felanders/preprocessed huggingface dataset:
The Company has recorded changes in reserves for prior accident year losses in most years. In 1999 and 2001, the Company decreased its reserves for prior years by $3,749,000 and $1,474,000, respectively, primarily due to favorable loss experience related to workers compensation policies. In 2000, the Company increased its reserves for prior years by $1,428,000, primarily due to higher than anticipated frequency and severity of losses related to personal automobile, commercial automobile and workers' compensation policies. The total reserves for losses and LAE were $151,355,000 and $145,075,000 at December 31, 2001 and 2000, respectively.
As a holding company, the Company is dependent upon cash dividends from MNH to meet its obligations and to pay any cash dividends. MNH is subject to New Hampshire insurance laws which place certain restrictions on its ability to pay dividends without the prior approval of state regulatory authorities. These restrictions limit dividends to those that, when added to all other dividends paid within the preceding twelve months, would not exceed 10% of the insurer's policyholders' surplus as of the preceding December 31st. The maximum amount of dividends that MNH could pay during any twelve month period ending in 2001 without the prior approval of the New Hampshire Insurance Commissioner is $5,263,000. MNH paid the maximum allowable dividend to the Company in 2001. Dividends were paid in February 2001, May 2001 and September 2001, of $2,200,000, $1,350,000 and $1,510,000, respectively. MNH paid a dividend of $2,300,000 to the Company on February 19, 2002 and as such is restricted from paying another dividend to the Company until May, 2002. The Company paid a quarterly cash dividend to its common stockholders of $.10 per share in 2001, which amounted to $925,000.
St. Gall, Professor, St. Gall Graduate School of Economics, Business and Public Administration 1973
The allocation of the net profit proposed above presumes that — as was noted one year ago on page 16 of the written proposals of the Board of Directors to the 1972 General Meeting concerning revision of the Articles of Association — at the same time Sw. frs. 25.5 million will be transferred from the Special Reserve Fund to the Stat­ utory Reserve Fund, so that the latter will immediately attain the new statutory level of 50 % of the share capital.
The subsidiary reinsurance companies showed gratifying progress over the past year. In original currencies, there was accelerated premium growth, to some extent the re­ sult of inflation, and with one exception, all of the companies showed better results than in the previous year. It is worthy of note, in respect of structural and capital changes, that the two American reinsurance companies, as well as two service companies designed to assist American ceding companies in introducing and administering variable Life insurance, have been consolidated into one American holding company. Furthermore, the South Afri­ can subsidiary company increased its share capital from free reserves by Rand 256,000 to Rand 1 million.
Canadian Branch 1959 All classes 95 St. Clair Avenue West, Toronto 195, Ontario
Fixed assets are stated at cost, less accumulated depreciation and amortization. The Company capitalizes consulting fees and salaries and benefits for employees who are directly associated with the development of internal use software. Upon project completion, these costs are amortized over the estimated useful life of the software on a straight-line basis.
Exercisable at December 31, 1999 6,166,000 $ 1.16 Exercisable at December 31, 2000 8,984,000 $ 1.25 Exercisable at December 31, 2001 11,512,000 $ 1.31
(1) In March 1995 the Company entered into a lease for its New York Headquarters for approximately 59,000 square feet of office space at 2 World Trade Center, New York, New York, which expires in 2011. The Company's existing lease at 2 World Trade Center will terminate upon taking possession of the new space. The Company also extended its lease at 110 William Street, New York, New York until September 30, 1995, at which time all New York operations will relocate to 2 World Trade Center.
Interest expense increased 11% to $8.9 million in 1994 from $8.0 million in 1993. The increase was principally due to a full year of interest expense recognized on the Company's 5.25% Convertible Subordinated Debentures due April 1, 2000 ("Debentures") that were issued in March 1993, compared with nine months of interest expense in 1993. (See Liquidity and Capital Resources)
Net income for 1993 increased 249% to $25.3 million, or $1.38 per share, on a primary basis, compared with $7.2 million, or $0.40 per share, for 1992. Net income for 1993 on a fully diluted basis was $1.33 per share, compared with $0.40 per share for 1992. The 1993 results were affected by after-tax charges to operations, net of reinsurance, of $8.9 million, or $0.48 per share ($0.43 per share on a fully diluted basis) for property catastrophe events. The 1992 results were affected by after-tax charges to operations, net of reinsurance, of $37.9 million, or $2.08 per share (on a primary and fully diluted basis) for property catastrophe events. Average common and common equivalent shares outstanding (on a primary basis) for 1993 were 18.4 million, compared with 18.3 million for 1992.
See The Consolidated Financial Statements and Notes thereto and the Schedules on pages through and S-1 through S-7 below.
Interest expense was $2,982,824 in 2000, $3,738,740 in 1999 and $4,621,401 in 1998. The decrease in interest expense is due to the decrease in long-term debt.
