felanders/preprocessed huggingface dataset:
Onshore Energy. During 2002, Navigators Insurance participated in the onshore energy business written by Syndicate 1221. The business principally focuses on the oil and gas, chemical and petrochemical industries with coverages primarily for property damage and business interruption.
Lloyd's Syndicate 1221 had stamp capacity of £75.0 million ($112.7 million) in 2002, £66.3 million ($95.5 million) in 2001 and £66.3 million ($96.0 million) in 2000. Syndicate 1221's capacity is expressed net of commission (as is standard at Lloyd's) of approximately 21%. Syndicate 1221 entered into a qualifying quota share agreement with a major reinsurer which increased the gross premium that could be written by Syndicate 1221 for the 2002 underwriting year from its stamp capacity of £75.0 million to a total of £86.6 million ($130.2 million). A qualifying quota share is a reinsurance contract which provides additional capacity to Lloyd's syndicates in order that they may write premiums up to 30% in excess of their stamp capacity. Only high quality reinsurers approved by Lloyd's can enter into a qualifying quota share transaction with a Lloyd's syndicate. The Company participates for 68.1%, 67.4% and 64.5% of Syndicate 1221's capacity for the 2002, 2001 and 2000 underwriting years, respectively. The Lloyd's marine business had been subject to pricing competition for several years through 2000. The pricing competition showed some signs of easing in 2000 and prices increased in 2001 and 2002. Lloyd's presents its results on an underwriting year basis, generally closing each underwriting year after three years. The Company makes estimates for each year and timely accrues the expected results. The Lloyd's Operations included in the consolidated financial statements represent the Company's participation in Syndicate 1221.
Net Losses and Loss Adjustment Expenses Incurred. The ratio of net loss and loss adjustment expenses incurred to net earned premium was 63.4%, 70.7% and 64.8% in 2002, 2001 and 2000, respectively. The decrease in the loss ratio from 2002 to 2001 was primarily due to the losses resulting from approximately $4.1 million of net losses related to the September 11, 2001 terrorist attack on the World Trade Center accounting for 2.7 points of the 2001 loss ratio and from approximately $1.9 million of net losses resulting from one large offshore energy claim (Petrobras) in the first quarter of 2001 accounting for 1.3 points of the 2001 loss ratio. Gross losses resulting from the terrorist attack were $17.6 million with the ceded portion of the losses reinsured by highly rated reinsurers. In October 2001, $8.1 million of the losses were paid and fully recovered from the reinsurers. The increase in the 2001 loss ratio compared to 2000 was primarily due to the 2001 losses described above. The Company does not discount any of its loss reserves.
In March 1995, SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," was issued. The statement requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. The statement also addresses the accounting for long-lived assets that are expected to be disposed of. The Company will adopt SFAS No. 121 on October 1, 1996 and, based on current accounting policies, does not believe the effect of the adoption will be material.
o) USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS. The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Principal areas requiring the use of estimates include: determination of allowances for doubtful accounts receivable, medical claims payable, professional and general liability, reserves relating to the Office of Personnel Management ("OPM") contract and certain other reserves (See Note 11 - "Impairment, Disposition, Restructuring and OPM Charges").
As of September 30, 1996, the contractual maturities of the Company's marketable securities were as follows:
In October 1996, the Company established a new credit facility with Bank of America National Trust and Savings Association, as agent (See Note 13 - "Proposed FHP Merger"), in the aggregate amount of $1.5 billion. Subsequent to establishing this new credit facility, the B of A Credit Line was terminated.
Deferred tax liabilities: Prepaid expenses (1,451) (1,445) Unrealized gains on marketable securities (738) (3,042) Capital leases (726) - Other liabilities (502) (903) - -------------------------------------------------------------------------------- Net deferred tax assets $ 56,295 $ 28,207 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
a) LEASE COMMITMENTS. The Company leases office space and equipment under various non-cancelable operating leases. Rental expense for the fiscal years ended September 30, 1996, 1995 and 1994 totaled $29.1 million, $18.3 million and $10.2 million, respectively. Future minimum lease payments under operating leases at September 30, 1996 are as follows:
Net Premiums Written. Net premiums written for 1999, 1998 and 1997 were $333.6 million, $374.8 million, and $277.7 million, respectively. The decrease in 1999 compared to 1998 is primarily related to a non-recurring additional premium in 1998 of $34.6 million associated with the Company's termination of an Aggregate Excess of Loss Reinsurance Agreement ("Stop Loss Agreement"). The remaining decrease of $6.6 million in 1999 is related to the same issues affecting gross premiums written.
As a holding company, Highlands Group's principal requirements for funds are to pay operating expenses, franchise and other taxes, debt service and dividends. Operating expenses and franchise and other taxes imposed on the Company are not expected to be material. The annual cash interest requirements relating to the Company's outstanding 10% convertible subordinated debentures (the "Debentures") and the loan under the Credit Agreement are approximately $10.0 million. The Company and its lenders have amended the Credit Agreement to amend certain financial covenants and to provide for the payment of $10.0 million in principal during 2000. The Company is in compliance with the amended covenants in the Credit Agreement. Highlands Group does not currently intend to pay dividends on its Common Stock.
The growth in the commercial multi-peril net premiums earned was due to increased writings in the Health Care Division, primarily due to an increase in business written for day care and other healthcare related facilities and institutions.
Net investment income before realized capital gains and losses increased 50.8% due principally to increases in invested assets resulting from proceeds of the Common Stock offering in August 1997, the Convertible Trust Originated Preferred Securities ("Convertible TOPrS") offering in October 1996, cash flow from operations and the contribution to net investment income from the acquisitions made in 1997, partially offset by the interest charge on funds held by the Company for the benefit of the reinsurer of the Company's aggregate excess of loss reinsurance contract.
The foregoing changes resulted in net income before taxes of $45.8 million for the year ended 1997, a 19.1% decrease from the comparable 1996 period.
Over the past decade, the Company has been engaged in litigation with the State of New York as to whether physician medical school faculty members at the State University of New York ("SUNY") engaged in the clinical practice of medicine at a SUNY medical school facility, corollary to such physicians' faculty activities, were within the scope of their employment by SUNY, and thereby protected against malpractice claims arising out of such activity by the State, or by the Company under its medical malpractice policies insuring the SUNY physicians. As a result of favorable judicial decisions, the Company recorded subrogation recoverables for claims previously paid and reserves established with respect to such malpractice claims of approximately $19 million on December 31, 1995 and $13 million on June 30, 1996. The Company and the State reached an agreement with respect to 83 cases pursuant to which the State paid $15 million to the Company in September 1998 and the Company agreed to forego $5.1 in interest. As a result, the amount of subrogation recoverables recorded at December 31, 1998 amounted to approximately $12 million.
The balance sheet data presented as of December 31, 1996 	was derived from unaudited financial information not included 	elsewhere herein.
The following discussion addresses the financial condition and results of operations of the Company for the periods indicated. The discussion and analysis of the Company’s financial condition and results presented below should be read in conjunction with the “Selected Financial Information” and the Financial Statements and related footnotes and other financial information included elsewhere herein.
The Company’s profitability depends in large part upon (i) the amount of its assets, (ii) the adequacy of its product pricing (which is primarily a function of competitive conditions, management’s ability to assess and manage trends in mortality and morbidity experience as compared to the level of benefit payments, and its ability to maintain expenses within pricing assumptions), (iii) the maintenance of the Company’s target spreads between credited rates on
Net realized losses on investments were $5.1 million for 2000, a increase of $4.8 million, from a net realized loss of $0.3 million reported in the comparable prior year period. The following table sets forth the components of net realized loss by investment category for 2000 compared to 1999.
Benefits to policyholders were $68.1 million for 2000, an increase of $24.5 million, or 56.2%, from $43.6 million reported in the comparable prior year period. The increase is primarily a result of (i) higher assumed benefits from USFL of $12.4 million, (ii) an increase in traditional death benefits of $8.9 million, and (iii) higher death benefits related to COLI business of $3.7 million in 2000.
Other operating costs and expenses were $88.6 million for 2000, an increase of $14.8 million, or 20.1%, from $73.8 million reported in the comparable prior year period. The increase is due to higher general expenses, commissions and expenses related to assumed business from USFL.
Other income was $7.6 million for 1999 and 1998, which consists mostly of fees for supplementary contracts.
At December 31, 2000, aggregate maturities of long-term debt based on required remaining principal payments for 2001 and the succeeding four years are $2.3 million, $2.4 million, $2.6 million, $2.8 million and $3.0 million, respectively, and $33.8 million thereafter.
Real estate to be disposed of was $2.3 million and $1.6 million 	for 2000 and 1999, respectively. Real estate held for investment 	was $3.1 million and $5.3 million for 2000 and 1999, 	respectively.
Commercial Mortgage Loan Distribution by Geographic Area and by Property Type
. the disposition of ten acute care hospitals and two surgery centers during 1999;
On December 14, 2000, Triad sold its hospital in Sherman, Texas, which was designated as held for sale, for $16.0 million. A gain on the sale of $2.0 million was recognized during the year ended December 31, 2000. For the years ended December 31, 2000 and 1999, this facility had net revenue of $27.6 million and $28.7 million, respectively, and income (losses) before impairment charges and income taxes of $1.4 million and $(1.6) million, respectively.
In 1999 total revenues increased $12.6 million to $16.1 million when compared to the year ended December 31, 1998. The growth in revenues in 1999 was comprised of increased premium and fee income of $9.8 million, increased net investment income of $2.9 million and decreased realized gain on investments of $0.1 million. In 1998 total revenues increased $3.2 million to $3.5 million when compared to the year ended December 31, 1997. The growth in revenues in 1998 was comprised of increased net investment income of $3.1 million and increased realized gains on investments of $0.1 million.
Premium and fee income increased $133 thousand in 1999 compared to an increase of $57 thousand in 1998. The increase in 1999 was driven by higher fee income related to growth in the separate accounts.
First Great-West Life & Annuity Insurance Company (A wholly-owned subsidiary of Great-West Life & Annuity Insurance Company) -------------------------------------------
Due to/from Parent Corporation - Due to/from Parent Corporation includes amounts due on demand.
The Pueblo facility consists of approximately 311,000 square feet of office space. The facility is subject to a mortgage in the aggregate principal amount of approximately $280,000 as of December 31, 1998. The Pueblo facility includes three properties which the Company renovated in 1998. The Company has received public funds for certain of such properties' renovation from the City and County of Pueblo in return for certain employment commitments. In addition, the Company leases approximately 34,000 square feet of office space in Pueblo pursuant to three leases, the earliest of which expires in August 1999, at an aggregate rent of approximately $330,000 per year. As set forth elsewhere in this Annual Report on Form 10-K the Company has decided to close its regional services center in Pueblo in the first half of 1999.
Vanguard continues to own the previous home office of the Corporation, a two-story building located in Jackson, Mississippi. Under the terms of the sale of Dixie Life, Standard is obligated to pay $15,000 per month to Vanguard on an existing lease expiring December 31, 1996 or until sale of the building. The Corporation is currently seeking to sell the building.
The sale resulted in a loss of $4,174,535 ($.394 per share). The sale of Dixie Life constitutes discontinuance of the life insurance business by the Corporation. The loss on the sale is reported in a manner substantially the same as discontinued operations. The Corporation continues to report insurance operations in the same manner as prior to the measurement date of March 6, 1995. Accounting Principles Board Opinion No. 30 (APB 30) calls for reporting the operations of discontinued operations as a single net amount in the statement of operations, but in Management's opinion, reducing virtually all of the Corporation's operations to a single amount in the statement of operations would not be meaningful to readers of the Corporation's financial statements. The Corporation has entered into another line of business. Beginning January 1, 1996, the Corporation will report its insurance operations as discontinued operations in accordance with APB 30.
The financial statements and supplementary data called for by this Item are set forth immediately following the Index to Financial Statements and Financial Statement Schedules at page 19.
Under the Dodd-Frank Act, the Consumer Financial Protection Bureau ("CFPB") is authorized to issue regulations governing a loan originator's determination that, at the time a loan is originated, the consumer has a reasonable ability to repay the loan. The Dodd-Frank Act provides a statutory presumption that a borrower will have the ability to repay a loan if the loan has characteristics satisfying the QM definition. On January 10, 2014, the CFPB implemented a final rule regarding QMs, which we refer to as the "QM Rule." Under the QM Rule, a loan is deemed to be a QM if it has certain loan features, satisfies extensive documentation requirements and meets limitations on fees and points and APRs. The QM Rule provides a "safe harbor" for QM loans with annual percentage rates, or APRs, below the threshold of 150 basis points over the Average Prime Offer Rate, or APOR, and a "rebuttable presumption" for QM loans with an APR above that threshold.
We compete with the single-family mortgage insurance programs of the FHA, which is part of the Department of Housing and Urban Development. The most recent FHA report to Congress dated November 15, 2016 on the financial status of the FHA's Mutual Mortgage Insurance Fund, or MMIF, showed the capital reserve ratio of the MMIF at 2.32%, above the Congressionally mandated required minimum level of 2%. As a result of the financial improvements in the condition of the MMIF over the past few years and the stated desire to support the housing recovery, the FHA reduced its mortgage insurance premiums by 50 basis points in January 2015. See "Risk Factors-Risks Relating to Our Business-The amount of insurance we may be able to write could be adversely affected if lenders and investors select alternatives to private mortgage insurance."
Compensation and benefits increased primarily due to increases in incentive compensation, stock compensation and the size of our workforce, which increased to 376 at December 31, 2016 from 332 at January 1, 2015, as additional employees were hired to support the growth in our business, including in our sales organization. Compensation and benefits includes salaries, wages and bonus, stock compensation expense, benefits and payroll taxes.
The following table includes municipal securities for states that represent more than 10% of the total municipal bond position as of December 31, 2016:
Essent Re's statutory capital and surplus was $390.9 million and $213.0 million as of December 31, 2016 and 2015, respectively, and statutory net income was $53.8 million and $26.7 million, respectively.
(2) Net income includes $29 million and $49 million of reported investment portfolio gains in 1996 and 1995, respectively.
New term life insurance sales were $52.0 billion in face amount for 1996, compared to $53.0 billion in 1995. The number of policies issued was 247,600 in 1996, compared to 266,600 in 1995, consistent with the industry-wide downturn in new life insurance sales for these periods. Life insurance in force at year-end 1996 reached $359.9 billion, up from $348.2 billion at year-end 1995, and continued to reflect good policy persistency.
Accrual of income, included in other assets, is suspended on fixed maturities or mortgage loans that are in default, or on which it is likely that future payments will not be made as scheduled. Interest income on investments in default is recognized only as payment is received.
In December 1994, the Company and its affiliates sold their group dental insurance business to MetLife for $52 million and recognized a gain of $9 million net of taxes. On January 3, 1995, the Company and its affiliates completed the sale of their group life and related non-medical group insurance businesses to MetLife for $350 million and recognized in the first quarter of 1995 a gain of $20 million net of taxes. In connection with the sale, the Company ceded 100% of its risks in the group life and related businesses to MetLife on an indemnity reinsurance basis, effective January 1, 1995. In connection with the reinsurance transaction, the Company transferred assets with a fair market value of approximately $1.5 billion to MetLife, equal to the statutory reserves and other liabilities transferred.
The Company writes workers' compensation business through its Accident Department. This business is ceded 100% to an affiliate, Travelers Property Casualty Corp. (TAP).
Most leasing functions for TIGI and its subsidiaries are administered by TAP. In 1996, TAP assumed the obligations for several leases. Rent expense related to all leases are shared by the companies on a cost allocation method based generally on estimated usage by department. Rent expense was $24 million, $22 million and $23 million in 1996, 1995 and 1994, respectively.
The Company is reimbursed by affiliates of TIGI for utilization of space and equipment. Future sublease rental income of approximately $92 million will partially offset these commitments. Minimum future capital lease payments are not significant.
The Company participates in a short-term investment pool maintained by an affiliate. See Note 11.
PREMIUMS WRITTEN. Premiums written decreased by $7,028,000, or 8%, due to the following. Commercial casualty lines experienced reductions of $489,000 and $11,517,000 in its explosives and haulers lines, respectively, due to competitive market conditions, along with new more restrictive underwriting criteria in the haulers line. The propane line increased by $1,344,000 due to increased marketing emphasis and strategic planning. Specialty lines increased by $2,330,000 due to management direction and planned growth of the Atlanta surety lines. Personal lines increased by $1,304,000 through planned growth in North Carolina and expansion into other strategically targeted states during the year.
The decrease in net claims and claims adjusting expenses may also be analyzed by line. Commercial casualty increased by $12,362,000 as follows: (i) an increase in earned premium of $2,638,000; (ii) a deficiency in reserves for prior years of $4,193,000 for 1996 versus a deficiency of $2,339,000 for 1995; and (iii) an increase in the current year loss ratio of $7,870,000. The timing and reporting of large commercial casualty losses impacts reserves when the IBNR reserve for these types of losses is found to be deficient. If there is an increase in the ultimate loss projection for the Accident Year and the Financial Year, the incurred loss ratios would also increase.
CLAIMS ADJUSTING OPERATIONS. Adjusting fees increased by $1,066,000, or 11%, due to increased storm activity. Service fees and commissions increased $682,000, or 13% due to increased business activity. General and administrative expenses decreased by $134,000 due to decreases in headcount during the year.
At December 31, 1997, the Company had cash and investments of $119,383,000, of which $15,779,000 was collateralized or pledged to secure the insurers that have ceded reinsurance to the Company, and to maintain security deposits in the U.S. with various state insurance departments.
The remediation phase of non-IT systems is nearly complete. Testing of remediated non-IT systems is approximately 65% complete. Once testing is complete, the non-IT systems are expected to be ready for immediate use. The Company expects to complete its remediation efforts, testing and implementation of affected non-IT systems by April 30, 1999.
The Company and certain of its subsidiaries participate in defined contribution plans whereby the employer contributes a percentage of participants' qualifying compensation up to certain limits, as defined by the plans. The Company and certain of its subsidiaries also participates with BCBSUW in various other profit sharing and bonus programs. Expenses related to all of these plans, after giving effect to all administrative expense allocations between the Company and BCBSUW, totaled $2,475,000, $2,042,000 and $2,932,000 in 1998, 1997 and 1996, respectively.
(1) Earnings per share data has not been provided for periods prior to the fourth quarter of 1998 since the Company was not an independent, public entity prior to the Spin off date.
The Company is a pharmaceutical healthcare organization delivering innovative pharmacy benefit management, specialty pharmaceutical management and distribution, and other pharmacy-related healthcare solutions. The Company combines its clinical management expertise, sophisticated data management and therapeutic fulfillment capabilities to serve the particular needs of each of its customers and respective pharmacy benefit recipients covered by a customer's pharmacy-related health benefits. These services are organized under two reportable operating segments: PBM Services and Specialty Management and Distribution Services.
Fee-For-Service. Approximately 91% of revenues are generated from fee-for-service contracts. Under these contracts, revenues from orders dispensed by the retail pharmacy networks are recognized when the pharmacy services are reported to the Company by the dispensing pharmacist through the POS claims processing systems and the drug is dispensed.
In December 2002, the FASB issued Statement of Financial Accounting Standards No. 148, "Accounting for Stock-Based Compensation - Transition and Disclosure, and amendment of FASB Statement No. 123 (SFAS No. 148)." This
LIABILITIES Accounts payable and accrued expenses $ 6,990 Stockholders equity 5,641 --------- Total liabilities and equity $ 12,631 =========
For the year ended December 31 ---------------------------------------- 2002 2001 ------------------- ------------------- (unaudited) (unaudited)
As of December 31, 2002 and 2001, the exercisable portion of outstanding options was 1,096,071 shares and 874,699 shares, respectively. Stock option activity under the Plans through December 31, 2002 is as follows:
Under the Plans, performance units may be granted by the Company's Board of Directors to key employees. The terms and conditions of the performance units including the performance goals, the performance period and the value for each performance unit are established by the Company's Board of Directors. If the performance goals are satisfied, the Company shall pay the key employee an amount in cash equal to the value of each performance unit at the time of payment. In no event shall a key employee receive an amount in excess of $1,000,000 in respect of performance units for any given year. During 2002, 2001 and 2000, performance goals were not satisfied, thus there were no amounts paid to employees related to performance. As of December 31, 2002, there were no performance units outstanding as no amendments to the Plan were made and no targets for any year were met.
We compete in the U.S. and international reinsurance and insurance markets with numerous global competitors. Our competitors include independent reinsurance and insurance companies, subsidiaries or affiliates of established worldwide insurance companies, reinsurance departments of certain insurance companies, domestic and international underwriting operations, including underwriting syndicates at Lloyd’s of London and certain government sponsored risk transfer vehicles. Some of these competitors have greater financial resources than we do and have established long term and continuing business relationships, which can be a significant competitive advantage. In addition, the lack of strong barriers to entry into the reinsurance business and recently, the securitization of reinsurance and insurance risks through capital markets provide additional sources of potential reinsurance and insurance capacity and competition.
Commission and brokerage decreased to ($51.3) million in 2017 compared to ($19.6) million in 2016. The decrease was mainly due to the impact of changes in the mix of business and the impacts from affiliated quota share agreements. Segment other underwriting expenses increased to $162.7 million in 2017 compared to $156.6 million in 2016. The increase was primarily due to the impact of the increased expenses related to the continued build out of the insurance business.
The following table provides a summary of fixed maturity securities in an unrealized loss position as of December 31, 2013:
At December 31, 2013, investments in foreign government fixed maturity securities were as follows:
We have audited the accompanying consolidated balance sheets of W. R. Berkley Corporation and subsidiaries as of December 31, 2013 and 2012, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2013. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
For fixed maturity securities that the Company intends to sell or, more likely than not, would be required to sell, a decline in value below amortized cost is considered to be an other-than-temporary impairment (“OTTI”). The amount of OTTI is equal to the difference between amortized cost and fair value at the balance sheet date. For fixed maturity securities that the Company does not intend to sell or believes that it is more likely than not it would not be required to sell, a decline in value below amortized cost is considered to be an OTTI if the Company does not expect to recover the entire amortized cost basis of a security (i.e., the present value of cash flows expected to be collected is less than the amortized cost basis of the security). The portion of the decline in value considered to be a credit loss (i.e., the difference between the present value of cash flows expected to be collected and the amortized cost basis of the security) is recognized in earnings. The portion of the decline in value not considered to be a credit loss (i.e., the difference in the present value of cash flows expected to be collected and the fair value of the security) is recognized in other comprehensive income.
Real estate held for investment purposes is initially recorded at the purchase price, which is generally fair value, and is subsequently reported at cost less accumulated depreciation. Real estate taxes, interest and other costs incurred during development and construction are capitalized. Buildings are depreciated on a straight-line basis over the estimated useful lives of the building. Minimum rental income is recognized on a straight-line basis over the lease term. Income and expenses from
At December 31, 2013 and 2012, investments in fixed maturity securities were as follows:
Claims occurring during the current year are net of loss reserve discounts of $22,680,000, $26,078,000 and $43,286,000 in 2013, 2012 and 2011, respectively.
Our SG&A ratio decreased due to administrative efficiencies gained through the management of costs, increased premium revenue and decreased levels of variable compensation accruals due to our financial performance.
The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair value of each class of financial instruments:
In June 2009, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codificationtm and the Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB Statement No. 162. Beginning in September 2009, all existing accounting standard documents, excluding rules and interpretive releases of the Securities and Exchange Commission (“SEC”) considered authoritative Generally Accepted Accounting Principles (“GAAP”) for SEC registrants, were superseded and the FASB Accounting Standards Codificationtm
In June 2008, the FASB issued new guidance for determining whether an instrument (or an embedded feature) is indexed to an entity’s own stock. The new guidance provides that an entity should use a two-step approach to
The Company’s assets measured at fair value on a recurring basis at December 31, 2009 and 2008 were as follows:
using a discounted cash flow analysis taking into consideration the creditworthiness of the counterparty to the agreement. The forward contract is included in other long-term assets. As the trading securities increased in value for the year ended December 31, 2009, a corresponding decrease in fair value of $849 for the forward contract was recorded to earnings. For the year ended December 31, 2008, a gain in fair value of $2,014 was recorded to earnings related to the forward contract.
Potential common stock equivalents representing 2,676,447 shares, 3,351,807 shares, and 1,531,368 shares for the years ended December 31, 2009, 2008 and 2007, respectively, were not included in the computation of diluted net income (loss) per share because to do so would have been anti-dilutive.
For the Company's discontinued operations, paid-claim exposure for group insurance products is limited to $750,000 per claim for major medical coverage and $250,000 per claim for individual stop- loss in any one calendar year. WNC's reinsurance for individual health insurance claims was designed to protect the Company from an excessive amount of claims over $250,000 on an individual claim basis.
Revenues for the discontinued operations were $268,746,000, $379,066,000, and $351,609,000 in 1996, 1995, and 1994, respectively.
In addition to WNC's retirement programs, the Company provides a contributory group life and medical insurance plan to certain eligible retirees and certain grandfathered active employees who have met a combination of age and service requirements (the Plan). The Plan pays a stated percentage of most medical expenses, reduced for deductibles and payments made by government programs or other group coverage. Active employees who are not included in the grandfathered group are eligible for $10,000 of life insurance benefits under the Plan after reaching a combination of age and service requirements.
The health care cost trend rate in 1996 was 11.1% for pre-age 65 and 9.3% for post-age 65 participants, graded evenly to 5.0% in 13 years. The health care trend rate used in 1995 was 11.5% for pre-age 65 and 9.7% for post-age 65 participants, graded evenly to 5.0% in 14 years. The health care cost trend rate assumption has a significant effect on the amounts reported. Increasing the trend rate by 1% per year would increase the accumulated postretirement benefit obligation by $1,939,000 at December 31, 1996 and the aggregate of the service and interest cost components of net periodic postretirement benefit expense by $197,000 in 1996.
Maintaining a combined ratio below 100%, which indicates that the company is making an underwriting profit, depends upon many factors including hurricane activity in the Gulf of Mexico and the southern Atlantic coast, strict underwriting of risks, and adequate and timely premium rates. A major hurricane hitting the coast of Alabama, Georgia, South Carolina, Mississippi, Louisiana, or Texas could cause the combined ratio to fluctuate materially from prior years. The property and casualty subsidiaries maintain catastrophe reinsurance to minimize the effect of a major catastrophe.
The National Security Group's consolidated statement of cash flows indicate that operating activities provided (used) cash of $2,913,000, $(442,000), $868,000 in 2001, 2000, and 1999 respectively. Those statements also classify the other sources and uses of cash by investing activities, and financing activities and disclose the amount of cash available at the end of the year to meet the Company's obligations.
Except as discussed in Note N to the consolidated financial statements, the Company is aware of no known trends, events, or uncertainties reasonably likely to have a material effect on its liquidity, capital resources, or operations. Additionally, the Company has not been made aware of any recommendations of regulatory authorities, which if implemented, would have such an effect.
Schedule I. Summary of Investments - December 31, 2001 and 2000 48
The companys investment in affiliate consists of a 50% interest in Mobile Attic, Inc., a portable storage leasing company. The company accounts for this investment using the equity method (see note N commitment).
Certain reclassifications have been made in the previously reported financial statements to make the prior year amounts comparable to those of the current year. Such reclassifications had no effect on the previously reported net income or shareholders equity.
The Company and its subsidiaries operate primarily in the insurance industry. Premium revenues and operating income by industry segment for the years ended December 31, 2001, 2000 and 1999 are summarized below:
The table below provides selected consolidated financial data of the Company. The information has been derived from our consolidated financial statements for each of the years in the five year period ended December 31, 2015. You should read this selected consolidated financial data in conjunction with the audited consolidated financial statements and notes as of and for the year ended December 31, 2015 included in Part II, Item 8 "Financial Statements and Supplementary Data", and Part II,
The Company operates within the property and casualty insurance industry and, accordingly, has significant invested assets which are exposed to various market risks. These market risks relate to interest rate fluctuations, credit risks, equity security market prices and, to a lesser extent, foreign currency rate fluctuations. All of the Company's invested assets, with the exception of investments in limited partnerships, are classified as available for sale.
The Company utilizes the services of an investment firm of which two directors of the Company are employees or partial owners. This investment firm may serve as agent for purchases and sales of securities and manages equity securities and fixed maturity portfolios with an aggregate market value of approximately $62,156 at December 31, 2015. Total commissions and net fees earned by the investment firm and affiliates on these transactions and for advice and consulting were approximately $235, $212 and $239 during 2015, 2014 and 2013, respectively.
Cash flows related to federal income taxes paid, net of refunds received, for 2015, 2014 and 2013 were $14,500, $11,619 and $17,250, respectively.
Director compensation cost associated with restricted stock grants of $460, $440 and $440 was charged against income for the restricted stock units for 2015, 2014 and 2013, respectively.
The Company recorded a 9.7% or $1,874,850 increase in total revenues during 1995 as compared to 1994. This increase was primarily the result of three factors. First, based on revised actuarial estimates, the Company reduced by $800,000 its estimate of the unearned premium reserve for future utilization of the death, disability, and retirement benefit, included as a part of MDA's claims-made policies, which resulted in an increase in premiums earned of $800,000. Secondly, MDA instituted a 14% rate increase effective January 1, 1995 on all of MDA's new and renewal business which, coupled with other routine changes in MDA's book of business, resulted in an increase in premiums earned during 1995 of approximately $875,000 when compared to 1994. Finally, the Company's investment income and net realized investment gains increased in 1995 approximately $200,000 over the previous year. This increase was due to the Company increasing its total invested assets during 1995 as other assets such as premiums receivable and reinsurance receivables were collected and converted to invested assets.
As discussed in Note 3, on November 15, 1996, the Company completed the purchase of 2,781,338 shares of its convertible preferred stock. The average weighted number of common stock equivalents outstanding for 1996 reflects the purchase of these shares as of November 15, 1996.
• 36 months from Closing: $400,000 cash and 800,000 common shares and expenditures of $350,000
Till is authorized to issue 12,000,000 shares of restricted voting stock at a par value of $0.001. Those Till shares have restricted voting rights whereby no single shareholder of Till is able to exercise voting rights for more than 9.9% of the voting rights of the total issued and outstanding Till shares. However, if any one shareholder of Till beneficially owns, or exercises control or direction over more than 50% of the issued and outstanding Till shares, the 9.9% restriction will no longer apply to the Till shares. At December 31, 2017 and 2016, there were 3,290,884 and 3,350,284, respectively, of issued, and outstanding, Till shares.
• Specify how much, if any, of a deferred income tax asset is reportable as an admitted asset.
Risk exposure is mitigated by diversification across a portfolio of insurance contracts and geographical areas and by the use of various underwriting and claim review strategies. Inflation risk is mitigated by taking expected inflation into account when estimating insurance contract liabilities. Omega purchases reinsurance as part of its risk mitigation strategies. Reinsurance is placed on both a proportional and non-proportional basis. The use of proportional and non-proportional reinsurance varies by line of business.
The key assumption underlying the valuation of the reserve for unpaid losses and LAE is that the future loss development will follow a similar pattern to past loss development experience, including average claim costs, claim handling costs, and other claim factors for each accident year. Additional qualitative judgments are used to assess the extent to which past trends may not apply in the future. In addition, consideration is given to available industry data/information. Judgment is further used to assess the extent to which external factors, such as inflation, court decisions, and government legislation, may affect the estimates. Other factors that may affect the reliability of loss and LAE assumptions include any variation in interest rates, claim settlement delays, and changes in foreign exchange rates.
Till's maximum exposure to credit risk is limited to the carrying amount of Till's financial assets as follows:
Net investment income for the Partnership's retail property located in Roswell, GA was approximately $2.7 million for the twelve months ended December 31, 1999 and 1998.
The retail property experienced a net unrealized loss of $1.8 million and $1.3 million in 1999 and 1998, respectively. The decrease in value in 1999 was attributable to a declining position of the property in the market, while the decrease in 1998 was a reflection of lower rents. The complex is no longer being actively marketed for sale.
Under applicable accounting rules (FASB 97), DAC related to deferred annuities is amortized in proportion to the estimated gross profits over the estimated lives of the contracts. Essentially, as estimated profits of the Insurance Company related to these assets increase, the amount and timing of amortization is accelerated. The decrease in 2008 relates primarily to the occurrence of net capital losses in 2008 compared to net capital gains in 2006 and 2007. The decrease from 2006 to 2007 reflects the reduction in inforce due to the high surrender rate of 2006. (See also the discussion of Deferred Policy Acquisition Costs under Critical Accounting Policies below.)
For the reasons discussed above, income before income taxes amounted to approximately $16.9 million in 2008, as compared to approximately $96.7 million in 2007 and approximately $70.2 million in 2006.
The Insurance Company is continually assessing its Swaption portfolio to determine if sufficient protection is provided to cover projected realized losses in the event of a liquidation of assets to satisfy annuity surrenders under the aforementioned 300 basis points increase in interest rates. As part of this process, Presidential may consider purchasing additional Swaptions as well as extending the maturity of its Swaption portfolio by selling the Swaptions maturing in July 2009 and purchasing another Payor Swaption to cover future portfolio needs. Future consideration of these transactions or other asset/liability management strategies is dependent upon periodic testing based on updated asset and liability data as of December 31, 2008.
As discussed below, during 1999, the Company's net assets in liquidation, which represent the amount available for distribution to common shareholders, were reduced to zero. Consequently, all subsequent decreases in the Company's
Prior to October 1, 1999, the Company had a defined benefit pension plan and two defined contribution plans in effect. As of March 22, 2000, the pension plan was terminated, and, following approval from the Pension Benefit Guaranty Corporation and receipt of a favorable determination letter from the Internal Revenue Service, all benefits due under the plan were distributed to the plan participants in November and December 2000. Benefits under this plan had been frozen as of July 31, 1996. The Company contributed approximately $966,000 to the plan during 2000 so that the plan could pay the required benefits to the participants.
Inflation and changing prices had no material impact on our revenues or the results of operations for the year ended December 31, 2000.
Selected consolidated income statement data and ending balance sheet data for each of the five years ended December 31, 1999, follows:
(e) Reflects reductions in shareholders' equity resulting from repurchases of Shares.
Folksamerica's 1998 combined ratio of 108.0% was higher than that of 1997 due primarily to two property events experienced during the year (Canadian ice storms and Hurricane Georges) and higher than anticipated asbestos and environmental losses.
(a) For the years 1989 through 1991 liabilities are shown net of reinsurance recoverable. For the years 1992 through 1999 liabilities are shown without regard to reinsurance recoverable in accordance with SFAS No. 113. The table excludes the insurance operations of VGI and CIG whose liability for unpaid losses and lae totalled $68.9 million, $88.5 million, $71.9 million and $65.4 million as of December 31, 1999, 1998, 1997 and 1996, respectively.
On October 15, 1999, the Company concluded its acquisition of the CIG companies (PIC, ACIC and BICC) for $86.7 million in cash. Because the cost of these companies was less than the fair value of their net identifiable assets at October 15, 1999, the Company recorded a $62.0 million deferred credit ($57.7 million as of December 31, 1999) that will be amortized to income over three years. For the period from October 15, 1999 to December 31, 1999, the inclusion of PIC, ACIC and BICC did not have a significant impact on the Company's 1999 operating results.
In connection with the Redomestication, White Mountains paid $104.1 million in certain compensation benefits to its current and former employees and directors on October 22, 1999 at an incremental after tax cost of $14.9 million. In connection with the compensation payments, White Mountains paid cash of $89.8 million (primarily to its former employees) and issued $14.3 million in Shares (primarily to its current employees, directors and advisors). A significant portion of the compensation paid on October 22, 1999 represented the acceleration of expenses that would have ordinarily been incurred in future periods which resulted in increased tax deductible expenses in 1999.
The carrying values of White Mountains' common equity securities, a significant portion of its other investments (primarily partnership interests invested in common equity securities) and its investment in FSA Preferred Stock are based on quoted market prices or management's estimates of fair value (which is based, in part, on quoted market prices) as of the balance sheet date. Market prices of common equity securities are subject to fluctuations which could cause the amount to be realized upon sale of the investment to differ significantly from the current reported value. The fluctuations may result from perceived changes in the underlying economic characteristics of the investee, the relative price of alternative investments, general market conditions and supply and demand imbalances for a particular security.