felanders/preprocessed huggingface dataset:
an increase in average earned premium revenue per automobile (see discussion regarding premium results), and
an increase in average earned premium revenue per automobile (see discussion regarding premium results),
At December 31, 2005, 2,557,664 shares of common stock may be awarded in the future under the Plan. Our Compensation Committee has not granted stock options to employees under the plan since 2001. We follow variable accounting treatment for options granted in 1999 and 2000 in accordance with APB Opinion 25 and related interpretations.
We pay to CAR all of the premiums generated by the policies we have ceded and CAR reimburses us for all losses incurred on ceded policies. In addition, we receive a fee for servicing ceded policies based on the expense structure established by CAR. For the years ended December 31, 2005, 2004 and 2003, these servicing fees amounted to $24,102, $21,160 and $18,938, respectively.
As the business targets of both Scottish Insurance and Harbourton are addressed by several domestic and international reinsurers, we cannot be certain that it will meet our expectation.
The Clinton Administration's Fiscal Year 2000 Budget Proposal contains provisions that, if enacted into law, could adversely affect the sale of variable products. First, the Proposal would require the reporting of payments of more than $10,000 made to entities in "identified tax havens." It is not known if the Cayman Islands will be treated as an identified tax haven, but if so purchasers of variable policies issued by Scottish Insurance or Scottish Annuity will be required to provide certain information to the IRS.
Second, the Proposal would require insurance companies to report to the IRS items of income and gain with respect to a "private separate account." Although the reporting requirements that would be imposed under this proposal would generally not apply to insurers that do not do business in the United States, the proposal indicates that the IRS might take the position that a United States taxpayer that is the owner of a variable contract that is based on a "private separate account" (i.e., the separate account supports only a small number of insurance or annuity contracts) will be treated as the owner of the assets held in the separate account for federal income tax purposes.
In the past, federal and state governments have proposed to regulate foreign insurers. While none of these proposals has been adopted, we cannot assure you that federal or state legislation will not be enacted subjecting our business to supervision and regulation in the United States.
Insurance and reinsurance premiums that will be paid to Scottish Insurance and Scottish Annuity will be subject to a U.S. excise tax to the extent the underlying risks are located in the United States. In addition, our investment income from United States sources could be subject to withholding tax. These taxes could be increased and other taxes could be imposed on our business, which could also adversely affect our results of operation.
In evaluating its results of operations, the Company also considers net changes in deposits received for investment-type contracts, deposits to separate accounts, and self-funded equivalents. Self-funded equivalents represent paid claims under minimum premium and administrative services only contracts of which amounts approximate the additional premiums that would have been earned under such contracts if they had been written as traditional indemnity or HMO programs.
Continued management emphasis on the reduction of unit costs in the FASCorp administration arena are designed to allow the Company to remain competitive in the recordkeeping market. There was an increase of 316,000 new lives under administration in FASCorp in the year 2001, and growth is expected to continue in the future.
At December 31, 2001, the Company had nine bonds in default with a carrying value of $71.1 million, compared to two bonds for $10.7 million for 2000.
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY YEARS ENDED DECEMBER 31, 2001, 2000, AND 1999
No dividends were paid on preferred stock in 2001, 2000, and 1999, respectively. In addition, dividends of $187,633, $137,149, and $88,950 were paid on common stock in 2001, 2000, and 1999, respectively. Dividends are paid as determined by the Board of Directors, subject to restrictions as discussed below.
• RIC, which underwrites workers’ compensation insurance, specialty risk and extended warranty coverage, and specialty middle-market property and casualty coverages in the United States;
Critical Accounting Policies It is important to understand our accounting policies in order to understand our financial statements. We consider some of these policies to be very important to the presentation of our financial results because they require us to make estimates and assumptions. The Company’s management has discussed the development, selection and disclosure of the estimates and assumptions used with the audit committee. These estimates and assumptions affect the reported amounts of our assets, liabilities, revenues and expenses and the related disclosures. Some of the estimates result from judgments that can be subjective and complex, and, consequently, actual results in future periods might differ significantly from these estimates.
Income from Continuing Operations. Operating income from continuing operations increased to $130.8 million for the year ended December 31, 2007, from $70.9 million for the year ended December 31, 2006, an increase of $59.9 million or 84.3%. This increase is attributable to strong growth in revenue combined with a slight improvement in the both the loss ratio and the net expense ratio.
Net Realized Gains on Investments. Net realized gains on investments for the year ended December 31, 2006 were $14.8 million, compared to $4.9 million for the same period in 2005. The increase relates primarily to the increase in the average assets held for investment during the period.
