Company: PRI
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029882
Chunk: 163

Company: Primerica, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 163
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 (234,241
        )

87

The amortized cost of AFS securities with a cost basis in excess of their fair values were $2,493.1 million and $2,406.5 million as of December 31, 2024 and 2023, respectively.As of December 31, 2024 and 2023, no allowance for credit losses was recorded for AFS securities. Substantially all of the unrealized losses were the result of change in market interest rates compared to the date the securities were acquired rather than the credit quality of the securities, and we have no present intention to dispose of them. For the years ended December 31, 2024, 2023, and 2022, we recorded $0.5 million, $2.2 million, and less than $0.1 million, respectively, for credit (gains) losses in the consolidated statements of income on AFS securities. We recognize credit losses on securities due to: (i) our intent to sell them; (ii) adverse credit events indicating that we will not receive the security’s contractual cash flows when contractually due, such as news of an impending filing for bankruptcy; (iii) analyses of the issuer’s most recent financial statements or other information indicating that significant liquidity deficiencies, significant losses and large declines in capitalization exist; and (iv) analyses of rating agency information for issuances with severe ratings downgrades indicating a significant increase in the possibility of default.  The rollforward of the allowance for credit losses on AFS securities was as follows:

        Year ended December 31,

        2024

        2023

        2022

        (In thousands)

        Allowance for credit losses, beginning of period
         
        $
        -

        $
        -

        $
        816

        Additions to the allowance for credit losses on securities for which credit losses were not previously recorded

        -

        -

        -

        Additional increases (decreases) to the allowance for credit losses on securities that had an allowance recorded in a previous period

        -

        -

        (81
        )

        Write-offs charged against the allowance, if any

        -

        -

        (735
        )

        Allowance for credit losses, end of period
         
        $
        -

        $
        -

        $
        -

      Derivatives. We have a deferred loss related to closed forward contracts, which were settled several years ago, that were used to