Determining whether a decline in the current fair value of invested assets is an other than temporary decline in value can involve a variety of assumptions and estimates, particularly for investments that are not actively traded on established markets. For example, assessing the value of some investments requires the Company to perform an analysis of expected future cash flows or rates of prepayments. Other investments, such as collateralized mortgage or bond obligations, represent selected tranches of a structured transaction, supported overall by underlying investments in a wide variety of issuers. The Company’s specific accounting policies related to its invested assets are discussed in the notes to the financial statements.
Operating Income (Loss) and Income (Loss) Before Income Tax Year Ended December 31 ---------------------------------------------------- 2002 2001 ---- ---- Operating Income (Loss)(1) Life Insurance Life Marketing................................ $ 142,070 Acquisitions.................................. 11,732,882 $11,538,404 Specialty Insurance Products Asset Protection.............................. 1,593,905 976,656 Retirement Savings and Investment Products Annuities..................................... (536,584) (646,706) Corporate and Other................................ 1,010,857 1,531,512 ------------ ----------- Total operating income............................. 13,943,130 13,399,866 ============ =========== Realized Investment Gains (Losses) Annuities..................................... 79,719 Unallocated Realized Investment Gains (Losses)..... (775,928) (1,113,538) ------------ ----------- Total.............................................. (696,209) (1,113,538) ------------ ----------- Income (Loss) Before Income Tax Life Insurance Life Marketing................................ 142,070 Acquisitions.................................. 11,732,882 11,538,404 Specialty Insurance Products Asset Protection.............................. 1,593,905 976,656 Retirement Savings and Investment Products Annuities..................................... (456,865) (646,706) Corporate and Other................................ 1,010,857 1,531,512 Unallocated Realized Investment Gains (Losses)..... (775,928) (1,113,538) ------------ ------------- Total income from continuing operations before income tax....................................... $13,246,921 $12,286,328 ============ =============
CASH FLOWS FROM FINANCING ACTIVITIES Dividends to share owners................................................... (14,750,000) (12,900,000) (12,750,000) Capital contribution........................................................ 70,000,000 0 0 Investment product deposits and change in universal life deposits........... 69,229,610 56,941,071 47,248,477 Investment product withdrawals.............................................. (49,012,219) (34,810,896) (23,654,329) ------------ ------------- ------------ Net cash provided by financing activities................................... 75,467,391 9,230,175 10,844,148 ------------ ------------- ------------
In June 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities.” SFAS No. 146 requires companies to record a liability for a cost associated with an exit or disposal activity when the liability is incurred. The statement is effective for exit or disposal activities initiated after December 31, 2002. The Company does not expect the adoption of SFAS No. 146 to have a material effect on the Company’s financial position or results of operations.
The change in unrealized gains (losses), net of income tax on fixed maturities for the years ended December 31 is summarized as follows:
Investments and other assets...... $471,065,653 $10,390,438 $46,091,122 $34,248,362 $3,956,062 $565,751,637 Deferred policy acquisition costs. 114,902,459 1,611,339 2,483,640 118,997,438 ------------ ------------ ------------ ----------- ----------- ------------ Total assets...................... $585,968,112 $12,001,777 $48,574,762 $34,248,362 $3,956,062 $684,749,075 ============ ============ ============ =========== =========== ============