What changed in this filing

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Item 1. Business

2025-03-31 compared with 2024-03-29 · 70 added, 71 removed, 286 unchanged (33% of the section changed)

6 unchanged sentences

licensed insurance agents who may also sell insurance products of other companies.

The cemetery and mortuary segment consists of eight

The cemetery and mortuary segment consists of eleven

mortuaries and five cemeteries in the state of Utah, one cemetery in the state of California, and one cemetery and four mortuaries in

4 unchanged sentences

loans for new construction, existing homes, and other real estate projects.

The mortgage segment operates through 100 retail offices

in 23 states and is an approved mortgage lender in several other states.

The mortgage segment operates through 97 retail offices in

26 states and is an approved mortgage lender in several other states.

Company’s design and structure are that each business segment is related to the other business segments and contributes to the

31 unchanged sentences

Company, through Security National Life, First Guaranty Insurance Company (“First Guaranty”), and Kilpatrick Life Insurance

Company (“Kilpatrick”), issues and distributes selected lines of life insurance and annuities.

Company (“Kilpatrick”), issues and administers selected lines of life insurance and annuities.

The Company’s life insurance

business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and health insurance

business includes funeral plans and interest-sensitive life insurance, as well as other traditional life, accident, and limited health

insurance products.

The Company places specific marketing emphasis on funeral plans through pre-need planning.

The Company’s insurance subsidiaries,

Southern Security Life Insurance Company, Inc.

(“Southern Security”) and Trans-Western Life Insurance Company (“Trans-Western”),

do not actively write policies, but service and maintain policies that were purchased prior to their acquisition by Security National

The Company’s insurance

subsidiaries, Kilpatrick, Southern Security Life Insurance Company, Inc.

(“Southern Security”) and Trans-Western Life Insurance

Company (“Trans-Western”), do not actively write policies, but service and maintain policies that were issued prior to their

acquisition by Security National Life.

funeral plan is a small face value life insurance policy that generally has face coverage of up to $30,000.

8 unchanged sentences

Company is licensed to sell insurance in 42 states.

The Company, in marketing its life insurance products, seeks to locate, develop and

In marketing its life insurance products, the Company seeks to locate, develop and

service specific niche markets.

19 unchanged sentences

Life Insurance

Policy/Cert Count as of December 31

Policy/Certificate Count as of December 31

Insurance in force as of December 31 (in thousands)

2 unchanged sentences

$ 3,379,921 (1)

$ 3,303,061 (1)

Premiums Collected (in thousands)

5 unchanged sentences

non-medical limits:

Medical information

required (APS or

(APS or exam)

underwriting life insurance, the Company will sometimes issue policies with higher premium rates for substandard risks.

16 unchanged sentences

Rates above the guaranteed interest rate credited are periodically

modified by the Board of Directors at its discretion.

For the Company to make a profit on an annuity product, the Company must maintain

an interest rate spread between its investment income and the interest rate credited to the annuities.

Commissions, issuance expenses,

and general and administrative expenses are deducted from this interest rate spread.

modified by the Company’s Board of Directors at its discretion.

For the Company to make a profit on an annuity product, the Company

must maintain an interest rate spread between its investment income and the interest rates credited to the annuities.

Commissions, issuance

expenses, and general and administrative expenses are deducted from this interest rate spread.

and Distribution

general market for the Company’s annuities is middle to older age individuals.

A major source of annuity sales come from direct

A major source of annuity sales comes from direct

agents and are sold in conjunction with other insurance sales.

2 unchanged sentences

following table summarizes the annuity business for the five years ended December 31, 2024:

Annuities Policy/Cert Count as of December 31

Annuities Policy/Certificate Count as of December 31

Deposits Collected (in thousands)

its various acquisitions, the Company occasionally acquires small blocks of accident and health insurance policies, which it continues

The Company offers a low-cost comprehensive diver’s accident insurance policy that provides worldwide coverage for

The Company offered a low-cost comprehensive diver’s accident insurance policy that provided worldwide coverage for

medical expense reimbursement in the event of a diving accident.

This product was discontinued in March 2024.

and Distribution

Company currently markets its diver’s accident insurance policies through the internet.

Company marketed its diver’s accident insurance policies through the internet.

following table summarizes the accident and health insurance business for the five years ended December 31, 2024:

Accident and Health Policy/Cert

Count as of December 31

Accident and Health Policy/Certificate Count as of December 31

Premiums Collected (in thousands)

7 unchanged sentences

insured and the risk ceded to the reinsurer.

is the Company’s policy to retain no more than $100,000 of ordinary insurance per insured life, with the excess risk being reinsured.

The total policy amount of life insurance reinsured by other companies as of December 31, 2023, was $333,211,000, which represented approximately

9.3% of the Company’s total life insurance policy amount in force on that date.

is the Company’s policy to retain no more than $100,000 of ordinary insurance per life insured, with the excess risk being reinsured.

The total policy amount of life insurance reinsured by other companies as of December 31, 2024 and 2023, was $325,189,000 and $333,211,000,

which represented approximately 9.4% and 9.3% of the Company’s total life insurance policy amount in force on that date, respectively.

“Management’s Discussion and Analysis of Results of Operations and Financial Condition” and “Notes to Consolidated

16 unchanged sentences

The Company has a mortuary at each of its cemeteries, other than

Holladay Memorial Park and Singing Hills Memorial Park, and has six separate stand-alone mortuary facilities.

Holladay Memorial Park and Singing Hills Memorial Park, and has ten separate stand-alone mortuary facilities.

and Distribution

3 unchanged sentences

radius of its mortuaries and cemeteries.

The Company’s at-need sales are similarly limited in geographic area.

The Company’s at-need sales are similarly limited in the geographic area.

Company actively seeks to sell its cemetery and funeral products to customers on a pre-need basis.

27 unchanged sentences

development projects.

The Company plans to continue its development endeavors as based upon its assessment of the market demand.

The Company plans to continue its development endeavors based upon its assessment of the market demand.

Development is an office development project comprising nearly 20 acres of land that is currently owned by the Company in the central

13 unchanged sentences

of the Center53 Development for additional Class A office space in the central valley of Salt Lake City.

Company’s insurance subsidiaries are subject to comprehensive regulation in the jurisdictions in which they do business under statutes

and regulations administered by state insurance commissioners.

Such regulation relates to, among other things, prior approval of the

acquisition of a controlling interest in an insurance company;

Company’s insurance subsidiaries are subject to comprehensive regulations in the jurisdictions in which they do business under

statutes and regulations administered by state insurance commissioners.

Such regulation relates to, among other things, prior approval

of the acquisition of a controlling interest in an insurance company;

standards of solvency which must be met and maintained;

licensing of insurers

and their agents;

of insurers and their agents;

nature of and limitations on investments;

deposits of securities for the benefit of policyholders;

approval of policy

forms and premium rates;

of policy forms and premium rates;

periodic examinations of the affairs of insurance companies;

annual and other reports required to be filed on

the financial condition of insurers or for other purposes;

and requirements regarding aggregate reserves for life policies and annuity

contracts, policy claims, unearned premiums, and other matters.

The Company’s insurance subsidiaries are subject to this type of

regulation in any state in which they conduct relevant business.

Such regulation may cause unforeseen costs and operational restrictions,

and delay implementation of the Company’s business plans.

Company’s life insurance subsidiaries are currently subject to regulation in Utah, Louisiana, Mississippi and Texas under insurance

annual and other reports required to

be filed on the financial condition of insurers or for other purposes;

and requirements regarding aggregate reserves for life policies

and annuity contracts, policy claims, unearned premiums, and other matters.

The Company’s insurance subsidiaries are subject to

this type of regulation in any state in which they conduct relevant business.

Such regulations may cause unforeseen costs and operational

restrictions, and delay implementation of the Company’s business plans.

Company’s life insurance subsidiaries are currently subject to regulations in Utah, Louisiana, Mississippi and Texas under insurance

holding company legislation, and other states where applicable.

Generally, intercompany transfers of assets and dividend payments from

insurance subsidiaries are subject to prior notice of approval from the relevant state insurance department where they are deemed “extraordinary”

insurance subsidiaries are subject to prior notice of approval from the relevant state insurance department when they are deemed “extraordinary”

under relevant state law.

2 unchanged sentences

Their business and accounts are also subject to examination by

these agencies.

The Company was last examined in 2021 (First Guaranty Insurance), 2022 (Security National Life, Southern Security and

Trans-Western) and 2021 (Kilpatrick Life).

Its most recent final examination reports have been approved by the insurance departments

and are public records.

these agencies every three to five years.

The Company’s life insurance subsidiaries completed their last examinations in 2021 and

2022 for the period ending December 31, 2020 and the resulting final examination reports were approved by the insurance departments and

are public records.

Security National Life, First Guaranty, Kilpatrick, and Southern Security have received notice of a regularly scheduled

multi-year examination for the years 2021-2024 that will commence in the second quarter of 2025.

Texas Department of Banking also audits pre-need insurance policies that are issued in the state of Texas.

23 unchanged sentences

Each year, the Company is required to have an audit

completed for each mortgage subsidiary by an independent registered public accounting firm to verify compliance with the relevant regulations.

completed for its mortgage subsidiary by an independent registered public accounting firm to verify compliance with the relevant regulations.

In addition to the government regulations, the Company must meet loan requirements, and underwriting guidelines of various investors

21 unchanged sentences

These insurance companies differentiate themselves through marketing techniques, product features, pricing, and customer

The Company’s insurance subsidiaries compete with a large number of insurance companies, many of which have greater financial

resources, longer business histories, and more diversified lines of insurance products than the Company.

In addition, such companies

generally have larger sales forces.

Further, the Company competes with mutual insurance companies which may have a competitive advantage

because all profits accrue to policyholders.

Because the Company is smaller by industry standards and lacks broad diversification of

risk, it may be more vulnerable to losses than larger, better-established companies.

The Company believes that its policies and rates

for the markets it serves are generally competitive.

cemetery and mortuary industry is highly competitive.

The Company’s insurance subsidiaries compete with many insurance companies, many of which have greater financial resources,

longer business histories, and more diversified lines of insurance products than the Company.

In addition, such companies generally have

larger sales forces.

Further, the Company competes with mutual insurance companies which may have a competitive advantage because all

profits accrue to policyholders.

Because the Company is smaller by industry standards and lacks broad diversification of risk, it may

be more vulnerable to losses than larger, better-established companies.

The Company believes that its policies and rates for the markets

it serves are generally competitive.

cemetery and mortuary industry are highly competitive.

In the Utah, California, and New Mexico markets where the Company competes, there

22 unchanged sentences

group health insurance plans.

Company has an employee safe harbor retirement plan for each business segment.

The retirement plans qualify under section 401(k) of the

Internal Revenue Code and, if approved by the board of directors, the Company makes a matching contribution in Company stock based on

the employee’s contribution amount.

Company provides other time off benefits such as paid sick and paid vacation time.

Company sponsors a 401(k) retirement plan for each business segment.

These retirement plans qualify under section 401(k) of the Internal

Revenue Code and, if approved by the Company’s Board of Directors, the Company makes a matching contribution in Company stock based

on the employee’s contribution amount.

Company provides other time off benefits such as paid sick time and paid vacation time.

The Company provides discounts on certain services

8 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business