felanders/preprocessed huggingface dataset:
Cash provided by financing activities was $22.0 million for the year ended December 31, 1999 compared to cash used in financing activities of $16.0 million for the year ended December 31, 1998. The increase was primarily due to increases in the intercompany amounts payable by the Company to Columbia/HCA prior to the Distribution. Intercompany amounts payable by the Company to Columbia/HCA were eliminated in
In addition, Section 1877 of the Social Security Act, commonly known as the "Stark Law," was amended, effective January 1, 1995, to significantly broaden the scope of prohibited referrals by physicians under the Medicare and Medicaid programs to providers of designated health services with which such physicians have ownership or certain other financial arrangements. Certain exceptions are available for physicians maintaining an ownership interest in an entire hospital, employment agreements, leases, physician recruitment and certain other physician arrangements. Final implementing regulations have not yet been adopted, and there can be no assurance that the physician arrangements of LifePoint will be found to be in compliance with the Stark Law, as such law ultimately may be interpreted. Many states have adopted or are considering similar anti-kickback and physician self-referral legislation, some of which extends beyond the scope of the federal law to prohibit the payment or receipt of remuneration for the referral of patients and physician self-referrals regardless of the source of the payment for the care. Both federal and state government agencies have announced heightened and coordinated civil and criminal enforcement efforts. In addition, the Office of the Inspector General of the United States Department of Health and Human Services and the Department of Justice have from time to time established enforcement initiatives that focus on specific billing practices or other suspected areas of abuse. Current initiatives include a focus on hospital billing for outpatient charges associated with inpatient services, as well as hospital laboratory billing practices. LifePoint is cooperating with the government agencies which are responsible for such initiatives where such initiatives involve its hospitals.
During the first quarter 2003, ML of New York discontinued manufacturing its single premium variable life insurance product. As a result, ML of New York currently does not manufacture, market, or issue life insurance products.
During the first quarter 2005, ML of New York will transition the policy administration of its inforce life insurance contracts to an unaffiliated third party service provider, which is considered a leading provider of insurance products administration services. ML of New York remains committed to the delivery of high quality services for all life insurance contracts inforce.
During 2004, variable life insurance deposits decreased $0.2 million (or 29%) to $0.5 million as compared to 2003. The decrease in variable life insurance deposits is primarily due to the discontinuation of manufacturing variable life insurance products during the first quarter 2003. Variable life insurance deposits displayed above generally represent renewal deposits on existing life insurance contracts.
The following table summarizes ML of New York’s contractual obligations as of December 31, 2004:
(2) The decrease in credit related losses is primarily due to the reduction in OTT declines in the carrying value of fixed maturity securities.
ML of New York is not dependent upon any single customer, and no single customer accounted for more than 10% of its revenues during 2004, 2003, or 2002.
Operating activities provided cash of $93,000 in 2008, while cash used by operating activities was approximately $66,000 in 2007, as shown in our statements of cash flows included elsewhere in this annual report. The improvement in operating cash flow in 2008, as compared to 2007, resulted primarily from a decrease in commissions receivable and an increase in current liabilities. Commissions
In December 2007, the FASB issued SFAS No. 160, "Non-Controlling Interests in Consolidated Financial Statements an amendment of ARB No. 51" ("SFAS 160"). SFAS 160 establishes new standards for the accounting for and reporting of non-controlling interests (formerly minority interests) and for the loss of control of partially owned and consolidated subsidiaries. SFAS 160 does not change the criteria for consolidating a partially owned entity. SFAS 160 is effective for fiscal years beginning after December 15, 2008. The provisions of SFAS 160 will be applied prospectively upon adoption except for the presentation and disclosure requirements which will be applied retrospectively. The Company does not expect the adoption of SFAS 160 will have a material impact on its consolidated financial statements.
INTEREST RATE RISK is the risk that interest rates will change and cause a decrease in the value of an insurer's investments. The Company attempts to mitigate this risk by attempting to match the maturity schedule of its assets with the expected payout of its liabilities. To the extent that liabilities come due more quickly than assets mature, an insurer would have to sell assets prior to maturity and recognize a gain or loss.
million, less $1 million to be paid to a capital reserve account for the purchaser. The sale was consummated on March 29, 1996. A portion of the sale proceeds equal to the amount that Investors- NA presently had invested in Austin Centre were retained and reinvested by Investors-NA. The balance of the net proceeds of the sale were used to reduce ILCO's bank indebtedness by approximately $15 million. Following the sale of the Austin Centre, the Company and its affiliates continued to occupy three floors of the office space under a lease arrangement. The current lease, which was entered into in May, 1997, is for a five (5) year term ending in October, 2002, with options to renew for three successive five (5) year terms thereafter.