Small Business Workers’ Compensation Segment Results of Operation 2007 Compared to 2006 Gross Premium Written. Gross premiums written increased $49.9 or 19.3% from $258.9 million to $308.8 million for the year ended December 31, 2006 and 2007, respectively. The increase in the Small Business Workers’ Compensation segment related primarily to $17.1 million of additional premiums resulting from the acquisition from Muirfield Underwriters, Ltd. of its distribution network and the renewal rights to its existing business during the second quarter of 2006, additional premiums of $17.7 million related to the acquisition of AIIC in the third quarter of 2007 and $15.1 million from organic growth.
Small Business Workers’ Compensation Segment Results of Operation 2006 Compared to 2005 Gross Premiums Written. Gross premiums written increased from $204.6 million for the year ended December 31, 2005 to $258.9 million for the year ended December 31, 2006. The increase of $54.4 million or 26.6% was attributable to the increase in our average policy premium and the number of policies written which accounted for $25.3 million. In addition, in 2006, Muirfield produced $14.0 million of gross premium written and the Georgia Assigned Risk Plan generated $10.6 million of gross premiums written.
Technology and content expenses consist primarily of compensation and benefits costs for personnel associated with developing and enhancing our website technology as well as maintaining our website. A majority of our technology and content group is located at our wholly-owned subsidiary in China, where technology development costs are generally lower than in the United States.
The following table presents our commission, other revenue and total revenue for the years ended December 31, 2010, 2011 and 2012 and the dollar and percentage changes from the prior year (dollars in thousands):
2011 compared to 2010-In 2011, we recorded a provision for income taxes of $6.5 million, representing an effective tax rate of 49.0%. Our effective tax rate in 2011 was higher than our effective tax rate in 2010 of 46.3%, due primarily to an increase in non-deductible lobbying expenses.
2011- Net cash used in financing activities of $20.4 million during 2011 was due to $25.4 million used to repurchase 1.9 million shares of our common stock and $0.6 million used to net share settle equity awards, partially offset by $4.7 million of excess tax benefits from stock-based compensation and $0.9 million of proceeds received from the issuance of common stock pursuant to stock option exercises.
In August 2012, we extended our existing lease for office space in Gold River, California, for an additional two years expiring on December 31, 2014. Rent payments will total $0.9 million in both 2013 and 2014.
Intangible assets with finite useful lives, which include purchased technology, pharmacy and customer relationships, trade names, trademarks and website addresses, are amortized over their estimated useful lives and are reviewed for impairment annually on or about November 30 of each year or whenever events or changes in circumstances indicate a reduction in their fair values below their respective carrying amounts.
As of December 31, 2011, expected amortization expense in future periods is as follows (in thousands):
In both 2011 and 2012, we issued restricted stock units with both service and performance-based vesting criteria to our executive officers. The performance-based contingency period for our restricted stock units with both service and performance-based vesting criteria is the fiscal year in which the grant is awarded ending on December 31, and the measurement of achievement is based on our revenue, non-GAAP operating earnings and EBITDA results for the fiscal year. Our performance-based restricted stock units are granted pursuant to the terms of our 2006 Plan. Shares earned and eligible to vest will vest one-third annually following the performance-based contingency period.
The updated guidance was effective for reporting periods beginning after December 15, 2019. As a Smaller Reporting Company, the effective date was recently changed and the delayed effective date is now for reporting periods beginning after December 15, 2022. Early adoption is permitted for reporting periods beginning after December 15, 2018.
The $934,716 increase in short-term investments is due to management’s decision to increase our investment in funds that have a maturity of more than 90 days but less than one year at the date of purchase.
The $7,359,809 decrease in suspense accounts payable is due to decreased deposits on policy applications that had not been issued as of the financial reporting date primarily due to a suspension of annuity production after June 30, 2019.
The Company reported a lease liability of $76,711 as of December 31, 2019, in accordance with the lease guidance adopted in 2019.
Our operations have been financed primarily through the private placement of equity securities and intrastate public stock offerings. Through December 31, 2019, we have received $27,119,480 from the sale of our shares.
As of December 31, 2019, cash and cash equivalents, short-term investments, the fair value of fixed maturity available-for-sale securities with maturities of less than one year and the fair value of lottery receivables with maturities of less than one year equaled 8.9% of total policy liabilities. If interest rates rise significantly in a short time frame, there can be no assurance that the life insurance industry, including the Company, would not experience increased levels of surrenders and reduced sales, and thereby be materially adversely affected.
AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018
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 were 7,802,593 for both of the years ended December 31, 2019 and 2018.