Management believes that the reserves for losses and loss adjustment expenses at December 31, 2000 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.
Risk-based capital requirements are used as early warning tools by the National Association of Insurance Commissioners and the states to identify companies that require further regulatory action. The ratio for each of the Company's insurance subsidiaries as of December 31, 2000 was above the level which might require regulatory action.
Consolidated Statements of Stockholders' Equity December 31, 2000, 1999 and 1998
The Company evaluates performance based on earnings before income taxes and excluding interest expense. The Company accounts for intersegment revenue and expenses as if the products/services were to third parties. Information relating to the three segments is summarized as follows:
Income taxes received from subsidiaries during the years ended December 31, 2000, 1999 and 1998 were $118,150, $1,157,813, and $2,355,403, respectively. Interest paid during the years ended December 31, 2000, 1999 and 1998 was $3,023,070, $3,751,313 and $5,173,867, respectively. Interest paid in 2000 included $207,194 paid to subsidiaries for intercompany loans.
o Ongoing Accounts Receivable Management Services revenue of $1,419,000 in 2005 decreased by $1,065,000 compared to 2004 as a result of multiple changes to the Company's claims inventory mix. The decrease was due primarily to the loss of the PHS contract, which produced $386,487 in fees in 2004 and $0 fees in 2005; the loss of the LHH contract, which generated $467,126 in fees for 2004
(e)U.S. GAAP fair value recognition provisions for "Stock Compensation" require that any unrecognized stock-based compensation expense that will be recorded in future periods be included as proceeds for purposes of treasury stock repurchases, which is applied against the unvested restricted shares balance. On March 1, 2007, we effected a 1.75 for one reverse stock split of our outstanding common shares. The stock split does not affect our financial statements other than to the extent it decreases the number of outstanding shares and correspondingly increases per share information for all periods presented. The share consolidation has been reflected retroactively in these financial statements.
Diluted book value per common share is considered by management to be an appropriate measure of our returns to common shareholders, as we believe growth in our book value on a diluted basis ultimately translates into growth of our stock price. Diluted book value per common share decreased by $0.70, or
The uncertainties inherent in the reserving process, together with the potential for unforeseen developments, including changes in laws and the prevailing interpretation of policy terms, may result in losses and loss expenses materially different from the reserves initially established. Changes to prior year
(a)The results of operations for IPC are consolidated only from the September 2009 date of acquisition. No pre-acquisition results of operations for IPC are presented in the analysis above.
For reinsurance business where the assumed reinsurance premium is written on an excess of loss or on a pro rata basis, reinsurance contracts are generally written prior to the time the underlying direct policies are written by cedants and accordingly cedants must estimate such premiums when purchasing reinsurance coverage. For excess of loss contracts, the deposit premium is defined in the contract. The deposit
During 1995 the Corporation sold its insurance company operations which was its only business in prior years and, therefore, there are no comparative revenue amounts.
Consolidated statement of changes in stockholders' equity for the three years ended December 31, 1996, 1995, and 1994
Property and Equipment: Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of these assets which are thirty years for the building; three years for computer hardware and software; and five to seven years for furniture and fixtures.
Aggregate maturities of notes payable at December 31, 1996 are as follows:
The Corporation recorded a valuation allowance of $474,681 as of December 31, 1995 and increased the allowance by $498,469 during 1996 due to the uncertainty of the Corporation's ability to realize future benefits of net operating loss carry-forwards or other future tax deductions.
In determining the life expectancy estimate, we generally use actuarial medical reviews from independent medical underwriters. These medical underwriters summarize the health of the insured by reviewing historical and current medical records. The medical underwriters evaluate the health condition of the insured in order to produce an estimate of the insured’s mortality-a life expectancy report. In the case of a small face policy ($500,000 face value or less), we may use one life expectancy report or estimate life expectancy based on a modified methodology. The life expectancy report represents a range of probabilities for the insured’s mortality against a group of cohorts with the same age, sex and smoking status. These mortality probabilities represent a mathematical curve known as a mortality curve, which is then used to generate a series of expected cash flows from the life insurance policy over the expected lifespan of the insured. A discount rate is used to calculate the net present value of the expected cash flows. The discount rate represents the internal rate of return we expect to earn on investments in a policy or in the portfolio as a whole. The discount rate used to calculate fair value of our portfolio incorporates the guidance provided by ASC 820, Fair Value Measurements and Disclosures.