For the year ended December 31, 1999, ILCO's net income was $12,765,000 (basic earnings of $1.45 per common share, or diluted earnings of $1.45 per common share) as compared to $11,119,000 (basic earnings of $1.27 per common share, or diluted earnings of $1.25 per common share) for the year 1998 and $20,540,000 (basic earnings of $2.38 per common share, or diluted earnings of $2.35 per common share) in 1997. 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 and 1997, earnings per share have been restated to reflect the effect of the stock dividend which was paid on March 17, 1999.
As of December 31, 1999, the book value of the Company's investment assets totaled $678.8 million as compared to $702.1 million as of December 31, 1998. Total assets as of December 31, 1999 ($1.32 billion) decreased slightly from the level as of December 31, 1998 ($1.35 billion).
In order to continuously evaluate the effectiveness of the modifications and conversions made to the various systems, FIC Computer Services acquired testing software to simulate dates on or after January 1, 2000. Additionally, FIC Computer Services ran the systems through model office cycles and also conducted visual inspections of screen displays to determine whether the systems are functioning in a Y2K compliant manner.
Capitol Transamerica Corporation leases premises in the Pyare Square building located at 4610 University Avenue, Madison, Wisconsin, 53705, as follows:
Gross premiums written during 1996 were $90,939,387, compared with $70,878,492 in 1995 and $58,564,342 in 1994.
Interest and Dividend Income: Interest on fixed maturities is recorded as in- come when earned and is adjusted for any amortization of purchase premium or discount. Dividends on equity securities are recorded as income on ex-dividend dates.
as discussed in Note 1 of Notes to Consolidated Financial Statements.
. the efforts of insurers, health care providers and others to contain health care costs,
During the years ended December 31, 2000 and 1999, Triad experienced declines in revenue and volumes. Management believes the following factors have contributed to the declines in revenue during the years ended December 31, 2000 and 1999:
Act, Triad's reimbursement from the Medicare and Medicaid programs was reduced in 2000 and 1999 and will be further reduced as some reductions in reimbursement levels are phased in over the next year, although certain of the reductions will be reduced by the Refinement Act. In December 2000, Congress passed BIPA which will further offset reductions from the Balanced Budget Act, which Triad currently estimates to an additional $3-$5 million of reinbursement annually. The Balanced Budget Act has accelerated a shift, by certain Medicare beneficiaries, from traditional Medicare coverage to medical coverage that is provided under managed care plans. Triad generally receives lower payments per patient under managed care plans than under traditional indemnity insurance plans. With an increasing proportion of services being reimbursed based upon fixed payment amounts, where the payment is based upon the diagnosis, regardless of the cost incurred or level of service provided, revenues, earnings and cash flows are being significantly reduced. As part of the Balanced Budget Act, HCFA implemented outpatient PPS on August 1, 2000 which reduced reimbursement in 2000 slightly. Net patient revenues related to Medicare and Medicaid patients were 36.0% and 38.8% of total net patient revenues for the years ended December 31, 2000 and 1999, respectively. Net patient revenues related to managed care plan patients were 31.0% and 32.7% of total net patient revenues for the years ended December 31, 2000 and 1999, respectively. Net patient revenues from capitation arrangements, or prepaid health service agreements, are less than 1% of net patient revenues in each period presented. See Item I "Business -Reimbursement."
The agreements announced on December 14, 2000 relate only to conduct that was the subject of the Federal investigations resolved in the agreements, and HCA has stated publicly that it continues to discuss civil claims relating to cost reporting and physician relations with the government. These agreements with the government do not resolve various qui tam actions filed by private parties against HCA, or any pending state actions. In addition to other claims not covered by these agreements, the government also reserved its rights under these agreements to pursue any claims it may have for:
The following table sets forth selected financial data for the Trust. The selected financial data for the years ended December 31, 2016, 2015 and 2014 and at December 31, 2016 and 2015 has been derived from the Trust’s audited financial statements included elsewhere herein. The financial data for the years ended December 31, 2013 and 2012 and at December 31, 2014, 2013 and 2012 has been derived from the Trust’s audited financial statements not included herein. The following changes in net assets data, balance sheet data and other data have been prepared in conformity with accounting principles generally accepted in the United States of America. The selected financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited financial statements and related notes included elsewhere herein.
on the date on which there is an entry of a final order for termination or dissolution of the Trust or similar relief by a court of competent jurisdiction.
As a grantor trust, the Trust is not subject to U.S. federal income taxes.
There were no sales of equity securities available-for-sale for the year ended December 31, 2011.
Net income per common share basic and diluted is calculated using the weighted average number of common shares outstanding and subscribed during the year. The weighted average outstanding and subscribed common shares basic and diluted for the year ended December 31, 2012 and 2011 were 7,883,901 and 7,349,296, respectively. These weighted average shares reflect the retrospective adjustment for the impacts of the 5% stock dividend declared by the Company on January 11, 2012 and issued to holders of shares of the Company as of March 10, 2012.
The Company holds fixed maturity and equity securities that are measured and reported at fair market value on the statement of financial position. The Company determines the fair market values of its financial instruments based on the fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value, as follows:
The Company’s equity securities are included in Level 1 except for mutual funds and the preferred stocks included in Level 2 and the private placement common stocks included in Level 3. Level 1 for those equity securities classified as such is appropriate since they trade on a daily basis, are based on quoted market prices in active markets and are based upon unadjusted prices. Level 2 for the mutual funds and preferred stock is appropriate since they are not actively traded as of December 31, 2012.
The balances of and changes in the company’s credit losses related to loans from premium financing as of and for the years ended December 31, 2012 and 2011 are summarized as follows:
Family Benefit Life participates in the Servicemen Group Life Insurance Pool, administered by Prudential Life Insurance Company, in which it assumes group life insurance on a percentage based on the total in force amount of participating companies. The group plan permits conversion to permanent insurance with the initial face amount reinsured with the Office of Servicemembers Group Life Insurance.
The Company's strategy includes expanding its authorization to write premium on a direct basis and to reduce premium ceded to reinsurers. At the present, the Company generally retains the first $750,000 of each risk and reinsures the rest up to a maximum of $2.5 million per risk, pursuant to reinsurance arrangements. 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.
Commissions paid to nonaffiliates decreased from $4.7 million (22.7% of premiums earned) in 1994 to $4.1 million (24.1% of premiums earned) in 1995, a decrease of $600,000, or 12.8%, due primarily to lower commission rates and the loss of premiums from customers who did not renew with the Company. Personnel expenses increased from $13.7 million in 1994 to $17.7 million in 1995, an increase of $4.0 million or 29.2%. The increase in personnel expenses is due to staff additions in response to the volume increases in the Flood Inquire and Tracking fee based business and staff additions in the information systems departments in an effort to enhance the new systems technology. All other expenses increased from $9.1 million in 1994 to $9.2 million in 1995, an increase of $100,000 or 1.1%.
In June 1996, FASB issued Statement 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities". Statement 125 provides new accounting and reporting standards for sales, securitizations, and servicing of receivables and other financial assets, for certain secured borrowing and collateral transactions, and for extinguishments of liabilities occurring after December 31, 1996. Statement 127, "Deferral of the Effective Date of Certain Provisions of FASB Statement No. 125", was issued in December 1996. The impact of Statement 125 and Statement 127 is not expected to be material to the consolidated financial statements.
segment approach" to reporting segment information under Statement 14 is not providing the information required by financial statement users. Under Statement 131's "management approach," public companies will report financial and descriptive information about their operating segments. Operating segments are revenue-producing components of the enterprise for which separate financial information is produced internally and are subject to evaluation by the chief operating decision maker in deciding how to allocate resources to segments. In response to constituent concerns, the FASB added quantitative thresholds, similar to the Statement 14 guidelines, to determine if a segment must be reported. Statement 131 is effective for years beginning after December 15, 1997. The Company believes the information required for segment disclosure is available and compliance with Statement 131 will not be a problem.
Included in the $10.9 million for property and equipment is approximately $7.9 million (net of depreciation) for the home office building and $1.6 million for land. Depreciation for the building is primarily over 31.5 years, except for certain components which are over 15 years. The straight-line method is used.
ANNUITY POLICIES: The fair value for the annuity reserves is the amount payable on demand.
MORTGAGE NOTE PAYABLE AND NOTE PAYABLE: The carrying amount reported in the consolidated balance sheets for the mortgage note payable and note payable approximates their fair value.
QUARTERLY RESULTS. The following table sets forth consolidated results of operations for each of the Company's fiscal quarters in 1997 and 1996. This information is unaudited and has been prepared on the same basis as the audited Consolidated Financial Statements of the Company included herein and, in management's opinion, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the information for the periods presented. The operating results for any quarter are not necessarily indicative of results for any future period.
Dividends paid by domestic insurance companies out of earned surplus in any year are limited by the law of the state of domicile. See "Item 5. Market for Registrant's Common Stock and Related Stockholder Matters and Note G to the Audited Consolidated Financial Statements."
The Company leases certain office space in Bala Cynwyd, PA which serves as its headquarters location and also leases 38 field offices for its field marketing organization. Additionally, the Company leases its previous headquarters building, which it owns, in Wynnewood, PA.
The Company has produced net cash from operations of $38.0 million in 1997, $37.6 million in 1996 and $25.2 million in 1995. Management believes that the Company has adequate liquidity to pay all claims and meet all other cash needs.
Philadelphia Consolidated Holding Corp. and Subsidiaries Index to Financial Statements and Schedules
Under SAP, investments in debt securities are carried at amortized cost, while under GAAP, investments in debt securities classified as Available for Sale are carried at fair value;
(1) All periods, except for the three months ended December 31, 1997, were restated to reflect a two for one split of the Company's common stock distributed in November 1997, see Note 11.
Each quarter, the Company evaluates the prices received from third-party security pricing services to ensure that the prices represent a reasonable estimate of the fair value within the macro-economic environment, sector factors, and overall pricing trends and expectations. The Company corroborates and validates the primary pricing sources through a variety of procedures that include but are not limited to comparison to additional independent third-party pricing services or brokers, where possible; a review of third-party pricing service methodologies; back testing; and comparison of prices to actual trades for specific securities where observable data exists. In addition, the Company analyzes the primary third-party pricing service’s methodologies and related inputs and also evaluates the various types of securities in its investment portfolio to determine an appropriate fair value hierarchy. Finally, the Company also performs additional evaluations when individual prices fall outside tolerance levels for prices received from third-party pricing services.
(411 ) -7.25 % (196 ) -16.42 % (313 ) .72%
Omega One Insurance Company (property/casualty insurer), which began writing business in late 1995, has regulatory adjusted capital of $6.7 million and $5.7 million at December 31, 2003 and 2002, respectively, and a ratio of regulatory total adjusted capital to authorized control level RBC of 9.3 and 8.7 at December 31, 2003 and 2002 respectively. Accordingly, Omega One Insurance Company meets the minimum RBC requirements.
The amortized cost and aggregate fair value of debt securities at December 31, 2003, by contractual maturity, are as follows. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
On July 8, 1998, the Company acquired the outstanding common stock of Alta, which was a subsidiary of Anthem, Inc. (the Blue Cross and Blue Shield licensee for Indiana, Kentucky, Ohio, and Connecticut). The cost of the acquisition was $82.7 million. The purchase price was based on adjusted book value and was subject to further adjustments. The acquisition was accounted for as a purchase and was financed through internally generated funds. The fair value of tangible assets acquired and liabilities assumed was $379.9 million and $317.4 million, respectively. The goodwill representing the purchase price in excess of fair value of net assets acquired is included in other assets and is being amortized over 30 years on a straight-line basis.
Increased emphasis on the employee's need for retirement funds in the maturing government pension market is expected to continue the flow of deposits into the retirement accounts of existing participants. The shortage of employees in the job market has led the governments to introduce employer-matching plans, which should also increase the number of potential government employees who will be contributing to retirement plans. Current market trends are to replace the existing defined benefit plans with defined contribution plans and this is expected to provide marketing opportunities in the future.
GWL&A FINANCIAL INC. Consolidated Financial Statements for the Years Ended December 31, 2000, 1999, and 1998 and Independent Auditors' Report
================================================================================ In connection with this transaction, GWL made a capital contribution of $5,608 to the Company.
The Company’s investment portfolio includes U.S. mortgage/asset-backed securities, which comprised approximately 17% of our total investments at December 31, 2007. These securities generally have a low risk of default as they are backed by an agency of the U.S. government, which enforces standards on the mortgages before accepting them into the program. They are considered prime mortgages and the primary risk is uncertainty of the timing of pre-payments. While these securities do not carry a formal rating, they are generally considered to have a credit quality equivalent to or greater than AAA. While there have been recent market concerns regarding sub-prime mortgages, asset-backed home equity loans, commercial mortgages, and adjustable rate mortgages, the Company believes it did not have material exposure to these types of securities in its own portfolio at December 31, 2007.
1995, our original shareholders have received approximately $15.08 in cumulative dividends per share, which when measured by a total rate of return calculation has resulted in an effective annual rate of return of approximately 10.69% from the inception of the Company, based on a per share purchase price of $8.33 paid by the original shareholders, and using a book value of $36.17 per share as of December 31, 2007.
For these cycles, the long-term incentives for employees of our Primary Insurance Operations segment were comprised solely of White Mountains performance shares, with performance objectives tied to both White Mountains and OneBeacon. Accordingly, incentive compensation expense in 2004 and prior years for these operations was heavily dependent on the market price of White Mountains common shares, which rose by 41% in 2004. In the 2002-2004 performance cycle, a total of 246,325 White Mountains
performance shares were earned by employees of our Primary Insurance Operations segment based on payout levels ranging from 113% to 200% of target.
For loss and allocated loss adjustment expense reserves, excluding asbestos and environmental, the key assumption as of December 31, 2006 was that the impact of the various reserving factors, as described below, on future paid losses would be similar to the impact of those factors on the historical loss data with the following exceptions:
Selling, general and administrative expense increased by $2,894,000 to $13,473,000 for the year ended December 31, 1999. Without taking into consideration the Primrose acquisition, selling, general and administrative expense increased by $1,515,000 for the year ended December 31, 1999, as compared to the year ended December 31, 1998. The increase was primarily due to the seasonal products segment increasing its staff to accommodate growth and the development of new products.
2001 $ 108 2002 108 2003 59 ----- Total minimum lease payments 275 Amounts representing interest (27) ----- Present value of minimum lease payments $ 248 =====
For the purpose of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options' vesting period. The Company's pro forma information follows:
IGF owns a 5,624 square foot building in Lubbock, Texas with 800 square feet being leased to a third party.
Life premiums were up $4.6 million or 55% in 1999, to $13.0 million. The increase is primarily the result of renewal premiums from Midwestern Life's traditional life block of $3.5 million and first year premiums of existing traditional life products of $.8 million.
BENEFITS AND CLAIMS include i) paid life insurance claims, ii) benefits from annuity policies that incorporate significant mortality features, iii) changes in future policy reserves and iv) Medicare supplement benefits in the 1998 period. Throughout the Company's history, it has experienced both periods of higher and lower benefit claims. Such volatility is not uncommon in the life insurance industry and, over extended periods of time, periods of higher claim experience tend to offset periods of lower claim experience.
FEES FROM SEPARATE ACCOUNTS fluctuate in relationship to total separate account assets and the fees earned on such assets.
The net yield was 4.06%, 4.74% and 4.99% for 1999, 1998 and 1997, respectively.
In 2000, Savers purchased the building in Cerritos, California for $2.0 million, in which one of the Company’s subsidiaries has its operations.
Significant periods of time can elapse between the occurrence of an insured loss, the reporting of the loss to the insurer, and the insurer’s payment of that loss. To recognize liabilities for unpaid loss and loss adjustment expenses (“LAE”), insurers establish reserves as balance sheet liabilities representing estimates of amounts needed to pay reported and unreported net losses and LAE As of December 31, 2003, the Company had accrued $339.5 million of gross loss and LAE reserves compared with $374.9 million at December 31, 2002.
At December 31, 2003, the Company had fifty-six securities that were in an unrealized loss position deemed to be temporary. These investments all had unrealized losses of less than 10%. Two investments have been in an unrealized loss position for more than one year, one of which, with a $71,000 unrealized loss, has been in an unrealized loss position for greater than 18 months. Positive evidence considered in reaching the Company’s conclusion that the investments in an unrealized loss position are not other than temporarily impaired consisted of: 1) there were no specific events which caused concerns; 2) there were no past due interest payments; 3) there has been a rise in market prices; 4) the Company’s ability and intent to retain the investment for a sufficient amount of time to allow an anticipated recovery in value; and 5) the Company also determined that the changes in market value were considered normal in relation to overall fluctuations in interest rates.
On September 17, 2002, the Company’s Board of Directors authorized management to repurchase up to 1,000,000 shares of the Company’s common stock in market transactions for a period not to exceed twenty-four months. On August 6, 2003, the Company’s Board of Directors authorized management to repurchase up
The overall operating ratio on Savers in 2003 was 101%, an improvement from the overall operating ratio for 2002 of 105%. The Two-Year Overall Operating Ratio was 103%, just above the usual range. Incurred large loss activity on the workers’ compensation, commercial multiple peril and commercial auto liability lines of business contributed to the high two-year operating ratio.
approximating net book value. As a result of this agreement, exposures in excess of collateral amounts and related allowances have been reduced by $1.3 million and $600,000, respectively.
See list of Financial Statement Schedules on page 45 and Note 19 on page 76 of the Notes to the Consolidated Financial Statements.
Further, the Company's analysis of the recoverability of advance commission receivables is also based on the assumption that the associate does not write any new Memberships. The Company believes that this assessment methodology is highly conservative since its actual experience is that many associates do continue to sell new Memberships and the Company, through its chargeback rights, gains an additional source to recover advance commission receivables.
