felanders/preprocessed huggingface dataset:
Net Investment Income 2,847 2,878 2,605 1.1 (9.5) Interest on notes receivable 2,409 2,614 1,531 8.6 (41.4) Commission and fee income: Brokerage commission income 1,183 1,389 3,291 17.4 136.9 Management fees from affiliates 1,344 1,386 1,425 3.1 2.8 ------ ------ ----- --- ------- Total commission and fee income 2,527 2,775 4,716 9.8 69.9 ----- ------ ----- ---- ------
This Report contains certain forward-looking statements within the meaning of United States’ securities laws which are intended to be covered by the safe harbors created thereby. Forward-looking statements involve risks and uncertainties which may cause actual results to differ, and are subject to change based on various insurance industry factors, including, without limitation, competitive conditions in the insurance industry, unpredictable developments in loss trends, adequacy and changes in loss reserves, market acceptance of new coverages and enhancements, changes in reinsurance costs and availability, and changes in levels of general business activity and economic conditions. With respect to the development of the Harbour Village property, such forward-looking statements involve risks and uncertainties which may cause actual results to differ, and are subject to change based on various real estate development industry factors, including competitive housing conditions in the local market area, risks inherent in new construction, changes in interest rates and the availability of mortgage financing for prospective purchasers of condominium units and boat slips, and changes in local and national levels of general business activity and economic conditions. All statements, other than statements of historical facts, included or incorporated by reference in this Report that address activities, events or developments that the Company expects or anticipates will or may occur in the future constitute forward-looking statements. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could over time prove to be inaccurate and therefore, there can be no assurance that the forward-looking statements included in this Report will themselves prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
interest entity, to provide additional disclosures about their involvement with a variable interest entity. FSP FAS No. 140-4 also requires certain additional disclosures, in regards to variable interest entities, to provide greater transparency to financial statement users. FSP FAS No. 140-4 is effective for the first reporting period (interim or annual) ending after December 15, 2008, with early application encouraged. The Company is currently assessing the impact of FSP FAS No. 140-4 on its consolidated financial position and results of operations.
Simultaneous with the sale of the Series A Preferred Stock, Darcy George Roney, an individual who owned 5,000,000 shares of Rineon common stock sold 4,990,000 of his shares back to Rineon for $25,000, which shares were cancelled. As a result of such stock redemption, an aggregate of 2,010,000 shares of Rineon common stock are currently issued and outstanding. Mr. Roney also resigned as the President and agreed to resign as the sole member of the board of directors of Rineon.Under the terms of the Preferred Stock Purchase Agreement, Rineon agreed to appoint Leo de Waal, Thomas Lindsay, Keith Laslop, Michael Hlavsa and Tore Nag as the members of the board of directors of Rineon and Mr. Roney shall resign as a member of the Rineon board of directors.
Inherently, there are risks and uncertainties involved in making these judgments. Changes in circumstances and critical assumptions such as a continued weak economy, or unforeseen events which affect one or more companies, industry sectors or countries could result in additional impairments in future periods for other-than-temporary declines in value. See also Note 4 to the Consolidated Financial Statements included elsewhere in this report and “Item 1A - Risk Factors-The value of our investments could decline, affecting our profitability and financial strength” and “Investments” contained later in this item.
Net investment income was $1,029,457 in 2001, $888,238 in 2000 and $775,148 in 1999, an increase of 16% in 2001 and 15% in 2000. The Company used its positive operating cash flow to increase its fixed maturity investment portfolio in both years, which resulted in the increase in investment income.
Amortization of deferred policy acquisition costs was $29,844 in 2001, $44,084 in 2000 and $27,732 in 1999. The increase in 2000 was due to a write-off of the remaining deferred policy acquisition asset on an Accidental Death Plan that was discontinued in 2000.
We primarily receive our revenue from earned premium derived from our insurance company operations, management fees generated by our underwriting agency operations, commission income produced by our intermediary operations, investment income from all of our operations and other operating income. Our core underwriting activities involve providing group life, accident and health, aviation, London market account, global financial products and other specialty lines of business, each of which is marketed by our insurance companies and our underwriting agencies either directly to customers or through a network of independent or affiliated agents and brokers.
Income tax expense was $57.4 million for 2002 compared to $30.2 million in 2001. Our effective tax rate was 35.1% in 2002. The unusually high tax rate for 2001 results from the write off related to the impairment of goodwill, which was not deductible for income tax purposes.
Interest expense was $8.9 million for 2001 down from $20.3 million in 2000. This decrease resulted from our use of the proceeds from our March, 2001 public offering of common stock and part of our August, 2001 offering of 2% convertible notes to pay off our debt under the bank facility, lower interest rates and the low interest rate on our newly issued convertible notes.
Commission income was $43.4 million for 2001 compared to $49.9 million in 2000. Commission income decreased due to general market conditions and less ceded reinsurance being placed on behalf of our insurance companies as they increased their retentions. Net earnings of our intermediaries decreased to $8.7 million for 2001 compared to $11.2 million in 2000. The decrease in net earnings was partly caused by our acquisition of The Schanen Consulting Group, LLC which was not subject to income taxes during 2000 prior to our ownership, but reflected in our historical results due to pooling-of-interest accounting, and less commission income as a result of the mix of business, which had a lower gross margin during the current year
The following is a summary of our contractual cash payment obligations as of December 31, 2002 (in thousands):
Other assets consist primarily of DSI, specifically identifiable intangible assets, property and equipment owned by the Company, balances associated with corporate-owned and bank-owned life insurance, certain reinsurance assets, receivables resulting from sales of securities that had not yet settled as of the balance sheet date, debt issuance costs associated with line-of-credit arrangements, assets under capital leases, guaranteed living benefit (“GLB”) reserves embedded derivatives, deferred losses on business sold through reinsurance and other prepaid expenses. Other liabilities consist primarily of current and deferred taxes, pension and other employee benefit liabilities, derivative instrument liabilities, certain reinsurance payables, payables resulting from purchases of securities that had not yet settled as of the balance sheet date, interest on borrowed funds, obligations under capital leases, deferred gain on business sold through reinsurance and other accrued expenses.
Changes in the amount of credit loss of income (loss) where the portion related to other factors was recognized in OCI (in millions) on fixed maturity AFS securities were as follows:
Credit ratings express opinions about the credit quality of a security. Securities rated investment grade, that is those rated BBB- or higher by Standard & Poor’s (“S&P”) Rating Services or Baa3 or higher by Moody’s Investors Service (“Moody’s”), are generally considered by the rating agencies and market participants to be low credit risk. As of December 31, 2018 and 2017, 96% of the fair value of our corporate bond portfolio was rated investment grade. As of December 31, 2018 and 2017, the portion of our corporate bond portfolio rated below investment grade had an amortized cost of $3.1 billion and $3.4 billion, respectively, and a fair value of $2.9 billion and $3.4 billion, respectively. Based upon the analysis discussed above, we believed as of December 31, 2018 and 2017, that we would recover the amortized cost of each corporate bond.
Derivative activities are monitored by various management committees. The committees are responsible for overseeing the implementation of various hedging strategies that are developed through the analysis of financial simulation models and other internal and industry sources. The resulting hedging strategies are incorporated into our overall risk management strategies.
As of December 31, 2018, the latest maturity date for which we were hedging our exposure to the variability in future cash flows for these instruments was September 2049.
We file with a consolidated group; however, we calculate our tax expense (benefit) on a separate company basis.
On August 24, 1992, Hurricane Andrew struck the South Florida coast, causing losses to MCAIC which exceeded its surplus as regards policyholders. MCAIC was placed in liquidation on October 23, 1992 by the Oklahoma District Court, Oklahoma. The Registrant in 1992 wrote off its investment in MCAIC and MCAIC's subsidiaries, Property-Casualty Company of MCA ("PCCMCA") and Fairmount Central Urban Renewal Corporation ("Fairmount").
Net income increased $2,913,000 or $1.43 per share in 1996 as compared to 1995, after decreasing $2,618,000 or $1.28 per share in 1995 as compared to 1994.
Reserving assumptions (except as noted in Loss Reserve Disclosures) and payment patterns of the Insurance Companies did not materially change from the prior year and there were no unusually large retained losses resulting from claim activity. Unpaid losses are not discounted.
Fiscal 2003 results include a $7.7 million, non-operating gain related to the IRS settlement (see Note 12 - “Income Taxes” to the audited, consolidated financial statements). Additionally, Fiscal 2003 results included a $470,000 gain included in discontinued operations, related to the settlement of one matter involving Medi-Cal reimbursements paid to Brea Neuropsychiatric Hospital, a facility owned by the Company until its disposal in fiscal year 1991, covering fiscal periods from 1983 through 1986.
We reported net income of approximately $7.5 million and an operating loss of $771,000 for the fiscal year ended May 31, 2003 compared to a net loss of $770,000 and an operating loss of $774,000 for the fiscal year ended May 31, 2002. Results for the fiscal year ended May 31, 2003 include a $7.7 million non-operating gain in connection with the IRS settlement (see Note 12 - “Income Taxes” to the audited, consolidated financial statements) and a $470,000 gain included in discontinued operations, related to the settlement of one matter involving Medi-Cal reimbursements paid to Brea Neuropsychiatric Hospital, a facility owned by the Company until its disposal in fiscal year 1991, covering fiscal periods from 1983 through 1986. For the fiscal year ended May 31, 2003, excluding the $8.2 of one-time gains from net income would have resulted in a $729,000 net loss ($0.19 loss per basic and diluted share). Additionally, results from discontinued operations include $88,000 of revenue related to a favorable settlement of one hospital cost report and the elimination of a $75,000 reserve for another cost report, both pertaining to our hospital business segment that was discontinued in Fiscal 1999. Operating revenues increased by 16.2%, or $4.5 million, to approximately $32.1 million for the fiscal year ended May 31, 2003 compared to $27.6 million for the fiscal year ended May 31, 2002. This increase is primarily attributable to membership growth from existing business, one new contract implemented during the fourth quarter of Fiscal 2002, and new Indiana business that was implemented during January 2003. These increases were offset by the loss of business from two major customers during Fiscal 2003.
As of May 31, 2004, there are 18,740 remaining shares authorized and available to issue, and no outstanding shares of Preferred Stock. The Company is authorized to issue shares of Preferred Stock, $50.00 par value, in one or more series, each series to have such designation and number of shares as the Board of Directors may fix prior to the issuance of any shares of such series. Each series may have such preferences and relative participation, optional or special rights with such qualifications, limitations or restrictions stated in the resolution or resolutions providing for the issuance of such series as may be adopted from time to time by the Board of Directors prior to the issuance of any such series.
Includes the $7.7 million gain in settlement of the IRS matter (see Note 12 - “Income Taxes”).
Includes $75,000 related to the elimination of the Company’s reserve for cost report settlements (see (c) above).
Income before taxes and cumulative effect adjustment: 1997 % 1996 % 1995 % Life and accident and health insurance ..... $ 2,171 64.6 $ 1,141 70.4 $(178) (64.5) Property and casualty insurance . 1,572 46.8 1,192 73.4 651 235.9 Other ........................... (383) (11.4) (710) (43.8) (197) (71.4) ------ ------ ------ ----- ----- ----- $ 3,360 100.0 $ 1,621 100.0 $ 276 100.0
Consolidated Statements of Income - Years Ended December 31, 1997, 1996, and 1995......................... 19
Earnings Per Share Earnings per share of common stock is based on the weighted average number of shares outstanding during each year. The adjusted weighted average shares outstanding was 2,339,848 in 1997 and 2,339,848 in 1996 and 2,337,090 in 1995.
Federal income tax rate applied to pre-tax income .......................... $ 1,142 $ 551 $ 94 Dividends received deduction and tax-exempt interest ..................... (239) (256) (261) Other, net ................................. (134) (30) 229 Small life insurance company deduction ..... (407) -- -- ------- ------- ------- Federal income tax expense ................. $ 362 $ 265 $ 62 ------- ------- -------
(Dollars in Thousands) ---------------------------------- NSIC NSFC ---------------- ---------------- Written Earned Written Earned ------- ------ ------- -------- Direct ......... $ 4,451 $ 4,483 $ 31,920 $ 27,299 Assumed ........ -- -- 1 -- Ceded .......... (51) (51) (8,422) (5,077) -------- -------- -------- -------- Net ............ $ 4,400 $ 4,432 $ 23,499 $ 22,222 -------- -------- -------- --------
(Dollars in thousands) Year ended December 31, 1997 1996 1995 Assets: Individual life and accident and health insurance ................................ $ 39,569 $ 35,590 $ 35,870 Property and casualty insurance ............ 67,286 62,538 61,192 Other ...................................... 103 91 204 ------- ------- ------- $106,958 $ 98,219 $ 97,266 ------- ------- -------
Cash and cash equivalents per balance sheet $ 364 Checks outstanding in excess of bank balance per balance sheet ( 1,190) -------- Cash on hand ( 826)
Excludes premiums of $35,000 in 2003, $1,727,000 in 2002 and $16,627,000 in 2001 from the Company’s fronting arrangements for others, the commercial automobile plans of Arkansas, California, Louisiana, Mississippi, and Pennsylvania under which the Company was a servicing carrier and the reinsurance arrangement in Florida whereby MGA premiums were ceded to a non-affiliated reinsurer and assumed by General Agents.
Policy acquisition costs include commission expense, change in deferred policy acquisition costs, premium taxes and regulatory fees and assessments. The increase in 2005 is primarily due to the increase in premium writings. The ratio of Policy acquisition costs to Net premiums earned was 15%, 14% and 15% for 2005, 2004 and 2003, respectively. The increase in 2005 was primarily due to the Southeast region, which has lower policy acquisition costs than the other regions, becoming a smaller portion of the mix as our other regions continue to grow.
Critical accounting policies are defined as those that are reflective of significant judgements and uncertainties, and potentially result in materially different results under different assumptions and conditions. The Company’s critical accounting policies are described below. For a detailed discussion on the application of these and other accounting policies. See Note 1 of Notes to Consolidated Financial Statements.
In July 2001, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 142, “Goodwill and Other Intangible Assets” (“Statement 142”). Statement 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment required annually, or earlier if certain indicators arise, in accordance with the provisions of Statement 142. Statement 142 also
Inland Marine Premium. As of June 1997, the Company no longer writes inland marine business, other than onshore energy. The Somerset Companies produced the inland marine business written by the Insurance Companies.
NET WRITTEN PREMIUM. The 2.6% decrease in net written premium from 1997 to 1998 was primarily due to the reduction in fourth quarter 1998 aviation premium and competitive pressure in the marketplace partially offset by the increase in the Lloyd's marine premium and Navigators Insurance increasing its participation in the marine pool to 60% in 1998 from 48% in 1997. The 8.0% increase in net written premium from 1996 to 1997 was primarily due to increases in the marine premium received from both the Somerset Companies and Lloyd's along with the new engineering and construction business, partially offset by decreases in the aviation and inland marine premium.
The following table summarizes the ratings of CNA's general account fixed maturity debt portfolio:
Insurance Operations - Premium revenue - Insurance premiums on property and casualty and health insurance contracts (included in life premiums) are earned ratably over the terms of the policies after provision for estimated adjustments on retrospectively rated policies and deductions for ceded insurance. Revenues on universal life type contracts comprise contract charges and fees which are recognized over the coverage period. Other life insurance premiums are recognized as revenue when due after deductions for ceded insurance.
in Note 19. The funds are included in short-term investments and are invested in U.S. treasury securities. The escrow account amounted to $1,071.2 and $1,044.6 at December 31, 1996 and 1995, respectively.
Estimating loss reserves is a difficult process as there are many factors that can ultimately affect the final settlement of a claim and, therefore, the reserve that is needed. Changes in the law, results of litigation, medical costs, the cost of repair materials and labor rates can all impact ultimate claim costs. In addition, time can be a critical part of reserving determinations since the longer the span between the incidence of a loss and the payment or settlement of the claim, the more variable the ultimate settlement amount can be. Accordingly, short-tail claims, such as property damage claims, tend to be more reasonably predictable than long-tail claims, such as general liability and professional liability claims.
State of Hawaii v. Brown & Williamson Tobacco Corporation, et al. (Circuit Court, First Circuit, Hawaii, filed January 31, 1997), filed by the Attorney General of Hawaii. Plaintiff seeks restitution, unspecified amounts in actual damages, punitive damages and treble damages, disgorgement of profits, and the funding of smoking cessation campaign. Lorillard is a defendant in the case.
The Company occupies common facilities with BCBSUW and is charged a proportionate share of the cost of such facilities under the Service Agreements. The Company's corporate headquarters are located in Milwaukee, Wisconsin in a 235,000 square foot building leased by BCBSUW. The Company also utilized space in a Milwaukee regional office leased by BCBSUW, which has approximately 217,000 square feet of office and warehouse space. However, this lease expired on December 31, 1999. Consequently, during 1999, the Company transitioned certain operations to 45,000 square feet of leased office space located in New Berlin, Wisconsin, approximately 12,000 square feet located in Platteville, Wisconsin, and 32,000 combined square feet at two locations in Waukesha, Wisconsin. In addition, the Company's business is sold and serviced in five other Wisconsin regional offices leased by BCBSUW. Unity owns a 40,000 square foot facility in Sauk City, Wisconsin. IRG and CRG both lease facilities including 9,900 square feet in Hartford, Wisconsin and 12,500 combined square feet at three locations in Michigan, respectively.
Investment gains are realized in the normal investment process in response to market opportunities. Realized gains decreased to $2.1 million in 1999 from $9.1 million in 1998. Realized gains in 1998 decreased from $11.9 million in 1997.
Certain reclassifications have been made to the consolidated financial statements for 1998 and 1997 to conform with the 1999 presentation.
Depreciation expense totaled $2,221,000 and $2,242,000 in 1999 and 1998, respectively.
The Company and certain of its subsidiaries participate with BCBSUW in a multiple employer defined benefit pension plan (the Plan). The Plan provides retirement benefits to covered employees based primarily on compensation and years of service. Since the Plan is overfunded, no contributions were made in 1999, 1998 or 1997.
Management also considers and evaluates performance by analyzing the non-GAAP measure operating income, and believes it is a useful metric for investors, potential investors, securities analysts and others because it isolates the “core” operating results of the Company before considering certain items that are either beyond the control of management (such as taxes, which are subject to timing, regulatory and rate changes depending on the timing of the associated revenues and expenses) or are not expected to regularly impact the Company’s operational results (such as any realized investment and other gains, which are not a part of the Company’s primary operations and are, to an extent, subject to discretion in terms of timing of realization).
The primary differences between the effective tax rate and the federal statutory income tax rate for 2015 resulted from the dividends-received deduction (“DRD”) and the small life insurance company deduction (“SLD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3.0 million and is ultimately phased out at $15.0 million.
Deferred tax liabilities and assets at December 31, 2015 and 2014 were comprised of the following:
If we elect to convert coverage on certain policies that we currently reinsure on a renewable term basis to a coinsurance or modified coinsurance basis, the associated premium revenues for those policies will discontinue, and our proportionate share of the associated mortality and expense charges, asset based allowances and deferred sales charges will be recorded as reinsured policy revenues.
For the amortization of the value of acquired insurance in force, the Company reviews its estimates of gross profits each reporting period. The most significant assumptions involved in the estimation of gross profits include interest rate spreads; future financial market performance; business surrender and lapse rates; mortality and morbidity; expenses and the impact of realized investment gains and losses. In the event actual experience differs significantly from assumptions or assumptions are significantly revised, the Company is required to record a charge or credit to amortization expense for the period in which an adjustment is made.
Other underwriting, insurance and acquisition expenses decreased 9.1% to $3,249,353 for the year ended December 31, 2010 to $2,953,245 for the year ended December 31, 2011, a decrease of $296,108. The decrease is primarily due to:
Measuring the fair value of financial instruments that are managed within a portfolio.
The balances of and changes in deferred acquisition costs as of and for the years ended December 31, 2011 and 2010 are summarized as follows:
Reinsurance assumed and ceded amounts for TLIC for 2011 and 2010 are summarized as follows:
Pro forma adjustments consist of the following: reduction in revenue due to the amortization of current market value adjustments over the life of the investments, reduction in deferred acquisition costs due to the business acquired, amortization of the value of insurance business acquired and deferred tax impact of these pro forma adjustments..
The Company’s operations, both currently and in the past, have been in areas of insurance considered long-tail lines of business. The long-tail reference relates to both the length of time it takes for claims to become known to an insurer and to be ultimately resolved. As a result of this extended length of time, an actuarial analysis of medical malpractice liability reserves and assumed reinsurance reserves is especially difficult. Small changes in the length of reporting or settlement patterns as well as in the average settlement amount caused by judicial decisions, inflation, catastrophes and foreign exchange rates can result in significant variability in projected reserve levels. In general, for these lines of business, the Company believes that a range plus or minus 10% from expected results is not considered an abnormality. This range reflects the uncertainly of the claim environment as well as the limited predicting power of past data. These uncertainties and limitations are not specific to the Company. A plus or minus 10% range around the Company’s net reserves held as of December 31, 2006 is a range of plus or minus $36.7 million. Such a range does not include all possible scenarios from a statistical distribution standpoint. The range represents a reasonable estimate of possible outcomes and should not be confused with a range of best estimates. The reserve selections represent the Company’s estimate of what it believes is the most probable outcome (best estimate) albeit the probability of any specific selection being exactly the ultimate result when all claims are paid and settled is very small.
for the Non-Core Healthcare Reserves, the accuracy of the reserves is primarily dependent on the future settlement value of claims now known. Any particular legal award may be larger than current case reserves or, if the Company is
The Company repurchased 1,600, 29,987, and 41,400 shares of its common stock during 2003, 2002, and 2001 respectively, at average prices of $4.79, $4.65 and $9.58 per share, respectively.
Statutory Insurance Information. For insurance regulatory and rating purposes, the Insurance Subsidiaries report on the basis of statutory accounting principles ("SAP"). In recent years, various state insurance departments and the NAIC have expressed concern, essentially about the "rate of return" earned by holders of small face amount life policies, potentially including Preneed policies. Although the Company does not believe calculating a simple "rate of return" or premium "pay-back" measure is meaningful for traditional life insurance products, certain state insurance regulators are considering actions that could alter the profitability of existing contracts or eliminate small face amount policies as a viable product offering. During 2002, A.M. Best Company ("Best") affirmed Citizens Security's B- rating. This rating was previously lowered from a B in 2001. United Liberty's rating has remained at B- by Best since it was acquired in 1998, and Citizens Insurance, due to its lack of insurance operations, is not rated.
In addition to the statutory totals shown above, Citizens Insurance generated statutory net income of approximately $63,000, $76,000, and $93,000 during, 2002, 2001, and 2000, respectively without remitting any dividends to its parent. Citizens Insurance generated statutory net income in 2003 of $56,000 and paid a dividend of $62,400 to Citizens Security.
Consolidated Statements of Operations for the years ended December 31, 2003, 2002 and 2001 ...........................28
Health care expense increased primarily due to increased expenses within the Company's dental office subsidiary, increased capitation, and increased indemnity benefits paid to insureds directly related to increased premium revenue. Health care expense also increased due to increased claims and claims reserve costs associated with the implementation of a number of new indemnity benefit programs offered by the Company's indemnity insurance subsidiary, geographic expansion, and to a lesser extent, the expansion of the Company's Preferred Provider Organization operations. General and administrative expenses increased at a lower rate due to increased operating efficiencies. Selling expenses increased primarily due to higher costs in the distribution of the Company's products through insurance related sources. Other income increased due to the favorable disposition by the Company of certain equity investments and dividend income. Net income increased due to the above factors.
