The selected consolidated financial data presented below should be read in conjunction with the consolidated financial statements of the Company, the related notes thereto and the auditors' report thereon and "Management's Discussion and Analysis of Financial Condition and Results of Operations". The selected consolidated financial data presented below as of, and for the year ended December 31, 1995 are derived from the consolidated financial statements of the Company, which have been audited and reported upon by KPMG LLP, independent certified public accountants. The selected consolidated financial data presented below as of and for each of the years ended December 31, 1996 through 1999, have been audited and reported upon by Ernst & Young LLP, independent certified public accountants.
- ------------------------ (1) After provision for Series C Preferred Stock dividends of $180, $433 and $250 for the years ended December 31, 1999, 1998 and 1997, respectively.
These increases totaled $22.44 million and were offset by the decrease in premiums on the products acquired in connection with the acquisitions of the business of First National and Dallas General, which products were terminated. Premiums earned from these products decreased $5.16 million to $52.60 million.
The Career Agent Segment was acquired in the Penn Union Acquisition and comprises the operations of Pennsylvania Life Insurance Company ("Pennsylvania Life") and PennCorp Life Insurance Company of Canada ("PennCorp Canada"). The Career Agents market life and health insurance products focusing primarily on fixed benefit accident and sickness products. Penn Corp Canada operates exclusively in Canada, while Pennsylvania Life operates in both the U.S. ("Pennsylvania Life U.S.") and Canada.
Net investment income of the Special Markets Segment increased $0.7 million to $10.0 million for the year ended December 31, 1998, compared to $9.3 million in 1997. This increase is attributable to the increase in invested assets outstanding in this segment during 1998 compared to 1997. Realized gains on investments decreased $0.3 million from the prior year due primarily to the write down of a permanently impaired security of $0.5 million in 1998.
On July 30, 1999, the Share Purchase Agreement closed with Capital Z purchasing 25,707,552 shares of common stock for $80,978,790. As contemplated by the Share Purchase Agreement, certain members of management and agents of Universal and the Penn Union Companies and holders of Series C Preferred Stock preemptive rights purchased 3,753,189 shares of common stock for $11,822,545. The total number of shares issued amounted to 29,460,741 for total proceeds of $92,801,334. The transaction expenses incurred with the UA Purchase Agreement amounted to $6,963,662 and were charged to paid-in capital. Included in these transaction expenses was a transaction fee and expense reimbursements of $5,120,896 paid to an affiliate of Capital Z, $1,375,000 of which was paid by issuing 436,508 shares of common stock of the Company.
As a result of the closing of the Capital Z transaction on July 30, 1999, all of the Series B, D-1 and D-2 Preferred Stock was converted into 1,777,777, 833,333 and 555,556 shares of common stock, respectively.