Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 07, 2022 | Jun. 30, 2021 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-55522 | ||
Entity Registrant Name | NATIONAL WESTERN LIFE GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-3339380 | ||
Entity Address, Address Line One | 10801 N. Mopac Expy Bldg 3 | ||
Entity Address, City or Town | Austin, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 78759 | ||
City Area Code | (512) | ||
Local Phone Number | 836-1010 | ||
Title of 12(b) Security | Class A Common Stock, $0.01 par value | ||
Trading Symbol | NWLI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 574,415,512 | ||
Documents Incorporated by Reference | Documents incorporated by reference: Portions of the registrant’s definitive proxy statement for the annual meeting of shareholders to be held June 17, 2022, which will be filed within 120 days after December 31, 2021, are incorporated by reference into Part III of this report. | ||
Entity Central Index Key | 0001635984 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Class A | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 3,436,020 | ||
Class B | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 200,000 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 686 |
Auditor Name | BKD, LLP |
Auditor Location | West Des Moines, Iowa |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Debt securities available-for-sale, at fair value (cost: $8,604,250 and $9,874,543) | $ 9,068,946 | $ 10,770,923 |
Debt securities trading, at fair value (cost: $1,066,108 and $0) | 1,077,438 | 0 |
Mortgage loans, net of allowance for credit losses ($2,987 and $2,486), ($8,469 and $0 at fair value) | 487,304 | 332,521 |
Policy loans | 71,286 | 74,083 |
Derivatives, index options | 101,622 | 132,821 |
Equity securities, at fair value (cost: $16,549 and $12,069) | 28,217 | 17,744 |
Other long-term investments | 137,670 | 104,113 |
Total investments | 10,972,483 | 11,432,205 |
Cash and cash equivalents | 714,624 | 581,059 |
Deferred policy acquisition costs | 569,839 | 382,080 |
Deferred sales inducements | 78,136 | 43,845 |
Value of business acquired | 154,499 | 162,968 |
Cost of reinsurance | 89,686 | 102,840 |
Accrued investment income | 84,394 | 88,323 |
Federal income tax receivable | 0 | 10,408 |
Amounts recoverable from reinsurer | 1,539,919 | 1,709,232 |
Other assets | 126,609 | 135,310 |
Total assets | 14,330,189 | 14,648,270 |
Future policy benefits: | ||
Universal life and annuity contracts | 9,003,275 | 9,035,316 |
Traditional life reserves | 909,712 | 898,103 |
Other policyholder liabilities | 134,338 | 138,480 |
Funds withheld liability | 1,485,267 | 1,697,591 |
Deferred Federal income tax liability | 101,166 | 145,126 |
Federal income tax payable | 2,331 | 0 |
Other liabilities | 154,409 | 193,904 |
Total liabilities | 11,790,498 | 12,108,520 |
Commitments and Contingencies | ||
Common stock: | ||
Additional paid-in capital | 41,716 | 41,716 |
Accumulated other comprehensive income | 215,953 | 395,421 |
Retained earnings | 2,281,986 | 2,102,577 |
Total stockholders' equity | 2,539,691 | 2,539,750 |
Total liabilities and stockholders' equity | 14,330,189 | 14,648,270 |
Class A | ||
Common stock: | ||
Common stock, value outstanding | 34 | 34 |
Class B | ||
Common stock: | ||
Common stock, value outstanding | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investments: | ||
Debt securities available for sale, amortized cost | $ 8,604,250 | $ 9,874,543 |
Debt securities, trading, cost | 1,066,108 | 0 |
Mortgage loans-allowance for possible losses | 2,987 | 2,486 |
Mortgage loans | 8,469 | 0 |
Equity securities, cost | $ 16,549 | $ 12,069 |
Class A | ||
STOCKHOLDERS' EQUITY (Note 12): | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Class B | ||
STOCKHOLDERS' EQUITY (Note 12): | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Premiums and other revenues: | |||
Universal life and annuity contract charges | $ 134,254 | $ 145,405 | $ 149,721 |
Traditional life premiums | 90,043 | 92,542 | 90,248 |
Net investment income | 562,530 | 417,202 | 555,492 |
Other revenues | 22,314 | 18,522 | 17,486 |
Net realized investment gains: | |||
Total other-than-temporary impairment (“OTTI”) gains (losses) | 0 | 5 | (7,838) |
Portion of OTTI (gains) losses recognized in other comprehensive income | 0 | (5) | (9) |
Net OTTI losses recognized in earnings | 0 | 0 | (7,847) |
Other net investment gains | 14,950 | 21,071 | 14,088 |
Total net realized investment gains | 14,950 | 21,071 | 6,241 |
Total revenues | 824,091 | 694,742 | 819,188 |
Benefits and expenses: | |||
Life and other policy benefits | 187,577 | 131,337 | 137,342 |
Amortization of deferred transaction costs | 69,461 | 140,503 | 116,802 |
Universal life and annuity contract interest | 213,184 | 206,250 | 295,330 |
Other operating expenses | 126,612 | 104,584 | 104,558 |
Total benefits and expenses | 596,834 | 582,674 | 654,032 |
Earnings (loss) before Federal income taxes | 227,257 | 112,068 | 165,156 |
Federal income taxes (benefit) | 46,576 | 19,756 | 33,540 |
Net earnings (loss) | 180,681 | 92,312 | 131,616 |
Class A | |||
Benefits and expenses: | |||
Net earnings (loss) | $ 175,571 | $ 89,701 | $ 127,894 |
Basic Earnings Per Share: | |||
Basic earnings per share (in dollars per share) | $ 51.10 | $ 26.11 | $ 37.22 |
Diluted Earnings Per Share: | |||
Diluted earnings per share (in dollars per share) | $ 51.10 | $ 26.11 | $ 37.22 |
Class B | |||
Benefits and expenses: | |||
Net earnings (loss) | $ 5,110 | $ 2,611 | $ 3,722 |
Basic Earnings Per Share: | |||
Basic earnings per share (in dollars per share) | $ 25.55 | $ 13.05 | $ 18.61 |
Diluted Earnings Per Share: | |||
Diluted earnings per share (in dollars per share) | $ 25.55 | $ 13.05 | $ 18.61 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 180,681 | $ 92,312 | $ 131,616 |
Unrealized gains (losses) on securities: | |||
Net unrealized holding gains (losses) arising during period | (179,587) | 352,561 | 96,954 |
Net unrealized liquidity gains (losses) | 0 | 6 | 3 |
Reclassification adjustment for net amounts included in net earnings | (12,934) | (4,485) | 3,997 |
Net unrealized gains (losses) on securities | (192,521) | 348,082 | 100,954 |
Foreign currency translation adjustments | (16) | 15 | 524 |
Benefit plans: | |||
Amortization of net prior service cost and net gain (loss) | 13,069 | (12,784) | (4,355) |
Other comprehensive income (loss) | (179,468) | 335,313 | 97,123 |
Comprehensive income | $ 1,213 | $ 427,625 | $ 228,739 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock: | Additional paid-in capital: | Accumulated other comprehensive income: | Unrealized gains (losses) on non-impaired securities: | Unrealized losses on impaired held-to-maturity securities: | Unrealized losses on impaired available-for-sale securities: | Unrealized losses on impaired available-for-sale securities:Cumulative Effect, Period of Adoption, Adjustment | Foreign currency translation adjustments: | Benefit plan liability adjustment: | Retained earnings: | Retained earnings:Cumulative Effect, Period of Adoption, Adjusted Balance | [1] | Retained earnings:Cumulative Effect, Period of Adoption, Adjustment | [1] |
Stockholders’ equity, beginning of period at Dec. 31, 2018 | $ 36 | $ 41,716 | $ (30,286) | $ (7) | $ (2) | $ 0 | $ 4,577 | $ (11,297) | $ 1,884,227 | $ 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Change in unrealized gains (losses) during period | $ 96,954 | 100,951 | |||||||||||||
Amortization | 7 | ||||||||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | ||||||||||||||
Change in shadow deferred policy acquisition costs | (4) | 0 | |||||||||||||
Disposals of previously impaired securities | 0 | ||||||||||||||
Change in translation adjustments during period | 524 | 524 | |||||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (4,355) | (4,355) | |||||||||||||
Net earnings | 131,616 | $ 131,616 | |||||||||||||
Stockholder dividends | (1,273) | ||||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2019 | 2,116,430 | 36 | 41,716 | $ 60,108 | 70,665 | (4) | (2) | 2 | 5,101 | (15,652) | 2,014,570 | 2,014,570 | (3,032) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Change in unrealized gains (losses) during period | 352,561 | 348,076 | |||||||||||||
Amortization | 4 | ||||||||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | ||||||||||||||
Change in shadow deferred policy acquisition costs | (2) | 0 | |||||||||||||
Disposals of previously impaired securities | 2 | ||||||||||||||
Change in translation adjustments during period | 14 | 15 | |||||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | (12,784) | (12,784) | |||||||||||||
Net earnings | 92,312 | 92,312 | |||||||||||||
Stockholder dividends | (1,273) | ||||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2020 | 2,539,750 | 36 | 41,716 | 395,421 | 418,741 | 0 | 0 | $ 0 | 5,116 | (28,436) | 2,102,577 | $ 2,102,577 | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Change in unrealized gains (losses) during period | (179,587) | (192,521) | |||||||||||||
Amortization | 0 | ||||||||||||||
Other-than-temporary impairments, non-credit, net of tax | 0 | ||||||||||||||
Change in shadow deferred policy acquisition costs | 0 | 0 | |||||||||||||
Disposals of previously impaired securities | 0 | ||||||||||||||
Change in translation adjustments during period | (16) | (16) | |||||||||||||
Amortization of net prior service cost and net gain (loss), net of tax | 13,069 | 13,069 | |||||||||||||
Net earnings | 180,681 | 180,681 | |||||||||||||
Stockholder dividends | (1,272) | ||||||||||||||
Stockholders’ equity, end of period at Dec. 31, 2021 | $ 2,539,691 | $ 36 | $ 41,716 | $ 215,953 | $ 226,220 | $ 0 | $ 0 | $ 5,100 | $ (15,367) | $ 2,281,986 | |||||
[1] | The 2019 beginning balance was revised by $11.8 million. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revised beginning balance | $ (2,281,986) | $ (2,102,577) | |
Restatement Adjustment | |||
Revised beginning balance | $ 11,800 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net earnings | $ 180,681 | $ 92,312 | $ 131,616 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Universal life and annuity contract interest | 213,184 | 206,250 | 295,330 |
Surrender charges and other policy revenues | (26,315) | (26,623) | (32,909) |
Realized (gains) losses on investments | (14,950) | (21,071) | (6,241) |
Accretion/amortization of discounts and premiums, investments | 1,846 | 3,371 | 2,264 |
Depreciation and amortization | 13,001 | 11,903 | 11,677 |
Increase (decrease) in estimated credit losses on investments | 501 | (2,027) | 0 |
(Increase) decrease in value of debt securities trading | (11,331) | 0 | 0 |
(Increase) decrease in value of equity securities | (6,369) | 937 | (4,051) |
(Increase) decrease in value of derivative options | (120,717) | (14,754) | (123,207) |
(Increase) decrease in deferred policy acquisition and sales inducement costs, and value of business acquired | (25,594) | 82,897 | 69,176 |
(Increase) decrease in accrued investment income | 3,929 | 4,975 | 9,157 |
(Increase) decrease in reinsurance recoverable | 169,313 | 728 | (7,512) |
(Increase) decrease in cost of reinsurance | 13,154 | 0 | 0 |
(Increase) decrease in other assets | (6,017) | (620) | (5,236) |
Increase (decrease) in liabilities for future policy benefits | 114,873 | 14,138 | 13,758 |
(Decrease) increase in other policyholder liabilities | (4,142) | 10,873 | (21,955) |
(Decrease) increase in Federal income tax liability | 12,739 | (14,156) | 21,580 |
Increase (decrease) in deferred Federal income tax | 3,746 | 20,031 | (25,294) |
Increase (decrease) in funds withheld liability | (212,324) | 0 | 0 |
(Decrease) increase in other liabilities | (22,383) | 3,907 | 876 |
Net cash provided by (used in) operating activities | 276,825 | 373,071 | 329,029 |
Proceeds from sales of: | |||
Debt securities available-for-sale | 1,221,308 | 0 | 87,298 |
Other investments | 38,975 | 9,198 | 30,082 |
Proceeds from maturities, redemptions, and prepayments of: | |||
Debt securities held-to-maturity | 0 | 960,360 | 700,759 |
Debt securities available-for-sale | 1,520,734 | 334,397 | 295,026 |
Debt securities trading | 61,313 | 0 | 0 |
Other investments | 22,597 | 13,715 | 6,263 |
Derivatives, index options | 197,877 | 106,451 | 52,768 |
Purchases of: | |||
Debt securities held-to-maturity | 0 | (544,092) | (257,928) |
Debt securities available-for-sale | (1,382,318) | (297,998) | (187,570) |
Debt securities trading | (1,140,965) | 0 | 0 |
Equity securities | (15,265) | (1,395) | (1,342) |
Derivatives, index options | (47,383) | (62,568) | (77,381) |
Other investments | (57,153) | (52,944) | (7,315) |
Property, equipment, and other productive assets | (9,977) | (12,106) | (2,844) |
Payment to acquire businesses, net of cash acquired | 0 | 0 | (189,121) |
Principal payments on mortgage loans | 28,847 | 14,814 | 47,755 |
Cost of mortgage loans acquired | (183,601) | (80,220) | (121,420) |
(Increase) decrease in policy loans | 2,797 | 5,925 | 2,844 |
Payments For Proceeds From Funds Withheld | (77,191) | 0 | 0 |
Net cash provided by investing activities | 180,595 | 393,537 | 377,874 |
Cash flows from financing activities: | |||
Dividends on common stock | (1,272) | (1,273) | (1,273) |
Deposits to account balances for universal life and annuity contracts | 610,357 | 501,867 | 405,236 |
Return of account balances on universal life and annuity contracts | (932,531) | (939,309) | (989,980) |
Borrowings under line of credit agreement | 0 | 0 | 75,000 |
Principal payments on line of credit borrowings | 0 | 0 | (75,000) |
Principal payments under finance lease obligation | (389) | (378) | 0 |
Net cash provided by (used in) financing activities | (323,835) | (439,093) | (586,017) |
Effect of foreign exchange | (20) | 19 | 663 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 133,565 | 327,534 | 121,549 |
Cash, cash equivalents, and restricted cash at beginning of year | 581,059 | 253,525 | 131,976 |
Cash, cash equivalents, and restricted cash at end of year | 714,624 | 581,059 | 253,525 |
Cash paid during the year for: | |||
Interest | 75 | 75 | 271 |
Income taxes | 30,043 | 13,980 | 37,153 |
Noncash operating activities: | |||
Net deferral and amortization of sales inducements | 4,355 | (12,464) | (17,195) |
Establishment of funds withheld liability (see Note 5) | 0 | 1,697,591 | 0 |
Deferred cost of reinsurance (see Note 5) | 0 | 102,840 | 0 |
Noncash investing activities: | |||
Contingent consideration to acquire businesses | 0 | 0 | 3,700 |
Exchange of debt securities available-for-sale for equity securities | 0 | 0 | 2,452 |
Exchange of debt securities available-for-sale | 0 | 0 | 782 |
Exchange of debt securities trading | 4,800 | 0 | 0 |
Right of use asset obtained in exchange for finance lease liability | $ 1,422 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation National Western Life Insurance Company ("National Western" or "NWLIC") became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI") effective October 1, 2015 under a previously announced holding company reorganization. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. The accompanying Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western, Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). The 2019 results of operations for Ozark National and NIS include their respective business activity subsequent to their acquisition effective January 31, 2019 and all references herein to results for 2019 refer to their eleven month activity February 1, 2019 through December 31, 2019. All significant intercorporate transactions and accounts have been eliminated in consolidation. Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs ("DPAC"), deferred sales inducements ("DSI"), the value of business acquired ("VOBA"), and the cost of reinsurance ("COR"), (4) valuation allowances for deferred tax assets, (5) goodwill, (6) allowances for credit losses and, prior to January 1, 2020, other-than-temporary impairment losses on debt securities, (7) commitments and contingencies, and (8) allowance for credit losses for mortgage loans and real estate. During the year ended December 31, 2019, the Company incorporated accounting estimates for business combinations, value of business acquired, and fair value measurement as a result of its acquisition of Ozark National and NIS. The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2021, 2020 and 2019. Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2021 2020 2019 (In thousands) Other net investment gains $ 16,372 5,677 2,787 Net OTTI losses recognized in earnings — — (7,847) Earnings (loss) before Federal income taxes 16,372 5,677 (5,060) Federal income taxes (benefit) 3,438 1,192 (1,063) Net earnings (loss) $ 12,934 4,485 (3,997) National Western and Ozark National also file financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance and Missouri Department of Commerce and Insurance, respectively, which are significantly different from Consolidated Financial Statements prepared in accordance with GAAP. These differences are described in detail in Note (9) Statutory Information . Certain amounts in the prior year Consolidated Financial Statements have been reclassified to conform to the current year financial statement presentation. Revision of Prior Period Consolidated Financial Statements During the first quarter of 2020, management identified an understatement of an excess benefit reserve on a specific block of policies that dated back to the first quarter of 2004 with the adoption of the Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts (SOP 03-1). Management concluded that this error was not material to previously issued consolidated financial statements and would be corrected through a revision to the comparative consolidated balance sheet presented for the year ended December 31, 2019. The impact of this revision as of December 31, 2019 was an increase to the future policy benefits liability of $15.0 million, a decrease to deferred federal income tax liability of $3.2 million, and a decrease to retained earnings of $11.8 million. Investments Fixed Maturities and Equity Securities Historically, investments in debt securities the Company purchased with the intent to hold to maturity were classified as securities held-to-maturity and were reported at amortized cost (less declines in fair value that were deemed other-than-temporary). Effective December 31, 2020, the Company entered into a funds withheld reinsurance agreement under which certain securities were required to be reclassified from held-to-maturity to available-for-sale given a change in intent with respect to these securities by the reinsurer. Given this occurrence, it was determined that the held-to maturity classification of the other remaining held-to-maturity securities was no longer appropriate. Accordingly, all other debt securities previously classified as held-to-maturity were transferred at their fair value to available-for-sale as of December 31, 2020. Investments in debt securities classified as securities available-for-sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of Stockholders' Equity in Accumulated other comprehensive income. These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. As a result of executing a funds withheld coinsurance agreement at December 31, 2020, the Company implemented accounting policies related to trading debt securities in its financial statements. Trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreement to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Consolidated Financial Statements at their fair values with changes in their values reflected as a component of Net investment income in the Consolidated Statements of Earnings. Since these trading debt securities pertain to investment activities related to coinsurance agreements rather than as an income strategy based on active trading, they are classified as investing activities in the Consolidated Statements of Cash Flows. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. As further disclosed under Accounting Standards and Changes in Accounting in this note, the Company adopted new accounting guidance for credit loss recognition of debt securities in the held-to-maturity category as of January 1, 2020. Under this guidance, the Company employed a cohort cumulative loss rate method in estimating current expected credit losses with respect to its held-to-maturity debt securities. This method applies publicly available industry wide statistics of default incidence by defined segmentations of debt security investments combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. The Company utilized Moody's loss rates by industry type and credit ratings and applied them to each major bond category. These bond categories were further segmented by credit ratings and by maturities of two years and less and more than two years. The Company determines current expected credit losses for available-for-sale debt securities in accordance with FASB ASC Subtopic 326-30 when fair value is less than amortized cost, interest payments are missed and the security is experiencing credit issues. Provisions to and releases from the allowance for credit losses are recorded in net investment income in the Consolidated Statements of Earnings. Previous accounting guidance required the Company to review its portfolio for potential other-than-temporary impairments which would require that affected securities be written down to an adjusted cost basis with the amount of the writedown recorded as part of net realized gains and losses in the Consolidated Statements of Earnings. Under this previous guidance, the Company reviewed its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicated a decline in fair value that was other-than-temporary, the Company’s carrying amount in the investment was reduced to its estimated fair value as an other-than-temporary impairment ("OTTI"). In accordance with GAAP guidance the estimated credit versus non-credit components of the OTTI were bifurcated. The credit component was recorded in earnings and resulted in the establishment of a new cost basis for the security. The non-credit component was reclassified as unrealized loss in Other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considered a number of factors in determining whether the impairment was other-than-temporary. These included, but were not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline had occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performed a security-by-security review in evaluating the need for any other-than-temporary impairments. Although no set formula was used in this process, the investment performance, collateral position, and continued viability of the issuer were significant measures considered. Equity securities, common and non-redeemable preferred stocks are reported at fair value with changes in fair value included in net investment income in the Consolidated Statement of Earnings. Alternative Investments The Company invests in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (i.e. investment funds). The Company does not have a controlling interest and is not the primary beneficiary for any of its alternative investments; accordingly, these investments are accounted for using the equity method of accounting where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect the pro rata ownership percentage of the operating results as indicated by the net asset value in the investment fund financial statements, which can be done on a lag of up to three months when investee information is not received in a timely manner. Alternative investments are reported in other long-term investments in the Consolidated Balance Sheets. The proportionate share of investment fund income is reported as a component of Net investment income in the Consolidated Statements of Earnings. Derivatives Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods, typically one year. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which further reduces the Company's credit exposure. At December 31, 2021 and 2020, the fair value of index options owned by the Company totaled $101.6 million and $132.8 million, respectively. Of these amounts, $54.4 million and $71.0 million represent net unrealized gains on the options held at December 31, 2021 and 2020, respectively. Additionally, effective December 31, 2020, the Company is a party to a coinsurance funds withheld reinsurance agreement under which identified assets are maintained in a funds withheld account. Under terms of the coinsurance funds withheld agreement, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurer creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability on the Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in the Net investment income in the Consolidated Statements of Earnings. The embedded derivative on reinsurance is classified as a Level 2 financial instrument in the fair value hierarchy because its valuation input is the fair value market adjustments on the underlying Level 2 debt securities. See Note (4) Fair Values of Financial Instruments for further details of fair value disclosures. In the Consolidated Statements of Cash Flows, changes in the funds withheld liability are reported in operating activities. Realized gains on funds withheld assets are transferred to the reinsurer and reported as investing activities in the Consolidated Statements of Cash Flows. The value of the embedded derivative at December 31, 2021 and 2020 was $84.7 million and $0.0 million, respectively. Mortgage Loans and Other Long-term Investments Mortgage loans and other long-term investments are primarily stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Mortgage loans made by the reinsurer under the funds withheld reinsurance agreement are reported at fair value. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. As further disclosed under Accounting Standards and Changes in Accounting in this note, effective January 1, 2020, the Company implemented FASB ASU 2016-13, Financial Instruments-Credit Losses , which revises the credit loss recognition criteria for mortgage loans replacing the existing incurred loss recognition model with an expected loss recognition model (“CECL”). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. For mortgage loan investments the Company is using the Weighted Average Remaining Maturity ("WARM") method, which uses an average annual charge-off rate applied to each mortgage loan risk category. The WARM method is also used to calculate the CECL allowance on unfunded mortgage loan commitments. The CECL allowance on unfunded mortgage loan commitments is reported in other liabilities in the Consolidated Balance Sheets, with changes in the CECL allowance related to unfunded commitments recorded through Other operating expenses in the Consolidated Statements of Earnings. Prior to January 1, 2020, impaired loans were those loans where it is probable that all amounts due according to contractual terms of the loan agreement would not be collected. The Company identified these loans through its normal loan review procedures. Impaired loans included: 1) nonaccrual loans, 2) loans which were 90 days or more past due, unless they were well secured and were in the process of collection, and 3) other loans which management believed were impaired. Impaired loans were measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. When the Company had loans considered impaired substantially all were measured at the fair value of the collateral. In limited cases, the Company used other methods to determine the level of impairment of a loan if such loan was not collateral dependent. Mortgage loans were placed on non-accrual status if there were concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans were classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest had been collected or the mortgage loan had been restructured such that the collection of interest was considered likely. Accrued Investment Income The accrual of investment income on invested assets is discontinued when it is determined that it is probable that the income will not be collected. Realized Gains and Losses on Investments Realized gains and losses for securities available-for-sale, securities held-to-maturity, and trading securities are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. After an OTTI write down of fixed maturities due to a credit-only impairment, the cost basis is not adjusted for subsequent recoveries in fair value. For fixed maturities for which a reasonable estimate of future cash flows are available after a write down, the discount or reduced premium recorded, based on the new cost basis, is amortized over the remaining life of the security. Amortization in this instance is computed using the prospective method and the current estimate of the amount and timing of future cash flows. Fair Values Fair values of equity securities are based on quoted market prices in active markets when available. Fair values of fixed maturities are based on market prices in the fixed income markets. Fair values of derivative investments are based on the latest counterparty model market prices. Items not readily marketable are generally based on values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note (4) Fair Values of Financial Instruments for more information on fair value policies, including assumptions and the amount of securities priced using the valuation models. Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. Deferred Policy Acquisition Costs, Deferred Sales Inducements, Value of Business Acquired, and Cost of Reinsurance Deferred policy acquisition costs ("DPAC") include certain costs of successfully acquiring new insurance business, including commissions and other expenses related directly to the production of new business, to the extent recoverable from future policy revenues and gross profits (indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expenses as incurred). Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. These deferred sales inducements ("DSI") are also deferrable to the extent recoverable. For interest sensitive universal life and annuity products, these costs are amortized in relation to the present value of expected gross margins or gross profits on these policies. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred policy acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract are not written off, but instead are carried over to the new contract . Amortization of DPAC and DSI is reviewed each year and adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. The value of insurance in force business acquired ("VOBA") is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policy liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. The Company began performing recoverability testing in 2020 of value business acquired. At December 31, 2020, the Company recorded as an asset on the Consolidated Balance Sheet a deferred Cost of Reinsurance ("COR") amount of $102.8 million associated with the funds withheld reinsurance transaction. This represents the amount of assets transferred at the closing date of the funds withheld agreement (debt securities, policy loans, and cash) in excess of the GAAP liability ceded plus a $48.0 million ceding commission paid to the reinsurer. The COR balance is amortized commensurate with the runoff of the ceded block of funds withheld business and the amortization expense reported in the Consolidated Statements of Earnings. Reinsurance The Company cedes insurance and investment contracts under a coinsurance with funds withheld arrangement, following reinsurance accounting for transactions that provides indemnification against loss or liability relating to insurance risk. To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge the Company's obligations as the primary insurer. Assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets. Under the funds withheld reinsurance agreement, funds withheld assets consist of a segregated portfolio of cash and invested assets which is sufficient to support the current balance of statutory reserves. The fair value of the funds withheld is recorded as a funds withheld liability and any excess or shortfall in relation to statutory reserves is settled periodically. Refer to Note (5) Reinsurance for more information. Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs, furniture and equipment and leasehold improvements, which are reported at cost less allowances for depreciation and amortization. Costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance are expensed. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of software costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Capitalized software, property, and equipment had a carrying value of $165.3 million at December 31, 2021 and $155.9 million at December 31, 2020, and accumulated depreciation and amortization of $84.0 million at December 31, 2021 and $72.6 million at December 31, 2020. Depreciation and amortization expense for capitalized software, furniture and equipment, and leasehold improvements was $13.0 million, $11.9 million, and $10.7 million in 2021, 2020, and 2019, respectively. Other assets also include goodwill at December 31, 2021 and 2020 of $13.9 million related to the excess of the amounts paid to acquire companies over the fair value of other net tangible and intangible assets acquired. It represents the future economic benefits arising from assets acquired and liabilities assumed that could not be individually identified. Goodwill is not amortized but is subject to annual impairment analysis at the same time each year or more frequently if indicators are present. The Company annually reviews its goodwill balance to determine if indicators suggest an impairment may have occurred and would suggest the value has declined below the carrying value of goodwill. Refer to Note (7) Goodwill and Specifically Identifiable Intangible Assets for further information. Other assets at December 31, 2021 and 2020 further include $7.5 million and $8.2 million, respectively, of identifiable intangible assets acquired in a business combination. These intangible assets include trademarks and trade names, internally developed software, and various insurance licenses. Identifiable intangible assets are being amortized using a straight-line method over their estimated useful lives. Future Policy Benefits Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980, and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8.00%, and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as embedded derivatives. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The embedded derivatives are recorded at fair value. The fair value of the embedded derivative component of policy benefit reserves is estimated at each valuation date by (a) projecting policy and contract values and minimum guaranteed values over the expected lives of the policies and contracts and (b) discounting the excess of the projected value amounts at the applicable risk free interest rates adjusted for nonperformance risk related to those liabilities. The proj |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | INVESTMENTS (A) Investment Income The major components of net investment income are as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Gross investment income: Debt and equity securities $ 309,082 373,479 403,372 Mortgage loans 20,155 13,162 12,595 Policy loans 2,667 3,361 3,539 Short-term investments 293 2,160 2,974 Other investment assets 16,321 12,698 13,057 Total investment income 348,518 404,860 435,537 Less investment expenses 2,762 2,412 3,252 Net investment income (excluding derivatives and trading securities) 345,756 402,448 432,285 Index option derivative gain 120,718 14,754 123,207 Embedded derivative on reinsurance 84,725 — — Trading securities market adjustments 11,331 — — Net investment income $ 562,530 417,202 555,492 (B) Mortgage Loans and Real Estate A financing receivable is a contractual right to receive money on demand or on fixed or determinable dates that is recognized as an asset in a company’s statement of financial position. The Company’s mortgage, participation and mezzanine loans on real estate are the only financing receivables included in the Consolidated Balance Sheets. In general, the Company originates loans on high quality, income-producing properties such as shopping centers, freestanding retail stores, office buildings, industrial and sales or service facilities, selected apartment buildings, hotels, and health care facilities. The location of these properties is typically in major metropolitan areas that offer a potential for property value appreciation. Credit and default risk are minimized through strict underwriting guidelines and diversification of underlying property types and geographic locations. In addition to being secured by the property, mortgage loans with leases on the underlying property are often guaranteed by the lease payments. This approach has proven to result in quality mortgage loans with few defaults. Mortgage loan interest income is recognized on an accrual basis with any premium or discount amortized over the life of the loan. Prepayment and late fees are recorded on the date of collection. The Company targets a minimum specified yield on mortgage loan investments determined by reference to currently available debt security instrument yields plus a desired amount of incremental basis points. A low interest rate environment and a competitive marketplace, more recently resulted in fewer loan opportunities being available that met the Company's required rate of return. During 2020, mortgage loan originations were further impeded by the COVID-19 pandemic and its effects upon the commercial real estate market. As stabilization returned to the commercial real estate market, the Company directed resources and effort towards expanding its mortgage loan investment portfolio. Mortgage loans originated by the Company totaled $183.6 million and $80.2 million for the years 2021 and 2020, respectively. Loans in foreclosure, loans considered impaired or loans past due 90 days or more are placed on a non-accrual status. If a mortgage loan is determined to be on non-accrual status, the mortgage loan does not accrue any revenue into the Consolidated Statements of Earnings. The loan is independently monitored and evaluated as to potential impairment or foreclosure. If delinquent payments are made and the loan is brought current, then the Company returns the loan to active status and accrues income accordingly. The Company has no loans past due 90 days which are accruing interest. As a result of the economic climate change induced by the COVID-19 virus, during 2020 various mortgage loan borrowers of the Company requested a temporary forbearance of principal payments on loans in the range of three to nine months. There we re eight loans representing an aggregate principal balance of $29.2 million with borrowers meeting specified criteria of the Com pany that forbearance terms were agreed to. At December 31, 2020, only one of these loans with a principal balance of $4.7 million remained in forbearance. All forbearance loans returned to the terms of the original loan agreements during the first quarter of 2021. Included in the mortgage loan investment balance at December 31, 2021, are three mortgage loan investments made by the reinsurer under the funds withheld reinsurance agreement totaling $8.5 million. Similar to trading debt securities, these loans are reported at fair market values in order to allow the market value fluctuation to be recorded directly in the Consolidated Statements of Earnings and to offset the embedded derivative liability change due to market value fluctuations. The Company held net investments in mortgage loans, after allowances for credit losses, totaling $487.3 million and $332.5 million at December 31, 2021 and 2020, respectively. The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 237,644 48.5 $ 201,501 60.1 East North Central 61,397 12.6 16,478 4.9 South Atlantic 81,847 16.7 51,857 15.5 East South Central 20,069 4.1 27,590 8.2 West North Central 12,213 2.5 12,423 3.7 Pacific 13,800 2.8 6,228 1.9 Middle Atlantic 36,296 7.4 1,975 0.6 Mountain 26,613 5.4 16,955 5.1 Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 164,895 33.7 $ 92,173 27.5 Office 142,824 29.2 111,735 33.3 Storage facility 73,401 15.0 53,591 16.0 Industrial 34,212 7.0 29,131 8.7 Hotel 23,748 4.8 8,372 2.5 Land/lots 4,597 0.9 4,680 1.4 Apartments 38,920 7.9 29,743 8.9 Residential 1,905 0.4 — — All other 5,377 1.1 5,582 1.7 Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,806 20.6 $ 66,635 19.9 50% to 60% 128,191 26.2 64,536 19.3 60% to 70% 202,670 41.3 153,414 45.8 70% to 80% 58,212 11.9 50,422 15.0 80% and above — — — — Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. Market value adjustments are recorded for mortgage loan investments for which the Company has elected to measure the loan at fair value. During the year ended December 31, 2021, the investment manager associated with the funds withheld coinsurance agreement arrangement executed several mortgage loan investments for the funds withheld assets under the reinsurance treaty. The Company has elected fair value measurement for these mortgage loans, which are included in the funds withheld portfolio. All mortgage loans are analyzed quarterly in order to monitor the financial quality of these assets. Based on ongoing monitoring, mortgage loans with a likelihood of becoming delinquent are identified and placed on an internal “watch list.” Among the criteria that would indicate a potential problem include: major tenant vacancies or bankruptcies, late payments, and loan relief/restructuring requests. The mortgage loan portfolio is analyzed for the need for a valuation allowance on any loan that is on the internal watch list, in the process of foreclosure, or that currently has a valuation allowance. Effective January 1, 2020, the Company implemented FASB ASU 2016-13, Financial Instruments-Credit Losses , which revised the credit loss criteria for certain financial assets. The guidance replaced the existing incurred loss recognition model with an expected loss recognition model ("CECL"). Previously, mortgage loans were considered impaired when, based on current information and events, it was probable that the Company would be unable to collect all amounts due according to the contractual terms of the loan agreement. When it was determined that a loan was impaired, a loss was recognized for the difference between the carrying amount of the mortgage loan and the estimated value reduced by the cost to sell. Estimated value was typically based on the loan's observable market price or the fair value of the collateral less cost to sell. The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of financial assets at the amount expected to be collected. For mortgage loan investments the Company employed the Weighted Average Remaining Maturity ("WARM") method in estimating current expected losses with respect to mortgage loan investments as of January 1, 2020 and each succeeding calendar quarter-end thereafter. The WARM method applies publicly available data of default incidence of commercial real estate properties by several defined segmentations combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. Under this new accounting guidance, at January 1, 2020 a balance of $1.2 million was recorded for mortgage loan investments which incorporated the previous year-end balance under the prior accounting method. The adjustment resulted in a charge to retained earnings as a change in accounting, net of tax, of $0.4 million. Subsequent changes in the allowance for current expected credit losses are reported in net investment income in the Consolidated Statements of Earnings. The following table represents the mortgage loan allowance for credit losses. Years Ended December 31, 2021 2020 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 2,486 675 Impact of adoption of new accounting guidance — 504 Provision during the period 501 1,307 Releases — — Balance, end of period $ 2,987 2,486 The Company does not recognize interest income on loans past due 90 days or more. The Company had no mortgage loans past due six months or more at December 31, 2021, 2020 and 2019. There was no interest income not recognized in 2021, 2020 or 2019. The contractual maturities of mortgage loan principal balances at December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 13,422 2.7 $ 4,208 1.3 Due after one year through five years 127,766 26.1 60,826 18.1 Due after five years through ten years 222,444 45.4 154,787 46.1 Due after ten years through fifteen years 115,313 23.5 107,662 32.1 Due after fifteen years 11,280 2.3 7,977 2.4 Totals $ 490,225 100.0 $ 335,460 100.0 The Company's direct investments in real estate investments are not a significant portion of its total investment portfolio. These investments totaled approximately $28.6 million at December 31, 2021 and $33.8 million at December 31, 2020, and consist primarily of income-producing properties which are being operated by a wholly owned subsidiary of National Western. Included in the amount at December 31, 2020 was a surface parking property owned by Ozark National in Kansas City, Missouri which it contracted out for rent. The value of this real estate investment was appraised at $4.3 million at January 31, 2019 as part of the purchase accounting done as of that date. During 2021, Ozark National sold its home office properties, including the surface parking property. The Company recognized operating income on its direct investments in real estate of approximately $2.9 million, $2.9 million and $2.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. The Company had real estate investments that were non-income producing for the preceding twelve months totaling $0.1 million, $0.4 million, and $0.4 million at December 31, 2021, 2020 and 2019, respectively. Net real estate loss for the year ended December 31, 2021 was related to the Ozark National sale of its home office, parking garage and parking lot all located in Kansas City, Missouri at a net realized loss of $1.4 million. Net real estate gains for the year ended December 31, 2020 were $2.7 million, and related to the sale of a property located in Travis County Texas. Included in net realized investment gains during 2019 are the sale of the Company's former home office facility in Austin, Texas at a gain of $3.2 million and the sale of the Company's two nursing home facilities at a net gain of $3.7 million. (C) Debt Securities The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses (In thousands) Debt securities: U.S. Agencies $ 43,472 1,071 — 44,543 — U.S. Treasury 2,469 21 — 2,490 — States and political subdivisions 479,148 27,733 (921) 505,960 — Foreign governments 62,979 293 (881) 62,391 — Public utilities 745,359 39,919 (309) 784,969 — Corporate 6,322,471 391,287 (12,805) 6,700,953 — Commercial mortgage-backed 27,016 741 — 27,757 — Residential mortgage-backed 530,702 18,921 — 549,623 — Asset-backed 390,634 2,123 (2,497) 390,260 — Totals $ 8,604,250 482,109 (17,413) 9,068,946 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2020. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Agencies $ 72,945 $ 2,496 $ — 75,441 U.S. Treasury 3,152 126 $ — 3,278 States and political subdivisions $ 528,266 37,909 (86) 566,089 Foreign governments 11,115 334 — 11,449 Public utilities 831,990 77,920 — 909,910 Corporate 7,376,104 727,470 (4,601) 8,098,973 Commercial mortgage-backed 30,108 1,363 — 31,471 Residential mortgage-backed 902,974 50,970 (156) 953,788 Asset-backed 117,889 2,635 — 120,524 Totals $ 9,874,543 $ 901,223 $ (4,843) $ 10,770,923 The Company's investment policy is to invest in high quality securities with the primary intention of holding these securities until the stated maturity. As such, the portfolio has exposure to interest rate risk, which is the risk that funds are invested today at a market interest rate and in the future interest rates rise causing the current market price on that investment to be lower. This risk is not a significant factor relative to the Company's buy and hold portfolio, since the intention is to receive the stated interest rate and principal at maturity to match liability requirements to policyholders. The Company manages these risks, for example, by purchasing mortgage-backed securities types that have more predictable cash flow patterns. The Company held below investment grade debt securities totaling $153.0 million and $303.5 million at December 31, 2021 and 2020, respectively. These amounts represent 1.4% and 2.7% of total invested assets for December 31, 2021 and 2020, respectively. Below investment grade holdings are the result of credit rating downgrades subsequent to purchase, as the Company only invests in high quality securities with ratings quoted as investment grade. Below investment grade securities generally have greater default risk than higher rated corporate debt. The issuers of these securities are usually more sensitive to adverse industry or economic conditions than are investment grade issuers. For the years ended December 31, 2021, December 31, 2020 and 2019, the Company recorded net realized gains totaling $15.0 million, $21.1 million and $6.2 million, respectively, related to the disposition of investment securities and real estate. Debt securities balances at December 31, 2021 and 2020 include Ozark National holdings of $823.0 million and $811.6 million in available-for-sale, respectively. As part of the acquisition of Ozark National effective January 31, 2019 the Company employed purchase accounting procedures in accordance with GAAP which revalued the acquired investment portfolio to their fair values as of the date of the acquisition. These fair values became the book values for Ozark National from that point going forward. The following table shows the gross unrealized losses and fair values of the Company's available-for-sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2021. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: States and political subdivisions $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate bonds 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Asset-backed 188,960 (2,497) — — 188,960 (2,497) Total $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2020. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Debt securities: States and political subdivisions $ — — 1,762 (86) 1,762 (86) Public utilities — — — — — — Corporate bonds 174,252 (3,836) 36,152 (765) 210,404 (4,601) Residential mortgage-backed — — 500 (156) 500 (156) Total $ 174,252 (3,836) 38,414 (1,007) 212,666 (4,843) Unrealized losses increased in 2021 from 2020 amounts primarily as a result of an increase in market interest rate levels during 2021. The amortized cost and fair value of investments in debt securities at December 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 256,576 258,754 Due after 1 year through 5 years 3,198,107 3,353,853 Due after 5 years through 10 years 2,205,479 2,355,857 Due after 10 years 1,995,736 2,132,842 7,655,898 8,101,306 Mortgage and asset-backed securities 948,352 967,640 Total before allowance for credit losses 8,604,250 9,068,946 Allowance for credit losses — — Total $ 8,604,250 9,068,946 The Company uses the specific identification method in computing realized gains and losses. The table below presents realized gains and losses for the periods indicated. Years Ended December 31, 2021 2020 2019 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 16,377 5,677 3,798 Realized losses on disposal (5) — (1,011) Held-to-maturity debt securities: Realized gains on redemption — 12,734 4,390 Realized losses on redemption — (1) — Real estate (1,421) 2,661 6,911 Mortgage loans — — — Other (1) — — Totals $ 14,950 21,071 14,088 Disposals in the held-to-maturity category during the year ended December 31, 2020 represent calls initiated by the credit issuer of the debt security. At year-end 2020, the Company transferred all of its held-to-maturity debt securities to the available-for-sale category as a result of entering into a funds withheld reinsurance agreement effective December 31, 2020. The Company's policy was to initiate disposals of debt securities in the held-to-maturity category only in instances in which the credit status of the issuer came into question and the realization of all or a significant portion of the investment principal of the holding was deemed to be in jeopardy. Except for the total U.S. government agency mortgage-backed securities held, the Company had no other investments in any entity in excess of 10.0% of stockholders' equity at December 31, 2021 or 2020. As noted previously in this Note (2), the Company implemented accounting guidance as of January 1, 2020 for expected credit loss recognition of certain financial assets, which included debt securities classified in the held-to-maturity category. The Company employed a cohort cumulative loss rate method in estimating current expected credit losses ("CECL") with respect to its held-to-maturity debt securities. This method applied publicly available industry wide statistics of default incidence by defined segmentations of debt security investments combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. The Company utilized Moody's loss rates by industry type and credit ratings and applied them to each major bond category. These bond categories were further segmented by credit ratings and by maturities of two years and less and more than two years. The following table presents the allowance for credit losses for years ended December 31, 2021 and 2020. December 31, 2021 2020 2021 2020 Debt Securities Held-to-Maturity Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — (3,334) — — Balance, end of period $ — — — — Since the Company reclassified all held-to-maturity debt securities to available-for-sale as of December 31, 2020, all provisions to the allowance for credit losses in 2020 were released as of the 2020 year-end. The Company determines current expected credit losses for available-for-sale debt securities in accordance with FASB ASC Subtopic 326-30 when fair value is less than amortized cost, interest payments are missed and the security is experiencing credit issues. The Company performed additional analyses on certain available-for-sale securities whose market values were negatively impacted by the change in the economic environment precipitated by the COVID-19 pandemic crisis. Based on its reviews, the Company determined none of these investments required an allowance for credit loss at December 31, 2021 or December 31, 2020. Under the previous guidance, debt securities were not considered to be other-than-temporarily impaired when a decline in market value was attributable to factors such as market volatility, liquidity, spread widening and credit quality in which it was anticipated that a recovery of all amounts due under the contractual terms of the security would occur and the Company had the intent and ability to hold the security until recovery or maturity. There was a $7.8 million other-than-temporary impairment recorded on a single debt security during the year ended December 31, 2019. The Company's operating procedures include monitoring the investment portfolio on an ongoing basis for any changes in issuer facts and circumstances that might lead to future need for a credit loss allowance. (D) Net Unrealized Gains (Losses) Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2021 and 2020, are as follows: December 31, 2021 2020 (In thousands) Gross unrealized gains $ 482,109 901,222 Gross unrealized losses (17,413) (4,843) Adjustments for: Deferred policy acquisition costs and sales inducements (178,340) (366,327) Deferred Federal income tax expense (60,135) (111,311) Net unrealized gains on investment securities $ 226,221 418,741 (E) Transfer of Securities In 2020, the Company reassessed its classification of its held-to-maturity portfolio as a result of a funds withheld coinsurance agreement entered into with a third party reinsurer. A portion of the transferred debt securities under the reinsurance agreement were added to a funds withheld account for which the reinsurer would provide investment management services and did not intend to hold the securities until maturity. The Company determined that its continued classification of held-to-maturity debt securities was not appropriate. As a result, the entire portfolio of debt securities held-to-maturity with a fair value of $7.3 billion and amortized value of $6.7 billion were transferred into the available-for-sale portfolio at December 31, 2020. The unrealized gains on securities of $0.6 billion were reclassified into accumulated other comprehensive income at December 31, 2020. There were no transfers in 2021 or 2019 between the held-to-maturity, available-for-sale, or trading portfolios. |
Derivative Investments
Derivative Investments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Investments | DERIVATIVE INVESTMENTS Fixed-index products provide traditional fixed annuities and universal life contracts with the option to have credited interest rates linked in part to an underlying equity index or a combination of equity indices. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting in which future policy benefits are recorded as discounted debt instruments and accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its fixed-index annuity and life products. The index options act as hedges to match closely the returns on the underlying index or indices. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index or indices. As a result, changes to policyholders' liabilities are substantially offset by changes in the value of the options. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods. Upon maturity or expiration of the options, cash may be paid to the Company depending on the performance of the underlying index or indices and terms of the contract. The Company does not elect hedge accounting relative to these derivative instruments. The index options are reported at fair value in the accompanying Consolidated Financial Statements. The changes in the values of the index options and the changes in the policyholder liabilities are both reflected in the Consolidated Statements of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statements of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statements of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any of its counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which may further reduce the Company's credit exposure. Effective December 31, 2020, the Company entered into a coinsurance funds withheld reinsurance agreement under which identified assets are maintained in a funds withheld account. While the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurer creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly, the Company is required to bifurcate the embedded derivative from the host contract in accordance with GAAP. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability balance on the Consolidated Balance Sheets with changes in the embedded derivative on reinsurance reported in Net investment income (loss) in the Consolidated Statements of Earnings. Changes in the funds withheld liability are reported in operating activities in the Consolidated Statements of Cash Flows. The tables below present the fair value of derivative instruments as of December 31, 2021 and 2020. December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 101,622 Fixed-index products Universal Life and Annuity Contracts $ 142,761 Embedded derivative on reinsurance contract Funds Withheld Liability (84,725) Total $ 101,622 $ 58,036 December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 132,821 Fixed-index products Universal Life and Annuity Contracts $ 161,351 Total $ 132,821 $ 161,351 The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2021, 2020 and 2019. Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2021 2020 2019 (In thousands) Equity index options Net investment income $ 120,718 14,754 123,207 Fixed-index products Universal life and annuity contract interest (133,327) (44,970) (91,424) Embedded derivative on reinsurance contract Net investment income 84,725 — — $ 72,116 (30,216) 31,783 The embedded derivative liability on fixed-index products, the change of which is recorded in universal life and annuity contract interest in the Consolidated Statements of Earnings, includes projected interest credits that are offset by the expected collectability by the Company of asset management fees on fixed-index products. The anticipated asset management fees assumed to be collected increases or decreases based upon the most recent performance of index options and adds to or reduces the offset applied to the embedded derivative liability (increasing or decreasing contract interest expense). In the years ended December 31, 2021, 2020, and 2019, the change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense by $6.5 million, $34.4 million, and $(33.6) million, respectively. During 2020, the Company changed its budget for purchasing these options to match the collection of asset management fees with the payoff from out-of-the-money options, thereby removing the option premium previously being paid for the probability or expectation of collecting asset management fees ("out-of-the-money" hedging). During 2021, the remaining one-year options purchased under the prior method expired and have been replaced by out-of-the-money hedges, Accordingly, the embedded derivative liability component due to the projected collectability of asset management fees no longer exists. |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments | FAIR VALUES OF FINANCIAL INSTRUMENTS For financial instruments the FASB provides guidance which defines fair value, establishes a framework for measuring fair value under GAAP, and requires additional disclosures about fair value measurements. In compliance with this GAAP guidance, the Company has categorized its financial instruments, based on the priority of the inputs to the valuation technique, into a three level hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities ("Level 1") and the lowest priority to unobservable inputs ("Level 3"). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded at fair value on the Consolidated Balance Sheets are categorized as follows: Level 1: Fair value is based on unadjusted quoted prices in active markets that are accessible to the Company for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. These generally provide the most reliable evidence and are used to measure fair value whenever available. The Company's Level 1 assets are equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets. Level 2: Fair value is based upon significant inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable for substantially the full term of the asset or liability through corroboration with observable market data as of the reporting date. Level 2 inputs include quoted market prices in active markets for similar assets and liabilities, quoted market prices in markets that are not active for identical or similar assets or liabilities, model-derived valuations whose inputs are observable or whose significant value drivers are observable and other observable inputs. The Company’s Level 2 assets include fixed maturity debt securities (corporate and private bonds, government or agency securities, asset-backed and mortgage-backed securities). The Company's Level 2 liabilities include the embedded derivative on reinsurance. Valuations are generally obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Level 3: Fair value is based on significant unobservable inputs which reflect the entity’s or third party pricing service’s assumptions about the assumptions market participants would use in pricing an asset or liability. The Company’s Level 3 assets are debt securities available-for-sale, trading securities, over-the-counter derivative contracts and mortgage loans. The Company’s Level 3 liabilities consist of share-based compensation obligations and certain equity-index product-related embedded derivatives. Valuations are estimated based on non-binding broker prices or internally developed valuation models or methodologies, discounted cash flow models and other similar techniques. The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (b) (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 10,770,923 — 10,770,923 — Equity securities 17,744 17,744 — — Derivatives, index options 132,821 — — 132,821 Total assets $ 10,921,488 17,744 10,770,923 132,821 Policyholder account balances (a) $ 161,351 — — 161,351 Other liabilities (c) 6,202 — — 6,202 Total liabilities $ 167,553 — — 167,553 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. (c) Represents the liability for share-based compensation. The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. December 31, 2021 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2021 $ — — 132,821 — 132,821 Total realized and unrealized gains (losses): Included in net earnings — 757 120,717 412 121,886 Included in other comprehensive income 876 — — — 876 Purchases, sales, issuances and settlements, net: Purchases 245,456 75,265 47,203 8,103 376,027 Sales — — — — — Issuances — — — — — Settlements (13,031) (1,200) (199,119) (46) (213,396) Transfers into (out of) Level 3 93,661 — — — 93,661 Balance at end of period $ 326,962 74,822 101,622 8,469 511,875 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — 757 54,420 412 55,589 Benefits and expenses — — — — — Total $ — 757 54,420 412 55,589 December 31, 2021 Other Liabilities Policyholder Account Balances Share-based Comp Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 133,326 5,581 138,907 Included in other comprehensive income — — — Purchases, sales, issuances and settlements, net: Purchases 47,203 — 47,203 Sales — — — Issuances — 182 182 Settlements (199,119) (4,096) (203,215) Transfers into (out of) Level 3 — — — Balance at end of period $ 142,761 7,869 150,630 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — — — Benefits and expenses 54,420 5,581 60,001 Total $ 54,420 5,581 60,001 December 31, 2020 Assets Other Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Share-based Comp Contingent Consideration Total Other Liabilities (In thousands) Beginning balance, January 1, 2020 $ 157,588 157,588 155,902 11,225 4,076 171,203 Total realized and unrealized gains (losses): Included in net earnings 14,754 14,754 44,970 (2,350) (4,076) 38,544 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 61,837 61,837 61,837 — — 61,837 Sales — — — — — — Issuances — — — 164 — 164 Settlements (101,358) (101,358) (101,358) (2,837) — (104,195) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 132,821 132,821 161,351 6,202 — 167,553 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 70,984 70,984 — — — — Benefits and expenses — — 70,984 (2,350) (4,076) 64,558 Total $ 70,984 70,984 70,984 (2,350) (4,076) 64,558 The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 113,268 Discounted cash flow Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flow Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 132,821 Broker prices Implied volatility 12.96% - 53.69% (20.70%) Total assets $ 132,821 Liabilities: Policyholder account balances $ 161,351 Deterministic cash flow model Projected option cost 0.0% - 45.04% (3.27%) Share based compensation 6,202 Black-Scholes model Expected term 1.0 to 9.9 years Expected volatility 33.47% Total liabilities $ 167,553 The tables above exclude certain securities for which fair values are obtained and unadjusted from third party vendors. Realized gains (losses) on debt securities are reported in the Consolidated Statements of Earnings as net investment gains (losses) with liabilities reported as expenses. Unrealized gains (losses) on available-for-sale debt securities are reported as Other comprehensive income (loss) within the stockholders’ equity section of the Consolidated Balance Sheets. Unrealized gains (losses) on trading debt securities are reported in the Consolidated Statements of Earnings as Net investment income. The fair value hierarchy classifications are reviewed each reporting period. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. Reclassifications are reported as transfers into and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. During the fourth quarter of the year ended December 31, 2021, private placement and alternative structured securities included in debt securities available-for-sale were reclassified from Level 2 into Level 3 due to the unobservable inputs now included in their valuation. GAAP defines fair value, establishes a framework for measuring fair value and requires additional disclosures about fair value measurements. Fair value is based on an exit price, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The objective of a fair value measurement is to determine that price for each financial instrument at each measurement date. GAAP also establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a variety of factors including the type of instrument and the characteristics of instruments. Financial instruments with readily available active quoted prices or those for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. It is the Company’s policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measures. The following methods and assumptions were used in estimating the fair value of financial instruments and liabilities during the periods presented in the Consolidated Financial Statements. Fixed maturity securities. Fair values for debt securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services with any adjustments based upon observable data. In the cases where prices are unavailable for these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Equity securities. Fair values for equity securities are based upon quoted market prices, where available. For equity securities that are not actively traded, estimated values are based on values of comparable issues or audited financial statements of the issuer. Cash and cash equivalents. The carrying amounts reported in the Consolidated Balance Sheets for these instruments approximate their fair values due to the relatively short time between the purchase of the instrument and its expected repayment or maturity. Mortgage and other loans. The fair values of performing mortgage and other loans are estimated by discounting scheduled cash flows through the scheduled maturities of the loans, using interest rates currently being offered for similar loans to borrowers with similar credit ratings. Fair values for significant nonperforming loans are based on recent internal or external appraisals. If appraisals are not available, estimated cash flows are discounted using a rate commensurate with the risk associated with the estimated cash flows. Assumptions regarding credit risk, cash flows, and discount rates are judgmentally determined using available market information and specific borrower information. Policy Loans. Policy loans with fixed interest rates are classified within Level 3. The estimated fair values for these loans are determined using a discounted cash flow model applied to groups of similar policy loans determined by the nature of the underlying insurance liabilities. Cash flow estimates are developed by applying a weighted-average interest rate to the outstanding principal balance of the respective group of policy loans and an estimated average maturity. These cash flows are discounted using current risk-free interest rates with no adjustment for borrower credit risk as these loans are collateralized by the cash surrender value of the underlying insurance policy. Derivatives. Fair values for index (call) options are based on counterparty market prices. The counterparties use market standard valuation methodologies incorporating market inputs for volatility and risk free interest rates in arriving at a fair value for each option contract. Prices are monitored for reasonableness by the Company using analytical tools. There are no performance obligations related to the call options purchased to hedge the Company’s fixed-index life and annuity policy liabilities. Fair values for embedded derivatives on reinsurance contracts are classified consistently with the underlying assets withheld under coinsurance funds withheld agreements, which were Level 2 fixed maturity securities. Valuations are obtained from third party pricing services for identical or comparable assets or determined through use of valuation methodologies using observable market inputs. Life interest in Libbie Shearn Moody Trust. The fair value of the life interest asset is determined annually based on assumptions as to future distributions from the Trust over the life expectancy of Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI. These estimated cash flows are discounted at a rate consistent with uncertainties relating to the amount and timing of future cash distributions subject to the maximum amount to be received by the Company from life insurance proceeds in the event of Mr. Moody's death. The carrying value or cost basis of the life interest asset is amortized ratably over the remaining expected life of Mr. Moody, updated for changes in expected mortality. Annuity and supplemental contracts. Fair values for the Company's insurance contracts other than annuity contracts are not required to be disclosed. This includes the Company's traditional and universal life products. Fair values for immediate annuities without mortality features are based on the discounted future estimated cash flows using current market interest rates for similar maturities. Fair values for deferred annuities, including fixed-index annuities, are determined using estimated projected future cash flows discounted at the rate that would be required to transfer the liability in an orderly transaction. The fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance and annuity contracts. Contingent consideration. The fair value of contingent consideration in the acquisition of businesses is valued using a probabilistic method that includes a discounted projection of renewal premiums. The Company utilizes independent third-party pricing services to determine the majority of its fair values of investment securities. The independent pricing services provide quoted market prices when available or otherwise incorporate a variety of observable market data in their valuation techniques including reported trading prices, broker-dealer quotes, bids and offers, benchmark securities, benchmark yields, credit ratings, and other reference data. The Company reviews prices received from service providers for unusual fluctuations to ensure that the prices represent a reasonable estimate of fair value but generally accepts the price identified from the primary pricing service. When quoted market prices in active markets are unavailable, the Company determines fair values using various valuation techniques and models based on a range of observable market inputs including pricing models, quoted market price of publicly traded securities with similar duration and yield, time value, yield curve, prepayment speeds, default rates and discounted cash flow. In most cases, these estimates are determined based on independent third party valuation information, and the amounts are disclosed in Level 2 of the fair value hierarchy. Generally, the Company obtains a single price or quote per instrument from independent third parties to assist in establishing the fair value of these investments. Fair value measurements for investment securities where there exists limited or no observable data are calculated using the Company’s own estimates based on current interest rates, credit spreads, liquidity premium or discount, the economic and competitive environment, unique characteristics of the security and other pertinent factors. These estimates are derived a number of ways including, but not limited to, pricing provided by brokers where the price indicates reliability as to value, fair values of comparable securities incorporating a spread adjustment (for maturity differences, credit quality, liquidity, and collateralization), discounted cash flow models and margin spreads, bond yield curves, and observable market prices and exchange transaction information not provided by external pricing services. The resulting prices may not be realized in an actual sale or immediate settlement and there may be inherent weaknesses in any calculation technique. In addition, changes in underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the results of current or future values. The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 8,955,678 — 8,741,984 213,694 Priced internally 113,268 — — 113,268 Subtotal 9,068,946 — 8,741,984 326,962 Debt securities, trading: Priced by third-party vendors 1,077,438 — 1,002,616 74,822 Priced internally — — — — Subtotal 1,077,438 — 1,002,616 74,822 Equity securities: Priced by third-party vendors 28,217 23,795 4,422 — Priced internally — — — — Subtotal 28,217 23,795 4,422 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 8,469 — — 8,469 Subtotal 8,469 — — 8,469 Derivatives, index options: Priced by third-party vendors 101,622 — — 101,622 Priced internally — — — — Subtotal 101,622 — — 101,622 Total $ 10,284,692 23,795 9,749,022 511,875 Percent of total 100.0 % 0.2 % 94.8 % 5.0 % The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 December 31, 2020 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 10,770,923 10,770,923 — 10,770,923 — Cash and cash equivalents 581,059 581,059 581,059 — — Mortgage loans 332,521 348,175 — — 348,175 Real Estate 33,783 48,577 — — 48,577 Policy loans 74,083 121,260 — — 121,260 Other loans 23,396 23,691 — — 23,691 Derivatives, index options 132,821 132,821 — — 132,821 Equity Securities 17,744 17,744 17,744 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 22,580 — — 22,580 LIABILITIES Deferred annuity contracts $ 6,662,730 5,192,663 — — 5,192,663 Immediate annuity and supplemental contracts 412,526 467,538 — — 467,538 Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2021 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | REINSURANCENational Western reinsures the risk on any one life in excess of $500,000. Total life insurance in force was $15.0 billion and $15.9 billion at December 31, 2021 and 2020, respectively. Of these amounts, life insurance in force totaling $3.3 billion and $3.5 billion was ceded to reinsurance companies on a yearly renewable term basis at December 31, 2021 and 2020, respectively. In accordance with these reinsurance contracts, reinsurance receivables, including amounts related to claims incurred but not reported and liabilities for future policy benefits, totaled $31.6 million and $8.6 million at December 31, 2021 and 2020, respectively. Premiums and contract revenues were reduced by $22.0 million, $21.0 million and $21.1 million for reinsurance premiums ceded during 2021, 2020 and 2019, respectively. Benefit expenses were reduced by $44.2 million, $8.4 million and $22.0 million, for reinsurance recoveries during 2021, 2020 and 2019, respectively. In addition to the above, on December 31, 2020, National Western entered into a Funds Withheld Coinsurance Agreement ("FWC Agreement") with Prosperity Life Assurance Limited ("Prosperity"), an unauthorized reinsurer organized under the Laws of Bermuda. Under the FWC Agreement, National Western ceded, on a coinsurance with funds withheld basis, a 100% quota share of contractual statutory reserve liabilities approximating $1.7 billion pertaining to a group of in force fixed rate and payout annuity contracts issued by the Company on or before December 31, 2020, and paid to Prosperity a ceding commission of $48.0 million. At December 31, 2020, the Company held a reinsurance recoverable of $1.7 billion under the Agreement. The annuity statutory reserve liabilities that have been ceded to Prosperity are secured by the funds withheld assets and a comfort trust established by Prosperity under which National Western is the sole beneficiary. The funds withheld assets and the assets in the trust are required to remain at a value prescribed under the FWC Agreement which is sufficient to support the current balance of policy benefit liabilities of the ceded business on a statutory basis. If the value of the funds withheld assets and the comfort trust account assets were ever to be less than the prescribed amount under the FWC Agreement, Prosperity is required to deposit funds into the trust for the amount of any shortfall. At December 31, 2021, the current balance of policy benefit liabilities ceded on a statutory basis was $1.5 billion. At December 31, 2020, the Company recorded as an asset on the Consolidated Balance Sheet a deferred cost of reinsurance amount of $102.8 million associated with the funds withheld reinsurance transaction. This represents the amount of assets transferred at the closing date of the FWC Agreement (debt securities, policy loans, and cash) in excess of the GAAP liability ceded to Prosperity. This balance is amortized as a component of benefits and expenses commensurate with the runoff of the ceded block of funds withheld business. Amortization expense for the year ended December 31, 2021 was $13.2 million. Ozark National generally reinsures the risk on any one life in excess of $200,000. Total life insurance in force was $5.9 billion and $6.0 billion at December 31, 2021 and 2020, respectively. Of this amount, life insurance in force totaling $0.5 billion and $0.5 billion was ceded to reinsurance companies at December 31, 2021 and 2020, respectively. In accordance with the reinsurance contracts, reinsurance receivables, including amounts related to claims incurred but not reported and liabilities for future policy benefits, totaled $32.4 million and $33.1 million at December 31, 2021 and 2020, respectively. Premiums and contract revenues were reduced by $2.8 million and $2.7 million for reinsurance premiums ceded during 2021 and 2020, respectively. Benefit expenses were reduced by $2.4 million and $2.6 million for reinsurance recoveries during 2021 and 2020, respectively. A contingent liability exists with respect to reinsurance, as the Company remains liable if the reinsurance companies are unable to perform and meet their obligations under the existing agreements. The Company does not assume reinsurance but Ozark National maintains a closed block of assumed reinsurance. As discussed in Note (1) Summary of Significant Accounting Policies , the Company adopted ASU 2016-13 pertaining to the recognition and measurement of credit losses on most financial assets. For a reinsurance agreement to qualify for reinsurance accounting, it must meet certain risk transfer conditions that include the possibility of financial loss by the assuming reinsurer. The Company records, among other items, amounts recoverable under reinsurance agreements which is a financial asset subject to the credit loss requirements of ASU 2016-13. The Company's credit loss analysis included historical loss information, historical credit rating data, and existing collateral arrangements to estimate expected credit losses over the life of the reinsurance recoverable assets and determined that an allowance was not required at December 31, 2021 or 2020. |
Deferred Transaction Costs
Deferred Transaction Costs | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Deferred Transaction Costs | DEFERRED TRANSACTION COSTS Deferred transaction costs include deferred policy acquisition costs (DPAC), deferred sales inducements (DSI), value of business acquired (VOBA), and cost of reinsurance (COR). A summary of information related to DPAC is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 382,080 723,972 841,704 Deferrals 77,306 69,857 64,824 Amortization, net of interest: Amortization, excluding unlocking, net of interest (84,349) (107,917) (117,748) Unlocking 36,510 (22,358) 8,643 Adjustments related to unrealized gains (losses) 158,292 (261,186) (73,451) Reinsurance — (20,288) — Balance, end of year $ 569,839 382,080 723,972 A summary of information related to DSI is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 43,845 104,359 133,714 Deferrals 18,118 10,344 3,160 Amortization, net of interest: Amortization, excluding unlocking, net of interest (14,755) (18,363) (19,714) Unlocking 993 (4,445) (641) Adjustments related to unrealized gains (losses) 29,935 (43,557) (12,160) Reinsurance — (4,493) — Balance, end of year $ 78,136 43,845 104,359 A summary of information related to VOBA is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 162,968 138,071 — Business acquired — — 145,768 Other increase — 35,125 — Amortization: Amortization, excluding unlocking (8,469) (10,228) (7,697) Balance as of end of year $ 154,499 162,968 138,071 During the year ended December 31, 2020, the cash value of certain acquired reserves was increased which resulted in a commensurate increase in both the traditional life reserve liability and the related VOBA balance reported on the Consolidated Balance Sheets. Estimated future amortization of VOBA, net of interest (in thousands), as of December 31, 2021, is as follows: 2022 $ 8,075 2023 7,757 2024 7,464 2025 7,289 2026 7,162 A summary of information related to COR is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 102,840 — — Additions — 102,840 — Amortization (13,154) — — Balance as of end of year $ 89,686 102,840 — |
Goodwill and Specifically Ident
Goodwill and Specifically Identifiable Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Specifically Identifiable Intangible Assets | GOODWILL AND SPECIFICALLY IDENTIFIABLE INTANGIBLE ASSETS Goodwill The changes in the carrying amount of goodwill were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 — Goodwill resulting from business acquisition — — 13,864 Gross goodwill, before impairments 13,864 13,864 13,864 Accumulated impairment as of beginning of year — — — Current year impairments — — — Net goodwill as of end of year $ 13,864 13,864 13,864 Due to the severe change in economic climate during 2021 and 2020 as a result of the COVID-19 pandemic, the Company periodically evaluated the goodwill balance for potential impairment and determined that there was sufficient evidence to support not impairing the balance. Identifiable Intangible Assets The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows. December 31, 2021 December 31, 2020 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (545) 2,800 (358) Internally developed software 7 3,800 (1,583) 3,800 (1,040) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,128) 9,600 (1,398) The value of trademarks was estimated using the relief from royalty method, based on the assumption that in lieu of ownership, an organization would be willing to pay a royalty in order to receive the related benefits of using the brand. The value of insurance licenses was estimated using the market approach to value, based on values paid for licenses in recent shell company transactions. The value of internally developed software was estimated using the replacement cost method. Trademarks, trade names and internally developed software are amortized using a straight-line method over their estimated useful lives. These intangibles assets will be evaluated for impairment if indicators of impairment arise. Insurance licenses were determined to have an indefinite useful life. The Company evaluates the useful life of the insurance licenses at each reporting period to determine whether the useful life remains indefinite. As of December 31, 2021, expected amortization expenses relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected Amortization (In thousands) 2022 $ 730 2023 $ 730 2024 $ 730 2025 $ 730 2026 $ 232 Thereafter $ 1,320 $ 4,472 |
Segment and Other Operating Inf
Segment and Other Operating Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Other Operating Information | SEGMENT AND OTHER OPERATING INFORMATION (A) Operating Segment Information The Company defines its reportable operating segments as domestic life insurance, international life insurance, annuities, and ONL and Affiliates (previously referred to as "Acquired Businesses"). These segments are organized based on product types, geographic marketing areas, and business groupings. Ozark National and NIS have been combined into the segment given its inter-related marketing and sales approach which consists of a coordinated sale of a non-participating whole life insurance product (Ozark National) and a mutual fund investment product (NIS). A fifth category "All Others" primarily includes investments and earnings of non-operating subsidiaries as well as other remaining investments and assets not otherwise supporting specific segment operations. In accordance with GAAP guidance for segment reporting, the Company excludes or segregates realized investment gains and losses. A summary of segment information is provided below. Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2021: Selected Balance Sheet Items: Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Income Statements: Premiums and contract revenues $ 51,294 79,085 16,809 77,109 — 224,297 Net investment income 90,006 52,227 368,234 26,989 25,074 562,530 Other revenues 105 95 5,374 12,654 4,086 22,314 Total revenues 141,405 131,407 390,417 116,752 29,160 809,141 Life and other policy benefits 24,416 26,481 67,515 69,165 — 187,577 Amortization of deferred transaction costs 9,580 (11,118) 61,881 9,118 — 69,461 Universal life and annuity contract interest 77,246 31,696 104,242 — — 213,184 Other operating expenses 26,959 19,679 53,817 20,244 5,913 126,612 Federal income taxes 656 13,249 21,094 3,675 4,762 43,436 Total expenses 138,857 79,987 308,549 102,202 10,675 640,270 Segment earnings $ 2,548 51,420 81,868 14,550 18,485 168,871 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2020: Selected Balance Sheet Items: Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Income Statements: Premiums and contract revenues $ 53,834 88,167 17,025 78,921 — 237,947 Net investment income 54,516 27,273 290,576 26,383 18,454 417,202 Other revenues 58 67 43 10,118 8,236 18,522 Total revenues 108,408 115,507 307,644 115,422 26,690 673,671 Life and other policy benefits 18,471 14,084 31,043 67,739 — 131,337 Amortization of deferred transaction costs 17,661 24,929 87,133 10,780 — 140,503 Universal life and annuity contract interest 44,782 (2,087) 163,555 — — 206,250 Other operating expenses 25,730 17,829 36,870 18,454 5,701 104,584 Federal income taxes (benefit) 265 9,143 (1,649) 4,413 3,159 15,331 Total expenses 106,909 63,898 316,952 101,386 8,860 598,005 Segment earnings (loss) $ 1,499 51,609 (9,308) 14,036 17,830 75,666 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2019: Selected Balance Sheet Items: Deferred transaction costs $ 127,557 209,858 486,553 142,434 — 966,402 Total segment assets 1,399,818 1,153,105 8,198,730 978,243 362,900 12,092,796 Future policy benefits (1) 1,198,103 870,461 7,366,894 706,513 — 10,141,971 Other policyholder liabilities 18,016 14,903 80,002 14,686 — 127,607 Condensed Income Statements: Premiums and contract revenues $ 45,709 99,417 20,317 74,526 — 239,969 Net investment income 77,672 47,004 380,357 22,593 27,866 555,492 Other revenues 313 86 (34) 8,445 8,676 17,486 Total revenues 123,694 146,507 400,640 105,564 36,542 812,947 Life and other policy benefits 18,948 17,064 41,487 59,843 — 137,342 Amortization of deferred transaction costs 11,797 17,593 79,064 8,348 — 116,802 Universal life and annuity contract interest 69,849 48,561 176,920 — — 295,330 Other operating expenses 20,376 19,447 35,699 17,056 11,980 104,558 Federal income taxes 561 9,024 13,888 3,700 5,056 32,229 Total expenses 121,531 111,689 347,058 88,947 17,036 686,261 Segment earnings $ 2,163 34,818 53,582 16,617 19,506 126,686 (1) Revised for an adjustment to reserve liabilities of $15.0 million. Refer to Note (1). Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Premiums and Other Revenue : Premiums and contract revenues $ 224,297 237,947 239,969 Net investment income 562,530 417,202 555,492 Other revenues 22,314 18,522 17,486 Realized gains on investments 14,950 21,071 6,241 Total consolidated premiums and other revenue $ 824,091 694,742 819,188 Years Ended December 31, 2021 2020 2019 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 43,436 15,331 32,229 Taxes on realized gains on investments 3,140 4,425 1,311 Total consolidated Federal income taxes $ 46,576 19,756 33,540 Years Ended December 31, 2021 2020 2019 (In thousands) Net Earnings : Total segment earnings $ 168,871 75,666 126,686 Realized gains on investments, net of taxes 11,810 16,646 4,930 Total consolidated net earnings $ 180,681 92,312 131,616 December 31, 2021 2020 2019 (In thousands) Assets : Total segment assets $ 13,426,665 13,753,320 12,092,796 Other unallocated assets 903,524 894,950 460,651 Total consolidated assets $ 14,330,189 14,648,270 12,553,447 (B) Geographic Information A portion of the Company's premiums and contract revenues are from international policies with residents of countries other than the United States. Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) United States $ 156,614 165,233 156,330 Brazil 20,535 22,190 24,975 Taiwan 10,954 11,433 12,054 Peru 8,635 9,167 10,127 Venezuela 8,560 9,949 11,763 Colombia 6,505 7,313 8,110 Other foreign countries 37,330 36,348 40,229 Revenues, excluding reinsurance premiums 249,133 261,633 263,588 Reinsurance premiums (24,836) (23,686) (23,619) Total premiums and contract revenues $ 224,297 237,947 239,969 Premiums and contract revenues are attributed to countries based on the location of the policyholder. All premiums from international policies are renewal premiums. The Company has no significant assets, other than certain limited financial instruments, located in countries other than the United States. (C) Major Agency Relationships A portion exceeding 10% of National Western's annual annuity sales has been sold through one or more of its top independent marketing agencies in recent years. Business from three top agencies accounted for approximately 11%, 11%, and 10%, respectively, of annuity sales in 2021. In 2021, one domestic independent marketing agency exceeded 10% of total Domestic Life sales accounting for 58%. Ozark National did not have a single distributor accounting for 10% or more of its sales in 2021. |
Statutory Information
Statutory Information | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Statutory Information | STATUTORY INFORMATION Domiciled in Colorado, National Western prepares its statutory financial statements in accordance with accounting practices prescribed or permitted by the Colorado Division of Insurance, while Ozark National, domiciled in Missouri, follows the accounting practices prescribed or permitted by the Missouri Department of Commerce and Insurance. These insurance departments have adopted the provisions of the National Association of Insurance Commissioners' ("NAIC") Statutory Accounting Practices (“SSAP”) as the basis for its statutory accounting practices. The following are major differences between GAAP and SSAP. 1. The Company accounts for universal life and annuity contracts based on the provisions of GAAP. The basic difference between GAAP and SSAP with respect to certain long-duration contracts is that deposits for universal life and annuity contracts are not reflected as revenues, and surrenders and certain other benefit payments are not reflected as expenses. Only contracts with no insurance risk qualify for such treatment under statutory accounting practices. For all other contracts, SSAP does reflect such items as revenues and expenses. A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Annuity deposits $ 462,632 358,900 264,667 Universal life insurance deposits 270,717 267,809 266,600 Traditional life and other premiums 96,429 98,711 95,695 Totals $ 829,778 725,420 626,962 2. SSAP requires commissions and related acquisition costs to be expensed as incurred, whereas under GAAP these items are deferred and amortized. 3. For SSAP, liabilities for future policy benefits for life insurance policies are calculated by the net level premium method, the commissioners reserve valuation method, or principles-based reserving under VM-20. Future policy benefit liabilities for annuities are calculated based on the continuous commissioners annuity reserve valuation method and provisions of Actuarial Guidelines 33 and 35. 4. Deferred Federal income taxes are provided for temporary differences which are recognized in the Consolidated Financial Statements in a different period than for Federal income tax purposes. Deferred taxes are also recognized under SSAP; however, there are limitations as to the amount of deferred tax assets that may be reported as admitted assets. The change in the deferred taxes is recorded directly in surplus, rather than as a component of income tax expense. 5. For SSAP, debt securities are recorded at amortized cost, except for securities in or near default, which are reported at fair value. Under GAAP, debt securities are carried at amortized cost or fair value based on their classification as either held-to-maturity, available-for-sale, or trading. 6. Investments in subsidiaries are recorded as affiliated common stock investments at their respective SSAP investment value under statutory accounting, whereas the financial statements of the subsidiaries have been consolidated with those of the Company under GAAP. 7. The asset valuation reserve and interest maintenance reserve, which are investment valuation reserves prescribed by SSAP, have been eliminated, as they are not required under GAAP. 8. The table below provides the National Western and Ozark National net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2021 2020 2019 (In thousands) National Western Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 85,440 1,423 209,139 Net income $ 63,476 6,487 151,316 Unassigned surplus $ 1,536,112 1,461,100 1,485,424 Capital and surplus $ 1,580,176 1,505,163 1,529,487 Ozark National Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 23,103 24,976 22,870 Net income $ 28,183 20,966 (854) Unassigned surplus $ 77,806 50,054 29,452 Capital and surplus $ 105,761 78,009 58,404 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share of common stock are computed by dividing net earnings available to each class of common stockholders on an as if distributed basis by the weighted-average number of common shares outstanding for the period. Diluted earnings per share, by definition, reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock, that then shared in the distributed earnings of each class of common stock. U.S. GAAP requires a two-class presentation for the Company’s two classes of common stock (refer to Note (13) Information Regarding Controlling Stockholder ). The Company currently has no share-based compensation awards outstanding that could be redeemed for shares of common stock. Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2021 2020 2019 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 180,681 92,312 131,616 Dividends – Class A shares (1,237) (1,237) (1,237) Dividends – Class B shares (36) (36) (36) Undistributed earnings $ 179,408 91,039 130,343 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 174,334 5,074 88,464 2,575 126,657 3,686 Net earnings $ 175,571 5,110 89,701 2,611 127,894 3,722 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,436 200 Basic earnings per share $ 51.10 25.55 26.11 13.05 37.22 18.61 Diluted earnings per share $ 51.10 25.55 26.11 13.05 37.22 18.61 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Comprehensive Income | COMPREHENSIVE INCOMEGAAP guidance requires that all items recognized under accounting standards as components of comprehensive income (loss) be reported in a financial statement that is displayed with the same prominence as other financial statements. This guidance requires that an enterprise (a) classify items of other comprehensive income by their nature in a financial statement and (b) display the accumulated balance of other comprehensive income (loss) separately from retained earnings and additional paid-in capital in the equity section of a statement of financial position. This guidance affects the Company's reporting presentation of certain items such as foreign currency translation adjustments, unrealized gains and losses on investment securities, and benefit plan liabilities. These items are reflected as components of other comprehensive income (loss), net of taxes, as reported in the accompanying Consolidated Financial Statements. Components of other comprehensive income (loss) for 2021, 2020 and 2019 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Amounts Net of Taxes (In thousands) 2021: Unrealized gains (losses) on securities, net of effects of deferred costs of $187,987: Net unrealized holding gains (losses) arising during the period $ (227,325) 47,738 (179,587) Reclassification adjustment for net (gains) losses included in net earnings (16,372) 3,438 (12,934) Net unrealized gains (losses) on securities (243,697) 51,176 (192,521) Foreign currency translation adjustments (20) 4 (16) Benefit plan liability adjustment 16,543 (3,474) 13,069 Other comprehensive income (loss) $ (227,174) 47,706 (179,468) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2020: Unrealized gains (losses) on securities, net of effects of deferred costs of $(304,955): Net unrealized holding gains (losses) arising during the period $ 446,280 (93,719) 352,561 Unrealized liquidity gains (losses) 8 (2) 6 Reclassification adjustment for net (gains) losses included in net earnings (5,677) 1,192 (4,485) Net unrealized gains (losses) on securities 440,611 (92,529) 348,082 Foreign currency translation adjustments 18 (4) 14 Benefit plan liability adjustment (16,182) 3,398 (12,784) Other comprehensive income (loss) $ 424,447 (89,135) 335,312 Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2019: Unrealized gains (losses) on securities, net of effects of deferred costs of $(85,609): Net unrealized holding gains (losses) arising during the period $ 122,726 (25,772) 96,954 Unrealized liquidity gains (losses) 4 (1) 3 Reclassification adjustment for net (gains) losses included in net earnings 5,060 (1,063) 3,997 Net unrealized (losses) gains on securities 127,790 (26,836) 100,954 Foreign currency translation adjustments 663 (139) 524 Benefit plan liability adjustment (5,513) 1,158 (4,355) Other comprehensive income (loss) $ 122,940 (25,817) 97,123 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY (A) Changes in Common Stock Shares Outstanding Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year $ 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year $ 3,636 3,636 3,636 (B) Dividend Restrictions National Western is restricted by state insurance laws as to dividend amounts which may be paid to stockholders without prior approval from the Colorado Division of Insurance. The restrictions are based on the lesser of statutory earnings from operations, excluding capital gains, or 10% of statutory surplus as of the previous year-end. Under these guidelines, the maximum dividend payment which may be made without prior approval in 2022 is $64.4 million. As the sole owner of NWLIC, all dividends declared by National Western are payable entirely to NWLGI and are eliminated in consolidation. National Western did not declare or pay cash dividends to NWLGI during the years ended December 31, 2021 and 2020. Ozark National is similarly restricted under the state insurance laws of Missouri as to dividend amounts which may be paid to stockholders without prior approval to the greater of 10% of the statutory surplus of the company from the preceding year-end or the company's net gain from operations, excluding capital gains, from the prior calendar year. Based upon this restriction, the maximum dividend payment which may be made in 2022 without prior approval is $18.6 million. All dividends declared by Ozark National are payable entirely to NWLIC as the sole owner and are eliminated in consolidation. Ozark National did not declare or pay cash dividends to NWLIC during the years ended December 31, 2021 and 2020. NIS is restricted under FINRA rules as to maximum dividend amounts that can be paid out to stockholders. Maximum allowable dividend amounts are determined based on calculations which require that certain net capital thresholds be maintained after dividends are paid out. Under these guidelines, the maximum dividend payment which may be made as of December 31, 2021 was $8.6 million. In the year ended December 31, 2020, NIS made dividend payments of $1.4 million to NWLGI which were eliminated in consolidation. No dividends were declared or paid in the year ended December 31, 2021. On October 22, 2021, the Board of Directors of NWLGI declared a cash dividend to stockholders on record as of November 5, 2021 which was paid December 1, 2021. The dividends approved were $0.36 per common share to Class A stockholders and $0.18 per common share to Class B stockholders. A dividend in the same amounts per share on Class A and Class B shares was declared in October 2020 and paid in December of 2020. (C) Regulatory Capital Requirements The Colorado Division of Insurance and Missouri Department of Commerce and Insurance impose minimum risk-based capital requirements on insurance companies that were developed by the National Association of Insurance Commissioners ("NAIC"). The formulas for determining the amount of risk-based capital ("RBC") specify various weighting factors that are applied to statutory financial balances or various levels of activity based on the perceived degree of risk. Regulatory compliance is determined by a ratio of a company's regulatory total adjusted capital to its authorized control level RBC, as defined by the NAIC. Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action. National Western's current authorized control level RBC of $120.6 million is significantly below its regulatory total adjusted capital of $1.7 billion. In addition, Ozark National's regulatory total adjusted capital of $109.3 million is also materially greater than its current authorized control level RBC of $7.8 million. (D) Share-Based Payments Effective June 20, 2008, the Company's shareholders approved a 2008 Incentive Plan (“2008 Plan”) which provided for the grant of any or all of the following types of awards to eligible employees: (1) stock options, including incentive stock options and nonqualified stock options; (2) stock appreciation rights ("SARs"), in tandem with stock options or freestanding; (3) restricted stock or restricted stock units; and (4) performance awards. The number of shares of Class A, $1.00 par value, common stock which were allowed to be issued under the plan, or as to which SARs or other awards were allowed to be granted, could not exceed 300,000. This plan was assumed by NWLGI from National Western pursuant to the terms of the holding company reorganization in 2015. On June 15, 2016, stockholders of NWLGI approved an amended and restated 2008 Plan ("Incentive Plan"), which extended the term of the 2008 Plan for ten years from the date of stockholder approval. The Incentive Plan includes additional provisions, most notably regarding the definition of performance objectives which could be used in the issuance of the fourth type of award noted above (performance awards). All of the employees of the Company and its subsidiaries are eligible to participate in the current Incentive Plan. In addition, directors of the Company are eligible to receive the same types of awards as employees except that they are not eligible to receive incentive stock options. Company directors, including members of the Compensation and Stock Option Committee, are eligible for nondiscretionary stock options. SARs granted prior to 2016 vest 20% annually following three years of service following the grant date. Employee SARs granted in 2016 and forward vest 33.3% annually following one year of service from the date of the grant. Directors' SARs grants vest 20% annually following one year of service from the date of grant. The Incentive Plan allows for certain other share or unit awards which are solely paid out in cash based on the value of the Company's shares, or changes therein, as well as the financial performance of the Company under pre-determined target performance metrics. Certain awards, such as restricted stock units ("RSUs") provide solely for cash settlement based upon the market price of the Company's Class A common shares, often referred to as "phantom stock-based awards" in equity compensation plans. Unlike share-settled awards, which have a fixed grant-date fair value, the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value of a share. The liability and corresponding expense are adjusted accordingly until the award is settled. For employees, the vesting period for RSUs is 100% at the end of three years from the grant date. RSUs granted prior to 2019 were paid in cash at the vesting date equal to the closing price of the Company's Class A common share on the three years anniversary date. RSUs granted in 2019 and after are payable in cash at the three years vesting date equal to the 20-day moving average closing price of the Company's Class A common share at that time. Other awards may involve performance share units ("PSUs") which are units granted at a specified dollar amount per unit, typically linked to the Company's Class A common share price, that are subsequently multiplied by an attained performance factor to derive the number of PSUs to be paid as cash compensation at the vesting date. PSUs also vest three years from the date of grant. For PSUs, the performance period begins the first day of the calendar year for which the PSUs are granted and runs three PSU awards covering the three year measurement period ended December 31, 2020 were paid out in April 2021. The performance factor during the measurement period used to determine compensation payouts was 85.16% of the pre-defined metric target. PSU awards covering the three year measurement period ended December 31, 2019 were paid out in the first quarter of 2020. The performance factor during the measurement period used to determine compensation payouts was 101.19% of the pre-defined metric target. Directors of the Company are eligible to receive RSUs under the Incentive Plan. Unlike RSUs granted to officers, the RSUs granted to directors vest one year from the date of grant. RSUs granted prior to 2019 were paid in cash at the vesting date equal to the closing price of the Company's Class A common share at that time. RSUs granted in 2019 and forward are payable in cash at the vesting date equal to the 20-day moving average closing price of the Company’s Class A common share at that time. The following table shows all grants issued to officers and directors for the twelve months ended December 31, 2021 and 2020. These grants were made based upon the 20-day moving average closing market price of the Company's Class A common share at the grant date. Years Ended December 31, 2021 December 31, 2020 Officers Directors Officers Directors SARs 64,157 — 40,990 — RSUs 5,301 3,530 6,147 3,400 PSUs 4,066 — 9,324 — The grant price of the awards increased from $192.10 in 2020 to $218.44 in 2021. The annual allocation of PSU, SAR, and RSU awards in 2021 was changed to place greater emphasis on SARs and less on PSUs awards. The Company uses the current fair value method to measure compensation cost for awards granted under the share-based plans. As of December 31, 2021 and 2020, the liability balance for these plans was $7.9 million and $6.2 million, respectively. A summary of awards by type and related activity is detailed below. Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2021 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2021 291,000 — $ — Liability Awards Other Share/Unit Awards: SARs RSUs PSUs Balance at January 1, 2021 144,248 16,449 24,282 Exercised (19,881) (6,168) (3,863) Forfeited (1,530) (157) — Granted 64,157 8,831 4,066 Balance at December 31, 2021 186,994 18,955 24,485 SARs, RSUs, and PSUs shown as forfeited in the above tables represent vested and unvested awards not exercised by plan participants upon their termination from the Company in accordance with the expiration provisions of the awards. The total intrinsic value of share-based compensation exercised and paid was $4.1 million, $2.8 million, and $3.1 million for the years ended December 31, 2021, 2020, and 2019, respectively. The total fair value of SARs, RSUs, and PSUs vested during the years ended December 31, 2021, 2020, and 2019 was $3.7 million, $4.2 million, and $4.4 million, respectively. No cash amounts were received from the exercise of stock options under the Plans during the periods reported on. The following table summarizes information about SARs outstanding at December 31, 2021. SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: $210.22 22,750 1.9 years 22,750 $216.48 11,086 4.1 years 11,086 $311.16 9,295 5.1 years 9,295 $310.55 203 5.3 years 203 $334.34 8,880 6.0 years 8,880 $303.77 11,068 7.0 years 11,068 $252.91 19,007 7.9 years 12,677 $192.10 40,548 8.9 years 13,504 $218.44 64,157 10.0 years — Totals 186,994 89,463 Aggregate intrinsic value (in thousands) $ 1,002 $ 398 The aggregate intrinsic value in the table above is based on the closing Class A common share price of $214.44 per share on December 31, 2021. In estimating the fair value of SARs outstanding at December 31, 2021 and 2020, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2021 December 31, 2020 Expected term 1.9 to 10.0 years 1.0 to 9.9 years Expected volatility weighted-average 35.05 % 33.47 % Expected dividend yield 0.17 % 0.17 % Risk-free rate weighted-average 1.01 % 0.19 % The Company reviewed the contractual term relative to the SARs as well as perceived future behavior patterns of exercise. Volatility is based on the Company’s historical volatility over the expected term of the SARs by expected exercise date. The pre-tax compensation expense/(benefit) recognized in the Consolidated Financial Statements related to these plans was $5.8 million, $(2.2) million, and $2.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. The related tax (benefit)/expense recognized was $(1.2) million, $0.5 million, and $(0.5) million for the years ended December 31, 2021, 2020 and 2019, respectively. For the years ended December 31, 2021, 2020 and 2019, the total pre-tax compensation expense related to nonvested share-based awards not yet recognized was $11.9 million, $9.1 million, and $8.0 million, respectively. The December 31, 2021 amount is expected to be recognized over a weighted-average period of 1.5 years. The Company recognizes compensation cost over the graded vesting periods. |
Information Regarding Controlli
Information Regarding Controlling Stockholder | 12 Months Ended |
Dec. 31, 2021 | |
Information Regarding Controlling Stockholder [Abstract] | |
Information Regarding Controlling Stockholder | INFORMATION REGARDING CONTROLLING STOCKHOLDERRobert L. Moody, Sr., through the Robert L. Moody Revocable Trust controls 99.0% of the total outstanding shares of the Company's Class B common stock as of December 31, 2021. Holders of the Company's Class A common stock elect one-third of the Board of Directors of the Company, and holders of the Class B common stock elect the remainder. Any cash or in-kind dividends paid on each share of Class B common stock are to be only one-half of the cash or in-kind dividends paid on each share of Class A common stock. In the event of liquidation of the Company, the Class A stockholders will receive the par value of their shares; then the Class B stockholders will receive the par value of their shares; and the remaining net assets of the Company shall be divided between the stockholders of both Class A and Class B stock based upon the number of shares held. |
Pension and Other Postretiremen
Pension and Other Postretirement Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Plans | PENSION AND OTHER POSTRETIREMENT PLANS (A) Defined Benefit Pension Plans National Western sponsors a qualified defined benefit pension plan covering employees enrolled prior to 2008. The plan provides benefits based on the participants' years of service and compensation. The company makes annual contributions to the plan that comply with the minimum funding provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). On October 19, 2007, National Western’s Board of Directors approved an amendment to freeze the pension plan as of December 31, 2007. The freeze ceased future benefit accruals to all participants and closed the plan to any new participants. In addition, all participants became immediately 100% vested in their accrued benefits as of that date. As participants are no longer earning a credit for service, future qualified defined benefit plan expense is projected to be minimal. Fair values of plan assets and liabilities are measured as of the prior December 31 for each year. A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 23,927 22,689 Service cost 119 107 Interest cost 528 674 Plan amendments — — Actuarial (gain) loss (805) 2,153 Benefits paid (1,713) (1,696) Projected benefit obligations at end of year 22,056 23,927 Changes in plan assets: Fair value of plan assets at beginning of year 20,833 18,512 Actual return on plan assets 3,265 2,910 Contributions 856 1,107 Benefits paid (1,713) (1,696) Fair value of plan assets at end of year 23,241 20,833 Funded status at end of year $ 1,185 (3,094) The service cost shown above for each year represents plan expenses expected to be paid out of plan assets. Under the clarified rules of the Pension Protection Act, plan expenses paid from plan assets are to be included in the plan's service cost component. The Projected Benefit Obligation decreased in 2021 due to the following: • An experience loss of approximately $309,000 due to census demographics. • An experience loss of approximately $78,000 due to the change in mortality. • An experience loss of approximately $127,000 due to the difference in expected and actual benefit payments. • An experience gain of approximately $1,319,000 due to the increase in the discount rate from 2.25% to 2.75%. The Projected Benefit Obligation increased in 2020 from the previous year due to the following: • An experience loss of approximately $587,000 due to census demographics. • An experience gain of approximately $317,000 due to the change in mortality. • An experience loss of approximately $45,000 due to the difference in expected and actual benefit payments. • An experience loss of approximately $1,838,000 due to the decrease in the discount rate from 3.00% to 2.25%. December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ 1,185 — Liabilities — (3,094) Net amount recognized $ 1,185 (3,094) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 3,642 6,826 Prior service cost — — Net amount recognized $ 3,642 6,826 The accumulated benefit obligation was $22.1 million and $23.9 million at December 31, 2021 and 2020, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit costs: Interest cost $ 528 674 839 Service cost 119 107 96 Expected return on plan assets (1,425) (1,261) (1,086) Amortization of net loss (gain) 539 580 660 Net periodic benefit cost (239) 100 509 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (2,645) 503 (872) Amortization of net loss (gain) (539) (580) (660) Total recognized in other comprehensive income (3,184) (77) (1,532) Total recognized in net periodic benefit cost and other comprehensive income $ (3,423) 23 (1,023) The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Rate of compensation increase n/a n/a December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a The assumed long-term rate of return on plan assets is generally set at the rate expected to be earned based on the long-term investment policy of the plan and the various classes of invested funds, based on the input of the plan’s investment advisors and consulting actuary and the plan’s historic rate of return. As of December 31, 2021, the plan’s average 10-year returns were 10.90%. In setting the annual discount rate assumption, the Pension Committee designated by National Western's Board of Directors reviews current 10 year and 30 year corporate bond yields, the current spread to treasuries, and their relative change during the past twelve months. It also considers the present value of the projected benefit payment stream based on the Citigroup Pension Discount Curve and market data observations provided by independent consultants. In setting the annual portfolio rate of return assumption, the Pension Committee considers the Plan’s actual long-term performance, the portfolio’s current allocation and individual investment holdings, the Committee’s and the investment manager’s expectations for future long term investment strategy and expected performance, and the advice of consultants knowledgeable about overall market expectations and benchmark rates of return used by comparable companies. Plan Assets As discussed in Note (4) Fair Values of Financial Instruments , GAAP defines fair value and establishes a framework for measuring fair value of financial assets. Using this guidance, the Company has categorized its pension plan assets into a three level hierarchy, based on the priority of inputs to the valuation process. The fair value hierarchy classifications are reviewed annually. Reclassification of certain financial assets and liabilities may result based on changes in the observability of valuation attributes. The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2021 and 2020. December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 852 852 — — Equity securities Domestic 15,752 15,752 — — International 163 163 — — Debt securities Corporate bonds 6,474 — 6,474 — Other invested assets — — — — Total $ 23,241 16,767 6,474 — December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 1,050 1,050 — — Equity securities Domestic 13,853 13,853 — — International 170 170 — — Debt securities Corporate bonds 5,759 — 5,759 — Other invested assets 1 1 — — Total $ 20,833 15,074 5,759 — Investment securities. Fair values for investments in debt and equity securities are based on quoted market prices, where available. For securities not actively traded, fair values are estimated using values obtained from various independent pricing services. In cases where prices are unavailable from these sources, values are estimated by discounting expected future cash flows using a current market rate applicable to the yield, credit quality, and maturity of the investments. Cash and cash equivalents. Carrying amounts for these instruments approximate their fair values. The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2021 2020 2019 Asset Category: Equity securities 68% 67% 65% Debt securities 28% 28% 31% Cash and cash equivalents 4% 5% 4% Total 100% 100% 100% The Company has established and maintains an investment policy statement for the assets held in the plan's trust. The investment strategies are of a long-term nature and are designed to meet the following objectives: Ensure that funds are available to pay benefits as they become due Set forth an investment structure detailing permitted assets and expected allocation ranges among classes Ensure that plan assets are managed in accordance with ERISA The pension plan is a highly diversified portfolio. The 96% of pension assets not invested in cash is allocated among 247 different investments, with no single issuer representing more than 4.9% of the fair value of the portfolio. The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% Deviations from these ranges are permitted if such deviations are consistent with the duty of prudence under ERISA. Investments in natural resources, venture capital, precious metals, futures and options, real estate, and other vehicles that do not have readily available objective valuations are not permitted. Short sales, use of margin or leverage, and investment in commodities and art objects are also prohibited. The investment policy statement is reviewed annually to ensure that the objectives are met considering any changes in benefit plan design, market conditions, or other material considerations. Contributions National Western expects to contribute up to $500,000 to the plan during 2022 which amount includes a $250,000 voluntary contribution for the 2021 plan year. Additional amounts may be contributed at NWLIC's discretion. The plan’s funding status is reviewed periodically throughout the year by National Western’s Pension Plan Committee. NWLIC intends to contribute at least the minimum amounts necessary for tax compliance and to maintain an Adjusted Funding Target Attainment Percentage ("AFTAP") of over 80% to meet the Pension Protection Act Plan’s threshold. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ 1,568 2023 1,555 2024 1,470 2025 1,488 2026 1,417 2027-2031 6,621 National Western also sponsors three non-qualified defined benefit pension plans. The first plan covers certain senior officers and provides benefits based on the participants' years of service and compensation. The primary pension obligations and administrative responsibilities of the plan are maintained by a pension administration firm, which is a subsidiary of American National Group, Inc. ("American National"), a related party. American National has guaranteed the payment of pension obligations under the plan. However, the Company has a contingent liability with respect to the plan should these entities be unable to meet their obligations under the existing agreements. Also, the Company has a contingent liability with respect to the plan in the event that a plan participant continues employment with National Western beyond age seventy Effective July 1, 2005, National Western established a second non-qualified defined benefit plan for the benefit of the then Chairman of the Company. This plan is intended to provide for post-2004 benefit accruals that mirror and supplement the pre-2005 benefit accruals under the previously discussed non-qualified plan, while complying with the requirements of the Act. Effective November 1, 2005, National Western established a third non-qualified defined benefit plan for the benefit of the then President of the Company. This plan is intended to provide for post-2004 benefit accruals that supplement the pre-2005 benefit accruals under the first non-qualified plan as previously discussed, while complying with the requirements of the Act. Ozark National and NIS have no defined benefit plans. A detail of plan disclosures related to the amendments of the original plan and the additional two plans is provided below: Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 51,571 29,258 Service cost 1,235 1,209 Interest cost 1,044 1,350 Actuarial (gain) loss (7,420) 21,736 Benefits paid (1,982) (1,982) Projected benefit obligations at end of year 44,448 51,571 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982) (1,982) Fair value of plan assets at end of year — — Funded status at end of year $ (44,448) (51,571) The Projected Benefit Obligation decreased in 2021 due to the following: • An experience gain of approximately $4,208,000 due to census demographics different than assumed including changes in compensation different than assumed. • An experience loss of approximately $80,000 due to the change in mortality. • An experience gain of approximately $3,292,000 due to the increase in the discount rate from 2.25% to 2.75%. The Projected Benefit Obligation increased in 2020 from the prior year due to the following: • An experience loss of approximately $16,720,000 due to census demographics different than assumed including increases in actual compensation more than the actuarial assumption. • An experience gain of approximately $441,000 due to the change in mortality. • An experience loss of approximately $5,457,000 due to the decrease in the discount rate from 3.00% to 2.25%. December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (44,448) (51,571) Net amount recognized $ (44,448) (51,571) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 13,925 26,476 Prior service cost 345 404 Net amount recognized $ 14,270 26,880 The accumulated benefit obligation was $26.4 million and $27.0 million at December 31, 2021 and 2020, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit cost: Service cost $ 1,235 1,209 502 Interest cost 1,044 1,350 1,025 Amortization of prior service cost 59 59 59 Amortization of net loss (gain) 5,131 5,781 1,391 Net periodic benefit cost 7,469 8,399 2,977 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (7,420) 21,736 7,438 Amortization of prior service cost (59) (59) (59) Amortization of net loss (gain) (5,131) (5,781) (1,391) Total recognized in other comprehensive income (12,610) 15,896 5,988 Total recognized in net periodic benefit cost and other comprehensive income $ (5,141) 24,295 8,965 The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Rate of compensation increase 8.00 % 8.00 % December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % The plan is unfunded and therefore no assumption has been made related to the expected long-term return on plan assets. Plan Assets The plan is unfunded and therefore had no assets at December 31, 2021 or 2020. Contributions National Western expects to contribute approximately $2.0 million to the plan in 2022. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ 1,982 2023 1,982 2024 1,982 2025 1,982 2026 1,982 2027-2031 13,084 (B) Defined Contribution Pension Plans In addition to the defined benefit pension plans, National Western sponsors a qualified 401(k) plan for substantially all employees and a non-qualified deferred compensation plan primarily for senior officers. National Western made annual contributions to the 401(k) plan in 2021, 2020, and 2019 of up to four percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. Contributions prior to 2021 are subject to a vesting schedule based on the employee's years of service and those for 2021 are not subject to a vesting schedule. For the years ended December 31, 2021, 2020, and 2019, NWLIC contributions totaled $755,000, $720,000, and $664,000, respectively. The non-qualified deferred compensation plan sponsored by National Western was established to allow eligible employees to defer the payment of a percentage of their compensation and to provide for additional company contributions. Contributions are subject to a vesting schedule based on the employee's years of service. For the years ended December 31, 2021, 2020, and 2019, contributions totaled $143,000, $175,000, and $97,000, respectively. Ozark sponsors a qualified 401(k) plan for substantially all employees of Ozark and NIS. The employer match was discretionary for deferral dates prior to 2021. In 2021, Ozark contributions for employee deferrals went up to four percent of each employee's compensation, based on the employee's personal level of salary deferrals to the plan. Contributions for deferral dates prior to 2021 were subject to a graded vesting schedule while 2021 contributions are not subject to a vesting schedule. Expense related to this plan totaled $125,000, $175,000, and $176,000 for Ozark and $10,000, $17,000, and $30,000 for NIS for the years ended December 31, 2021, 2020, and 2019, respectively. Ozark also sponsors a non-qualified, unfunded retirement plan covering certain members of executive staff. The plan is funded solely through discretionary employer contributions. Expense related to this plan totaled $24,000, $247,000, and $45,000 for the years ended December 31, 2021, 2020, and 2019, respectively. (C) Postretirement Employment Plans Other Than Pension National Western sponsors two health care plans that were amended in 2004 to provide postretirement benefits to certain fully-vested individuals. The plan is unfunded. A December 31 measurement date is used for the plan. A detail of plan disclosures related to the plan is provided below: Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 6,469 5,782 Interest cost 148 165 Actuarial (gain) loss (457) 522 Benefits paid — — Projected benefit obligations at end of year 6,160 6,469 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (6,160) (6,469) The Projected Benefit Obligation decreased in 2021 due to the following: • An experience loss of approximately $123,000 due to the claims/healthcare cost trend experience. • An experience loss of approximately $30,000 due to the change in mortality. • An experience gain of approximately $610,000 due to the increase in the discount rate from 2.25% to 2.75%. The Projected Benefit Obligation increased in 2020 from the prior year due to the following: • An experience loss of approximately $389,000 due to the claims/healthcare cost trend experience. • An experience gain of approximately $656,000 due to the change in actuarial assumptions. • An experience gain of approximately $104,000 due to the change in mortality. • An experience loss of approximately $893,000 due to the decrease in the discount rate from 3.00% to 2.25%. December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (6,160) (6,469) Net amount recognized $ (6,160) (6,469) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 1,539 2,288 Prior service cost — — Net amount recognized $ 1,539 2,288 The accumulated benefit obligation was $6.2 million and $6.5 million at December 31, 2021 and 2020, respectively. Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit cost: Interest cost $ 148 165 198 Amortization of prior service cost — — 52 Amortization of net loss 292 158 244 Net periodic benefit cost 440 323 494 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (457) 522 1,354 Amortization of prior service cost — — (52) Amortization of net loss (gain) (292) (158) (244) Total recognized in other comprehensive income (749) 364 1,058 Total recognized in net periodic benefit cost and other comprehensive income $ (309) 687 1,552 As the plans are not funded, there is no expected return on plan assets shown in the net periodic benefit cost table above. Ozark National and NIS do not offer postretirement employment benefits. The components of net periodic benefit cost including service cost are reported in "Other operating expenses" in the Consolidated Statement of Earnings. Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Expected long-term return on plan assets n/a n/a December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a For measurement purposes, a 7.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2022, decreasing annually by 0.5% until reaching an ultimate rate of 5%. Plan Assets The plans are unfunded and therefore had no assets at December 31, 2021 and 2020. Contributions The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ — 2023 — 2024 — 2025 — 2026 198 2027-2031 1,354 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | FEDERAL INCOME TAXES Total Federal income taxes were allocated as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 42,829 (275) 58,834 Deferred 3,747 20,031 (25,294) Taxes on earnings 46,576 19,756 33,540 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available-for-sale (51,177) 92,528 26,836 Foreign currency translation adjustments (4) 4 139 Change in benefit plan liability 3,474 (3,398) (1,158) Change in accounting — (806) — Total Federal income taxes $ (1,131) 108,084 59,357 . The provisions for Federal income taxes attributable to earnings from continuing operations vary from amounts computed by applying the statutory income tax rate to income statement earnings before Federal income taxes due to differences between the financial statement reporting and income tax treatment of certain items. These differences and the corresponding tax effects are as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Income tax expense at statutory rate of 21% $ 47,724 23,534 34,683 Dividend received deduction (394) (401) (493) Tax exempt interest (1,263) (1,436) (1,564) Non deductible salary expense 439 351 294 Adjustments pertaining to prior tax years (63) (8) 459 Nondeductible insurance 96 96 96 Nondeductible expenses 54 44 117 Tax rate differential for loss carryback — (2,497) — Other, net (17) 73 (52) Taxes on earnings from continuing operations $ 46,576 19,756 33,540 The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020 to provide relief to businesses impacted by the Coronavirus pandemic. The CARES Act included a temporary reprieve from the carryback limitation on the use of net operating losses, allowing taxpayers to carryback certain net operating losses generated from 2018 through 2020 for up to five years in order to claim a refund of taxes paid in prior years. Accordingly, the Company was permitted to carryback the taxable loss generated in the year ended December 31, 2020 to tax years when the corporate tax rate was 35%. This resulted in a permanent tax benefit equal to the 14% corporate tax rate differential between the carryback rate of 35% and the current statutory rate of 21%. There was a permanent tax benefit of $2.5 million reflected in the reconciliation of the tax rate for the year ended December 31, 2020. An additional permanent tax benefit of $120,000 has been reflected in the reconciliation of the tax rate for the year ended December 31, 2021 as the true up from provision to actual for the carryback claim. The Company generally expects its effective tax rate to be slightly less than the current statutory rate due to recurring permanent differences that reduce tax expense, principally tax exempt interest income and the dividend received deduction. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below. December 31, 2021 2020 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 183,692 188,635 Investment securities write-downs for financial accounting purposes 735 649 Benefit plan liabilities 12,546 14,714 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,490 3,346 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 64 85 Goodwill 1,696 2,077 Other 88 95 Total gross deferred tax assets 203,311 209,601 Deferred tax liabilities: Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes (157,543) (153,742) Tax reform reserve adjustment (34,942) (43,687) Debt securities, principally due to deferred market discount for tax (5,611) (8,338) Real estate, principally due to adjustments for financial accounting purposes (14) (2,245) Net unrealized gains on debt and equity securities (66,696) (112,500) Foreign currency translation adjustments (1,356) (1,360) Fixed assets, due to different depreciation bases (13,032) (10,645) Cost of reinsurance (18,834) (21,596) Funds withheld liability (5,591) — Other (858) (614) Total gross deferred tax liabilities (304,477) (354,727) Net deferred tax liabilities $ (101,166) (145,126) Beginning January 1, 2018, the Tax Cuts and Jobs Act imposed a limitation on life insurance tax reserves based upon the greater of net surrender value or 92.81% of the reserve method prescribed by the National Association of Insurance Commissioners which covers such contracts as of the date the reserve is determined. The Company determined that this limitation resulted in a tax reserve decrease of $332.9 million which the Tax Act allowed to be recognized over an eight-year period. At the statutory rate of 21%, the Company recorded a deferred tax liability as of December 31, 2017 of $69.9 million. This amount has been incorporated into the periodic measurement of net deferred tax liabilities and at December 31, 2021 is $34.9 million as shown in the table above. The total tax reserve adjustment of $332.9 million resulting from the limitation imposed under the Tax Act is being recognized as an increase of $41.6 million in taxable income per year through the year 2025. At the statutory rate of 21%, this results in additional tax of $8.7 million per year. There were no valuation allowances for deferred tax assets at December 31, 2021 and 2020. In assessing deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is primarily dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and available tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences. In accordance with GAAP, the Company assessed whether it had any significant uncertain tax positions related to open examination or other IRS issues and determined that there were none. Accordingly, no reserve for uncertain tax positions has been recorded. Should a provision for any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company's policy to accrue for such in its income tax accounts. There were no such accruals as of December 31, 2021 or 2020. The Company and its corporate subsidiaries file a consolidated U.S. Federal income tax return, which is subject to examination for all years after 2017. The Company's federal income tax return is consolidated with the entities listed below. • National Western Life Group, Inc. (NWLGI) • National Western Life Insurance Company (NWLIC, a subsidiary of NWLGI) • The Westcap Corporation (subsidiary of NWLIC) • Braker P III, LLC (subsidiary of NWLIC) • NWL Financial, Inc. (subsidiary of NWLIC) • NWLSM, Inc. (subsidiary of NWLIC) • NWL Services, Inc. (subsidiary of NWLGI) • Regent Care Operations General Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care Operations Limited Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care General Partner, Inc. (subsidiary of NWL Services, Inc.) • Regent Care Limited Partner, Inc. (subsidiary of NWL Services, Inc.) • N.I.S. Financial Services, Inc. (NIS, a subsidiary of NWLGI) Ozark National will not be consolidated with NWLGI for federal tax filings until it has been a member of the affiliated group for five full years, per section 1504(c)(2) of the Internal Revenue Code. Allocation of the consolidated Federal income tax liability amongst the Company and its consolidated subsidiaries is based on separate return calculations pursuant to the "wait-and-see" method as described in sections 1.1552-1(a)(1) and 1.1502-33(d)(2) of the current Treasury Regulations. Under this method, consolidated group members are not given current credit for net losses until future net taxable income is generated to realize such credits. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Short-term Debt [Abstract] | |
Short-Term Borrowings | SHORT-TERM BORROWINGS National Western has available a $75 million bank line of credit (with Moody National Bank, its custodian bank and a related party) primarily for cash management purposes. The Company is required to maintain a collateral security deposit in trust with the sponsoring bank having a fair value equal to 110% of the line of credit. The Company had no outstanding borrowings under the line of credit at December 31, 2021 or 2020. The Company maintained assets having an amortized value of $91.2 million (fair value of $93.7 million) on deposit with the lender at December 31, 2021. During 2020, National Western became a member of the Federal Home Loan Bank of Dallas (FHLB) through an initial minimum required stock investment of $4.3 million. Through this membership, National Western will have a specified borrowing capacity based upon the amount of collateral it establishes. At December 31, 2021, cash and securities in the amount of $57.3 million (fair value of $60.6 million) were pledged to FHLB. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (A) Legal Proceedings In the normal course of business, the Company is involved or may become involved in various legal actions in which claims for alleged economic and punitive damages have been or may be asserted, some for substantial amounts. In recent years, carriers offering life insurance and annuity products have faced litigation, including class action lawsuits, alleging improper product design, improper sales practices, and similar claims. As previously disclosed, the Company has been a defendant in prior years in such class action lawsuits. Given the uncertainty involved in these types of actions, the ability to make a reliable evaluation of the likelihood of an unfavorable outcome or an estimate of the amount of or range of potential loss is endemic to the particular circumstances and evolving developments of each individual matter on its own merits. On September 28, 2017, a purported shareholder derivative lawsuit was filed in the 122nd District Court of Galveston County, State of Texas entitled Robert L. Moody, Jr. derivatively on behalf of National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody, et al., naming certain current and former directors and current officers as defendants. The complaint challenged the directors’ oversight of insurance sales to non-U.S. residents and alleged that the defendants breached their fiduciary duties in the conduct of their duties as board members by failing to act (i) on an informed basis and (ii) in good faith or with the honest belief that their actions were in the best interests of the Company. The complaint sought an undetermined amount of damages, attorneys’ fees and costs, and equitable relief, including the removal of the Company’s Chairman and Chief Executive Officer and other board members and/or officers of the Company. The Company believed that the claims in the complaint were baseless and without merit, vigorously defended this lawsuit, and was awarded reimbursement of legal costs and expenses from plaintiff as detailed below. The companies and directors filed their respective Pleas to the Jurisdiction ("Pleas") contesting the plaintiff's standing to even pursue this action, along with their Answers, on October 27, 2017. On December 14, 2017, plaintiff filed a Response to the Pleas and on December 21, 2017, the Court heard oral argument on the Pleas. Plaintiff then filed a First Amended Petition on January 11, 2018. The companies and directors filed a Supplement to the Pleas on January 30, 2018, to which plaintiff responded on February 1, 2018, and the companies and directors replied on February 9, 2018. On May 3, 2018, the Court issued a memorandum to all attorneys of record stating that the Court would grant the defendants' Pleas and asked the attorney for defendants to prepare and submit proposed orders/judgments granting the requested relief for consideration by the Court. The defendants filed such proposed order granting the Pleas on May 7, 2018. On May 16, 2018 the Court issued an Order granting the Pleas and dismissing Robert L. Moody, Jr.’s claims with prejudice, and plaintiff then filed a Motion to Transfer Venue (“MTTV”). Defendants filed an Application for Fees, seeking to recover defendants’ legal costs and expenses from plaintiff, and a Response to the MTTV on June 8, 2018. In response plaintiff filed a Motion to Vacate, a Response to the Application for Fees, and his own Request for Attorney’s Fees on July 5, 2018. Defendants filed a Response to the Motion to Vacate and to plaintiff’s Request for Attorney’s Fees on July 11, 2018, and the Court heard oral arguments on July 16, 2018. Plaintiff filed supplemental briefing in support of his July 5, 2018 filings on July 25, 2018, and defendants filed their response to plaintiff's supplemental briefing on July 27, 2018. On August 8, 2018 the Court issued an Order denying plaintiff's Motion to Vacate. Pursuant to the Court’s instructions, on October 5, 2018, defendants filed an Order Granting Application for Expenses. Defendants then filed a Motion for Entry of Final Judgment and a Request for Submission Date on Motion for Entry of Final Judgment on October 11, 2018, which the Court set as October 30, 2018. Plaintiff filed his Objection to Proposed Final Judgment and Objection to Proposed Order on Attorneys’ Fees on October 25, 2018, to which defendants filed a response on October 30, 2018. On November 11, 2018, the Court issued its Final Judgment: ordering Plaintiff to pay the companies $1,314,054 for reasonable and necessary fees and expenses, denying Plaintiff’s Motion to Transfer Venue, and dismissing Plaintiff’s counterclaim. Plaintiff appealed the Court’s Final Judgment to the First District Court of Appeals in Houston, TX. The court of appeals issued a panel decision on December 10, 2020 affirming the dismissal and award of attorneys’ fees and expenses to the companies. On January 22, 2021, Plaintiff filed a motion for rehearing of the affirmance of the award of attorneys’ fees and expenses. On July 27, 2021, the Court of Appeals vacated its December 10, 2020 judgment and withdrew its earlier opinion, and issued a new judgment and opinion again affirming the dismissal and award of attorneys’ fees and expenses to the companies. Plaintiff filed an Extension for Filing Review with the Texas Supreme Court on September 10, 2021, which expired on October 12, 2021. On October 15, 2021, Defendants received final payment in satisfaction of judgment from Robert L. Moody, Jr. for a total amount of $1,803,503. The Court of Appeals stated in its opinion that the evidence supported the trial court’s implied finding that Robert L. Moody, Jr.’s suit was filed without reasonable cause and for an improper purpose, and therefore, the court’s order that he pay $1,803,503 in attorneys’ fees to the Defendants was proper. Defendants filed a Notice of Satisfaction of Judgment with the trial court on October 19, 2021. Judgment in the Defendants’ favor is now final and not subject to any further appeals. In April of 2019, National Western defended a two-week jury trial in which it was alleged that it committed actionable Financial Elder Abuse in its issuance of a $100,000 equity indexed annuity to the Plaintiff in the case of Williams v Pantaleoni et al , Case No. 17CV03462, Butte County California Superior Court. The Court entered an Amended Judgment on the Jury Verdict on July 27, 2019 against National Western in the amount of $14,949 for economic damages and $2.9 million in non-economic and punitive damages. National Western vigorously disputes the verdicts and the amounts awarded, and in furtherance of such, filed a Motion for Judgment Notwithstanding Jury Verdict and a Motion for New Trial, both of which were rejected by the Court. On September 9, 2019, NWLIC filed its Notice of Appeal. On November 11, 2019, the judge awarded the Plaintiff attorney’s fees in the amount of $1.26 million. Both the Plaintiff and NWLIC appealed this ruling. On June 11, 2021, the appellate court reversed the judgment and directed the trial court to enter judgment in favor of NWLIC. Plaintiff has filed an appeal with the Supreme Court of California. On September 22, 2021, the California Supreme Court granted review and transferred the case back to the appellate court with instructions to vacate its decision and reconsider its finding that Mr. Pantaleoni did not have an agency relationship with NWLIC. On March 4, 2022, the appellate court filed an opinion completely striking the award of punitive damages that had been in the amount of $2.50 million, affirming economic damages of $14,949 and non-economic damages of $420,000, and awarding Plaintiff costs on appeal. The appellate court remanded the case to the trial court to reconsider the attorney fee award of $1.26 million in light of the reversal of punitive damages. In the Form 10-Q for the period ended September 30, 2020, the Company reported that it experienced a data event in which an intruder accessed and exfiltrated certain data from the Company's network. As a result of this event, the Company reported in its Form 10-K for the year ended December 31, 2020, that it was aware of two proposed class actions filed against National Western, Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , Missouri Circuit Court for the 18th Judicial Circuit (Pettis County) filed February 16, 2021, and Douglas Dyrssen Sr., individually and on behalf of all others similarly situated vs. National Western Life Insurance Company and National Western Life Group, Inc. , United States District Court for the Eastern District of California filed March 8, 2021. The parties agreed to consolidate those two proposed class actions into a single proposed class action, Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company , United States District Court for the Western District of Missouri. Baldwin is seeking an undetermined amount of damages, attorneys' fees and costs, injunctive relief, declaratory and other equitable relief, and enjoinment. National Western filed a Motion to Dismiss on July 16, 2021. On July 26, 2021, the parties filed a Joint Motion to Stay Pending Mediation, which the court denied. On September 15, 2021, the court granted in part and denied in part National Western’s Motion to Dismiss. At the mediation held on October 12, 2021, the parties agreed on preliminary terms to settle the litigation. The parties filed a Joint Notice of Settlement and Motion to Stay Deadlines with the court on October 20, 2021. The Company accrued $4.4 million for this matter. The Court issued an order preliminarily approving the settlement on January 19, 2022. The settlement terms remain subject to final court approval. The final approval hearing is currently set for June 16, 2022. Although there can be no assurances, at the present time, the Company does not anticipate that the ultimate liability arising from such other potential, pending, or threatened legal actions will have a material adverse effect on the financial condition or operating results of the Company. The Company was informed by the Internal Revenue Service (“IRS”) that it had countersigned a previously negotiated closing agreement effective February 11, 2022 (“Agreement”) by and between National Western and the Commissioner of Internal Revenue pertaining to an open matter regarding the tax status of certain of the Company’s international life insurance products. Under terms of the Agreement, the Company is to remit to the IRS a payment in the amount of $4.9 million within sixty days of the effective date of the Agreement and to make stipulated adjustments to the policies covered under the Agreement within ninety days of the effective date. The Company had previously accrued for this contingency in a financial statement period predating the financial statements for the three years ended December 31, 2021. Accordingly, there is no effect on the financial statements for the year ended December 31, 2021 for this Agreement. Separately, in 2015 Brazilian authorities commenced an investigation into possible violations of Brazilian criminal law in connection with the issuance of National Western insurance policies to Brazilian residents, and in assistance of such investigation a Commissioner appointed by the U.S. District Court for the Western District of Texas issued a subpoena in March of 2015 upon NWLIC to provide information relating to such possible violations. National Western cooperated with the relevant governmental authorities in regard to this matter. No conclusion can be drawn at this time as to its outcome or how such outcome may impact the Company’s business, results of operations or financial condition. (B) Financial Instruments In order to meet the financing needs of its customers in the normal course of business, the Company is a party to financial instruments with off-balance sheet risk. These financial instruments are commitments to extend credit which involve elements of credit and interest rate risk in excess of the amounts recognized in the Consolidated Balance Sheets. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amounts, assuming that the amounts are fully advanced and that collateral or other security is of no value. Commitments to extend credit are legally binding agreements to lend to a customer that generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments do not necessarily represent future liquidity requirements, as some could expire without being drawn upon. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. The Company had $5.4 million in commitments to fund new loans and $13.1 million in commitments to extend credit relating to existing loans at December 31, 2021. The Company evaluates each customer's creditworthiness on a case-by-case basis. The Company also had commitments to make capital contributions to alternative investment debt and equity funds of $256.4 million as of December 31, 2021. The Company had no commitments to extend credit relating to revolving credit facilities at December 31, 2021. (C) Guaranty Association Assessments National Western and Ozark National are subject to state guaranty association assessments in all states in which they are licensed to do business. These associations generally guarantee certain levels of benefits payable to resident policyholders of insolvent insurance companies. Many states allow premium tax credits for all or a portion of such assessments, thereby allowing potential recovery of these payments over a period of years. However, several states do not allow such credits. The Company estimates its liabilities for guaranty association assessments by using the latest information available from the National Organization of Life and Health Insurance Guaranty Associations. The Company monitors and revises its estimates for assessments as additional information becomes available which could result in changes to the estimated liabilities. As of December 31, 2021, 2020 and 2019, liabilities for guaranty association assessments totaled $0.1 million, $0.2 million and $0.2 million, respectively. Other operating expenses related to state guaranty association assessments were minimal for the years ended December 31, 2021, 2020 and 2019. (D) Leases The Company leases various office related equipment. Rental expenses for these leases were $0.4 million, $0.5 million and $0.4 million for the years ended December 31, 2021, 2020, and 2019, respectively. In 2021, the Company entered into two lease agreements for new equipment under finance leases. These leases will expire in October 2024 and November 2026. The present value of future payments capitalized amounted to $1.4 million and amortization commenced in 2021. The Company's future annual lease obligations under finance leases as of December 31, 2021 are as shown below (in thousands). 2022 $ 343 2023 343 2024 316 2025 179 2026 165 Total minimum lease payments 1,346 Less: Interest (10) Present value of net minimum lease payments $ 1,336 |
Deposits with Regulatory Author
Deposits with Regulatory Authorities | 12 Months Ended |
Dec. 31, 2021 | |
Deposits with Regulatory Authorities [Abstract] | |
Deposits with Regulatory Authorities | DEPOSITS WITH REGULATORY AUTHORITIES The following assets, stated at amortized cost, were on deposit with state and other regulatory authorities, as required by law, at the end of each year. December 31, 2021 2020 (In thousands) National Western: Debt securities available-for-sale $ 15,307 15,283 Short-term investments 475 475 Total National Western 15,782 15,758 Ozark National: Debt securities available-for-sale 3,319 3,331 Total Ozark National 3,319 3,331 Total $ 19,101 19,089 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSRobert L. Moody, Jr. ("Mr. Moody, Jr.") is the brother of Ross R. Moody, NWLGI's Chairman, President and Chief Executive Officer, son of Robert L. Moody, Sr., Chairman Emeritus of the Board of Directors of NWLGI, the stepson of Ann M. Moody who serves as a director of NWLGI, brother of Russell S. Moody who serves as an advisory director of NWLGI, and a half-brother of Frances A. Moody-Dahlberg who serves as a director of NWLGI. Mr. Moody, Jr. wholly owns an insurance marketing organization that maintains agency contracts with National Western pursuant to which agency commissions are paid in accordance with standard commission schedules. Mr. Moody, Jr. also maintains an independent agent contract with National Western for policies personally sold under which commissions are also paid in accordance with standard commission schedules. Commissions paid under these agency contracts aggregated approximately $155,107 and $182,957 in 2021 and 2020, respectively. Management fees totaling $2,000 and $0 were paid to Regent Management Services, Limited Partnership ("RMS") for services provided to downstream nursing home subsidiaries of NWLGI in 2021 and 2020, respectively. These nursing home operations were sold by the Company during 2019. RMS is 1% owned by general partner RCC Management Services, Inc. ("RCC"), and 99% owned by limited partner, the Three R Trusts. RCC is 100% owned by the Three R Trusts. The Three R Trusts are four separate Texas trusts for the benefit of the children of Robert L. Moody, Sr. (Robert L. Moody, Jr., Ross R. Moody, Russell S. Moody, and Frances A. Moody-Dahlberg). National Western holds an investment totaling approximately 9.4% of the issued and outstanding shares of Moody Bancshares, Inc. at December 31, 2021 and the Three R Trusts owns a majority of the issued and outstanding shares. Moody Bancshares, Inc. owns 100% of the outstanding shares of Moody Bank Holding Company, Inc., which owns approximately 98.5% of the outstanding shares of The Moody National Bank of Galveston ("MNB"). Ross R. Moody and Frances A. Moody-Dahlberg are members of the Board of Directors of Moody Bancshares, Inc. National Western utilizes MNB for certain bank custodian services as well as for certain administrative services with respect to its defined benefit plan. Fees totaling $536,101 and $582,150 were paid to MNB with respect to these services in 2021 and 2020, respectively. The Company maintains an office space lease with MNB and made payments totaling $32,101 and $32,101 in 2021 and 2020, respectively, under this lease. National Western paid American National Group, Inc. (“American National”) $642,099 and $840,802 in 2021 and 2020, respectively, in premiums for certain company sponsored benefit plans and $3,021,197 and $2,635,164 in 2021 and 2020, respectively, in reimbursements for claim costs for which American National provides third party administrative services. American National paid National Western $3,147,080 and $2,744,962 in 2021 and 2020, respectively, in premiums for its company sponsored benefit plans. National Western maintained an investment agreement with American National Registered Investment Advisory, Inc., a subsidiary of American National, under which $58,032 and $47,778 was paid in 2021 and 2020, respectively, for services. Robert L. Moody, Sr., serves as Chairman Emeritus and Ross R. Moody serves as a non-executive Chairman of the Board of American National. Anne M. Moody, E. Douglas McLeod, and E. J. Pederson, members of the NWLGI Board of Directors, are also members of the American National Board of Directors. During 2015, American National sold a 24.93% undivided participation in a mortgage loan to The Westcap Corporation for $20.0 million. The Westcap Corporation will receive 24.93% of all future cash receipts, which will be recognized over the life of the loan. This mortgage loan investment had a balance of $17.9 million and $18.5 million as of December 31, 2021 and 2020, respectively, which is reflected in the Consolidated Balance Sheets. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTSSubsequent events have been evaluated through the date of filing and no other reportable items were identified. |
Schedule I - Summary of Investm
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Summary of Investments Other Than Investment in Related Parties | Type of Investment Amortized Cost or Cost (1) Fair Value Balance Sheet Amount Debt securities available-for-sale: United States government and government agencies and authorities $ 45,941 47,033 47,033 States, municipalities, and political subdivisions 479,148 505,960 505,960 Foreign governments 62,979 62,391 62,391 Public utilities 745,359 784,969 784,969 Corporate 6,322,471 6,700,953 6,700,953 Commercial mortgage-backed 27,016 27,757 27,757 Residential mortgage-backed 530,702 549,623 549,623 Asset-backed 390,634 390,260 390,260 Total securities available-for-sale 8,604,250 9,068,946 9,068,946 Debt securities trading: United States government and government agencies and authorities — — — States, municipalities, and political subdivisions 16,644 17,487 17,487 Foreign Government — — — Public utilities 36,282 36,973 36,973 Corporate 413,250 423,778 423,778 Commercial mortgage-backed 240,484 240,573 240,573 Residential mortgage-backed 45,195 44,772 44,772 Asset-backed 314,253 313,855 313,855 Total securities trading 1,066,108 1,077,438 1,077,438 Total fixed maturity bonds 9,670,358 10,146,384 10,146,384 Equity securities: Common stocks: Public utilities 578 1,335 1,335 Banks, trust, and insurance companies 1,701 4,287 4,287 Industrial, miscellaneous, and all others 9,945 18,173 18,173 Preferred stocks 4,325 4,422 4,422 Total equity securities 16,549 28,217 28,217 Derivatives, index options 101,622 101,622 Mortgage loans on real estate 486,892 486,892 Policy loans 71,286 71,286 Other long-term investments (2) 137,670 137,670 Total investments other than investments in related parties $ 10,484,377 10,972,071 (1) Bonds and mortgages are shown at amortized cost reduced by repayments and allowances for possible losses. Real estate is stated at costs net of accumulated depreciation. Derivatives are shown at fair value. (2) There was no real estate acquired by foreclosure included in other long-term investments. See accompanying report of Independent Registered Public Accounting Firm. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | 2021 2020 ASSETS Investment in subsidiaries $ 2,538,996 2,535,669 Cash and cash equivalents 7,017 8,376 Deferred Federal income tax asset 8,258 7,721 Other assets 263 293 Total assets $ 2,554,534 2,552,059 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Current Federal income tax liability 14,388 11,667 Other liabilities 455 642 Total liabilities 14,843 12,309 Stockholders' Equity: Common Stock: Class A - $0.01 par value; 7,500,000 shares authorized; 3,436,020 issued and outstanding in 2021 and 2020 34 34 Class B - $0.01 par value; 200,000 shares authorized, issued, and outstanding in 2021 and 2020 2 2 Additional paid-in capital 41,716 41,716 Accumulated other comprehensive income 215,953 395,421 Retained earnings 2,281,986 2,102,577 Total stockholders’ equity 2,539,691 2,539,750 Total liabilities and stockholders' equity $ 2,554,534 2,552,059 See Notes to Condensed Financial Information of Registrant 2021 2020 2019 Revenues: Dividend income from subsidiaries $ — 1,395 36,000 Net investment income 10 9 — Total revenues 10 1,404 36,000 Expenses: Other operating expenses 2,660 3,322 5,358 Total expenses 2,660 3,322 5,358 Earnings/(loss) before Federal income taxes (2,650) (1,918) 30,642 Federal income taxes/(benefit) (537) (2,212) (1,739) Earnings (loss) before equity in earnings of affiliates (2,113) 294 32,381 Equity in earnings of affiliates 182,794 92,018 99,235 Net earnings $ 180,681 92,312 131,616 2021 2020 2019 Cash flows from operating activities: Net earnings $ 180,681 92,312 131,616 Adjustments to reconcile net earnings to cash provided by operating activities: Equity in earnings of affiliates (182,794) (92,018) (99,235) Depreciation and amortization 30 30 30 Change in: Federal income tax, net 2,721 16,397 (547) Deferred Federal income tax (537) (7,481) (637) Due to subsidiaries, net — — — Other, net (188) (830) (4) Net cash provided by (used in) operating activities (87) 8,410 31,223 Cash flows from investing activities: Payments to acquire businesses — — (30,154) Net cash provided by (used in) investing activities — — (30,154) Cash flows from financing activities: Dividends on common stock (1,272) (1,273) (1,273) Net cash provided by (used in) financing activities (1,272) (1,273) (1,273) Net increase (decrease) in cash, cash equivalents, and restricted cash (1,359) 7,137 (204) Cash, cash equivalents, and restricted cash at the beginning of year 8,376 1,239 1,443 Cash, cash equivalents, and restricted cash at the end of year $ 7,017 8,376 1,239 1. Basis of Presentation The accompanying condensed financial information of the Parent Company Only should be read in conjunction with the consolidated financial statements and notes thereto of National Western Life Group, Inc. ("NWLGI"). As discussed in Note (1) Summary of Significant Accounting Policies of the Consolidated Financial Statements, on October 1, 2015, National Western Life Insurance Company ("National Western" or "NWLIC") completed its previously announced holding company reorganization and became a wholly owned subsidiary of NWLGI. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. In the Parent Company Only condensed financial statements, NWLGI's investments in subsidiaries are stated at cost plus equity in undistributed income (losses) of subsidiaries since the date of acquisition. The subsidiary information presented is eliminated in the consolidated financial statements. NWLGI and its subsidiaries pay service fees to NWLIC which are included in expenses and equity earnings. These service fees are also eliminated in the consolidated financial statements. 2. Dividend Payments In the years ended December 31, 2021, 2020, and 2019, dividends of $0.0 million, $0.0 million and $36.0 million were declared and paid by NWLIC to NWLGI, respectively. In the years ended December 31, 2021, 2020, and 2019, dividends of $0.0 million, $1.4 million, and $0.0 million were declared and paid by NIS to NWLGI, respectively. These dividend payments are eliminated in the consolidated financial statements. |
Schedule IV - Reinsurance Infor
Schedule IV - Reinsurance Information | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
Schedule IV - Reinsurance Information | Gross Amount Ceded to Other Companies Assumed from Other Companies Net amount Percentage of Amount Assumed to Net (In thousands) 2021 Life insurance face in force $ 20,888,431 3,781,167 — 17,107,264 — % Premiums: Life insurance $ 92,891 6,419 194 86,666 0.2 % Accident and health insurance 3,346 — — 3,346 — % Annuities 31 — — 31 — % Total premiums $ 96,268 6,419 194 90,043 0.2 % 2020 Life insurance face in force $ 21,954,160 4,013,073 — 17,941,087 — % Premiums: Life insurance $ 95,579 6,217 205 89,567 0.2 % Accident and health insurance 2,956 — — 2,956 — % Annuities 19 — — 19 — % Total premiums $ 98,554 6,217 205 92,542 0.2 % 2019 Life insurance face in force $ 23,299,829 4,252,828 — 19,047,001 — % Premiums: Life insurance $ 92,844 6,041 212 87,015 0.2 % Accident and health insurance 3,214 — — 3,214 — % Annuities 19 — — 19 — % Total premiums $ 96,077 6,041 212 90,248 0.2 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | Description Balance at Beginning of Period (1) Charged to Costs and Expenses (2) Charged to Retained Earnings Reductions Balance at End of Period Valuation accounts deducted from applicable assets: Allowance for possible losses on mortgage loans: December 31, 2021 $ 2,486 501 — — 2,987 December 31, 2020 $ 675 1,307 504 — 2,486 December 31, 2019 $ 675 — — — 675 Allowance for current expected credit losses on debt securities December 31, 2021 $ — — — — — December 31, 2020 $ — — 3,334 (3,334) — Allowance for possible losses on real estate: December 31, 2021 $ 424 — — — 424 December 31, 2020 $ 596 — — (172) 424 December 31, 2019 $ 611 — — (15) 596 Notes: (1) Amounts were recorded to realized (gains) losses on investments prior to January 1, 2020, and net investment income, subsequent to January 1, 2020. (2) On January 1, 2020, the Company adopted ASU 2016-13 and recorded a transition adjustment to retained earnings. See accompanying report of Independent Registered Public Accounting Firm. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation National Western Life Insurance Company ("National Western" or "NWLIC") became a wholly owned subsidiary of National Western Life Group, Inc. ("NWLGI") effective October 1, 2015 under a previously announced holding company reorganization. As a result of the reorganization, NWLGI replaced National Western as the publicly held company. The accompanying Consolidated Financial Statements include the accounts of NWLGI and its wholly owned subsidiaries: National Western, Regent Care San Marcos Holdings, LLC, NWL Services, Inc., and N.I.S. Financial Services, Inc. ("NIS"). National Western's wholly owned subsidiaries include The Westcap Corporation, NWL Financial, Inc., NWLSM, Inc., Braker P III, LLC, and Ozark National Life Insurance Company ("Ozark National"). The 2019 results of operations for Ozark National and NIS include their respective business activity subsequent to their acquisition effective January 31, 2019 and all references herein to results for 2019 refer to their eleven month activity February 1, 2019 through December 31, 2019. All significant intercorporate transactions and accounts have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The accompanying Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant estimates in the accompanying Consolidated Financial Statements include (1) liabilities for future policy benefits, (2) valuation of derivative instruments, (3) recoverability and amortization of deferred policy acquisition costs ("DPAC"), deferred sales inducements ("DSI"), the value of business acquired ("VOBA"), and the cost of reinsurance ("COR"), (4) valuation allowances for deferred tax assets, (5) goodwill, (6) allowances for credit losses and, prior to January 1, 2020, other-than-temporary impairment losses on debt securities, (7) commitments and contingencies, and (8) allowance for credit losses for mortgage loans and real estate. During the year ended December 31, 2019, the Company incorporated accounting estimates for business combinations, value of business acquired, and fair value measurement as a result of its acquisition of Ozark National and NIS. National Western and Ozark National also file financial statements with insurance regulatory authorities which are prepared on the basis of statutory accounting practices prescribed or permitted by the Colorado Division of Insurance and Missouri Department of Commerce and Insurance, respectively, which are significantly different from Consolidated Financial Statements prepared in accordance with GAAP. These differences are described in detail in Note (9) Statutory Information . |
Investments | Investments Fixed Maturities and Equity Securities Historically, investments in debt securities the Company purchased with the intent to hold to maturity were classified as securities held-to-maturity and were reported at amortized cost (less declines in fair value that were deemed other-than-temporary). Effective December 31, 2020, the Company entered into a funds withheld reinsurance agreement under which certain securities were required to be reclassified from held-to-maturity to available-for-sale given a change in intent with respect to these securities by the reinsurer. Given this occurrence, it was determined that the held-to maturity classification of the other remaining held-to-maturity securities was no longer appropriate. Accordingly, all other debt securities previously classified as held-to-maturity were transferred at their fair value to available-for-sale as of December 31, 2020. Investments in debt securities classified as securities available-for-sale are reported in the accompanying Consolidated Financial Statements at fair value. Valuation changes resulting from changes in the fair value of the securities are reflected as a component of Stockholders' Equity in Accumulated other comprehensive income. These unrealized gains or losses in stockholders' equity are reported net of taxes and adjustments to deferred policy acquisition costs. As a result of executing a funds withheld coinsurance agreement at December 31, 2020, the Company implemented accounting policies related to trading debt securities in its financial statements. Trading securities represent debt securities that are included in the fund assets withheld as part of the funds withheld coinsurance agreement to support the policyholder liability obligations ceded to the reinsurer. Trading debt securities are reported in the accompanying Consolidated Financial Statements at their fair values with changes in their values reflected as a component of Net investment income in the Consolidated Statements of Earnings. Since these trading debt securities pertain to investment activities related to coinsurance agreements rather than as an income strategy based on active trading, they are classified as investing activities in the Consolidated Statements of Cash Flows. Transfers of securities between categories are recorded at fair value at the date of transfer. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to yield using the effective interest method. For mortgage-backed and asset-backed securities, the effective interest method is used based on anticipated prepayments and the estimated economic life of the securities. When estimates of prepayments change, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. The net investment in the securities is adjusted to the amount that would have existed had the new effective yield been applied at the time of acquisition (retrospective method). This adjustment is reflected in net investment income. For loan-backed securities not meeting the definition of "highly rated", the prospective method is evaluated and, if materially different from the retrospective method, utilized to account for these securities. The retrospective adjustment method has been used to value all loan-backed and structured securities included in the accompanying Consolidated Financial Statements. As further disclosed under Accounting Standards and Changes in Accounting in this note, the Company adopted new accounting guidance for credit loss recognition of debt securities in the held-to-maturity category as of January 1, 2020. Under this guidance, the Company employed a cohort cumulative loss rate method in estimating current expected credit losses with respect to its held-to-maturity debt securities. This method applies publicly available industry wide statistics of default incidence by defined segmentations of debt security investments combined with future assumptions regarding economic conditions (i.e. GDP forecasts) both in the near term and the long term. The Company utilized Moody's loss rates by industry type and credit ratings and applied them to each major bond category. These bond categories were further segmented by credit ratings and by maturities of two years and less and more than two years. The Company determines current expected credit losses for available-for-sale debt securities in accordance with FASB ASC Subtopic 326-30 when fair value is less than amortized cost, interest payments are missed and the security is experiencing credit issues. Provisions to and releases from the allowance for credit losses are recorded in net investment income in the Consolidated Statements of Earnings. Previous accounting guidance required the Company to review its portfolio for potential other-than-temporary impairments which would require that affected securities be written down to an adjusted cost basis with the amount of the writedown recorded as part of net realized gains and losses in the Consolidated Statements of Earnings. Under this previous guidance, the Company reviewed its investment portfolio for market value changes to identify changes caused by issuer credit deterioration, changes in market interest rates and changes in economic conditions. If this review indicated a decline in fair value that was other-than-temporary, the Company’s carrying amount in the investment was reduced to its estimated fair value as an other-than-temporary impairment ("OTTI"). In accordance with GAAP guidance the estimated credit versus non-credit components of the OTTI were bifurcated. The credit component was recorded in earnings and resulted in the establishment of a new cost basis for the security. The non-credit component was reclassified as unrealized loss in Other comprehensive income. The Company would not recognize impairment of securities due to changing of interest rates or market dislocations unless the Company had the intent to sell the securities prior to recovery or maturity. The Company considered a number of factors in determining whether the impairment was other-than-temporary. These included, but were not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline in fair value, 4) the intent and ability to hold the investment until recovery, 5) the time period during which the decline had occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performed a security-by-security review in evaluating the need for any other-than-temporary impairments. Although no set formula was used in this process, the investment performance, collateral position, and continued viability of the issuer were significant measures considered. Equity securities, common and non-redeemable preferred stocks are reported at fair value with changes in fair value included in net investment income in the Consolidated Statement of Earnings. Alternative Investments The Company invests in certain non-fixed income, alternative investments in the form of limited partnerships or similar legal structures (i.e. investment funds). The Company does not have a controlling interest and is not the primary beneficiary for any of its alternative investments; accordingly, these investments are accounted for using the equity method of accounting where the cost is recorded as an investment in the fund. Adjustments to the carrying amount reflect the pro rata ownership percentage of the operating results as indicated by the net asset value in the investment fund financial statements, which can be done on a lag of up to three months when investee information is not received in a timely manner. Alternative investments are reported in other long-term investments in the Consolidated Balance Sheets. The proportionate share of investment fund income is reported as a component of Net investment income in the Consolidated Statements of Earnings. Derivatives Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an underlying equity index. The equity return component of such policy contracts is identified separately and accounted for in future policy benefits as embedded derivatives on the Consolidated Balance Sheets. The remaining portions of these policy contracts are considered the host contracts and are recorded separately within future policy benefits as fixed annuity or universal life contracts. The host contracts are accounted for under debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. The Company purchases over-the-counter index options, which are derivative financial instruments, to hedge the equity return component of its index annuity and life products. The amounts which may be credited to policyholders are linked, in part, to the returns of the underlying index. The index options act as hedges to match closely the returns on the underlying index. Cash is exchanged upon purchase of the index options and no principal or interest payments are made by either party during the option periods, typically one year. Upon maturity or expiration of the options, cash is paid to the Company based on the underlying index performance and terms of the contract. As a result, amounts credited to policyholders' account balances are substantially offset by changes in the value of the options. The Company does not elect hedge accounting relative to derivative instruments. The derivatives are reported at their fair value in the accompanying Consolidated Financial Statements. Changes in the values of the index options and changes in the policyholder liabilities are both reflected in the Consolidated Statement of Earnings. Any gains or losses from the sale or expiration of the options, as well as period-to-period changes in values, are reflected as net investment income in the Consolidated Statement of Earnings. Any changes relative to the embedded derivatives associated with policy contracts are reflected in contract interest in the Consolidated Statement of Earnings. Although there is credit risk in the event of nonperformance by counterparties to the index options, the Company does not expect any counterparties to fail to meet their obligations, given their high credit ratings. In addition, credit support agreements are in place with all counterparties for option holdings in excess of specific limits, which further reduces the Company's credit exposure. At December 31, 2021 and 2020, the fair value of index options owned by the Company totaled $101.6 million and $132.8 million, respectively. Of these amounts, $54.4 million and $71.0 million represent net unrealized gains on the options held at December 31, 2021 and 2020, respectively. Additionally, effective December 31, 2020, the Company is a party to a coinsurance funds withheld reinsurance agreement under which identified assets are maintained in a funds withheld account. Under terms of the coinsurance funds withheld agreement, while the assets are withheld, the associated interest and credit risk of these assets are transferred to the reinsurer creating an embedded derivative on reinsurance in the funds withheld liability. Accordingly the Company is required to bifurcate the embedded derivative from the host contract in accordance with ASC 815-15. The bifurcated embedded derivative on reinsurance is computed as the fair value unrealized gain (loss) on the underlying funds withheld assets. This amount is included as a component of the funds withheld liability on the Consolidated Balance Sheets, with changes in the embedded derivative on reinsurance reported in the Net investment income in the Consolidated Statements of Earnings. The embedded derivative on reinsurance is classified as a Level 2 financial instrument in the fair value hierarchy because its valuation input is the fair value market adjustments on the underlying Level 2 debt securities. See Note (4) Fair Values of Financial Instruments for further details of fair value disclosures. In the Consolidated Statements of Cash Flows, changes in the funds withheld liability are reported in operating activities. Realized gains on funds withheld assets are transferred to the reinsurer and reported as investing activities in the Consolidated Statements of Cash Flows. The value of the embedded derivative at December 31, 2021 and 2020 was $84.7 million and $0.0 million, respectively. Mortgage Loans and Other Long-term Investments Mortgage loans and other long-term investments are primarily stated at cost, less unamortized discounts, deferred fees, and allowances for possible losses. Mortgage loans made by the reinsurer under the funds withheld reinsurance agreement are reported at fair value. Policy loans are stated at their aggregate unpaid balances. Real estate is stated at the lower of cost or fair value less estimated costs to sell. As further disclosed under Accounting Standards and Changes in Accounting in this note, effective January 1, 2020, the Company implemented FASB ASU 2016-13, Financial Instruments-Credit Losses , which revises the credit loss recognition criteria for mortgage loans replacing the existing incurred loss recognition model with an expected loss recognition model (“CECL”). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. For mortgage loan investments the Company is using the Weighted Average Remaining Maturity ("WARM") method, which uses an average annual charge-off rate applied to each mortgage loan risk category. The WARM method is also used to calculate the CECL allowance on unfunded mortgage loan commitments. The CECL allowance on unfunded mortgage loan commitments is reported in other liabilities in the Consolidated Balance Sheets, with changes in the CECL allowance related to unfunded commitments recorded through Other operating expenses in the Consolidated Statements of Earnings. Prior to January 1, 2020, impaired loans were those loans where it is probable that all amounts due according to contractual terms of the loan agreement would not be collected. The Company identified these loans through its normal loan review procedures. Impaired loans included: 1) nonaccrual loans, 2) loans which were 90 days or more past due, unless they were well secured and were in the process of collection, and 3) other loans which management believed were impaired. Impaired loans were measured based on: 1) the present value of expected future cash flows discounted at the loan's effective interest rate, 2) the loan's observable market price, or 3) the fair value of the collateral if the loan is collateral dependent. When the Company had loans considered impaired substantially all were measured at the fair value of the collateral. In limited cases, the Company used other methods to determine the level of impairment of a loan if such loan was not collateral dependent. Mortgage loans were placed on non-accrual status if there were concerns regarding the collectability of future payments. Interest income on non-performing loans is generally recognized on a cash basis. Once mortgage loans were classified as nonaccrual loans, the resumption of the interest accrual would commence only after all past due interest had been collected or the mortgage loan had been restructured such that the collection of interest was considered likely. Accrued Investment Income The accrual of investment income on invested assets is discontinued when it is determined that it is probable that the income will not be collected. Realized Gains and Losses on Investments Realized gains and losses for securities available-for-sale, securities held-to-maturity, and trading securities are included in earnings and are derived using the specific identification method for determining the cost of securities sold or called. Prepayment penalty fees received from issuers that call their securities before maturity are excluded from the calculation of realized gain or loss and are included as a component of investment income. After an OTTI write down of fixed maturities due to a credit-only impairment, the cost basis is not adjusted for subsequent recoveries in fair value. For fixed maturities for which a reasonable estimate of future cash flows are available after a write down, the discount or reduced premium recorded, based on the new cost basis, is amortized over the remaining life of the security. Amortization in this instance is computed using the prospective method and the current estimate of the amount and timing of future cash flows. Fair Values Fair values of equity securities are based on quoted market prices in active markets when available. Fair values of fixed maturities are based on market prices in the fixed income markets. Fair values of derivative investments are based on the latest counterparty model market prices. Items not readily marketable are generally based on values that are representative of the fair values of comparable issues. Fair values for all securities are reviewed for reasonableness by considering overall market conditions and values for similar securities. See Note (4) Fair Values of Financial Instruments for more information on fair value policies, including assumptions and the amount of securities priced using the valuation models. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Statements of Cash Flows, the Company considers all short-term investments with a maturity at the date of purchase of three months or less to be cash equivalents. |
Deferred Policy Acquisition Costs, Deferred Sales Inducements, Value of Business Acquired, and Cost of Reinsurance | Deferred Policy Acquisition Costs, Deferred Sales Inducements, Value of Business Acquired, and Cost of Reinsurance Deferred policy acquisition costs ("DPAC") include certain costs of successfully acquiring new insurance business, including commissions and other expenses related directly to the production of new business, to the extent recoverable from future policy revenues and gross profits (indirect or unsuccessful acquisition costs, maintenance, product development and overhead expenses are charged to expenses as incurred). Also included are premium bonuses and bonus interest credited to contracts during the first contract year only. These deferred sales inducements ("DSI") are also deferrable to the extent recoverable. For interest sensitive universal life and annuity products, these costs are amortized in relation to the present value of expected gross margins or gross profits on these policies. For nonparticipating traditional life products, these costs are amortized over the premium paying period of the related policies, in proportion to the ratio of annual premium revenues to total anticipated premium revenues. Such anticipated premium revenues are estimated using the same assumptions used for computing liabilities for future policy benefits. The Company evaluates the recoverability of deferred policy acquisition and sales inducement costs on a quarterly basis. In this evaluation, the Company considers estimated future gross profits or future premiums, as applicable for the type of contract. The Company also considers expected mortality, interest earned and credited rates, persistency, and expenses. In accordance with GAAP guidance, the Company must also write off deferred policy acquisition costs and unearned revenue liabilities upon internal replacement of certain contracts as well as annuitizations of deferred annuities. All insurance and investment contract modifications and replacements are reviewed to determine if the internal replacement results in a substantially changed contract. If so, the acquisition costs, sales inducements and unearned revenue associated with the new contract are deferred and amortized over the lifetime of the new contract. In addition, the existing deferred policy acquisition costs, sales inducement costs and unearned revenue balances associated with the replaced contract are written off. If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred. In addition, the existing deferred policy acquisition costs, sales inducement costs or unearned revenue balance associated with the replaced contract are not written off, but instead are carried over to the new contract . Amortization of DPAC and DSI is reviewed each year and adjusted retrospectively through an unlocking process when estimates of current or future gross profits/margins (including the impact of investment gains and losses) to be realized from a group of products are revised. The value of insurance in force business acquired ("VOBA") is a purchase accounting convention for life insurance companies in business combinations based upon an actuarial determination of the difference between the fair value of policy liabilities acquired and the same policyholder liabilities measured in accordance with the acquiring company's accounting policies. The difference, referred to as VOBA, is an intangible asset subject to periodic amortization. It represents the portion of the purchase price allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. The Company began performing recoverability testing in 2020 of value business acquired. |
Reinsurance | Reinsurance The Company cedes insurance and investment contracts under a coinsurance with funds withheld arrangement, following reinsurance accounting for transactions that provides indemnification against loss or liability relating to insurance risk. To meet risk transfer requirements, a reinsurance agreement must transfer insurance risk arising from uncertainties about both underwriting and timing risks. Cessions under reinsurance do not discharge the Company's obligations as the primary insurer. Assets and liabilities are presented on a gross basis on the Consolidated Balance Sheets. Under the funds withheld reinsurance agreement, funds withheld assets consist of a segregated portfolio of cash and invested assets which is sufficient to support the current balance of statutory reserves. The fair value of the funds withheld is recorded as a funds withheld liability and any excess or shortfall in relation to statutory reserves is settled periodically. Refer to Note (5) Reinsurance for more information. |
Other Assets | Other Assets Other assets include property and equipment, primarily comprised of capitalized software costs, furniture and equipment and leasehold improvements, which are reported at cost less allowances for depreciation and amortization. Costs incurred in the preliminary stages of developing internal-use software as well as costs incurred post-implementation for maintenance are expensed. Capitalization of internal-use software costs occurs after management has authorized the project and it is probable that the software will be used as intended. Amortization of software costs begins after the software has been placed in production. Depreciation and amortization expense is computed primarily using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years. Leasehold improvements are amortized over the lesser of the economic useful life of the improvement or the term of the lease. Capitalized software, property, and equipment had a carrying value of $165.3 million at December 31, 2021 and $155.9 million at December 31, 2020, and accumulated depreciation and amortization of $84.0 million at December 31, 2021 and $72.6 million at December 31, 2020. Depreciation and amortization expense for capitalized software, furniture and equipment, and leasehold improvements was $13.0 million, $11.9 million, and $10.7 million in 2021, 2020, and 2019, respectively. Other assets also include goodwill at December 31, 2021 and 2020 of $13.9 million related to the excess of the amounts paid to acquire companies over the fair value of other net tangible and intangible assets acquired. It represents the future economic benefits arising from assets acquired and liabilities assumed that could not be individually identified. Goodwill is not amortized but is subject to annual impairment analysis at the same time each year or more frequently if indicators are present. The Company annually reviews its goodwill balance to determine if indicators suggest an impairment may have occurred and would suggest the value has declined below the carrying value of goodwill. Refer to Note (7) Goodwill and Specifically Identifiable Intangible Assets for further information. |
Future Policy Benefits | Future Policy Benefits Under GAAP, the liability for future policy benefits on traditional products has been calculated using assumptions as to future mortality (based on the 1965-1970, 1975-1980, and 2001 Select and Ultimate mortality tables), interest ranging from 3.25% to 8.00%, and withdrawals based on Company experience. For universal life and annuity contracts, the liability for future policy benefits represents the account balance. Fixed-index products combine features associated with traditional fixed annuities and universal life contracts, with the option to have interest rates linked in part to an equity index. In accordance with GAAP guidance , the equity return component of such policy contracts must be identified separately and accounted for as embedded derivatives. The remaining portions of these policy contracts are considered the host contracts and are recorded separately as fixed annuity or universal life contracts. The host contracts are accounted for under GAAP guidance provisions that require debt instrument type accounting. The host contracts are recorded as discounted debt instruments that are accreted, using the effective yield method, to their minimum account values at their projected maturities or termination dates. |
Other Policy Claims and Benefits | Other Policy Claims and Benefits Unearned revenue reserves are maintained that reflect the unamortized balance of charges assessed to interest sensitive contract holders which serve as compensation for services to be performed over future periods (policy premium loads). These charges have been deferred and are being recognized in income over the period benefited using the same assumptions and factors used to amortize deferred acquisition costs. |
Stock Compensation | Share-based Compensation The Company accounts for share-based compensation under GAAP using liability accounting, and measures compensation cost using the fair value method at each reporting date. For stock appreciation rights, fair value is determined using an option pricing model that takes into account various information and assumptions including the Company's stock price, volatility, option price, vesting dates, exercise dates and projected lapses from forfeiture or termination. |
Deferred Income Taxes | Deferred Income Taxes Federal income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance for deferred tax assets is provided if all or some portion of the deferred tax asset may not be realized. An increase or decrease in a valuation allowance that results from a change in circumstances that affects the realizability of the related deferred tax asset is included in income in the period the change occurs. |
Recognition of Premiums, Contract Revenues and Costs | Recognition of Premiums, Contract Revenues and Costs Premiums on traditional life insurance products are recognized as revenues as they become due from policyholders. Benefits and expenses are matched with premiums in arriving at profits by providing for policy benefits over the lives of the policies and by amortizing costs over premium-paying periods of the policies. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income, as well as other comprehensive income items not recognized through net income. Other comprehensive income includes unrealized gains and losses on available-for-sale securities as well as the underfunded obligations for certain retirement and postretirement benefit plans. These items are included in accumulated other comprehensive income, net of tax and other offsets, in stockholders’ equity. The changes in unrealized gains and losses reported in the Consolidated Statements of Comprehensive Income (Loss), excludes net investment gains and losses included in net income that represent transfers from unrealized to realized gains and losses. These transfers are further discussed in Note (2) Investments . The components of the underfunded obligation for certain retirement and postretirement benefit plans are provided in Note (14) Pension and Other Postretirement Plans |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. For example, significant estimates and assumptions are utilized in the valuation of investments, determination of credit losses and impairments of investments, recoverability and amortization of deferred policy acquisition costs, deferred sales inducements and value of business acquired, calculation of policyholder liabilities and accruals and determination of pension expense. It is reasonably possible that actual experience could differ from the estimates and assumptions utilized, which could have a material impact on the Consolidated Financial Statements. |
Accounting Standards and Changes in Accounting | Accounting Standards and Changes in Accounting Recent accounting pronouncements not yet adopted In August 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-12 Financial Services-Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"). This update pertains to long-duration contracts and improving the timeliness of recognizing changes in the liability for future policy benefits, simplifying accounting for certain market-based options, simplifying the amortization of deferred policy acquisition costs, and improving the effectiveness of required disclosures. Amendments include the following: A. Require an insurance entity to (1) review and update assumptions used to measure cash flows at least annually (with changes recognized in net income) and (2) update discount rate assumptions at each quarterly reporting date with the impact recognized in other comprehensive income ("OCI"). B. Require an insurance entity to measure all market risk benefits, which are contracts or contract features that provide protection to the policyholder from capital market risk, associated with deposit (i.e. account balance) contracts at fair value. The periodic change in fair value attributable to change in instrument-specific credit risk is recognized in OCI. C. Simplify amortization of deferred policy acquisition costs and other balances amortized in proportion to premiums, gross profits, or gross margins and require those balances be amortized on a constant basis over the expected term of the related contracts. Deferred policy acquisition costs are required to be written off for unexpected contract terminations but are not subject to impairment testing. D. Require an insurance entity to add disclosures of disaggregated rollforwards of significant insurance liabilities and other account balances (i.e. beginning to ending balances of the liability for future policy benefits, policyholder account balances, market risk benefits, separate account liabilities, and deferred acquisition costs). The insurance entity must also disclose information about significant inputs, judgments, assumptions, and methods used in measurement, including changes in those inputs, judgments, and assumptions, and the effect of those changes on measurement. In November 2020, the FASB released ASU 2020-11 Financial Services – Insurance (Topic 944) . The amendments in this update deferred the effective date of adoption of ASU 2018-12 for all entities by one year. In particular, for publicly traded business entities, adoption of LDTI was made effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Accordingly, the Company's required adoption date is January 1, 2023. To date, the Company has: (1) performed a preliminary gap analysis identifying contracts and contract features in scope of this guidance, (2) identified the actuarial models, systems and processes to be updated, (3) identified and gathered cash flow data to be extracted from the Company's policy administrative systems necessary for implementation of this standard, (4) developed valuation models specific to LDTI for valuation date calculations integrating historical cash flows, and (5) established work streams for evaluating and finalizing key accounting policies, determining the impact to financial reporting charts of account, and developing the format and content of the new required disclosures. Adoption of this standard will significantly change the accounting and reporting for the Company's insurance and annuity products. As the Company progresses through its implementation of the requirements of the standard, it will be better able to assess the impact to its Consolidated Financial Statements. Accounting pronouncements adopted In December 2019, the FASB issued ASU 2019-12 Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740) , which simplifies various aspects of the income tax accounting guidance and is applied using different approaches depending on the specific amendment. The amendments were effective for fiscal periods beginning after December 15, 2020. The adoption of this ASU did not have a material impact on the results of operations or financial position of the Company. In June 2016, the FASB released ASU 2016-13, Financial Instruments-Credit Losses , which revises the credit loss recognition criteria for certain financial assets measured at amortized cost. The new guidance replaces the existing incurred loss recognition model with an expected loss recognition model (“CECL”). The objective of the CECL model is for the reporting entity to recognize its estimate of current expected credit losses for affected financial assets in a valuation allowance deducted from the amortized cost basis of the related financial assets that results in presenting the net carrying value of the financial assets at the amount expected to be collected. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . The amendments in this Update add clarification and correction to ASU 2016-13 around accrued interest, transfers between classifications or categories for loans and debt securities, consideration of recoveries in estimating allowances, reinsurance recoveries, consideration of prepayments and estimated costs to sell when foreclosure is probable. In November, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. The amendments in this Update add clarification and correction to ASU 2016-13 around expected recoveries for purchased financial assets with credit deterioration, transition relief for troubled debt restructurings, disclosures related to accrued interest receivables, and financial assets secured by collateral maintenance provisions. The guidance for these pronouncements was effective for interim and annual periods beginning after December 15, 2019, and for most affected instruments must be adopted using a modified retrospective approach, with a cumulative effect adjustment recorded to beginning retained earnings. Effective January 1, 2020, the Company adopted the expected loss recognition model related to mortgage loans, debt securities held to maturity and reinsurance recoverable using a modified retrospective approach. The change in accounting, net of tax, of $3.0 million was recorded as a charge to retained earnings in the first quarter of 2020 reflecting initial allowance for estimated credit losses balances of $1.2 million on mortgage loans and $3.3 million on debt securities held to maturity. The estimated credit losses for the reinsurance recoverable were immaterial to the financial statements, but are monitored on a quarterly basis for any changes. Refer to Note (2) Investments for more information. Certain disclosures required by ASU 2016-13 are not included in the Consolidated Financial Statements as the impact of this standard was not material. In April 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The new guidance simplifies the current two-step goodwill impairment test by eliminating Step 2 of the test. The new guidance requires a one-step impairment test in which an entity compares the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, if any. The amendments will be effective for annual goodwill impairment tests occurring after December 15, 2019. The Company elected to adopt the requirements of this update in its Consolidated Financial Statements for the year ended December 31, 2019. The adoption of this amendment did not have an impact on the Company’s results of operations or financial position. In August 2018, FASB issued ASU 2018-13 F air Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure requirements for Fair Value Measurement. This update removed disclosures for 1) amount of and reasons for transfers between Level 1 and Level 2 for fair value hierarchy, 2) policy for timing of transfers between levels, 3) valuation process for Level 3 fair value measurements. This update also added disclosure requirement as follows: 1) changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements held at end of reporting period; 2) range and weighted average (or other reasonable quantitative measurement) of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments will be effective for interim periods beginning after December 15, 2019. The Company elected to adopt the requirements of this update in its Consolidated Financial Statements for the year ended December 31, 2019. The adoption of this amendment did not have an impact on the Company’s results of operations or financial position. In August 2018, FASB issued ASU 2018-14 Compensation-Retirement Benefits - Defined Benefit Plans-General (Subtopic 715-20) Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . This update removed disclosures for 1) amounts in AOCI expected to be recognized as components of net periodic benefit cost over the next fiscal year, 2) amount and timing of plan assets expected to be returned to the employer, 3) related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan, 4) the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of the net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. This update also added disclosures as follows: 1) weighted-average interest crediting rates for cash balance plans and other plans with promised crediting rates, 2) explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. Finally, this update clarified that the following information for defined benefit pension plans should be disclosed: 1) projected benefit obligation (PBO) and fair value of plan assets for plans with PBO in excess of plan assets, 2) accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal periods ending after December 31, 2020. The Company elected to adopt the requirements of this update in its Consolidated Financial Statements for the year ended December 31, 2019. The adoption of this amendment did not have an impact on the Company’s results of operations or financial position. In August 2018, the SEC released a final rule updating disclosure requirements, Disclosure Update and Simplification, which resulted in the additional interim disclosure of an analysis of changes in stockholders’ equity to be required for the current and comparative quarter and year-to-date interim periods. Registrants are required to provide an analysis of changes in each caption of stockholders’ equity and noncontrolling interests, which will be accompanied by dividends per share and in the aggregate for each class of shares. The disclosure must be presented in the form of a reconciliation, either as a separate statement or in the footnotes. The adoption of this rule in 2019 did not have a material effect on the results of operations or financial position of the Company as this information in year-to-date format was already provided. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities , which amends the amortization period for certain purchased callable debt securities held at a premium. The amortization period for premiums is being shortened to the earliest call date. This guidance was effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The adoption of this ASU in 2019 did not have a material effect on the results of operations or financial position of the Company. In June 2018, the FASB released ASU 2018-07 Compensation - Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting . This update largely aligns the accounting for share-based payment awards issued to employees and nonemployees. Previously, nonemployee stock compensation was accounted for under Subtopic 505-50 but will now fall under Topic 718. Changes to the accounting for nonemployee awards include 1) measurement based on fair value of the equity instrument at grant date, rather than previous requirement to measure based on the more reliable option of the fair value of the consideration or the fair value of the equity instrument, 2) initial measurement at grant date, rather than the earlier of the date at which commitment for performance is reached or performance is complete, and 3) when performance conditions are present, the probability of satisfying performance conditions should be considered in measurement rather than the previous requirement to measure at the lowest aggregate fair value. The amendments in the new guidance were effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal period. There was no impact to the Company’s financial position, results of operations or cash flows as the result of the adoption of this ASU. Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not, or are not believed by management to, have a material impact on the Company’s present or future Consolidated Financial Statements. |
Significant Accounting Policies
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Unrealized Gains and Losses on Available-for-Sale Securities Reclassified out of Accumulated Other Comprehensive Income | The table below shows the unrealized gains and losses on available-for-sale securities that were reclassified out of accumulated other comprehensive income for the years ended December 31, 2021, 2020 and 2019. Affected Line Item In the Consolidated Statements of Earnings Amount Reclassified from Accumulated Other Comprehensive Income Years Ended December 31, 2021 2020 2019 (In thousands) Other net investment gains $ 16,372 5,677 2,787 Net OTTI losses recognized in earnings — — (7,847) Earnings (loss) before Federal income taxes 16,372 5,677 (5,060) Federal income taxes (benefit) 3,438 1,192 (1,063) Net earnings (loss) $ 12,934 4,485 (3,997) |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Components of Net Investment Income | The major components of net investment income are as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Gross investment income: Debt and equity securities $ 309,082 373,479 403,372 Mortgage loans 20,155 13,162 12,595 Policy loans 2,667 3,361 3,539 Short-term investments 293 2,160 2,974 Other investment assets 16,321 12,698 13,057 Total investment income 348,518 404,860 435,537 Less investment expenses 2,762 2,412 3,252 Net investment income (excluding derivatives and trading securities) 345,756 402,448 432,285 Index option derivative gain 120,718 14,754 123,207 Embedded derivative on reinsurance 84,725 — — Trading securities market adjustments 11,331 — — Net investment income $ 562,530 417,202 555,492 |
Schedule of Mortgage Loans by Geographic Region | The diversification of the portfolio by geographic region, property type, and loan-to-value ratio was as follows: December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Geographic Region: West South Central $ 237,644 48.5 $ 201,501 60.1 East North Central 61,397 12.6 16,478 4.9 South Atlantic 81,847 16.7 51,857 15.5 East South Central 20,069 4.1 27,590 8.2 West North Central 12,213 2.5 12,423 3.7 Pacific 13,800 2.8 6,228 1.9 Middle Atlantic 36,296 7.4 1,975 0.6 Mountain 26,613 5.4 16,955 5.1 Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 |
Schedule of Mortgage Loans by Property Type | December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Property Type: Retail $ 164,895 33.7 $ 92,173 27.5 Office 142,824 29.2 111,735 33.3 Storage facility 73,401 15.0 53,591 16.0 Industrial 34,212 7.0 29,131 8.7 Hotel 23,748 4.8 8,372 2.5 Land/lots 4,597 0.9 4,680 1.4 Apartments 38,920 7.9 29,743 8.9 Residential 1,905 0.4 — — All other 5,377 1.1 5,582 1.7 Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 |
Schedule of Mortgage Loans by Loan-to-Value Ratio | December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Mortgage Loans by Loan-to-Value Ratio (1): Less than 50% $ 100,806 20.6 $ 66,635 19.9 50% to 60% 128,191 26.2 64,536 19.3 60% to 70% 202,670 41.3 153,414 45.8 70% to 80% 58,212 11.9 50,422 15.0 80% and above — — — — Gross balance 489,879 100.0 335,007 100.0 Market value adjustment 412 0.1 — — Allowance for credit losses (2,987) (0.6) (2,486) (0.7) Totals $ 487,304 99.5 $ 332,521 99.3 (1) Loan-to-Value Ratio is determined using the most recent appraised value. Appraisals are required at the time of funding and may be updated if a material change occurs from the original loan agreement. |
Schedule of Allowance for Mortgage Loan | The following table represents the mortgage loan allowance for credit losses. Years Ended December 31, 2021 2020 (In thousands) Mortgage Loans Allowance for Credit Losses: Balance, beginning of the period $ 2,486 675 Impact of adoption of new accounting guidance — 504 Provision during the period 501 1,307 Releases — — Balance, end of period $ 2,987 2,486 |
Schedule of Contractual Maturities of Mortgage Loan Principal Balances | The contractual maturities of mortgage loan principal balances at December 31, 2021 and 2020 were as follows: December 31, 2021 December 31, 2020 Amount % Amount % (In thousands) (In thousands) Principal Balance by Contractual Maturity: Due in one year or less $ 13,422 2.7 $ 4,208 1.3 Due after one year through five years 127,766 26.1 60,826 18.1 Due after five years through ten years 222,444 45.4 154,787 46.1 Due after ten years through fifteen years 115,313 23.5 107,662 32.1 Due after fifteen years 11,280 2.3 7,977 2.4 Totals $ 490,225 100.0 $ 335,460 100.0 |
Schedule of Amortized Costs and Fair Values of Securities Available for Sale | The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2021. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses (In thousands) Debt securities: U.S. Agencies $ 43,472 1,071 — 44,543 — U.S. Treasury 2,469 21 — 2,490 — States and political subdivisions 479,148 27,733 (921) 505,960 — Foreign governments 62,979 293 (881) 62,391 — Public utilities 745,359 39,919 (309) 784,969 — Corporate 6,322,471 391,287 (12,805) 6,700,953 — Commercial mortgage-backed 27,016 741 — 27,757 — Residential mortgage-backed 530,702 18,921 — 549,623 — Asset-backed 390,634 2,123 (2,497) 390,260 — Totals $ 8,604,250 482,109 (17,413) 9,068,946 — The table below presents amortized costs and fair values of debt securities available-for-sale at December 31, 2020. Debt Securities Available-for-Sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) Debt securities: U.S. Agencies $ 72,945 $ 2,496 $ — 75,441 U.S. Treasury 3,152 126 $ — 3,278 States and political subdivisions $ 528,266 37,909 (86) 566,089 Foreign governments 11,115 334 — 11,449 Public utilities 831,990 77,920 — 909,910 Corporate 7,376,104 727,470 (4,601) 8,098,973 Commercial mortgage-backed 30,108 1,363 — 31,471 Residential mortgage-backed 902,974 50,970 (156) 953,788 Asset-backed 117,889 2,635 — 120,524 Totals $ 9,874,543 $ 901,223 $ (4,843) $ 10,770,923 |
Schedule of Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position | The following table shows the gross unrealized losses and fair values of the Company's available-for-sale investments by investment category and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2021. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) Debt securities: States and political subdivisions $ 38,853 (779) 1,790 (142) 40,643 (921) Foreign governments 31,862 (881) — — 31,862 (881) Public utilities 15,286 (309) — — 15,286 (309) Corporate bonds 541,974 (11,378) 25,319 (1,427) 567,293 (12,805) Asset-backed 188,960 (2,497) — — 188,960 (2,497) Total $ 816,935 (15,844) 27,109 (1,569) 844,044 (17,413) The following table shows the gross unrealized losses and fair values of the Company's available-for-sale investments by investment category, and length of time the individual securities have been in a continuous unrealized loss position at December 31, 2020. Debt Securities Available-For-Sale Less than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized (In thousands) Debt securities: States and political subdivisions $ — — 1,762 (86) 1,762 (86) Public utilities — — — — — — Corporate bonds 174,252 (3,836) 36,152 (765) 210,404 (4,601) Residential mortgage-backed — — 500 (156) 500 (156) Total $ 174,252 (3,836) 38,414 (1,007) 212,666 (4,843) |
Schedule of Amortized Cost and Fair Value of Investments In Debt Securities | The amortized cost and fair value of investments in debt securities at December 31, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Debt Securities Available-for-Sale Amortized Cost Fair Value (In thousands) Due in 1 year or less $ 256,576 258,754 Due after 1 year through 5 years 3,198,107 3,353,853 Due after 5 years through 10 years 2,205,479 2,355,857 Due after 10 years 1,995,736 2,132,842 7,655,898 8,101,306 Mortgage and asset-backed securities 948,352 967,640 Total before allowance for credit losses 8,604,250 9,068,946 Allowance for credit losses — — Total $ 8,604,250 9,068,946 |
Schedule of Realized Gains (Losses) Excluding Impairments | The table below presents realized gains and losses for the periods indicated. Years Ended December 31, 2021 2020 2019 (In thousands) Available-for-sale debt securities: Realized gains on disposal $ 16,377 5,677 3,798 Realized losses on disposal (5) — (1,011) Held-to-maturity debt securities: Realized gains on redemption — 12,734 4,390 Realized losses on redemption — (1) — Real estate (1,421) 2,661 6,911 Mortgage loans — — — Other (1) — — Totals $ 14,950 21,071 14,088 |
Allowance for Debt Securities Held to Maturity | The following table presents the allowance for credit losses for years ended December 31, 2021 and 2020. December 31, 2021 2020 2021 2020 Debt Securities Held-to-Maturity Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — (3,334) — — Balance, end of period $ — — — — |
Allowance for Debt Securities Available for Sale | The following table presents the allowance for credit losses for years ended December 31, 2021 and 2020. December 31, 2021 2020 2021 2020 Debt Securities Held-to-Maturity Debt Securities Available-for- Sale (In thousands) Balance, beginning of period $ — — — — Provision January 1, 2020 for adoption of new accounting guidance — 3,334 — — (Releases)/provision during period — (3,334) — — Balance, end of period $ — — — — |
Schedule of Net Unrealized Gains (Losses) on Investment Securities | Net unrealized gains (losses) on investment securities included in stockholders' equity at December 31, 2021 and 2020, are as follows: December 31, 2021 2020 (In thousands) Gross unrealized gains $ 482,109 901,222 Gross unrealized losses (17,413) (4,843) Adjustments for: Deferred policy acquisition costs and sales inducements (178,340) (366,327) Deferred Federal income tax expense (60,135) (111,311) Net unrealized gains on investment securities $ 226,221 418,741 |
Derivative Investments (Tables)
Derivative Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | The tables below present the fair value of derivative instruments as of December 31, 2021 and 2020. December 31, 2021 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 101,622 Fixed-index products Universal Life and Annuity Contracts $ 142,761 Embedded derivative on reinsurance contract Funds Withheld Liability (84,725) Total $ 101,622 $ 58,036 December 31, 2020 Asset Derivatives Liability Derivatives Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) (In thousands) Derivatives not designated as hedging instruments: Equity index options Derivatives, Index Options $ 132,821 Fixed-index products Universal Life and Annuity Contracts $ 161,351 Total $ 132,821 $ 161,351 |
Schedule of Effect of Derivative Instruments in Consolidated Statements of Earnings | The table below presents the effect of derivative instruments in the Consolidated Statements of Earnings for the years ended December 31, 2021, 2020 and 2019. Amount of Gain or (Loss) Recognized In Income on Derivatives Derivatives Not Designated as Hedging Instruments Location of Gain or (Loss) Recognized In Income on Derivatives 2021 2020 2019 (In thousands) Equity index options Net investment income $ 120,718 14,754 123,207 Fixed-index products Universal life and annuity contract interest (133,327) (44,970) (91,424) Embedded derivative on reinsurance contract Net investment income 84,725 — — $ 72,116 (30,216) 31,783 |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s assets and liabilities that are measured at fair value on a recurring basis as of the date indicated. December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 — 1,002,616 74,822 Equity securities 28,217 23,795 4,422 — Mortgage loans 8,469 — — 8,469 Derivatives, index options 101,622 — — 101,622 Total assets $ 10,284,692 23,795 9,749,022 511,875 Policyholder account balances (a) $ 142,761 — — 142,761 Other liabilities (b) (76,856) — (84,725) 7,869 Total liabilities $ 65,905 — (84,725) 150,630 December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale $ 10,770,923 — 10,770,923 — Equity securities 17,744 17,744 — — Derivatives, index options 132,821 — — 132,821 Total assets $ 10,921,488 17,744 10,770,923 132,821 Policyholder account balances (a) $ 161,351 — — 161,351 Other liabilities (c) 6,202 — — 6,202 Total liabilities $ 167,553 — — 167,553 (a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value. (b) Represents the liability for share-based compensation and the embedded derivative for funds withheld. (c) Represents the liability for share-based compensation. |
Schedule of Significant Unobservable Inputs for Fair Value Measurements | The following tables provide additional information about fair value measurements for which significant unobservable inputs (Level 3) were utilized to determine fair value. December 31, 2021 Assets Debt Securities, Available-for-Sale Trading Securities Derivatives, Index Options Mortgage Loans Total Assets (In thousands) Beginning balance, January 1, 2021 $ — — 132,821 — 132,821 Total realized and unrealized gains (losses): Included in net earnings — 757 120,717 412 121,886 Included in other comprehensive income 876 — — — 876 Purchases, sales, issuances and settlements, net: Purchases 245,456 75,265 47,203 8,103 376,027 Sales — — — — — Issuances — — — — — Settlements (13,031) (1,200) (199,119) (46) (213,396) Transfers into (out of) Level 3 93,661 — — — 93,661 Balance at end of period $ 326,962 74,822 101,622 8,469 511,875 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — 757 54,420 412 55,589 Benefits and expenses — — — — — Total $ — 757 54,420 412 55,589 December 31, 2021 Other Liabilities Policyholder Account Balances Share-based Comp Total Other Liabilities (In thousands) Beginning balance, January 1, 2021 161,351 6,202 167,553 Total realized and unrealized gains (losses): Included in net earnings 133,326 5,581 138,907 Included in other comprehensive income — — — Purchases, sales, issuances and settlements, net: Purchases 47,203 — 47,203 Sales — — — Issuances — 182 182 Settlements (199,119) (4,096) (203,215) Transfers into (out of) Level 3 — — — Balance at end of period $ 142,761 7,869 150,630 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income — — — Benefits and expenses 54,420 5,581 60,001 Total $ 54,420 5,581 60,001 December 31, 2020 Assets Other Liabilities Derivatives, Index Options Total Assets Policyholder Account Balances Share-based Comp Contingent Consideration Total Other Liabilities (In thousands) Beginning balance, January 1, 2020 $ 157,588 157,588 155,902 11,225 4,076 171,203 Total realized and unrealized gains (losses): Included in net earnings 14,754 14,754 44,970 (2,350) (4,076) 38,544 Included in other comprehensive income — — — — — — Purchases, sales, issuances and settlements, net: Purchases 61,837 61,837 61,837 — — 61,837 Sales — — — — — — Issuances — — — 164 — 164 Settlements (101,358) (101,358) (101,358) (2,837) — (104,195) Transfers into (out of) Level 3 — — — — — — Balance at end of period $ 132,821 132,821 161,351 6,202 — 167,553 Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: Net investment income $ 70,984 70,984 — — — — Benefits and expenses — — 70,984 (2,350) (4,076) 64,558 Total $ 70,984 70,984 70,984 (2,350) (4,076) 64,558 |
Schedule of Fair Value, Valuation Techniques and Significant Unobservable Inputs for Financial Instruments Categorized as Level 3 | The following table presents the valuation method for financial assets and liabilities categorized as level 3, as well as the unobservable inputs used in the valuation of those financial instruments: December 31, 2021 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Debt securities, available-for-sale $ 113,268 Discounted cash flow Discount rate 2.40% - 6.14% (4.06%) Derivatives, index options 101,622 Broker prices Implied volatility 11.76% - 16.54% (14.55%) Mortgage loans 8,469 Discounted cash flow Spread 100 - 250 bps Total assets $ 223,359 Liabilities: Policyholder account balances $ 142,761 Deterministic cash flow model Projected option cost 0.03% - 14.49% (2.65%) Share based compensation 7,869 Black-Scholes model Expected term 1.9 to 10.0 years Expected volatility 35.05% Total liabilities $ 150,630 December 31, 2020 Fair Value Valuation Technique Unobservable Input Range (Weighted Average) (In thousands) Assets: Derivatives, index options $ 132,821 Broker prices Implied volatility 12.96% - 53.69% (20.70%) Total assets $ 132,821 Liabilities: Policyholder account balances $ 161,351 Deterministic cash flow model Projected option cost 0.0% - 45.04% (3.27%) Share based compensation 6,202 Black-Scholes model Expected term 1.0 to 9.9 years Expected volatility 33.47% Total liabilities $ 167,553 |
Schedule of Assets by Pricing Source and Fair Value Hierarchy Measured at Fair Value on Recurring Basis | The following table presents, by pricing source and fair value hierarchy level, the Company’s assets that are measured at fair value on a recurring basis: December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Debt securities, available-for-sale: Priced by third-party vendors $ 8,955,678 — 8,741,984 213,694 Priced internally 113,268 — — 113,268 Subtotal 9,068,946 — 8,741,984 326,962 Debt securities, trading: Priced by third-party vendors 1,077,438 — 1,002,616 74,822 Priced internally — — — — Subtotal 1,077,438 — 1,002,616 74,822 Equity securities: Priced by third-party vendors 28,217 23,795 4,422 — Priced internally — — — — Subtotal 28,217 23,795 4,422 — Mortgage loans: Priced by third-party vendors — — — — Priced internally 8,469 — — 8,469 Subtotal 8,469 — — 8,469 Derivatives, index options: Priced by third-party vendors 101,622 — — 101,622 Priced internally — — — — Subtotal 101,622 — — 101,622 Total $ 10,284,692 23,795 9,749,022 511,875 Percent of total 100.0 % 0.2 % 94.8 % 5.0 % |
Schedule of Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows: December 31, 2021 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 9,068,946 9,068,946 — 8,741,984 326,962 Debt securities, trading 1,077,438 1,077,438 — 1,002,616 74,822 Cash and cash equivalents 714,624 714,624 702,632 11,992 — Mortgage loans 487,304 513,246 — — 513,246 Real estate 28,606 47,027 — — 47,027 Policy loans 71,286 110,492 — — 110,492 Other loans 24,266 25,085 — — 25,085 Derivatives, index options 101,622 101,622 — — 101,622 Equity securities 28,217 28,217 23,795 4,422 — Life interest in Libbie Shearn Moody Trust 8,254 12,775 — — 12,775 Other investments 4,537 24,876 — — 24,876 LIABILITIES Deferred annuity contracts $ 6,463,314 4,703,331 — — 4,703,331 Immediate annuity and supplemental contracts 422,209 457,787 — — 457,787 December 31, 2020 Fair Value Hierarchy Level Carrying Fair Level 1 Level 2 Level 3 (In thousands) ASSETS Debt securities, available-for-sale $ 10,770,923 10,770,923 — 10,770,923 — Cash and cash equivalents 581,059 581,059 581,059 — — Mortgage loans 332,521 348,175 — — 348,175 Real Estate 33,783 48,577 — — 48,577 Policy loans 74,083 121,260 — — 121,260 Other loans 23,396 23,691 — — 23,691 Derivatives, index options 132,821 132,821 — — 132,821 Equity Securities 17,744 17,744 17,744 — — Life interest in Libbie Shearn Moody Trust 9,083 12,775 — — 12,775 Other investments 4,513 22,580 — — 22,580 LIABILITIES Deferred annuity contracts $ 6,662,730 5,192,663 — — 5,192,663 Immediate annuity and supplemental contracts 412,526 467,538 — — 467,538 |
Deferred Transaction Costs (Tab
Deferred Transaction Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Deferred Policy Acquisition Costs | A summary of information related to DPAC is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 382,080 723,972 841,704 Deferrals 77,306 69,857 64,824 Amortization, net of interest: Amortization, excluding unlocking, net of interest (84,349) (107,917) (117,748) Unlocking 36,510 (22,358) 8,643 Adjustments related to unrealized gains (losses) 158,292 (261,186) (73,451) Reinsurance — (20,288) — Balance, end of year $ 569,839 382,080 723,972 |
Summary of Information Related to DSI | A summary of information related to DSI is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 43,845 104,359 133,714 Deferrals 18,118 10,344 3,160 Amortization, net of interest: Amortization, excluding unlocking, net of interest (14,755) (18,363) (19,714) Unlocking 993 (4,445) (641) Adjustments related to unrealized gains (losses) 29,935 (43,557) (12,160) Reinsurance — (4,493) — Balance, end of year $ 78,136 43,845 104,359 |
Summary of Information Related to VOBA | A summary of information related to VOBA is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 162,968 138,071 — Business acquired — — 145,768 Other increase — 35,125 — Amortization: Amortization, excluding unlocking (8,469) (10,228) (7,697) Balance as of end of year $ 154,499 162,968 138,071 |
Summary of Estimated Future Amortization of VOBA, Net of Interest | Estimated future amortization of VOBA, net of interest (in thousands), as of December 31, 2021, is as follows: 2022 $ 8,075 2023 7,757 2024 7,464 2025 7,289 2026 7,162 |
Summary of Information Related to Cost of Reinsurance | A summary of information related to COR is provided in the following table: Years Ended December 31, 2021 2020 2019 (In thousands) Balance, beginning of year $ 102,840 — — Additions — 102,840 — Amortization (13,154) — — Balance as of end of year $ 89,686 102,840 — |
Goodwill and Specifically Ide_2
Goodwill and Specifically Identifiable Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill by Reportable Segment | The changes in the carrying amount of goodwill were as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Gross goodwill as of beginning of year $ 13,864 13,864 — Goodwill resulting from business acquisition — — 13,864 Gross goodwill, before impairments 13,864 13,864 13,864 Accumulated impairment as of beginning of year — — — Current year impairments — — — Net goodwill as of end of year $ 13,864 13,864 13,864 |
Schedule of Fair Value of Identifiable Intangible Assets Acquired | The gross carrying amounts and accumulated amortization for each specifically identifiable intangible asset were as follows. December 31, 2021 December 31, 2020 Weighted-Average Amortization Period Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (In thousands) Trademarks/trade names 15 $ 2,800 (545) 2,800 (358) Internally developed software 7 3,800 (1,583) 3,800 (1,040) Insurance licenses N/A 3,000 — 3,000 — $ 9,600 (2,128) 9,600 (1,398) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2021, expected amortization expenses relating to purchased intangible assets for each of the next 5 years and thereafter is as follows: Expected Amortization (In thousands) 2022 $ 730 2023 $ 730 2024 $ 730 2025 $ 730 2026 $ 232 Thereafter $ 1,320 $ 4,472 |
Segment and Other Operating I_2
Segment and Other Operating Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | A summary of segment information is provided below. Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2021: Selected Balance Sheet Items: Deferred transaction costs $ 150,688 152,340 423,318 165,814 — 892,160 Total segment assets 1,791,017 975,942 9,187,610 1,115,380 356,716 13,426,665 Future policy benefits 1,537,482 749,537 6,843,457 782,511 — 9,912,987 Other policyholder liabilities 20,950 14,268 82,650 16,470 — 134,338 Funds withheld liability — — 1,485,267 — — 1,485,267 Condensed Income Statements: Premiums and contract revenues $ 51,294 79,085 16,809 77,109 — 224,297 Net investment income 90,006 52,227 368,234 26,989 25,074 562,530 Other revenues 105 95 5,374 12,654 4,086 22,314 Total revenues 141,405 131,407 390,417 116,752 29,160 809,141 Life and other policy benefits 24,416 26,481 67,515 69,165 — 187,577 Amortization of deferred transaction costs 9,580 (11,118) 61,881 9,118 — 69,461 Universal life and annuity contract interest 77,246 31,696 104,242 — — 213,184 Other operating expenses 26,959 19,679 53,817 20,244 5,913 126,612 Federal income taxes 656 13,249 21,094 3,675 4,762 43,436 Total expenses 138,857 79,987 308,549 102,202 10,675 640,270 Segment earnings $ 2,548 51,420 81,868 14,550 18,485 168,871 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2020: Selected Balance Sheet Items: Deferred transaction costs $ 94,100 124,480 302,397 170,756 — 691,733 Total segment assets 3,242,794 1,034,280 7,976,588 1,117,509 382,149 13,753,320 Future policy benefits 1,337,174 798,952 7,028,860 768,433 — 9,933,419 Other policyholder liabilities 16,378 11,086 94,049 16,967 — 138,480 Funds withheld liability — — 1,697,591 — — 1,697,591 Condensed Income Statements: Premiums and contract revenues $ 53,834 88,167 17,025 78,921 — 237,947 Net investment income 54,516 27,273 290,576 26,383 18,454 417,202 Other revenues 58 67 43 10,118 8,236 18,522 Total revenues 108,408 115,507 307,644 115,422 26,690 673,671 Life and other policy benefits 18,471 14,084 31,043 67,739 — 131,337 Amortization of deferred transaction costs 17,661 24,929 87,133 10,780 — 140,503 Universal life and annuity contract interest 44,782 (2,087) 163,555 — — 206,250 Other operating expenses 25,730 17,829 36,870 18,454 5,701 104,584 Federal income taxes (benefit) 265 9,143 (1,649) 4,413 3,159 15,331 Total expenses 106,909 63,898 316,952 101,386 8,860 598,005 Segment earnings (loss) $ 1,499 51,609 (9,308) 14,036 17,830 75,666 Domestic Life Insurance International Life Insurance Annuities ONL & Affiliates All Others Totals (In thousands) 2019: Selected Balance Sheet Items: Deferred transaction costs $ 127,557 209,858 486,553 142,434 — 966,402 Total segment assets 1,399,818 1,153,105 8,198,730 978,243 362,900 12,092,796 Future policy benefits (1) 1,198,103 870,461 7,366,894 706,513 — 10,141,971 Other policyholder liabilities 18,016 14,903 80,002 14,686 — 127,607 Condensed Income Statements: Premiums and contract revenues $ 45,709 99,417 20,317 74,526 — 239,969 Net investment income 77,672 47,004 380,357 22,593 27,866 555,492 Other revenues 313 86 (34) 8,445 8,676 17,486 Total revenues 123,694 146,507 400,640 105,564 36,542 812,947 Life and other policy benefits 18,948 17,064 41,487 59,843 — 137,342 Amortization of deferred transaction costs 11,797 17,593 79,064 8,348 — 116,802 Universal life and annuity contract interest 69,849 48,561 176,920 — — 295,330 Other operating expenses 20,376 19,447 35,699 17,056 11,980 104,558 Federal income taxes 561 9,024 13,888 3,700 5,056 32,229 Total expenses 121,531 111,689 347,058 88,947 17,036 686,261 Segment earnings $ 2,163 34,818 53,582 16,617 19,506 126,686 (1) Revised for an adjustment to reserve liabilities of $15.0 million. Refer to Note (1). |
Reconciliation of Segment Net Earnings to Consolidated Financial Statements | Reconciliations of segment information to the Company's Consolidated Financial Statements are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Premiums and Other Revenue : Premiums and contract revenues $ 224,297 237,947 239,969 Net investment income 562,530 417,202 555,492 Other revenues 22,314 18,522 17,486 Realized gains on investments 14,950 21,071 6,241 Total consolidated premiums and other revenue $ 824,091 694,742 819,188 Years Ended December 31, 2021 2020 2019 (In thousands) Net Earnings : Total segment earnings $ 168,871 75,666 126,686 Realized gains on investments, net of taxes 11,810 16,646 4,930 Total consolidated net earnings $ 180,681 92,312 131,616 |
Reconciliation of Segment Federal Income Taxes to Consolidated Financial Statements | Years Ended December 31, 2021 2020 2019 (In thousands) Federal Income Taxes : Total segment Federal income taxes $ 43,436 15,331 32,229 Taxes on realized gains on investments 3,140 4,425 1,311 Total consolidated Federal income taxes $ 46,576 19,756 33,540 |
Reconciliation of Segment Assets to Consolidated Financial Statements | December 31, 2021 2020 2019 (In thousands) Assets : Total segment assets $ 13,426,665 13,753,320 12,092,796 Other unallocated assets 903,524 894,950 460,651 Total consolidated assets $ 14,330,189 14,648,270 12,553,447 |
Schedule of Premiums and Contract Revenue Detailed by Country | Premiums and contract revenues detailed by country are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) United States $ 156,614 165,233 156,330 Brazil 20,535 22,190 24,975 Taiwan 10,954 11,433 12,054 Peru 8,635 9,167 10,127 Venezuela 8,560 9,949 11,763 Colombia 6,505 7,313 8,110 Other foreign countries 37,330 36,348 40,229 Revenues, excluding reinsurance premiums 249,133 261,633 263,588 Reinsurance premiums (24,836) (23,686) (23,619) Total premiums and contract revenues $ 224,297 237,947 239,969 |
Statutory Information (Tables)
Statutory Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of Direct Premiums and Deposits Collected | A summary of direct premiums and deposits collected is provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Annuity deposits $ 462,632 358,900 264,667 Universal life insurance deposits 270,717 267,809 266,600 Traditional life and other premiums 96,429 98,711 95,695 Totals $ 829,778 725,420 626,962 |
Summary of Net Gain from Operations, Net Income, Unassigned Surplus (Retained Earnings) and Capital and Surplus (Stockholders' Equity), on Statutory Basis Used to Report Regulatory Authorities | The table below provides the National Western and Ozark National net gain from operations, net income, unassigned surplus (retained earnings) and capital and surplus (stockholders' equity), on the statutory basis used to report to regulatory authorities for the years ended December 31. 2021 2020 2019 (In thousands) National Western Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 85,440 1,423 209,139 Net income $ 63,476 6,487 151,316 Unassigned surplus $ 1,536,112 1,461,100 1,485,424 Capital and surplus $ 1,580,176 1,505,163 1,529,487 Ozark National Life Insurance Company: Net gain from operations before Federal and foreign income taxes $ 23,103 24,976 22,870 Net income $ 28,183 20,966 (854) Unassigned surplus $ 77,806 50,054 29,452 Capital and surplus $ 105,761 78,009 58,404 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Net earnings for the periods shown below are allocated between Class A shares and Class B shares based upon (1) the proportionate number of shares issued and outstanding as of the end of the period, and (2) the per share dividend rights of the two classes under the Company's Restated Certificate of Incorporation (the Class B dividend per share is equal to one-half the Class A dividend per share). Years Ended December 31, 2021 2020 2019 Class A Class B Class A Class B Class A Class B (In thousands except per share amounts) Numerator for Basic and Diluted Earnings Per Share: Net earnings $ 180,681 92,312 131,616 Dividends – Class A shares (1,237) (1,237) (1,237) Dividends – Class B shares (36) (36) (36) Undistributed earnings $ 179,408 91,039 130,343 Allocation of net earnings: Dividends $ 1,237 36 1,237 36 1,237 36 Allocation of undistributed earnings 174,334 5,074 88,464 2,575 126,657 3,686 Net earnings $ 175,571 5,110 89,701 2,611 127,894 3,722 Denominator: Basic earnings per share - weighted-average shares 3,436 200 3,436 200 3,436 200 Effect of dilutive stock options — — — — — — Diluted earnings per share - adjusted weighted-average shares for assumed conversions 3,436 200 3,436 200 3,436 200 Basic earnings per share $ 51.10 25.55 26.11 13.05 37.22 18.61 Diluted earnings per share $ 51.10 25.55 26.11 13.05 37.22 18.61 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Components of Other Comprehensive Income (Loss) | Components of other comprehensive income (loss) for 2021, 2020 and 2019 and the related tax effect are detailed below. Amounts Before Taxes Tax (Expense) Amounts Net of Taxes (In thousands) 2021: Unrealized gains (losses) on securities, net of effects of deferred costs of $187,987: Net unrealized holding gains (losses) arising during the period $ (227,325) 47,738 (179,587) Reclassification adjustment for net (gains) losses included in net earnings (16,372) 3,438 (12,934) Net unrealized gains (losses) on securities (243,697) 51,176 (192,521) Foreign currency translation adjustments (20) 4 (16) Benefit plan liability adjustment 16,543 (3,474) 13,069 Other comprehensive income (loss) $ (227,174) 47,706 (179,468) Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2020: Unrealized gains (losses) on securities, net of effects of deferred costs of $(304,955): Net unrealized holding gains (losses) arising during the period $ 446,280 (93,719) 352,561 Unrealized liquidity gains (losses) 8 (2) 6 Reclassification adjustment for net (gains) losses included in net earnings (5,677) 1,192 (4,485) Net unrealized gains (losses) on securities 440,611 (92,529) 348,082 Foreign currency translation adjustments 18 (4) 14 Benefit plan liability adjustment (16,182) 3,398 (12,784) Other comprehensive income (loss) $ 424,447 (89,135) 335,312 Amounts Before Taxes Tax (Expense) Benefit Amounts Net of Taxes (In thousands) 2019: Unrealized gains (losses) on securities, net of effects of deferred costs of $(85,609): Net unrealized holding gains (losses) arising during the period $ 122,726 (25,772) 96,954 Unrealized liquidity gains (losses) 4 (1) 3 Reclassification adjustment for net (gains) losses included in net earnings 5,060 (1,063) 3,997 Net unrealized (losses) gains on securities 127,790 (26,836) 100,954 Foreign currency translation adjustments 663 (139) 524 Benefit plan liability adjustment (5,513) 1,158 (4,355) Other comprehensive income (loss) $ 122,940 (25,817) 97,123 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in Shares of Common Stock Outstanding | Changes in shares of common stock outstanding are provided below. Years Ended December 31, 2021 2020 2019 (In thousands) Common stock shares outstanding: Shares outstanding at beginning of year $ 3,636 3,636 3,636 Shares exercised under stock option plan — — — Shares outstanding at end of year $ 3,636 3,636 3,636 |
Summary of Shares Available for Grant and Stock Options Activity | The following table shows all grants issued to officers and directors for the twelve months ended December 31, 2021 and 2020. These grants were made based upon the 20-day moving average closing market price of the Company's Class A common share at the grant date. Years Ended December 31, 2021 December 31, 2020 Officers Directors Officers Directors SARs 64,157 — 40,990 — RSUs 5,301 3,530 6,147 3,400 PSUs 4,066 — 9,324 — Options Outstanding Shares Available For Grant Shares Weighted-Average Exercise Price Stock Options: Balance at January 1, 2021 291,000 — $ — Exercised — — $ — Forfeited — — $ — Expired — — $ — Stock options granted — — $ — Balance at December 31, 2021 291,000 — $ — |
Schedule of Other Share / Unit Awards Activity | Liability Awards Other Share/Unit Awards: SARs RSUs PSUs Balance at January 1, 2021 144,248 16,449 24,282 Exercised (19,881) (6,168) (3,863) Forfeited (1,530) (157) — Granted 64,157 8,831 4,066 Balance at December 31, 2021 186,994 18,955 24,485 |
Summary of Information About SARs Outstanding | The following table summarizes information about SARs outstanding at December 31, 2021. SARs Outstanding Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Exercise prices: $210.22 22,750 1.9 years 22,750 $216.48 11,086 4.1 years 11,086 $311.16 9,295 5.1 years 9,295 $310.55 203 5.3 years 203 $334.34 8,880 6.0 years 8,880 $303.77 11,068 7.0 years 11,068 $252.91 19,007 7.9 years 12,677 $192.10 40,548 8.9 years 13,504 $218.44 64,157 10.0 years — Totals 186,994 89,463 Aggregate intrinsic value (in thousands) $ 1,002 $ 398 |
Summary of SARs / Options Outstanding Using Black-Scholes Option Pricing Model | In estimating the fair value of SARs outstanding at December 31, 2021 and 2020, the Company employed the Black-Scholes option pricing model with assumptions as detailed below. December 31, 2021 December 31, 2020 Expected term 1.9 to 10.0 years 1.0 to 9.9 years Expected volatility weighted-average 35.05 % 33.47 % Expected dividend yield 0.17 % 0.17 % Risk-free rate weighted-average 1.01 % 0.19 % |
Pension and Other Postretirem_2
Pension and Other Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Obligations and Funded Status | A detail of plan disclosures is provided below. Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 23,927 22,689 Service cost 119 107 Interest cost 528 674 Plan amendments — — Actuarial (gain) loss (805) 2,153 Benefits paid (1,713) (1,696) Projected benefit obligations at end of year 22,056 23,927 Changes in plan assets: Fair value of plan assets at beginning of year 20,833 18,512 Actual return on plan assets 3,265 2,910 Contributions 856 1,107 Benefits paid (1,713) (1,696) Fair value of plan assets at end of year 23,241 20,833 Funded status at end of year $ 1,185 (3,094) Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 51,571 29,258 Service cost 1,235 1,209 Interest cost 1,044 1,350 Actuarial (gain) loss (7,420) 21,736 Benefits paid (1,982) (1,982) Projected benefit obligations at end of year 44,448 51,571 Change in plan assets: Fair value of plan assets at beginning of year — — Contributions 1,982 1,982 Benefits paid (1,982) (1,982) Fair value of plan assets at end of year — — Funded status at end of year $ (44,448) (51,571) Obligations and Funded Status December 31, 2021 2020 (In thousands) Changes in projected benefit obligations: Projected benefit obligations at beginning of year $ 6,469 5,782 Interest cost 148 165 Actuarial (gain) loss (457) 522 Benefits paid — — Projected benefit obligations at end of year 6,160 6,469 Changes in plan assets: Fair value of plan assets at beginning of year — — Contributions — — Benefits paid — — Fair value of plan assets at end of year — — Funded status at end of year $ (6,160) (6,469) |
Schedule of Amounts Recognized in Consolidated Financial Statements and in Accumulated Other Comprehensive Income | December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ 1,185 — Liabilities — (3,094) Net amount recognized $ 1,185 (3,094) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 3,642 6,826 Prior service cost — — Net amount recognized $ 3,642 6,826 December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (44,448) (51,571) Net amount recognized $ (44,448) (51,571) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 13,925 26,476 Prior service cost 345 404 Net amount recognized $ 14,270 26,880 December 31, 2021 2020 (In thousands) Amounts recognized in the Company's Consolidated Financial Statements: Assets $ — — Liabilities (6,160) (6,469) Net amount recognized $ (6,160) (6,469) Amounts recognized in accumulated other comprehensive income: Net (gain) loss $ 1,539 2,288 Prior service cost — — Net amount recognized $ 1,539 2,288 |
Schedule of Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit costs: Interest cost $ 528 674 839 Service cost 119 107 96 Expected return on plan assets (1,425) (1,261) (1,086) Amortization of net loss (gain) 539 580 660 Net periodic benefit cost (239) 100 509 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (2,645) 503 (872) Amortization of net loss (gain) (539) (580) (660) Total recognized in other comprehensive income (3,184) (77) (1,532) Total recognized in net periodic benefit cost and other comprehensive income $ (3,423) 23 (1,023) Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit cost: Service cost $ 1,235 1,209 502 Interest cost 1,044 1,350 1,025 Amortization of prior service cost 59 59 59 Amortization of net loss (gain) 5,131 5,781 1,391 Net periodic benefit cost 7,469 8,399 2,977 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (7,420) 21,736 7,438 Amortization of prior service cost (59) (59) (59) Amortization of net loss (gain) (5,131) (5,781) (1,391) Total recognized in other comprehensive income (12,610) 15,896 5,988 Total recognized in net periodic benefit cost and other comprehensive income $ (5,141) 24,295 8,965 Components of Net Periodic Benefit Cost Years Ended December 31, 2021 2020 2019 (In thousands) Components of net periodic benefit cost: Interest cost $ 148 165 198 Amortization of prior service cost — — 52 Amortization of net loss 292 158 244 Net periodic benefit cost 440 323 494 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net loss (gain) (457) 522 1,354 Amortization of prior service cost — — (52) Amortization of net loss (gain) (292) (158) (244) Total recognized in other comprehensive income (749) 364 1,058 Total recognized in net periodic benefit cost and other comprehensive income $ (309) 687 1,552 |
Schedule of Assumptions Used | Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Rate of compensation increase n/a n/a December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit cost: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets 7.00 % 7.00 % 7.00 % Rate of compensation increase n/a n/a n/a Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Rate of compensation increase 8.00 % 8.00 % December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a Rate of compensation increase 8.00 % 8.00 % 8.00 % |
Schedule of Allocation of Plan Assets | The following tables set forth the Company’s pension plan assets within the fair value hierarchy as of December 31, 2021 and 2020. December 31, 2021 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 852 852 — — Equity securities Domestic 15,752 15,752 — — International 163 163 — — Debt securities Corporate bonds 6,474 — 6,474 — Other invested assets — — — — Total $ 23,241 16,767 6,474 — December 31, 2020 Total Level 1 Level 2 Level 3 (In thousands) Cash and cash equivalents $ 1,050 1,050 — — Equity securities Domestic 13,853 13,853 — — International 170 170 — — Debt securities Corporate bonds 5,759 — 5,759 — Other invested assets 1 1 — — Total $ 20,833 15,074 5,759 — |
Schedule of Pension Allocation by Type of Fund and Target Allocation | The plan’s weighted-average asset allocations by asset category have been as follows: December 31, 2021 2020 2019 Asset Category: Equity securities 68% 67% 65% Debt securities 28% 28% 31% Cash and cash equivalents 4% 5% 4% Total 100% 100% 100% |
Schedule of Acceptable Ranges for Each Asset as per Investment Policy Statement | The investment policy statement sets forth the following acceptable ranges for each asset's class. Acceptable Range Asset Category: Equity securities 55-70% Debt securities 30-40% Cash and cash equivalents 0-15% |
Schedule of Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ 1,568 2023 1,555 2024 1,470 2025 1,488 2026 1,417 2027-2031 6,621 The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ 1,982 2023 1,982 2024 1,982 2025 1,982 2026 1,982 2027-2031 13,084 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used | Assumptions December 31, 2021 2020 Weighted-average assumptions used to determine benefit obligations: Discount rate 2.75 % 2.25 % Expected long-term return on plan assets n/a n/a December 31, 2021 2020 2019 Weighted-average assumptions used to determine net periodic benefit costs: Discount rate 2.25 % 3.00 % 4.00 % Expected long-term return on plan assets n/a n/a n/a |
Schedule of Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 2022 $ — 2023 — 2024 — 2025 — 2026 198 2027-2031 1,354 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Total Federal Income Taxes | Total Federal income taxes were allocated as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Taxes (benefits) on earnings from continuing operations: Current $ 42,829 (275) 58,834 Deferred 3,747 20,031 (25,294) Taxes on earnings 46,576 19,756 33,540 Taxes (benefits) on components of stockholders' equity: Net unrealized gains and losses on securities available-for-sale (51,177) 92,528 26,836 Foreign currency translation adjustments (4) 4 139 Change in benefit plan liability 3,474 (3,398) (1,158) Change in accounting — (806) — Total Federal income taxes $ (1,131) 108,084 59,357 |
Schedule of Differences and Corresponding Tax Effects | These differences and the corresponding tax effects are as follows: Years Ended December 31, 2021 2020 2019 (In thousands) Income tax expense at statutory rate of 21% $ 47,724 23,534 34,683 Dividend received deduction (394) (401) (493) Tax exempt interest (1,263) (1,436) (1,564) Non deductible salary expense 439 351 294 Adjustments pertaining to prior tax years (63) (8) 459 Nondeductible insurance 96 96 96 Nondeductible expenses 54 44 117 Tax rate differential for loss carryback — (2,497) — Other, net (17) 73 (52) Taxes on earnings from continuing operations $ 46,576 19,756 33,540 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2021 and 2020 are presented below. December 31, 2021 2020 (In thousands) Deferred tax assets: Future policy benefits, excess of financial accounting liabilities over tax liabilities $ 183,692 188,635 Investment securities write-downs for financial accounting purposes 735 649 Benefit plan liabilities 12,546 14,714 Accrued operating expenses recorded for financial accounting purposes not currently tax deductible 4,490 3,346 Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes 64 85 Goodwill 1,696 2,077 Other 88 95 Total gross deferred tax assets 203,311 209,601 Deferred tax liabilities: Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes (157,543) (153,742) Tax reform reserve adjustment (34,942) (43,687) Debt securities, principally due to deferred market discount for tax (5,611) (8,338) Real estate, principally due to adjustments for financial accounting purposes (14) (2,245) Net unrealized gains on debt and equity securities (66,696) (112,500) Foreign currency translation adjustments (1,356) (1,360) Fixed assets, due to different depreciation bases (13,032) (10,645) Cost of reinsurance (18,834) (21,596) Funds withheld liability (5,591) — Other (858) (614) Total gross deferred tax liabilities (304,477) (354,727) Net deferred tax liabilities $ (101,166) (145,126) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease, Liability, Maturity | The Company's future annual lease obligations under finance leases as of December 31, 2021 are as shown below (in thousands). 2022 $ 343 2023 343 2024 316 2025 179 2026 165 Total minimum lease payments 1,346 Less: Interest (10) Present value of net minimum lease payments $ 1,336 |
Deposits with Regulatory Auth_2
Deposits with Regulatory Authorities Deposit with Regulatory Authorities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposit with Regulatory Authorities [Abstract] | |
Summary of Assets Deposited with State and Other Regulatory Authorities | The following assets, stated at amortized cost, were on deposit with state and other regulatory authorities, as required by law, at the end of each year. December 31, 2021 2020 (In thousands) National Western: Debt securities available-for-sale $ 15,307 15,283 Short-term investments 475 475 Total National Western 15,782 15,758 Ozark National: Debt securities available-for-sale 3,319 3,331 Total Ozark National 3,319 3,331 Total $ 19,101 19,089 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Schedule of Unrealized Gains and Losses on Available-for-Sale Securities Reclassified out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net investment gains | $ 14,950 | $ 21,071 | $ 14,088 |
Earnings (loss) before Federal income taxes | 227,257 | 112,068 | 165,156 |
Federal income taxes (benefit) | 46,576 | 19,756 | 33,540 |
Net earnings (loss) | 180,681 | 92,312 | 131,616 |
Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other net investment gains | 16,372 | 5,677 | 2,787 |
Net OTTI losses recognized in earnings | 0 | 0 | (7,847) |
Earnings (loss) before Federal income taxes | 16,372 | 5,677 | (5,060) |
Federal income taxes (benefit) | 3,438 | 1,192 | (1,063) |
Net earnings (loss) | $ 12,934 | $ 4,485 | $ (3,997) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2018 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in future policy benefits liability | $ 15,000 | |||||
Decrease to deferred federal income tax liability | $ (101,166) | $ (145,126) | ||||
Revised beginning balance | (2,281,986) | (2,102,577) | ||||
Derivatives, index options | 101,622 | 132,821 | ||||
Unrealized gains (losses) on options held | 120,717 | 14,754 | 123,207 | |||
Embedded derivative, fair value | 84,700 | 0 | ||||
Cost of reinsurance | 89,686 | 102,840 | 0 | $ 0 | ||
Ceding commission paid | 48,000 | |||||
Carrying value of capitalized software, property and equipment | 165,300 | 155,900 | ||||
Accumulated depreciation and amortization | 84,000 | 72,600 | ||||
Depreciation and amortization expense | 13,000 | 11,900 | 10,700 | |||
Goodwill | 13,864 | 13,864 | 13,864 | |||
Identifiable intangible assets acquired in business combination | 7,500 | 8,200 | ||||
Mortgage loans-allowance for possible losses | 2,987 | 2,486 | ||||
Debt securities held to maturity, allowance for credit losses | 0 | 0 | 0 | |||
Stockholders' equity | 2,539,691 | 2,539,750 | 2,116,430 | |||
Retained earnings: | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | $ 2,281,986 | 2,102,577 | 2,014,570 | |||
Restatement Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Increase in future policy benefits liability | 15,000 | |||||
Decrease to deferred federal income tax liability | 3,200 | |||||
Revised beginning balance | 11,800 | |||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revised beginning balance | $ (3,000) | |||||
Mortgage loans-allowance for possible losses | 1,200 | |||||
Debt securities held to maturity, allowance for credit losses | 3,334 | $ 3,300 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings: | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Stockholders' equity | [1] | 0 | $ (3,032) | $ 0 | ||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of assets | 3 years | |||||
Interest rate range to calculate future mortality | 3.25% | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Estimated useful lives of assets | 39 years | |||||
Interest rate range to calculate future mortality | 8.00% | |||||
Options Held | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Unrealized gains (losses) on options held | $ 54,400 | $ 71,000 | ||||
[1] | The 2019 beginning balance was revised by $11.8 million. |
Investments - Schedule of Compo
Investments - Schedule of Components of Net Investment Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Total investment income | $ 348,518 | $ 404,860 | $ 435,537 |
Less investment expenses | 2,762 | 2,412 | 3,252 |
Net investment income (excluding derivatives and trading securities) | 345,756 | 402,448 | 432,285 |
Net investment income | 562,530 | 417,202 | 555,492 |
Debt and equity securities | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 309,082 | 373,479 | 403,372 |
Mortgage loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 20,155 | 13,162 | 12,595 |
Policy loans | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 2,667 | 3,361 | 3,539 |
Short-term investments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 293 | 2,160 | 2,974 |
Other investment assets | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 16,321 | 12,698 | 13,057 |
Index option derivative gain | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Index option derivative gain | 120,718 | 14,754 | 123,207 |
Embedded derivative on reinsurance | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | 84,725 | 0 | 0 |
Trading securities market adjustments | |||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||
Gross investment income | $ 11,331 | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) | Dec. 31, 2020USD ($)loan | Dec. 31, 2021USD ($)mortgage_loan | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)nursing_home | Dec. 30, 2020USD ($) | Jan. 01, 2020USD ($) | Jan. 31, 2019USD ($) |
Schedule of Investments [Line Items] | |||||||
Loans originated during the year | $ 183,600,000 | $ 80,200,000 | |||||
Number of mortgage loan | mortgage_loan | 3 | ||||||
Net investments in mortgage loans, after allowances for possible losses | $ 332,521,000 | $ 487,304,000 | 332,521,000 | ||||
Mortgage loans-allowance for possible losses | 2,486,000 | 2,987,000 | 2,486,000 | ||||
Increase (decrease) to retained earnings | 2,102,577,000 | 2,281,986,000 | 2,102,577,000 | ||||
Real estate investments | 104,113,000 | 137,670,000 | 104,113,000 | ||||
Gain (loss) on sale of property | (1,400,000) | 2,700,000 | |||||
Real estate gain (loss) | (1,421,000) | 2,661,000 | $ 6,911,000 | ||||
Debt securities, available-for-sale | $ 10,770,923,000 | 9,068,946,000 | 10,770,923,000 | ||||
Realized gains on investments | 14,950,000 | 21,071,000 | 6,241,000 | ||||
Securities, other-than-temporarily impaired | 7,800,000 | ||||||
Transfer, fair value | 0 | 7,300,000,000 | 0 | ||||
Transfer, amortized cost | 0 | 6,700,000,000 | 0 | ||||
Unrealized gain (loss) transferred | 0 | $ 600,000,000 | 0 | ||||
Loans In Forbearance | |||||||
Schedule of Investments [Line Items] | |||||||
Number of loans | loan | 1 | 8 | |||||
Loans receivable | 4,700,000 | $ 29,200,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Schedule of Investments [Line Items] | |||||||
Mortgage loans-allowance for possible losses | $ 1,200,000 | ||||||
Increase (decrease) to retained earnings | 3,000,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | |||||||
Schedule of Investments [Line Items] | |||||||
Increase (decrease) to retained earnings | $ 400,000 | ||||||
Real Estate | |||||||
Schedule of Investments [Line Items] | |||||||
Real estate investments | $ 33,800,000 | 28,600,000 | $ 33,800,000 | ||||
Operating income recognized on real estate investment properties | 2,900,000 | 2,900,000 | 2,900,000 | ||||
Mortgage loan investment | |||||||
Schedule of Investments [Line Items] | |||||||
Loan investments made by reinsurer | 8,500,000 | ||||||
External Credit Rating, Non Investment Grade | Debt Securities | |||||||
Schedule of Investments [Line Items] | |||||||
Debt securities, available-for-sale | $ 303,500,000 | $ 153,000,000 | $ 303,500,000 | ||||
Debt securities below investment grade, percentage of total invested assets | 2.70% | 1.40% | 2.70% | ||||
Non- Income Producing | |||||||
Schedule of Investments [Line Items] | |||||||
Real estate investment | $ 400,000 | $ 100,000 | $ 400,000 | 400,000 | |||
Prior Home Office | |||||||
Schedule of Investments [Line Items] | |||||||
Gain (loss) on sale of property | 3,200,000 | ||||||
Nursing Home Facilities | |||||||
Schedule of Investments [Line Items] | |||||||
Gain (loss) on sale of property | $ 3,700,000 | ||||||
Number of nursing home | nursing_home | 2 | ||||||
Ozark National Life Insurance Company: | |||||||
Schedule of Investments [Line Items] | |||||||
Debt securities, available-for-sale | $ 811,600,000 | $ 823,000,000 | $ 811,600,000 | ||||
Ozark National Life Insurance Company: | Real Estate | |||||||
Schedule of Investments [Line Items] | |||||||
Real estate investments | $ 4,300,000 |
Investments - Schedule of Mortg
Investments - Schedule of Mortgage Loans by Geographic Region, Property Type and Loan-to-Value Ratio (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Allowance for credit losses, amount | $ (2,987) | $ (2,486) |
Totals, amount | 487,304 | 332,521 |
Real Estate | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 489,879 | $ 335,007 |
Mortgage loans, percentage | 100.00% | 100.00% |
Market value adjustment | $ 412 | $ 0 |
Market value adjustment, percentage | 0.10% | 0.00% |
Allowance for credit losses, amount | $ (2,987) | $ (2,486) |
Allowance for credit losses, percentage | (0.60%) | (0.70%) |
Totals, amount | $ 487,304 | $ 332,521 |
Totals, percentage | 99.50% | 99.30% |
Real Estate | Less than 50% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 100,806 | $ 66,635 |
Mortgage loans, percentage | 20.60% | 19.90% |
Real Estate | 50% to 60% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 128,191 | $ 64,536 |
Mortgage loans, percentage | 26.20% | 19.30% |
Real Estate | 60% to 70% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 202,670 | $ 153,414 |
Mortgage loans, percentage | 41.30% | 45.80% |
Real Estate | 70% to 80% | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 58,212 | $ 50,422 |
Mortgage loans, percentage | 11.90% | 15.00% |
Real Estate | 80% and above | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 0 | $ 0 |
Mortgage loans, percentage | 0.00% | 0.00% |
Real Estate | Retail | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 164,895 | $ 92,173 |
Mortgage loans, percentage | 33.70% | 27.50% |
Real Estate | Office | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 142,824 | $ 111,735 |
Mortgage loans, percentage | 29.20% | 33.30% |
Real Estate | Storage facility | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 73,401 | $ 53,591 |
Mortgage loans, percentage | 15.00% | 16.00% |
Real Estate | Industrial | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 34,212 | $ 29,131 |
Mortgage loans, percentage | 7.00% | 8.70% |
Real Estate | Hotel | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 23,748 | $ 8,372 |
Mortgage loans, percentage | 4.80% | 2.50% |
Real Estate | Land/lots | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 4,597 | $ 4,680 |
Mortgage loans, percentage | 0.90% | 1.40% |
Real Estate | Apartments | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 38,920 | $ 29,743 |
Mortgage loans, percentage | 7.90% | 8.90% |
Real Estate | Residential | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 1,905 | $ 0 |
Mortgage loans, percentage | 0.40% | 0.00% |
Real Estate | All other | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 5,377 | $ 5,582 |
Mortgage loans, percentage | 1.10% | 1.70% |
Real Estate | West South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 237,644 | $ 201,501 |
Mortgage loans, percentage | 48.50% | 60.10% |
Real Estate | East North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 61,397 | $ 16,478 |
Mortgage loans, percentage | 12.60% | 4.90% |
Real Estate | South Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 81,847 | $ 51,857 |
Mortgage loans, percentage | 16.70% | 15.50% |
Real Estate | East South Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 20,069 | $ 27,590 |
Mortgage loans, percentage | 4.10% | 8.20% |
Real Estate | West North Central | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 12,213 | $ 12,423 |
Mortgage loans, percentage | 2.50% | 3.70% |
Real Estate | Pacific | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 13,800 | $ 6,228 |
Mortgage loans, percentage | 2.80% | 1.90% |
Real Estate | Middle Atlantic | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 36,296 | $ 1,975 |
Mortgage loans, percentage | 7.40% | 0.60% |
Real Estate | Mountain | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | ||
Mortgage loans, amount | $ 26,613 | $ 16,955 |
Mortgage loans, percentage | 5.40% | 5.10% |
Investments - Schedule of Allow
Investments - Schedule of Allowance for Mortgage Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Mortgage Loans Allowance for Credit Losses: | ||
Balance, beginning of the period | $ 2,486 | |
Balance, end of period | 2,987 | $ 2,486 |
Real Estate | ||
Mortgage Loans Allowance for Credit Losses: | ||
Balance, beginning of the period | 2,486 | 675 |
Provision during the period | 501 | 1,307 |
Releases | 0 | 0 |
Balance, end of period | 2,987 | 2,486 |
Cumulative Effect, Period of Adoption, Adjustment | Real Estate | ||
Mortgage Loans Allowance for Credit Losses: | ||
Balance, beginning of the period | $ 0 | 504 |
Balance, end of period | $ 0 |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Mortgage Loan Principal Balances (Details) - Real Estate - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Principal Balance by Contractual Maturity, Amount | ||
Due in one year or less | $ 13,422 | $ 4,208 |
Due after one year through five years | 127,766 | 60,826 |
Due after five years through ten years | 222,444 | 154,787 |
Due after ten years through fifteen years | 115,313 | 107,662 |
Due after fifteen years | 11,280 | 7,977 |
Totals | $ 490,225 | $ 335,460 |
Principal Balance by Contractual Maturity, Percentage | ||
Due in one year or less | 2.70% | 1.30% |
Due after one year through five years | 26.10% | 18.10% |
Due after five years through ten years | 45.40% | 46.10% |
Due after ten years through fifteen years | 23.50% | 32.10% |
Due after fifteen years | 2.30% | 2.40% |
Totals | 100.00% | 100.00% |
Investments - Schedule of Amort
Investments - Schedule of Amortized Costs and Fair Values of Securities Available for Sale and Gross Unrealized Losses and Fair Values of Available-for-Sale Investments, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt securities: | |||
Total before allowance for credit losses | $ 8,604,250 | $ 9,874,543 | |
Gross Unrealized Gains | 482,109 | 901,223 | |
Gross Unrealized Losses | (17,413) | (4,843) | |
Fair Value | 9,068,946 | 10,770,923 | |
Allowance for Credit Losses | 0 | 0 | $ 0 |
Fair Value | |||
Less than 12 Months | 816,935 | 174,252 | |
12 Months or Greater | 27,109 | 38,414 | |
Total | 844,044 | 212,666 | |
Unrealized Losses | |||
Less than 12 Months | (15,844) | (3,836) | |
12 Months or Greater | (1,569) | (1,007) | |
Total | (17,413) | (4,843) | |
U.S. agencies | |||
Debt securities: | |||
Total before allowance for credit losses | 43,472 | 72,945 | |
Gross Unrealized Gains | 1,071 | 2,496 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 44,543 | 75,441 | |
Allowance for Credit Losses | 0 | ||
U.S. Treasury | |||
Debt securities: | |||
Total before allowance for credit losses | 2,469 | 3,152 | |
Gross Unrealized Gains | 21 | 126 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 2,490 | 3,278 | |
Allowance for Credit Losses | 0 | ||
States and political subdivisions | |||
Debt securities: | |||
Total before allowance for credit losses | 479,148 | 528,266 | |
Gross Unrealized Gains | 27,733 | 37,909 | |
Gross Unrealized Losses | (921) | (86) | |
Fair Value | 505,960 | 566,089 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 38,853 | 0 | |
12 Months or Greater | 1,790 | 1,762 | |
Total | 40,643 | 1,762 | |
Unrealized Losses | |||
Less than 12 Months | (779) | 0 | |
12 Months or Greater | (142) | (86) | |
Total | (921) | (86) | |
Foreign governments | |||
Debt securities: | |||
Total before allowance for credit losses | 62,979 | 11,115 | |
Gross Unrealized Gains | 293 | 334 | |
Gross Unrealized Losses | (881) | 0 | |
Fair Value | 62,391 | 11,449 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 31,862 | ||
12 Months or Greater | 0 | ||
Total | 31,862 | ||
Unrealized Losses | |||
Less than 12 Months | (881) | ||
12 Months or Greater | 0 | ||
Total | (881) | ||
Public utilities | |||
Debt securities: | |||
Total before allowance for credit losses | 745,359 | 831,990 | |
Gross Unrealized Gains | 39,919 | 77,920 | |
Gross Unrealized Losses | (309) | 0 | |
Fair Value | 784,969 | 909,910 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 15,286 | 0 | |
12 Months or Greater | 0 | 0 | |
Total | 15,286 | 0 | |
Unrealized Losses | |||
Less than 12 Months | (309) | 0 | |
12 Months or Greater | 0 | 0 | |
Total | (309) | 0 | |
Corporate | |||
Debt securities: | |||
Total before allowance for credit losses | 6,322,471 | 7,376,104 | |
Gross Unrealized Gains | 391,287 | 727,470 | |
Gross Unrealized Losses | (12,805) | (4,601) | |
Fair Value | 6,700,953 | 8,098,973 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 541,974 | 174,252 | |
12 Months or Greater | 25,319 | 36,152 | |
Total | 567,293 | 210,404 | |
Unrealized Losses | |||
Less than 12 Months | (11,378) | (3,836) | |
12 Months or Greater | (1,427) | (765) | |
Total | (12,805) | (4,601) | |
Commercial mortgage-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 27,016 | 30,108 | |
Gross Unrealized Gains | 741 | 1,363 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 27,757 | 31,471 | |
Allowance for Credit Losses | 0 | ||
Residential mortgage-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 530,702 | 902,974 | |
Gross Unrealized Gains | 18,921 | 50,970 | |
Gross Unrealized Losses | 0 | (156) | |
Fair Value | 549,623 | 953,788 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 0 | ||
12 Months or Greater | 500 | ||
Total | 500 | ||
Unrealized Losses | |||
Less than 12 Months | 0 | ||
12 Months or Greater | (156) | ||
Total | (156) | ||
Asset-backed | |||
Debt securities: | |||
Total before allowance for credit losses | 390,634 | 117,889 | |
Gross Unrealized Gains | 2,123 | 2,635 | |
Gross Unrealized Losses | (2,497) | 0 | |
Fair Value | 390,260 | $ 120,524 | |
Allowance for Credit Losses | 0 | ||
Fair Value | |||
Less than 12 Months | 188,960 | ||
12 Months or Greater | 0 | ||
Total | 188,960 | ||
Unrealized Losses | |||
Less than 12 Months | (2,497) | ||
12 Months or Greater | 0 | ||
Total | $ (2,497) |
Investments - Schedule of Amo_2
Investments - Schedule of Amortized Cost and Fair Value of Investments In Debt Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities Available for Sale, Amortized Cost | |||
Due in 1 year or less | $ 256,576 | ||
Due after 1 year through 5 years | 3,198,107 | ||
Due after 5 years through 10 years | 2,205,479 | ||
Due after 10 years | 1,995,736 | ||
Total, excluding mortgage and asset-backed securities | 7,655,898 | ||
Mortgage and asset-backed securities | 948,352 | ||
Total before allowance for credit losses | 8,604,250 | $ 9,874,543 | |
Allowance for Credit Losses | 0 | 0 | $ 0 |
Total | 8,604,250 | ||
Debt Securities Available for Sale, Fair Value | |||
Due in 1 year or less | 258,754 | ||
Due after 1 year through 5 years | 3,353,853 | ||
Due after 5 years through 10 years | 2,355,857 | ||
Due after 10 years | 2,132,842 | ||
Total, excluding mortgage and asset-backed securities | 8,101,306 | ||
Mortgage and asset-backed securities | 967,640 | ||
Total | 9,068,946 | $ 10,770,923 | |
Allowance for credit losses | $ 0 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains (Losses) Excluding Impairments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Available-for-sale debt securities: | |||
Realized gains on disposal | $ 16,377 | $ 5,677 | $ 3,798 |
Realized losses on disposal | (5) | 0 | (1,011) |
Held-to-maturity debt securities: | |||
Realized gains on redemption | 0 | 12,734 | 4,390 |
Realized losses on redemption | 0 | (1) | 0 |
Real estate | (1,421) | 2,661 | 6,911 |
Mortgage loans | 0 | 0 | 0 |
Other net investment gains | (1) | 0 | 0 |
Other net investment gains (losses) | $ 14,950 | $ 21,071 | $ 14,088 |
Investments - Debt Securities A
Investments - Debt Securities Allowance For Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Securities Held-to-Maturity | ||
Beginning balance | $ 0 | $ 0 |
(Releases)/provision during period | 0 | 3,334 |
Ending balance | 0 | 0 |
Debt Securities Available-for- Sale | ||
Beginning balance | 0 | 0 |
(Releases)/provision during period | 0 | 0 |
Ending balance | $ 0 | 0 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Debt Securities Held-to-Maturity | ||
Beginning balance | 3,334 | |
Debt Securities Available-for- Sale | ||
Beginning balance | $ 0 |
Investments - Schedule of Net U
Investments - Schedule of Net Unrealized Gains (Losses) on Investment Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 482,109 | $ 901,222 |
Gross unrealized losses | (17,413) | (4,843) |
Deferred policy acquisition costs and sales inducements | (178,340) | (366,327) |
Deferred Federal income tax expense | (60,135) | (111,311) |
Net unrealized gains on investment securities | $ 226,221 | $ 418,741 |
Derivative Investments - Schedu
Derivative Investments - Schedule of Fair Value of Derivative Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | $ 101,622 | $ 132,821 |
Derivatives not designated as hedging instruments: | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 101,622 | 132,821 |
Liability Derivatives | 58,036 | 161,351 |
Derivatives not designated as hedging instruments: | Equity index options | Derivatives, Index Options | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives | 101,622 | 132,821 |
Derivatives not designated as hedging instruments: | Fixed-index products | Universal Life and Annuity Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | 142,761 | $ 161,351 |
Derivatives not designated as hedging instruments: | Embedded derivative on reinsurance contract | Funds Withheld Liability | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives | $ (84,725) |
Derivative Investments - Sche_2
Derivative Investments - Schedule of Effect of Derivative Instruments in Consolidated Statements of Earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in the embedded derivative liability due to the expected collectability of asset management fees increased/(decreased) contract interest expense | $ 6,500 | $ 34,400 | $ (33,600) |
Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | 72,116 | (30,216) | 31,783 |
Derivatives Not Designated as Hedging Instruments | Equity index options | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | 120,718 | 14,754 | 123,207 |
Derivatives Not Designated as Hedging Instruments | Fixed-index products | Universal life and annuity contract interest | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | (133,327) | (44,970) | (91,424) |
Derivatives Not Designated as Hedging Instruments | Embedded derivative on reinsurance contract | Net investment income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain or (Loss) Recognized In Income on Derivatives | $ 84,725 | $ 0 | $ 0 |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 9,068,946 | $ 10,770,923 |
Debt securities, trading | 1,077,438 | 0 |
Equity securities | 28,217 | 17,744 |
Mortgage loans | 8,469 | 0 |
Derivatives, index options | 101,622 | 132,821 |
Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 9,068,946 | 10,770,923 |
Debt securities, trading | 1,077,438 | |
Equity securities | 28,217 | 17,744 |
Mortgage loans | 8,469 | |
Derivatives, index options | 101,622 | 132,821 |
Total assets | 10,284,692 | 10,921,488 |
Policyholder account balances | 142,761 | 161,351 |
Other liabilities | (76,856) | 6,202 |
Total liabilities | $ 65,905 | 167,553 |
Percent of total | 100.00% | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 0 | 0 |
Debt securities, trading | 0 | |
Equity securities | 23,795 | 17,744 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | |
Equity securities | 23,795 | 17,744 |
Mortgage loans | 0 | |
Derivatives, index options | 0 | 0 |
Total assets | 23,795 | 17,744 |
Policyholder account balances | 0 | 0 |
Other liabilities | 0 | 0 |
Total liabilities | $ 0 | 0 |
Percent of total | 0.20% | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 8,741,984 | 10,770,923 |
Debt securities, trading | 1,002,616 | |
Equity securities | 4,422 | 0 |
Mortgage loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 8,741,984 | 10,770,923 |
Debt securities, trading | 1,002,616 | |
Equity securities | 4,422 | 0 |
Mortgage loans | 0 | |
Derivatives, index options | 0 | 0 |
Total assets | 9,749,022 | 10,770,923 |
Policyholder account balances | 0 | 0 |
Other liabilities | (84,725) | 0 |
Total liabilities | $ (84,725) | 0 |
Percent of total | 94.80% | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 326,962 | 0 |
Debt securities, trading | 74,822 | |
Equity securities | 0 | 0 |
Mortgage loans | 513,246 | 348,175 |
Derivatives, index options | 101,622 | 132,821 |
Total assets | 223,359 | 132,821 |
Total liabilities | 150,630 | 167,553 |
Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 326,962 | 0 |
Debt securities, trading | 74,822 | |
Equity securities | 0 | 0 |
Mortgage loans | 8,469 | |
Derivatives, index options | 101,622 | 132,821 |
Total assets | 511,875 | 132,821 |
Policyholder account balances | 142,761 | 161,351 |
Other liabilities | 7,869 | 6,202 |
Total liabilities | $ 150,630 | $ 167,553 |
Percent of total | 5.00% | |
Priced by third-party vendors | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | $ 8,955,678 | |
Debt securities, trading | 1,077,438 | |
Equity securities | 28,217 | |
Mortgage loans | 0 | |
Derivatives, index options | 101,622 | |
Priced by third-party vendors | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Debt securities, trading | 0 | |
Equity securities | 23,795 | |
Mortgage loans | 0 | |
Derivatives, index options | 0 | |
Priced by third-party vendors | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 8,741,984 | |
Debt securities, trading | 1,002,616 | |
Equity securities | 4,422 | |
Mortgage loans | 0 | |
Derivatives, index options | 0 | |
Priced by third-party vendors | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 213,694 | |
Debt securities, trading | 74,822 | |
Equity securities | 0 | |
Mortgage loans | 0 | |
Derivatives, index options | 101,622 | |
Priced internally | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 113,268 | |
Debt securities, trading | 0 | |
Equity securities | 0 | |
Mortgage loans | 8,469 | |
Derivatives, index options | 0 | |
Priced internally | Level 1 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Debt securities, trading | 0 | |
Equity securities | 0 | |
Mortgage loans | 0 | |
Derivatives, index options | 0 | |
Priced internally | Level 2 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 0 | |
Debt securities, trading | 0 | |
Equity securities | 0 | |
Mortgage loans | 0 | |
Derivatives, index options | 0 | |
Priced internally | Level 3 | Recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities, available-for-sale | 113,268 | |
Debt securities, trading | 0 | |
Equity securities | 0 | |
Mortgage loans | 8,469 | |
Derivatives, index options | $ 0 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments - Fair Value Measurements for Level 3 Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 132,821 | $ 157,588 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 121,886 | 14,754 |
Included in other comprehensive income | 876 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 376,027 | 61,837 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (213,396) | (101,358) |
Transfers into (out of) Level 3 | 93,661 | 0 |
Balance at end of period | 511,875 | 132,821 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 55,589 | 70,984 |
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 167,553 | 171,203 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 138,907 | 38,544 |
Included in other comprehensive income | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 47,203 | 61,837 |
Sales | 0 | 0 |
Issuances | 182 | 164 |
Settlements | (203,215) | (104,195) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 150,630 | 167,553 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 60,001 | 64,558 |
Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 55,589 | 70,984 |
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 60,001 | 64,558 |
Policyholder Account Balances | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 161,351 | 155,902 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 133,326 | 44,970 |
Included in other comprehensive income | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 47,203 | 61,837 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (199,119) | (101,358) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 142,761 | 161,351 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 54,420 | 70,984 |
Policyholder Account Balances | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Policyholder Account Balances | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 54,420 | 70,984 |
Share-based Comp | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 6,202 | 11,225 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 5,581 | (2,350) |
Included in other comprehensive income | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | 0 |
Sales | 0 | 0 |
Issuances | 182 | 164 |
Settlements | (4,096) | (2,837) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 7,869 | 6,202 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 5,581 | (2,350) |
Share-based Comp | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Share-based Comp | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 5,581 | (2,350) |
Contingent Consideration | ||
Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | 4,076 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | (4,076) | |
Included in other comprehensive income | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 0 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | 0 | |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period | 0 | |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (4,076) | |
Contingent Consideration | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Contingent Consideration | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | (4,076) | |
Debt securities available-for-sale | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 0 | |
Included in other comprehensive income | 876 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 245,456 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | (13,031) | |
Transfers into (out of) Level 3 | 93,661 | |
Balance at end of period | 326,962 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Debt securities available-for-sale | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Debt securities available-for-sale | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Trading Securities | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 757 | |
Included in other comprehensive income | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 75,265 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | (1,200) | |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period | 74,822 | 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 757 | |
Trading Securities | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 757 | |
Trading Securities | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | |
Derivatives, Index Options | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 132,821 | 157,588 |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 120,717 | 14,754 |
Included in other comprehensive income | 0 | 0 |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 47,203 | 61,837 |
Sales | 0 | 0 |
Issuances | 0 | 0 |
Settlements | (199,119) | (101,358) |
Transfers into (out of) Level 3 | 0 | 0 |
Balance at end of period | 101,622 | 132,821 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 54,420 | 70,984 |
Derivatives, Index Options | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 54,420 | 70,984 |
Derivatives, Index Options | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 0 | 0 |
Mortgage loans | ||
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | 0 | |
Total realized and unrealized gains (losses): | ||
Included in net earnings | 412 | |
Included in other comprehensive income | 0 | |
Purchases, sales, issuances and settlements, net: | ||
Purchases | 8,103 | |
Sales | 0 | |
Issuances | 0 | |
Settlements | (46) | |
Transfers into (out of) Level 3 | 0 | |
Balance at end of period | 8,469 | $ 0 |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 412 | |
Mortgage loans | Net investment income | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | 412 | |
Mortgage loans | Benefits and expenses | ||
Purchases, sales, issuances and settlements, net: | ||
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets/liabilities held at the end of the reporting period: | $ 0 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments - Schedule of Fair Value, Valuation Techniques and Significant Unobservable Inputs for Financial Instruments Categorized as Level 3 (Details) $ in Thousands | Dec. 31, 2021USD ($)yr | Dec. 31, 2020USD ($)yr |
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | $ 9,068,946 | $ 10,770,923 |
Derivatives, index options | 101,622 | 132,821 |
Mortgage loans | 8,469 | 0 |
Level 3 | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | 326,962 | 0 |
Derivatives, index options | 101,622 | 132,821 |
Mortgage loans | 513,246 | 348,175 |
Total assets | 223,359 | 132,821 |
Total liabilities | 150,630 | 167,553 |
Level 3 | Discounted cash flow | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt securities, available-for-sale | 113,268 | |
Mortgage loans | 8,469 | |
Level 3 | Broker prices | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options | 101,622 | 132,821 |
Level 3 | Deterministic cash flow model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances | 142,761 | 161,351 |
Level 3 | Black-Scholes model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation | $ 7,869 | $ 6,202 |
Discount rate | Level 3 | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0240 | |
Discount rate | Level 3 | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0614 | |
Discount rate | Level 3 | Discounted cash flow | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Debt Securities, available-for-sale, measurement input | 0.0406 | |
Implied volatility | Level 3 | Broker prices | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.1176 | 0.1296 |
Implied volatility | Level 3 | Broker prices | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.1654 | 0.5369 |
Implied volatility | Level 3 | Broker prices | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Derivatives, index options, measurement input | 0.1455 | 0.2070 |
Measurement input spread | Level 3 | Discounted cash flow | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortgage loans, measurement input | 0.0100 | |
Measurement input spread | Level 3 | Discounted cash flow | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Mortgage loans, measurement input | 0.0250 | |
Projected option cost | Level 3 | Deterministic cash flow model | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0.0003 | 0 |
Projected option cost | Level 3 | Deterministic cash flow model | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0.1449 | 0.4504 |
Projected option cost | Level 3 | Deterministic cash flow model | Weighted Average | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Policyholder account balances, measurement input | 0.0265 | 0.0327 |
Expected term | Level 3 | Black-Scholes model | Minimum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | yr | 1.9 | 1 |
Expected term | Level 3 | Black-Scholes model | Maximum | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | yr | 10 | 9.9 |
Expected volatility | Level 3 | Black-Scholes model | ||
Fair Value Inputs, Assets and Liabilities, Quantitative Information [Line Items] | ||
Share based compensation, measurement input | 0.3505 | 0.3347 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments - Schedule of Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Debt securities, available-for-sale | $ 9,068,946 | $ 10,770,923 |
Debt securities, trading | 1,077,438 | 0 |
Mortgage loans | 8,469 | 0 |
Derivatives, index options | 101,622 | 132,821 |
Equity securities | 28,217 | 17,744 |
Carrying Values | ||
ASSETS | ||
Debt securities, available-for-sale | 9,068,946 | 10,770,923 |
Debt securities, trading | 1,077,438 | |
Cash and cash equivalents | 714,624 | 581,059 |
Mortgage loans | 487,304 | 332,521 |
Real estate | 28,606 | 33,783 |
Policy loans | 71,286 | 74,083 |
Other loans | 24,266 | 23,396 |
Derivatives, index options | 101,622 | 132,821 |
Equity securities | 28,217 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 8,254 | 9,083 |
Other investments | 4,537 | 4,513 |
LIABILITIES | ||
Deferred annuity contracts | 6,463,314 | 6,662,730 |
Immediate annuity and supplemental contracts | 422,209 | 412,526 |
Fair Values | ||
ASSETS | ||
Debt securities, available-for-sale | 9,068,946 | 10,770,923 |
Debt securities, trading | 1,077,438 | |
Cash and cash equivalents | 714,624 | 581,059 |
Mortgage loans | 513,246 | 348,175 |
Real estate | 47,027 | 48,577 |
Policy loans | 110,492 | 121,260 |
Other loans | 25,085 | 23,691 |
Derivatives, index options | 101,622 | 132,821 |
Equity securities | 28,217 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 24,876 | 22,580 |
LIABILITIES | ||
Deferred annuity contracts | 4,703,331 | 5,192,663 |
Immediate annuity and supplemental contracts | 457,787 | 467,538 |
Level 1 | ||
ASSETS | ||
Debt securities, available-for-sale | 0 | 0 |
Debt securities, trading | 0 | |
Cash and cash equivalents | 702,632 | 581,059 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 23,795 | 17,744 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 2 | ||
ASSETS | ||
Debt securities, available-for-sale | 8,741,984 | 10,770,923 |
Debt securities, trading | 1,002,616 | |
Cash and cash equivalents | 11,992 | 0 |
Mortgage loans | 0 | 0 |
Real estate | 0 | 0 |
Policy loans | 0 | 0 |
Other loans | 0 | 0 |
Derivatives, index options | 0 | 0 |
Equity securities | 4,422 | 0 |
Life interest in Libbie Shearn Moody Trust | 0 | 0 |
Other investments | 0 | 0 |
LIABILITIES | ||
Deferred annuity contracts | 0 | 0 |
Immediate annuity and supplemental contracts | 0 | 0 |
Level 3 | ||
ASSETS | ||
Debt securities, available-for-sale | 326,962 | 0 |
Debt securities, trading | 74,822 | |
Cash and cash equivalents | 0 | 0 |
Mortgage loans | 513,246 | 348,175 |
Real estate | 47,027 | 48,577 |
Policy loans | 110,492 | 121,260 |
Other loans | 25,085 | 23,691 |
Derivatives, index options | 101,622 | 132,821 |
Equity securities | 0 | 0 |
Life interest in Libbie Shearn Moody Trust | 12,775 | 12,775 |
Other investments | 24,876 | 22,580 |
LIABILITIES | ||
Deferred annuity contracts | 4,703,331 | 5,192,663 |
Immediate annuity and supplemental contracts | $ 457,787 | $ 467,538 |
Reinsurance (Details)
Reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Effects of Reinsurance [Line Items] | |||||
Ceded to Other Companies | $ 4,013,073 | $ 3,781,167 | $ 4,013,073 | $ 4,252,828 | |
Amounts recoverable from reinsurer | 1,709,232 | 1,539,919 | 1,709,232 | ||
Amortization | 13,154 | 0 | 0 | ||
Cost of reinsurance | 102,840 | 89,686 | 102,840 | 0 | $ 0 |
Prosperity Life Assurance Company | |||||
Effects of Reinsurance [Line Items] | |||||
Amounts recoverable from reinsurer | $ 1,700,000 | 1,700,000 | |||
Percentage of share of contractual statutory reserve liabilities | 100.00% | ||||
Reinsurance, amount in force, coinsurance funds withheld basis | $ 1,700,000 | 1,700,000 | |||
Reinsurance, ceded commission | 48,000 | 48,000 | |||
Policy benefit liabilities ceded on a statutory basis | 1,500,000 | ||||
National Western Life Insurance Company: | |||||
Effects of Reinsurance [Line Items] | |||||
Limit for reinsuring risk | 500 | ||||
Total life insurance in force | 15,900,000 | 15,000,000 | 15,900,000 | ||
Ceded to Other Companies | 3,500,000 | 3,300,000 | 3,500,000 | ||
Amounts recoverable from reinsurer | 8,600 | 31,600 | 8,600 | ||
Reinsurance premiums | 22,000 | 21,000 | 21,100 | ||
Reinsurance recoveries | 44,200 | 8,400 | $ 22,000 | ||
Ozark National Life Insurance Company: | |||||
Effects of Reinsurance [Line Items] | |||||
Limit for reinsuring risk | 200 | ||||
Total life insurance in force | 6,000,000 | 5,900,000 | 6,000,000 | ||
Ceded to Other Companies | 500,000 | 500,000 | 500,000 | ||
Amounts recoverable from reinsurer | $ 33,100 | 32,400 | 33,100 | ||
Reinsurance premiums | 2,800 | 2,700 | |||
Reinsurance recoveries | $ 2,400 | $ 2,600 |
Deferred Transaction Costs (Det
Deferred Transaction Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Deferred policy acquisition costs, beginning of year | $ 382,080 | $ 723,972 | $ 841,704 |
Deferrals | 77,306 | 69,857 | 64,824 |
Amortization, excluding unlocking, net of interest | (84,349) | (107,917) | (117,748) |
Unlocking | 36,510 | (22,358) | 8,643 |
Adjustments related to unrealized gains (losses) | 158,292 | (261,186) | (73,451) |
Reinsurance | 0 | (20,288) | 0 |
Deferred policy acquisition costs, end of year | 569,839 | 382,080 | 723,972 |
Movement in Deferred Sales Inducements [Roll Forward] | |||
Deferred sales inducements, beginning of year | 43,845 | 104,359 | 133,714 |
Deferrals | 18,118 | 10,344 | 3,160 |
Amortization, excluding unlocking, net of interest | (14,755) | (18,363) | (19,714) |
Unlocking | 993 | (4,445) | (641) |
Adjustments related to unrealized gains (losses) | 29,935 | (43,557) | (12,160) |
Reinsurance | 0 | (4,493) | 0 |
Deferred sales inducements, end of year | 78,136 | 43,845 | 104,359 |
Movement Analysis Of Value Of Business Acquired [Roll Forward] | |||
VOBA, beginning of year | 162,968 | 138,071 | 0 |
Business acquired | 0 | 0 | 145,768 |
Other increase | 0 | 35,125 | 0 |
Amortization, excluding unlocking | (8,469) | (10,228) | (7,697) |
VOBA, end of year | 154,499 | 162,968 | 138,071 |
Present Value of Future Insurance Profits, Amortization Expense [Abstract] | |||
2022 | 8,075 | ||
2023 | 7,757 | ||
2024 | 7,464 | ||
2025 | 7,289 | ||
2026 | 7,162 | ||
Cost of Reinsurance [Abstract] | |||
Balance, beginning of year | 102,840 | 0 | 0 |
Additions | 0 | 102,840 | 0 |
Amortization | (13,154) | 0 | 0 |
Balance as of end of year | $ 89,686 | $ 102,840 | $ 0 |
Goodwill and Specifically Ide_3
Goodwill and Specifically Identifiable Intangible Assets - Goodwill and Specifically Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||
Gross goodwill as of beginning of year | $ 13,864 | $ 13,864 | $ 0 |
Goodwill resulting from business acquisition | 0 | 0 | 13,864 |
Gross goodwill, before impairments | 13,864 | 13,864 | 13,864 |
Accumulated impairment as of beginning of year | 0 | 0 | 0 |
Current year impairments | 0 | 0 | 0 |
Net goodwill as of end of year | $ 13,864 | $ 13,864 | $ 13,864 |
Goodwill and Specifically Ide_4
Goodwill and Specifically Identifiable Intangible Assets - Gross Carrying Amounts and Accumulated Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Gross Carrying Amount | $ 9,600 | $ 9,600 |
Accumulated Amortization | $ (2,128) | (1,398) |
Trademarks/trade names | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 15 years | |
Gross Carrying Amount | $ 2,800 | 2,800 |
Accumulated Amortization | $ (545) | (358) |
Internally developed software | ||
Business Acquisition [Line Items] | ||
Weighted-Average Amortization Period | 7 years | |
Gross Carrying Amount | $ 3,800 | 3,800 |
Accumulated Amortization | (1,583) | (1,040) |
Insurance licenses | ||
Business Acquisition [Line Items] | ||
Gross Carrying Amount | 3,000 | 3,000 |
Accumulated Amortization | $ 0 | $ 0 |
Goodwill and Specifically Ide_5
Goodwill and Specifically Identifiable Intangible Assets - Summary of Expected Amortization Expenses (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 730 |
2023 | 730 |
2024 | 730 |
2025 | 730 |
2026 | 232 |
Thereafter | 1,320 |
Finite-lived intangible assets, net | $ 4,472 |
Segment and Other Operating I_3
Segment and Other Operating Information - Operating Segment Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Selected Balance Sheet Items: | |||
Total segment assets | $ 14,330,189 | $ 14,648,270 | $ 12,553,447 |
Future policy benefits | 15,000 | ||
Other policyholder liabilities | 134,338 | 138,480 | |
Funds withheld liability | 1,485,267 | 1,697,591 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 224,297 | 237,947 | 239,969 |
Net investment income | 562,530 | 417,202 | 555,492 |
Other revenues | 22,314 | 18,522 | 17,486 |
Realized gains on investments | 14,950 | 21,071 | 6,241 |
Total revenues | 824,091 | 694,742 | 819,188 |
Life and other policy benefits | 187,577 | 131,337 | 137,342 |
Amortization of deferred transaction costs | 69,461 | 140,503 | 116,802 |
Universal life and annuity contract interest | 213,184 | 206,250 | 295,330 |
Other operating expenses | 126,612 | 104,584 | 104,558 |
Federal income taxes (benefit) | 46,576 | 19,756 | 33,540 |
Net earnings (loss) | 180,681 | 92,312 | 131,616 |
Restatement Adjustment | |||
Selected Balance Sheet Items: | |||
Future policy benefits | 15,000 | ||
Segments | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 892,160 | 691,733 | 966,402 |
Total segment assets | 13,426,665 | 13,753,320 | 12,092,796 |
Future policy benefits | 9,912,987 | 9,933,419 | 10,141,971 |
Other policyholder liabilities | 134,338 | 138,480 | 127,607 |
Funds withheld liability | 1,485,267 | 1,697,591 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 224,297 | 237,947 | 239,969 |
Net investment income | 562,530 | 417,202 | 555,492 |
Other revenues | 22,314 | 18,522 | 17,486 |
Total revenues | 809,141 | 673,671 | 812,947 |
Life and other policy benefits | 187,577 | 131,337 | 137,342 |
Amortization of deferred transaction costs | 69,461 | 140,503 | 116,802 |
Universal life and annuity contract interest | 213,184 | 206,250 | 295,330 |
Other operating expenses | 126,612 | 104,584 | 104,558 |
Federal income taxes (benefit) | 43,436 | 15,331 | 32,229 |
Total expenses | 640,270 | 598,005 | 686,261 |
Net earnings (loss) | 168,871 | 75,666 | 126,686 |
Segments | Domestic Life Insurance | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 150,688 | 94,100 | 127,557 |
Total segment assets | 1,791,017 | 3,242,794 | 1,399,818 |
Future policy benefits | 1,537,482 | 1,337,174 | 1,198,103 |
Other policyholder liabilities | 20,950 | 16,378 | 18,016 |
Funds withheld liability | 0 | 0 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 51,294 | 53,834 | 45,709 |
Net investment income | 90,006 | 54,516 | 77,672 |
Other revenues | 105 | 58 | 313 |
Total revenues | 141,405 | 108,408 | 123,694 |
Life and other policy benefits | 24,416 | 18,471 | 18,948 |
Amortization of deferred transaction costs | 9,580 | 17,661 | 11,797 |
Universal life and annuity contract interest | 77,246 | 44,782 | 69,849 |
Other operating expenses | 26,959 | 25,730 | 20,376 |
Federal income taxes (benefit) | 656 | 265 | 561 |
Total expenses | 138,857 | 106,909 | 121,531 |
Net earnings (loss) | 2,548 | 1,499 | 2,163 |
Segments | International Life Insurance | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 152,340 | 124,480 | 209,858 |
Total segment assets | 975,942 | 1,034,280 | 1,153,105 |
Future policy benefits | 749,537 | 798,952 | 870,461 |
Other policyholder liabilities | 14,268 | 11,086 | 14,903 |
Funds withheld liability | 0 | 0 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 79,085 | 88,167 | 99,417 |
Net investment income | 52,227 | 27,273 | 47,004 |
Other revenues | 95 | 67 | 86 |
Total revenues | 131,407 | 115,507 | 146,507 |
Life and other policy benefits | 26,481 | 14,084 | 17,064 |
Amortization of deferred transaction costs | (11,118) | 24,929 | 17,593 |
Universal life and annuity contract interest | 31,696 | (2,087) | 48,561 |
Other operating expenses | 19,679 | 17,829 | 19,447 |
Federal income taxes (benefit) | 13,249 | 9,143 | 9,024 |
Total expenses | 79,987 | 63,898 | 111,689 |
Net earnings (loss) | 51,420 | 51,609 | 34,818 |
Segments | Annuities | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 423,318 | 302,397 | 486,553 |
Total segment assets | 9,187,610 | 7,976,588 | 8,198,730 |
Future policy benefits | 6,843,457 | 7,028,860 | 7,366,894 |
Other policyholder liabilities | 82,650 | 94,049 | 80,002 |
Funds withheld liability | 1,485,267 | 1,697,591 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 16,809 | 17,025 | 20,317 |
Net investment income | 368,234 | 290,576 | 380,357 |
Other revenues | 5,374 | 43 | (34) |
Total revenues | 390,417 | 307,644 | 400,640 |
Life and other policy benefits | 67,515 | 31,043 | 41,487 |
Amortization of deferred transaction costs | 61,881 | 87,133 | 79,064 |
Universal life and annuity contract interest | 104,242 | 163,555 | 176,920 |
Other operating expenses | 53,817 | 36,870 | 35,699 |
Federal income taxes (benefit) | 21,094 | (1,649) | 13,888 |
Total expenses | 308,549 | 316,952 | 347,058 |
Net earnings (loss) | 81,868 | (9,308) | 53,582 |
Segments | ONL & Affiliates | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 165,814 | 170,756 | 142,434 |
Total segment assets | 1,115,380 | 1,117,509 | 978,243 |
Future policy benefits | 782,511 | 768,433 | 706,513 |
Other policyholder liabilities | 16,470 | 16,967 | 14,686 |
Funds withheld liability | 0 | 0 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 77,109 | 78,921 | 74,526 |
Net investment income | 26,989 | 26,383 | 22,593 |
Other revenues | 12,654 | 10,118 | 8,445 |
Total revenues | 116,752 | 115,422 | 105,564 |
Life and other policy benefits | 69,165 | 67,739 | 59,843 |
Amortization of deferred transaction costs | 9,118 | 10,780 | 8,348 |
Universal life and annuity contract interest | 0 | 0 | 0 |
Other operating expenses | 20,244 | 18,454 | 17,056 |
Federal income taxes (benefit) | 3,675 | 4,413 | 3,700 |
Total expenses | 102,202 | 101,386 | 88,947 |
Net earnings (loss) | 14,550 | 14,036 | 16,617 |
Segments | All Others | |||
Selected Balance Sheet Items: | |||
Deferred transaction costs | 0 | 0 | 0 |
Total segment assets | 356,716 | 382,149 | 362,900 |
Future policy benefits | 0 | 0 | 0 |
Other policyholder liabilities | 0 | 0 | 0 |
Funds withheld liability | 0 | 0 | |
Condensed Income Statements: | |||
Premiums and contract revenues | 0 | 0 | 0 |
Net investment income | 25,074 | 18,454 | 27,866 |
Other revenues | 4,086 | 8,236 | 8,676 |
Total revenues | 29,160 | 26,690 | 36,542 |
Life and other policy benefits | 0 | 0 | 0 |
Amortization of deferred transaction costs | 0 | 0 | 0 |
Universal life and annuity contract interest | 0 | 0 | 0 |
Other operating expenses | 5,913 | 5,701 | 11,980 |
Federal income taxes (benefit) | 4,762 | 3,159 | 5,056 |
Total expenses | 10,675 | 8,860 | 17,036 |
Net earnings (loss) | 18,485 | 17,830 | 19,506 |
Segment Reconciling Items | |||
Condensed Income Statements: | |||
Taxes on realized gains on investments | 3,140 | 4,425 | 1,311 |
Realized gains on investments, net of taxes | 11,810 | 16,646 | 4,930 |
Other unallocated | |||
Selected Balance Sheet Items: | |||
Total segment assets | $ 903,524 | $ 894,950 | $ 460,651 |
Segment and Other Operating I_4
Segment and Other Operating Information - Geographic Information and Major Agency Relationships (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)agencybenefit_plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 249,133 | $ 261,633 | $ 263,588 |
Reinsurance premiums | (24,836) | (23,686) | (23,619) |
Total premiums and contract revenues | $ 224,297 | 237,947 | 239,969 |
Annuities | National Western Life Insurance Company: | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of customers | agency | 3 | ||
Annuities | National Western Life Insurance Company: | Agency One | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 11.00% | ||
Annuities | National Western Life Insurance Company: | Agency Two | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 11.00% | ||
Annuities | National Western Life Insurance Company: | Agency Three | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 10.00% | ||
Domestic Life Insurance | National Western Life Insurance Company: | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Number of customers | benefit_plan | 1 | ||
Domestic Life Insurance | National Western Life Insurance Company: | Domestic independent agency | Revenue Benchmark | Agency Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Major customer, percentage of sales | 58.00% | ||
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 156,614 | 165,233 | 156,330 |
Brazil | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 20,535 | 22,190 | 24,975 |
Taiwan | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 10,954 | 11,433 | 12,054 |
Peru | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 8,635 | 9,167 | 10,127 |
Venezuela | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 8,560 | 9,949 | 11,763 |
Colombia | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | 6,505 | 7,313 | 8,110 |
Other foreign countries | |||
Segment Reporting Information [Line Items] | |||
Revenues, excluding reinsurance premiums | $ 37,330 | $ 36,348 | $ 40,229 |
Statutory Information - Summary
Statutory Information - Summary of Premiums and Deposits Collected (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | |||
Annuity deposits | $ 462,632 | $ 358,900 | $ 264,667 |
Universal life insurance deposits | 270,717 | 267,809 | 266,600 |
Traditional life and other premiums | 96,429 | 98,711 | 95,695 |
Totals | $ 829,778 | $ 725,420 | $ 626,962 |
Statutory Information - Statuto
Statutory Information - Statutory Accounting Practices (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
National Western Life Insurance Company: | |||
Statutory Accounting Practices [Line Items] | |||
Net gain from operations before Federal and foreign income taxes | $ 85,440 | $ 1,423 | $ 209,139 |
Net income | 63,476 | 6,487 | 151,316 |
Unassigned surplus | 1,536,112 | 1,461,100 | 1,485,424 |
Capital and surplus | 1,580,176 | 1,505,163 | 1,529,487 |
Ozark National Life Insurance Company: | |||
Statutory Accounting Practices [Line Items] | |||
Net gain from operations before Federal and foreign income taxes | 23,103 | 24,976 | 22,870 |
Net income | 28,183 | 20,966 | (854) |
Unassigned surplus | 77,806 | 50,054 | 29,452 |
Capital and surplus | $ 105,761 | $ 78,009 | $ 58,404 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)class_of_stock$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Numerator for Basic and Diluted Earnings Per Share: | |||
Number of classes of stock | class_of_stock | 2 | ||
Awards outstanding that could be redeemed for common stock | shares | 0 | ||
Net earnings | $ 180,681 | $ 92,312 | $ 131,616 |
Undistributed earnings | 179,408 | 91,039 | 130,343 |
Allocation of net earnings: | |||
Undistributed earnings | 179,408 | 91,039 | 130,343 |
Net earnings | 180,681 | 92,312 | 131,616 |
Class A | |||
Numerator for Basic and Diluted Earnings Per Share: | |||
Net earnings | 175,571 | 89,701 | 127,894 |
Dividends | (1,237) | (1,237) | (1,237) |
Undistributed earnings | 174,334 | 88,464 | 126,657 |
Allocation of net earnings: | |||
Dividends | 1,237 | 1,237 | 1,237 |
Undistributed earnings | 174,334 | 88,464 | 126,657 |
Net earnings | $ 175,571 | $ 89,701 | $ 127,894 |
Denominator: | |||
Basic earnings per share - weighted-average shares (in shares) | shares | 3,436 | 3,436 | 3,436 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 3,436 | 3,436 | 3,436 |
Basic earnings per share (in dollars per share) | $ / shares | $ 51.10 | $ 26.11 | $ 37.22 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 51.10 | $ 26.11 | $ 37.22 |
Class B | |||
Numerator for Basic and Diluted Earnings Per Share: | |||
Net earnings | $ 5,110 | $ 2,611 | $ 3,722 |
Dividends | (36) | (36) | (36) |
Undistributed earnings | 5,074 | 2,575 | 3,686 |
Allocation of net earnings: | |||
Dividends | 36 | 36 | 36 |
Undistributed earnings | 5,074 | 2,575 | 3,686 |
Net earnings | $ 5,110 | $ 2,611 | $ 3,722 |
Denominator: | |||
Basic earnings per share - weighted-average shares (in shares) | shares | 200 | 200 | 200 |
Effect of dilutive stock options (in shares) | shares | 0 | 0 | 0 |
Diluted earnings per share - adjusted weighted-average shares for assumed conversions (in shares) | shares | 200 | 200 | 200 |
Basic earnings per share (in dollars per share) | $ / shares | $ 25.55 | $ 13.05 | $ 18.61 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 25.55 | $ 13.05 | $ 18.61 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Deferred costs | $ 187,987 | $ (304,955) | $ (85,609) |
Amounts Before Taxes | |||
Net unrealized holding gains (losses) arising during the period | (227,325) | 446,280 | 122,726 |
Unrealized liquidity gains (losses) | 8 | 4 | |
Reclassification adjustment for net (gains) losses included in net earnings | (16,372) | (5,677) | 5,060 |
Net unrealized gains (losses) on securities | (243,697) | 440,611 | 127,790 |
Foreign currency translation adjustments | (20) | 18 | 663 |
Benefit plan liability adjustment | 16,543 | (16,182) | (5,513) |
Other comprehensive income (loss) | (227,174) | 424,447 | 122,940 |
Tax (Expense) Benefit | |||
Net unrealized holding gains (losses) arising during the period | 47,738 | (93,719) | (25,772) |
Unrealized liquidity gains (losses) | (2) | (1) | |
Reclassification adjustment for net (gains) losses included in net earnings | 3,438 | 1,192 | (1,063) |
Net unrealized gains (losses) on securities | 51,176 | (92,529) | (26,836) |
Foreign currency translation adjustments | 4 | (4) | (139) |
Benefit plan liability adjustment | (3,474) | 3,398 | 1,158 |
Other comprehensive income (loss) | 47,706 | (89,135) | (25,817) |
Amounts Net of Taxes | |||
Net unrealized holding gains (losses) arising during the period | (179,587) | 352,561 | 96,954 |
Unrealized liquidity gains (losses) | 0 | 6 | 3 |
Reclassification adjustment for net (gains) losses included in net earnings | (12,934) | (4,485) | 3,997 |
Net unrealized gains (losses) on securities | (192,521) | 348,082 | 100,954 |
Foreign currency translation adjustments | (16) | 14 | 524 |
Benefit plan liability adjustment | 13,069 | (12,784) | (4,355) |
Other comprehensive income (loss) | $ (179,468) | $ 335,312 | $ 97,123 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Shares of Common Stock Outstanding (Details) - Common Stock - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common stock shares outstanding: | |||
Shares outstanding at beginning of year (in shares) | 3,636 | 3,636 | 3,636 |
Shares exercised under stock option plan (in shares) | 0 | 0 | 0 |
Shares outstanding at end of year (in shares) | 3,636 | 3,636 | 3,636 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividend Restrictions (Details) - USD ($) | Dec. 01, 2021 | Oct. 22, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Class A | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | $ 1,237,000 | $ 1,237,000 | $ 1,237,000 | ||
Class B | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | $ 36,000 | 36,000 | $ 36,000 | ||
National Western Life Insurance Company: | |||||
Class of Stock [Line Items] | |||||
Percentage of statutory surplus (percent) | 10.00% | ||||
Maximum dividend payment which may be paid without prior approval | $ 64,400,000 | ||||
National Western Life Insurance Company: | Dividend Declared | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | 0 | 0 | |||
National Western Life Insurance Company: | Dividend Paid | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | $ 0 | 0 | |||
Ozark National Life Insurance Company: | |||||
Class of Stock [Line Items] | |||||
Percentage of statutory surplus (percent) | 10.00% | ||||
Maximum dividend payment which may be paid without prior approval | $ 18,600,000 | ||||
Ozark National Life Insurance Company: | Dividend Declared | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | 0 | 0 | |||
Ozark National Life Insurance Company: | Dividend Paid | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | 0 | 0 | |||
NIS | |||||
Class of Stock [Line Items] | |||||
Maximum dividend payment | 8,600,000 | ||||
NIS | Dividend Declared | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | 0 | ||||
NIS | Dividend Paid | |||||
Class of Stock [Line Items] | |||||
Dividends declared and paid | $ 0 | $ 1,400,000 | |||
National Western Life Group Inc | Class A | |||||
Class of Stock [Line Items] | |||||
Common stock, dividends declared (in dollars per share) | $ 0.36 | ||||
Common stock, dividends paid (in dollars per share) | $ 0.36 | ||||
National Western Life Group Inc | Class B | |||||
Class of Stock [Line Items] | |||||
Common stock, dividends declared (in dollars per share) | $ 0.18 | ||||
Common stock, dividends paid (in dollars per share) | $ 0.18 |
Stockholders' Equity - Regulato
Stockholders' Equity - Regulatory Capital Requirements and Share-Based Payments - General Descriptions (Details) - USD ($) | Jun. 15, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 20, 2008 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant price (in dollars per share) | $ 218.44 | $ 192.10 | |||
Compensation cost, liability balance | $ 7,900,000 | $ 6,200,000 | |||
Intrinsic value of share-based compensation exercised | 4,100,000 | 2,800,000 | $ 3,100,000 | ||
Fair value of options vested | 3,700,000 | 4,200,000 | 4,400,000 | ||
Proceeds from exercise of stock options | $ 0 | 0 | 0 | ||
Share price (in dollars per share) | $ 214.44 | ||||
Pre-tax compensation cost (benefit) recognized | $ 5,800,000 | (2,200,000) | 2,400,000 | ||
Compensation cost (benefit), tax expense (benefit) | (1,200,000) | 500,000 | (500,000) | ||
Pre-tax compensation expense related to nonvested share-based awards not yet recognized | $ 11,900,000 | $ 9,100,000 | $ 8,000,000 | ||
Compensation cost related to nonvested options not yet recognized, weighted-average period of recognition | 1 year 6 months | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 3 years | ||||
Share-base payment, performance period | 3 years | ||||
Performance outcome period | 3 years | ||||
Award measurement period | 3 years | 3 years | |||
Performance factor used to determine compensation payout | 85.16% | 101.19% | |||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 3 years | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Four | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Employees | Employee Stock Appreciation Rights SARs Granted Before 2016 | Tranche Five | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Employees | Employee Stock Appreciation Rights SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | Employee Stock Appreciation Rights SARs | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 33.30% | ||||
Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 100.00% | ||||
Requisite service period of awards | 3 years | 3 years | |||
Award vesting period | 3 years | ||||
Directors | Employee Stock Options SARs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Directors | Employee Stock Options SARs | Tranche One | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Directors | Employee Stock Options SARs | Tranche Two | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Directors | Employee Stock Options SARs | Tranche Three | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Directors | Employee Stock Options SARs | Tranche Four | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Directors | Employee Stock Options SARs | Tranche Five | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting percentage | 20.00% | ||||
Directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Requisite service period of awards | 1 year | ||||
Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Award vesting price determining period | 20 days | ||||
Class A | PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Class A | Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Class A | Directors | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting price determining period | 20 days | ||||
Stock and Incentive Plan, 2008 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Plan extension term | 10 years | ||||
Stock and Incentive Plan, 2008 Plan | Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 1 | ||||
Share-based payments, number of shares authorized under plans (in shares) | 300,000 | ||||
National Western Life Insurance Company: | Colorado Division of Insurance | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Current authorized control level RBC | $ 120,600,000 | ||||
Capital and surplus | 1,700,000,000 | ||||
Ozark National Life Insurance Company: | Colorado Division of Insurance | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Current authorized control level RBC | 7,800,000 | ||||
Capital and surplus | $ 109,300,000 |
Stockholders' Equity - Grants I
Stockholders' Equity - Grants Issued to Officers and Directors (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Officers | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 64,157 | 40,990 |
Officers | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 5,301 | 6,147 |
Officers | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 4,066 | 9,324 |
Directors | SARs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Directors | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 3,530 | 3,400 |
Directors | PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grants in the period (in shares) | 0 | 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Shares Available for Grant and Stock Options Activity (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Shares Available For Grant | |
Beginning Balance (in shares) | 291,000 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock options granted (in shares) | 0 |
Ending Balance (in shares) | 291,000 |
Options Outstanding | |
Beginning Balance (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Expired (in shares) | 0 |
Stock options granted (in shares) | 0 |
Ending Balance (in shares) | 0 |
Options Outstanding, Weighted-Average Exercise Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Stock options granted (in dollars per share) | $ / shares | 0 |
Ending Balance (in dollars per share) | $ / shares | $ 0 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Other Share / Unit Awards Activity (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
SARs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 144,248 |
Exercised (in shares) | (19,881) |
Forfeited (in shares) | (1,530) |
Granted (in shares) | 64,157 |
Ending balance (in shares) | 186,994 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 16,449 |
Exercised (in shares) | (6,168) |
Forfeited (in shares) | (157) |
Granted (in shares) | 8,831 |
Ending balance (in shares) | 18,955 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance (in shares) | 24,282 |
Exercised (in shares) | (3,863) |
Forfeited (in shares) | 0 |
Granted (in shares) | 4,066 |
Ending balance (in shares) | 24,485 |
Stockholders' Equity - Share-Ba
Stockholders' Equity - Share-Based Payments - Exercise Range (Details) - Stock Appreciation Rights (SARs) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number Outstanding (in shares) | 186,994 |
Number Outstanding, Aggregate intrinsic value | $ | $ 1,002 |
Number Exercisable (in shares) | 89,463 |
Number Exercisable, Aggregate intrinsic value | $ | $ 398 |
210.22 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 210.22 |
Number Outstanding (in shares) | 22,750 |
Weighted-Average Remaining Contractual Life | 1 year 10 months 24 days |
Number Exercisable (in shares) | 22,750 |
216.48 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 216.48 |
Number Outstanding (in shares) | 11,086 |
Weighted-Average Remaining Contractual Life | 4 years 1 month 6 days |
Number Exercisable (in shares) | 11,086 |
311.16 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 311.16 |
Number Outstanding (in shares) | 9,295 |
Weighted-Average Remaining Contractual Life | 5 years 1 month 6 days |
Number Exercisable (in shares) | 9,295 |
310.55 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 310.55 |
Number Outstanding (in shares) | 203 |
Weighted-Average Remaining Contractual Life | 5 years 3 months 18 days |
Number Exercisable (in shares) | 203 |
334.34 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 334.34 |
Number Outstanding (in shares) | 8,880 |
Weighted-Average Remaining Contractual Life | 6 years |
Number Exercisable (in shares) | 8,880 |
303.77 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 303.77 |
Number Outstanding (in shares) | 11,068 |
Weighted-Average Remaining Contractual Life | 7 years |
Number Exercisable (in shares) | 11,068 |
252.91 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 252.91 |
Number Outstanding (in shares) | 19,007 |
Weighted-Average Remaining Contractual Life | 7 years 10 months 24 days |
Number Exercisable (in shares) | 12,677 |
192.10 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 192.10 |
Number Outstanding (in shares) | 40,548 |
Weighted-Average Remaining Contractual Life | 8 years 10 months 24 days |
Number Exercisable (in shares) | 13,504 |
218.44 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price (in dollars per share) | $ / shares | $ 218.44 |
Number Outstanding (in shares) | 64,157 |
Weighted-Average Remaining Contractual Life | 10 years |
Number Exercisable (in shares) | 0 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of SARs / Options Outstanding Using Black-Scholes Option Pricing Model (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividend yield | 0.17% | 0.17% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 1 year 10 months 24 days | 1 year |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term | 10 years | 9 years 10 months 24 days |
Weighted Average | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility weighted-average | 35.05% | 33.47% |
Risk-free rate weighted-average | 1.01% | 0.19% |
Information Regarding Control_2
Information Regarding Controlling Stockholder (Details) | Dec. 31, 2021 |
Class B | Chairman of the Board of Directors | |
Related Party Transaction [Line Items] | |
Ownership in the company | 99.00% |
Class A | |
Related Party Transaction [Line Items] | |
Percentage of Board of Directors that can be elected by holders of stock (percent) | 33.33% |
Pension and Other Postretirem_3
Pension and Other Postretirement Plans - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021USD ($)benefit_plan | Dec. 31, 2020USD ($) | Dec. 31, 2019 | Dec. 31, 2007 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Average rate of return | 10.90% | |||
Number of non-qualified defined benefit pension plan | benefit_plan | 3 | |||
Number of additional non-qualified defined benefit pension plan | benefit_plan | 2 | |||
Number of healthcare plans | benefit_plan | 2 | |||
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Vesting percentage in accrued benefits from plan freeze (in percentage) | 100.00% | |||
Actuarial gain (loss) | $ 805 | $ (2,153) | ||
Discount rate | 2.75% | 2.25% | 3.00% | |
Accumulated benefit obligation | $ 22,100 | $ 23,900 | ||
Defined Benefit Pension Plans | Census Demographics | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (309) | (587) | ||
Defined Benefit Pension Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (78) | 317 | ||
Defined Benefit Pension Plans | Difference in Expected and Actual Benefit Payments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (127) | (45) | ||
Defined Benefit Pension Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 1,319 | (1,838) | ||
Chairman and President Non-Qualified Defined Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 7,420 | $ (21,736) | ||
Discount rate | 2.75% | 2.25% | 3.00% | |
Accumulated benefit obligation | $ 26,400 | $ 27,000 | ||
Participant age threshold for contingent liability | 70 years | |||
Rate of compensation increase | 8.00% | 8.00% | 8.00% | |
Chairman and President Non-Qualified Defined Benefit Plans | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Rate of compensation increase | 10.00% | |||
Chairman and President Non-Qualified Defined Benefit Plans | Census Demographics | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 4,208 | $ (16,720) | ||
Chairman and President Non-Qualified Defined Benefit Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (80) | 441 | ||
Chairman and President Non-Qualified Defined Benefit Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 3,292 | (5,457) | ||
Defined Benefit Postretirement Healthcare Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 457 | $ (522) | ||
Discount rate | 2.75% | 2.25% | 3.00% | |
Accumulated benefit obligation | $ 6,200 | $ 6,500 | ||
Defined Benefit Postretirement Healthcare Plans | Change in Mortality | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | (30) | 104 | ||
Defined Benefit Postretirement Healthcare Plans | Discount rate | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | 610 | (893) | ||
Defined Benefit Postretirement Healthcare Plans | Claims/Healthcare Cost Trend Experience | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ (123) | (389) | ||
Defined Benefit Postretirement Healthcare Plans | Change In Actuarial Assumptions | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Actuarial gain (loss) | $ 656 |
Pension and Other Postretirem_4
Pension and Other Postretirement Plans - Obligations and Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Pension Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | $ 23,927 | $ 22,689 | |
Service cost | 119 | 107 | $ 96 |
Interest cost | 528 | 674 | 839 |
Plan amendments | 0 | 0 | |
Actuarial (gain) loss | (805) | 2,153 | |
Benefits paid | (1,713) | (1,696) | |
Projected benefit obligations at end of year | 22,056 | 23,927 | 22,689 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 20,833 | 18,512 | |
Actual return on plan assets | 3,265 | 2,910 | |
Contributions | 856 | 1,107 | |
Benefits paid | (1,713) | (1,696) | |
Fair value of plan assets at end of year | 23,241 | 20,833 | 18,512 |
Funded status at end of year | 1,185 | (3,094) | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 51,571 | 29,258 | |
Service cost | 1,235 | 1,209 | 502 |
Interest cost | 1,044 | 1,350 | 1,025 |
Actuarial (gain) loss | (7,420) | 21,736 | |
Benefits paid | (1,982) | (1,982) | |
Projected benefit obligations at end of year | 44,448 | 51,571 | 29,258 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Contributions | 1,982 | 1,982 | |
Benefits paid | (1,982) | (1,982) | |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status at end of year | (44,448) | (51,571) | |
Defined Benefit Postretirement Healthcare Plans | |||
Changes in projected benefit obligations: | |||
Projected benefit obligations at beginning of year | 6,469 | 5,782 | |
Interest cost | 148 | 165 | 198 |
Actuarial (gain) loss | (457) | 522 | |
Benefits paid | 0 | 0 | |
Projected benefit obligations at end of year | 6,160 | 6,469 | 5,782 |
Changes in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Contributions | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status at end of year | $ (6,160) | $ (6,469) |
Pension and Other Postretirem_5
Pension and Other Postretirement Plans - Amounts Recognized in Consolidated Financial Statements and Accumulated Other Comprehensive Income (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Pension Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | $ 1,185,000 | $ 0 |
Liabilities | 0 | (3,094,000) |
Net amount recognized | 1,185,000 | (3,094,000) |
Amounts recognized in accumulated other comprehensive income: | ||
Net (gain) loss | 3,642,000 | 6,826,000 |
Prior service cost | 0 | 0 |
Net amount recognized | 3,642,000 | 6,826,000 |
Chairman and President Non-Qualified Defined Benefit Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | 0 | 0 |
Liabilities | (44,448,000) | (51,571,000) |
Net amount recognized | (44,448,000) | (51,571,000) |
Amounts recognized in accumulated other comprehensive income: | ||
Net (gain) loss | 13,925,000 | 26,476,000 |
Prior service cost | 345,000 | 404,000 |
Net amount recognized | 14,270,000 | 26,880,000 |
Defined Benefit Postretirement Healthcare Plans | ||
Amounts recognized in the Company's Consolidated Financial Statements: | ||
Assets | 0 | 0 |
Liabilities | (6,160,000) | (6,469,000) |
Net amount recognized | (6,160,000) | (6,469,000) |
Amounts recognized in accumulated other comprehensive income: | ||
Net (gain) loss | 1,539,000 | 2,288,000 |
Prior service cost | 0 | 0 |
Net amount recognized | $ 1,539,000 | $ 2,288,000 |
Pension and Other Postretirem_6
Pension and Other Postretirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Pension Plans | |||
Components of net periodic benefit costs: | |||
Service cost | $ 119 | $ 107 | $ 96 |
Interest cost | 528 | 674 | 839 |
Expected return on plan assets | (1,425) | (1,261) | (1,086) |
Amortization of net loss (gain) | 539 | 580 | 660 |
Net periodic benefit cost | (239) | 100 | 509 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net loss (gain) | (2,645) | 503 | (872) |
Amortization of net loss (gain) | (539) | (580) | (660) |
Total recognized in other comprehensive income | (3,184) | (77) | (1,532) |
Total recognized in net periodic benefit cost and other comprehensive income | (3,423) | 23 | (1,023) |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Components of net periodic benefit costs: | |||
Service cost | 1,235 | 1,209 | 502 |
Interest cost | 1,044 | 1,350 | 1,025 |
Amortization of prior service cost | 59 | 59 | 59 |
Amortization of net loss (gain) | 5,131 | 5,781 | 1,391 |
Net periodic benefit cost | 7,469 | 8,399 | 2,977 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net loss (gain) | (7,420) | 21,736 | 7,438 |
Amortization of prior service cost | (59) | (59) | (59) |
Amortization of net loss (gain) | (5,131) | (5,781) | (1,391) |
Total recognized in other comprehensive income | (12,610) | 15,896 | 5,988 |
Total recognized in net periodic benefit cost and other comprehensive income | (5,141) | 24,295 | 8,965 |
Defined Benefit Postretirement Healthcare Plans | |||
Components of net periodic benefit costs: | |||
Interest cost | 148 | 165 | 198 |
Amortization of prior service cost | 0 | 0 | 52 |
Amortization of net loss (gain) | 292 | 158 | 244 |
Net periodic benefit cost | 440 | 323 | 494 |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net loss (gain) | (457) | 522 | 1,354 |
Amortization of prior service cost | 0 | 0 | (52) |
Amortization of net loss (gain) | (292) | (158) | (244) |
Total recognized in other comprehensive income | (749) | 364 | 1,058 |
Total recognized in net periodic benefit cost and other comprehensive income | $ (309) | $ 687 | $ 1,552 |
Pension and Other Postretirem_7
Pension and Other Postretirement Plans - Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Pension Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 2.75% | 2.25% | 3.00% |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.25% | 3.00% | 4.00% |
Expected long-term return on plan assets | 7.00% | 7.00% | 7.00% |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 2.75% | 2.25% | 3.00% |
Rate of compensation increase | 8.00% | 8.00% | |
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.25% | 3.00% | 4.00% |
Rate of compensation increase | 8.00% | 8.00% | 8.00% |
Defined Benefit Postretirement Healthcare Plans | |||
Weighted-average assumptions used to determine benefit obligations: | |||
Discount rate | 2.75% | 2.25% | 3.00% |
Annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 7.50% | ||
Decrease in annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 0.50% | ||
Ultimate annual rate of increase in the per capita cost of covered health care benefits (in percentage) | 5.00% | ||
Weighted-average assumptions used to determine net periodic benefit cost: | |||
Discount rate | 2.25% | 3.00% | 4.00% |
Pension and Other Postretirem_8
Pension and Other Postretirement Plans - Plan Assets (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)investment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Benefit Pension Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 23,241,000 | $ 20,833,000 | $ 18,512,000 |
Plan assets | $ 1,185,000 | $ 0 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 100.00% | 100.00% | 100.00% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Percentage pension assets not invested in cash or U.S. Government agencies (in percentage) | 96.00% | ||
Number of different investments | investment | 247 | ||
Acceptable range for each asset class (in percentage) | 4.90% | ||
Defined Benefit Pension Plans | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 16,767,000 | $ 15,074,000 | |
Defined Benefit Pension Plans | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,474,000 | 5,759,000 | |
Defined Benefit Pension Plans | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 852,000 | $ 1,050,000 | |
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 4.00% | 5.00% | 4.00% |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 852,000 | $ 1,050,000 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 68.00% | 67.00% | 65.00% |
Defined Benefit Pension Plans | Domestic | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 15,752,000 | $ 13,853,000 | |
Defined Benefit Pension Plans | Domestic | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 15,752,000 | 13,853,000 | |
Defined Benefit Pension Plans | Domestic | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Domestic | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 163,000 | 170,000 | |
Defined Benefit Pension Plans | International | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 163,000 | 170,000 | |
Defined Benefit Pension Plans | International | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | International | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 0 | $ 0 | |
Defined Benefit Pension Plans | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 28.00% | 28.00% | 31.00% |
Defined Benefit Pension Plans | Corporate bonds | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | $ 6,474,000 | $ 5,759,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Corporate bonds | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 6,474,000 | 5,759,000 | |
Defined Benefit Pension Plans | Corporate bonds | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Other invested assets | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 1,000 | |
Defined Benefit Pension Plans | Other invested assets | Level 1 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 1,000 | |
Defined Benefit Pension Plans | Other invested assets | Level 2 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Defined Benefit Pension Plans | Other invested assets | Level 3 | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | |
Chairman and President Non-Qualified Defined Benefit Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Plan assets | 0 | 0 | |
Defined Benefit Postretirement Healthcare Plans | |||
Pension plan assets within the fair value hierachy | |||
Fair value of plan assets | 0 | 0 | $ 0 |
Plan assets | $ 0 | $ 0 | |
Minimum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 0.00% | ||
Minimum | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 55.00% | ||
Minimum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 30.00% | ||
Maximum | Cash and cash equivalents | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 15.00% | ||
Maximum | Equity securities | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 70.00% | ||
Maximum | Debt securities: | |||
Plan’s weighted-average asset allocations by asset category | |||
Actual plan asset allocations | 40.00% |
Pension and Other Postretirem_9
Pension and Other Postretirement Plans - Contributions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 500 |
Expected voluntary contribution for next fiscal year | $ 250 |
Defined Benefit Pension Plans | Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Adjusted funding target attainment percentage (in percentage) | 80.00% |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution for next fiscal year | $ 2,000 |
Pension and Other Postretire_10
Pension and Other Postretirement Plans - Estimated Future Benefit Payments (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Defined Benefit Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 1,568 |
2023 | 1,555 |
2024 | 1,470 |
2025 | 1,488 |
2026 | 1,417 |
2027-2031 | 6,621 |
Chairman and President Non-Qualified Defined Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 1,982 |
2023 | 1,982 |
2024 | 1,982 |
2025 | 1,982 |
2026 | 1,982 |
2027-2031 | 13,084 |
Defined Benefit Postretirement Healthcare Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
2026 | 198 |
2027-2031 | $ 1,354 |
Pension and Other Postretire_11
Pension and Other Postretirement Plans - Defined Contribution Pension Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional company's matching contribution | 4.00% | 4.00% | 4.00% |
Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Additional company's matching contribution | 4.00% | ||
Non-Qualified Contribution Pension Plan | National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, 401(k) plan | $ 143 | $ 175 | $ 97 |
Non-Qualified Contribution Pension Plan | Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | 24 | 247 | 45 |
United States | Qualified Plan | National Western Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total company contribution, 401(k) plan | 755 | 720 | 664 |
United States | Qualified Plan | Ozark National Life Insurance Company: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | 125 | 175 | 176 |
United States | Qualified Plan | NIS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expenses related to the plan | $ 10 | $ 17 | $ 30 |
Federal Income Taxes - Schedule
Federal Income Taxes - Schedule of Total Federal Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Taxes (benefits) on earnings from continuing operations: | |||
Current | $ 42,829 | $ (275) | $ 58,834 |
Deferred | 3,747 | 20,031 | (25,294) |
Taxes on earnings from continuing operations | 46,576 | 19,756 | 33,540 |
Taxes (benefits) on components of stockholders' equity | (47,706) | 89,135 | 25,817 |
Total Federal income taxes | (1,131) | 108,084 | 59,357 |
Net unrealized gains and losses on securities available-for-sale | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity | (51,177) | 92,528 | 26,836 |
Foreign currency translation adjustments | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity | (4) | 4 | 139 |
Change in benefit plan liability | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity | 3,474 | (3,398) | (1,158) |
Change in accounting | |||
Taxes (benefits) on earnings from continuing operations: | |||
Taxes (benefits) on components of stockholders' equity | $ 0 | $ (806) | $ 0 |
Federal Income Taxes - Schedu_2
Federal Income Taxes - Schedule of Differences and Corresponding Tax Effects (Details) - USD ($) $ in Thousands | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Reconciliation | |||||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% | ||
Income tax expense at statutory rate of 21% | $ 47,724 | $ 23,534 | $ 34,683 | ||
Dividend received deduction | (394) | (401) | (493) | ||
Tax exempt interest | (1,263) | (1,436) | (1,564) | ||
Non deductible salary expense | 439 | 351 | 294 | ||
Adjustments pertaining to prior tax years | (63) | (8) | 459 | ||
Nondeductible insurance | 96 | 96 | 96 | ||
Nondeductible expenses | 54 | 44 | 117 | ||
Tax rate differential for loss carryback | 0 | (2,497) | 0 | ||
Other, net | (17) | 73 | (52) | ||
Taxes on earnings from continuing operations | $ 46,576 | $ 19,756 | $ 33,540 |
Federal Income Taxes - Narrativ
Federal Income Taxes - Narrative (Details) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2021 | Dec. 31, 2020 |
Income Tax Disclosure [Abstract] | ||||
Permanent tax benefit percentage | 14.00% | |||
Permanent tax benefit | $ 120,000 | $ 2,500,000 | ||
Adjustment to tax reserves | $ 332,900,000 | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% | |
Deferred tax liability from Tax Act | $ 69,900,000 | $ 34,900,000 | ||
Annual adjustment to tax reserves | $ 41,600,000 | |||
Annual income tax expense from adjustment to tax reserves | $ 8,700,000 | |||
Valuation allowances for deferred tax assets | 0 | 0 | ||
Reserve for uncertain tax positions | 0 | |||
Accruals for interest or penalties related to unrecognized tax benefits | $ 0 | $ 0 |
Federal Income Taxes - Schedu_3
Federal Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Future policy benefits, excess of financial accounting liabilities over tax liabilities | $ 183,692 | $ 188,635 |
Investment securities write-downs for financial accounting purposes | 735 | 649 |
Benefit plan liabilities | 12,546 | 14,714 |
Accrued operating expenses recorded for financial accounting purposes not currently tax deductible | 4,490 | 3,346 |
Accrued and unearned investment income recognized for tax purposes and deferred for financial accounting purposes | 64 | 85 |
Goodwill | 1,696 | 2,077 |
Other | 88 | 95 |
Total gross deferred tax assets | 203,311 | 209,601 |
Deferred tax liabilities: | ||
Deferred policy acquisition costs, sales inducement costs, and VOBA, principally expensed for tax purposes | (157,543) | (153,742) |
Tax reform reserve adjustment | (34,942) | (43,687) |
Debt securities, principally due to deferred market discount for tax | (5,611) | (8,338) |
Real estate, principally due to adjustments for financial accounting purposes | (14) | (2,245) |
Net unrealized gains on debt and equity securities | (66,696) | (112,500) |
Foreign currency translation adjustments | (1,356) | (1,360) |
Fixed assets, due to different depreciation bases | (13,032) | (10,645) |
Cost of reinsurance | (18,834) | (21,596) |
Funds withheld liability | (5,591) | 0 |
Other | (858) | (614) |
Total gross deferred tax liabilities | (304,477) | (354,727) |
Net deferred tax liabilities | $ (101,166) | $ (145,126) |
Short-Term Borrowing (Details)
Short-Term Borrowing (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Collateral security deposit | 110.00% | |
Outstanding borrowings | $ 0 | $ 0 |
Debt securities amortized value | 8,604,250,000 | $ 9,874,543,000 |
Initial minimum required stock investment | 4,300,000 | |
Carrying Values | ||
Short-term Debt [Line Items] | ||
Debt securities amortized value | 91,200,000 | |
Cash and securities | 57,300,000 | |
Fair Values | ||
Short-term Debt [Line Items] | ||
Debt securities amortized value | 93,700,000 | |
Cash and securities | 60,600,000 | |
MNB | ||
Short-term Debt [Line Items] | ||
Bank line of credit available to the company | $ 75,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Mar. 04, 2022USD ($) | Oct. 15, 2021USD ($) | Feb. 16, 2021class_action_suit | Nov. 11, 2019USD ($) | Jul. 27, 2019USD ($) | Nov. 11, 2018USD ($) | Dec. 31, 2021USD ($)agreement | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2021USD ($) | Apr. 30, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||||||||
Rental expense | $ 400,000 | $ 500,000 | $ 400,000 | |||||||||
Number of agreement | agreement | 2 | |||||||||||
Finance lease | $ 1,336,000 | $ 1,400,000 | ||||||||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||||||||||
2022 | 343,000 | |||||||||||
2023 | 343,000 | |||||||||||
2024 | 316,000 | |||||||||||
2025 | 179,000 | |||||||||||
2026 | 165,000 | |||||||||||
Total minimum lease payments | 1,346,000 | |||||||||||
Less: Interest | $ (10,000) | |||||||||||
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | ||||||||||
Present value of net minimum lease payments | $ 1,336,000 | $ 1,400,000 | ||||||||||
Guaranty Association Assessments | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Guaranty association assessments | 100,000 | 200,000 | 200,000 | |||||||||
IRS payment to be remitted | 100,000 | $ 200,000 | $ 200,000 | |||||||||
Tax Status Of Company's International Life Insurance Products | IRS | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Guaranty association assessments | $ 4,900,000 | |||||||||||
IRS payment to be remitted | $ 4,900,000 | |||||||||||
Payment remittance period after agreement effective date | 60 days | |||||||||||
Period within which to make the stipulated adjustments after agreement effective date | 90 days | |||||||||||
New Loans | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Commitments to extend credit relating to mortgage loans | 5,400,000 | |||||||||||
Existing Loans | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Commitments to extend credit relating to mortgage loans | 13,100,000 | |||||||||||
Capital Contributions To Investment Funds | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Commitments to extend credit relating to mortgage loans | 256,400,000 | |||||||||||
Williams v Pantaleoni et al | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Equity indexed annuity issued | $ 100,000 | |||||||||||
Williams v Pantaleoni et al | Subsequent Event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Punitive damages reversed | $ 2,500,000 | |||||||||||
Williams v Pantaleoni et al | Economic damages | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, economic damages awarded | $ 14,949 | |||||||||||
Williams v Pantaleoni et al | Economic damages | Subsequent Event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, economic damages awarded | 14,949 | |||||||||||
Williams v Pantaleoni et al | Non-economic damages | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, non-economic damages awarded | $ 2,900,000 | |||||||||||
Williams v Pantaleoni et al | Non-economic damages | Subsequent Event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, non-economic damages awarded | 420,000 | |||||||||||
Williams v Pantaleoni et al | Plaintiff attorney's fees | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages award to plaintiff | $ 1,260,000 | |||||||||||
Williams v Pantaleoni et al | Plaintiff attorney's fees | Subsequent Event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages award to plaintiff | $ 1,260,000 | |||||||||||
Mildred Baldwin, on behalf of herself and others similarly situated vs. National Western Life Insurance Company | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of class action suit | class_action_suit | 2 | |||||||||||
Guaranty association assessments | 4,400,000 | |||||||||||
IRS payment to be remitted | $ 4,400,000 | |||||||||||
Settled Litigation | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages award to plaintiff | $ 1,314,054 | |||||||||||
Judicial Ruling | National Western Life Insurance Company and National Western Life Group, Inc. v. Ross Rankin Moody et. al | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Damages award to plaintiff | $ 1,803,503 |
Deposit with Regulatory Authori
Deposit with Regulatory Authorities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | $ 19,101 | $ 19,089 |
National Western Life Insurance Company: | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 15,782 | 15,758 |
National Western Life Insurance Company: | Debt securities available-for-sale | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 15,307 | 15,283 |
National Western Life Insurance Company: | Short-term investments | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 475 | 475 |
Ozark National Life Insurance Company: | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | 3,319 | 3,331 |
Ozark National Life Insurance Company: | Debt securities available-for-sale | ||
Schedule of Deposit with Regulatory Authorities [Line Items] | ||
Assets deposited with state and other regulatory authorities | $ 3,319 | $ 3,331 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Mortgage loan | $ 487,304,000 | $ 332,521,000 | |
Robert L. Moody, Jr. | |||
Related Party Transaction [Line Items] | |||
Commission paid under agency contracts | 155,107 | 182,957 | |
RMS | |||
Related Party Transaction [Line Items] | |||
Management fees | 2,000 | 0 | |
MNB | |||
Related Party Transaction [Line Items] | |||
Commission and service fees expense | 536,101 | 582,150 | |
Payments for rent | 32,101 | 32,101 | |
American National Insurance Company | |||
Related Party Transaction [Line Items] | |||
Premiums paid during the year | 642,099 | 840,802 | |
Reimbursements for claim costs | 3,021,197 | 2,635,164 | |
Premium received | 3,147,080 | 2,744,962 | |
American National Registered Investment Advisory | |||
Related Party Transaction [Line Items] | |||
Professional fees | $ 58,032 | 47,778 | |
The Company | Moody Bancshares, Inc. | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 9.40% | ||
RCC | RMS | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 1.00% | ||
Three R Trusts | RMS | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 99.00% | ||
Three R Trusts | RCC | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 100.00% | ||
Moody Bancshares, Inc. | Moody Bank Holding | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 100.00% | ||
Moody Bank Holding | MNB | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 98.50% | ||
The Westcap Corporation | American National Insurance Company | |||
Related Party Transaction [Line Items] | |||
Undivided participation in mortgage | 24.93% | ||
Mortgage loan | $ 17,900,000 | $ 18,500,000 | $ 20,000,000 |
Percentage of commercial mortgage | 24.93% |
Schedule I - Summary of Inves_2
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) | Dec. 31, 2021USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | $ 10,484,377,000 |
Balance Sheet Amount | 10,972,071,000 |
Fixed maturities: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 9,670,358,000 |
Fair Value | 10,146,384,000 |
Balance Sheet Amount | 10,146,384,000 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 16,549,000 |
Fair Value | 28,217,000 |
Balance Sheet Amount | 28,217,000 |
Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 578,000 |
Fair Value | 1,335,000 |
Balance Sheet Amount | 1,335,000 |
Banks, trust, and insurance companies | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 1,701,000 |
Fair Value | 4,287,000 |
Balance Sheet Amount | 4,287,000 |
Industrial, miscellaneous, and all others | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 9,945,000 |
Fair Value | 18,173,000 |
Balance Sheet Amount | 18,173,000 |
Preferred stocks | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 4,325,000 |
Fair Value | 4,422,000 |
Balance Sheet Amount | 4,422,000 |
Derivatives, index options | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 101,622,000 |
Balance Sheet Amount | 101,622,000 |
Mortgage loans on real estate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 486,892,000 |
Balance Sheet Amount | 486,892,000 |
Policy loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 71,286,000 |
Balance Sheet Amount | 71,286,000 |
Other long-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 137,670,000 |
Balance Sheet Amount | 137,670,000 |
Real estate acquired through foreclosure | 0 |
Debt securities available-for-sale: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 8,604,250,000 |
Fair Value | 9,068,946,000 |
Balance Sheet Amount | 9,068,946,000 |
Debt securities available-for-sale: | United States government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 45,941,000 |
Fair Value | 47,033,000 |
Balance Sheet Amount | 47,033,000 |
Debt securities available-for-sale: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 479,148,000 |
Fair Value | 505,960,000 |
Balance Sheet Amount | 505,960,000 |
Debt securities available-for-sale: | Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 62,979,000 |
Fair Value | 62,391,000 |
Balance Sheet Amount | 62,391,000 |
Debt securities available-for-sale: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 745,359,000 |
Fair Value | 784,969,000 |
Balance Sheet Amount | 784,969,000 |
Debt securities available-for-sale: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 6,322,471,000 |
Fair Value | 6,700,953,000 |
Balance Sheet Amount | 6,700,953,000 |
Debt securities available-for-sale: | Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 27,016,000 |
Fair Value | 27,757,000 |
Balance Sheet Amount | 27,757,000 |
Debt securities available-for-sale: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 530,702,000 |
Fair Value | 549,623,000 |
Balance Sheet Amount | 549,623,000 |
Debt securities available-for-sale: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 390,634,000 |
Fair Value | 390,260,000 |
Balance Sheet Amount | 390,260,000 |
Debt securities trading: | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 1,066,108,000 |
Fair Value | 1,077,438,000 |
Balance Sheet Amount | 1,077,438,000 |
Debt securities trading: | United States government and government agencies and authorities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 0 |
Fair Value | 0 |
Balance Sheet Amount | 0 |
Debt securities trading: | States, municipalities, and political subdivisions | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 16,644,000 |
Fair Value | 17,487,000 |
Balance Sheet Amount | 17,487,000 |
Debt securities trading: | Foreign governments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 0 |
Fair Value | 0 |
Balance Sheet Amount | 0 |
Debt securities trading: | Public utilities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 36,282,000 |
Fair Value | 36,973,000 |
Balance Sheet Amount | 36,973,000 |
Debt securities trading: | Corporate | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 413,250,000 |
Fair Value | 423,778,000 |
Balance Sheet Amount | 423,778,000 |
Debt securities trading: | Commercial mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 240,484,000 |
Fair Value | 240,573,000 |
Balance Sheet Amount | 240,573,000 |
Debt securities trading: | Residential mortgage-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 45,195,000 |
Fair Value | 44,772,000 |
Balance Sheet Amount | 44,772,000 |
Debt securities trading: | Asset-backed | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized Cost or Cost | 314,253,000 |
Fair Value | 313,855,000 |
Balance Sheet Amount | $ 313,855,000 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Cash and cash equivalents | $ 714,624 | $ 581,059 | |
Other assets | 126,609 | 135,310 | |
Total assets | 14,330,189 | 14,648,270 | $ 12,553,447 |
Liabilities: | |||
Current Federal income tax liability | 2,331 | 0 | |
Other liabilities | 154,409 | 193,904 | |
Total liabilities | 11,790,498 | 12,108,520 | |
Stockholders' Equity: | |||
Additional paid-in capital | 41,716 | 41,716 | |
Accumulated other comprehensive income | 215,953 | 395,421 | |
Increase (decrease) to retained earnings | 2,281,986 | 2,102,577 | |
Total stockholders' equity | 2,539,691 | 2,539,750 | $ 2,116,430 |
Total liabilities and stockholders' equity | 14,330,189 | 14,648,270 | |
The Company | |||
ASSETS | |||
Investment in subsidiaries | 2,538,996 | 2,535,669 | |
Cash and cash equivalents | 7,017 | 8,376 | |
Deferred Federal income tax asset | 8,258 | 7,721 | |
Other assets | 263 | 293 | |
Total assets | 2,554,534 | 2,552,059 | |
Liabilities: | |||
Current Federal income tax liability | 14,388 | 11,667 | |
Other liabilities | 455 | 642 | |
Total liabilities | 14,843 | 12,309 | |
Stockholders' Equity: | |||
Additional paid-in capital | 41,716 | 41,716 | |
Accumulated other comprehensive income | 215,953 | 395,421 | |
Increase (decrease) to retained earnings | 2,281,986 | 2,102,577 | |
Total stockholders' equity | 2,539,691 | 2,539,750 | |
Total liabilities and stockholders' equity | 2,554,534 | 2,552,059 | |
Class A | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 34 | 34 | |
Class A | The Company | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 34 | 34 | |
Class B | |||
Stockholders' Equity: | |||
Common stock, value outstanding | 2 | 2 | |
Class B | The Company | |||
Stockholders' Equity: | |||
Common stock, value outstanding | $ 2 | $ 2 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Financial Position Additional Information (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
Class B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
The Company | Class A | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 3,436,020 | 3,436,020 |
Common stock, shares outstanding (in shares) | 3,436,020 | 3,436,020 |
The Company | Class B | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000 | 200,000 |
Common stock, shares issued (in shares) | 200,000 | 200,000 |
Common stock, shares outstanding (in shares) | 200,000 | 200,000 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Net investment income | $ 562,530 | $ 417,202 | $ 555,492 |
Total revenues | 824,091 | 694,742 | 819,188 |
Expenses: | |||
Other operating expenses | 126,612 | 104,584 | 104,558 |
Total expenses | 596,834 | 582,674 | 654,032 |
Earnings (loss) before Federal income taxes | 227,257 | 112,068 | 165,156 |
Federal income taxes/(benefit) | 46,576 | 19,756 | 33,540 |
Net earnings (loss) | 180,681 | 92,312 | 131,616 |
The Company | |||
Revenues: | |||
Dividend income from subsidiaries | 0 | 1,395 | 36,000 |
Net investment income | 10 | 9 | 0 |
Total revenues | 10 | 1,404 | 36,000 |
Expenses: | |||
Other operating expenses | 2,660 | 3,322 | 5,358 |
Total expenses | 2,660 | 3,322 | 5,358 |
Earnings (loss) before Federal income taxes | (2,650) | (1,918) | 30,642 |
Federal income taxes/(benefit) | (537) | (2,212) | (1,739) |
Earnings (loss) before equity in earnings of affiliates | (2,113) | 294 | 32,381 |
Equity in earnings of affiliates | 182,794 | 92,018 | 99,235 |
Net earnings (loss) | $ 180,681 | $ 92,312 | $ 131,616 |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net earnings | $ 180,681 | $ 92,312 | $ 131,616 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Depreciation and amortization | 13,001 | 11,903 | 11,677 |
Change in: | |||
Federal income tax, net | 12,739 | (14,156) | 21,580 |
Deferred Federal income tax | 3,746 | 20,031 | (25,294) |
Net cash provided by (used in) operating activities | 276,825 | 373,071 | 329,029 |
Cash flows from investing activities: | |||
Payment to acquire businesses, net of cash acquired | 0 | 0 | (189,121) |
Net cash provided by investing activities | 180,595 | 393,537 | 377,874 |
Cash flows from financing activities: | |||
Dividends on common stock | (1,272) | (1,273) | (1,273) |
Net cash provided by (used in) financing activities | (323,835) | (439,093) | (586,017) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 133,565 | 327,534 | 121,549 |
Cash, cash equivalents, and restricted cash at beginning of year | 581,059 | 253,525 | 131,976 |
Cash, cash equivalents, and restricted cash at end of year | 714,624 | 581,059 | 253,525 |
The Company | |||
Cash flows from operating activities: | |||
Net earnings | 180,681 | 92,312 | 131,616 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Equity in earnings of affiliates | (182,794) | (92,018) | (99,235) |
Depreciation and amortization | 30 | 30 | 30 |
Change in: | |||
Federal income tax, net | 2,721 | 16,397 | (547) |
Deferred Federal income tax | (537) | (7,481) | (637) |
Due to subsidiaries, net | 0 | 0 | 0 |
Other, net | (188) | (830) | (4) |
Net cash provided by (used in) operating activities | (87) | 8,410 | 31,223 |
Cash flows from investing activities: | |||
Payment to acquire businesses, net of cash acquired | 0 | 0 | (30,154) |
Net cash provided by investing activities | 0 | 0 | (30,154) |
Cash flows from financing activities: | |||
Dividends on common stock | (1,272) | (1,273) | (1,273) |
Net cash provided by (used in) financing activities | (1,272) | (1,273) | (1,273) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (1,359) | 7,137 | (204) |
Cash, cash equivalents, and restricted cash at beginning of year | 8,376 | 1,239 | 1,443 |
Cash, cash equivalents, and restricted cash at end of year | $ 7,017 | $ 8,376 | $ 1,239 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant - Basis of Presentation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
National Western Life Insurance Company: | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividend payments | $ 0 | $ 0 | $ 36 |
NIS | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividend payments | $ 0 | $ 1.4 | $ 0 |
Schedule IV - Reinsurance Inf_2
Schedule IV - Reinsurance Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Life insurance face in force | |||
Gross Amount | $ 20,888,431 | $ 21,954,160 | $ 23,299,829 |
Ceded to Other Companies | 3,781,167 | 4,013,073 | 4,252,828 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 17,107,264 | $ 17,941,087 | $ 19,047,001 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Premiums: | |||
Gross Amount | $ 96,268 | $ 98,554 | $ 96,077 |
Ceded to Other Companies | 6,419 | 6,217 | 6,041 |
Assumed from Other Companies | 194 | 205 | 212 |
Net amount | $ 90,043 | $ 92,542 | $ 90,248 |
Percentage of Amount Assumed to Net | 0.20% | 0.20% | 0.20% |
Life insurance | |||
Premiums: | |||
Gross Amount | $ 92,891 | $ 95,579 | $ 92,844 |
Ceded to Other Companies | 6,419 | 6,217 | 6,041 |
Assumed from Other Companies | 194 | 205 | 212 |
Net amount | $ 86,666 | $ 89,567 | $ 87,015 |
Percentage of Amount Assumed to Net | 0.20% | 0.20% | 0.20% |
Accident and health insurance | |||
Premiums: | |||
Gross Amount | $ 3,346 | $ 2,956 | $ 3,214 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 3,346 | $ 2,956 | $ 3,214 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Annuities | |||
Premiums: | |||
Gross Amount | $ 31 | $ 19 | $ 19 |
Ceded to Other Companies | 0 | 0 | 0 |
Assumed from Other Companies | 0 | 0 | 0 |
Net amount | $ 31 | $ 19 | $ 19 |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Schedule V - Valuation and Qu_2
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for possible losses on mortgage loans: | |||
Allowance for possible losses on mortgage loans: | |||
Balance at Beginning of Period | $ 2,486 | $ 675 | $ 675 |
Charged to costs and expenses | 501 | 1,307 | 0 |
Charged to retained earnings | 0 | 504 | 0 |
Reductions | 0 | 0 | 0 |
Balance at End of Period | 2,987 | 2,486 | 675 |
Allowance for current expected credit losses on debt securities | |||
Allowance for possible losses on mortgage loans: | |||
Balance at Beginning of Period | 0 | 0 | |
Charged to costs and expenses | 0 | 0 | |
Charged to retained earnings | 0 | 3,334 | |
Reductions | 0 | (3,334) | |
Balance at End of Period | 0 | 0 | 0 |
Allowance for possible losses on real estate: | |||
Allowance for possible losses on mortgage loans: | |||
Balance at Beginning of Period | 424 | 596 | 611 |
Charged to costs and expenses | 0 | 0 | 0 |
Charged to retained earnings | 0 | 0 | 0 |
Reductions | 0 | (172) | (15) |
Balance at End of Period | $ 424 | $ 424 | $ 596 |