The fair value of life insurance policies is estimated using present value calculations of estimated cash flows based on the data specific to each individual life insurance policy. Estimated future policy premium payments are calculated based on the terms of the policy and the premium payment history. The following summarizes the unobservable inputs utilized in estimating the fair value of the portfolio of life insurance policies:
Future contractual maturities of Renewable Secured Debentures at December 31, 2012 are as follows:
Other revenues increased $1,471,000 from $1,352,000 in 1998 to $2,823,000 in 1999. The increase was due to Services beginning active operations in January of 1999. 1999 other revenues includes $1,661,000 of commission income received by Services from insurance carriers. The commission income from Services was partially offset by a decline in finance charges on premiums owed to Midwest Medical.
Income taxes decreased to $283,000 for 2000 compared to $816,000 for 1999. The effective tax rates for 2000 and 1999 were 5.1% and 32.0%, respectively. The principal factor in the decrease in the effective tax rate was a greater recovery of prior year taxes recorded in 2000 compared to 1999. The greater tax recovery in 2000 was primarily due to federal tax refunds received by Midwest Medical from the Internal Revenue Service for the 1992 to 1996 tax years.
Net income earned by the Company increased $3,550,000 to $5,286,000 in 2000 and decreased $4,212,000 to $1,736,000 in 1999 due to the factors discussed above.
Effective January 1, 1998, Solutions purchased the assets of MedPower Information Services, Inc. Solutions then contributed those assets to its newly formed, wholly-owned subsidiary, Medpower Information Resources, Inc. MedPower processes and electronically submits medical claims for a network of over 100 provider entities.
Midwest Medical cedes reinsurance in order to reduce its liability on individual risks and to enable it to write business at limits it otherwise would be unable to accept. Reinsurance contracts are principally excess-of-loss contracts which indemnify Midwest Medical for losses in excess of a stated retention limit up to the policy limits.
Midwest Holding accounted for these shares by increasing Common Stock by the par value ($.01 per share) of the newly issued shares, increasing paid-in capital by the excess of the redemption value over par and charging stock compensation expense for the full redemption value. Once vested, policyholders continued to earn shares for each month they remained insured with Midwest Medical according to the stock allocation formula. Midwest Holding accounted for additional shares issued to vested policyholders by increasing Common Stock for the par value of the shares and decreasing retained earnings by the same amount.
In 1999, Midwest Medical instituted a policyholder dividend program that replaced the previous retrospective premium credit program for physicians. To implement the program, Midwest Medical issued participating policy endorsements to all active physician, clinic and hospital accounts during 1999 and 2000. Participating policies represented 96% and 91% of total premiums in force and premium income at December 31, 2000 and December 31, 1999, respectively.
Heinz B. Vischer* Deputy Chairman and (from 23.9.1976) Managing Director, Küsnacht 1977
general somewhat lower than in the previous year, they were In many cases still so high that premium adjustments could not keep pace with the increased loss burden.
Hail reinsurance, the results of which fluctuate greatly from year to year, produced a loss. Serious hail damage in Switzerland necessitated substantial pay­ ments in this branch.
Despite premium increases and more rigorous risk selection, it was still not possible in the reporting year to remedy Burglary business and it again closed with a loss. The problem of increasing crime of all kinds does not yet appear to have been surmounted, particularly in industrialized countries with high living standards.
ment of laws with more stringent liability regulations and high liability sums — e.g. for product and environmental impairment liability — led to the expectation that, in Europe too, growth of this branch will accelerate in the next few years. The insurance industry's prime concern in this rapidly developing sector is directed toward clearly defining and limiting the loss event covered by insurance (the problem of acoumulation of numerous individual losses attributable to the same cause) and obtaining sufficient premium for the high insurance covers required, which, however, often concern sectors with relatively little or no conclusive loss experience.
The hidden surplus on investments (excluding real estate) rose by Sw. frs. 80 million, despite the foreign exchange rates which here too had a noticeably detrimental effect. At Sw. frs. 422 million, this repre­ sents 18.1 °/Q of the present balance-sheet value (previous year, 14.9%).
Of the assets shown, Sw. frs. 129 miilion (previous year, Sw. frs. 76 miiiion) are held by trustees appointed by us in overseas territories.
Net Profit for the Year 1 55,213,132 53,421,643 Disposable Sum 1 56,606,286 % 54,794,154 The Board of Directors proposes to the General Meeting the following allocation: Dividend
Investment Income (less Interest on Life Assurance and Annuity Fund and otfier Tecfmical Reserves)
The outgo and income and assets and liabilities of the consolidated companies are shown at 100%; an adjustment was made for the amount applicable to minority shareholders for the items "Profit" and "Capital funds shown".
North American Reassurance Company, New York fiorffi''American Reinsurance Corporatioj; New York -
COST MANAGEMENT Turning from income generation to cost management, the management of our day-to-day costs continues to have a strong emphasis in the Group, whilst at the same time we are continuing to invest heavily in e-commerce, in restructuring to improve our efficiency and productivity, and in improving the quality of our sales and service in order to enhance future earnings. Our restructuring programme is making strong progress, with further centralisation of processing achieved and consolidation of IT centres underway. We are also accelerating the expansion of lower cost delivery channels which will involve greater use of telephony, with more telephone calls taken out of our branches into dedicated call centres, allowing the branches to concentrate on face-to-face contact with our customers.
Lloyds TSB is one of the leading UK-based financial services groups, whose businesses provide a comprehensive range of banking and financial services in the UK and overseas. At the end of 2000 total group assets were £218 billion and there were over 77,000 employees. Market capitalisation was £39 billion.
The Group Compliance Director retains full day-to-day responsibility for Group Compliance, including routine contact with the regulators. He also has access to the Chairman, Group Chief Executive and other members of senior management.
Salaries and profit sharing 1,862 1,700 Social security costs 131 125 Other pension costs (105) (108)
Provisions for bad and doubtful debts** (2,117) (2,067) Interest held in suspense** (90) (100)
Other debt securities by residual maturity repayable: 3 months or less 8,574 7,644 1 year or less but over 3 months 6,476 2,645 5 years or less but over 1 year 241 362 aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff 17,899 12,260afffffffffffffffffffffffffff afffffffffffffffffffffffffff 37 Short-term borrowings
aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff 2,223 31 23afffffffffffffffffffffffffff afffffffffffffffffffffffffff afffffffffffffffffffffffffff The Company held non-trading derivatives with a notional principal amount of £400 million (1999: £400 million).
c Analysis of changes in cash during the year 2000 1999 £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
At 31 December 7,533 6,497affffffffffffffffffffffff afffffffffffffffffffffffffff e Analysis of the net cash outflow in 2000 1999 respect of the acquisition of group undertakings £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
The information about Lloyds TSB Stockbrokers’ services is approved by Lloyds TSB Stockbrokers Limited. Lloyds TSB Stockbrokers is a member of the London Stock Exchange and is regulated by SFA.
We conduct most of our operations in approximately 74 thousand square feet of leased space at 20 Custom House Street in downtown Boston, Massachusetts. Our lease was extended for an additional eleven year term starting on January 1, 2018 and will expire on December 31, 2028.
Our Insurance Subsidiaries began writing insurance in New Hampshire during 2008 and Maine in 2016. The table below shows the amount of direct written premiums and number of policies written in each state during the years ended December 31, 2017, 2016, and 2015.
(5) Other invested assets are accounted for under the equity method which approximates fair value.
Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the year ended December 31, 2016 decreased by $119,136, or 19.4%, to $493,433 from $612,569 for the comparable 2015 period due to the winter snowfall catastrophe in 2015.
Net Income (Loss). Net income for the year ended December 31, 2016 was $64,585 compared to a net loss of $13,853 for the comparable 2015 period.
We have obligations to make future payments under contracts and credit-related financial instruments and commitments. At December 31, 2017, certain long-term aggregate contractual obligations and credit-related commitments are summarized as follows:
As part of the Company’s investment activity, we have committed $60,000 to investments in limited partnerships and in a real estate investment trust. The Company has contributed $30,240 to these commitments as of December 31, 2017. As of December 31, 2017, the remaining committed capital due to be called is $29,760.
The following sensitivity table presents information of the effect each 1 percentage-point change in our assumptions on our share of reserves for CAR and other residual markets could have on our assumed loss and LAE
Our retained other than auto and homeowners line of business reserves decreased by $10,201 for the year ended December 31, 2017 due primarily to fewer IBNR claims than previously estimated.
The Company records interest and penalties associated with audits as a component of income before income taxes. Penalties are recorded in underwriting, operating and other expenses, and interest expense is recorded in interest expenses in the Consolidated Statements of Operations. The Company had no interest and penalties related to income taxes accrued as of December 31, 2017 and 2016.
Transfers in and out of Level 3 are attributable to changes in the ability to observe significant inputs in determining fair value exit pricing. As noted in the table above, no transfers were made in or out of Level 3 during 2017, 2016 and 2015. The Company held one Level 3 securities at December 31, 2017.
A Torchmark subsidiary, Torchmark Development Corporation (TDC), has completed a 185,000 sq. ft. office building as the initial phase of a 100-acre commercial development at Liberty Park along I-459 in Birmingham, Alabama of which a total of approximately 180,000 sq. ft. is currently leased. A 90,000 sq. ft. office building is under construction in this development and is scheduled for completion in May, 1995, which is 60% preleased. TDC also owns and manages a 70,000 sq. ft. office and retail complex adjacent to Liberty Park. As a part of a joint venture with unaffiliated entities, it is also developing 2,800 contiguous acres as a planned community development.
Service fees were $22.3 million in 1994, rising 5% over the prior year. Service fees grew 7% to $21.3 million in 1993. The number of accounts serviced was 1.15 million at December 31, 1994, compared to 1.09 million a year earlier, increasing 6%.
Goodwill: The excess cost of businesses acquired over the fair value of -------- their net assets is reported as goodwill and is amortized on a straight-line basis over a period not exceeding 40 years. Torchmark's unamortized goodwill is periodically reviewed to ensure that conditions are present to indicate the recorded amount of goodwill is recoverable from the estimated future profitability of the related business. If events or changes in circumstances indicate that future profits will not be sufficient to support the carrying amount of goodwill, goodwill is written down to the recoverable amount and is amortized over the original period or a reduced period if appropriate.
Acquisition of Common Shares: Torchmark commenced a program in 1986 to ---------------------------- purchase shares of its common stock from time to time. Under this program, Torchmark purchased 4.2 million shares in 1992 at a cost of $157.7 million. The other common treasury stock acquired was shares received by Torchmark from employees for the exercise proceeds and payment of taxes for stock options as well as shares purchased in the open market for the issuance of shares in conjunction with the exercise of stock options. In October, 1993, Torchmark implemented a policy to issue shares for the exercise of stock options out of treasury stock.
Grant of Restricted Stock: A grant of 60,000 Torchmark shares was made on ------------------------- May 1, 1991 to a Torchmark senior officer. The shares are restricted as to resale, vesting 6,000 shares per year for 10 years on the anniversary date of the grant. The market value of Torchmark stock was $34.92 per share on the grant date.
On November 17, 1994, a Circuit Court jury in Mobile County, Alabama returned a $4.6 million verdict against Liberty in Coram v. Liberty National ------------------------- Life Insurance Company. This case involved allegations of fraud by an agent of - ---------------------- Liberty and was consolidated for trial with another case involving the same sales agent. A verdict was returned in favor of Liberty in the companion case. Liberty plans to vigorously pursue post-trial motions for relief and, if necessary, an appeal. The $4.6 million verdict was provided for in the 1994 financial statements.
The components of the net periodic pension benefit cost for the plan consists of the following (in thousands):
Gallagher also has a foreign defined contribution plan which provides for basic contributions by Gallagher and voluntary contributions by employees resident in the United Kingdom which are matched 100% by Gallagher, up to a maximum of 5% of eligible compensation. Net expense (income) for foreign retirement plans amounted to $2,253,000 in 1999, $3,128,000 in 1998 and ($2,922,000) in 1997. In 1997, Gallagher settled a foreign defined benefit plan and enrolled the participants into the foreign defined contribution plan. At the time of the settlement of the foreign plan, there was a surplus of plan assets in excess of benefit obligations. Previously vested benefits of the plan participants were settled by the purchase of annuity policies with a life insurance company. As a result of the defined benefit plan settlement, Gallagher recognized a $4,830,000 gain in 1997 which was recorded as a reduction of salaries and employee benefits expense.
Equity securities held in support of a deferred compensation plan are designated as trading. Such investments are carried at fair value with changes in unrealized gains and losses reported in the Statements of Operations and Comprehensive Income, as a component of “Other income.”
previously determined total estimated gross profits are greater than or less than the current period’s range, we adjust our future rate of return assumptions accordingly, to reflect the result of the reversion to the mean approach. Our expected rate of return across all asset types is 8.35% per annum, which reflects, among other assumptions, an expected rate of return of 9.5% per annum for equity type assets. The future equity rate of return used varies by product, but was under 9.5% per annum for our evaluation of deferred policy acquisition costs as of December 31, 2007.
Our accounting represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. Certain changes or future events, such as changes in tax legislation, geographic mix of earnings and completion of tax audits could have an impact on our estimates and effective tax rate. For example, the dividends received deduction reduces the amount of dividend income subject to tax and is a significant component of the difference between our effective tax rate and the federal statutory tax rate of 35%. The U.S. Treasury Department and the Internal Revenue Service, or Service, are addressing through new regulations the methodology to be followed in determining the dividends received deduction related to variable life insurance and annuity contracts. A change in the dividends received deduction, including the possible elimination of this deduction, could increase our effective tax rate and reduce our income.
Assets increased by $6.7 billion, from $38.6 billion at December 31, 2006 to $45.3 billion at December 31, 2007. Separate account assets increased by $5.9 billion, driven by positive net flows and market appreciation during the current year. Deferred policy acquisition costs (“DAC”) and deferred sales inducements also increased by $276.5 million and $199.0 million, from December 31, 2006 to December 31, 2007, respectively, due to increased sales driving higher capitalized costs. Additionally, fixed maturities increased by $161.3 million and short term investments increased by $83.1 million, driven by higher policyholders’ account balances and cash collateral for loaned securities discussed below. Partially offsetting these increases was a decrease in the valuation of business acquired of $34.1 million resulting from amortization.
Asset management fees increased by $55.9 million, from $168.0 million for the twelve months ended December 31, 2006 to $223.9 million for the twelve months ended December 31, 2007 as a result of growth of separate account assets compared to the prior year period, primarily due to increased net inflows and market appreciation. Asset management fees are asset based fees, which are dependent on the value of assets under management.
Net income and operating income decreased $220, or 34%, and $100, or 14%, respectively, due to the decline in revenues and increase in expenses described above. In 2002 the Company recognized a $3 after-tax benefit due to favorable development related to September 11. In 2001, the Company recorded a $9 after-tax loss related to September 11. Excluding the impact of September 11, net income decreased $232, or 35%, and operating income decreased $112, or 16%. Net income for the Investment Products segment was down $32, or 9%, as growth in the other investment products businesses, particularly institutional investment products, was more than offset by the decline in revenues in the individual annuity operation, which was negatively impacted by the lower equity markets. COLI net income decreased $5, or 14%. Excluding the impact of September 11, COLI’s net income decreased $7, or 18%, primarily the result of the charge associated with the Bancorp litigation. The declines in net income for those segments were partially offset by the increase in net income for the Individual Life segment. Individual Life net income increased $10, or 9%. Excluding the impact of September 11, Individual Life’s net income increased $7, or 6%, as the result of the Fortis acquisition. Other net income decreased $193 and operating income decreased $73, or 38%. The decline in net income of the Other segment is principally due to higher realized capital losses and a lower DRD tax benefit recorded in 2002 compared to 2001 as discussed above.
The total securities that were in an unrealized loss position for longer than six months as of December 31, 2002 primarily consisted of corporate and asset-backed securities. The significant corporate security industry sectors of banking and financial services, utilities, technology and communications and airlines comprised of 20%, 13%, 14% and 3%, respectively, of the greater than six months unrealized loss amount. Asset-backed securities comprised 34% of the greater than six month unrealized loss amount and included securities backed by corporate debt, aircraft lease receivables and credit card receivables. At December 31, 2002, the Company held no securities of a single issuer that were at an unrealized loss in excess of 4% of total unrealized losses. The total unrealized loss position of $(419) consisted of $(297) in general account losses and $(122) in guaranteed separate account losses.
risk management purposes using scenario simulation techniques, and are evaluated on an annual basis, in compliance with regulatory requirements.
Hartford Life Insurance Company distributes its annuity and life insurance products through a variety of distribution channels, including broker-dealers, banks, wholesalers, its own internal sales force and other third party organizations. The Company periodically negotiates provisions and renewals of these relationships and there can be no assurance that such terms will remain acceptable to the Company or such third parties. An interruption in the Company’s continuing relationship with certain of these third parties could materially affect the Company’s ability to market its products.
The following table provides case and IBNR reserves for losses and settlement expenses as of December 31, 2020 and 2019.
The accompanying consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (GAAP), which differ in some respects from those followed in reports to insurance regulatory authorities. The consolidated financial statements include the accounts of our subsidiaries. All significant intercompany balances and transactions have been eliminated.
The following table presents changes in accumulated other comprehensive earnings for unrealized gains and losses on available-for-sale fixed maturity securities:
In addition, other invested assets include privately held investments of $204,000 and notes issued. Two of the notes, issued for $625,000 and $650,000 on July 30, 2019 and January 28, 2020, respectively, bear interest at 6.5% and are amortized over 20 years with a balloon payment due July 30, 2029. A third note was issued for $94,000 on October 30, 2020 and bears interest at 6.0% and is amortized over 29 years with monthly payments due beginning July 31, 2021. The Company had no allowance recorded related to uncollectible notes receivables at December 31, 2020 and 2019.
In April 2020, the Company obtained a $1.6 million loan (the PPP loan) from a commercial bank pursuant to the federally authorized Paycheck Protection Program (Program) administered by the Small Business Administration (the SBA). The PPP loan’s interest rate was 1.0% per annum with a maturity set for the second quarter of 2022. The Company applied for loan forgiveness in the fourth quarter of 2020 and received full forgiveness from the SBA. Both the $1.6 million in principal and $11,000 in accrued interest were forgiven effective December 30, 2020 and recognized as a non-taxable gain on extinguishment of debt.
Once regulatory action (such as receivership, finding of insolvency, order of conservation or order of liquidation) is taken against a reinsurer, the paid and unpaid recoverable for the reinsurer are specifically identified and written off through the use of the allowance for estimated unrecoverable amounts from reinsurers. When such a balance is written off, it is done in full. The Company then re-evaluates the remaining allowance and determines whether the balance is sufficient as detailed above, and if needed, an additional allowance is recognized and income charged. The Company had no allowance recorded related to uncollectible amounts on paid and unpaid recoverables at December 31, 2020 and 2019. The Company has no receivables with a due date that extends beyond 90 days from the date of billing that are not included in the allowance for uncollectible amounts.
The Company has operating lease obligations related to managing the business. Minimum future rental payments under non-cancellable agreements total $41,324 and $52,618 in 2021 and 2022, respectively.
NAICO's loss reserves consist of case reserves and reserves for incurred but not reported ("IBNR") claims. Case reserves are established by claims personnel based on a review of the facts known at the time the claim is reported, and are subsequently revised as more information about a claim becomes known. IBNR is computed using various actuarial methods and techniques and includes reserves for losses that have occurred but for which claims have not yet been reported, including provision for expected future development on case reserves. As of December 31, 2007, NAICO's case reserves and IBNR for each line of business are shown in the following table.
Other income was $251,000, $317,000 and $1,916,000 during 2005, 2006 and 2007, respectively. The increase in 2007 was due to the transfer of NAICO's property and inland marine business in the standard lines and political subdivisions programs to Praetorian under a new arrangement effective January 1, 2007. Under this arrangement, CIMI receives commission income for the business it produces for Praetorian.
Statutes and regulations governing NAICO and other insurance companies domiciled in Oklahoma regulate the payment of shareholder dividends and other payments by NAICO to Chandler USA. Under applicable Oklahoma statutes and regulations, NAICO is permitted to pay shareholder dividends only out of statutory earned surplus. To the extent NAICO has statutory earned surplus, NAICO may pay shareholder dividends only to the extent that such dividends are not defined as extraordinary dividends or distributions. If the dividends are, under applicable statutes and regulations, extraordinary dividends or distributions, regulatory approval must be obtained. Under the applicable Oklahoma statute, and subject to the availability of statutory earned surplus, the maximum shareholder dividend that may be declared (or cash or property distribution that may be made) by NAICO in any one calendar year without regulatory approval is the greater of (i) NAICO's statutory net income, excluding realized capital gains, for the preceding calendar year; or (ii) 10% of NAICO's statutory policyholders' surplus as of the preceding calendar year end, not to exceed NAICO's statutory earned surplus.
The selected historical statement of operations data and balance sheet data for the last five years were derived from our audited consolidated financial statements and reflect the retroactive revision to reflect the classification of our structured settlement business as discontinued operations.
During the year ended December 31, 2017, approximately $2.0 million was recorded in loss on the extinguishment of debt for the 15.0% Senior Secured Notes, including $1.5 million and $518,000 related to prepayment penalty and write off of origination cost, respectively.
Of the interest expense of $29.4 million for the year ended December 31, 2016, approximately $11.4 million represents interest paid on the White Eagle Revolving Credit Facility and approximately $4.3 million was attributable to the Red Falcon Revolving Credit Facility. Interest included $388,000 and $297,000 of debt issuance costs for the White Eagle Revolving Credit Facility and the Red Falcon Revolving Credit Facility, respectively, which were not capitalized as a result of electing the fair value option for valuing these debt facilities, and $11.0 million and $4.0 million related to interest payments paid during the year ended December 31, 2016, respectively.
Interest expense on the Convertible Notes totaled $9.1 million including $6.0 million, $2.7 million and $404,000 representing interest, amortization of debt discount and issuance costs, respectively.
approximately $13.1 million restricted pursuant to the White Eagle Revolving Credit Facility. We expect to meet our liquidity needs for the foreseeable future, to the extent we are able to do so, primarily through a combination of the receipt of death benefits from life insurance policy maturities, borrowings under the White Eagle Revolving Credit Facility, policy sales (subject to the asset sale restrictions in our debt arrangements) and cash on hand.
Direct . . . . $ 6,797,136$ 2,025,796 236% Assumed . . . 1,189,689 2,890,050 (59%)
During the year ended December 31, 1997, losses and loss adjustment expenses increased to $1,792,117 from $1,670,640 for the year ended December 31, 1996. The increase in benefit and claims expenses of $121,477 is attributed to the effects of reserve increases on direct business of $928,009 which is offset by a decrease in claim reserves on assumed business of $806,532. Loss ratios on direct and assumed premiums earned during 1997 are 40% and 63.6%, respectively.
During the year ended December 31, 1997, the net amortization of deferred policy acquisitions costs increased to $1,778,808 from $1,532,355 for the year ended December 31, 1996. The increase is attributable to the increase in earned premiums.
Net cash (used in) provided by financing activities was $873,839, $(670,889) and $(803,772) for the years ended December 31, 1998, 1997 and 1996, respectively. Financing activities consist of purchases of treasury stock, long-term and short-term borrowings and repayment on borrowings during 1998, 1997 and 1996.
Liability for losses and LAE on a SAP basis (which is net of reinsurance recoverables on unpaid losses and LAE) $ 1,680,580
The Company assumes and cedes reinsurance and participates in various pools. The accompanying financial statements reflect premiums, benefits and settlement expenses, and deferred policy acquisition costs, net of reinsurance ceded (see Note 12). Amounts recoverable from reinsurers for unpaid losses are estimated in a manner consistent with the claim liability associated with the reinsured policies.
Amortization expense amounted to $225,108 in 1998, $275,169 in 1997 and $306,175 in 1996.
Selling and administrative expenses . . . . 415,242 294,901 133,834 Interest expense to affiliates . . . - - 372,066 ------------- ------------- -------------
Investment in subsidiaries at December 31, 1998 and 1997 include the net unrealized (depreciation) appreciation in available-for-sale securities held by CCS, of $(190,929) and $134,201 as of December 31, 1998 and 1997, respectively. These amounts have been included in the CTI other stockholders equity amounts.
Deferred income tax valuation allowance . . . . $695,269 $ -0- $ -0- $ 397,134 $ 298,135 ========== ========== ========== ========== ========== For the year ended December 31, 1998:
Operating in these mortgage interest rate environments and in good general economies, real estate activity was strong in 2001 and weak in 2000. Nationwide, refinancing transactions increased significantly in 2001. The ratio of refinancings to total loan applications was 56.0% for 2001, 20.0% for 2000 and 30.6% for 1999. Existing home sales increased 2.7% in 2001 over 2000, while decreasing 1.8% in 2000 from 1999.
TITLE LOSSES. Provisions for title losses, as a percentage of title premiums, fees and other revenues, were 4.3%, 4.5% and 4.4% in 2001, 2000 and 1999, respectively. The continued improvement in industry trends in claims and increases in refinancing transactions, which generally result in lower loss exposure, have led to lower loss ratios in recent years.
INCOME TAXES. The provision for federal, state and foreign income taxes represented effective tax rates of 39.6%, 47.1% and 39.0% in 2001, 2000 and 1999, respectively. The 2000 effective rate was higher primarily due to state income taxes, which were proportionately higher in relation to taxable income.
(1) Further information and a reconciliation of Operating income to Net income appear in the Definitions of Non-GAAP and Operating Measures Section of the MD&A
In 2001, total GAAP premiums were comparable to 2000. Increased premiums from traditional life and other products were more than offset by a decrease in premiums from immediate annuities with life contingencies. The increase in sales of traditional products resulted, in part, due to an increase in retention limits associated with third party reinsurance instituted during the year.
Contract benefits paid include cash payments for variable annuity GMDBs totaling $2.7 million, $955 thousand and $63 thousand for the years ended December 31, 2002, 2001 and 2000, respectively. The increases over this three-year period reflect poor equity market performance. Variable annuity contractholder activity, including surrender, withdrawal, asset allocation, and annuitization, could have a significant impact on the ultimate cost of providing guaranteed minimum death benefits.
The Company has a reinsurance treaty through which it cedes re-investment related risk on its structured settlement annuities to ALIC. The terms of this treaty meet the accounting definition of a derivative under Statement of Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities." Accordingly, the treaty is recorded in the Statement of Financial Position at fair value, and changes in the fair value of the treaty are recognized in Realized capital gains and losses. Premiums paid to ALIC are included in Operating costs and expenses.
The GMIBs offered by the Company include the right to annuitize based on the highest account value at any contract anniversary date. The Company began offering these guarantees in certain of its variable annuity contracts in 2002, therefore based on contract specifications, these benefits will not be available for election by the contractholders until at least 2012. The guaranteed value in excess of contractholders' account values at December 31, 2002 payable over the annuity period if all contractholders were to elect to annuitize, was estimated to be $15 thousand. To calculate this measure, the current interest rate environment is utilized in the assumptions.
State insurance laws require the Company to file statutory-basis financial statements with the insurance department in the State of New York. The operations of the Company and the accounts are subject to examination by the department at any time. The Company prepares statutory-basis financial statements in accordance with accounting practices and procedures prescribed or permitted by the state of New York.
As a result, Motor Club's premium to surplus ratio is in excess of 3 to 1. In addition, Motor Club's liabilities in relation to its statutory surplus are at a level whereby adverse development of claims, particularly as a result of the impact of AICRA, could further reduce its surplus, thus decreasing its RBC ratios, possibly to a level which would require action as prescribed by law. To date, the NJ DOBI has generally not been responsive to requests for rate increases or other regulatory relief based upon the impact of AICRA to companies, nor as noted has it implemented certain key aspects of AICRA which would provide relief to insurers such as Motor Club.
acquisition of Mountain Valley and North East. We allocated approximately $1.3 million in costs previously attributable to Motor Club to Mountain Valley and North East in 2000 without any significant increase in overall expenditures other than those noted below. This accounts for most of the improvement.
products. In the third quarter of 2000, North East introduced a commercial package product in the State of Maine similar to that offered by Preserver.