felanders/preprocessed huggingface dataset:
General and administrative expenses were $1,476,277 in 1999, $1,515,840 in 1998 and $1,696,235 in 1997. The decrease in general and administrative expenses is due primarily to the decrease in bad debt expense.
Management believes that the reserves for losses and loss adjustment expenses at December 31, 1999 are adequate to cover the unpaid portion of the ultimate net cost of losses and loss adjustment expenses, including losses incurred but not reported. Reserves for losses and loss adjustment expenses are estimates at any given point in time of what the Company may have to pay ultimately on incurred losses, including related settlement costs based on facts and circumstances then known. The Company also reviews its claims reporting patterns, past loss experience, risk factors and current trends and considers their effect in the determination of estimates of incurred but not reported reserves. Ultimate losses and loss adjustment expenses are affected by many factors which are difficult to predict, such as claim severity and frequency, inflation levels and unexpected and unfavorable judicial rulings. Reserves for surety claims also consider the amount of collateral held as well as the financial strength of the principal and its indemnitors.
accounting principles ("GAAP") were 17.6%,19.6 and 28.8% for the years ended December 31, 1999, 1998 and 1997, respectively. These loss ratios are below industry averages and are believed to be the result of conservative underwriting. The decrease in the loss ratios is due to the release of surety reserves in 1999 and 1998. There can be no assurance that such loss ratios can continue. The Company's insurance subsidiaries' expense ratios under GAAP were 56.6%, 51.8% and 48.0% for the years ended December 31, 1999, 1998 and 1997, respectively. The increase in the expense ratios is due to the decline in premiums. The Company's insurance subsidiaries' combined ratios under GAAP were 74.2%, 71.4% and 76.8% for the years ended December 31, 1999, 1998 and 1997, respectively. The increase in the 1999 combined ratio results primarily from the decline in premiums.
The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto in the Company's 1999 Annual Report.
See Note 9 to the Consolidated Financial Statements in the Annual Report for a description of the long-term debt and aggregate maturities for 2000 to 2004 and thereafter.
The combined ratio for American Southern decreased from 97.8% in 2000 to a combined ratio of 94.8% in 2001. The loss ratio decreased from 70.4% in 2000 to 66.8% in 2001. American Southern released approximately $1.4 million of redundant reserves related to certain program business that favorably impacted the loss ratio for 2001. The increase in the expense ratio for 2001 to 28.0% from 27.4% in 2000 is a function of American Southern’s contractual arrangements that compensate the company’s agents in relation to the loss ratios of the business they write.
rates on renewal business, in some cases up to 30%. Association Casualty also increased business writings for general liability, property, automobile, and other commercial coverage to compliment its existing book of business
The increase in ceded premiums of $11.8 million during 2001 was the result of a 40% quota share reinsurance agreement that the company put into place in 2001. This reinsurance contract was terminated on December 31, 2002.
The following summarizes, for the periods indicated, Bankers Fidelity’s premiums and operating expenses (dollars in thousands):
Net periodic pension cost for American Southern’s qualified and non-qualified defined benefit plans for the years ended December 31, 2002, 2001, and 2000 included the following components:
The amount of statutory net income and surplus (shareholders’ equity) for the Company’s insurance subsidiaries for the years ended December 31 were as follows:
In 1998, American Southern formed the American Auto Insurance Agency (the “Agency”) in a joint venture with the AAA of Carolinas motor club to market personal automobile insurance to the members of the automobile club. American Southern holds a 50% interest in the joint venture and underwrites the majority of the standard automobile business written by the Agency. This program, which began writing business in 1999, had gross written premiums of approximately $7,083, $6,084 and $7,200 in 2002, 2001, and 2000, respectively.
are from external sources. One account at American Southern, with the State of South Carolina, accounted for approximately $14,309, $14,054, and $17,198 of total revenue in 2002, 2001 and 2000, respectively.
The fair value estimates as of December 31, 2002 and 2001 are based on pertinent information available to management as of the respective dates. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, current estimates of fair value may differ significantly from amounts that might ultimately be realized.
Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company's control and many of which are subject to change. These uncertainties and contingencies could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. Whether or not actual results differ materially from forward-looking statements may depend on numerous foreseeable and unforeseeable developments. Some may be national in scope, such as general economic conditions, changes in tax law and changes in interest rates. Some may be related to the insurance industry generally, such as pricing competition, regulatory developments and industry consolidation. Others may relate to the Company specifically, such as credit, volatility and other risks associated with the Company's investment portfolio. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. If the Company's assumptions and estimates are incorrect or do not come to fruition, or if the Company does not achieve all of these key factors, then the Company's actual performance could vary materially from the forward-looking statements made herein. The Company disclaims any obligation to update forward-looking information.
basis of each company's premium income. Expenditures allocated to the Company amounted to $2,779,136 in 1998,$2,467,408 in 1997, $2,469,691 in 1996. At December 31, 1998 and 1997, the Company owed Cotton States Mutual $823,293 and $1,064,682, respectively.
Book value per common share diluted as of December 31, 2011 was $2.03.
This line of business is primarily comprised of Atlas’ surety business, which is 100% reinsured.
of its net operation losses in the U.S. which are subject to a yearly limitation. The uncertainty over the Company’s ability to utilize a portion of these losses over the short term has led to the recording of a valuation allowance.
Table 19 Net increase in prior years’ incurred claims estimates by line of business and accident year
When considering the extent of the valuation allowance on Atlas' deferred tax asset, the weight given by management to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. GAAP states that a cumulative loss in recent years is a significant piece of negative evidence that is difficult to overcome in determining that a valuation allowance is not needed against deferred tax assets. However, the strength and trend of earnings, as well as other relevant factors are considered.
Presentation of equity and cash flows: Ordinary and restricted voting common shares are reflected as par value amounts with any remaining consideration upon issuance recorded in additional paid in capital. In 2010, the Company reported the total consideration within the common share equity amounts in the consolidated statement of financial position. The Company has adjusted the prior period common share and additional paid in capital amounts to conform to the presentation in 2011.
Gross premiums written and ceded premiums, losses and commissions as of and for the year ended December 31 are as follows:
During 2010, dividends of $16,700 were paid to KAI by the insurance subsidiaries of Atlas.
The Company's administrative offices are occupied pursuant to a lease, from an unaffiliated company, in a building located at 123 William Street, New York, New York. The lease, which expires on May 14, 2000, is an obligation of NMC. None of the Somerset Companies own any real or material personal property. Each of the Somerset Companies has various noncancellable operating leases for its office facilities, which expire at various dates through May 2000.
Operating cash flow has been used primarily to acquire additional investment assets with net purchases during 1995, 1994 and 1993 of $12.8 million, $11.2 million and $25.2 million, respectively.
Management considers the potential impact of these economic trends in estimating Navigators' loss reserves. Management believes that the underwriting controls it maintains, plus the fact that the majority of Navigators' business is in lines of insurance which have relatively short loss payout patterns, both assist in estimating more accurately ultimate claim costs and lessen the potential adverse impact of the economy on Navigators.
- Available-for-Sale Securities--Debt and equity securities not classified as either held-to-maturity securities or trading securities; reported at fair value, with unrealized gains and losses excluded from earnings and reported as a separate component of shareholders' equity.
In January, 1998, CICA introduced a new line of international products known as the Millennia 2000 series; however, in 1998 and 1999, CICA's international sales were hampered due to the contraction of several Latin American economies, as well as competition from new local companies, many of whom are subsidiaries of large U.S. insurers. Management believes the products are desirable and competitive and expects future sale of the Millennia products to increase.
An actuarial review and projection was performed for us by our independent actuary as of December 31, 2019. We review the actuarial estimates throughout the year for the possible impact on our financial position.
The impact of inflation on the insurance industry differs significantly from that of other industries where large portions of total resources are invested in fixed assets, such as property, plant and equipment. Assets and liabilities of insurance companies, like other financial institutions, are virtually all monetary in nature, and therefore are primarily impacted by interest rates rather than changing prices. While the general level of inflation underlies most interest rates, interest rates react more to changes in the expected rate of inflation and to changes in monetary and fiscal policy. Therefore, we do not believe that inflation has materially impacted our results of operations.
Pursuant to its reinsurance agreements, AMIC Ltd. is required to provide its ceding companies with collateral to secure its obligations to them. At December 31, 2019 and 2018, AMIC Ltd. has provided C&F with a Section 114 Trust, held by Comerica Bank, with restricted cash and cash equivalents and investments with a carrying value of $20,940,689 and $18,247,384, respectively.
will fall within the level of the hierarchy based on the input that is significant to determining such measurement. The three levels are defined as follows:
The Insurance Brokerage Companies derive their revenue principally from commissions associated with the placement of insurance coverage for corporate clients. These commissions are paid by the insurance carriers and are usually a fixed percentage of the total premiums. Certain of these commissions are contingent upon the level of volume and profitability of the related coverage to the insurance companies. There is normally a lag between receipt of funds from the insured and payment to the insurance company. Investment of these funds over this period generates additional revenue in the form of interest income.
Amortization of intangibles increased $416,000 to $1,095,000 in 1999 compared with $679,000 in 1998 due to amortization of acquisition related intangibles on 1998 and 1999 acquisitions.
The Company has calculated risk-based capital and the result is that the statutory net worth of OLRI is adequate in light of the current requirements.
The Company has minimized its investment risk by investing in a mix of cash equivalents; high quality tax exempt municipal bonds; U.S. Government and government agency securities and corporate bonds rated A or better by an accredited rating agency with an average duration of approximately four years; and equity securities. The Company currently intends to continue this investment strategy.
The following represents a summary of the Company’s contractual commitments and related scheduled maturities as of December 31, 2019:
On January 1, 2019, the Company adopted ASU No. 2016-02, (FASB ASC Topic 842), Leases, which amends existing guidance to require lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements.
The Company adopted the standard using a modified retrospective transition with no adjustment to its comparative periods in the year of transition. The Company elected the practical expedients, which allow the Company not to reassess prior conclusions with respect to lease identification, lease classification and initial direct costs under FASB ASC Topic 842. The Company did not elect the hindsight practical expedient to determine the lease term or in assessing the likelihood that a lease purchase option will be exercised. In addition, the Company elected the short-term lease recognition. Leases with an initial term of 12 months or less are not recorded on the consolidated balance sheet.
The Company’s subsidiaries in Hong Kong are governed by the Inland Revenue Ordinance Tax Law of Hong Kong and are generally subject to a profit tax at the rate of 16.5% on the estimated assessable profits. As of December 31, 2019 and 2018, the Company had current tax payable of $56,993 and $51,032 for Hong Kong income tax.
The Company organizes and manages its business as three operating segments by operating geographic areas. The business of WFOE, CU Hong Kong and the CAE in PRC was managed and reviewed as PRC segment. The business of AHFL and its subsidiaries in Taiwan was managed and reviewed as Taiwan segment. The business of PFAL was managed and reviewed as Hong Kong segment. PRC and Taiwan segments retain majority of reported consolidated amounts.
This report reviews the Company’s financial condition and results of operations. Historical information is presented and discussed. Where appropriate, factors that may affect future financial performance are also identified and discussed. Certain statements made in this report include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include any statement that may predict, forecast, indicate or imply future results, performance or achievements instead of historical facts, and may contain words like “believe,” “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “plan,” “will,” “shall,” “may,” and other words, phrases or expressions with similar meaning. Forward-looking statements involve risks and uncertainties which may cause actual results to differ materially from the results contained in the forward-looking statements, and the Company cannot give assurances that such statements will prove to be correct. Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements as a prediction of actual results.
The Annuities segment’s 2003 pretax loss decreased $0.3 million primarily due to a decrease in the amortization of deferred policy acquisition costs based on a more precise method in 2003 of allocating these costs. The Annuities segment’s future results may be negatively affected by a slow economy. Volatile equity markets could negatively affect sales of variable annuities and the fees the segment assesses on variable annuity contracts. Lower interest rates have negatively affected sales of fixed annuities. In this segment, equity market volatility may create uncertainty regarding the level of future profitability in the variable annuity business and the related rate of amortization of deferred policy acquisition cost. Since January 2003, the Company no longer markets variable annuity products.
Net Income ---------------------------------------- Year Ended Percentage December 31 Amount Increase/(Decrease) ----------- ------ -------------------
CASH FLOWS FROM FINANCING ACTIVITIES Dividends to share owners....................................................... (12,050,000) (14,750,000) (12,900,000) Capital contribution............................................................ 0 70,000,000 0 Investment product deposits and change in universal life deposits............... 23,487,618 69,229,610 56,941,071 Investment product withdrawals.................................................. (9,479,575) (49,012,219) (34,810,896) ------------- ------------- -------------- Net cash provided by financing activities....................................... 1,958,043 75,467,391 9,230,175 ------------- ------------- --------------
At December 31, 2003, the average mortgage loan was $0.3 million, and the weighted average interest rate was 8.2%. The largest single mortgage loan was $1.0 million.
Because the Company is primarily an insurer of motor vehicles, it has limited exposure for environmental, product and general liability claims. The Company has established reserves for these exposures, in amounts which it believes to be adequate based on information currently known by it. The Company does not believe that these claims will have a material impact on the Company's liquidity, results of operation, cash flows or financial condition.
The following note is hereby added to Item 8 of the Company's 1996 Annual Report on Form 10-K, supplementing the Notes to the Consolidated Financial Statements which are incorporated by reference therein:
Cash dividends per common share are an integral part of the value created for shareholders. The Company declared quarterly cash dividends of $0.20 per common share and common share equivalent in each of the four quarters of 2009. On February 17, 2010, The Company announced that its Board of Directors had increased the Company’s annual dividend by 10% from $0.80 to $0.88 per common share and common share equivalent for which each outstanding warrant is exercisable. On February 17, 2010, the Company announced a quarterly cash dividend of $0.22 per each common share and $0.22 per common share equivalent for which each outstanding warrant is then exercisable, payable on March 31, 2010 to holders of record on March 15, 2010.
The Company’s reserving methodology was not changed materially in the year ended December 31, 2009 from the methodology used in the year ended December 31, 2008 for either Validus Re or Talbot. Management’s best estimate of the gross reserve for losses and loss expenses and loss reserves recoverable at December 31, 2009 were $1,622.1 million and $181.8 million, respectively. The following table sets forth a breakdown between gross case reserves and gross IBNR by business segment at December 31, 2009.
Capital Account by retrocession or any other means to the extent necessary to permit the Subsidiary Capital Account to meet its pro rata share of the Company's required capital and surplus.
In the following pages, we take a look at the 2003, 2002 and 2001 operating results for items in our Consolidated Statement of Operations and also explain key balance sheet accounts in greater detail.
At December 31, 2003, the liability for unpaid claim and claim settlement expenses totaled $150.0 million and reinsurance recoverables on unpaid claim and claim settlement expenses totaled $71.5 million, resulting in net reserves totaling $78.6 million. The net reserve at December 31, 2002 totaled $89.4 million and included the liability for unpaid claim and claim settlement expenses totaling $181.3 million net of reinsurance recoverables on unpaid claim and claim settlement expenses of $91.8 million.
Consolidation - Our consolidated financial statements include the accounts of RTW and ACIC. We eliminate all inter-company accounts and transactions in consolidation.
During 2003, the Company re-evaluated and lowered its estimate for excess of loss unpaid claim and claim settlement expenses by $15.1 million, which inures to the benefit of our reinsurers. Excluding the effect of this benefit, our ceded losses to reinsurers would have been $8.8 million.
In March 2000, we borrowed $8.0 million under a term loan agreement to fund the repurchase of common stock from certain of our shareholders. We paid $1.0 million in principal on the term loan in 2000, an additional $2.5 million in 2001, $3.3 million in 2002 and the remaining $1.2 million in 2003. We paid interest at an adjusted LIBOR rate on the term loan (adjusted LIBOR was 4.66% at December 31, 2002). The term loan was paid in full in September 2003.
The following represent pre-tax adjustments recorded during each quarter of 2003 that affected reported net income:
After giving effect to changes in unearned premiums, net premiums earned increased 5.0% to $61.7 million for 1997 from $58.7 for 1996. Net premiums earned from all trucking-related insurance products, including small fleet trucking, decreased by $5.3 million (13.7%). Premiums earned from voluntary reinsurance assumed decreased by $.6 million. The above decreases were offset by a $7.9 million increase in nonstandard private passenger automobile premium during 1997.
Consolidated realized net capital gains were $6.9 million in 1996 compared to $6.2 million for 1995. The current year net gain consisted of gains on equity securities and fixed maturities of $6.5 million and $.4 million, respectively.
Management believes that the disclosures required by Statement No. 130 are unnecessary in that all components of such disclosures are currently available in the Company's financial statements. Management also believes that the new disclosures may serve to confuse shareholders and other readers regarding the Company's future earnings and cash flows. The disclosures required by Statement No. 130 should be viewed by the reader with the understanding that there are many factors that might affect the future realizable value of items of other comprehensive income which are beyond management's control. As such, there can be no assurance that amounts recorded as unrealized gains or losses will ever result in a realized transaction.
Realized investment gains and losses for the years ended December 31, 1995, 1994 and 1993 are summarized as follows:
The Registrant files a consolidated federal income tax return. The Registrant had available a capital loss carryforward of approximately $404,000 as of January 1, 1994, which resulted from former activities of JBR. The loss carryforward is less than the annual limitation prescribed by the Internal Revenue Code and was fully utilized during 1994.
William B. O'Connell is the Vice Chairman of the Registrant, The First Reinsurance Company of Hartford and First Re Management Company, Inc. Mr. O'Connell also serves as a member of the board of directors of Fairfield Savings Bank, F.S.B. in Long Grove, Illinois. For two years prior to his retirement in November, 1989, Mr. O'Connell served as Chairman of the Board of Directors of Advance America Funds, Inc., Asset Management Fund for Savings Institutions, Inc., USL Management Services, Inc., U.S. League Investment Services, Inc., U.S. League Securities, Inc., U.S. League Government Securities, Inc., U.S. League Assets Management, Inc., U.S. League Trust Company and U.S. League Administrative Services, Inc. For nine years prior thereto, Mr. O'Connell served as President and Chief Executive Officer of the United States League of Savings Institutions ("U.S. League").
DANIEL S. KONAR Assistant Vice President since 1991; Controller and Assistant Treasurer since 1990
The following table sets forth certain information regarding options to purchase shares of Common Stock granted to the executive officers of the Registrant named in the Summary Compensation Table during the Registrant's 1995 fiscal year:
The following table sets forth certain information regarding the number and value of unexercised options to purchase shares of Common Stock held at the end of the Registrant's 1995 fiscal year by the executive officers of the Registrant named in the Summary Compensation Table. No options were exercised by such persons during the Registrant's 1995 fiscal year.
The Employment Agreements give John A. Dore, Robert E. Wendt and Lonnie L. Steffen (collectively, the "Executives") certain rights upon the termination of employment, including a termination following specified structural changes or a change-in-control of the Registrant.
Net income for the year ended December 31, 1996 increased 24.2% to $56.5 million from $45.5 million for the same period of 1995. On a per share basis, basic and diluted net income increased to $3.61 and $3.54, respectively, for the year ended December 31, 1996 from $3.08 and $3.05, respectively, for the same period of 1996, or 17.2% and 16.1%, respectively. In addition, net operating income (net income excluding realized gains and losses) increased 21.3% to $55.3 million for the year ended December 31, 1996 from $45.6 million for the same period in 1995. On a per share basis, basic and diluted net operating income increased to $3.53 and $3.47, respectively, for the year ended December 31, 1996 from $3.09 and $3.06, respectively, for the same period of 1995, or 14.2% and 13.4%, respectively. Growth in net premiums earned to $92.4 million from $60.1 million, or 53.7%, was the principal cause of the increase in net income. Growth in net premiums earned is a result of the Corporation's successful diversification into the mortgage, trade credit and other specialty reinsurance lines of business.
A reconciliation from the tax provision calculated at the federal statutory rate of 35% in 1997, 1996 and 1995, to the total tax is as follows:
Our expenses for the periods indicated are summarized in the table below:
● Other expenses increased related to stock and legal fee increases of approximately $520,000 due to our reverse stock split and the formation of the Seneca Re captive in Vermont; audit and actuarial of $481,000 due to the increased audit costs associate with our growing business; consultants to assist with the growth of the business of $434,000; and investment fees of $384,000 related to our derivative administration.
The following table sets forth a reconciliation of total revenue to adjusted revenue for the years ended December 31, 2020 and 2019, respectively:
IHC’s health insurance products serve niche sectors of the commercial market through multiple classes of business and varied distribution channels. Medical Stop-Loss is marketed to large employer groups that self-insure their medical risks; in 2010 the Company’s average case size was 350 covered lives. The small-group major medical product is purchased by employers with between two and 50 covered lives. With regard to those persons in the growing individual market, IHC’s products offer major medical coverage for individuals and families and persons with short-term medical needs, and limited medical and scheduled benefit plans through select distribution partners. Standard Security Life’s limited
Premiums earned decreased $6.5 million for the year ended December 31, 2010 when compared to 2009. Excluding $32.9 million of earned premiums related to the consolidation of AMIC’s results for the year ended December 31, 2010, premiums earned decreased $39.4 million, due to reduced production volume for the reasons stated above;
derived from tax exempt interest and dividend received deductions as a result of the Company's investments in both state and political subdivisions and preferred securities; and (iii) tax benefits on pre-tax losses from the non-life businesses which have higher effective rates due to state tax benefits. In 2008, the effective tax rate is the result of tax benefits generated by a pre-tax net loss combined with tax benefits derived from tax exempt interest and dividend received deductions as a result of the Company's investments in both state and political subdivisions and preferred securities.
Consolidated Financial Statements and Supplementary Data The National Security Group, Inc.
Investment real estate, at book value (accumulated depreciation: 2004 - $17; 2003 - $17) 1,463
A cquisition costs relating to life contracts are amortized over the premium paying period of the contracts, or the first renewal period of term policies, if earlier. Assumptions utilized in amortization are consistent with those utilized in computing policy liabilities.
T he liability for unpaid claims represents the estimated liability for claims reported to the Company and its subsidiaries plus claims incurred but not yet reported and the related adjustment expenses. The liabilities for claims and related adjustment expenses are determined using case-basis evaluations and statistical analyses and represent estimates of the ultimate net cost of all losses incurred through December 31 of each year. Although considerable variability is inherent in such estimates, management believes that the liabilities for unpaid claims and related adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary; such adjustments are included in current operations.
C ertain reclassifications have been made in the previously reported financial statements to make the prior year amounts comparable to those of the current year. Such reclassifications had no effect on the previously reported net income or shareholders’ equity.
Market risk is the risk of loss due to adverse changes in market rates and prices. Our primary market risk exposure is to changes in interest rates. The active management of interest rate risk is essential to our operations.
The other financial instruments, which include cash, premiums due from reinsurers and accrued investment income, do not produce a significant difference in fair value when included in the market
return calculations with current credit for net losses. Intercompany tax balances are reconciled at least annually.
As contemplated in the conversion plan, the amount payable relating to the agency acquisition was substantially repaid in 1999. In accordance with the purchase agreement, certain former agency shareholders elected to accelerate the individual amount due to them related to the agency acquisition. Settlements of these early extinguishments of debt resulted in an extraordinary item reflected on the 1999 and 1998 income statements.
As discussed in Note 3, on July 1, 1999, ProNational exchanged its $21.5 million surplus note and accrued but unpaid interest of $1,522,000 for shares of common stock of the Company.
The Company has a qualified defined contribution 401(k) plan which covers substantially all of its employees. The Company matches 50% of employees' contributions up to a maximum rate of 2.5% of eligible compensation. In addition, the Company is required to make an elective contribution on behalf
MEEMIC Insurance Services Corporation (MEIA Agency)-a business corporation incorporated under Michigan law on May 16, 1997, that represents over 95 insurance sales representatives, which is the exclusive distributor of our products. Although 90% of MEIA Agency's business is MEEMIC, the agency represents and receives sales commissions from other insurance carriers who do business in Michigan. On December 30, 1999 upon approval from the State of Michigan Office of Financial and Insurance Services, MEEMIC paid a dividend consisting of MEIA Agency to Holdings. This dividend rearranged the organizational structure of Holdings, such that MEEMIC and MEIA Agency are sister corporations as opposed to a parent/subsidiary relationship and MEIA Agency is a wholly-owned subsidiary of Holdings.
Most of the cash the Company receives is generated from insurance premiums paid by policyholders and from investment income. Premiums are invested in assets maturing at regular intervals in order to meet the Company's obligations to pay policy benefits, claims and claim adjusting expenses. Net cash provided by the Company's operating activities was $34,452,000 in 1999, compared to $18,061,000 in 1998. Operating cash flows continue to be ample to meet obligations to policyholders.
On March 4,1999, we entered into an agreement to acquire the American Indemnity Financial Corporation of Galveston, Texas. The transaction was consummated on August 10th. The American Indemnity Group is comprised of four insurance companies, three of which are domiciled in Texas. In 1999 it wrote approximately $62,000,000 in direct premiums, principally in the states of Texas, Florida, Louisiana and Alabama. Despite the Galveston address its coastal exposures are minimal. Its book of business is predominantly small commercial risks and is very comparable to our own. The profile of its agencies is similar to ours and its non-Texas business fits well with that of the Lafayette Insurance Co., expanding it into two additional states, Alabama and Tennessee. We concluded it was a good fit and would be a good way to expand our base.
- - - - - - -------------------------------------------------------------------------------- (Dollars in Thousands) - - - - - - -------------------------------------------------------------------------------- Years Ended December 31, 1999 1998 1997 - - - - - - -------------------------------------------------------------------------------- Current $ 541 $4,110 $9,009 Deferred 1,293 609 427 - - - - - - -------------------------------------------------------------------------------- Total $1,834 $4,719 $9,436 ================================================================================
Consolidated Statements of Shareholders' Equity for the years ended December 31, 1996, 1995 and 1994 23
The Company is a holding company which, through its subsidiaries, provides property and casualty, and other insurance products to those who buy, sell or finance mobile homes and recreational vehicles. The Company also writes automobile and homeowners property and casualty insurance.
In addition to the Company's net deferred tax liability, the liability for income taxes includes a current tax liability (recovery) of $634,000 and $(476,000) at December 31, 1996 and 1995, respectively.
Actuarial Standards of Practice generally require that the medical claims liability estimates be adequate to cover obligations under moderately adverse conditions. Moderately adverse conditions are situations in which the actual claims are expected to be higher than the otherwise estimated value of such claims at the time of estimate. In many situations, the claims amounts ultimately settled will be different than the estimate that satisfies the Actuarial Standards of Practice. We include in our IBNR an estimate for medical claims liability under moderately adverse conditions which represents the risk of adverse deviation of the estimates in our actuarial method of reserving.
Tightening of our pre-authorization list and more stringent review of durable medical equipment (DME) and injectibles.
Centene Corporation, or Centene or the Company, is a multi-line healthcare enterprise operating in two segments: Medicaid Managed Care and Specialty Services. Centene’s Medicaid Managed Care segment provides Medicaid and Medicaid-related health plan coverage to individuals through government subsidized programs, including Medicaid, the State Children’s Health Insurance Program, or SCHIP, Foster Care, Medicare Special Needs Plans and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled program, or ABD. The Company’s Specialty Services segment provides specialty services, including behavioral health, individual health insurance, life and health management, long-term care programs, managed vision, nurse triage, and pharmacy benefits management, to state programs, healthcare organizations, employer groups, and other commercial organizations, as well as to the Company’s own subsidiaries. The Company’s Specialty Services segment also provides a full range of healthcare solutions for the rising number of uninsured Americans.
To estimate fair values, the Company considered a number of factors, including the application of multiples to discounted cash flow estimates. There is considerable management judgment with respect to cash flow estimates and appropriate multiples used in determining fair value. Certain amounts are subject to change as remaining information on the fair values is received and valuation analysis is finalized. Specifically, the Company continues to evaluate the valuation and useful lives of acquired tangible and intangible assets, medical claims liability, and the income tax implications triggered by the acquisition. The final fair values may differ materially from the preliminary estimates described above. The Company expects to complete its final allocation of the purchase price before June 30, 2009. Pro forma disclosures related to the acquisition have been excluded as immaterial.
(5) On January 1, 2006, we adopted the share based compensation guidance. As a result, we recognized a cumulative adjustment of $1,547.
Net income decreased $151,397, or 35%, to $279,177 for Twelve Months 2010 from $430,574 for Twelve Months 2009. Twelve Months 2010 includes $107,075 (after-tax) of improved operating segment results and $66,300 (after-tax) of increased realized gains on investments, compared with Twelve Months 2009. However, results decreased primarily due to a non-cash goodwill impairment charge of $306,381 in Twelve Months 2010 compared with an $83,000 non-cash goodwill impairment charge in Twelve Months 2009. In addition, Twelve Months 2009 includes an $83,542 (after-tax) favorable legal settlement.
Our results depend on the appropriateness of our product pricing and underwriting, the accuracy of the reserves we establish for future policyholder benefits and claims, returns on invested assets and our ability to manage our expenses. Therefore, factors affecting these items may have a material adverse effect on our results of operations or financial condition. For a listing of those factors see “Item 1A - Risk Factors.”
Selling, underwriting and general expenses consist primarily of commissions, premium taxes, licenses, fees, amortization of deferred costs, general operating expenses and income taxes.
Refer to the consolidated financial statements and supplementary data included on pages 41 through 63 of the Annual Report to Shareholders for the year ended December 31, 2003 attached as Exhibit 13. (See Index to Financial Statements and Schedules attached on page 29.)
During the third quarter of 2013, the Company entered into cash flow hedging transactions on Treasury Inflation Protected Securities (“TIPS”) utilizing interest rate swaps to lengthen portfolio duration and to hedge the variability of cash flows due to changes in inflation.
The Company’s liability for policyholder account balances represents the contract value that has accrued to the benefit of policyholders at the Balance Sheet date. The liability is generally equal to the accumulated account deposits plus interest credited less policyholders’ withdrawals and other charges assessed against the account balance. Policyholder account balances at December 31, 2014 and 2013 were $1.2 billion and $1.3 billion, respectively.
Specific estimates include the realization of dividend-received deductions (“DRD”) and foreign tax credits (“FTC”). A portion of the Company’s investment income related to Separate Accounts business qualifies for the DRD and FTC. Information necessary to calculate these tax adjustments is typically not available until the following year. However, within the current year’s provision, management makes estimates regarding the future tax deductibility of these items. These estimates are primarily based on recent historic experience. See Note 7 to the Financial Statements for a further discussion.
ASC 205, Presentation of Financial Statements - ASU 2014-15, Presentation of Financial Statements-Going Concern - requires an entity’s management to evaluate whether there are conditions or events that, considered in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. It also requires disclosures under certain circumstances. The guidance is effective for annual period ending after December 15, 2016. Early application is permitted. Implementation of the ASC will not affect the Company’s financial position or results of operations. The Company is in the process of reviewing its policies and processes to ensure compliance with the new guidance.
Unrealized gains (losses) incurred during 2014 and 2013 were primarily due to price fluctuations resulting from changes in interest rates and credit spreads. If the Company has the intent to sell or it is more likely than not that the Company will be required to sell these securities prior to the anticipated recovery of the amortized cost, securities are written down to fair value. If cash flow models indicate a credit event will impact future cash flows, the security is impaired to discounted cash flows. As the remaining unrealized losses in the portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired.
(b) The increase in annuity benefit expense was primarily driven by the increase in fair value reserves in 2014 as compared to 2013.
believes the Company's increased loss experience in 1994 and 1993 compared to
December 31, 1993 and 1992. MIC has agreed to pay certain costs of issuing
the years ended December 31, 1993 and 1992, respectively. The realized losses
As of December 31, 1994, the Company had furnished such a letter of credit in
(a)The accounting change resulted from the adoption of Statement of Financial Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities, which became effective on January 1, 2001.
•mortality and other factors which may affect the profitability of our products
We specialize in the sale of individual annuities (primarily deferred annuities) and, to a lesser extent, we also sell life insurance. Under accounting principles generally accepted in the United States, premium collections for deferred annuities are reported as deposit liabilities instead of as revenues. Earnings from products accounted for as deposit liabilities are primarily generated from the excess of net investment income earned over the interest credited to the policyholder, or the "investment spread," as well as realized gains and losses on investments. In the case of equity index annuities, the investment spread consists of net investment income in excess of the cost of the options purchased to fund the index-based component of the policyholder's return plus amounts credited as a result of minimum guarantees. Revenue is also recognized from surrender charges deducted from the policyholder's account balance.
or benchmark. The participation rate, which we may reset annually, generally varies among the equity index products from 60% to 100%. Some of the products also have an "asset fee" ranging from 1% to 4%, which is deducted from the interest to be credited. The asset fees may be adjusted annually by us, subject to stated maximums. In addition, some products apply an overall maximum limit, or "cap", ranging from 9% to 13%, on the amount of annual interest the policyholder may earn in any one contract year, and the applicable cap also may be adjusted annually subject to stated minimums. The minimum guaranteed contract values are equal to 80% to 100% of the premium collected plus interest credited on the minimum guaranteed contract value at an annual rate of 3%.
Results of Operations for the Three Years Ended December 31, 2002
Future payments by American Equity Life on business in force at December 31, 2002 are dependent upon the account balances of the annuities remaining in force on each remaining quarterly renewal commission payment date.
Revenues Gross written premium decreased from $189.6 million in 1994 to $148.9 million in 1995 to $142.5 million in 1996. The following table sets forth the Company's gross written premium by line of business and net written premium in the aggregate for the periods indicated:
Net Written Premium. Navigators net written premium decreased 11% from 1994 to 1995 primarily due to the decrease in the property premium. The 4% increase in net written premium from 1995 to 1996 was primarily due to Navigators increasing its participation in the aviation pool to 100% at October 1, 1995 and to less premium being ceded. The decreases in the ceded premium are reflective of decreases in the gross written premium but are also due to price competition in the reinsurance business.
Commission Income. Commission income decreased 17% to $8.8 million in 1996 from $10.7 million in 1995 primarily due to Navigators increasing its participation to 100% at October 1, 1995 in the aviation business managed by the Somerset Companies, which eliminated commission income paid by the former participants in the aviation insurance pool. The 1996 commission income includes $826,000 of profit commissions earned under the Company's management agreement with Riverside. Commission income decreased 2% to $10.7 million in 1995 from $10.9 million in 1994 reflecting the withdrawal from the property catastrophe business. The commission income is also affected by profit commissions from the marine pool.