What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-14 compared with 2025-05-15 · 176 added, 99 removed, 154 unchanged (64% of the section changed)

17 unchanged sentences

underwriting practices that result in higher mortality costs.

following table shows the condensed financial results of the insurance operations for the three month periods ended March 31, 2025 and

following table shows the condensed financial results of the insurance operations for the three and six month periods ended June 30,

2025 and 2024.

See Note 7 to the condensed consolidated financial statements.

Three months ended March 31,

months ended June 30,

(in thousands of dollars)

months ended June 30,

(in thousands of dollars)

Increase (Decrease)

Revenues from external customers:

Insurance premiums

Net investment income

Gains on investments and other assets

Gains (losses) on investments and other

Other revenues

3 unchanged sentences

Profitability

for the three month period ended March 31, 2025 decreased due to (a) a $2,536,000 increase in selling, general and administrative expenses,

(b) a $798,000 decrease in gains on investments and other assets, (c) a $332,000 increase in death benefits, (d) a $73,000 decrease in

insurance premiums and other considerations, (e) a $60,000 decrease in intersegment revenue, and (f) a $13,000 increase in amortization

of deferred policy acquisition costs, which were partially offset by (i) a $636,000 decrease in income tax expense, (ii) a $358,000 decrease

in future policy benefits, (iii) a $168,000 increase in other revenues, (iv) a $26,000 decrease in intersegment expenses, (v) a $25,000

decrease in interest expense, (vi) a $19,000 increase in net investment income, and (vii) a $14,000 decrease in surrenders and other

policy benefits.

for the six month period ended June 30, 2025 decreased due to (a) a $3,493,000 increase in selling, general and administrative expenses,

primarily attributable to a $2,407,000 increase in personnel expenses due to an annual increase in salaries and key new hires as a part

of the Company’s growth strategy, (b) a $1,492,000 increase in amortization of deferred policy acquisition costs, (c) a $1,283,000

increase in death benefits, (d) a $174,000 increase in surrenders and other policy benefits (e) a $137,000 decrease in intersegment revenue,

and (f) a $42,000 increase in interest expense, which were partially offset by (i) a $2,834,000 increase in net investment income, (ii)

a $771,000 decrease in future policy benefits, (iii) a $373,000 decrease in income tax expense, (iv) a $330,000 increase in other revenues,

(v) a $286,000 increase in gains on investments and other assets, (vi) a $153,000 increase in insurance premiums and other considerations,

and (vii) a $95,000 decrease in intersegment expenses.

and Mortuary Operations

8 unchanged sentences

revenue for cemetery land sales occurs when 10% of the purchase price is received.

following table shows the condensed financial results of the cemetery and mortuary operations for the three month periods ended March

31, 2025 and 2024.

following table shows the condensed financial results of the cemetery and mortuary operations for the three and six month periods ended

June 30, 2025 and 2024.

See Note 7 to the condensed consolidated financial statements.

Three months ended March 31,

months ended June 30,

(in thousands of dollars)

months ended June 30,

(in thousands of dollars)

Increase (Decrease)

Revenues from external customers:

Cemetery revenues

Mortuary revenues

Net investment income

Gains on investments and other assets

Gains (losses) on investments and other

Other revenues

3 unchanged sentences

Profitability

in the three month period ended March 31, 2025 decreased due to (a) a $663,000 decrease in net investment income, (b) a $372,000 decrease

in gains on investments and other assets, (c) a $234,000 increase in selling, general and administrative expenses, and (d) a $1,000 decrease

in intersegment revenues, which were partially offset by (i) a $252,000 decrease in income tax expense, (ii) a $176,000 increase in mortuary

at-need sales, (iii) a $146,000 increase in cemetery pre-need sales, (iv) a $60,000 decrease in amortization of deferred policy acquisition

costs, (v) a $30,000 increase in cemetery at-need sales, (vi) a $21,000 decrease in cost of goods and services sold, (vii) a $15,000

increase in other revenues, and (viii) a $6,000 decrease in intersegment expenses.

in the six month period ended June 30, 2025 decreased due to (a) a $772,000 decrease in net investment income, (b) a $520,000 increase

in selling, general and administrative expenses, primarily attributable to a $349,000 increase in personnel expenses, (c) a $243,000

decrease in cemetery pre-need sales, (d) a $132,000 decrease in cemetery at-need sales, and (e) a $1,000 decrease in intersegment revenues,

which were partially offset by (i) a $344,000 decrease in income tax expense, (ii) a $216,000 increase in mortuary at-need sales, (iii)

a $103,000 decrease in amortization of deferred policy acquisition costs, (iv) a $102,000 increase in gains on investments and other

assets, (v) a $97,000 decrease in cost of goods and services sold, (vi) a $25,000 increase in other revenues, and (vii) a $14,000 decrease

in intersegment expenses.

Company’s wholly owned subsidiary, SecurityNational Mortgage Company (“SecurityNational Mortgage), is a mortgage lender incorporated

19 unchanged sentences

on loan originations classified as ‘purchases,’ although not as significant as those in the refinance classification.

the three month periods ended March 31, 2025 and 2024, SecurityNational Mortgage originated 1,508 loans ($517,886,000 total volume) and

the six month periods ended June 30, 2025 and 2024, SecurityNational Mortgage originated 3,375 loans ($1,134,783,000 total volume) and

3,494 loans ($1,089,824,000 total volume), respectively.

following table shows the condensed financial results of the mortgage operations for the three month periods ended March 31, 2025 and

following table shows the condensed financial results of the mortgage operations for the three and six month periods ended June 30, 2025

See Note 7 to the condensed consolidated financial statements.

Three months ended March 31,

months ended June 30,

(in thousands of dollars)

months ended June 30,

(in thousands of dollars)

Increase (Decrease)

Revenues from external customers

8 unchanged sentences

Total segment revenues

Segment net loss

for the three month period ended March 31, 2025 increased due to (a) a $2,025,000 increase in commissions, (b) a $804,000 increase in

personnel expenses, (c) a $332,000 increase in other expenses, (d) a $120,000 increase in advertising expenses, (e) a $117,000 increase

in interest expense, (f) a $102,000 decrease in income from loan originations, (g) a $99,000 decrease in net investment income, (h) a

$87,000 decrease in the fair value of loan commitments, (i) a $61,000 decrease in other revenues, (j) a $25,000 decrease in intersegment

revenues, and (k) a $3,000 increase in depreciation on property and equipment, which were partially offset by (i) a $2,224,000 increase

in secondary gains from investors, (ii) a $942,000 increase in the fair value of loans held for sale, (iii) a $404,000 decrease in rent

and rent related expenses, (iv) a $87,000 increase in gains on investments and other assets, (v) a $53,000 decrease in intersegment expenses,

(vi) a $34,000 decrease in costs related to funding mortgage loans, and (vii) a $24,000 increase in income tax benefit.

Segment net earnings

for the six month period ended June 30, 2025 increased due to (a) a $2,384,000 increase in commissions, (b) a $941,000 increase in personnel

expenses, (c) a $895,000 increase in other expenses, (d) a $560,000 decrease in income from loan originations, (e) a $385,000 decrease

in the fair value of loan commitments, (f) a $324,000 increase in costs related to funding mortgage loans, (g) a $272,000 increase in

advertising expenses, (h) a $270,000 increase in interest expense, (i) a $270,000 decrease in net investment income, (j) a $119,000 decrease

in other revenues, and (k) a $95,000 decrease in intersegment revenues, which were partially offset by (i) a $3,735,000 increase in secondary

gains from investors, (ii) a $717,000 decrease in rent and rent related expenses, (iii) a $483,000 increase in income tax benefit, (iv)

a $124,000 decrease in intersegment expenses, (v) a $53,000 increase in the fair value of loans held for sale, and (vi) a $49,000 increase

in gains on investments and other assets.

Results of Operations

month period ended March 31, 2025, Compared to Three month period ended March 31, 2024

revenues increased by $1,552,000, or 1.9%, to $82,740,000 for the three month period ended March 31, 2025, from $81,188,000 for the comparable

month period ended June 30, 2025, Compared to Three month period ended June 30, 2024

revenues increased by $3,750,000, or 4.4%, to $89,541,000 for the three month period ended June 30, 2025, from $85,791,000 for the comparable

period in 2024.

Contributing to this increase in total revenues was a $2,977,000 increase in mortgage fee income, a $352,000 increase

in net mortuary and cemetery sales, and a $122,000 increase in other revenues, which were partially offset by a $1,083,000 decrease in

gains on investments and other assets, a $744,000 decrease in net investment income, and a $72,000 decrease in insurance premiums and

other considerations.

fee income increased by $2,977,000, or 13.6%, to $24,809,000, for the three month period ended March 31, 2025, from $21,832,000 for the

comparable period in 2024.

This increase was primarily due to a $2,224,000 increase in secondary gains from mortgage loans sold to third-party

investors into the secondary market and a $942,000 increase in the fair value of loans held for sale, which were partially offset by

a $102,000 decrease in loan fees and interest income net of an increase in the provision for loan loss reserve and an $87,000 decrease

in the fair value of loan commitments.

premiums and other considerations decreased by $72,000, or 0.2%, to $29,780,000 for the three month period ended March 31, 2025, from

Contributing to this increase in total revenues was a $2,536,000 increase in net investment income, a $1,520,000 increase

in gains on investments and other assets, a $225,000 increase in insurance premiums and other considerations, and a $114,000 increase

in other revenues, which were partially offset by a $511,000 decrease in net mortuary and cemetery sales and a $134,000 decrease in mortgage

fee income decreased by $134,000, or 0.5%, to $29,485,000, for the three month period ended June 30, 2025, from $29,619,000 for the comparable

period in 2024.

This decrease was primarily due to a $1,511,000 increase in secondary gains from mortgage loans sold to third-party investors

into the secondary market, which was partially offset by a $889,000 decrease in the fair value of loans held for sale, a $459,000 decrease

in loan fees, interest income, and the provision for loan loss reserve, and a $297,000 decrease in the fair value of loan commitments.

premiums and other considerations increased by $225,000, or 0.8%, to $30,186,000 for the three month period ended June 30, 2025, from

$29,961,000 for the comparable period in 2024.

This decrease was primarily due to a decrease of $350,000 in first year premiums, which

was partially offset by an increase of $278,000 in renewal premiums.

investment income decreased by $744,000, or 3.7%, to $19,203,000 for the three month period ended March 31, 2025, from $19,947,000 for

the comparable period in 2024.

This decrease was primarily attributable to a $850,000 decrease in mortgage loan interest, a $555,000

decrease in real estate income, a $288,000 decrease in interest on cash and cash equivalents, a $57,000 decrease in policy loan interest,

and a $37,000 decrease in other investment income, which were partially offset by a $656,000 increase in insurance assignment income,

a $261,000 increase in fixed maturity securities income, a $102,000 decrease in investment expenses, and a $24,000 increase in equity

securities income.

mortuary and cemetery sales increased by $352,000, or 5.1%, to $7,300,000 for the three month period ended March 31, 2025, from $6,948,000

This increase was primarily due to an increase of $587,000 in renewal premiums, which

was partially offset by a decrease of $362,000 in first year premiums.

investment income increased by $2,536,000, or 14.1%, to $20,581,000 for the three month period ended June 30, 2025, from $18,045,000

for the comparable period in 2024.

This increase was primarily due to a $146,000 increase in cemetery pre-need sales, a $176,000 increase

in mortuary at-need sales, and a $30,000 increase in cemetery at-need sales.

(losses) on investments and other assets decreased by $1,083,000 to $586,000 for the three month period ended March 31, 2025, from $1,669,000

This increase was primarily attributable to a $5,436,000 increase in mortgage loan interest, a $404,000

increase in fixed maturity securities income, a $252,000 increase in insurance assignment income, a $71,000 increase in equity securities

income, and a $46,000 increase in policy loan interest, which were partially offset by a $2,380,000 increase in investment expenses,

a $762,000 decrease in interest on cash and cash equivalents, a $412,000 decrease in real estate income, and a $119,000 decrease in other

investment income.

mortuary and cemetery sales decreased by $511,000, or 6.6%, to $7,258,000 for the three month period ended June 30, 2025, from $7,769,000

for the comparable period in 2024.

This decrease in gains on investments and other assets was primarily due to a $1,094,000 decrease

in gains on equity securities, primarily attributable to decreases in the fair value of these equity securities, a $103,000 decrease

in gains on other assets, and a $31,000 decrease in gains on fixed maturity securities, which were partially offset by a $145,000 increase

in gains on real estate.

revenues increased by $122,000, or 13.0%, to $1,062,000 for the three month period ended March 31, 2025, from $940,000 for the comparable

This decrease was primarily due to a $388,000 decrease in cemetery pre-need sales and a $163,000 decrease

in cemetery at-need sales, which were partially offset by a $40,000 increase in mortuary at-need sales.

(losses) on investments and other assets increased by $1,520,000 to $1,143,000 in net gains for the three month period ended June 30,

2025, from $377,000 in net losses for the comparable period in 2024.

This increase in gains on investments and other assets was primarily

due to a $1,190,000 increase in gains on equity securities, primarily attributable to increases in the fair value of these equity securities,

a $164,000 increase in gains on real estate, a $119,000 increase in gains on other assets, and a $47,000 increase in gains on fixed maturity

revenues increased by $114,000, or 14.7%, to $889,000 for the three month period ended June 30, 2025, from $775,000 for the comparable

period in 2024.

1 unchanged sentence

in servicing fee revenue due to a decrease in the retention of mortgage servicing rights.

benefits, surrenders and other policy benefits, and future policy benefits decreased by an aggregate of $40,000 or 0.2%, to $26,235,000

for the three month period ended March 31, 2025, from $26,275,000 for the comparable period in 2024.

This decrease was primarily the

result of a $358,000 decrease in future policy benefits and a $14,000 decrease in surrender and other policy benefits which were partially

offset by a $332,000 increase in death benefits.

of deferred policy and pre-need acquisition costs and value of business acquired decreased by $47,000, or 1.0%, to $4,697,000 for the

three month period ended March 31, 2025, from $4,744,000 for the comparable period in 2024.

This decrease was primarily due to increased

payment consistency from premium-paying products.

general and administrative expenses increased by $5,616,000, or 14.7%, to $43,864,000 for the three month period ended March 31, 2025,

benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $727,000 or 3.0%, to $25,053,000

for the three month period ended June 30, 2025, from $24,326,000 for the comparable period in 2024.

This increase was primarily the result

of a $951,000 increase in death benefits and a $189,000 increase in surrender and other policy benefits, which were partially offset

by a $413,000 decrease in future policy benefits.

of deferred policy and pre-need acquisition costs and value of business acquired increased by $1,436,000, or 33.4%, to $5,737,000 for

the three month period ended June 30, 2025, from $4,301,000 for the comparable period in 2024.

This increase was primarily due to an

increase in the average outstanding balance of deferred policy and pre-need acquisition costs and primarily due to an increase in the

termination rate for deaths and lapses.

general and administrative expenses increased by $2,496,000, or 5.5%, to $47,961,000 for the three month period ended June 30, 2025,

from $45,465,000 for the comparable period in 2024.

This increase was primarily the result of a $2,457,000 increase in commissions, a

$2,327,000 increase in personnel expenses, a $1,115,000 increase in other expenses, a $136,000 increase in advertising expense, and a

$28,000 increase in depreciation on property and equipment, which were partially offset by a $413,000 decrease in rent and rent related

expenses and a $34,000 decrease in costs related to funding mortgage loans.

expense increased by $92,000, or 9.0%, to $1,119,000 for the three month period ended March 31, 2025, from $1,027,000 for the comparable

This increase was primarily the result of a $1,369,000 increase in personnel expenses

due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, a $956,000 increase in other

expenses, a $358,000 increase in costs related to funding mortgage loans, a $154,000 increase in advertising expense, a $13,000 increase

in commissions, and a $6,000 increase in depreciation on property and equipment, which were partially offset by a $360,000 decrease in

rent and rent related expenses.

expense increased by $220,000, or 20.5%, to $1,293,000 for the three month period ended June 30, 2025, from $1,073,000 for the comparable

period in 2024.

This increase was primarily due to an increase of $153,000 in interest expense on mortgage warehouse lines of credit

for loans held for sale, which was partially offset by a decrease of $25,000 in interest expense on bank loans.

of goods and services sold-mortuaries and cemeteries decreased by $21,000, or 1.6%, to $1,253,000 for the three month period ended March

for loans held for sale and an increase of $67,000 in interest expense on bank loans.

of goods and services sold-mortuaries and cemeteries decreased by $76,000, or 6.2%, to $1,159,000 for the three month period ended June

30, 2025, from $1,235,000 for the comparable period in 2024.

This decrease was primarily due to a decrease of $63,000 in at-need sales

and a decrease of $13,000 in pre-need sales.

summary, total benefits and expenses were $81,205,000, or 90.7% of total revenues, for the three month period ended June 30, 2025, as

compared to $76,402,000, or 89.1% of total revenues, for the comparable period in 2024.

month period ended June 30, 2025, Compared to Six month period ended June 30, 2024

revenues increased by $5,301,000, or 3.2%, to $172,281,000 for the six month period ended June 30, 2025, from $166,980,000 for the comparable

period in 2024.

Contributing to this increase in total revenues was a $2,843,000 increase in mortgage fee income, a $1,792,000 increase

in net investment income, a $437,000 increase in gains on investments and other assets, a $236,000 increase in other revenues, and a

$153,000 increase in insurance premiums and other considerations, which were partially offset by a $160,000 decrease in net mortuary

and cemetery sales.

fee income increased by $2,843,000, or 5.5%, to $54,294,000, for the six month period ended June 30, 2025, from $51,451,000 for the comparable

period in 2024.

This increase was primarily due to a $3,735,000 increase in secondary gains from mortgage loans sold to third-party investors

into the secondary market and a $53,000 increase in the fair value of loans held for sale, which were partially offset by a $560,000

decrease in loan fees, interest income, and the provision for loan loss reserve and an $385,000 decrease in the fair value of loan commitments.

premiums and other considerations increased by $153,000, or 0.3%, to $59,965,000 for the six month period ended June 30, 2025, from $59,812,000

for the comparable period in 2024.

This increase was primarily due to an increase of $847,000 in renewal premiums, which was partially

offset by a decrease of $694,000 in first year premiums.

investment income increased by $1,792,000, or 4.7%, to $39,783,000 for the six month period ended June 30, 2025, from $37,991,000 for

the comparable period in 2024.

This increase was primarily attributable to a $4,586,000 increase in mortgage loan interest, a $908,000

increase in insurance assignment income, a $666,000 increase in fixed maturity securities income, and a $95,000 increase in equity securities

income, which were partially offset by a $2,278,000 increase in investment expenses, a $1,051,000 decrease in interest on cash and cash

equivalents, a $968,000 decrease in real estate income, a $156,000 decrease in other investment income, and a $10,000 decrease in policy

loan interest.

mortuary and cemetery sales decreased by $160,000, or 1.1%, to $14,558,000 for the six month period ended June 30, 2025, from $14,718,000

for the comparable period in 2024.

This decrease was primarily due to a $243,000 decrease in cemetery pre-need sales and a $132,000 decrease

in cemetery at-need sales, which were partially offset by a $216,000 increase in mortuary at-need sales.

(losses) on investments and other assets increased by $437,000, or 33.8% to $1,729,000 for the six month period ended June 30, 2025,

from $1,292,000 for the comparable period in 2024.

This increase in gains on investments and other assets was primarily due to a $308,000

increase in gains on real estate, a $96,000 increase in gains on equity securities, a $17,000 increase in gains on other assets, and

a $16,000 increase in gains on fixed maturity securities.

revenues increased by $236,000, or 13.8%, to $1,951,000 for the six month period ended June 30, 2025, from $1,715,000 for the comparable

period in 2024.

This increase was primarily due to an increase of $324,000 in other miscellaneous revenues and a decrease of $88,000

in servicing fee revenue due to a decrease in the retention of mortgage servicing rights.

benefits, surrenders and other policy benefits, and future policy benefits increased by an aggregate of $687,000 or 1.4%, to $51,288,000

for the six month period ended June 30, 2025, from $50,601,000 for the comparable period in 2024.

This increase was primarily the result

of a $1,283,000 increase in death benefits and a $175,000 increase in surrender and other policy benefits, which were partially offset

by $771,000 decrease in future policy benefits.

of deferred policy and pre-need acquisition costs and value of business acquired increased by $1,389,000, or 15.4%, to $10,434,000 for

the six month period ended June 30, 2025, from $9,045,000 for the comparable period in 2024.

This increase was primarily due to an increase

in the average outstanding balance of deferred policy and pre-need acquisition costs and primarily due to an increase in the termination

rate for deaths and lapses.

general and administrative expenses increased by $8,112,000, or 9.7%, to $91,825,000 for the six month period ended June 30, 2025, from

$83,713,000 for the comparable period in 2024.

This increase was primarily the result of a $3,696,000 increase in personnel expenses

due to an annual increase in salaries and key new hires as a part of the Company’s growth strategy, a $2,469,000 increase in commissions,

a $2,071,000 increase in other expenses, a $324,000 increase in costs related to funding mortgage loans, a $291,000 increase in advertising

expense, and a $34,000 increase in depreciation on property and equipment, which were partially offset by a $773,000 decrease in rent

and rent related expenses.

expense increased by $312,000, or 14.8%, to $2,413,000 for the six month period ended June 30, 2025, from $2,101,000 for the comparable

period in 2024.

This increase was primarily due to an increase of $270,000 in interest expense on mortgage warehouse lines of credit

for loans held for sale and an increase of $42,000 in interest expense on bank loans.

of goods and services sold-mortuaries and cemeteries decreased by $97,000, or 3.9%, to $2,413,000 for the six month period ended June

30, 2025, from $2,510,000 for the comparable period in 2024.

This decrease was primarily due to a decrease of $103,000 in at-need sales,

which was partially offset by an increase of $6,000 in pre-need sales.

summary total benefits and expenses were $77,169,000, or 93.3% of total revenues, for the three month period ended March 31, 2025, as

summary, total benefits and expenses were $158,373,000, or 91.9% of total revenues, for the six month period ended June 30, 2025, as

compared to $147,971,000, or 88.6% of total revenues, for the comparable period in 2024.

9 unchanged sentences

maintenance of existing policies, debt service, and to meet current operating expenses.

of March 31, 2025, the Company’s subsidiary SecurityNational Mortgage was in compliance with all covenants under its warehouse

lines of credit.

The Company has also performed an analysis of the funding capacities of both internal and external sources and has determined

that there are sufficient funds to continue its business model.

The Company continues to negotiate other warehouse lines of credit with

other lenders.

the three month periods ended March 31, 2025 and 2024, the Company’s operations provided cash of approximately $9,586,000 and of

approximately $25,077,000, respectively.

As of June 30, 2025, SecurityNational Mortgage was not in compliance with

the net income covenant of Western Alliance Bank’s warehouse line of credit.

SecurityNational Mortgage is in the process of receiving

In the unlikely event the Company is required to repay the outstanding advances of approximately $12,751,822 on the warehouse

lines of credit, the Company has sufficient cash to do so.

The Company has also performed an analysis of its funding capacities of both

internal and external sources and has determined that there are sufficient funds to continue its current business model.

The Company continues

to negotiate other warehouse lines of credit with other lenders.

the six month periods ended June 30, 2025 and 2024, the Company’s operations provided cash of approximately $1,905,000 and of approximately

$8,104,000, respectively.

The decrease in cash provided by operations was due primarily to the decrease in net earnings.

and in loans held for sale.

Company expects to pay out liabilities under its funeral plans over the long term given the nature of those plans.

19 unchanged sentences

Bonds owned by the insurance

subsidiaries amounted to $353,780,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of March 31, 2025 and December

subsidiaries amounted to $372,354,000 (at estimated fair value) and $348,774,000 (at estimated fair value) as of June 30, 2025 and December

31, 2024, respectively.

This represented 35.5% and 38.0% of the total investments of the Company as of March 31, 2025 and December 31,

This represented 35.7% and 38.0% of the total investments of the Company as of June 30, 2025 and December 31,

2024, respectively.

2 unchanged sentences

Under this rating system, there are six categories used for the rating of bonds.

As of March 31, 2025, 1.8% (or $6,473,000)

As of June 30, 2025, 2.0% (or $7,314,000)

and as of December 31, 2024, 2.4% (or $8,431,000) of the Company’s total bond investments were invested in bonds in rating categories

2 unchanged sentences

minimum capital levels based on the perceived risk of assets, liabilities, disintermediation, and business risk.

As of March 31, 2025

As of June 30, 2025

and December 31, 2024, the life insurance subsidiaries were in compliance with the regulatory criteria.

Company’s total capitalization of stockholders’ equity, bank and other loans payable was $469,317,000 as of March 31, 2025,

Company’s total capitalization of stockholders’ equity, bank and other loans payable was $477,687,000 as of June 30, 2025,

as compared to $445,758,000 as of December 31, 2024.

2 unchanged sentences

Stockholders’ equity as a percent of total capitalization

was 73.8% and 76.1% as of March 31, 2025 and December 31, 2024, respectively.

was 74.3% and 76.1% as of June 30, 2025 and December 31, 2024, respectively.

rates measure the amount of insurance terminated during a particular period.

3 unchanged sentences

combined statutory capital and surplus of the Company’s life insurance subsidiaries was approximately $127,098,000 and $120,216,000

as of March 31, 2025, and December 31, 2024, respectively.

as of June 30, 2025, and December 31, 2024, respectively.

The life insurance subsidiaries cannot pay a dividend to their parent company

without the approval of state insurance regulatory authorities.

One Big Beautiful Bill Act (“OBBBA”), which was signed into law on July 4, 2025, significantly affected U.S.

income tax law.

The Company is currently assessing its impact, however the Company does not expect a material impact to its consolidated financial statements.

Quantitative and Qualitative Disclosures About Market Risk.

1 unchanged sentence

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-Q

Item 2. Management’s Discussion and Analysis