| Deferred Policy Acquisition Costs |
Note 5. Deferred Policy Acquisition Costs
The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31, 2025 and 2024:
| |
|
2025
|
|
|
2024 (Restated)
|
|
| |
|
American
Southern
|
|
|
Bankers
Fidelity
|
|
|
Total
|
|
|
American
Southern
|
|
|
Bankers
Fidelity
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred policy acquisition costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, beginning of year
|
|
$
|
2,866 |
|
|
$
|
38,378 |
|
|
$
|
41,244 |
|
|
$
|
2,700 |
|
|
$
|
37,856 |
|
|
$
|
40,556 |
|
|
Capitalization
|
|
|
9,634 |
|
|
|
10,298 |
|
|
|
19,932 |
|
|
|
8,498 |
|
|
|
10,741 |
|
|
|
19,239 |
|
|
Amortization
|
|
|
(9,745 |
)
|
|
|
(9,113 |
)
|
|
|
(18,858 |
)
|
|
|
(8,332 |
)
|
|
|
(10,219 |
)
|
|
|
(18,551 |
)
|
|
Balance, end of year(1)
|
|
$
|
2,755 |
|
|
$
|
39,563 |
|
|
$
|
42,318 |
|
|
$
|
2,866 |
|
|
$
|
38,378 |
|
|
$
|
41,244 |
|
1) DAC is associated with the following product lines: American Southern products include automobile liability, general liability, inland marine, automobile physical damage, and surety; and Bankers Fidelity products include individual life, group whole life, Medicare Supplement, and individual and group accident and health products.
The following table presents a rollforward of deferred policy acquisition costs for American Southern by line of business for the years ended December 31, 2025 and 2024:
| |
|
2025
|
|
| |
|
Automobile
Liability
|
|
|
General
Liability
|
|
|
Inland
Marine
|
|
|
Automobile
Physical
Damage
|
|
|
Surety
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC balance as of the beginning of the year
|
|
$
|
721 |
|
|
$
|
633 |
|
|
$
|
186 |
|
|
$
|
524 |
|
|
$
|
802 |
|
|
$
|
2,866 |
|
|
Capitalized expenses
|
|
|
2,781 |
|
|
|
2,182 |
|
|
|
691 |
|
|
|
1,876 |
|
|
|
2,104 |
|
|
|
9,634 |
|
|
Amortization of DAC
|
|
|
(2,707 |
)
|
|
|
(2,191 |
)
|
|
|
(679 |
)
|
|
|
(1,864 |
)
|
|
|
(2,304 |
)
|
|
|
(9,745 |
)
|
|
DAC balance as of the valuation date
|
|
$
|
795 |
|
|
$
|
624 |
|
|
$
|
198 |
|
|
$
|
536 |
|
|
$
|
602 |
|
|
$
|
2,755 |
|
| |
|
2024
|
|
| |
|
Automobile
Liability
|
|
|
General
Liability
|
|
|
Inland
Marine
|
|
|
Automobile
Physical
Damage
|
|
|
Surety
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC balance as of the beginning of the year
|
|
$
|
731 |
|
|
$
|
585 |
|
|
$
|
151 |
|
|
$
|
431 |
|
|
$
|
802 |
|
|
$
|
2,700 |
|
|
Capitalized expenses
|
|
|
2,139 |
|
|
|
1,875 |
|
|
|
551 |
|
|
|
1,555 |
|
|
|
2,378 |
|
|
|
8,498 |
|
|
Amortization of DAC
|
|
|
(2,149 |
)
|
|
|
(1,827 |
)
|
|
|
(516 |
)
|
|
|
(1,462 |
)
|
|
|
(2,378 |
)
|
|
|
(8,332 |
)
|
|
DAC balance as of the valuation date
|
|
$
|
721 |
|
|
$
|
633 |
|
|
$
|
186 |
|
|
$
|
524 |
|
|
$
|
802 |
|
|
$
|
2,866 |
|
The following table presents a rollforward of deferred policy acquisition costs for Bankers Fidelity by line of business for the years ended December 31, 2025 and 2024:
| |
|
2025
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Individual
Life
|
|
|
Group
Whole Life
|
|
|
Medicare
Supplement
|
|
|
Other
Individual
Accident
and Health
|
|
|
Group
Accident
and Health
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC balance as of the beginning of the year
|
|
$
|
6,258 |
|
|
$
|
10,788 |
|
|
$
|
17,368 |
|
|
$
|
3,958 |
|
|
$
|
6 |
|
|
$
|
38,378 |
|
|
Capitalized expenses
|
|
|
514 |
|
|
|
3,440 |
|
|
|
3,270 |
|
|
|
1,521 |
|
|
|
1,553 |
|
|
|
10,298 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of DAC
|
|
|
(601 |
)
|
|
|
(2,090 |
)
|
|
|
(3,415 |
)
|
|
|
(1,451 |
)
|
|
|
(1,556 |
)
|
|
|
(9,113 |
)
|
|
DAC balance as of the valuation date
|
|
$
|
6,171 |
|
|
$
|
12,138 |
|
|
$
|
17,223 |
|
|
$
|
4,028 |
|
|
$
|
3 |
|
|
$
|
39,563 |
|
| |
|
2024
|
|
| |
|
(Restated)
|
|
| |
|
Individual
Life
|
|
|
Group
Whole Life
|
|
|
Medicare
Supplement
|
|
|
Other
Individual
Accident
and Health
|
|
|
Group
Accident
and Health
|
|
|
Total
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAC balance as of the beginning of the year
|
|
$
|
6,428 |
|
|
$
|
8,435 |
|
|
$
|
19,443 |
|
|
$
|
3,527 |
|
|
$
|
23 |
|
|
$
|
37,856 |
|
|
Capitalized expenses
|
|
|
376 |
|
|
|
3,818 |
|
|
|
1,985 |
|
|
|
1,229 |
|
|
|
3,333 |
|
|
|
10,741 |
|
|
Amortization of DAC
|
|
|
(546 |
)
|
|
|
(1,465 |
)
|
|
|
(4,060 |
)
|
|
|
(798 |
)
|
|
|
(3,350 |
)
|
|
|
(10,219 |
)
|
|
DAC balance as of the valuation date
|
|
$
|
6,258 |
|
|
$
|
10,788 |
|
|
$
|
17,368 |
|
|
$
|
3,958 |
|
|
$
|
6 |
|
|
$
|
38,378 |
|
|