The Company’s mortgage loans by property type as of December 31, 2019 and 2018 are summarized as follows:
The outstanding balance of lottery prize cash flows, by state lottery, as of December 31, 2019 and 2018 are summarized as follows:
The Company analyzes market valuations received to verify reasonableness and to understand the key assumptions used and the sources. Since the fixed maturity securities owned by the Company do not trade on a daily basis, the third party investment service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. As the fair value estimates of the Company’s fixed maturity securities are based on observable market information rather than market quotes, the estimates of fair value on these fixed maturity securities are included in Level 2 of the hierarchy. The Company’s Level 2 investments include obligations of U.S. government, U.S. government agencies, state and political subdivisions, mortgage-backed securities, corporate bonds, asset-backed, exchange traded securities and foreign bonds.
Other Operating Expenses. Other operating expenses for the direct segment ------------------------- in 2000 were approximately $32.3 million, compared to total operating expenses for the entire business operation in 1999 of $29.3 million, when the Company did not allocate expenses to the different parts of its operations. The ratio of other operating expenses to premiums earned is referred to as the expense ratio, which increased to 21.6% in 2000 for the direct medical malpractice insurance segment from 19.1% for the entire operation in 1999. This increase reflects higher commission expenses associated with the greater proportion of broker- produced premiums in 2000 compared to 1999 and an increase in employee-related expenses.
The value of the fixed-maturity portfolio is subject to interest rate risk. As market interest rates decrease, the value of the portfolio goes up with the opposite holding true in rising interest rate environments. A common measure of the interest sensitivity of fixed-maturity assets is modified duration, a calculation that takes maturity, coupon rate, yield and call terms to calculate an average age of the expected cash flows. The longer the duration, the more sensitive the asset is to market interest rate fluctuations.
The Company's Consolidated Financial Statements and related notes, including supplementary data, are set forth in the "Index" on page 43 hereof.
For securities classified as “trading securities” and “other investments”, any realized and unrealized gains or losses are determined on the basis of specific identification method (by reference to cost or amortized cost, as appropriate) and included in net investment income (loss) in the consolidated statements of operations.
We monitor the development of our prior-year losses during the course of subsequent calendar years by comparing the actual reported losses against expected losses. The analysis of this loss development is an important factor in our ongoing refinement of the assumptions underlying our reserving process.
Net premiums earned are primarily a function of the amount and timing of net premiums previously written. On occasion, there will be a significant difference between the change in net premiums written compared to the change in net premiums earned. The only such difference that occurred during the periods presented related to the commutation of a mortgage reinsurance contract. As a result, net premiums written within our other line of business decreased by $28.4 million from 2017 to 2018, while net premiums earned increased by $12.5 million during the same period.
For the year ended December 31, 2018, financing activities included issuance of $100.0 million of senior unsecured convertible notes less issuance costs. The net proceeds from the convertible note issuance was used partially to repurchase 1.0 million Class A ordinary shares and the remainder used for working capital purposes. During the year ended December 31, 2018, 2017 and 2016, total cash used for share repurchases was $16.5 million, $2.8 million and nil respectively.
dividends to us. In addition, any dividend payment would have to be approved by the relevant regulatory authorities prior to payment. As of December 31, 2018, Greenlight Re and GRIL both exceeded the regulatory minimum capital requirements.
As of December 31, 2018, we had made a commitment to fund $5.8 million under a $6.0 million loan facility (See Note 4). For purposes of the above table, we have assumed that the entire commitment will be made within one year.
Our related party transactions are presented in Note 15 to the accompanying consolidated financial statements.
Interest expense. Interest expense increased during the year ended December 31, 2013 by $6.5 million reflecting the addition of $175 million of Senior Notes in the fourth quarter of 2012.
Our investment policies are designed to provide liquidity, preserve capital and maximize total return on invested assets within our guidelines. Net cash provided by and used in investing activities will fluctuate from year to year due to the timing of investment purchases, sales and maturities. As of December 31, 2013, our investment portfolio consisted primarily of fixed-income securities with an average duration of 2.9 years. These securities generally are actively traded in secondary markets and the reported fair market value is determined based on recent trading activity, recent trading activity in similar securities and other observable inputs. Our investment guidelines comply with the regulatory restrictions enacted in each state. We had unregulated cash and investments of $44.7 million at December 31, 2013, compared to $37.3 million at December 31, 2012.
We had outstanding letters of credit of $28.8 million as of December 31, 2013, which were not part of our revolving credit facility and bore interest at 0.51%. In addition, we had outstanding surety bonds of $102.6 million as of December 31, 2013.
We have a stock repurchase program authorizing us to repurchase up to four million shares of common stock from time to time on the open market or through privately negotiated transactions. We have 1.7 million available shares remaining under the program for repurchases as of December 31, 2013. No duration has been placed on the repurchase program. We reserve the right to discontinue the repurchase program at any time. We did not make any repurchases under this plan during 2013 or 2012.