The Consolidated Financial Statements and the related Notes and Schedules thereto filed as part of this 1995 Annual Report on Form 10-K are listed on the accompanying Index to Financial Statements on page.
The loss ratio on the Senior Health and Life Division's major products, Medicare supplement policies, was higher during the first two quarters of 1995 due to increased utilization on the standardized Medicare supplement products. The Medicare supplement loss ratio decreased to 61.5% in the fourth quarter of 1995.
In March, June, September and December 1995, the Company's Board of Directors announced a quarterly Common Stock dividend of $.045 per share, for a total of 18 centers per share in 1995.
Net assets in the Trust decreased $3,242 million, or 33%, to $6,638 million at December 31, 2011 from $9,880 million at December 31, 2010. This decrease is primarily due to a change in net unrealized investment gains on the Trust Shares, as well as (i) net activity under the Purchase and Sale Program, (ii) the impact of escheatment of Trust Shares and (iii) the impact of withdrawals by Beneficiaries from the Trust. Net unrealized investment gains, which represent the difference between the estimated fair value and the cost basis of the Trust Shares, decreased $3,110 million from the prior year. A net reduction of 9,429,973 Trust Interests resulted from a net decrease of 6,219,932 Trust Interests in connection with issuances and redemptions under the Purchase and Sale Program, a decrease of 2,273,170 Trust Interests due to escheatment of Trust Shares and a decrease of 936,871 Trust Interests due to withdrawals by Beneficiaries from the Trust. Net redemptions by Beneficiaries through the Purchase and Sale Program, escheatment of unclaimed cash and Trust Shares and withdrawals by Beneficiaries from the Trust, resulted in decreases in net assets for the year ended December 31, 2011 of $87 million, $32 million and $13 million, respectively. Net investment income of $158 million, which consists of dividends received from MetLife, Inc. on its Common Stock, and net realized investment gains of $168 million recognized on the sale of Trust Shares sold in the Purchase and Sale Program, were fully allocated to Beneficiaries.
(i) on the 90th day after the date on which the Trustee receives written notice from MetLife, Inc., given at MetLife, Inc.’s discretion at any time, that the number of Trust Shares is 25% or less of the number of issued and outstanding shares of Common Stock,
The following selected consolidated financial data of the Company and its subsidiaries should be read in conjunction with the consolidated financial statements and notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations, both of which are included elsewhere herein.
Investment income (and the related yields on average invested assets) totaled $2.16 billion (8.63%) in 1998, compared with $1.80 billion (8.61%) in 1997 and $1.25 billion (8.74%) in 1996. Investment income and the related yields reflect the effects of the Acquisitions from their respective dates of acquisition. The invested assets associated with the Acquisitions included high-grade corporate, government and government/agency bonds and cash and short-term investments, which are generally lower yielding than a significant portion of the invested assets that comprise the remainder of the Company's portfolio. On a pro forma basis, assuming the Acquisitions had been consummated on October 1, 1995, the yield on related average invested assets would have been 8.53% in 1997 and 8.37% in 1996. Thus, the increased yields in 1998 and 1997, when compared to the pro forma 1996 yield, reflect a partial reallocation of lower-yielding invested assets acquired as part of the Acquisitions into generally higher-yielding asset classes in which the Company has historically invested a portion of its portfolio. The increases in investment income also reflect increased income from the Company's investment in partnerships, as well as the effects of increases in average invested assets (in excess of those acquired through the Acquisitions).
counterparty risk associated with those transactions is minimal. It is the Company's policy that these agreements are entered into with counterparties who have a debt rating of A/A2 or better from both S&P and Moody's. The Company continually monitors its credit exposure with respect to these agreements. In addition to counterparty risk, Swap Agreements also have interest rate risk. However, the Company's Swap Agreements typically hedge variable-rate assets or liabilities, and interest rate fluctuations that adversely affect the net cash received or paid under the terms of a Swap Agreement would be offset by increased interest income earned on the variable-rate assets or reduced interest expense paid on the variable-rate liabilities. The primary risk associated with MBSs is that a changing interest rate environment might cause prepayment of the underlying obligations at speeds slower or faster than anticipated at the time of their purchase. As part of its decision to purchase an MBS, the Company assesses the risk of prepayment by analyzing the security's projected performance over an array of interest-rate scenarios. Once an MBS is purchased, the Company monitors its actual prepayment experience monthly to reassess the relative attractiveness of the security with the intent to maximize total return.
The information required in answer to this item appears on pages through of the accompanying 1993 Annual Report to Shareholders incorporated by reference in this Form 10-K Annual Report as Exhibit 13.
During 2001, Merrill Lynch Life experienced contract owner withdrawals that exceeded deposits by $298.1 million. The components of contract owner transactions were as follows:
Merrill Lynch Life's investment in collateralized mortgage obligations ("CMO") and mortgage backed securities ("MBS") had a carrying value of $72.4 million as of December 31, 2001. At December 31, 2001, approximately 82% of Merrill Lynch Life's CMO and MBS holdings were fully collateralized by the Government National Mortgage Association, the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. CMO and MBS securities are structured to allow the investor to determine, within certain limits, the amount of interest rate risk, prepayment risk and default risk that the investor is willing to accept. It is this level of risk that determines the degree to which the yields on CMO and MBS securities will exceed the yields that can be obtained from corporate securities with similar credit ratings.
increased to 1,751 as of December 31, 1995 versus 1,192 as of December 31,1994. Due to continued adverse loss development in the police line, the Company implemented stricter underwriting standards and substantial rate increases in early 1995. As a result, net premiums earned for police and public official coverages (often provided in tandem) declined 35.1% during 1995. Policy counts for police and public official coverages decreased 42.4% to 319 at December 31, 1995, down from 555 policies a year earlier. The Company decided in 1996 to non-renew a substantial amount of the police business and review elimination of the program in early 1997.
The Company's subsidiaries' primary sources of cash are from premiums collected and amounts earned from the investment of this cash flow. The principal uses of funds are the payment of claims and related expenses, other operating expenses and interest expense. The Company's insurance operations generated positive cash flow from operations of $1.3 million and $2.0 million for the years ended December 31, 1994 and 1995, respectively, and utilized cash from operations of $5.2 million for the year ended December 31, 1996. The decrease in cash flow resulted from the decline in premium revenues at All Nation under the quota share reinsurance agreement with Allstate.
The "Selected Financial Data" section on pages 1 and 2 of Exhibit 13 representing pages 6 and 7 of the Company's annual report to security holders for the year ended December 31, 2000, is incorporated herein by reference.
Operating Results for the Year Ended December 31, 1996 as Compared to the Year Ended December 31, 1995
W. R. BERKLEY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements For the Years Ended December 31, 1996, 1995 and 1994
In June 1996, FASB issued Statement of Financial Accounting Standards No. 125, entitled "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities." The Statement establishes standards for determining whether transfers of "financial assets" such as securities are to be accounted for as sales, or alternatively, as secured borrowings. The Statement, which applies to transactions beginning in 1997, is not expected to have a material impact on the Company's financial position or results of operations.
(1) As of and for the year ended December 31, 1995 the results of the regional segment have been restated to reflect the international segment as a separate segment.
Net Investment Income. Net investment income increased 3.9% to $16.5 million for the year ended December 31, 1996 from $15.8 million for the year ended December 31, 1995. The increase is primarily due to additional funds available for investment in 1996 and was partially mitigated by lower average pre-tax interest rates in 1996 than in 1995, resulting from a greater component of tax-exempt securities in 1996.
The Company receives cash from premiums and, to a lesser extent, investment income. The principal cash outflows are for the payment of claims, reinsurance premiums, policy acquisition costs and general and administrative expenses. Net cash provided by operations was $24.7 million in 1996, $22.0 million in 1995, and $17.8 million in 1994.
Heinz B. Vischer* Küsnacht, General Manager, Swiss Re 1977 *Members of the Committee of Directors
With effect from 1st January, 1975, the Board of Directors has made the following appointments: As Deputy General Manager, Mr. Hermann Odermatt; As Managers, Mr. Hans Brodbeck, Mr. Paul E. Chri­ sten and Mr. Herbert Schönenberger; As Deputy Managers, Mr. Gunnar Benktander, Mr. Richard R. Doerr, Mr. Hans R. Kaufmann, Mr. Albert Kunz and Mr. Max Nabholz; As Assistant Managers, Mr. Gottfried Bachmann, Mr. Enzo Deled, Mr. Hans F. Enzmann (In Advisory Capa­ city), Mr. Erich Etter, Mr. Heinz Fischer, Mr. Oskar Jenni (in Advisory Capacity), Mr. Robert Martignier,
Investment Income (less Interest on Life Assurance and Annuity Fund and otfier technicai reserves) 133,036,192 109,437,773
Premium volume and the Life business in force grew substantially. The smaller profits in non-Life rein­ surance were more than offset by an increased profit in the Life branch. Switches in the securities port­ folio, with the goal of greater liquidity, resulted in realized capital losses. — As in the previous year, the company repaid the Swiss Re an additional in­ stalment of A $ 150,000 on the Initial financing funds advanced earlier.
Australia Australian Branch Embank House, 325 Collins Street, Melbourne, Vic. 3000 with an Office in Sydney Australian Reinsurance Company Ltd. Embank House, 325 Collins Street, Melbourne, Vic. 3000 with Offices in Sydney, Hong Kong and Auckland, New Zealand
Such risks and uncertainties include but are not limited to the following:
We undertake no obligation to publicly update or revise any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which merely reflect company expectations at the time of the writing. Actual results may differ materially from expectations conveyed in forward-looking statements due to changes caused by various risks and uncertainties. The reader should, however, consult any further disclosures MLLIC may make in future filings of its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K.
Future gross profit estimates are subject to periodic evaluation with necessary revisions applied against amortization to date. The impact of revisions and assumptions to estimates on cumulative amortization is recorded as a charge or benefit to current operations, commonly referred to as “unlocking”. Changes in assumptions can have a significant impact on the amount of DAC reported and their related amortization patterns. In general, increases in the estimated separate accounts return and decreases in surrender or mortality assumptions increase the expected future profitability of the underlying business and may lower the rate of DAC amortization. Conversely, decreases in the estimated separate accounts returns and increases in surrender or mortality assumptions reduce the expected future profitability of the underlying business and may increase the rate of DAC amortization. For the years ended December 31, 2007, 2006 and 2005 the favorable (unfavorable) impact on pre-tax earnings related to DAC unlocking was $26.5 million, $16.7 million, and ($81.9) million, respectively. See Note 5 to the Financial Statements for a further discussion of period-to-period differences in DAC unlocking.
MLLIC offers products in the highly competitive retirement planning market by selling variable and interest-sensitive annuity products through the retail network of Merrill Lynch, Pierce, Fenner & Smith, Incorporated, a wholly owned broker-dealer subsidiary of ML&Co. MLLIC competes for ML&Co.’s clients’ retirement planning business with i) unaffiliated insurers whose products are also sold through ML&Co.’s retail network, ii) insurers who solicit this business directly, and iii) other investment products sold through ML&Co.’s retail network. MLLIC competes in this market segment by integrating its products into ML&Co.’s planning-based financial management program.
MLLIC recorded net earnings of $94.7 million and $67.4 million for 2006 and 2005, respectively.
$6.5 million of severance expenses related to our corporate reorganization included in employee costs ($4.3 million in the ancillary services and corporate segment and $2.2 million in the title segment),
$1.7 million of commercial services’ escrow loss recorded as part of title loss expense in the title segment, and
We consider our actual claims payments and incurred loss experience, including the frequency and severity of claims, compared to our actuarial estimates of claims payments and incurred losses in determining whether our overall loss experience has improved or worsened relative to prior periods. We also consider the impact of economic or market factors on particular policy years to determine whether the results of those policy years are indicative of future expectations. In addition, large claims, including large title losses due to independent agency defalcations, are analyzed and reserved for separately due to the potential higher dollar amount of loss, lower volume of claims reported and sporadic reporting of such claims. We evaluate the frequency and severity of large losses in determining whether our experience has improved or worsened. Our method for recording the reserves for title losses on both an interim and annual basis begins with the calculation of our current loss provision rate which is applied to our current premium revenues, resulting in a title loss expense for the period. This loss provision rate is set to provide for losses on current year policies and is primarily determined using moving average ratios of recent actual policy loss payment experience (net of recoveries) to premium revenues.
Due to the inherent uncertainty in predicting future title policy losses, significant judgment is required by our management and our third party actuaries in estimating reserves. As a consequence, our ultimate liability may be materially greater or lower than current reserves and/or our third party actuary’s calculated estimates.
The Company’s revenues are usually subject to seasonal fluctuations. The advertising revenues of the stations are generally highest in the second and fourth quarter of each year, due in part to increases in consumer advertising in the spring and retail advertising in the period leading up to and including the holiday season. Additionally, advertising revenues in even-numbered years tend to be higher as they benefit from advertising placed by candidates for political offices and demand for advertising time in Olympic broadcasts.
Net investment income reported for the year ended December 31, 2001 was $4.1 million, a decrease of $12.6 million from the $16.7 million reported for 2000. The decrease was due mainly to realized gains in the Company’s investment portfolio in 2000, and additional interest income earned on the residual insurance sale proceeds that were not present during 2001. Also, during the third quarter of 2001 the Company recognized a $3.2 million charge related to the determination that certain of its venture capital investments had carrying values in excess of their fair values, and that certain of those excesses were other than temporary.
The operating results of the acquired businesses are included in the consolidated statements of income from their respective dates of acquisition.
The Company has a postretirement plan that provides medical and life insurance benefits for qualified retired employees. The postretirement medical plan is generally contributory with retiree contributions adjusted annually to limit employer contributions to predetermined amounts. The postretirement life plan provides free insurance coverage for retirees and is insured with an unaffiliated company.
The following tables reconcile the numerators and denominators for the basic and diluted earnings from continuing operations per share calculations for the years ended December 31, 2002, 2001, and 2000: