felanders/preprocessed huggingface dataset:
Investments in fixed maturities are adjusted for amortization of premiums and accretion of discounts to maturity date, except for collateralized mortgage and asset backed securities which are adjusted for amortization of premiums and accretion of discounts over their estimated lives. Certain collateralized mortgage and asset backed securities repayment patterns will change based on interest rate movements and, accordingly, could impact future investment income if the reinvestment of the repayment amounts are at lower interest rates than the underlying securities. Collateralized mortgage and asset backed securities amounted to $66.8 million and $103.9 million, respectively, at December 31, 2000 and $46.8 million and $37.8 million, respectively, at December 31, 1999. The collateralized mortgage and asset backed securities held as of December 31, 2000 and 1999 are shorter tranche securities possessing favorable prepayment risk profiles.
Directors Stock Purchase Plan ("Directors Plan"): The Directors Plan has been established for the benefit of non-employee Directors. The aggregate maximum number of shares that may be issued pursuant to the Directors Plan is 50,000. Non-employee Directors, during monthly offerings periods, may designate a portion of his or her fees to be used for the purchase of shares under the terms of the Directors Plan at a purchase price of the lesser of 85% of the fair market value of the shares on the first business day of the offering period or the date the shares are purchased. Under the Directors Plan, the Company issued 2,207 shares in 2000. The weighted-average fair value of those purchase rights granted in 2000 was $2.64.
The Company currently leases office space to serve as its headquarters location and 36 field offices for its production underwriters. In addition, the Company leases certain computer equipment. Rental expense for these operating leases was $2.2 million, $1.7 million and $1.2 million for the years ended December 31, 2000, 1999, and 1998, respectively.
The Company's operations are classified into three reportable business segments: The Commercial Lines Underwriting Group which has underwriting responsibility for the Commercial Automobile and Commercial Property and Commercial multi-peril package insurance products; The Specialty Lines Underwriting Group which has underwriting responsibility for the professional liability insurance products; and The Personal Lines Group which designs, markets and underwrites personal property and casualty insurance products for the Manufactured Housing and Homeowners markets. Effective June 30, 2000, due to a change in market focus, the previously reported Specialty Property Underwriting Group segment was restructured resulting in the combination of this Underwriting Group with the Commercial Lines Underwriting Group. Accordingly, prior information has been reclassified to reflect this change. The reportable segments operate solely within the United States.
In the fourth quarter of 1995, the Company terminated its relationship with an independent insurance agency and wrote-off commissions advanced to this agency. The net impact to this action reduced net income by $0.7 million. The Company is pursuing recovery of these funds through various channels, although no assurances can be given concerning the likelihood or financial impact of any possible recovery.
Commercial property consists primarily of former home office buildings of acquired companies no longer used in the operations of the Company. These propertiesare leased to various unaffiliated companies and organizations. Residential development property is primarily located in Springfield, Illinois, and entails several developments, each targeted for a different segment of the population. These targets include a development primarily for the first time home buyer, an upscale development for existing homeowners looking for a larger home, and duplex condominiums for those who desire maintenance free exteriors and surroundings. The Company's primary focus is on the development and sale of lots, with an occasional home construction to help stimulate interest.
On February 19, 1998, UTI signed a letter of intent with Jesse T. Correll, whereby Mr. Correll will personally or in combination with other individuals make an equity investment in UTI over a period of three years. Under the terms of the letter of intent Mr. Correll will buy 2,000,000 authorized but unissued shares of UTI common stock for $15.00 per share and will also buy 389,715 shares of UTI common stock, representing stock of UTI and UII, that UTI purchased during the last eight months in private transactions at the average price UTI paid for such stock, plus interest, or approximately $10.00 per share.Mr. Correll also will purchase 66,667 shares of UTI common stock and $2,560,000 of face amount of convertible bonds (which are due and payable on any change in control of UTI) in private transactions, primarily from officers of UTI. Upon completion of the transaction, Mr. Correll would be the largest shareholder of UTI.
Republic Indemnity: Encino, California 72,000 2003 San Francisco, California 57,000 2001 San Diego, California 11,000 1998 Other 16,000 1996-2000
Approximately 94% of the bonds and redeemable preferred stocks held by the Company were rated "investment grade" (credit rating of AAA to BBB) by nationally recognized rating agencies at December 31, 1995. Investment grade securities generally bear lower yields and lower degrees of risk than those that are unrated and non-investment grade. Management believes that the high quality investment portfolio should generate a stable and predictable investment return.
(1) The carrying value of investments in fixed maturities, mortgage loans and real estate that have not produced income for the last twelve months is less than one percent of the total of such investments at December 31, 1997.
various regulatory authorities by the Insurance Services Office, Inc. Use of these special endorsements is governed by the law and regulatory policies of states in which MNH is authorized to do business.
The selected consolidated financial data of the Company appears in a separate section of this Annual Report on Form 10-K on page 22.
Information required by this item is set forth on pages 51 through 87 of the Company's 2000 Annual Report to Shareholders and is incorporated herein by reference. Reference is made to the index to consolidated financial statements included in Item 14.
Deferred tax assets are recorded based on the differences between the financial statement and tax basis of assets and liabilities at the enacted tax rates. The principal assets and liabilities giving rise to such differences are investments, insurance reserves, and deferred acquisition costs. A deferred tax asset valuation allowance is established when there is uncertainty that such assets would be realized. The Company has no uncertain tax positions that they believe are more-likely-than not that the benefit will not to be realized.
IGF owns a 17,500 square foot office building located at 2882 106th Street, Des Moines, Iowa which serves as its corporate headquarters. The building is fully occupied by IGF but is currently for sale. IGF also owns certain improved commercial property which is adjacent to its corporate headquarters.
- SELECTED FINANCIAL DATA The data included on page 4 of the 1997 Annual Report, included as Exhibit 13, under "Selected Financial Data" is incorporated herein by reference.
The Company's title plants constitute a principal asset. Such plants comprise copies of public records, maps, documents, previous reports and policies which are indexed to specific properties in an area. The plants are generally located at the office which serves a particular locality. They enable title personnel to examine title matters relating to a specific parcel of real property as reflected in the title plant, and eliminate or reduce the need for a separate search of the public records. They contain material dating back a number of years and are kept current on a daily or other frequent basis by the addition of copies of documents filed of record which affect real property. The Company maintains title plants covering many of the areas in which it operates, although certain offices utilize jointly owned and maintained plants. The Company capitalizes only the initial cost of title plants. The cost of maintaining such plants is charged to expense as incurred.
As an insurance and reinsurance company, we generate gross revenues from two principal sources, premiums which are usually paid in advance of loss payments, and investment income. Cash flow is generated from premiums collected and investment income received less paid losses and loss expenses, policy acquisition costs and administrative expenses. Invested assets are generally held in liquid, investment grade fixed income securities of relatively short duration. We also invest a small portion of our assets in less liquid or higher risk assets in an attempt to achieve higher risk-adjusted returns. Claims payments in any short-term period are highly unpredictable due to the random nature of loss events and the timing of claims awards or settlements. The value of investments held to pay future claims is subject to market forces such as the level of interest rates, stock market volatility and credit events such as corporate defaults. The actual cost of claims is also volatile based on loss trends, inflation rates, court awards and catastrophes. We believe that our cash balances, our highly liquid investments, credit facilities and reinsurance protection provide sufficient liquidity to meet any unforeseen claim demands that might occur in the year ahead.
During 2005, we incurred net catastrophe-related pre-tax charges of $1.3 billion, primarily associated with Hurricanes Katrina, Rita and Wilma. In 2004, we incurred net catastrophe-related pre-tax charges of $510 million primarily associated with hurricanes which struck the Caribbean and the U.S.
Year Ended December 31, 2012 Compared to the Year Ended December 31,
Life Department. Premium Reserve from 1947 Annuity Fund from 1947 ....... Reserve for Unsettled Claims from 1947 . . Premiums, less cancellations Consideration for Annuities Interest
Assets. Shareholders' Liability 23,200,000 — Real Estate Frs. 9,470,000.Mortgages , 29,206,125.24 Government and other Securities , 361,726,819.97 Life and other funds deposited with ceding Companies . , 484,176,486.74 Bank Balances , 39,490,477.87 Cash in hand . . , 233,505. — 924,303,414 82 Due by other Companies 101,911,054 11 Sundry Debtors • . 490,057 55 Accrued Interest 2,937,742 69
AIC’s investment portfolio is primarily comprised of fixed maturities and cash equivalents. At December 31, 2003, approximately $58 million of fixed maturity securities and cash equivalents were placed in a trust and pledged in order to secure AIC’s obligations under reinsurance agreements. The agreements provide for the release of the pledged securities as the obligations under the reinsurance agreements decrease. However, if the AIC is unsuccessful in obtaining the release of pledged securities, AIC’s liquidity would suffer a significant negative impact. See “Off-Balance Sheet Arrangements” for additional information. Additionally, as required by insurance regulatory laws, certain fixed maturity securities with an estimated fair value of approximately $7.3 million at December 31, 2003 were deposited in trust with regulatory agencies.
There is significant uncertainty as to whether AIC will be able to meet its future cash flow needs. As noted above, a major portion of AIC’s investments are pledged and AIC’s ability to meet its cash flow needs will be highly dependent upon AIC’s ability to get significant amounts of pledged funds released. Additionally, AIC’s cash flows are significantly impacted by any changes in the expected payout of insurance losses and loss adjustment expenses (See “Business - Loss and Loss Adjustment Expense Reserves”). AIC’s ability to meet its cash flow needs is also dependent upon the timely recovery of reinsurance balances, including the favorable resolution of balances currently in dispute (See “Business - Reinsurance”). Based upon current estimates management of the Company believes AIC would likely have the ability to meet its cash flow needs through December 31, 2004. There can be no assurances considering the significant uncertainties
The Company’s stockholders’ deficit increased by approximately $43.5 million from December 31, 2002 to December 31, 2003. The principal component of this increase was a net loss of $43.3 million for the year ended December 31, 2003.
In January 2003, the FASB issued FIN No. 46, Consolidation of Variable Interest Entities, which the Company adopted in 2003 with no impact to the consolidated financial statements. In December 2003, the FASB revised FIN No. 46 (“FIN 46R”) and deferred its adoption for variable interest entities (“VIEs”) that meet certain criteria until the first quarter of 2004. FIN 46R clarified the definition of a variable interest such that only the holder of a variable interest can ever be the VIE’s primary beneficiary. Only primary
The Company's strategy includes expanding its authorization to write premiums on a direct basis and to reduce premium ceded to reinsurers. At the present, the Company generally retains the first $500,000 of each risk and reinsures the rest up to a maximum of $2.0 million per risk, pursuant to reinsurance arrangements. The Company also purchases catastrophic reinsurance, under which the Company is protected against an accumulation of losses arising out of any one event up to 95% of $12.5 million in excess of the initial $2.5 million of losses which the Company incurs. See "Business -- Regulation -- Reinsurance" and Note 10 of Notes to Consolidated Financial Statements for a description of the Company's reinsurance arrangements. The Company remains primarily liable to its policyholders in the event any reinsurer is unable or will not fulfill the obligations assumed under reinsurance. As a result of the cost and availability of reinsurance, in the future the Company may elect to retain a higher portion of the risk historically ceded to reinsurers. If the Company were to retain a higher proportion of insured risks, it would increase its exposure to significant losses relating to properties insured by the Company. This increased exposure could have a material adverse effect on the Company's results of operations.
The Company's effective income tax rate was 33%, 34% and 18% for 1994, 1995 and 1996, respectively, reflecting the 35% federal statutory income tax rate and the net effect of state taxes, less the beneficial effect of tax-exempt investment income earned during the periods. See Note 7 of Notes to Consolidated Financial Statements.
The valuation allowance represents the difference between the total deferred tax asset related to loss reserve discounting required by the Internal Revenue Service and the amount that is more likely than not to be realized. Medical malpractice is a long tail line of business. The Company's payout pattern as well as the industry payout pattern for this line of business is expected to be 15 years or longer.
The Company neither rents nor owns any properties. The Company utilizes the office space and equipment of its management at no charge and management of the Company determined it to be immaterial. The Company currently has no policy with respect to investments or interests in real estate, real estate mortgages or securities of, or interests in, persons primarily engaged in real estate activities.
The summary of significant accounting policies is presented to assist in the understanding of the financial statements. These policies conform to accounting principles generally accepted in the United States of America and have been consistently applied.
For the years ended April 30, 2016 and 2015, the Company did not realize any revenue.
Effective December 8, 2015 through March 8, 2016, the Company maintained office space in Kuala Lumpor, Malaysia with the Company’s then sole officer and director also at no cost to the Company.
As of April 30, 2016, the Company was authorized to issue 100,000,000 shares of common stock with a par value of $0.0001.
We currently operate without charge out of space located at 43 South Pompano Parkway, Suite 277, Pompano Beach, Florida 33069, donated by Mr. Losada, our President and principal shareholder. This office space is sufficient for our foreseeable needs.
The change in annuity and life insurance policy reserves includes changes in reserves related to annuity contracts with mortality risks. During 2001, the Company's Guaranteed Minimum Death Benefit ("GMDB") reserve decreased $43,984, as the result of an update of certain reserve assumptions as to risks inherent in the benefit. Previous assumptions had been based on statutory valuation principles as an approximation for U.S. GAAP. In addition, future mortality rates were lowered in 2001 to reflect favorable past experience. However, offsetting the resulting increase in earnings and equity as a result of changes in the GMDB liability in 2001, assumptions related to GMDB claim costs were also updated in the calculation of the deferred acquisition cost asset, resulting in additional amortization of this asset.
Return credited to contract owners consists primarily of net investment results from the Company's fixed, market value adjusted, separate account investment option and changes in the Company's experience rated reinsurance receivables. The decrease in 2002 was primarily due to increased net investment results on the Company's fixed, market value adjusted, separate account investment option. As the equity markets decline, movement from variable investment options to fixed investment options, primarily due to one of the Company's product features, has increased the assets invested in the fixed separate account investment option. Included in 2002 net investment results is $9,849 of realized and unrealized losses on certain securities, of which $5,427 related to WorldCom, Inc. bonds. The increase in net investment results was partially offset by a decrease in experience rated reinsurance receivables in 2002 due to unfavorable experience on certain blocks of variable annuity business. In 2001, return credited to contract owners decreased primarily due to favorable experience on certain blocks of variable annuity contracts increasing the experience rated reinsurance receivable. Partially offsetting the 2001 decrease is net investment losses of $1,662 related to Enron securities.
In a series of transactions with ASI, the Company transferred certain rights to receive a portion of future fees and contract charges expected to be realized on designated blocks of deferred annuity contracts.
In connection with these transactions, ASI, through special purpose trusts, issued collateralized notes in private placements, which are secured by the rights to receive future fees and charges purchased from the Company.
As of December 31, 2002, 2001 and 2000, shareholder's equity totaled $683,061, $577,668 and $496,911, respectively. The Company received capital contributions of $259,720 and $48,000 from ASI during 2002 and 2001, respectively. Of this, $4,520 and $2,500, respectively, was used to support its investment in Skandia Vida. Net (loss) income of ($165,257) and $33,099, for the years ended December 31, 2002 and 2001, respectively, contributed to the respective changes in shareholder's equity in 2002 and 2001.
The increase in the expense ratio for the year ended December 31, 2012 as compared to the same periods ended in 2011 and 2010 was primarily attributable to declining earned premiums, coupled with increased compensation expenses associated with the re-underwriting of our book of business.
On February 15, 2012, May 8, 2012, August 7, 2012 and November 6, 2012, our Board of Directors declared a quarterly cash dividend in the amount of $0.12 on each share of common stock outstanding. On March 15, 2012, June 15, 2012, September 18, 2012 and December 17, 2012, we paid $3.2 million, $3.1 million, $3.0 million and $3.0 million to our shareholders of record on March 1, 2012, June 1, 2012, September 4, 2012 and December 3, 2012, respectively. The declaration and payment of dividends is at the discretion of the Board and will depend on our financial results, cash requirements, future prospects and other factors deemed relevant by the Board.
We invest excess cash in a variety of investment securities. As of December 31, 2012, our investment portfolio consisted of 75.1% fixed maturities, 12.7% equity securities, 6.7% other investments and 5.6% short-term investments (based on fair value) compared to 77.6% fixed maturities, 9.7% equity securities, 5.6% other investments and 7.1% short-term investments as of December 31, 2011. We classify the majority of our investment portfolio as available-for-sale; resulting in these investments being reported at fair market value, with unrealized gains and losses, net of tax, being reported as a component of shareholders’ equity. At December 31, 2012, no investments were designated as trading. No issuer (excluding United States Government and United States Governmental agencies) of fixed maturity or equity securities represents more than 6.5% of shareholders’ equity at December 31, 2012.
In May 1996, Family Life Insurance Company ("FLIC"), an indirect, 100% owned subsidiary of FIC, purchased a 7.1 acre tract adjacent to the original Bridgepoint Square tract. This second tract contained one building site and one garage site. In January, 1997, FLIC began construction on a four-story office building, with rentable space of approximately 76,793 square feet, and the parking garage, with 350 parking spaces. In May, 1997, the entire rentable space in the building was leased to a major tenant in the technology business. Construction of the parking garage and the building shell was completed in October, 1997.
All marketing and sales for the Company are directed by the Executive Vice President of Marketing and Sales. The Vice President for Investors Sales directs Regional Vice Presidents who are responsible for the recruitment of general agents and managing general agents for individual insurance sales in the Investors Life Distribution System.
For the year ended December 31, 1997, FIC's net income was $16,328,000 (or $2.92 per common share), as compared to $16,157,000 (or $2.90 per common share for the year ended December 31, 1996 and $10,017,000 (or $1.81 per common share), for the year ended December 31, 1995. Earnings per share are stated on a diluted basis, in accordance with the requirements of FAS 128, which requires that diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were converted or exercised. For the years 1996 and 1995, earnings per share have been restated to reflect the effect of FAS No.128. The net income per share for the year 1995 has been restated to reflect the effect of the five-for-one stock split which was effective November 12, 1996.
The level of short-term investments at the end of 1997 was $34.5 million, as compared to $25.6 million as of December 31, 1996. The fixed maturities available for sale portion represents $81.9 million of investment assets as of December 31, 1997, as compared to $83.8 million at the end of 1996. The amortized cost of fixed maturities available for sale as of December 31, 1997 was $79.06 million representing a net unrealized gain of $2.79 million. This unrealized gain principally reflects changes in interest rates from the date the respective investments were purchased. To reduce the exposure to interest rate changes, portfolio investments are selected so that diversity, maturity and liquidity factors approximate the duration of associated policyholder liabilities.
From time to time we are involved in negotiations relating to the acquisition of companies in our industry or related industries. Some of these negotiations could involve companies whose acquisition would be highly material to our results of operations and financial condition. In addition, we could incur substantial costs in connection with negotiating such transactions, even if the transactions are not completed.
The Debtors’ estate included 1,177 security holders who held their positions through their individual retirement accounts (“IRA”), which are prohibited investments for an IRA. As a result, the Plan included a mechanism to resolve the IRA investors’ claims by establishing the Partnership and authorizing the issuance of the New IRA Notes.
The life insurance policies’ fair value estimates were reduced significantly in 2018. The primary cause of the change was the use of standard mortality multipliers for all policies as opposed to using previous life expectancy estimates that were previously determined by the Debtor for certain policies. A secondary cause was the increase in the cost of insurance imposed by certain life insurance companies on a number of policies in the PHT Portfolio
For the prior year and the first quarter of 2018, the PHT Portfolio’s value was estimated using an actuarially based approach incorporating net cash flows and life expectancies as provided by third-party life expectancy providers when they were available. This approach applied a monthly mortality scale as generated by the specific life expectancy (“LE”) and/or a default mortality multiplier of each insured which was used to project the PHT Portfolio’s present value of net cash flows (death benefits less premium payments and servicing company compensation). The mortality scale was actuarially rolled forward from the LE underwriting date to the valuation date.
CNA Surety Corporation is a holding company for the combined surety business of CNAF and Capsure. Pursuant to a reorganization agreement, CNAF and Capsure merged their respective operations at the close of business on September 30, 1997. The surety operations of CNAF are referred to as CCC Surety Operations ("Predecessor"). For a more detailed description of the merger transactions and their effects on the Company's financial data, see the Consolidated Financial Statements and related Notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 1999 Annual Report to Shareholders which are incorporated herein by reference.
(2) Includes the effect of recording releases of prior year loss reserves. The dollar amount and the percentage point effect on the loss ratio of these reserve revisions, all of which were net reductions, were $1,232, or 3.4%, for the three months ended December 31, 1996, $35,000, or 32.2%, and $8,510, or 7.6%, for the nine months ended September 30, 1997 and 1996, respectively, and $9,742, or 6.5%, and $10,846, or 8.3%, for the years ended December 31, 1996 and 1995, respectively.
The above Consolidated Financial Statements, the related Notes to the Consolidated Financial Statements and the Independent Auditors' Report are incorporated herein by reference from pages 26 through 47 of the 1999 Annual Report to Shareholders.
(1) During the fourth quarter of 2005, the Company decided to exit its non-core property catastrophe reinsurance business, due to the volatility associated with such business and other strategic considerations, and has not thereafter entered into or renewed any assumed property reinsurance contracts. A substantial majority of these reinsurance contracts expired on or before December 31, 2005 and all of the remaining contracts will expire prior to the end of the third quarter of 2006. The Company has classified the operating results of this business as discontinued operations. Prior period information has been reclassified to conform to the current period presentation. See "Other Transactions" and Note S to the Consolidated Financial Statements.
Mortgage-backed securities comprised 22% of the Company's total invested assets at December 31, 2005. Ninety-seven percent of the Company's mortgage-backed securities portfolio, based on fair values, has been rated as investment grade by nationally recognized statistical rating organizations. Mortgage-backed securities subject the Company to a degree of interest rate risk, including prepayment and extension risk, which is generally a function of the sensitivity of each security's underlying collateral to prepayments under varying interest rate environments and the repayment priority of the securities in the particular securitization structure. The Company seeks to limit the extent of this risk by emphasizing the more predictable payment classes and securities with stable collateral.
For the Company's property and casualty insurance products, a review of the seven most recent years' historical loss development variation reflects an annual range of -3.4% to + 6.6%. The average annual increase reflected in such review was +3.6% and the average decrease was -1.7%. If the Company were to assume subsequent loss development of + 3.6% or -1.7%, each of which are within historical variation, the estimated unpaid claims and claims expense reserves, net of reinsurance, established for such products as of December 31, 2005 would be increased by $22.9 million in the first case, which would have decreased its 2005 net income by $14.9 million, or decreased by $10.8 million in the second, which would have increased its 2005 net income by $7.0 million. Management believes that while fluctuations of this magnitude could have a material impact on the Company's results of operations, they would not be likely to materially affect its financial condition or liquidity. However, it is possible that, using other assumptions or variables that are outside of the range of historical variation, the level of the Company's unpaid claims and claim expenses could be changed by an amount that could be material to the Company's results of operations, financial condition and liquidity.
In connection with, and because it desires to take advantage of, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions readers regarding certain forward-looking statements in the above "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Form
The financial services operations of FGCC are principally engaged in commercial and residential real estate lending, commercial finance and premium financing. The Company also has small life insurance operations included in this segment which was substantially sold in 1996. Revenues consist principally of interest income and, to a lesser extent, life insurance premiums, fees and other income.
The Company's thrift and loan subsidiary, which is principally engaged in real estate lending, finances its lending activities primarily through customer deposits, which have grown from $926 million at December 31, 1995 to $1.114 billion at December 31, 1996. In January 1995, this thrift and loan became eligible for financing through the Federal Home Loan Bank of San Francisco. This financing is available at varying rates and terms. As of December 31, 1996, $231 million was available under the facility and no borrowings were outstanding.
The Company has a line of credit agreement with the Federal Home Loan Bank that provides additional liquidity. The agreement makes $25 million available through March 13, 1998. At December 31, 1997, the Company had an outstanding borrowing of $6.4 million under the line of credit agreement. Interest is payable at the current rate upon issuance. From time to time, the Company has borrowed funds from its affiliates on an arm's-length basis. The Company has entered various note-payable agreements with ALLIED Mutual, an affiliate. The outstanding borrowing at December 31, 1997 was $3.6 million.
In 1997, the Company adopted SFAS 128, "Earnings Per Share." SFAS 128 supersedes Opinion 15, "Earnings Per Share," and specifies the computation, presentation, and disclosure requirements for earnings per share (EPS). It replaces the presentation of primary EPS and fully diluted EPS with basic EPS and diluted EPS, respectively. Basic EPS includes the weighted average number of common shares outstanding and excludes all dilutive securities. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stocks were exercised or converted to common stock. Prior year amounts have been restated to conform to the new standard.
We have audited the accompanying consolidated balance sheets of ALLIED Life Financial Corporation and subsidiaries as of December 31, 1997 and 1996 and the related consolidated statements of income, stockholders' equity, and cash flows for each of the years in the three-year period ended December 31, 1995. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based upon our audits.
The Company's operations consist primarily of those of ALLIED Life. ALLIED Life underwrites, markets, and distributes a portfolio of life insurance and annuity products to individuals who live primarily in rural and suburban areas of the United States. ALLIED Life's products are sold through two distribution systems: the independent agencies representing affiliated property-casualty insurance companies (ALLIED Agencies) and a traditional life insurance distribution system that includes financial institutions and a number of independent life insurance marketing organizations. In 1997 the ALLIED Agencies generated 68% of life insurance face amount sold and 41% of annuity premiums collected.
As of December 31, 1997 and 1996, there were no investments that were non-income producing for the preceding twelve months.
Net income from continuing operations was $12,066,000 (basic earnings of $1.45 per common share, or diluted earnings of $1.45 per common share) for the year ended December 31, 2000, as compared to $12,765,000 (basic earnings of $1.45 per common share, or diluted earnings of $1.45 per common share) for the year ended December 31, 1999 and $11,119,000 (basic earnings of $1.27 per common share, or diluted earnings of $1.25 per common share) for the year ended December 31, 1998. Earnings per share are stated in accordance with the requirements of Financial Accounting Standard (FAS) No. 128, which establishes two measures of earnings per share: basic earnings per share and diluted earnings per share. Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the potential dilution that would occur if securities or other contracts to issue common stock were converted or exercised. For the year 1998, earnings per share have been restated to reflect the effect of the stock dividend which was paid on March 17, 1999.
maturities are the primary investment of the Company and were $81,827,055 or 90% of total investments at December 31, 1995. The Company is carrying fixed maturities of $11,995,728 at amortized cost (held to maturity) and fixed maturities of $69,831,327 at fair value (available for sale) at December 31, 1995. The Company does not hold any so-called "junk" bonds or what are generally considered high-yield type securities, and 99% of the bonds are of investment grade quality. In accordance with SFAS 115, the Company recorded an increase in investments of $1,174,528 to reflect the reporting of investments classified as available for sale at fair value (estimated market value) which was higher than amortized cost. The credit is reflected in shareholders' equity as a "net unrealized holding gain". In addition to the fixed maturities, the Company also had $5.2 million in unrestricted cash and $9.4 million in short term investments at December 31, 1995. Central also has an unused $1 million line of credit with a major bank. During 1995, total assets increased about $9.3 million, or 9% to $117,329,038, mainly due to a positive cash flow from operations during the year from premiums, investment income and the $1,174,528 net unrealized holding gain.
Net income for 1995 was $4,504,607 or $1.07 per share compared to $4,813,761 or $1.14 per share in 1994. The decrease is primarily due to the increase in the benefit loss ratio to 71% from 69.4% and a 1% decrease in investment income for the year. Because group accident and health represents 98% of Central's business, a higher loss ratio from this division has a negative effect on the Company's earnings. The statutory loss ratio in the group accident and health division increased to 69.4% in 1995 from 67.9% in 1994.
Effective January 1, 1994, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity Securities". SFAS 115 requires that investments in all debt securities and those equity securities with readily determinable market values be classified into one of three categories: held to maturity, trading or available for sale. Classification of investments is based upon management's current intent. Debt securities which management has a positive intent and ability to hold until maturity are classified as securities held to maturity and are carried at amortized cost. Unrealized holding gains and losses on securities held to maturity are not reflected in the consolidated financial statements. Debt and equity securities that are purchased for short-term resale are classified as trading securities. Trading securities are carried at market value, with unrealized holding gains and losses included in earnings. All other debt and equity securities not included in the above two categories are classified as securities available for sale. Securities available for sale are carried at market value, with unrealized holding gains and losses reported as a separate component of shareholders' equity, net of tax. At December 31, 1995 the Company did not have any investments classified as trading securities.
Located on the same 15 acre campus is Corporate 2, a 19,000 square foot building which is used by two branch offices of our subsidiary, RLI Insurance Company, and two supporting departments.
Investment income decreased $0.6 million, or 6.0%, in 2019 as compared to 2018. The decrease in investment income was primarily attributable to a decrease in the equity in earnings from investments in real estate partnerships of $0.4 million.
The following tables present the Company’s unrealized loss aging for securities by type and length of time the security was in a continuous unrealized loss position as of December 31, 2019 and 2018.
The following table presents a rollforward of deferred policy acquisition costs by segment for the years ended December 31.
During the years ended December 31, 2019 and 2018, Gray paid the Company approximately $1,022 and $783, respectively, in insurance premiums related to certain voluntary employee benefit plans.
The Company's premium rate increases require the prior approval of the New York Insurance Department. For voluntary private passenger automobile business, rate increases of 4.5% and 6.7% were implemented in September 1995 and October 1993, respectively; there was no rate change during 1994. For voluntary commercial automobile business, a 3.0% rate increase was implemented in February 1995; there were no rate changes during 1994 and 1993. For voluntary statutory automobile business, rate increases of 6.0%, 7.6% and 6.9% were implemented in February 1995, February 1994 and February 1993, respectively. For assigned risk private passenger automobile business, rate increases of 5.8% and 8.6% were implemented in December 1995 and August 1994, respectively; there was no rate change during 1993. For assigned risk commercial automobile business, rate increases of 15.2% and 18.3% were implemented in March 1995 and May 1993, respectively; there was no rate change during 1994. For liability other than automobile, there were no rate changes during the last three years. For homeowners, there was a 3% increase in December 1995, and no increases during 1994 or 1993. In addition, the Company adopted workers' compensation rate changes promulgated by the New York State Compensation Insurance Rating Board of -8.4%, +1.4%, -15.4% and +14.4% that were implemented in October 1995, October 1994, April 1994 and October 1993, respectively.
Net income for the year 32,595 32,595 - - ---------- --------- ---------- ---------
RECLASSIFICATIONS The Company reclassified some figures in prior years' financial statements to conform with the 1995 presentation.
The Unitrin Multi Lines Insurance segment leases facilities with an aggregate square footage of approximately 257,000 at 9 locations in 7 states. The latest expiration date of the existing leases is January 1, 2008.
Independent Accountants" on page 21 of the 1996 Annual Report to Stockholders and unaudited supplementary data that is included in Note 14--Selected Quarterly Operating Results (Unaudited) on page 39 of the 1996 Annual Report to Stockholders are incorporated herein by reference.
Cash provided by operating activities for 2016 consisted of net investment income on proceeds from our offering of senior notes. Cash used for investing activities for 2016 consisted of loans to U.S. MI Holdings on December 22, 2016. Cash
a promissory note receivable of $500.0 million principal amount bearing interest at 4.011% due December 1, 2026 (“2026 promissory note”) which was issued at par. Interest payments on the 2026 promissory note are due on June 1st and December 1st of each year. U.S. MI Holdings may redeem the 2026 promissory note at any time and from time to time, in whole or in part, at a price equal to 100% of the principal amount to be paid;
The Company's ability to generate adequate amounts of cash to meet its future cash needs depends on a number of factors, particularly including its ability to control administrative costs, related to the ASO arrangement for the TennCare program and controlling corporate overhead costs. On the basis of the matters discussed above, management believes at this time that the Company has the ability to generate sufficient cash to adequately support its financial requirements through the next twelve months, maintain compliance with bank financial covenants, and maintain minimum statutory net worth requirements of OmniCare-TN.
The information contained under the heading "Financial Review" in the Company's Annual Report to Shareholders for the fiscal year ended December 31, 1997, is incorporated herein by reference.
Subsequent to December 31, 1999, the Company acquired approximately $32,000,000 of annual premium in its risk business unit by assuming approximately $2,500,000 of liabilities in excess of cash and other assets. These excess liabilities will impact the net worth of our HMO entity, but it is believed that the HMO's net worth, the earnings of the HMO and a planned quota share insurance arrangement, will allow the HMO to meet state statutory net worth requirements. The acquisition should be immediately profitable to the Company, because the Company can leverage its equipment, systems and employees in the Medicaid business in the same state.
This information is included in the Annual Report of the Registrant to its shareholders on pages 12 and 13 for the year ended December 31, 1997 and is incorporated herein by reference (see Exhibit 13 to this filing).
The Company earns revenues and generates cash primarily from policy charges, life insurance premiums and net investment income. Policy charges include asset fees, which are earned primarily from separate account values generated from the sale of individual and group variable annuities and investment life insurance products; cost of insurance charges earned on all life insurance products except traditional, which are assessed on the amount of insurance in force in excess of the related policyholder account value; administrative fees, which include fees charged per contract on a variety of the Company’s products and premium loads on universal life insurance products; and surrender fees, which are charged as a percentage of premiums withdrawn during a specified period for annuity and certain life insurance contracts. Net investment income includes earnings on investments supporting fixed annuities, the MTN program and certain life insurance products, and earnings on invested assets not allocated to product segments, all net of related investment expenses. Other income includes asset fees, administrative fees, commissions and other income earned by subsidiaries of the Company that provide administrative, marketing and distribution services.
Management makes decisions concerning the sale of invested assets based on a variety of market, business, tax and other factors. All realized gains and losses generated by these sales, charges related to other-than-temporary impairments of available-for-sale securities and other investments, and changes in valuation allowances on mortgage loans on real estate are reported in net realized investment gains and losses. Also included are changes in the fair values of derivatives qualifying as fair value hedges and the related changes in the fair values of hedged items; the ineffective, or excluded, portion of cash flow hedges; changes in the fair values of derivatives that do not qualify for hedge accounting treatment, including the mark-to-market of embedded derivatives, net of economic hedges; and periodic net amounts paid or received on interest rate swaps that do not qualify for hedge accounting treatment.
Management provides for federal income taxes based on amounts it believes it ultimately will owe. Inherent in the provision for federal income taxes are estimates regarding the deductibility of certain items and the realization of certain tax credits. In the event the ultimate deductibility of certain items or the realization of certain tax credits differs from estimates, management may be required to significantly change the provision for federal income taxes recorded in the consolidated financial statements. Any such change could significantly affect the amounts reported in the consolidated statements of (loss) income.
The Company determines the fair values of certain financial instruments based on the fair market hierarchy established in Accounting Standards Codification (“ASC”) 820-10-20, Fair Value Measurements and Disclosures (“ASC 820-10-20”). The fair values for fixed maturity and equity securities are largely determined by either independent methods prescribed by the National Association of Insurance Commissioners, which do not differ materially from nationally quoted market prices, when available, or independent broker quotations. See Note 2 and Note 15 of the accompanying notes to consolidated financial statements with respect to assets and liabilities carried at fair value and information about the inputs used to value those financial instruments, by hierarchy level, in accordance with ASC 820-10-20.
o During 2001 and 2000, the Company extended its reinsurance agreements. The Company also entered into a reinsurance agreement with SICL in 2000. The reinsurance agreements are modified coinsurance arrangements where the reinsurer shares in the experience of a specific book of business.
The increasing loss and loss adjustment expense experienced on the business which the Company originates and cedes to its reinsurers may also adversely affect the Company's profitability in the future. If the Company's ratio of loss and loss adjustment expense to earned premium does not improve or should continue to deteriorate, it is likely that over time the Company's cost of reinsurance would increase, and it is possible that the Company could not obtain reinsurance on economically viable terms.
Net losses and LAE were $65,234,000 for 1998, a decrease of 9% from $71,627,000 in 1997. The loss and LAE ratio decreased to 69.7% in 1998 from 74.6% in 1997. The decrease in net losses and LAE resulted from the fact that there was a net decrease of $2,145,000 recorded during 1998 for losses occurring in prior accident years. The Company recorded an increase to its reserves for losses related to prior accident years of $4,508,000 in 1997.
Involuntary automobile insurance business increased the Company's calendar year loss and LAE ratio by approximately 3.5 and 3.4 percentage points for the years ended December 31, 1998 and 1997, respectively.