Accounting Standard to be Adopted Statement of Financial Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging Activities," ("SFAS 133") was issued in June 1998. This Statement establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts, (collectively referred to as derivatives) and for hedging activities. In June 2000, the FASB issued SFAS No. 138, which amends certain provisions of SFAS 133 to clarify four areas causing difficulties in implementation. The amendment included expanding the normal purchase and sale exemption for supply contracts, permitting the offsetting of certain foreign currency derivatives and thus reducing the number of third party derivatives, permitting hedge fund accounting for foreign currency denominated assets and liabilities, and redefining interest rate risk to reduce sources of ineffectiveness. SFAS 133, as amended, applies to all entities and is effective for all fiscal quarters of fiscal years beginning after June 15, 2000. The Company adopted SFAS 133, as amended, on January 1, 2001 as required. The Company did not hold any derivative instruments at January 1, 2001 and there was no effect on the consolidated financial statements upon the adoption of SFAS 133.
Membership Retention Yearly End of Year Average Year Retention Members Members ---- --------- ------- ------- 0 100.00% 100.00 1 53.37% 53.37 76.69 2 69.27% 36.97 45.17 3 77.52% 28.66 32.82 4 82.34% 23.60 26.13 5 84.96% 20.05 21.83 6 86.68% 17.38 18.72 7 88.32% 15.35 16.37 8 89.51% 13.74 14.55 9 90.54% 12.44 13.09 10 91.32% 11.36 11.90 11 91.90% 10.44 10.90 12 92.72% 9.68 10.06 13 93.18% 9.02 9.35 14 93.24% 8.41 8.72 15 93.10% 7.83 8.12 16 92.46% 7.24 7.54 17 93.37% 6.76 7.00 18 93.49% 6.32 6.54 19 95.41% 6.03 6.18 20 95.19% 5.74 5.89
General Consolidated net cash provided by operating activities was $22.0 million, $17.6 million and $10.9 million for 2000, 1999, and 1998, respectively. Cash provided by operating activities increased $4.4 million during 2000 compared to 1999 primarily due to the $4.7 million increase in net income.
The Company adopted the provisions of ASU 2015-02 on January 1, 2016 using a modified retrospective approach. The adoption had no effect on the Company's financial condition or results of operations, but impacted disclosures only. Investments in limited partnerships previously accounted for as VOEs became VIEs under the new guidance as the limited partners do not hold substantive kick-out rights or participating rights. See "Variable Interest Entities" section of the Investments Note to these Consolidated Financial Statements for additional information.
The provisions of ASU 2016-15 are effective retrospectively for fiscal years beginning after December 15, 2017, including interim periods, with early adoption permitted. The Company does not currently expect the adoption of this guidance to have a material impact on the Company's financial condition, results of operations, or cash flows; however, finalization of implementation efforts will continue into the first quarter of 2018.
Available-for-sale and FVO fixed maturities and equity securities were as follows as of December 31, 2016:
All of the Company's expenses for leased and subleased office properties are paid for by an affiliate and allocated back to the Company, as all remaining operating leases were executed by Voya Services Company as of December 31, 2008, which resulted
(1) Includes the fair value of loaned securities of $799 and $548 as of December 31, 2017 and 2016, respectively. In addition, as of December 31, 2017 and 2016, the Company delivered securities as collateral of $161 and $220, respectively. Loaned securities and securities delivered as collateral are included in Securities pledged on the Consolidated Balance Sheets.
Intercompany agreements with each of VIAC, VIPS, ReliaStar Life Insurance Company and Security Life of Denver Insurance Company (individually, the "Contracting Party") pursuant to which DSL agreed, effective January 1, 2010, to pay the Contracting Party, on a monthly basis, a portion of the revenues DSL earns as investment adviser to certain U.S. registered investment companies that are either investment option under certain variable insurance products of the
Benefits and Expenses Policyholders' benefits increased by $19.3 million from $67.6 million in 2003 to $86.9 million in 2004. Although claims paid under our minimum death benefit guarantees declined by $11.9 million as a result of improved equity markets, we increased our reserve for guaranteed minimum death and living benefits by $18.5 million as required under SOP 03-01. In addition, policyholder's benefits increased due to an increase in reserves for payout annuity contracts with life contingency as a result of increased premiums as well as an increase in costs incurred relating to reinsurance transactions.
Net investment income for this segment of business has been gradually increasing the past two years due to the increased new business activity described above and a higher level of investments needed to support this growth in policy obligations. The increase in net investment income has been partially muted by lower investment yields attained from debt security investment purchases during this timeframe. Net investment income also includes the gains and losses on index options purchased to back the index crediting mechanism on fixed -index universal life products. A detail of net investment income for domestic life insurance operations is provided below.
The Company’s design of its fixed-indexed products incorporates a budget for the purchase of over-the-counter call options to fund the index credits due to policyholders. Management monitors current prices of these call options and manages the cost of purchases through the terms of the policy contracts. These terms permit the Company to change caps, participation rates, and asset fees, subject to guaranteed minimums, thus managing the cost of the call options quoted by counterparties. In addition, the Company's product terms allow for the Company to withdraw from offering a particular index option at any time effective on the next policy anniversary date.
The Company occupies office space totaling approximately 10,850 square feet in Spokane, Washington, pursuant to a lease dated October 2, 2000, which expires in 2004. The lease may be extended an additional five years with 120 days advance notice to the landlord. Current monthly rent approximates $4,200 per month, with increases specified in the lease. If the lease option to extend is chosen, the lease payments will increase pursuant to the lease terms.
Other income also included $1.6 million of unrealized losses on certain foreign currency contracts during the year ended December 31, 2000. The Company enters into forward foreign exchange contracts and foreign currency option contracts to offset certain operational exposures from changes in foreign currency exchange rates. These foreign exchange contracts and options are entered into to support normal recurring purchases, and accordingly are not entered into for speculative purposes. Forward foreign exchange contracts are utilized to manage the risk associated with currency fluctuations on certain purchase expectations. Certain of these contracts do not qualify for hedge accounting and therefore unrealized gains and losses related to these contracts are recorded in other income/expense.
The Company has recorded an income tax provision of approximately $5.2 million for the year ended December 31, 2001 in comparison to $5.8 million for the comparable period in 2000. The income tax provision has been recorded based upon the estimated annual effective income tax rate applied to the pre-tax income.
Consolidated Balance Sheets as of December 31, 1999 and 1998..... 27
Investment securities - Fair values are based on quoted market prices.
acquisitions at Madison Life of $.9 million and an increase due to all other lines of business of $1.9 million, offset by a decrease in yields on investable assets of $2.2 million. Income tax expense increased $1.3 million to $3.4 million in 1998 from $2.1 million in 1997 reflecting a higher effective income tax rate in 1998, principally due to reduced benefits associated with the utilization of the Company's remaining tax loss carryforwards (see Capital Resources).
Amortization of deferred policy acquisition costs and general and administrative expenses for the Insurance Group increased $1.7 million. Madison Life's expenses increased $4.5 million and Standard Life's expenses decreased $2.8 million. The increase at Madison Life is primarily due to an increase in other general expenses of $3.4 million related to the MGU; an increase in commissions of $.6 million related to the acquisition of new blocks of business in 1997 and 1998; a $.2 million increase in premium taxes; and $.3 million increase in other expenses related to the increase in business. The decrease at Standard Life is primarily due to a reduction in net commission expense of $1.7 million attributable to the increase in expense allowances received from reinsurers on its HMO and special disability lines
fair market value) or as available-for-sale (carried at fair market value); the Company has chosen to carry all of its debt securities as available-for-sale. The Company experienced a change in unrealized gains of $.8 million, net of deferred taxes of $.4 million and net of deferred policy acquisition costs of $.6 million in total stockholders' equity, reflecting unrealized gains of $2.6 million at December 31, 1998 versus unrealized gains of $1.9 million at December 31, 1997. From time to time, as warranted, the Company employs investment strategies to mitigate interest rate and other market exposures.
The results of 1998 reflect a higher effective tax rate than in 1997 due to reduced benefits associated with the utilization of net operating loss carryforwards. As previously reported, the Company expects that its future results will reflect a higher effective tax rate. DISTRIBUTION OF ZIMMERMAN
Liabilities reflected for this balance sheet caption are as follows (in millions):
General and administrative expenses increased $1,838,000 in 2009 compared to the same period last year. The single most significant factor contributing to the increase in general expenses was an increase in director’s non-qualified deferred compensation at the holding company level. The phantom stock plan increased in value with the recovery in our stock price and led to an increase in expenses. We also incurred increased legal fees in the holding company in 2009.
Investment returns with respect to the investment portfolio for the years ended December 31, 2009 and 2008 follows:
3 Future life insurance obligations consist primarily of estimated future contingent benefit payments and surrender benefits on policies inforce at December 31, 2009. These estimated payments are computed using assumptions for future mortality, morbidity and persistency. In contrast to this table, the majority of NSIC’s obligations is recorded on the balance sheet at the current account values and do not incorporate an expectation of future market growth, interest crediting or future deposits. Therefore, the estimated future life insurance obligations presented in this table significantly exceed the liabilities recorded in the Company’s consolidated balance sheet. Due to the significance of the assumptions used, the actual amount and timing of such payments may differ significantly from the estimated amounts. Management believes that current assets, future premiums and investment income will be sufficient to fund all future life insurance obligations.
Property and casualty loss reserves are maintained to cover the estimated unpaid liability for losses and loss adjustment expenses with respect to reported and unreported incurred claims. Loss reserves are an estimation based on actuarial projection techniques common in the insurance industry. Reserves are management’s expectations of what the settlement and administration of claims will cost. Management estimated reserves are based on historical settlement patterns, estimated salvage and subrogation, and an appraisal of the related facts and circumstances. Management’s reserve estimates are reviewed by consulting actuaries to determine their adequacy and reasonableness. The reserve analysis performed by management is reviewed by the actuaries during the third quarter each year with a final comprehensive review and actuarial sign off performed at year-end.
For 2009, gross gains of $1,102,000 ($2,070,000 for 2008) and gross losses of $319,000 ($611,000 for 2008) were realized on sales of available-for-sale-securities.
In 2009, dividends of $2.8 million were paid to the Registrant by its subsidiaries. No dividends were
On January 14, 2016, we completed the acquisition of the Chubb Corporation (Chubb Corp). The results of operations of Chubb Corp are included in our results from the acquisition date forward (i.e., after January 14, 2016 and only in the 2016 column) within the table below. Refer to Note 2 to the Consolidated Financial Statements for additional information on the acquisition.
The large corporate account property and casualty (P&C) insurance business of Itaú Seguros (Itaú Seguros) (October 31, 2014); and
In 2017, the expected retiree healthcare harmonization benefit of $100 million will be recognized in losses and loss expense (approximately $25 million) and administrative expenses (approximately $75 million), thereby benefiting both underwriting income and the combined ratio.
With respect to IBNR reserves and those claims that have been incurred but not reported prior to the balance sheet date, there is, by definition, limited actual information to form the case reserve estimate and reliance is placed upon historical loss experience and actuarial methods to estimate the ultimate loss obligations and the corresponding amount of IBNR. IBNR reserve estimates are generally calculated by first projecting the ultimate amount of losses for a product line and subtracting paid losses and case reserves for reported claims. The judgments involved in projecting the ultimate losses may pertain to the use and interpretation of various standard actuarial reserving methods that place reliance on the extrapolation of actual historical data, loss development patterns, industry data, and other benchmarks as appropriate. The estimate of the required IBNR reserve also requires judgment by actuaries and management to reflect the impact of more contemporary and subjective factors, both qualitative and quantitative. Among some of these factors that might be considered are changes in business mix or volume, changes in ceded reinsurance structures, changes in claims handling practices, reported and projected loss trends, inflation, the legal environment, and the terms and conditions of the contracts sold to our insured parties.
The following table summarizes reinsurance recoverables and the provision for uncollectible reinsurance for each type of recoverable balance at December 31, 2016:
Throughout this report (including portions incorporated by reference herein), we present our operations in the way we believe will be most meaningful, useful and transparent to anyone using this financial information to evaluate our performance. In addition to the GAAP presentation of net income and certain statutory reporting information, we show certain non-GAAP financial measures that are valuable in managing our business, including underwriting income, gross premiums written, net written premiums and combined ratios. A detailed discussion of these measures can be found on pages 2 through 3 of the 2006 Financial Report to Shareholders, attached as Exhibit 13 and incorporated by reference herein.
The financial markets began experiencing stress during the second half of 2007 which significantly increased during 2008 and on into 2009. The volatility and disruption in the financial markets has caused the availability and cost of credit to be materially affected. Combined with volatile oil prices, depressed home prices, increasing foreclosures, falling equity market values, declining business and consumer confidence, and higher unemployment, these factors have precipitated a severe recession. The combination of economic conditions began to negatively impact our sales in 2008, particularly in the international markets, and may continue to adversely impact the demand for our products in the future. We also may experience a higher incidence of claims, lapses or surrenders of policies.
During the second quarter of 2007, upon the completion of a detailed review of the deferred tax items, the Company identified a $2.3 million error in the net deferred tax liability. The error, which occurred during various periods prior to 2005, was corrected in the second quarter of 2007 and resulted in a decrease in the net deferred tax liability and deferred tax expense. The adjustment was not material to 2007 or any prior period financial statements.
Holdings in below investment grade securities by category as of December 31, 2008 are summarized below, including 2008 and 2007 fair values for comparison. The Company is continually monitoring developments in these industries that may affect security valuation issues.
(a) Represents the fair value of certain product-related embedded derivatives that were recorded at fair value.
The Company held net investments in mortgage loans totaling $90.7 million and $99.0 million at December 31, 2008 and 2007, respectively. The diversification of the portfolio by geographic region and by property type was as follows: