felanders/preprocessed huggingface dataset:
The Company anticipates significant revenue growth from the implementation of ICD-10-CM/PCS, whether implemented in October 1, 2013 or the newly proposed effective date of October 1, 2014.
The possible delay in implementation of ICD-10-CM/PCS is not expected to materially impact the revenues of the Company. Servicing this anticipated expansion in customer base will require the recruitment, training and on boarding of several hundred medical coders by the date of implementation. Over the next two years, we will focus mainly on new customer acquisition, expanding services to our existing client base, and expanding our medical coding staff. We plan to use a portion of the proceeds from the Offering to implement this planned growth. The proceeds raised in the Offering may not be sufficient to fully implement our growth plans and we may need additional resources and future financings to complete our growth.
Effective January 1, 2010, the Company adopted new provisions of the consolidation guidance included in Accounting Standards Codification 810, Consolidations that amended the consolidation guidance applicable to VIEs and the definition of a VIE, and requires enhanced disclosures to provide more information about an enterprise's involvement in a VIE. Under the consolidation guidance, the Company must make an evaluation of these entities to determine if they meet the definition of a VIE. Generally, a VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.
Management uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition, valuation of accounts receivable, and useful lives of property and equipment.
uncertainty in the credit markets and its impact on specific types of investments as well as on the broader financial markets;
We evaluate the underwriting results of our property and casualty insurance business in the aggregate and also for each of our separate business units.
Property and marine results were highly profitable in 2007 and 2006 compared with marginally profitable results in 2005. The less profitable results in 2005 were due to catastrophe losses, primarily from Hurricane Katrina. Catastrophes accounted for 8.2 percentage points of the combined loss and expense ratio in 2007 and 27.2 percentage points in 2005. The impact of catastrophes was negligible in 2006. Excluding the impact of catastrophes, the combined ratio was 76.1%, 73.4% and 71.6% in 2007, 2006 and 2005, respectively. Results in each year benefited from relatively few large non-catastrophe losses.
Approximately 80 manufacturers and distributors of asbestos products have filed for bankruptcy protection as a result of asbestos-related liabilities. A bankruptcy sometimes involves an agreement to a plan between the debtor and its creditors, including current and future asbestos claimants. Although the debtor is negotiating in part with its insurers’ money, insurers are generally given only limited opportunity to be heard. In addition to contributing to the overall number of claims, bankruptcy proceedings have also caused increased settlement demands against remaining solvent defendants.
We experienced favorable development of about $30 million in the personal automobile class. Case development during 2007 on previously reported claims was better than expected, reflecting improved case management. Also, the number of late reported claims was less than expected, reflecting a continuation of recent generally favorable frequency trends. Both of these factors were reflected in the determination of the carried loss reserves for this class at December 31, 2007.
We experienced favorable development of about $190 million in the short tail homeowners and commercial property classes, primarily related to the 2005 accident year. This favorable development arose from the lower than expected emergence of actual losses during 2006 relative to expectations used to establish our loss reserves at the end of 2005. The severity of late reported property claims that emerged during 2006 was lower than expected and case development, including salvage recoveries, on previously reported claims was better than expected.
Ratings are an important factor in establishing our competitive position in the insurance markets. There can be no assurance that our ratings will continue for any given period of time or that they will not be changed.
Consolidated financial statements of the Corporation at December 31, 2007 and 2006 and for each of the three years in the period ended December 31, 2007 and the report thereon of our independent registered public accounting firm, and the Corporation’s unaudited quarterly financial data for the two-year period ended December 31, 2007 are listed in Item 15(a) of this report.
The physical properties used by us are summarized in the table below. We believe that these properties are suitable and adequate for our business as presently conducted.
In addition, our insurance subsidiaries may become subject to claims for extra-contractual obligations (“ECO”) or risks in excess of policy limits (“XPL”) in connection with their insurance claims, particularly in Florida. These claims are sometimes referred to as “bad faith” actions as it is alleged that the insurance company acted in bad faith in the administration of a claim against an insured. Bad faith actions generally occur in instances where a jury verdict exceeds the insured’s policy limits. Under such circumstances, it is routinely alleged that the insurance company failed to negotiate a settlement of a claim in good faith within the insured’s policy limit. When establishing our liability for losses and LAE, we take our exposure for ECO/XPL claims into consideration. Within the Florida market for MPL insurance, the magnitude of ECO/XPL payments has increased in recent years and is expected to continue to be a significant source of uncertainty in establishing reserves. An award for an ECO/XPL claim against one of our insurance subsidiaries in excess of the applicable reinsurance could have an adverse effect on our consolidated financial condition, results of operations and cash flows.