Centene Corporation, or the Company, is a diversified, multi-line healthcare enterprise operating in two segments: Managed Care and Specialty Services. The 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 CHIP, Long Term Care (LTC), Foster Care, Medicare Special Needs Plans and the Supplemental Security Income Program, also known as the Aged, Blind or Disabled Program, or collectively ABD. The Specialty Services segment consists of our specialty companies offering auxiliary healthcare services and products to state programs, healthcare organizations, employer groups and other commercial organizations, as well as to our own subsidiaries. The health plan in Massachusetts, operated by our individual health insurance business, is included in the Specialty Services segment.
KSHP had remaining statutory capital of approximately $83,600 at December 31, 2013, which will be transferred to unregulated cash, subject to regulatory approval.
Segment information as of and for the year ended December 31, 2013, follows:
parent from unrestricted subsidiaries was $312,887, $318,198, and $88,701 and was included in cash flows from operating activities.
(1) No incremental shares related to options/warrants are included due to the loss for the year.
CGIC has developed a plan for Y2K compliance and as of December 31, 1998, all operating systems and applications were Y2K compliant. Other systems such as those controlling payroll, elevators, telephone system and other building systems are scheduled to be completed and Y2K compliant by June 1999.
At Central's headquarters, a new telephone and voice mail systems were installed in the fourth quarter of 1998. Both systems (hardware and software) are Y2K compliant. The building security/access systems and employee time tracking system are being replaced and should be completed by the third quarter of 1999. Elevator and other building facility systems are being reviewed and will be upgraded as needed by August 1, 1999.
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP"), which differ from accounting practices prescribed or permitted by the Ohio Department of Insurance (see Note M). A summary of significant accounting policies is as follows:
Cash and cash equivalents include cash and all highly-liquid securities with maturities of 90 days or less when purchased.
Exercise prices for options outstanding at December 31, 1998 ranged from $5.50 to $10.50. While some options have no expiration date, management estimates the remaining average contractual life of options awarded is 5 years.
The statutory capital and surplus of Central at December 31, 1998, 1997, and 1996, as reported in the Annual Statement filed with regulatory authorities, was $30,418,544, $24,650,804, and $16,595,497, respectively, and the statutory net loss for each of the three years ended December 31, 1998 was $21,162,850, $21,616,489, and $9,321,633, respectively.
Effective January 1, 1998, the Company's noncontributory pension plan was converted into a defined contribution 401(k) savings plan (the "Plan"). Employees become eligible to participate in the Plan after six months of service. Based on the provisions of the Plan, participants may contribute up to 10% of their pretax annual compensation. The Plan provides for an 100% employer matching contribution only for that portion of participant contributions made to a fund which holds principally the Company's Shares, up to $1,000 annually. In 1998, total matching contributions expensed by the Company were approximately $52,000.
MORTGAGE NOTE PAYABLE, NOTE PAYABLE AND REINSURANCE PAYABLE -- The carrying amount reported in the consolidated balance sheets for the mortgage note payable and note payable approximates their fair value.
During the years ended December 31, 1996 and 1995, no stock option activity occurred. Option activity during the twelve months ended December 31, 1994 is summarized below:
The Company has recorded a deferred tax asset of $1.6 million, which consists primarily of the benefit of the AMT credit carryforwards and the state NOLs, as follows:
Ute Scott-Smith Ms. Scott-Smith, born in 1960, has served as Senior Vice President of the Company since 1990. She has been Senior Vice President of LMG since 1992.
Revenues. Total revenues decreased 10.0% from December 31, 1999 to December 31, 2000. This decrease is primarily attributable to the $15.9 million decrease in software and software services revenues. The decrease in software and software services revenues is due to the Company's decision in December 1999 to discontinue efforts directed toward increasing licensed software packages and services in order to focus on its outsourcing business. Outsourcing services revenues increased $2.6 million for the year ended December 31, 2000. This increase resulted from: (i) the Company performing outsourcing services under an agreement with The Robert Plan entered into effective April 1, 1999 and (ii) the Company performing services under five additional outsourcing contracts entered into after March 31, 1999. These increases were partially offset due to decreases in revenues during the third and fourth quarters resulting from the following actions: (i) contractual rate decreases on two contracts and (ii) an overall decrease in Millers American business. In December 2000 INSpire
Ability to grow and expand services. The Company's growth strategy depends on its ability to increase its share of the policy and claims administration market through the enhancement of existing services, development of new services, and the marketing of its services. There can be no assurance that INSpire will have the financial, managerial, administrative, marketing, or other resources necessary to achieve these objectives. The success of INSpire depends in large part on its ability to attract and retain highly skilled managerial, sales, marketing, and professional personnel. In addition, INSpire believes it may need to hire additional technical personnel to enhance and develop its services. Competition for such personnel is intense, and should INSpire be unable to hire the necessary personnel, the development and sale of new or enhanced services would likely be delayed or prevented. INSpire cannot assure that it will be able to attract, integrate, and retain skilled personnel, manage its infrastructure, or overcome other difficulties associated with growth. If INSpire were to encounter difficulties in implementing the expansion or development of its services, or in attracting, integrating and retaining its personnel, such difficulties could have a material adverse effect on the Company's business, financial condition, cash flows, and results of operations.
