12 standards as of and for the six months ended June 30, 2026 and 2025 are summarized as follows:
| |
|
(Unaudited) June 30, 2026
|
|
|
(Unaudited) June 30, 2025
|
|
| |
|
Present Value of
Net Premiums
|
|
|
Present Value of
Benefits
|
|
|
Present Value of
Net Premiums
|
|
|
Present Value of
Benefits
|
|
|
Balance, beginning of year
|
|
$ |
131,056,717 |
|
|
$ |
235,345,739 |
|
|
$ |
133,088,475 |
|
|
$ |
228,572,260 |
|
|
Effect of changes in discount rate
|
|
|
9,629,855 |
|
|
|
26,509,627 |
|
|
|
10,348,860 |
|
|
|
28,154,664 |
|
|
Beginning balance at original discount rate
|
|
$ |
140,686,572 |
|
|
$ |
261,855,366 |
|
|
$ |
143,437,335 |
|
|
$ |
256,726,924 |
|
|
Effect of changes in cash flow considerations
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Effect of actual variances from expected
|
|
|
(4,123,461 |
) |
|
|
(4,443,005 |
) |
|
|
(4,381,905 |
) |
|
|
(4,590,224 |
) |
|
Trued-Up balance
|
|
$ |
136,563,111 |
|
|
$ |
257,412,361 |
|
|
$ |
139,055,430 |
|
|
$ |
252,136,700 |
|
|
New issuances
|
|
|
11,338,161 |
|
|
|
11,699,407 |
|
|
|
9,945,072 |
|
|
|
10,267,140 |
|
|
Net premium collected
|
|
|
(9,430,363 |
) |
|
|
- |
|
|
|
(9,408,157 |
) |
|
|
- |
|
|
Interest accrual
|
|
|
3,057,894 |
|
|
|
5,753,272 |
|
|
|
3,083,956 |
|
|
|
5,624,767 |
|
|
Withdrawal/surrenders
|
|
|
- |
|
|
|
(1,329,970 |
) |
|
|
- |
|
|
|
(1,179,973 |
) |
|
Benefit payments
|
|
|
- |
|
|
|
(8,170,804 |
) |
|
|
- |
|
|
|
(7,517,117 |
) |
|
Ending balance at original discount rate
|
|
$ |
141,528,804 |
|
|
$ |
265,364,265 |
|
|
$ |
142,676,301 |
|
|
$ |
259,331,518 |
|
|
Effect of changes in discount rate
|
|
|
(20,442,687 |
) |
|
|
(38,666,101 |
) |
|
|
(19,200,500 |
) |
|
|
(36,450,274 |
) |
|
Balance, end of year
|
|
$ |
121,086,117 |
|
|
$ |
226,698,164 |
|
|
$ |
123,475,801 |
|
|
$ |
222,881,244 |
|
|
Reinsurance recoverable
|
|
$ |
730,617 |
|
|
|
|
|
|
$ |
751,315 |
|
|
|
|
|
|
Net liability for future policy benefits
|
|
$ |
104,881,429 |
|
|
|
|
|
|
$ |
98,654,128 |
|
|
|
|
|
|
Deferred profit liability
|
|
$ |
2,385,885 |
|
|
|
|
|
|
$ |
2,210,250 |
|
|
|
|
|
The composition of future policy benefits as of June 30, 2026 and December 31, 2025 is summarized as follows:
| |
|
(Unaudited)
|
|
|
|
|
|
| |
|
June 30, 2026
|
|
|
December 31, 2025
|
|
|
Future policy benefits meeting ASU 2018-12 standards
|
|
$ |
105,612,046 |
|
|
$ |
104,289,022 |
|
|
Reinsurance recoverable
|
|
|
(730,617 |
) |
|
|
(744,285 |
) |
|
Subtotal
|
|
|
104,881,429 |
|
|
|
103,544,737 |
|
|
Deferred profit liability
|
|
|
2,385,885 |
|
|
|
2,449,123 |
|
|
Total future policy benefits meeting ASU 2018-12 standards
|
|
|
107,267,314 |
|
|
|
105,993,860 |
|
|
Future policy benefits not meeting ASU 2018-12 standards:
|
|
|
|
|
|
|
|
|
|
Participating life insurance contracts not on contribution basis
|
|
|
30,405,668 |
|
|
|
26,321,494 |
|
|
Reduced paid up and extended term life insurance contracts
|
|
|
7,943,839 |
|
|
|
7,916,928 |
|
|
Other
|
|
|
1,692,259 |
|
|
|
1,703,169 |
|
|
Total future policy benefits not meeting ASU 2018-12 standards
|
|
|
40,041,766 |
|
|
|
35,941,591 |
|
|
Future policy benefit reinsurance ceded
|
|
|
7,080,607 |
|
|
|
7,293,356 |
|
|
Total future policy benefits
|
|
$ |
154,389,687 |
|
|
$ |
149,228,807 |
|
The undiscounted expected future benefit payments and gross premiums as of June 30, 2026 and December 31, 2025 are summarized as follows:
| |
|
(Unaudited) June 30, 2026
|
|
| |
|
Undiscounted
|
|
|
Original Present Value
|
|
|
Current Present Value
|
|
|
Gross premiums
|
|
$ |
309,932,156 |
|
|
$ |
227,140,185 |
|
|
$ |
194,806,763 |
|
|
Benefits
|
|
|
420,054,328 |
|
|
|
265,364,265 |
|
|
|
226,698,164 |
|
| |
|
December 31, 2025
|
|
| |
|
Undiscounted
|
|
|
Original Present Value
|
|
|
Current Present Value
|
|
|
Gross premiums
|
|
$ |
294,949,116 |
|
|
$ |
226,864,424 |
|
|
$ |
211,608,008 |
|
|
Benefits
|
|
|
408,757,275 |
|
|
|
261,855,366 |
|
|
|
235,345,739 |
|
The weighted-average interest rates as of June 30, 2026 and December 31, 2025 are summarized as follows:
| |
|
(Unaudited)
|
|
| |
|
June 30, 2026
|
|
| |
|
Weighted-average interest rate
|
|
|
Original discount rate
|
|
|
4.03 |
% |
|
Current discount rate
|
|
|
5.31 |
% |
| |
|
December 31, 2025
|
|
| |
|
Weighted-average interest rate
|
|
|
Original discount rate
|
|
|
4.15 |
% |
|
Current discount rate
|
|
|
5.32 |
% |
The weighted-average durations of the liability as of June 30, 2026 and December 31, 2025 are summarized as follows:
| |
|
(Unaudited) June 30, 2026
|
|
| |
|
Weighted-average duration of the liability
|
|
|
Original duration of the liability in years
|
|
|
14.07 |
|
|
Current duration of the liability in years
|
|
|
13.43 |
|
| |
|
December 31, 2025
|
|
| |
|
Weighted-average duration of liability
|
|
|
Original duration of the liability in years
|
|
|
13.86 |
|
|
Current duration of the liability in years
|
|
|
13.27 |
|
The actual experience during the six months ended June 30, 2026 and 2025 compared to what was expected for the six months ended June 30, 2026 and 2025 are summarized as follows:
| |
|
(Unaudited) June 30, 2026
|
|
| |
|
Amount Inforce
|
|
|
Mortality
|
|
|
Lapsation
|
|
|
Total
|
|
|
Expected
|
|
$ |
803,590,701 |
|
|
$ |
8,667,732 |
|
|
$ |
2,702,371 |
|
|
$ |
11,370,103 |
|
|
Expected rate
|
|
|
|
|
|
|
1.08 |
% |
|
|
0.34 |
% |
|
|
1.41 |
% |
|
Actual
|
|
$ |
803,590,701 |
|
|
$ |
8,170,804 |
|
|
$ |
1,329,970 |
|
|
$ |
9,500,774 |
|
|
Actual rate
|
|
|
|
|
|
|
1.02 |
% |
|
|
0.17 |
% |
|
|
1.18 |
% |
|
Actual to expected ratio
|
|
|
|
|
|
|
94.27 |
% |
|
|
49.21 |
% |
|
|
83.56 |
% |
| |
|
(Unaudited) June 30, 2025
|
|
| |
|
Amount Inforce
|
|
|
Mortality
|
|
|
Lapsation
|
|
|
Total
|
|
|
Expected
|
|
$ |
729,050,161 |
|
|
$ |
7,352,374 |
|
|
$ |
2,302,451 |
|
|
$ |
9,654,824 |
|
|
Expected rate
|
|
|
|
|
|
|
1.01 |
% |
|
|
0.32 |
% |
|
|
1.32 |
% |
|
Actual
|
|
$ |
729,050,161 |
|
|
$ |
7,517,117 |
|
|
$ |
1,181,941 |
|
|
$ |
8,699,058 |
|
|
Actual rate
|
|
|
|
|
|
|
1.03 |
% |
|
|
0.16 |
% |
|
|
1.19 |
% |
|
Actual to expected ratio
|
|
|
|
|
|
|
102.24 |
% |
|
|
51.33 |
% |
|
|
90.10 |
% |
|