For accident years 1998 through 2004, we experienced adverse development related to an assumed reinsurance program. This reinsurance program has been in run-off since 2004 and was commuted effective January 1, 2007 as discussed in Note 6, Liability for Loss and LAE and Note 7, Reinsurance to the notes to the consolidated financial statements presented elsewhere herein.
Level 3 inputs are unobservable and reflect management’s judgments about assumptions that market participants would use in pricing an asset or liability.
Fixed income securities for which pricing is based solely on broker / dealer quotes with inputs less observable are classified within Level 3.
We recognize share-based compensation expense under FAS 123(R) ratably using the straight-line attribution method over the expected vesting period. In addition, pursuant to FAS 123(R), we are required to estimate the amount of expected forfeitures when calculating share-based compensation costs. It is our policy to issue shares when options are exercised. We may repurchase shares of our common stock to offset the dilutive effect of shares issued under our stock incentive plans.
Comparison of Results for the Years Ended December 31, 2007 and 2006
Gross Premiums Written. Gross premiums written for the year ended December 31, 2002 increased by $740.9 million, or 64.2%, to $1.9 billion from $1.2 billion for the year ended December 31, 2001. Insurance and reinsurance market conditions improved substantially on a global basis the past two years, providing the key factor for growth. The increase in premium volume is attributable to increases in the Americas division of $357.6 million, or 43.0%, the EuroAsia division of $112.1 million, or 76.5%, London Market division of $149.4 million or 90.1% and the U.S. Insurance division of $111.8 million or 196.8%.
On February 12, 2004, our Board of Directors declared a quarterly cash dividend of $0.03125 per share to be paid on or before March 31, 2004 to all stockholders of record as of March 17, 2004. During each of the first three quarters of 2003, our Board of Directors declared a dividend of $0.025 per common share. Approximately $1.6 million in dividends was paid in each quarter. On November 18, 2003, our Board of Directors declared a cash dividend of $0.03125 per share. The total dividend of approximately $2.0 million was paid on December 31, 2003.
On September 10, 2002, OdysseyRe purchased 56.0% of the issued and outstanding shares of First Capital and subsequently contributed First Capital to Odyssey America. During the second quarter of 2003, Odyssey America increased its ownership in First Capital to 97.7%. The minority interest ownership of $0.3 million and $13.9 million as of December 31, 2003 and 2002, respectively, has been reflected in other liabilities. The cumulative purchase price of First Capital is $31.7 million of which $1.0 million has been reflected as goodwill. On January 1, 2004, Odyssey America contributed all of its shares of First Capital to Fairfax Asia (2003) Limited (“Fairfax Asia”) in exchange for Class B non-voting shares of Fairfax Asia representing a 45%, approximately $32.0 million, ownership interest in Fairfax Asia. Fairfax owns the controlling interest in Fairfax Asia.
The following table shows the components of the change in accumulated other comprehensive income (loss) for the years ending December 31, 2003 and 2002 (in thousands):
The accumulated benefit obligation for the excess benefit plans is $8,911 and $8,610, as of December 31, 2003 and 2002, respectively.
A summary of the combined status of the 2002 Plan and changes during the year ended December 31, 2003 and 2002 is presented below:
concerning the policy it issued to the insured; and (ii) alternatively, the Settlement is not covered under the terms of the Treaties. Among the remedies Odyssey America seeks is rescission of the Treaties.
OdysseyRe and its subsidiaries are involved from time to time in ordinary routine litigation and arbitration proceedings incidental to their business. In management’s opinion, the outcome of these suits, individually or collectively, is not likely to result in judgments which would be material to the financial condition or results of operations or cash flow of the Company.
(2) Includes a 1992 write-off of unamortized original issue discount and unamortized issuance costs on the Senior Notes that were redeemed and a 1992 accrual of a distribution payable pursuant to the Reorganization Plan based on the Company's consolidated net worth as of December 31, 1992. Includes a 1991 accrual of a distribution payable pursuant to the Reorganization Plan based on the Company's consolidated net worth as of December 31, 1991 and a write- off of original issue discount on Senior Notes that were to be redeemed. Includes a 1990 gain with respect to the Independence Health Plan of Southeastern Michigan, Inc. settlement and the discharge of pre-petition liabilities pursuant to the Reorganization Plan (see "Item 8. Financial Statements and Supplementary Data - Note 3 to the Company's Consolidated Financial Statements").
Statutory deposits include cash investments that are limited to specific purposes as required by federal regulations, regulations in states in which the Company operates or employer groups with which the Company contracts. The Company had $12.6 million and $11.4 million in such investments limited by federal or state regulations at December 31, 1993 and 1992, respectively, and $850,000 and $500,000 in such investments limited by employer groups at December 31, 1993 and 1992, respectively. These investments are stated at the lower of amortized cost, which approximates market, or market value. Market value is estimated using published or broker quoted prices.
The Company's consolidated net worth of $4.0 million at December 31, 1991, before the recognition of the Consolidated Net Worth Distribution, resulted in an approximate $2.0 million Consolidated Net Worth Distribution payable being recorded in the fourth quarter of 1991 ($1.2 million representing the redemption of Senior Notes and $781,000 representing the distribution to holders of certain allowed claims). Payment of the December 31, 1991 Consolidated Net Worth Distribution was made in March 1992. The $781,000 distribution to holders of certain allowed claims, along with the write-off of $124,000 in original issue discount on the Senior Notes to be redeemed, was recorded as an extraordinary item in December 1991.
The following table reconciles income (loss) before income taxes to pretax operating income (loss) for the four business segments and Corporate for the years ended December 31, 1998, 1997 and 1996:
The non-cancellable ID business contributed favorably to the segment's pretax operating earnings for 1998, largely driven by a lower benefit ratio, as compared with 1997, during which the non-cancellable ID block incurred higher levels of claims incidence. Partially offsetting these positive results was a decline in the operating results of the reinsured block of non-cancellable ID business reported in fees and other income. This decline was primarily due to unfavorable claims experience generally resulting from an increase in the average size of claims and a higher level of claims incidence in the reinsured block. See Item 8 Note 6 under the caption "Reinsurance" for a discussion of the reinsurance transaction.
o Short-term investments--are considered available for sale and are carried at cost which approximates fair value.
Liabilities for restructuring activities are recorded when management, prior to the balance sheet date, commits to execute an exit plan that will result in the incurral of costs that have no future economic benefit or approves
Effective January 1, 1998, UNUM implemented Statement of Position ("SOP") 98-1, "Accounting for Costs of Computer Software Developed or Obtained for Internal Use," which provided guidance on accounting for the costs of developing or obtaining computer software for internal use. The adoption of SOP 98-1 did not have a material effect on UNUM's results of operations or financial position.
The amortized cost and fair value of fixed maturities available for sale at December 31, 1998, by contractual maturity date, are shown below. Expected maturities will differ from contractual maturities since certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
At December 31, 1998, and 1997, impaired loans totaled $20.7 million and $43.4 million, respectively. Included in the $20.7 million were $9.0 million of loans which had a related allowance for probable losses of $2.4 million, and loans of $11.7 million which had no related allowance for probable losses. Included in the $43.4 million of impaired loans at December 31, 1997, were $20.8 million of loans which had a related allowance for probable losses of $3.5 million, and loans of $22.6 million which had no related allowance for probable losses.
Investment-type Insurance Contracts: Fair values for liabilities under investment-type insurance contracts with defined maturities are estimated using discounted cash flow calculations based on interest rates that would be
Currently, the Companies' ratings are A+ by A. M. Best Company, AA+ by Fitch IBCA, Duff & Phelps Credit Rating Company, and AA+ by Standard & Poor's Rating Services ("Standard & Poor's").
At December 31, 2000, the Companies investments had a yield of 6.7%. The Companies estimate the total investment portfolio, excluding policy loans, had a fair value approximately equal to 99.3% of amortized cost value at December 31, 2000.
At December 31, 2000, the Companies had $9.8 billion of separate account assets compared to $7.6 billion at December 31, 1999. The increase in separate account assets resulted from sales of the Companies' variable annuity products, net of redemptions and reinsurance, and from net policyholder transfers to the separate account options from the fixed account options within the variable products. The increase was partially offset by negative equity market returns.
Short-term investments with maturities of 30 days or less have been excluded from the above schedules. Amortized cost approximates fair value for these securities. At December 31, 2000, net unrealized investment loss on fixed maturities designated as available for sale totaled $6,173,000. Depreciation of $1,447,000 was included in stockholder's equity at December 31, 2000 (net of adjustments of $801,000 to VPIF, $3,146,000 to DPAC, and $779,000 to deferred income taxes). At December 31, 1999, net unrealized investment loss on fixed maturities designated as available for sale totaled $22,731,000. Depreciation of $6,955,000 was included in stockholder's equity at December 31, 1999 (net of adjustments of $1,785,000 to VPIF, $10,246,000 to DPAC, and $3,745,000 to deferred income taxes).
There were no gains or losses resulting from curtailments or settlements during 2000, 1999, or 1998.
The Company's assets at December 31, 2005 included $182.0 million in short-term and cash equivalent investments which are readily convertible to cash without market penalty and an additional $106.7 million of fixed income investments (at par) maturing in less than one year. The Company believes that these liquid investments, plus the expected cash flow from current operations, are more than sufficient to provide for projected claim payments and operating cost demands. In the event competitive conditions produce inadequate premium rates and the Company chooses to restrict volume, the liquidity of its investment portfolio would permit management to continue to pay claims as settlements are reached without requiring the disposal of investments at a loss, regardless of interest rates in effect at the time. In addition, the Company's reinsurance program is structured to avoid serious cash drains that might accompany catastrophic losses.
Reinsurance ceded credits were $.4 million (2%) higher in 2004, in line with higher reinsurance ceded premiums. While the dollars of reinsurance ceded credits were higher this year, the ratio of reinsurance ceded credits to gross acquisition costs declined because Protective is retaining a greater percentage of the gross premium for its own account under recent reinsurance treaties.
Activity with respect to other than temporary impairment of investments for the years ended December 31 is summarized as follows:
Our selected historical consolidated financial data as of and for each of the five years in the period ended December 31, 2009 follows. We derived the balance sheet data for the years ended December 31, 2009 and 2008 and the income statement data for the years ended December 31, 2009, 2008 and 2007 from our consolidated financial statements in this Annual Report on Form 10-K. We derived the balance sheet data for the years ended December 31, 2007, 2006 and 2005 and the income statement data for the years ended December 31, 2006 and 2005 from audited consolidated financial statements not in this Annual Report on Form 10-K. We have reclassified certain amounts for prior years to conform with our fiscal year 2009 presentation.
Guarantees that we make on certain variable annuity contracts, including GMAB and GMWB, meet the definition of an embedded derivative. These embedded derivatives are accounted for at fair value, using a risk neutral stochastic valuation methodology with changes in fair value recorded in earnings. The inputs to our fair value methodology include information derived from the asset derivatives market, including the volatility surface and the swap curve. Several additional inputs are not obtained from independent sources, but instead reflect our internally developed assumptions related to mortality rates, lapse rates and policyholder behavior.
For the year ended December 31, 2008, annuity funds on deposit decreased due to weak fund performance from a significant drop in the equity markets, partially offset by a reduction in the dollar amount of surrenders.
For the year ended December 31, 2008, universal life funds on deposit increased $132.1 million in 2008 compared to $219.8 million in the prior year period, primarily as a result of sales growth and higher interest credited, partially offset by higher benefits and surrenders, as well as fees and cost of insurance.
For debt securities inside the closed block with gross unrealized losses, 70.5% of the unrealized losses after offsets pertain to investment grade securities and 29.5% of the unrealized losses after offsets pertain to below investment grade securities at December 31, 2009.
We sponsor post-employment benefit plans through pension and savings plans for employees of Phoenix Life. Funding of these obligations is provided by Phoenix Life on a 100% cost reimbursement basis through administrative services agreements with the holding company. See Note 17 to our consolidated financial statements under “Item 8: Financial Statements and Supplementary Data” in this Annual Report on Form 10-K for additional information.
On January 13, 2010, A.M. Best Company, Inc. downgraded our financial strength rating from B++ to B+ and downgraded our senior debt rating from bb+ to bb-. They maintained their negative outlook on all ratings. On March 10, 2009, A.M. Best Company, Inc. downgraded our financial strength rating to B++ from A and downgraded our senior debt rating to bb+ from bbb.
Other assets decreased as a result of depreciation and amortization of premises and equipment as well as a decrease in investment receivables.
Amortization of AIF Contracts and Goodwill. The amortization of these two items, reduced pretax income by approximately $102.8 million for both 1998 and 1997.
Proceeds from sales of available-for-sale securities received by the Company were $1,808,735,000, $1,504,131,000 and $735,192,000 in 1999, 1998 and 1997, respectively. Gross gains of $142,027,000, $88,751,000 and $100,269,000 and gross losses of $44,999,000, $50,798,000 and $21,274,000 were realized on sales and writedowns during 1999, 1998 and 1997, respectively.
The funded status of the entire plan, which includes the Company and the P&C Group, as of December 1, 1999 and 1998 (the latest date for which information is available), was as follows:
Cash payments for interest were $1,693,000, $2,671,000 and $2,247,000 in 1999, 1998 and 1997, respectively, while cash payments for dividends to the holders of the Company's QUIPS were $42,070,000 in 1999, 1998 and 1997. Cash payments for income taxes were $426,017,000, $423,803,000 and $430,588,000 in 1999, 1998 and 1997, respectively.
The financial statements and related financial information required to be filed hereunder are set forth at the pages indicated at Item 14(a) of this Report.
Effective January 1, 1980, the Company issued a surplus note to Empire in the principal amount of $7.0 million. The surplus note provides, among other things, for interest to be accrued on the principal of the note based on a bank's prime rate at the end of the current calendar quarter. Neither the principal amount of the surplus note nor the accrued interest may be paid, in whole or in part, without the consent of the Superintendent and must be repaid, in whole or in part, when so ordered by the Superintendent. During 2001, with the approval of the Superintendent, the Company paid Empire $9.9 million of interest that had been accrued on the surplus note through September 30, 2001.
Liabilities for unpaid losses, which are not discounted (except for certain workers' compensation liabilities), and LAE are determined using case-basis evaluations, statistical analyses for losses incurred but not reported and estimates for salvage and subrogation recoverable and represent estimates of the ultimate claim costs of all unpaid losses and LAE. Liabilities include a provision for losses that have occurred but have not yet been reported. These estimates are subject to the effect of trends in future claim severity and frequency experience. The Company relies upon standard actuarial ultimate loss projection techniques to obtain estimates of liabilities for losses and LAE. These projections include the extrapolation of both losses paid and incurred by business line and accident year and implicitly consider the impact of inflation and claims settlement patterns upon ultimate claim costs based upon historical patterns. In addition, methods based upon average loss costs, reported claim counts and pure premiums are reviewed in order to obtain a range of estimates for setting the reserve levels. For further input, changes in operations in pertinent areas including underwriting standards, product mix, claims management and legal climate are periodically reviewed. Adjustments to such estimates are made from time to time due to changes in such trends as well as changes in actual loss experience. These adjustments are reflected in current earnings. The liability for losses and LAE are based on estimates and assumptions and the ultimate loss may differ.
As a result of the terrorist attacks on September 11, 2001 at the World Trade Center, the Company recorded estimated incurred losses and LAE of $0.8 million, primarily relating to business interruption coverage. Due to the recency and nature of this event, the loss estimate is likely to be revised.
The following discussion and analysis should be read in conjunction with the financial statements and related notes found on pages 27-59, as they contain important information that is helpful in evaluating the Company’s operating results and financial condition.
For every investment, a decline in fair value below cost is evaluated monthly for other-than-temporary impairment loss. Some factors considered in evaluating whether or not a decline in fair value is other-than-temporary include: 1) the extent and duration to which fair value is less than cost, 2) historical operating performance and financial condition of the issuer, 3) near term prospects of the issuer and its industry, 4) specific events that occurred affecting the issuer, including a ratings downgrade, and 5) the Company’s ability and intent to retain the investment for a period of time sufficient to allow for a recovery in value. An investment deemed impaired is written down to its estimated net realizable value. For all investments except limited partnerships, the impairment charge is included as a realized loss in the Statements of Operations. For limited partnerships, the impairment charge is included as a component of equity in earnings of limited partnerships in the Statements of Operations.
The Company’s estimated liability for guaranty fund and other assessments was $0.7 million at both December 31, 2004 and 2003. The estimated asset for credit against future premium taxes was $0.5 million at December 31, 2004 and 2003.
Fixed maturities and equity securities in a gross unrealized loss position at December 31, 2004 are as follows. Data is provided by length of time securities were in a gross unrealized loss position.
The Company has $40 million due to EIC in the form of two surplus notes. The notes may be repaid only out of unassigned surplus of EFL. The first note, in the amount of $15 million, bears an annual interest rate of 6.45%. Interest on the note is scheduled to be paid semi-annually. The note is payable on demand on or after December 31, 2005. Both principal and interest payments are subject to prior approval by the Pennsylvania Insurance Commissioner. Interest paid on this note totaled $1.0 million in 2004, 2003 and 2002.
The Company is involved in litigation arising in the ordinary course of business. In the opinion of management, the effects, if any, of such litigation are not expected to be material to the Company’s financial condition, cash flows or operations.
In January 2000, AdvancePCS acquired a 19% interest in Consumer Health Interactive, Inc. (CHI), an internet health portal development company, with an option to acquire the additional interest. Effective September 30, 2001 we acquired the remaining equity interests of CHI, which we did not previously own. The acquisition of the remaining interest was accounted for using the purchase method of accounting. The acquisition of the remaining 81% equity interest was completed with cash of $9.2 million, making CHI a wholly owned subsidiary. Under the terms of the acquisition we may pay additional cash upon the achievement by CHI of certain account growth targets. Prior to the complete acquisition of CHI, we had accounted for our 19% interest in CHI on the cost basis. In accordance with APB Opinion 18 all prior period financial statements have been restated to account for CHI as though we had accounted for our investment on the equity method.
In June 2001, the FASB issued SFAS 143, “Accounting for Asset Retirement Obligations”. SFAS 143 addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. It applies to all entities and legal obligations associated with the retirement of long-lived assets that result from the acquisition, constructions, development and/or the normal operation of a long-lived asset. SFAS 143 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and are subsequently allocated to expense over the asset’s useful life. This statement is effective for the financial statements issued for fiscal years beginning after June 15, 2002. We have not yet determined the impact that SFAS 143 will have on its financial position or results of operations.
In August 2001 the FASB issued SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets”. SFAS 144 addresses financial accounting and reporting for the impairment of long-lived assets and for long-lived assets to be disposed of. This statement supersedes SFAS 121, “Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of”; however, this statement retains the fundamental provisions of SFAS 121 for (a) recognition and measurement of the impairment of long-lived assets to be held and used and (b) measurement of long-lived assets to be disposed of by sale. This statement also supersedes the accounting and reporting provisions of APB Opinion 30, “Reporting the Results of Operations Reporting the Effects of Disposal of a Segment of a Business and Extraordinary, Unusual and Infrequently Occurring Events and Transactions” for segments of a business to be disposed of. SFAS 144 is effective for fiscal years beginning after December 15, 2001. We do not believe that the adoption of SFAS 144 will have a material effect on our financial position or results of operations.
Our evaluation of goodwill is completed annually in the third quarter using June 30 balances and when events may indicate impairment. As a result of current market conditions and our operating results, we updated our evaluation through December 31, 2007. We also evaluate the carrying values of title plants and other long-lived assets when events occur that may indicate impairment. The process of determining impairment relies on projections of future cash flows, operating results and market conditions. Uncertainties exist in these projections and are subject to changes relating to factors such as interest rates and overall real estate market conditions. Actual market conditions and operating results may vary materially from our projections.
A substantial majority of our consolidated cash and investments at December 31, 2007 was held by Guaranty and its subsidiaries. The use and investment of these funds, dividends to us, and cash transfers between Guaranty and its subsidiaries and us are subject to certain legal restrictions. See Notes 2 and 3 to our accompanying consolidated financial statements.
Our liquidity at December 31, 2007, excluding Guaranty and its subsidiaries, was comprised of cash and investments aggregating $22.6 million and short-term liabilities of $3.9 million. We know of no commitments or uncertainties that are likely to materially affect our ability to fund our cash needs. See Note 17 to our accompanying consolidated financial statements.
Description of the Account's real estate related investments is hereby incorporated herein by reference to pages 21 to 44 of the Registrant's prospectus included in Form S-1 (as amended), File number 33-13375 to be filed April 1, 1996, which pages are filed herewith as Exhibit 99.2 to this report.
In August 1989, IDS Life, on behalf of the Account, participated in the initial funding of a non-recourse participation first mortgage loan in the principal amount of $26,000,000. The Account's share of the initial funding was $2,666,660 or 10.26 percent of this loan. The remaining portion of the loan is funded by affiliates of the Investment Adviser (herein, the Account and said affiliates are collectively called the Lenders). The Loan is secured by a first mortgage on a shopping center known as Riverpoint Center in Chicago, Illinois. The shopping center is owned by a partnership (the Borrower) whose general partners are not affiliated with any of the Lenders. In connection with the loan, the Account paid to the Investment Adviser a mortgage placement fee amounting to approximately $108,000, less $37,500 in loan origination fees paid to the Investment Adviser by the Borrower, for a net fee paid of approximately $70,500 paid by the Account.
NS Associates has entered into a management agreement with Urban Retail Properties Company, (the "Retail Manager"). The Retail Manager is entitled to receive a fee of 3.75% of gross receipts from the operations of the Malls. Management fees earned by the Retail Manager are included in property operating expenses and aggregated approximately $1,174,000 and $1,266,000 for the periods ended December 31, 1995 and 1994, respectively.
James A. Mitchell, 54: Chairman of the Board since March 1994; Chief Executive Officer since November 1986; President from July 1984 to March 1994; Executive Vice President, AEFC, since March 1994; Director, AEFC, since July 1984; Senior Vice President, AEFC, from July 1984 to March 1994.
Glenn E. Emig, age 48, Executive Vice President and Chief Operating Officer of JMB, is an officer of various JMB affiliates and a partner of various Associate Partnerships. Mr. Emig has been associated with JMB since December 1979. He holds a master's degree in business administration from the Harvard University Graduate School of Business.Item 11. EXECUTIVE COMPENSATION
Atlantic States, our largest subsidiary, participates in a proportional reinsurance agreement, or pooling agreement, with Donegal Mutual. Under the pooling agreement, Donegal Mutual and Atlantic States contribute substantially all of their respective premiums, losses and loss expenses to the underwriting pool, and the underwriting pool, acting through Donegal Mutual, then allocates
evaluation of the type of risk involved, knowledge of the circumstances surrounding each claim and the insurance policy provisions relating to the type of loss the policyholder incurred. Our insurance subsidiaries determine the amount of their liability for unreported claims and loss expenses on the basis of historical information by line of insurance. Our insurance subsidiaries account for inflation in the reserving function through analysis of costs and trends and reviews of historical reserving results. Our insurance subsidiaries monitor their liabilities closely and recompute them periodically using new information on reported claims and a variety of statistical techniques. Our insurance subsidiaries do not discount their liabilities for losses and loss expenses.
life of the related securities as an adjustment of yield in a manner consistent with the accretion of discount on the same fixed maturities. During 2020, we recorded amortization of $1.4 million in other comprehensive income. At December 31, 2020 and 2019, net unrealized losses of $6.1 million and $7.5 million, respectively, remained within accumulated other comprehensive income.
The amortized cost of fixed maturities on deposit with various regulatory authorities at December 31, 2020 and 2019 amounted to $9,114,791 and $8,330,651, respectively.
pandemic. The table below presents the amount of FHLB of Pittsburgh stock Atlantic States purchased, collateral pledged and assets related to Atlantic States’ membership in the FHLB of Pittsburgh at December 31, 2020.
Our effective tax rate is different from the amount computed at the statutory federal rate of 21%.
The weighted-average grant date fair value of options we granted during 2020 was $1.15. We calculated this fair value based upon a risk-free interest rate of 0.20%, an expected life of three years, an expected volatility of 20% and an expected dividend yield of 4%.
Business areas of the Tryg Vesta Group 6 Tryg including Dansk Kaution and Tryg Rejse og Sundhed 6 Vesta 7 Tryg-Baltica international 7 Other activities 7
Exposure 19 Outlook 22 Management’s signatures 25 Auditors’ report 26 Accounting policies 28 Financial statements of the parent company and the Tryg Vesta Group 34 Supervisory Board and Executive Management 46 Heads of business organisation 48 Group overview 49
The capital base of Tryg Forsikring A/S is DKK 600m and NOK 100m in Vesta Forsikring AS.
Claims ratio, net of reinsurance 85.2 77.0 Expense ratio, net of reinsurance 21.0 23.9 Combined ratio 106.2 100.9 *Unaudited pro forma figures
In addition, the profitability of the portfolio at product, segment and customer level is monitored on an ongoing basis.
Operational risk Operational risk is the risk of loss due to the failure of internal routines, procedures and IT systems or due to other internal or external causes, such as negative press coverage.
The targets are reflected in the Tryg Vesta Group’s application of the balanced scorecard and are operationalised through this management tool.
Earned premiums Gross premiums written 0 7,230 Outward reinsurance premiums 0 -1,771 Change in gross unearned premiums provisions 0 2,001 Change in unearned premiums provisions, reinsurers' share 0 -357 1 Earned premiums, net of reinsurance 0 7,103 2 Technical interest, net of reinsurance 0 449
Income from land and buildings 0 111 7 Interest, dividends etc. 4 541 8 Realised investment gains 0 60
During 1996, direct premiums written by CCS increased while assumed premiums decreased as a result of the marketing activities of the Company. CCS's direction is to penetrate the direct market while decreasing the volume of reinsurance premiums assumed through Pooling Agreements. The following table reflects the written premium activity for 1996 and 1995.
Direct . . . . . $ 881,683 $ 2,025,796 $ 130% Assumed . . . . 3,899,884 2,890,050 (26%) -------------- -------------- --------------
Net income for 2006 grew over 2005 as a result of strong growth in earned premiums that exceeded growth of operating expenses and net losses and loss adjustment expenses. Growth of our insurance in force and strong persistency coupled with an increase in basis points on Primary business generated the growth in earned premiums. Basis points on Primary business increased due to higher premiums charged on new insurance with risk-adjusted rates such as Alt-A loans and adjustable rate mortgages (“ARMs”), including potential negative amortization loans. Production of these products increased throughout 2006 as discussed further in the “Production and In Force” and “Revenues” sections below.
Another significant trend in our Primary production over the past three years was the increase in ARMs, especially those loans subject to potential negative amortization. The following table summarizes the loan type characteristics of our Primary new insurance written over the past three years and reflects the growth in ARMs, especially the loans subject to potential negative amortization in 2006:
Similar to the trend in new insurance written discussed above, Alt-A continues to grow as a percentage of our insurance in force. The following table shows the percentage of our insurance in force that we have classified as Alt-A at December 31, 2006, 2005 and 2004:
Total assets increased 17% to $896 million at December 31, 2006 over the same date in 2005, primarily the result of positive cash flows from operations. Total liabilities increased to $325 million at December 31, 2006, from $268 million at December 31, 2005, primarily driven by an increase in reserves for losses and loss adjustment expenses coupled with an increase in deferred tax liabilities. This section identifies several items on our balance sheet that are important in the overall understanding of our financial position. These items include deferred policy acquisition costs, prepaid federal income tax and related deferred income taxes. The majority of our assets are contained in our investment portfolio. A separate “Investment Portfolio” section follows this “Financial Position” section and reviews our investment portfolio, key portfolio management strategies, and methodologies by which we manage credit risk.
Realized losses include both write-downs of securities with other-than-temporary impairments and losses from the sales of securities. We wrote down securities by a total of approximately $375,000, $170,000 and $480,000 during 2006, 2005, and 2004, respectively, due to other-than-temporary declines in fair value.
the amount of insurance written and the growth in insurance in force or risk in force as well as our performance may be adversely impacted by the competitive environment in the private mortgage insurance industry, including the type, structure, mix and pricing of our products and services and our competitors;
The Company financed the entire purchase price through its revolving line of credit which was subsequently converted to a term note (See Note 7). Under the terms of the bank credit agreement, the borrowings are secured by a pledge of all assets of the Trigon Administrators business.
Possible Dreams' agreement at December 31, 2001 is a $10,000 line of credit, under which borrowing capacity is limited to a defined borrowing base, of which $6,000 and $2,700 was borrowed at December 31, 2001 and 2000, respectively, at the commercial paper rate of interest plus 4% (5.99% and 10.5% at December 31, 2001 and 2000, respectively). Additional unutilized borrowing capacity of $0 and $1,644 was available at December 31, 2001 and 2000, respectively. The agreement was scheduled to expire in 2003 but was refinanced in January 2002 as discussed in Note 22.
directorship (November 15, 2001). The remaining 8,000 options held by this former director were not vested and were cancelled on August 17, 2001 pursuant to the provisions of his stock option grant certificate as issued under the 2000 Long-Term Incentive Plan.
The purchase agreement for the Company's 1997 acquisition of Pumpkin provides for additional payments which were contingent upon future Pumpkin's EBITDA. At a minimum, the Company will be required to make additional payments totaling $120 annually with that annual additional payment increasing to $1,600 in any year in which Pumpkin's EBITDA is greater than $2,400. During 2001, 2000 and 1999, Pumpkin's EBITDA exceeded $2,400, and accordingly, during the years ended December 31, 2001, 2000 and 1999, the Pumpkin recorded an additional obligation of $40 annually. Additionally since Pumpkin's four year average EBITDA exceeded the specified threshold, the seller is entitled to an additional $1,812 earnout amount payable in 2004. This amount is shown on the balance sheet in long-term debt and has been recorded as an addition to goodwill.
On February 28, 2002, WC Holdings fully prepaid its $6,000 subordinated debt with Bank One Mezzanine which carried a 20% per annum interest rate and was due to be repaid in a balloon payment in December 2005. In addition to the principal amount, WC Holdings also was required to pay $431 in prepayment penalties. Cash flow from operations was sufficient to prepay this note and penalties without utilizing the Bank One revolving line of credit. WC Holdings' senior term debt with Bank One was amended to allow prepayment of the subordinated debt prior to repayment of the senior term debt and to concurrently increase the revolving facility from $4,500 to $5,000 effective February 28, 2002.
The increase in 1995 as compared to 1994 in selling, general and other expenses principally reflected the losses recorded by the manufacturing segment as described above, operating expenses of real estate properties acquired during 1994, expenses relating to certain investing activities, including expenses related to exploring opportunities in Russia, and increased provisions for bad debts at the banking and lending segment. In 1995 and 1994, statistical studies and estimates of service costs indicated that the recorded liability for unredeemed trading stamps was in excess of the amount that ultimately would be required to redeem trading stamps outstanding. As a result, selling, general and other expenses applicable to the trading stamp operations included credits of $9,400,000 and $11,700,000 for the years ended December 31, 1995 and 1994, respectively, reflecting adjustments made to the liability for unredeemed trading stamps. The Company's most recent analysis of the liability for unredeemed trading stamps had not identified any remaining excess as of December 31, 1996.