Management believes that our present facilities are adequate for its anticipated needs.
3. Legal and Regulatory Risk. As an insurance company, we are subject to substantial regulatory control. Any material change in the framework in which we operate could have a material impact on the business. For further discussion on the regulatory environment in which we operate, see “Item 1. Business - Insurance Regulation.”
Under applicable accounting rules, DAC related to deferred annuities is amortized in proportion to the estimated gross profits over the estimated lives of the contracts. Essentially, as estimated profits of the Insurance Company related to these assets increase, the amount and timing of amortization is accelerated. The difference between the net change in DAC in 2011 and in 2010 when compared to 2009 is primarily attributable to lower deferred costs due to lower product sales in 2011 and 2010 relative to 2009. At year end 2011, we performed an updated loss recognition test to re-confirm the recoverability of the asset for DAC using best estimate actuarial assumptions. Refer to “Critical Accounting Policies and Estimates” below.
Income tax expenses of approximately $16.9 million and $13.3 million were generated in 2011 and 2010, respectively, as compared to a benefit of approximately ($3.9) million in 2009. Higher income in 2011 and 2010 generated higher income taxes. The benefit in 2009 was primarily attributable to a lower net income and a deferred tax benefit realized on other than temporary impairments incurred on our investment portfolio. Our effective tax rates were 30.3% and 38.1% for the years ended December 31, 2011 and 2010, respectively. Principal deviations relative to the 35% federal statutory rate include changes in liabilities for tax uncertainties, true-up of prior year deferred and current tax provisions for new information, and non-taxable and non-deductible items.
We were able to meet all our liquidity needs in 2011, including the payment of dividends, and we anticipate being able to meet those needs in 2012 and for the reasonably foreseeable future.
For all equity investments, if we conclude that an other than temporary impairment has occurred, the carrying value of the equity security is written down to the current fair value, with a corresponding charge to realized gain (loss) in our consolidated statements of income. We base our review on a number of factors including, but not limited to, the severity and duration of the decline in fair value of the equity security as well as the cause of the decline, our ability and intent to hold the security for a sufficient period of time to allow for a recovery in value, any third-party research reports or analysis, and the financial condition and near-term prospects of the security’s issuer, taking into consideration the economic prospects of the issuer’s industry and geographical location.
In November 2009, our wholly owned subsidiary GWG Life commenced private placement of Series I Secured Notes to accredited investors only. This offering was closed in November 2011. As of December 31, 2014, we had approximately $28.0 million in principal amount of Series I Secured Notes outstanding.
(3) Accrual of actuarial gain at expected internal rate of return based on investment cost basis for the period.
The estimated fair value of the Company’s portfolio of life settlements is determined on a quarterly basis by the Company’s portfolio management committee, taking into consideration changes in discount rate assumptions, estimated premium payments and life expectancy estimate assumptions, as well as any changes in economic and other relevant conditions. These inputs are then used to estimate the discounted cash flows using the Model Actuarial Pricing System (MAPS), probabilistic portfolio price model, which estimates the cash flows using various probabilities and scenarios. The valuation process includes a review by senior management as of each valuation date. Management has also engaged a third party expert to independently test the accuracy of the valuations using the inputs provided by management on a quarterly basis.
The Company entered into an Indenture effective October 19, 2011 with Holdings as obligor, GWG Life as guarantor, and Bank of Utah as trustee for the benefit of the debenture holders. The Indenture has certain financial and nonfinancial covenants. The Company was in compliance with these covenants at December 31, 2014 and 2013.
The Position Holder Trust was authorized to issue New IRA Notes in a principal amount of $63.7 million bearing interest at 3.0% per annum and maturing in 2031. As of December 31, 2018, there were $35.9 million of New IRA Notes outstanding. Interest is payable annually in December.
Future changes in the discount rates used by the Trust to value life insurance policies could have a material effect on the Trust's yield on life settlement transactions, which could have a material adverse effect on the Trust’s financial condition and results of operations.
The following table presents White Mountains’s adjusted book value per share, a non-GAAP financial measure, for the years ended December 31, 2016, 2015 and 2014 and reconciles this non-GAAP measure to the most comparable GAAP measure. See “NON-GAAP FINANCIAL MEASURES” on page 64.
Change in foreign currency translation and other items from sale of Sirius Group
In October 2012, OneBeacon entered into an agreement to sell its Runoff Business to Armour. The Runoff Transaction closed in the fourth quarter of 2014. See Note 22 - “Held for Sale and Discontinued Operations” on page for more details regarding the Runoff Transaction. During 2014, OneBeacon reported a $21 million after-tax net loss in discontinued operations related to the Runoff Transaction, which included a $19 million after-tax loss from sale of the Runoff Business (further described below) and a $2 million after-tax loss from the underwriting results of the Runoff Business.
Detailed information concerning White Mountains’s cash flows during 2016, 2015 and 2014 follows:
Preferred stocks: The fair value of preferred stocks is determined from a pricing evaluation technique that calculates the appropriate spread over a comparable security for each issue. Key inputs include exchange prices (underlying and common stock of same issuer), benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications.
As of December 31, 2016, White Mountains owned $503 million of BAM Surplus Notes and has accrued $108 million in interest due thereon. BAM has not yet made any cash payments to White Mountains for amounts owed under the BAM Surplus Notes. Because BAM is consolidated in White Mountains’s financial statements, the BAM Surplus Notes and accrued interest are classified as intercompany notes, carried at face value and eliminated in consolidation. However, the BAM Surplus Notes and accrued interest are carried as assets at HG Global, of which White Mountains owns 97% of the preferred equity, while the BAM Surplus Notes are carried as liabilities at BAM, which White Mountains has no ownership interest in and is completely attributed to non-controlling interests.
White Mountains’s review is based on a debt service model that forecasts 20 years of operating results for BAM. The model depends on assumptions regarding future trends for the issuance of municipal bonds, interest rates, credit spreads, competitive activity in the market for bond insurance and other factors affecting the demand for and price of BAM’s bond insurance. Assumptions regarding future trends for these factors are a matter of significant judgment.
 + 7.9% (+ 5.4% in pro forma premiums at constant exchange rate)
 Reminder: Premium income from savings & pensions in France  17% Unit-linked in 2006 against 15% in 2005
 Fair Value principles  90% of trading securities, 97% of AFS: at market value
 AFS:  Equity depreciation due to crisis: - € 7 million
 Trading: gross depreciation: € 553 million of which ABS: € - 245 million  Breakdown of variations by fair value valuation method, decreases in values communicated by arrangers are significant: Fair value variations – all assets
Average insurance and financial liabilities (excl. deferred participation) 226,531 + 9.1% + 8.7%
 Deferred participation reserve down by € 3.5 billion mainly due to the interest rate increase between 31/12/2006 and 31/12/2007
 Improved Pensions EBIT mainly attributable, as in 2006, to Caixa Seguros business.
 FFSA growth prospects for Life and Capitalisation markets in 2008: 0%
 Beginning 2008:  Continued competition from liquidities and bank products and Livret A
 Advantages and Drawbacks: " - " For CNP " + " For CNP
 Objective: to gradually reduce withdrawal rates  Withdrawal rates for the new Unicredit range are expected to be lower
FIG's primary sources of revenue are dividends from its subsidiaries. The dividends are the result of premium earned and investment income generated from the insurance operations of FPIC, and fee and commission income from MCC and the Agency. FPIC concentrates on liability insurance products for the healthcare community, with MPL insurance for physicians and dentists as its primary product. FPIC writes MPL insurance on a claims-made (as opposed to occurrence) basis,
Acquired to provide cross-selling opportunities, MCC specializes in the administration of self-insurance plans for large employers. The lines of insurance administered are group health, workers' compensation, general liability, and property insurance. The services are offered to FPIC's existing and potential customer base of healthcare facilities and managed care organizations.
Results of Operations - Year Ended December 31, 1996 Compared to Year Ended December 31, 1995
general reserving practices and reflects the experience and knowledge of the claims personnel regarding the nature and value of the specific type of claim. Reserves are also established on an aggregate basis to provide for losses incurred but not reported (“IBNR”) to the insurer, potential inadequacy of case reserves and the estimated expenses of settling claims, including legal and other fees and general expenses of administrating the claims adjustment process. Reserves are established based upon the then current legal interpretation of coverage provided.
Reinsurance & Monoline Excess includes property and casualty reinsurance as well as operations that solely retain risk on an excess basis.
A summary of gross premiums written in 2019 compared with 2018 by line of business within each business segment follows:
Other-Than-Temporary Impairments. The cost of securities is adjusted when appropriate to include a provision for a decline in value that is considered to be other-than-temporary. In 2018, there were $6 million of other-than-temporary impairments. There was no other-than-temporary impairments in 2017.
The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors. None of these securities are delinquent or in default on financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI.
For certain retrospectively rated insurance polices and reinsurance agreements, changes in loss and loss expenses for prior years are offset by additional or return premiums.
have seen evidence of social inflation in the form of higher jury awards on cases which go to trial, and corresponding higher demands from plaintiffs and higher values required to reach settlement on cases which do not go to trial. The unfavorable development for D&O affected mainly accident years 2014 through 2017.
For professional liability business, adverse development was primarily related to unexpected large directors and officers (“D&O”) liability losses at one of our U.S. operating units, and large professional indemnity and D&O losses in the U.K. The adverse development stemmed mainly from accident years 2013 through 2016 in the U.S. and 2011 through 2016 in the U.K.
The Company also discounts reserves for certain other long-duration workers’ compensation reserves (representing approximately 3% of total discounted reserves at December 31, 2019), including reserves for quota share reinsurance and reserves related to losses regarding occupational lung disease. These reserves are discounted at statutory rates prescribed or permitted by the Department of Insurance of the State of Delaware.
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31, 2019 and 2018:
We own seven buildings encompassing approximately 367,000 aggregate square feet of space. Two of the buildings, representing approximately 225,000 aggregate square feet of space, are primarily used for administrative operations and are located in California and Guam. The remaining five buildings are medical office buildings, of which four are leased to third parties under a master lease agreement. All five medical buildings are being marketed for sale. We also own one parcel of vacant land for a total of two acres, which is being marketed for sale.
Net membership increases from acquired membership in Colorado, Texas and Washington, partially offset by membership decreases in Colorado attributable to premium rate increases that averaged 14 percent in 2000; and
Marketing, General and Administrative Expenses. For the year ended December 31, 1999 compared to 1998, marketing, general and administrative expenses as a percentage of operating revenue decreased because of:
We benefited from certain tax strategies, in particular our legal reorganization, which resulted in lower state income taxes;
We have increased the capitation rates we pay some of our physicians and hospitals to improve network stability and to reflect the increased costs incurred by our capitated physicians and hospitals. We have reduced benefits, increased copayments and instituted or increased member-paid supplemental premiums in some markets for our Secure Horizons members. The various changes we made to premium rates, benefits, copayments and member paid supplemental premiums did not offset our increased health care costs for 2000 for two primary reasons. During 2000 more of our hospital providers shifted to per-diem, fee-for-service or risk-based contracts than
As a result of these trends, the following are potential risks:
Utilization Risk. Under fee-for-service and risk-based contracts, we risk incurring higher than expected health care costs due to increased utilization of hospital and physician services. To reduce the risk of higher than medically warranted utilization, we are focusing on developing medical management programs to manage health care costs and investing in the development of systems to monitor and manage the utilization of health care services, while maintaining quality of care. However, our consolidated medical care ratio could continue to increase if our programs for controlling utilization are not successful.
Existing state legislation and regulation that may require increases in minimum capital, reserves, and other financial liability requirements. In addition, proposed state legislation that may limit the admissibility of certain assets.
Our need for additional advertising, marketing, administrative or management information systems expenditures;
ra n ce a n d ve ry w el l p la ce d a cr o ss c o n tin en ta l E u ro p e.
’s n um b er t er m c re d ito r in su re r, ev en d ee p er in si g ht s in to th e ex p ec ta tio ns a n d n ew p a tt er ns o f us e o f w o ul d -b e b o rr o w er s.
Q: Digitalisation requires different skill sets. How do we acquire them?
Antoine Lissowski is Deputy Chief Executive Officer, Finance (CFO), and Phillippe Van Haecke is Head of Customer Experience and Information Systems. Together, they are leading the drive to delight and enchant customers by adopting a meticulous and agile approach.
“Encourage our agents to join an optional supplementary health and personal risk plan” was the brief set by four French ministries – the Ministry of Education, the Ministry of Higher Education, Research and Innovation, the Ministry of Culture and the Ministry of Young People and Sports. The target population comprised over 1.3 million civil servants, contractual staff (1) and interns, and over 815,OOO pensioners. The age, status and expectations of agents and of their close family were all taken into account to design specially for them adjustable cover and made-to-measure services – the ANTICIPA range listed by the four ministries. The solution comprises a choice of three formulas to fit individual needs and everyday services, such as an approved network of opticians to reduce residual costs, and a digital platform providing access in a few clicks to innovative services delivering peace of mind and useful guidance.
The proportion of inflows directed into unit-linked vehicles almost doubled to 32.65% and stood at 15.66% of outstandings at year-end 2O17.
In early 2O18, a Health Ideas Box was rolled out to serve disadvantaged communities in
(1) Percentage shareholdings of CNP Assurances. (2) The holdings of our main shareholders include the portion covered by the Shareholders’ Agreement (i.e. Caisse des Dépôts: 34.6%, Sopassure: 3O.7%, French State: O.9%) and the portion of the free float they hold (i.e. Caisse des Dépôts: 6.2%, Sopassure: 5.6%, and the French State: O.2%).
Sopassure(2) Holding company owned by La Banque Postale and BPCE Group 4O.8%
Photo credits: Aldo Sperper – Laurence Guenoun – Aglaé Bory – D. Croizat – Getty Images / Westend61, Gary Burchell, Tom Werner, Nikada, Maskot, shironosov, kupicoo, amesy, vladru,
(1) - We completed a two-for-one stock split on January 20, 2017. All share and per share data has been retroactively restated on a post-split basis.
Net operating earnings is calculated as Net income before after-tax Net realized gains (losses), after-tax OTTI losses recognized in earnings, and after-tax net realized and unrealized foreign exchange gains (losses) resulting from foreign currency transactions (transactions denominated in a currency other than the entity’s functional currency) and translation adjustments (translation of foreign currency denominated assets and liabilities into U.S. Dollars (“USD”).
The following tables present the impact of reserve development and RRPs on our Net losses and LAE ratio for the years ended December 31, 2016, 2015 and 2014:
For the year ended December 31, 2015 average renewal premium rates decreased 5.4%, due to decreases of 2.3%, 9.9%, and 4.6% in our Marine, P&C and Professional Liability operating segments, respectively.
For the year ended December 31, 2016, our Int’l Insurance reporting segment recorded $25.0 million of net prior AY reserve releases, driven by our Marine and P&C operating segments of $22.1 million and $7.1 million, respectively, related to favorable loss emergence. These releases were partially offset by $4.1 million of net prior AY reserve strengthening within our Professional Liability operating segment due to an increase in our reserve for uncollectible reinsurance. Additional net current AY reserve development of $55.7 million was mostly comprised of unfavorable loss emergence driven by a large Cargo loss in our Marine operating segment and large Offshore Energy losses in our P&C operating segment, as well as $17.4 million of CAT losses including $7.1 million due to Hurricane Matthew, $6.9 million related to the Alberta Wildfires, and $2.3 million due to the Taiwan Earthquake, predominantly from our Property business.
For the year ended December 31, 2014, our Int’l Insurance reporting segment recorded $38.3 million of net prior AY reserve releases primarily driven by our Marine operating segment of $31.7 million, our P&C operating segment of $3.8 million and our Professional Liability operating segment of $2.7 million, due to favorable loss emergence from prior years. These releases were partially offset by $19.2 million of current AY reserve strengthening within our Marine operating segment due to large loss activity in the current AY.
Refer to Note 6, Ceded Reinsurance, in the Notes to Consolidated Financial Statements for additional information.
greater variance than the range for the entire book of business. The statistical variation is expected to have a somewhat higher range of deterioration than savings. The computation of each range represents the central 50.0% of outcomes. The movement within our reporting segments in an individual year may not fall within this range. There is a significant risk that the potential volatility of the current reserve estimates could differ in a material manner from the historical trends. The total reserve variability is not equal to the sum of the segment variability due to the benefit of diversification.
The Company employs three outside professional advisors to manage the portfolio: one to manage investment-grade fixed income securities, one to manage large-cap domestic equities, and one to manage international equities. The managers operate within the Company's adopted investment policy as approved by the Investment Committee of the Board of Directors. The Investment Committee meets with outside investment managers approximately four times per year. Future levels of realized capital gains or losses are difficult to predict as investment managers purchase and sell securities in response to changing market conditions and investment policy guidelines.
6. litigation, regulatory or tax developments which could adversely affect the Company's business;
individual offers under identical terms. All outstanding Class A Common Shares of Midwest Holding were exchanged and redeemed as of December 31, 2000. During 2000, payments of $9,541,000 were made to Class A shareholders for stock redemptions related to these offers.
The Company's income taxes differ from the federal statutory rate applied to income before tax as follows:
Midwest Holding also provides medical benefits to retirees through a defined benefit post-retirement plan which covers substantially all employees. The net periodic post-retirement benefit cost for the years ended December 31, 2001, 2000 and 1999 was $38,000, $36,000 and $23,000, respectively. As of December 31, 2000 and 1999, the net post-retirement benefit plan liability was $86,000 and $51,000, respectively.
The following is a reconciliation of net (loss) income and shareholders' equity under US GAAP with that reported for Midwest Medical on a statutory basis: