The Company's assets at December 31, 1996 included $19.6 million in short-term investments which are readily convertible to cash without market penalty and an additional $94.3 million of fixed maturity investments maturing in less than one year. The Company believes that these liquid investments, plus the expected cash flow from current operations, are more than sufficient to provide for projected claim payments and operating cost demands. In addition, the Company's reinsurance program is structured to avoid serious cash drains that might accompany catastrophic losses. In the event competitive conditions continue to produce inadequate rates and the Company chooses to further reduce volume, the Company believes that the liquidity of its investment portfolio would permit it to continue to pay claims as settlements are reached without requiring the disposal of investments at a loss, regardless of interest rates in effect at the time.
Short-term and other investments include holdings in money-market accounts which were managed by or purchased through companies affiliated with certain directors of the Company. Other investments includes $2,237 and $2,594 at December 31, 1996 and 1995, respectively, representing limited partnership interests in ventures in which Amli Realty, Inc. (Amli) serves as general partner. Three directors of the Company are also directors and/or officers of Amli.
NOTE D - LOSS AND LOSS EXPENSE RESERVES (CONTINUED) The reserves for losses and loss expenses on continuing operations, net of related reinsurance recoverables, at December 31, 1995, 1994 and 1993 were decreased by $12,245, $5,484 and $22,856, respectively, for claims that had occurred on or prior to those dates. These decreases are the result of the settlement of claims at amounts lower than previously reserved and changes in estimates of losses incurred but not reported as part of the normal reserving process. Development during 1996 and 1995, on reserves outstanding at December 31, 1995 and 1994 included $2,395 and $7,575, respectively, of incurred losses and loss expenses related to environmental damage claims. Reported cases relate primarily to policies issued in the 1970's to one account which was involved in the business of hauling and disposing of hazardous waste. Included in the above loss and loss expense incurred amounts are reserves for incurred but not reported environmental losses of $5,000 and $3,000 at December 31, 1996 and 1995, respectively. Adjusted for environmental claims, management believes that the more favorable than anticipated experience may be attributable, at least in part, to changes in trucking safety in general resulting from the implementation of the national commercial driver license, mandatory drug testing and an increased awareness by trucking companies of the cost of unsafe operations. It is further believed that the Company's selection techniques, minimum safety standards and claims handling have also contributed to the current favorable loss experience. These trends were considered in the establishment of the Company's reserves at December 31, 1996.
1996 1995 1994 -------------------------- Trucking and trucking related 66% 76% 77% Voluntary reinsurance assumed 16 20 19 Private passenger automobile 16 3 - Residual market assumed & assigned risk 2 1 4