v3.26.1
Future Policy Benefits
 3 Months Ended
Mar. 31, 2026
Future Policy Benefits [Abstract]  
Future Policy Benefits
Note 5 – Future Policy Benefits
 
In 2025 and 2026, the Company updated the net premium ratio when updating for actual historical experience; future cash flow assumptions were reviewed and updated if appropriate.
 
The following tables summarize balances and changes in the liability for future policy benefits for nonparticipating traditional and limited-payment contracts.
 
March 31, 2026 Traditional Premium Paying Traditional Limited Pay Total
   Present Value of Net Premiums   Present Value of Benefits   Present Value of Net Premiums   Present Value of Benefits   Present Value of Net Premiums   Present Value of Benefits 
Balance, beginning of year $3,971,915  $21,601,667  $(10,695,983)  $28,599,439  $(6,724,068)  $50,201,106 
Beginning balance at original discount rate  4,193,882   22,968,581   (11,298,224)   30,964,035   (7,104,342)   53,932,616 
Effect of changes in CF considerations  804,625   1,146,539   2,412,098   2,759,828   3,216,723   3,906,367 
Effect of actual variances from expected  (123,404)   (182,893)   (163,991)   (201,740)   (287,395)   (384,633) 
                         
Adjusted beginning of period balance  4,875,103   23,932,227   (9,050,117)   33,522,123   (4,175,014)   57,454,350 
New issuances  -   -   -   -   -   - 
Interest accrual  301,005   2,025,061   699,261   1,536,997   1,000,266   3,562,058 
Premiums  (244,724)   -   (8,309)   -   (253,033)   - 
Benefit Payments  -   (1,980,822)   -   (1,350,001)   -   (3,330,823) 
                         
Ending balance at original discount rate  4,931,384   23,976,466   (8,359,165)   33,709,119   (3,427,781)   57,685,585 
Effect of changes in discount rate  (314,063)   (1,702,940)   529,586   (3,157,162)   215,523   (4,860,102) 
                         
Balance, end of year $4,617,321  $22,273,526  $(7,829,579)  $30,551,957  $(3,212,258)  $52,825,483 
                         
Net liability for future policy benefits $17,656,205 $38,381,536 $56,037,741
                         
Deferred profit liability $0 $1,169,982 $1,169,982
 
March 31, 2025 Traditional Premium Paying Traditional Limited Pay Total
   Present Value of Net Premiums   Present Value of Benefits   Present Value of Net Premiums   Present Value of Benefits   Present Value of Net Premiums   Present Value of Benefits 
Balance, beginning of year  4,293,082   22,118,278   (12,243,574)   26,826,750   (7,950,492)   48,945,028 
Beginning balance at original discount rate  4,711,513   24,563,973   (13,416,148)   30,636,495   (8,704,635)   55,200,468 
Effect of changes in CF considerations  -   -   -   -   -   - 
Effect of actual variances from expected  (262,585)   (280,702)   682,111   745,613   419,526   464,911 
                         
Adjusted beginning of period balance  4,448,928   24,283,271   (12,734,037)   31,382,108   (8,285,109)   55,665,379 
New issuances  -   -   -   -   -   - 
Interest accrual  958,415   1,062,781   290,511   (70,475)   1,248,926   992,306 
Premiums  (167,360)   -   (8,009)   -   (175,369)   - 
Benefit Payments  -   (583,546)   -   (391,763)   -   (975,309) 
                         
Ending balance at original discount rate  5,239,983   24,762,506   (12,451,535)   30,919,870   (7,211,552)   55,682,376 
Effect of changes in discount rate  (369,914)   (1,970,584)   867,412   (3,150,783)   497,498   (5,121,367) 
                         
Balance, end of year $4,870,069 $22,791,922  $(11,584,123) $27,769,087  $(6,714,054)  $50,561,009 
                         
Net liability for future policy benefits $17,921,853 $39,353,210 $57,275,063
                         
Deferred profit liability $0 $749,626 $749,626
 
The following table reconciles the net liability for future policy benefits to the liability for future policy benefits in the consolidated balance sheet. The DPL for the limited pay products is presented together with the liability for future policy benefits in the consolidated balance sheet. Furthermore, there is a block of participating policies that was deemed outside the scope of the changes related to the LFPB as a result of ASU 2018-12. Thus this block continues to hold reserves consistent with historical. Lastly, a block that is 100% coinsured to Park Avenue Life Insurance Company (PALIC) was not considered in the roll forwards. The Company continues to hold a gross reserve utilizing an approach consistent with the pre-ASU-2018-12 reserves, with a net liability of zero.
 
  March 31, 2026   December 31, 2025 
Traditional Premium Paying$17,656,205  $17,629,752 
Traditional Limited Pay 39,551,518   40,196,147 
Participating Policies 40,664,988   40,810,267 
Miscellaneous Reserves 2,088,813   2,108,019 
PALIC 13,533,857   13,559,661 
A&H 67,354   67,452 
Total$113,562,735  $114,371,298 
 
The undiscounted expected future benefit payments and gross premiums as of March 31, 2026, and 2025 are summarized as follows:
 
  Undiscounted   Original Present Value   Current Present Value 
March 31, 2026           
Gross premiums$11,632,160  $8,697,920  $8,144,074 
Benefits 84,540,332   57,685,586   52,825,483 
March 31, 2025           
Gross premiums$15,211,817  $11,037,712  $10,258,479 
Benefits 84,280,896   55,682,375   50,561,008 
 
The weighted-average interest rates as of March 31, 2026, and 2025 are summarized as follows:
 
  March 31, 2026   March 31, 2025 
Original discount rate 3.92%  3.92%
Current discount rate 5.00%  5.01%
 
The weighted-average durations of the liability in years as of March 31, 2026, and 2025 are summarized as follows:
 
  March 31, 2026   March 31, 2025 
Original duration of the liability in years 8.82   9.59 
Current duration of the liability in years 8.28   9.01 
 
The actual experience during the years ended March 31, 2026, and 2025 compared to what was expected for the years ended March 31, 2026 and 2025 is summarized as follows:
 
March 31, 2026  Amount Inforce   Mortality   Lapsation   Maturity   Total Benefits 
Expected $156,387,760  $925,776  $220,089  $49,639  $1,195,504 
Expected rate      0.59%  0.14%  0.03%  0.76%
Actual $156,758,780  $719,052  $282,305  $74,625  $1,075,982 
Actual rate      0.46%  0.18%  0.05%  0.69%
Actual to expected ratio      77.67%  128.27%  150.34%  90.00%
                     
March 31, 2025  Amount Inforce   Mortality   Lapsation   Maturity   Total Benefits 
Expected $163,647,604  $911,463  $228,670  $59,704  $1,199,837 
Expected rate      0.56%  0.14%  0.04%  0.74%
Actual $163,667,836  $975,310  $277,491  $64,437  $1,317,238 
Actual rate      0.60%  0.17%  0.04%  0.81%
Actual to expected ratio      107.00%  121.35%  107.93%  109.78%
 
Significant assumption inputs to the calculation of the liability for future policy benefits for the non­participating traditional and limited pay products include mortality, lapses and discount rates. Given limited credibility, the Company did not make any assumption changes since transition.
 
Policyholders’ Account Balances include universal life and annuity contracts.
 
The composition of universal life and annuities included in Policyholders’ Account Balances as of March 31, 2026, and December 31, 2025 is summarized as follows:
 
  March 31, 2026   December 31, 2025 
Annuity$24,606,957  $24,769,354 
Universal Life 67,113,257   68,151,712 
Total policyholder account balances$91,720,214  $92,921,066 
 
The range of crediting rates for policyholders’ account balances compared to the guaranteed minimum crediting rates as of March 31, 2026, and 2025 are presented as follows:
 
March 31, 2026  At Guaranteed Minimum   1 Basis Point to 50 Basis Points Above Guaranteed Minimum   51 Basis Point to 150 Basis Points Above Guaranteed Minimum   Greater Than 150 Basis Points Above Guaranteed Minimum   Total 
Less than 2.00% $749,191  $-  $-  $-  $749,191 
2.00% to 2.99%  195,584   -   -   -   195,584 
3.00% to 3.99%  5,328,031   -   -   -   5,328,031 
Greater than 4.00%  67,363,713   215,159   17,868,536   -   85,447,408 
Total $73,636,519  $215,159  $17,868,536  $-  $91,720,214 
 
March 31, 2025  At Guaranteed Minimum   1 Basis Point to 50 Basis Points Above Guaranteed Minimum   51 Basis Point to 150 Basis Points Above Guaranteed Minimum   Greater Than 150 Basis Points Above Guaranteed Minimum   Total 
Less than 2.00% $756,197  $-  $-  $-  $756,197 
2.00% to 2.99%  223,603   -   -   -   223,603 
3.00% to 3.99%  5,374,493   -   -   -   5,374,493 
Greater than 4.00%  70,228,348   210,071   17,789,927   -   88,228,346 
Total $76,582,641  $210,071  $17,789,927  $-  $94,582,639 
 
The change in the policyholders account balances for the years ended March 31, 2026, and 2025 are summarized as follows:
 
 March 31, 2026 March 31, 2025
  Universal Life   Annuity   Universal Life   Annuity 
Balance, beginning of year$68,151,712  $24,769,354  $69,836,708  $25,403,323 
Issuances 0   0   0   0 
Premiums received 932,906   38,984   942,635   45,710 
Policy charges (1,276,125)   0   (1,312,558)   0 
Benefit payments (1,051,559)   (349,404)   (586,098)   (161,205) 
Surrenders and withdrawals (222,741)   (124,796)   (118,885)   (308,991) 
Interest Credited 579,064   272,819   556,086   285,914 
                
Balance, end of year$67,113,257  $24,606,957  $69,317,888  $25,264,751 
                
Weighted average crediting rate 4.45%  4.01%  4.42%  4.02%
                
Cash surrender value$52,901,113  $24,592,609  $55,118,128  $25,247,675