felanders/preprocessed huggingface dataset:
The Partnership made $6.9 million in distributions to the Partners during 2003, and $16.1 million in distributions during 2002. Distributions may be made to the Partners during 2004 based upon the percentage of assets invested in short-term obligations, taking into consideration anticipated cash needs of the Partnership including potential property acquisitions, property dispositions and capital expenditures. Management anticipates that its current liquid assets and ongoing cash flow from operations will satisfy the Partnership's needs over the next twelve months and the foreseeable future.
The apartment complexes owned by the Partnership experienced a net unrealized gain of $0.4 million for the twelve months ended December 31, 2001. The majority of the unrealized gain experienced in 2001 was primarily due to the Atlanta, Georgia apartment complex that experienced an increase in value of $0.9 million due to sub-metering of the apartments for water usage and lower real estate taxes than previously estimated. The apartment complex portfolio located in Gresham and Salem, Oregon also experienced an increase in value of $0.4 million due to the completion of capital improvements and a reduction of administrative expense estimates. Offsetting these unrealized gains was the apartment complex located in Raleigh, North Carolina, which experienced a net unrealized loss of $0.5 million due to a decrease in occupancy. The apartment complex in Jacksonville, Florida also experienced a decrease in value of $0.4 million due to higher replacement reserve expenses, higher operating expense projections, and slightly lower market rent estimates.
The industrial properties owned by the Partnership experienced a net unrealized gain of approximately $0.2 million for the year ended December 31, 2002 compared to a net unrealized loss of approximately $2.1 million in 2001. The majority of the unrealized gain in 2002 was attributable to the Aurora, Colorado industrial property. This gain of approximately $0.5 million was due to an increase in market rents. Offsetting this unrealized gain was the Salt Lake City, Utah facility, which experienced a net unrealized loss of $0.3 million due to capital expenditures at the property that were not reflected as an increase in market value and softening market conditions.
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the application of accounting policies that often involve a significant degree of judgment. Management, on an ongoing basis, reviews critical estimates and assumptions. If management determines, as a result of its consideration of facts and circumstances that modifications in assumptions and estimates are appropriate, results of operations and financial position as reported in the Consolidated Financial Statements may change significantly.
Certain financial information for The National Security Group’s two operating segments (Life segment, Property and Casualty segment) and holding company level expenses is summarized as follows (amounts in thousands):
As disclosed in Note 13 to the consolidated financial statements, in 2010, the amount that The National Security Group’s insurance subsidiaries can transfer in the form of dividends to the parent company is limited to $1,002,000 in the life insurance subsidiary and $5,394,000 in the property/casualty insurance subsidiary.
NSFC is licensed in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, Oklahoma, South Carolina, Tennessee and West Virginia. In addition, NSFC operates on a surplus lines basis in Louisiana, Missouri, and Texas. NSFC operates in various property and casualty lines, the most significant of which are dwelling property fire and extended coverage, homeowners, mobile homeowners, ocean marine, private passenger automobile physical damage and liability and commercial auto liability.
Certain 2009 amounts have been reclassified from the prior year notes to the consolidated financial statements to conform to the 2010 presentation.
Financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2009 are summarized in the following table by the type of inputs applicable to the fair value measurements (in thousands):
OmniCare-MI recognized earnings of $0.6 million for the six months ended June 30, 1999, compared to a loss of $9.5 million for the six months ended June 30, 1998, a favorable change of $10.1 million. The change was due primarily to renegotiated hospital provider contracts and the 3% reduction in the management fee percentage. The stabilization efforts related to OmniCare-MI continue, including pursuing joint ventures and other similar activities. The management fee percentage reduction decreased the Company's management fee revenues for fiscal 1999 by approximately $4.2 million.
UltraMedix, which ceased operations in March 1998, did not incur any medical service expenses in the year ended June 30, 1999. Medical service expenses for UltraMedix were $17.3 million in the year ended June 30, 1998.
In September 1998, the Company and its bank lender amended the Company's loan agreement and promissory note to: (i) decrease the principal sum to $20.94 million and (ii) require reductions in the outstanding balance owed to the bank at scheduled future dates, including the permanent reduction of the bank's commitment to the lesser of the then outstanding principal balance or $8.0 million by April 15, 1999.
Premiums and policy fees, net of reinsurance (“premiums and policy fees”) decreased $1.5 million or 4.8% in 2001 as compared to 2000. Premiums and policy fees in the Acquisitions segment are expected to decline with time unless new acquisitions are made. There were no new acquisitions made in 2001, therefore resulting in a decrease of $2.2 million. Premiums and policy fees from the Credit Products segment were $0.7 million higher in 2001 as compared to 2000 due to increased marketing efforts and sales momentum. The Annuities segment experienced a small increase in premiums in 2001 as compared to 2000.
Statements of Share-Owners' Equity for the years ended December 31, 2001, 2000, and 1999..................................................................... 12
Net income from continuing operations before cumulative effect of change in accounting principle...................................................... 8,121,263 8,794,674 9,048,966 Income (loss) from discontinued operations, net of income tax............. 158,889 (51,006) 352,207 Gain from sale of discontinued operations, net of income tax.............. 1,625,000 ------------ ------------ ------------
2001 2000 1999 ---------------------------------------- ------------------ ----------------- ----------------- Total revenues $ 970,192 $ 653,995 $ 2,192,687 ---------------------------------------- ------------------ ----------------- ----------------- Income (loss) before income taxes from discontinued operations $ 240,377 $ (77,872) $ 489,179 Income tax (expense) benefit (81,488) 26,866 (136,972) ---------------------------------------- ------------------ ----------------- ----------------- Income (loss) from discontinued operations $ 158,889 $ (51,006) $ 352,207 ---------------------------------------- ------------------ ----------------- ----------------- Gain from sale of discontinued operations $ 2,500,000 before income tax Income tax expense related to sale $ 875,000 ---------------------------------------- ------------------ ----------------- ----------------- Gain from sale of discontinued operations $ 1,625,000 ---------------------------------------- ------------------ ----------------- -----------------
Premiums and policy fees: Life insurance.................................. $6,126,681 $19,988,121 $47,053,071 $33,191,631 141.8% Accident and health insurance................... 1,213,498 54,380 29,578 1,188,696 2.5% ----------- ------------ ------------ ------------ TOTAL........................................ $7,340,179 $20,042,501 $47,082,649 $34,380,327 =========== ============ ============ ============
The near-term future rate of return assumptions used in evaluating DAC and DSI are derived using a reversion to the mean approach, a common industry practice. Under this approach, we consider the historical equity returns over a period of time and initially adjust future projected equity returns over the next four years (the “near term”) so that the assets are projected to grow at the long-term expected rate of return for the entire period. If the near-term projected future rate of return is greater than our near-term maximum future rate of return of 13%, we use our maximum future rate of return. As of December 31 2013, our variable annuities and variable life insurance businesses assume an 8.0% long-term equity expected rate of return and a 3.9% near-term mean reversion equity rate of return.
2013 to 2012 Annual Comparison. Revenues increased $15 million year over year. This increase was primarily driven by an increase of $36 million in policy charges and fee income in our annuity products, consisting primarily of mortality and expense and other insurance charges, as well as asset management fees, assessed on policyholders’ fund balances primarily driven by higher annuity average separate account asset balances due to market appreciation and positive net flows from new business sales. Also contributing to the increase was a $31 million increase in realized investment gains due to a favorable variance in the mark-to-market related to embedded derivatives associated with our non-reinsured living benefit features in our annuity products. The increase is partially offset by a decrease of $52 million in our life products, reflected as decreases in policy charges and fee income, net investment income, and realized investment gains (losses), primarily resulting from the impact of the 2012 coinsurance agreement with PAR U and the impact of our annual review and update of assumptions, as discussed above.
- A decrease of approximately $923,000 in asset-based fee revenue in 1997 compared to 1996. This decrease is primarily a result of the sale of the rights to certain future asset-based fee revenues for its Virginia-based client at the end of 1996.
As of December 31, 1997, the Company had cash and cash equivalents of approximately $4,262,000, a decrease of $421,000 from $4,683,000 in cash and cash equivalents at December 31, 1996.
- A $431,000 federal income tax refund and payment of the $300,000 remaining balance of the proceeds from the sale of rights to future asset-based fees in 1996.
Management and the Board are actively seeking an appropriate business combination opportunity for the Company. In the alternative, management and the Board are looking for an investment opportunity for the Company to invest some or all of its remaining liquid assets. In the interim, the Company's cash assets are invested in government securities, mutual funds and cash equivalents. If the Company does not find an operating entity to combine with, and if its assets are not invested in certain types of securities (primarily government securities), it may be deemed to be an investment company under the terms of the Investment Company Act of 1940, as amended. The Board intends to take defensive steps to avoid inadvertent application of the Act to the Company and the attendant additional regulatory requirements.
CONSOLIDATED BALANCE SHEETS. . . . . . . . . . . . . . . . . . . . . . . . . .17
In 1983, the Company adopted a Stock Option Plan (the "1983 Plan") pursuant to which options to purchase an aggregate of 1,000,000 shares of Common Stock could be granted to directors, officers and key employees. The 1983 Plan expired by its terms in November 1993, and there were no options outstanding under the 1983 Plan as of December 31, 1997. In 1993, the Company adopted the 1993 Executive Stock Option Plan (the "Executive Plan") pursuant to which options to purchase an aggregate of 750,000 shares of Common Stock may be granted to officers and directors of the Company and its subsidiaries and the 1993 Employee Stock Option Plan (the "Employee Plan") pursuant to which options to purchase an aggregate of 750,000 shares of Common Stock may be granted to employees of the Company and its subsidiaries (collectively, the "1993 Plans" and, together with the 1983 Plan, the "Plans"). Under the Plans, incentive stock options, as defined in section 422A of the Internal Revenue Code, or non-qualified stock options may be granted. Non-employee directors receive formula grants of options pursuant to the Executive Plan.
Massachusetts. In April 2010, we began offering an individual insurance product, under the names of Commonwealth Choice and CeltiCare Direct, for residents who do not qualify for other state funded insurance programs.
Additionally, we contract with independent actuaries to review our estimates on a quarterly basis. The independent actuaries provide us with a review letter that includes the results of their analysis of our medical claims liability. We do not solely rely on their report to adjust our claims liability. We utilize their calculation of our claims liability only as additional information, together with management’s judgment, to determine the assumptions to be used in the calculation of our liability for medical costs.
As mentioned above, during 2011, we reclassified certain Medical Costs and G&A Expenses to more closely align with the new NAIC definitions. We have reclassified all periods presented to conform to the new presentation of medical costs. The table below presents the impact of the reclassification on consolidated G&A Expense and the G&A expense ratio for the years ended December 31, 2011, 2010 and 2009.
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, 2011, our investment portfolio consisted primarily of fixed-income securities with an average duration of 2.0 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.
Emergency department, or ED, program designed to collaboratively work with hospitals to steer non-emergency care away from the costly ED setting (through patient education, on-site alternative urgent care settings, etc.)
The Company recognizes interest accrued related to unrecognized tax benefits in the provision for income taxes. Interest accrued, net of federal benefit, was $1,157, $707 and $1,072 as of December 31, 2011, 2010 and 2009, respectively. No penalties have been accrued.
Option activity for the year ended December 31, 2011 is summarized below:
There are several standard indices published on a daily basis that measure performance of selected components of the U.S. equity market. Examples include the Dow Jones Industrial Average ("Dow"), NASDAQ Composite Index ("NASDAQ") and the Standard & Poor's 500 Composite Stock Price Index ("S&P Index"). Despite a rebound in the U.S. equity market during the fourth quarter 2001, all three indices closed significantly lower from their respective levels at December 31, 2000. During 2001, the Dow, NASDAQ and S&P Index decreased 7.1%, 21.1% and 13.0%, respectively. Although the investment performance in the underlying mutual funds supporting ML of New York's variable products do not replicate the returns on any specific U.S. equity market index; investment performance will generally increase or decrease with corresponding increases or decreases in the overall U.S. equity market.
Policy charge revenue increased $3.2 million (or 19%) during 2000 as compared to 1999 primarily due to an increase in average variable account balances. Average variable account balances increased $138.9 million (or 15%) during 2000 as compared to 1999. During the same time period, asset based policy charges increased $1.7 million (or 17%) consistent with the growth in the separate accounts assets. Non-asset based charges increased $1.5 million (or 22%) as compared to 1999 primarily due to increases in cost of insurance charges and deferred policy load revenue and a decrease in market value adjustment expense on the modified guaranteed annuity product.
The following selected financial data for each of the five years in the period ended December 31, 2003, are derived from the audited consolidated financial statements. The data as of December 31, 2003 and 2002, and for the three years ended December 31, 2003, should be read in conjunction with the consolidated financial statements, related notes and other financial information included herein.
The Assumption Agreement also requires Security National Life to issue a certificate of assumption for each policy in force included in the Reinsured Business, reinsuring such policies according to the terms thereof, provided that Security National Life may be subrogated to and substituted for all rights, privileges and interests accruing under such policies, and provided further that all obligations and liabilities assumed by Security National Life are
The Company's off-balance sheet arrangements consist of operating leases for rental of office space and equipment.
Consolidated Statement of Earnings, Years Ended December 31, 2003, 2002, and 2001..........................................................40
December 31, 2003 2002 ----- ---- Current $18,585 $45,702 Deferred 10,896,260 8,058,180 ----------- ----------- Total $10,914,845 $8,103,882 =========== ===========
A portion of the life insurance income earned prior to 1984 was not subject to current taxation but was accumulated for tax purposes, in a "policyholders' surplus account." Under provisions of the Internal Revenue Code, the policyholders' surplus account was frozen at its December 31, 1983 balance and will be taxed generally only when distributed. As of December 31, 2003, the policyholders' surplus accounts approximated $4,500,000. Management does not intend to take actions nor does management expect any events to occur that would cause federal income taxes to become payable on that amount. However, if such taxes were accrued, the amount of taxes payable would be approximately $1,500,000.
Outstanding at December 31, 2001 772,063 $2.02 - $3.59 Dividend 21,077 Granted 185,250 Expired (190,018) Exercised (283,703) -------------
The "Acquisition of Company Stock held in Escrow" above is held in escrow and voted by trustee until the balances shown under Note 6 "Notes and Contracts Payable" in the amounts of $200,000 and $482,620 are paid per terms of the agreement and promissory note.
Receivables: Receivable from Affiliates 10,680,182 10,662,465 Other (107,403) (74,653) ------------ ------------ Total receivables 10,572,779 10,587,812 ------------ ------------
In terms of legal environment, China has established the Assurance Law framework based on two basic legislations, known as the "Contract Law" and the "Civil Law", the whole framework is further pivoted on the "Assurance Law" as supplemented by the Judicial Interpretation. The “property law”, the” PRC company law”, etc are supplements to the more perfect legal system.
All of the registered legal equity owners of CCG irrecoverably grant and entrust with their voting rights and vote on their behalf on all matters they are entitled to vote on, under the laws of the PRC and the Articles of Association of CCG.
In June 2011, the FASB issued ASU No. 2011-05 regarding the presentation of comprehensive income. This new guidance amends the previous application of comprehensive income and the requirements regarding presentation in the financial statements. It requires the disclosure of the components of comprehensive income, which the Company currently discloses in other sections of its filings, to be presented as part of one statement of comprehensive income, or as a separate statement of comprehensive income following the statement of earnings. In December 2011, the FASB issued ASU No. 2011-12 which temporarily defers those changes in ASU No. 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. This guidance is effective for fiscal years (and interim periods within such years) beginning after December 15, 2011. The Company is currently evaluating the impact the adoption will have on its consolidated financial statements.
For the years ended December 31, 2011 and 2010, there was no single vendor who accounted for 10% or more of the Company’s purchases.
As of December 31, 2011, the Company has future minimum rent payments due under various non-cancelable operating leases in the next four years, as follows:
Based on weighted average diluted common shares outstanding of 40.8 million, 41.6 million, 43.8 million, 45.8 million and 49.1 million for 2017, 2016, 2015, 2014 and 2013, respectively.
Our net income was $469.0 million, $996.3 million and $977.9 million in 2017, 2016 and 2015, respectively. The changes were primarily driven by the financial component fluctuations explained above.
Capital. Shareholders' equity at December 31, 2017 and December 31, 2016 was $8,369.2 million and $8,075.4 million, respectively. Management's objective in managing capital is to ensure its overall capital level, as well as the capital levels of its operating subsidiaries, exceed the amounts required by regulators, the amount needed to support our current financial strength ratings from rating agencies and our own economic capital models. The Company's capital has historically exceeded these benchmark levels.
In addition to our cash flows from operations and liquid investments, we also have multiple credit facilities that provide up to $200.0 million of unsecured revolving credit for liquidity but more importantly provide for up to $600.0 million and £145.0 million of collateralized standby letters of credit to support business written by our Bermuda operating subsidiaries.
Effective November 9, 2016, Everest International renewed its credit facility with Lloyds Bank plc ("Everest International Credit Facility"). The current renewal of the Everest International Credit Facility, along with a May 17, 2017 amendment, has a four year term and provides up to £145.0 million for the issuance of standby letters of credit on a collateralized basis. The Company pays a commitment fee of 0.1% per annum on the average daily amount of the remainder of (1) the aggregate amount available under the facility and (2) the aggregate amount of drawings outstanding under the facility. The Company pays a credit commission fee of 0.35% per annum on drawings outstanding under the facility.
Presentation and Disclosure of Net Periodic Benefit Costs. In March 2017, FASB issued ASU 2017-07 which outlines guidance on the presentation of net periodic costs of benefit plans. The new guidance requires that the service cost component of net periodic benefit costs be reported within the same line item of the statements of operations as other compensation costs are reported. Other components of net periodic benefit costs should be reported separately. Footnote disclosure is required to state within which line items of the statements of operations the components are reported. The guidance is effective for annual and interim reporting periods beginning after December 15, 2017. The Company does not expect the adoption of ASU 2017-07 to have a material impact on its financial statements.
The following are earlier events which notably affected results of operations for fiscal years covered by the consolidated financial statements contained elsewhere in this annual report.
In fiscal 1998, based on an evaluation of the net recoverable value of the Company's investment in PhilCare, a Pennsylvania HMO that was 49% owned by a wholly owned subsidiary of the Company, the Company recorded a full impairment loss against its $2.1 million investment. PhilCare was dissolved in fiscal 2000. PhilCare assets were then distributed to such subsidiary pursuant to agreements under which it contributed those assets, and the Company recovered its $2.1 million investment in PhilCare, resulting in a gain in that amount for fiscal 2000.
OmniCare-TN experienced a combination of circumstances in the fourth quarter of fiscal 2002 which were unexpected and not foreseeable by management. Beginning in February, March and April 2002, OmniCare-TN noticed increases in its claims payments, investigated, and found that approximately 9,500 new members added in September-December 2001 represented children with special needs with medical costs over 100% of the premiums received, and that many members transferred to OmniCare-TN from failed MCOs also had medical costs in excess of OmniCare-TN's premiums received. Beginning in April 2002, OmniCare-TN wrote to TennCare seeking risk adjustments and reimbursements to compensate OmniCare-TN for such medical expenses, including for actuarially estimated claims incurred but not yet reported to OmniCare-TN.
Net earnings were $5.2 million, or $0.75 per basic share, in the fiscal year ended June 30, 2003 compared to a net loss of $11.0 million, or $1.60 per basic share, in the fiscal year ended June 30, 2002. Such increase in net earnings is principally due to OmniCare-TN's contractual amendment with TennCare offset by the loss from discontinued operations, described above.
FIN 46, "Consolidation of Variable Interest Entities, an interpretation of ARB 51," was issued. The primary objectives of FIN 46 are to provide guidance on the identification and consolidation of variable interest entities, or VIE's, which are entities for which control is achieved through means other than through voting rights. The Company has completed an analysis of FIN 46 and has determined that it does not have any VIEs.
The principal executive offices of the Company are located in Schaumburg, Illinois in a building purchased by the Company in January 1994. The Company, through a subsidiary, owns three buildings in Rockford, Illinois. The Company believes these facilities will adequately serve its needs for the foreseeable future and could accommodate expansion of the Company's business. The Company, through another subsidiary, also owns a building in the Dallas, Texas metropolitan area which currently serves as the main administrative office for the Company's small business market of the Health Insurance unit. The Company leases the office of its other regional service centers. The executive and administrative offices of Manhattan National Life are located in Cincinnati, Ohio in leased space.
future, the Company would consider alternative financing arrangements or discontinue its agent advancing program.
In July 1993 the Company issued $57.5 million of 8% convertible subordinated debentures due 2000. Interest on the debentures is payable in January and July of each year. Net proceeds from the offering totaled approximately $54 million. The debentures are convertible into the Company's common stock at any time prior to maturity, unless previously redeemed, at a conversion price of $11.75 per share. The proceeds were used in part to repay the $15,000,000 and $10,000,000 term loans outstanding.
December 31, 1993 December 31, 1992 Estimated Estimated Carrying Fair Carrying Market Value Value (1) Value Value (1) Inverse floaters and interest only CMO tranches $ 18,954 $ 16,003 $ 30,810 $ 24,632 Accrual bonds: U.S. government agency 6,968 7,386 7,852 8,215
We also operate from approximately 1,700 administrative, data processing, claims handling and other support facilities in North America, Europe and the Far East. Approximately 5,600,000 square feet are owned and 8,600,000 are leased. Our approximately 12,000 sales facilities are normally leased directly by our agents. Only major facilities are owned and these are in the United States and Canada. In almost all cases, lease terms are for five years or less.
The major components of operating cash flows are premiums and investment income while policy benefits are the most significant cash outflow. In 2002, BNLAC collected approximately $40.7 million of premiums and annuity deposits (gross before reinsurance) and $1,114,387 of investment income. Another source of cash flow in 2002 was overwrite commissions of $460,023 on vision products. At the same time the Company paid $26,056,135 in policy benefits.
Effective September 30, 2002, the Company elected to change its accounting treatment for approximately $11.6 million of debt securities in its investment portfolio in accordance with SFAS No. 115. These securities, formerly accounted for as "Available for Sale" and reflected in the financial statements at market value, will be accounted for as "Held to Maturity". This reclassification requires the Company to report the bond's value on the Balance Sheet at fair market value at the date of reclassification. In accordance with SFAS No. 115, $1,817, the combined total of the unrealized holding gains and losses and the unamortized premium and discounts at the date of reclassification, will be amortized against income over the remaining life of the bonds. The unrealized holding gains and losses of $33,444, reflected as a component of "Accumulated Other Comprehensive Income" in Stockholders Equity on the reclassification date, will also be amortized to income over the remaining life of the bonds.
Net investment income was $1,148,225 in 2002, $1,029,457 in 2001, and $888,238 in 2000, an increase of 12% in 2002 and 16% in 2001. The Company used its positive operating cash flow to increase its fixed maturity investment portfolio in 2001. In 2002, several of the Company's investment in fixed maturities decreased due to government agency bonds that were called and reinvested in short term investments.
Taxes other than on income were $1,331,528 in 2002, $1,233,806 for 2001 and $1,084,528 for 2000. The increase each year was due to the premium taxes on the increased insurance premiums collected.
The Board of Directors proposes to the General Meeting on 25 June 1999 to increase the dividend payment to CHF 48, up from CHF 44 per share last year. In addition, the Board of Directors has authorised the company to repurchase an additional CHF 1 billion in shares, subject to market conditions.
Appointments Committee 3 Member of the Finance and Risk Committee 4 Member of the Investments Committee 5 Member of the Shareholder Relations
In June 1998 the Swiss Re Capital Partners division was formed to enhance Swiss Re’s direct equity investment activity and support the core reinsurance business through expanded investment capability. Swiss Re Capital Partners manages Swiss Re’s minority equity investments and oversees its interest in Securitas Capital and the recently acquired Fox-Pitt, Kelton Group. Securitas 5 Swiss Re Group
Swiss Re’s North American non-life premium volume increased, influenced significantly by a single large transaction.The US insurance and reinsurance industry was affected by large catastrophe losses, which rose sharply from USD
Most insurance policies do not cover Year 2000 related failures, but it is anticipated that US lawyers will seek coverage for some of these claims. Most Canadian insurers are relying on a “date recognition” clarification/exclusion to limit their loss exposure.
The recent good results in credit and surety business continued to attract reinsurance capacity which has produced an unfavourable effect on rates and reinsurance terms and conditions.
CHF millions CHF EUR GBP USD CAD Other Total 28 Swiss Re Group
Only the balance-sheet values of Swiss Re Italia S.p.A. (former Unione Italiana di Riassicurazione) were consolidated in full in the previous year. In the year under review, the profit and loss account is also fully consolidated.
Total taxes according to profit and loss account 795 607 31 Swiss Re Group
Other assets include a deferred tax credit of CHF 975 million (1997: CHF 629 million).
These consolidated financial statements are the responsibility of the Board of Directors. Our responsibility is to express an opinion on these consolidated financial statements based on our audit.We confirm that we meet the legal requirements concerning professional qualification and independence.
Contingent liabilities, mainly towards Group companies, amounted on 31 December 1998 to CHF 2024 million (1997: CHF 2248 million). In addition there were fourteen unlimited guarantees; ten of these are for obligations towards Group companies. No payments are expected under these guarantees.
The current account obligations towards employee pension funds amounted to CHF 25 million on the 1998 balance-sheet date (1997: CHF 42 million).
Swiss Re Life & Health Limited d 100 f GBP 500.7 451.7
e th o d o f co n so li d a ti o n rr e n cy su lt i n m il li o n s a re h o ld e rs ’
Combined ratio non-life Operating ratio non-life Return on investment Technical provisions ratio non-life Asset leverage Return on equity * refer to glossary for definition 1 not including Mercantile & General Re 2 not including Swiss Re Italia 3 before offset of goodwill from acquisitions made since 1 January 1996 56 Swiss Re Group
Premium Beserve from 1926 Reserve for unsettled Claims from 1926 . . . . Reserve for extraordinary Losses Premiums, less cancellations . ,
Our goal in our reinsurance strategy is to equalize the liquidity requirements imposed by most severe insurable events and by all other insurable events we manage in the normal course of business. Please see “Reinsurance Agreements” under “Item 1. Business” for a more detailed description of our reinsurance agreements and strategy.
Prepaid reinsurance premiums decreased $2.1 million, or 19.9%, to $8.3 million as of December 31, 2011, compared with $10.4 million as of December 31, 2010. The change is due to $0.6 million of ceded premiums, net of payments to reinsurers, reduced by $2.7 million amortization of prepaid reinsurance premiums associated with our reinsurance programs. We believe concentrations of credit risk associated with our prepaid reinsurance premiums are not significant.
Net premiums earned increased $3.4 million, or 7.7%, to $48.5 million for 2011, compared with $45.1 million for 2010. The following table denotes net premiums earned by product line.
We believe that our current capital resources will be sufficient to meet currently anticipated working capital requirements. There can be no assurances, however, that such will be the case. We continue to evaluate our liquidity and the possibility that we may require additional working capital.
We internally process claims made by our insureds through our wholly owned claims adjusting company, Superior. Until June 2011, we offered premium financing to our own and third-party insureds through our wholly owned subsidiary, Federated Premium.
Other recent accounting pronouncements issued by the FASB, the American Institute of Certified Public Accountants (“AICPA”), and the Securities and Exchange Commission ("SEC") did not or are not believed by management to have a material impact on the Company’s present or future financial statements.
The managing general agency fees payable by the Merged Company to Assurance MGA, a wholly owned subsidiary of the Company, which were traditionally 6% of gross written premium, were reduced and will not exceed 4% without prior approval from the Florida OIR. The Merged Company has lowered the fee to 2% of gross written to further support the Federated National’s results of operations. This will have no impact on the Company’s consolidated financial results.
The consolidated financial statements in the 2001 Annual Report included as Exhibit 13, and listed in Item 14 of this Report, are incorporated herein by reference.
The financial statements of the Company and its consolidated subsidiaries, included on pages 1 through 25 of the Reliance Financial 1994 Annual Report, which information is incorporated herein by reference, are listed in Item 14 below.
The Clinton Administration has recently made various proposals in the area of health insurance and health care reform. These proposals, along with various alternative proposals, are currently being considered by Congress. Based on the Administration's current proposals, it does not appear that Torchmark's Medicare Supplement business will be affected.
Torch Energy and its subsidiaries are also involved in asset management and well operations. Revenues in these categories also increased in each period. Assets under management increased from $929 million at year-end 1991 to $1.2 million at year-end 1992 and 1993.
TORCHMARK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATE)
Investments. Investments in fixed maturities include bonds and redeemable preferred stocks. These fixed maturity investments are segregated as to those which are available for sale and those which are held to maturity. In 1993, Torchmark chose to classify all of its fixed maturity investments as available for sale. These investments are carried at market value with unrealized gains and losses, net of deferred taxes, reflected directly in shareholders' equity. In 1992, the investments which were classified as available for sale were carried at the lower of cost or market with unrealized losses, net of deferred taxes, reflected in shareholders' equity. Fixed maturities held to maturity are carried at amortized cost.
The significant components of deferred income tax expense before the cumulative effect of the change in accounting principles and adjustments to shareholders' equity for the year ended December 31, 1993 are as follows:
Level 2 - Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly
The Company’s consolidated financial statements are reported in U.S. dollars. Assets and liabilities denominated in foreign currencies were translated to U.S. dollars, the reporting currency, at the exchange rates in effect on the balance sheet date. Revenue and expenses denominated in foreign currencies were translated to U.S. dollars using a weighted-average rate for the relevant reporting period. Cumulative translation adjustments of $0.1 million, $0.4 million, and $0.4 million were recorded in accumulated other comprehensive loss as of December 31, 2017, 2016, and 2015, respectively.
assumed by the Company through a fronting and reinsurance agreement. Premiums are recognized and earned pro rata over the
New York law restricts the ability of the Company's insurance subsidiary in New York to pay dividends to its holding company parent. These restrictions are based in part on the prior year’s statutory income and surplus. In general, dividends up to specified levels are considered ordinary and may be paid without prior approval, and dividends in larger amounts, or extraordinary dividends, are subject to approval by the New York State Department of Financial Services, the subsidiary's primary regulator. An extraordinary dividend or distribution is defined as a dividend or distribution that, in the aggregate in any 12-month period, exceeds the lesser of (i) 10% of surplus as of the preceding December 31 or (ii) the insurer’s adjusted net investment income for such 12-month period, not including realized capital gains. Under regulatory requirements at December 31, 2017, the amount of dividends that may be paid by the Company’s insurance subsidiary in New York to the Company without prior approval by regulatory authorities was $0.2 million. This insurance subsidiary did not pay dividends to the Company during the years ended December 31, 2017, 2016, and 2015.
In conjunction with guidance issued by the FASB, the Company reclassified $248.4 million of its held-to-maturity securities to available-for-sale, recognizing $10.4 million in gross unrealized gains. The Company had no held-to-maturity securities at December 31, 1995.
The Company currently leases its corporate offices in Southfield, Michigan from 26600 Development Associates Limited Partnership. In 1996, the Company paid rent in the amount of approximately $660,000. The term of the lease for the offices in Southfield expires on September 30, 2004. The Company, through its subsidiaries, is also a party to various leases for locations in which such subsidiaries have offices. The Company does not consider any of these leases to be material.
The information required by this item is incorporated by reference to pages 27 to 47 of the Company's 1996 Annual Report to Shareholders.
The financial statements have, in management’s opinion, been properly prepared within the framework of the significant accounting policies summarized below:
On March 7, 2012, the Company issued 1,428,570 common shares pursuant to subscription agreements at $0.70 per share for total share proceeds of $200,000.
On May 31, 2013 the Company received $23,775 pursuant to a share subscription agreement to acquire 43,228 common shares at $0.55 per share. The Company received Cdn$25,000 as subscription proceeds.
Total premiums estimated on quota share reinsurance contracts for the years ended December 31, 2015, 2014 and 2013 represented approximately 12%, 15% and 16%, respectively, of consolidated gross premiums written.
The following table shows the pricing sources of our fixed maturity investments held as of December 31, 2015 and 2014:
Events affecting a reporting unit such as a change in the composition, or carrying amount of its net assets or a more-likely-than-not expectation of selling or disposing all, or a portion, of a reporting unit, the testing for recoverability of a
The foreign exchange loss increased by $10.3 million, for the year ended December 31, 2015 compared to the year ended December 31, 2014. The increase was the result of a loss recorded to the close out of the foreign currency forward contract we entered into to economically hedge a portion of our foreign currency exposure related to the consideration paid for the Hong Kong and Singapore operations of RSA and the strengthening of the U.S. dollar relative to other major currencies during the
Other income represents the revenue of our third-party claims administration services that we acquired in 2014.
During the year ended December 31, 2014, we incurred $50.0 million of catastrophe-related losses while during the year ended December 31, 2013, we incurred $13.5 million of catastrophe-related losses related to Typhoon Fitow in China. The $50.0 million of catastrophe-related losses in 2014 related to a hailstorm in Brisbane, Australia ($12.5 million), PCS storm #45 ($12.5 million), Windstorm Ela ($12.0 million), Typhoon Rammasun ($10.0 million) and Hurricane Odile ($3.0 million).
As of December 31, 2015, we had $150 million available under our revolving loan facility.
($ IN THOUSANDS) insurance contracts, which are considered universal life-type contracts. The Company also sells long-duration contracts that do not involve significant risk of policyholder mortality or morbidity (principally single and flexible premium fixed and variable annuities and structured settlement annuities when sold without life contingencies), which are considered investment contracts. Limited payment contracts (policies with premiums paid over a period shorter than the contract period) primarily consist of group annuities and structured settlement annuities, when sold with life contingencies.
The Company's contribution to The Savings and Profit Sharing Fund of Allstate Employees was $141 in 1995. The costs to the Company prior to the Distribution and the split from the Savings and Profit Sharing Fund of Sears Employees were $123 and $176 in 1994 and 1993, respectively.
(c) Source: Best's Aggregates & Averages, Property/Casualty, 2000 Edition. Industry Combined Ratios may not be fully comparable as a result of, among other things, differences in geographical concentration and in the mix of property and casualty insurance products.
Salaries expense in 2000 reflects an increase in employees, primarily at the banking and lending segment.
PROPERTIES. - ------- ----------- The Company does not own any real property. Lease costs of the Company's office facilities in Oak Brook, Illinois, and Bismarck, North Dakota, which total approximately $293,000 and $300,000 annually, are included as expenses under the pooling agreement. Expenses of office facilities owned and leased by Employers Mutual are borne by the parties to the pooling agreement, less the rent received from the space used and paid for by non-insurance subsidiaries and outside tenants. See "Property and Casualty Insurance - Pooling Agreement" under Item 1 of this Form 10-K.
Amortization of deferred policy acquisition expenses increased from $23.4 million at December 31, 2015 to $28.5 million at December 31, 2016 primarily due to the higher surrender activity.
Endowment product sales have been on the rise and represented approximately 77.1% of new sales in the life segment in 2016. The Company currently offers a fifteen and twenty year endowment and our top selling endowment is a product that matures at age sixty-five. The Company repriced its top six selling international products at the end of 2016 to increase profitability.
Claims and Surrenders. As noted in the table below, claims, benefits and surrenders increased from $78.9 million in 2015 to $81.4 million in 2016.
Amortization of DAC totaled $28.5 million, $23.4 million and $21.1 million in 2016, 2015 and 2014 primarily due to the higher surrender activity, including early duration elections to convert to reduced paid up ("RPU") or extended term insurance ("ETI") in 2016. There are higher deferred acquisition costs associated with early duration conversions to RPU or ETI, which, when converted, increases amortization expense. Amortization of deferred policy acquisition costs is impacted by persistency and the higher level of surrenders is impacting our amortization.
Realized Investment Losses, Net. In 2016 and 2015, the Company recognized losses on other-than-temporary impairments totaling $2.3 million and $3.8 million, respectively, related to bond and mutual fund holdings. Realized losses of $0.2 million in 2014 were recognized due to the write-down and sale of mutual fund holdings.
Death claims expense decreased 14.0% in 2016 compared to 2015 and increased 25.3% in 2015 compared to 2014. No unusual trends have been noted in our claims experience, except we did experience several higher value claims in the first quarter of 2015, which drove the 2015 increase. Mortality experience is closely monitored by the Company as a key performance indicator and these amounts were within expected levels.
Increase in Future Policy Benefit Reserves. Policy benefit reserves in 2016 decreased compared to the same period in 2015, primarily as a result of the higher surrenders and slightly lower new sales as noted above.