felanders/preprocessed huggingface dataset:
General and administrative expenses for the twelve months ended December 31, 1996, increased $2,841, or 21.1%. This was due primarily to the acquisition of First American. The acquisition had a slightly higher ratio of general and administrative expenses to revenues than the Company had prior to the acquisition. In addition, the goodwill expense of $312 attributable to the acquisition for the period following the purchase on September 27, 1996, is included in general and administrative expenses. Excluding the impact of the acquisition and the associated goodwill expense, the ratio of general and administrative expenses to revenues improved slightly to 19.0% from 20.1% for the twelve months ended December 31, 1996, compared to the same period of 1995.
Income Tax Expense (Benefit). Income tax expenses were $94.7 million, $191.9 million and $203.6 million in 2016, 2015 and 2014, respectively. Income tax expense is primarily a function of the geographic location of the Company's pre-tax income and the statutory tax rates in those jurisdictions, as affected by tax-exempt investment income and foreign tax credits.
The weighted-average number of common shares outstanding for computing basic and fully diluted EPS for the years ended April 30, 2014 and 2013 were 2,390,083 and 2,390,083, respectively.
The goodwill impairment analysis is a two-step test. The first step (Step #1), used to identify potential impairment involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. The Company has estimated fair values of reporting units based on a discounted cash flow analysis and market approach using historic, normalized actual and forecast results. The discounted cash flow analysis utilizes thirty years of projected cash flows for the insurance company operations. The projected financial results are created from critical assumptions and estimates based upon management’s business plan and historical trends, while giving consideration to the overall economic environment. Determining fair value requires the exercise of significant judgments about appropriate discount rates, business growth rates, the amount and timing of expected future cash flows and market information relevant to our overall company value.
Results of insurance operations. NLASCO’s underwriting gain or loss consists of net premiums earned, less loss and LAE and policy acquisition and other underwriting expenses. NLASCO’s underwriting performance is one of the most important factors in evaluating the overall results of operations given the fluctuations that can occur in loss and LAE due to weather related events, as well as the uncertainties involved in the process of estimating reserves for losses and LAE. The underwriting results and fluctuations in other revenue and expense items of NLASCO are discussed in greater detail below. The following table shows the underwriting gain or loss, as well as other revenue and expense items included in the financial results of NLASCO for the year ended December 31, 2011 and 2010 (in thousands).
We paid $12,511 of settlement expenses for various legal action or claims in fiscal 2014. In fiscal 2013 we recovered non-recurring settlement expenses of $104,453. Settlement expenses in fiscal 2012 were $613,374.
Investment and Assignment of Interest in Life Settlement Trust - We have an investment in a life settlement trust, which we believe owns a portfolio of 228 life insurance settlements with a face value of $610.5 million. Our investment was recorded at $6,648,478 as of February 28, 2014. Our earnings from the trust were $114,886, $458,377 and $28,807 in fiscal 2014, 2013 and 2012, respectively. In fiscal 2014, we assigned our distribution rights, subject to a reversionary interest, to unaffiliated third parties, in exchange for net proceeds of $5,254,500. Until and unless the reversionary interest arises, we will not receive further distributions from the trust. The trust has defaulted on certain secured borrowings and the lender has instituted proceedings to foreclose its security interest in the trust’s assets and take the assets in satisfaction of the loan. We, along with the other limited partners and general partner of the trust, have retained legal counsel to represent our interests. We believe the carrying value we have recorded will be fully realized in the future. See Footnote 10 to the Consolidated Financial Statements.
The Company believes its facilities have been generally well maintained, are in good operating condition. The Company believes with its move to the new facilities during 1999, the facilities are sufficient for our current and projected future requirements.
As of December 31, 2000, the Company operated 214 restaurants in the areas listed below. The Company's land and building leases are generally, although not always, for terms of 20 years with one or more five-year renewal options. Certain of the leases require the payment of additional rent equal to a percentage of annual sales in excess of specified amounts.
Restaurant costs and expenses include all direct operating costs, including direct labor, occupancy costs, advertising expenses, royalty payments, expenditures for repairs and maintenance, and workers' compensation and casualty and general liability insurance costs. Advertising fees paid by the Company's Sybra subsidiary to the Arby's Franchise Association to develop and prepare advertising materials and to undertake marketing research are equal to 0.7% of restaurant sales. In addition, Sybra operates its restaurants pursuant to licenses which require Sybra to pay Arby's, Inc. a royalty based upon percentages of its restaurant sales (presently an aggregate of approximately 3.2% of Sybra's restaurant sales). The royalty rate for new Arby's restaurants (currently 4.0%) will result in an increase in the aggregate royalty rate for Sybra as new Arby's restaurants are opened.
GENERAL AND ADMINISTRATIVE--General and administrative costs and expenses were $11.4 million, or 7.9% of sales, for 1999 as compared to $8.9 million, or 6.8% of sales, for 1998. The increase was primarily due to the increase in regional staff levels to support the Company's newly opened Arby's units, including expanded real estate development.
Health care costs continue to rise at a faster rate than the Consumer Price Index. The Company uses various strategies to mitigate the negative effects of health care cost inflation, including setting commercial premiums based on its anticipated health care costs, risk-sharing arrangements with the Company's various health care providers, and other health care cost containment measures including member co-payments. There can be no assurance, however, that, in the future, the Company's ability to manage medical costs will not be negatively impacted by items such as technological advances, competitive pressures, applicable regulations, increases in pharmacy costs, utilization changes and catastrophic items, which could, in turn, result in medical cost increases equaling or exceeding premium increases.
In connection with its acquisition of North East, on September 23, 1999, the Registrant issued $10 million of Convertible Subordinated Debentures ("Debentures"), in one series, under a plan previously approved by its shareholders. For more information on the Debentures, please refer to Note H in the Notes to Consolidated Financial Statements.
Net income was $4,454 million compared with $3,962 million in 2018.
The estimate of the liabilities includes provisions for claims that have been reported but are unpaid at the balance sheet date (case reserves) and for obligations on claims that have been incurred but not reported (IBNR) at the balance sheet date. IBNR may also include provisions to account for the possibility that reported claims may settle for amounts that differ from the established case reserves. Loss reserves also include an estimate of expenses associated with processing and settling unpaid claims (loss expenses). Our loss reserves comprise approximately 80 percent casualty-related business, which typically encompasses long-tail risks, and other risks where a high degree of judgment is required.
The following table presents certain information with respect to Republic Indemnity's insurance operations.
Throughout this report (including portions incorporated by reference herein), we present our operations in the way we believe will be most meaningful, useful and transparent to anyone using this financial information to evaluate our performance. In addition to the GAAP presentation of net income, we show certain statutory reporting information and other non-GAAP financial measures that are valuable in managing our business, including underwriting income, gross premiums written, net written premiums and combined ratios. A detailed discussion of these measures can be found on pages 7 through 8 of the 2011 Financial Report to Shareholders, attached as Exhibit 13 and incorporated by reference herein.
The Company neither owns nor maintains any office space or facilities. Rather, the business office for the Company is provided by the Manager and is located at One Financial Place, Collymore Rock, St. Michael, Barbados. The Company believes that these facilities are adequate for its current and anticipated future needs. In addition, the Manager supplies all equipment for the Company.
At December 31, 1999 approximately 10% of the Company's investment portfolio was in a U.S. dollar denominated international equity fund and the remaining 90% was invested in U.S. dollar denominated fixed-income securities. At December 31, 1998, 100% of the Company's investment portfolio was in U.S. dollar denominated fixed income securities.
The Company believes the premium pricing levels established by the Frontier Companies and thus the pricing levels on the premiums assumed by the Company generally take into account inflationary pressures. The Company believes the Frontier Companies, for competitive reasons, are limited in the extent to which they can increase premiums to account for anticipated inflation, and actual inflation may be greater than anticipated. In either event, the Company believes the Frontier Companies, and thus the Company, rather than the insureds, may have to absorb inflation costs.
Consolidated Net Investment Income and Net Realized Capital Gains (Losses). Consolidated net investment income, exclusive of realized and unrealized capital gains and losses, for 1996 was $43.6 million, an increase of $23.7 million, or 119%, over 1995. The improvement reflects the increase in invested assets primarily due to the continued positive cash flow from operations of $14.7 million offset by a decline in the value of marked-to-market investments of $10.0 million. In addition, on June 28, 1996, Chartwell Re received $7.9 million in settlement of the Reserve Indemnification Agreement which further
On June 2, 1998, the Company entered into a settlement agreement with the former shareholders of Cost Review Services, Inc. ("CRS"). CORE acquired CRS in October 1995. The settlement agreement related to an arbitration dispute and included the immediate payment by CORE of $425,000 and the issuance by CORE of promissory notes in the amount of $190,000 payable in twelve monthly installments beginning January 1999. In addition, the Company incurred approximately $121,000 in other costs related to the arbitration (primarily legal and travel expenses).
During 1998, the Company recorded write-offs of goodwill and intangibles totaling $4,085,000 pursuant to its review of long-lived assets. During June 1998, CRS was informed that its principal client (representing nearly 70% of CRS revenues) would not be renewing its contract in October 1998. This information combined with CRS's present operating losses indicated that the net book value of the goodwill and intangibles related to the CRS operations, amounting to $1,935,000, was not recoverable and thus, written-off effective as of June 30, 1998. The Company also determined that an impairment loss existed related to certain identifiable intangibles acquired from SSDC in June 1997. The impairment loss primarily resulted from a significant decline in revenues realized under SSDC's Medicare coordination of benefits program. As it appeared that the decline in revenues would continue, intangibles in the amount of $2,150,000 were written off as of June 30, 1998.
During 1998, the Company recorded $658,000 in charges relating to its termination of operations at two subsidiaries. Effective October 31, 1998, the Company discontinued the operations of CRS. In connection with this action, the Company recorded estimated charges totaling $417,000. CRS provided regional bill audit and workers' compensation case management services to insurance companies and third-party administrators of workers' compensation programs. On December 23, 1998, substantially all the assets and certain liabilities relating to TCM were reacquired by the original seller pursuant to terms set forth in the Asset Purchase Agreement dated March 17, 1998. The Company recorded charges of $241,000 in connection with this transfer. TCM provided regional worker's compensation case management services.
Amortization of intangible assets, deferred policy acquisition costs and unamortized cost assigned to insurance contracts in force, was $4.3 million for 1995, a decrease of $2.5 million or 37% from the prior year. The intangible assets are being amortized over the lives of the policies in relation to the present value of estimated future gross profits. The relatively strong performance of the funds in 1995 has slowed the amortization in 1995 as compared to 1994. Additionally, amortization was increased in 1994 due to the decrease in mortality reserves during 1994.
As of May 22, 1997, the successor entity to ESIF, as described below, became a wholly owned subsidiary to the Company. On such date ESIF completed a conversion from a group self-insurance fund to a stock property and casualty insurance company. Concurrent with this conversion ESIF's name was changed to Bridgefield Employers Insurance Company and the Company, a new holding company, issued $16.4 million of preferred stock to the former policyholders or members of ESIF for the extinguishment of the membership interests. At the same time, in connection with a recapitalization of the Company's corporate structure, all of the capital stock of Summit Holding Corporation ("SHC"), which had been owned by ESIF prior to the conversion, was acquired by the Company and SHC became a wholly subsidiary of the Company.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION AS OF AND FOR THE YEAR ENDED MAY 31, 2009
Interest expense increased from approximately $479,000 in fiscal 2008 to approximately $605,000 in fiscal 2009 due to additional borrowings incurred to pay professional fees and expenses related to the Company's efforts to raise additional capital financing and to provide financing of current operations.
Revenue from the surety insurance segment, consisting of FSC and TSA, was $957,067 for fiscal 2009 as compared with $694,336 for fiscal 2008. Revenues attributable to the insurance segment are as follows:
Insurance policy acquisition costs represent charges to operations for underwriting, commissions, and premium tax attributable to surety polices issued by FSC and are recognized ratably over the period in which premiums are earned. In fiscal 2009 such costs amounted to $153,263 or 23.5% of earned premium as compared with $126,386 or 27.9% in fiscal 2008.
As of January 1, 2005, reinsured, on a 100% quota share basis, a block of $50 million of major medical policies administered by IAC which will be assumed upon receiving regulatory approval;
The financial statements and supplementary data in the 2004 Annual Report to Shareholders are incorporated by reference in this Form 10-K Annual Report.
Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2007 Annual Report to Shareholders is incorporated by reference in this Form 10-K Annual Report.
[S] The combined ratios of the Company increased in 1998, primarily due to the reduction in premium volume at a rate greater than the reduction in net underwriting and other costs. In addition, the reduction in servicing fees in 1998 negatively affected the expense ratios. Included in the Company's results for 1998, 1997 and 1996 were approximately $12.9 million, $8.3 million and $8.1 million, respectively, for reserve strengthening related to losses from prior accident years.
The last General Meeting re-elected Mr. Ernst Froelich and Mr. Hans Schindler to the Board of Directors.
Aerial photograph of Johannesburg. The circle marks the business premises of the Swiss-South African Rein­ surance Company Ltd. Business premises (Swiss House), 86 Main Street, Jo­ hannesburg. The offices of the SSAR are on the 4th floor.
Although the Company has no facilities, it benefits from the facilities of Mutual pursuant to the Management Agreement, under which the Company is charged a proportionate share of the costs of such facilities.
fees, and anticipates a blend of equity and fixed income investments. Management routinely monitors a wide variety of trends in the business, including comparisons of actual and assumed experience. Management reviews and, where appropriate, adjusts its assumptions with respect to customer asset value growth rates on a quarterly basis.
Rates credited to contract owners' accounts are generally reset at shorter intervals than the maturity of underlying investments. Therefore, margins may be negatively impacted by increases in the general level of interest rates. Part of the investment committee's or Board's strategy includes the use of derivatives, such as interest rate caps, swaps and floors, for risk management purposes. These derivatives help protect margins by increasing investment returns if there is a sudden and severe rise in interest rates, thereby mitigating the impact of an increase in rates credited to contract owner's fixed accounts. Conversely, in a low interest rate environment, such as that experienced recently, margins may be negatively impacted as the interest rates available on the Company's investments approaches the guaranteed minimum interest rates on insurance or annuity contracts. This negative impact may be compounded by the fact that many of the Company's interest bearing investments are callable or prepayable by the issuer and calls and prepayments are more likely to occur in a low interest rate environment.
The information set forth under the captions "Consolidated Balance Sheets", "Consolidated Statements of Income", "Consolidated Statements of Cash Flows", "Consolidated Statements of Stockholders' Equity", "Notes to Consolidated Financial Statements" and "Independent Auditors' Report" on pages 15 through 28, inclusive, of the Annual Report, and under the caption "Selected Quarterly Financial Data" on page 9 of the Annual Report, is incorporated herein by reference.
Net loss for year ended December 31, 2014, was $ (193,826) or loss per share of $(0.02) as compared to $(2,104,727) or loss per share of $(0.18), for the comparable year ended December 31, 2013.
Income taxes as a percent of before tax income increased to 31.9% in 1993, compared to 28.8% in 1992. The increase resulted from a combination of an increase in the federal tax rate (from 34% to 35%) prescribed by the 1993 Act and the beneficial effect on 1992 income taxes of recoveries and reductions of previously provided amounts related to prior tax assessments.
16) Impact of Year 2000 computer hardware, software and microprocessors embedded in certain equipment issues on the Company's operations and potential for Year 2000 claims under reinsurance and insurance contracts written by the Company;
The consolidated financial statements and the accompanying notes included in this Annual Report on Form 10-K reflect the historical operations of the Company for the year ended December 31, 1993. The results of operations of TIHI are not included for the year ended December 31, 1993. The Company's consolidated balance sheet and related data at December 31, 1995 and 1994 include TIHI on a fully consolidated basis. The assets and liabilities of the Company (except TIHI) were reflected in the consolidated balance sheet at December 31, 1993 on a fully consolidated basis at management's then best estimate of their fair values. Evaluation and appraisal of assets and liabilities, including investments, the value of insurance in force, other insurance assets and liabilities and related deferred income taxes, was completed during 1994.
The consolidated financial statements include the accounts of the Company and its insurance and noninsurance subsidiaries. Significant intercompany transactions have been eliminated.
TIHI had an investment of $445 million and $231 million in common stock of Travelers at December 31, 1995 and 1994, respectively. This is carried at fair value. At December 31, 1994, Transport had an investment of $35 million in nonredeemable preferred stock of Travelers which was carried at fair value. TIHI had notes receivable from Travelers of $30 million at December 31, 1994, which were carried at cost. The notes were paid during 1995. These assets are included in other investments in the consolidated balance sheet.
A net deferred tax asset valuation allowance of $100 million has been established to reduce the deferred tax asset on investment losses to the amount that, based upon available evidence, is more likely than not to be realized. Reversal of the valuation allowance is contingent upon the recognition of future capital gains in the Company's consolidated life insurance company federal income tax return through 1998, and the consolidated federal income tax return of Travelers commencing in 1999, or a change in circumstances which causes the recognition of the benefits to become more likely than not. There was no change in the valuation allowance during 1995. The initial recognition of any benefit produced by the reversal of the valuation allowance will be recognized by reducing goodwill.
E. Hliriimann, General Manager. P. Alther E. Bebier J. Gailloud A. HoUinger R. Secretan
The Company's primary uses of software systems are for corporate and investment portfolio accounting, as well as investment underwriting and analysis. The Company's current systems have recently been purchased or leased as the Company commenced operations in June 1997 and are believed to be Year 2000 compliant. Therefore, the Company believes that the risk of Year 2000 compliance is not significant as it relates to its computer software systems. The Company has incurred no material costs to date and expects to incur no material costs in the future to make its systems Year 2000 compliant.
Investment income increased approximately $22,000, or 8.7%, to $274,000 in 2016 from $252,000 in 2015. This increase is the result of the increased amount of funds that were invested in both medium duration investment and non-investment grade corporate bonds and short duration investment grade corporate bonds with higher yields during 2016.
Our consolidated cash and short term investments were approximately $13.9 million at December 31, 2017. Our consolidated cash and short term investments increased by approximately $2.2 million from approximately $11.7 million as of December 31, 2016. This increase in cash and short term investments from December 31, 2016 to December 31, 2017 is the result of cash provided by operating activities of approximately $3.6 million. This increase was offset by cash used for investing and financing activities of approximately $1.6 million.
Liabilities for unpaid policy claims are a sensitive accounting estimate unique to the insurance industry. Management uses an independent actuary to formulate this estimate. Differences in the estimates and actual results may result in revised claims expense which is recognized in the period in which the difference is determined. See Note 1, 7 and 11 to our financial statements for the effect on the year 2006.
The Company receives marketing fees from EBI per the marketing agreement mentioned above. The Company received marketing fees of $143,315 in 2006, $115,233 in and $165,275 in 2004. The decrease in marketing fees in 2005 compared to 2006 and 2004 is due to reduced operating income at EBI.
The Company had a realized gain on debt extinguishments of $35,732 in 2006, $102,067 in 2005 and $495,462 in 2004 due to the purchase of debentures payable at less than par value. The Company purchased fewer debentures in 2006 and 2005 than it did in 2004, which resulted in less realized gain in debt extinguishments.
200 S. Wacker Drive, 336,390 245,466 Property, Casualty Insurance Chicago, Illinois Insurance Offices Operations
3501 State Highway 129,965 129,965 Data Processing Systems No. 66, Neptune, Facilities New Jersey - -----------------------
Our largest expense is the cost of behavioral health services that we provide, which is based primarily on our arrangements with healthcare providers. Since we are subject to increases in healthcare operating expenses based on an increase in the number and frequency of our members seeking behavioral care services, our profitability depends on our ability to predict and effectively manage healthcare operating expenses in relation to the fixed premiums we receive under at-risk arrangements. Providing services on an at-risk basis exposes us to the risk that our contracts may ultimately be unprofitable if we are unable to control or otherwise anticipate healthcare costs. Accrued claims payable and claims expense are our most critical accounting estimates. See “Critical Accounting Policies and Estimates” below.
Unrealized gain on investments is $2,375,234 at December 31, 2000 as compared to $154,059 at December 31, 1999. AIG considers all of its investment portfolio to be available for sale and accordingly all investments are reported at market value, with changes in net unrealized gains and losses reflected as an adjustment to accumulated other comprehensive income.
Deferred policy acquisition costs, representing the deferral of ceding commission expense related to premiums not yet earned, decreased from December 31, 1999 along with the increase in unearned premiums. The current ceding commission rate, which became effective August 1, 1995, is 28.5%.
We intend to raise the balance of our cash requirements for the next 12 months from private placements, loans from related parties or possibly a registered public offering (either self-underwritten or through a broker-dealer). If we are unsuccessful in raising enough money through such efforts, we may review other financing possibilities such as bank loans. At this time we do not have a commitment from any broker-dealer to provide us with financing. There is no assurance that any financing will be available to us or if available, on terms that will be acceptable to us. In the absence of such financing, we may not be able to complete a business acquisition and we may be forced to cease our limited operations.
Basic EPS is calculated as income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the “if converted” method for convertible securities and the “treasury stock” method for options and warrants. For the years ended December 30, 2011 and 2010 all securities convertible into common shares were anti-dilutive.
INCOME TAXES AND VALUATION RESERVES: We are required to estimate our income taxes in each of the jurisdictions in which we operate as part of preparing our financial statements. This involves estimating the actual current tax in addition to assessing temporary differences resulting from differing treatments for tax and financial accounting purposes. These differences, together with net operating loss carryforwards and tax credits, are recorded as deferred tax assets or liabilities on our balance sheet. A judgment must then be made of the likelihood that any deferred tax assets will be realized from future taxable income. A valuation allowance may be required to reduce deferred tax assets to the amount that is more likely than not to be realized. In the event we determine that we may not be able to realize all or part of our deferred tax asset in the future, or that new estimates indicate that a previously recorded valuation allowance is no longer required, an adjustment to the deferred tax asset is charged or credited to net income in the period of such determination.
The table above includes the contractual obligations acquired in the purchase of substantially all the assets of NeoStem, Inc. on January 19, 2006.
The number of Trust Shares declined to 212,891,322 as a result of withdrawals by Beneficiaries of Trust Shares, transactions by Beneficiaries under the Purchase and Sale Program and escheatment of unclaimed Trust Shares. The percentage of outstanding shares of Common Stock owned by the Trust at December 31, 2011 decreased to 20.1% as a result of these withdrawals, transactions and escheatments, as well as due to the Common Stock issuances by MetLife, Inc. described above.
In addition, Zenith Insurance and CalFarm Insurance, in the regular conduct of their business, lease offices in various cities. See Notes to Consolidated Financial Statements -- Note 8 -- "Commitments and Contingent Liabilities" on page 51 of Zenith's 1997 Annual Report to Stockholders, which note is hereby incorporated by reference.
ratios: (i) interest bearing debt to EBITDA of not more than 2.0 to 1.0; (ii) total liabilities to tangible net worth of not more than 1.0 to 1.0; and (iii) fixed charge coverage (as defined) or not less than 2.5 to 1.0. In June, 1999, the Company used $6.7 million of the available LOC to repay an existing term loan. Subsequent to June, 1999, the Company used the remaining IPO proceeds, together with excess cash reserves, to repay the LOC. Consequently, as of December 31, 1999, there was no outstanding balance under the LOC.
OTHER REVENUE Other revenue increased $7.4 million to $8.3 million in 1999 from $0.9 million in 1998. The increase in 1999 consists primarily of $3.4 million of revenues associated with the leasing, brokerage and other businesses acquired by the Company in the acquisition of the Underwriter on August 4, 1999, a gain of $3.5 million resulting from common stock received during 1999 in the demutualization of Manulife Financial Corp. and a $1.0 million death benefit received during 1999 from a corporate owned life insurance policy.
Management does not expect that significant unrealized losses will be realized on the fixed maturity portfolio given the credit quality of the portfolio at December 31, 2000, the Company's positive operating cash flows and the Company's policy of matching asset and liability maturities. Asset and liability matching is an important part of the Company's portfolio management process. The Company utilizes financial modeling and scenario analysis to closely monitor the effective modified duration of both assets and liabilities in order to minimize mismatching. The goal of effective asset/liability management is to allow payment of claims and operating expenses from operating funds without disrupting the Company's long-term investment strategy.
RESULTS OF OPERATIONS AND FINANCIAL CONDITION AS OF AND FOR THE YEAR ENDED MAY 31, 2011
The increase in revenues is largely attributable to the continued growth of the surety business of FSC and the recognition of gains on the sale of investments held by the company. However, net investment income decreased due to the receipt of large principal payments on mortgage backed securities, which resulted in large amortization of premiums recognized in the current year. The reduction in expenses is attributable to decreased general and administrative expenses, mostly related to the award of stock options on June 30, 2009, a reduction in professional legal fees incurred in the Company's ongoing efforts to raise additional capital to expand its business and penetrate new markets, and the elimination of expenses absorbed as part of the Jacobs & Company Mutual Fund which was liquidated on December 1, 2009.
The Company experienced a loss after accretion of mandatorily redeemable convertible preferred stock, and accrued dividends on mandatorily redeemable preferred stock of $1,440,090 in fiscal 2011 as compared with a loss after accretion of mandatorily redeemable convertible preferred stock, and accrued dividends on mandatorily redeemable preferred stock of $2,338,531 in fiscal 2010.
We lease our headquarters at 601 Locust Street, Des Moines, Iowa, and sublease property in Baltimore, Maryland. Such leases expire December 2020, May 2021 and January 2022, respectively. We believe our existing facilities are suitable and adequate for our present purposes. As of January 2018, we believe that our Des Moines, Iowa, and Baltimore, Maryland, properties will be sufficient for us to conduct our operations and we have successfully exited our lease in Lincoln, Nebraska on January 30, 2018.
(b) On August 9, 2013, we distributed our ownership interests in the parent company of FSRC to HRG. As a result, FSRC’s results are not included in our results from the Predecessor year ended September 30, 2013 to November 30, 2017. On November 30, 2017 and onward, FSRC's results are included in our results as FGL Holdings acquired FSRC pursuant to the Merger Agreement.
The Company does not own, directly or indirectly, any real estate. The Company leases office space for day to day operations in the following cities:
Our management has not entered into any agreements with any party regarding a business combination. Any target business that is selected may be a financially unstable company or an entity in its early stages of development or growth, including entities without established records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially unstable and early stage or potential emerging growth companies. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks. Our management anticipates that it will likely be able to effect only one business combination, due primarily to our limited financing and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management’s plan to offer a controlling interest to a target business in order to achieve a tax-free reorganization. This lack of diversification should be considered a substantial risk in investing in us, because it will not permit us to offset potential losses from one venture against gains from another.
We have audited the accompanying balance sheets of Prevention Insurance.Com (the "Company") as of April 30, 2018 and 2017, the related statements of operations, changes in stockholders’ deficit, and cash flows for each of the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2018 and 2017, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.
In 1996, although higher premium rates were charged on certain lines of business than in 1995 including amounts related to increased minimum automobile liability coverage required by New York State, such rate increases were largely offset by a decrease in the number of policies in force. This decrease primarily resulted from the depopulation of the assigned risk pools and reduced volume in other lines of business that were not profitable, primarily certain specialty programs within voluntary commercial automobile lines. In addition, in 1996 the Company experienced increased competition, primarily in workers' compensation and commercial package policies, which reduced volume.
Professional Fees increased $53,843. In February 2018, PVMS hired an outside accountant for the Company as a whole whom we pay $7,000 per month. We also pay the outside accountant additional fees for special projects. In 2019, the outside accountant was paid for the full year. In 2019 we hired a consultant to help bring in additional business. Legal fees increased by approximately $22,000 due to increased litigation expenses.
Investment income, net of expenses: The components of net investment income for the years ended December 31, 2016 and 2015 are as follows:
Net investment income for 2016 was $449,951, compared to $291,208 in 2015, an increase of $158,743. This increase in investment income is primarily a result of increased invested assets as a result of our warrant exercise offering and premium income.
Net realized gains on investments: Net realized gains on investments for the years ended December 31, 2016 were $100,378, compared to losses of $1,524 in 2015, an increase of $101,902. Realized gains and losses related to the sale of securities for the years ended December 31, 2016 and 2015 are summarized as follows:
The information set forth in the “Selected Financial Data” section of the Company’s 2002 Annual Report is incorporated herein by reference.
The net profit for the financial year amounted to Sw. frs. 41.9 million, compared with Sw. frs. 36.9 million in the previous year. Including the balance brought forward, the sum of Sw. frs. 43.5 million is at the disposal of the General Meeting. The Board of Directors proposes payment of a dividend of Sw. frs. 80.— (previous year, Sw. frs. 75.—) per share. Furthermore, it proposes allocations of Sw. frs. 400,000 to Directors' Remuneration (previous year, Sw. frs. 375,000), of Sw. frs. 400,000 to Donations (previous year, Sw. frs. 375,000), as well as Sw. frs. 5.0 million (no allocation in the previous year) to the Special Reserve Fund and Sw. frs. 4.0 million (in the previous year, Sw. frs. 6.0 million) to the Reserve Fund for Catastrophe Losses. Upon acceptance of these proposals by the General Meeting, the balance car­ ried forward would be Sw. frs. 1.7 million (previous year, Sw. frs. 1.6 million).
The formal proposal of the Board of Directors thus reads: Sw. frs. Sw. frs.
Investment Income (less Interest on Life Assurance and Annuity Funds and other technical reserves) 90,277,564 82,757,492
(3) Effective January 1, 2000, the Company disposed of a block of payroll- deduction life insurance business.
The changes occurring in the Company's consolidated balance sheet between December 31, 2000 and December 31, 1999 primarily reflect the normal operations of the Company's life insurance subsidiaries.
Asset-liability management is utilized by the Company to reduce the risks to the Company for interest rate fluctuations and disintermediation. The Company believes that its fixed-rate liabilities should be backed by a portfolio principally composed of fixed-rate investments that generate predictable yields in a variety of interest rate environments. The Company does not have a specific target rate of return. Instead, its rates of return vary over time depending on the current interest rate environment, the slope of the yield curve, the spread at which fixed-rate investments are priced over the yield curve, and general economic conditions. The Company's portfolio strategy is constructed with a view to achieving adequate risk-adjusted returns consistent with its investment objectives of effective asset-liability management, liquidity and safety. The Company has structured its investment portfolio to reduce changes in the value of the assets under various rate environments. In that regard, the percentage of the Company's fixed-rate investment portfolio which is non-callable has increased from 44% in 1995 to 69% in 2000. In addition, the portfolio's concentration in mortgage-backed securities, which are subject to cash flow variability in changing interest rate environments, has decreased from 38% in 1995 to 17% in 2000. See "Investment Portfolio" section included elsewhere in Management's Discussion and Analysis of Financial Condition and Results of Operations for additional information related to the Company's investments.
In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard ("SFAS") No. 133, "Accounting for Derivative Instruments and Hedging Activities". SFAS No. 133, as amended by SFAS No. 138, "Accounting for Certain Derivative Investments and Certain Hedging Activities an Amendment of FASB Statement No. 133", provides guidance related to the accounting for derivative instruments and hedging activities focusing on the recognition and measurement of derivative instruments. This statement is effective for all fiscal quarters of all fiscal years beginning after June 15, 2000. Adoption of this statement will not have a significant impact on the consolidated financial statements of the Company.
Included in consolidated losses and loss adjustment expenses for the year ended December 31, 2009 was $6.3 million in net favorable loss reserve development on prior accident years. The Excess and Surplus Lines segment had net favorable loss reserve development of $15.4 million primarily within the property, casualty and professional liability lines of business. The Commercial Specialty segment had net favorable loss reserve development across multiple lines. The International Specialty segment had net favorable loss reserve development of $9.1 million. The Syndicate 1200 segment had net unfavorable loss reserve development of $23.5 million, which was offset by additional premiums of $24.1 million primarily within the property lines of business. The Run-off Lines segment had $1.6 million of net favorable loss reserve development primarily driven by $10.8 million favorable loss reserve development on legacy PXRE claims, partially offset by $9.1 million of unfavorable loss reserve development in the U.S run-off lines, including $6.1 million in unfavorable loss reserve development in in the general liability lines resulting from asbestos and environmental exposure.
We had no revenue in for the years ended December 31, 2010 or 2009. However, our operating expenses increased from $16,109 in the year ended December 31, 2009 to $41,010 in the year ended December 31, 2010. The increase is attributable to an incline in General and Administrative expense in 2010 of primarily professional fees.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Pages 41 through 69 of the 1996 Annual Report to Stockholders are incorporated herein by reference.
The Company's predecessor began operations in Texas in 1986, and subsequently initiated de novo operations in Ohio in 1990 and in Missouri and Kansas in 1993. The Company entered 15 new states with prepaid members (Arizona, California, Colorado, Idaho, Illinois, Indiana, Iowa, Minnesota, Nebraska, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming) by virtue of the IDH acquisition in 1994. Certain of these additional states have only limited number of prepaid members and are not considered by management to be prime markets for future expansion.
General and Administrative. General and administrative expenses increased $7.7 million, or 109.4% to $14.8 million in 1995 from $7.1 million in 1994. The decline in general and administrative expenses as a percentage of revenues to 18.7% in 1995 from 18.9% in 1994 was primarily attributable to efficiencies achieved through the consolidation of executive staffs and accounting departments due to the acquisition of IDH. In addition, there was a decrease in premium taxes as a percentage of revenue because the Company now generates a greater percentage of its revenues in states that have lower premium taxes.
Management believes that cash flow generated by operations will be sufficient to fund the Company's normal working capital needs and capital expenditures (other than any acquisitions) for at least the next twelve months because the Company's operations are not capital intensive.
WAREHOUSE CENTER IN SALT LAKE CITY, UTAH This one story warehouse-distribution facility was completed in 1997. It contains approximately 182,500 square feet of rentable space. The building is located on a 9.605 acre land parcel in Salt Lake City, Utah. At December 31, 1997 the building was vacant.
During 1996, the Partnership sold its Azusa, CA industrial property and its Flint, MI office building. The sale of these two properties resulted in a realized loss of $1,573,147. The Flint, MI property had the largest loss of $1,094,521 (16.7% of its year-end 1995 value). This was the result of both the uncertain economic outlook and leasing demand in Flint, MI, as well as the physical condition of the property. The Azusa property had a realized loss of $478,627 (3.2% of its year-end 1995 value). The gross sales price of the property was $15,250,000 and the net proceeds were $14,697,789.
Total operating revenue increased 32 percent or $535 million to $2.2 billion for the year ended September 30, 1993 from $1.7 billion for the same period in 1992. The Company's HMOs provided additional operating revenue of $507 million through enrollment gains and higher premium rates. The remaining $28 million increase was attributable to the amounts generated by the Company's specialty managed care products and services and its joint venture medical groups.
PXRE maintains only minimal catastrophe retrocessional coverage. In view of the increased underwritings of catastrophe related reinsurance and the net exposure being retained by PXRE, the occurrence of one or more major catastrophes in any given period (such as hurricanes Andrew and Iniki in 1992 and the Northridge earthquake in 1994) could have a material adverse impact on PXRE's results
The underwriting expense ratio was 18.6% for 1995, compared with 14.8% for 1994. The increase was substantially due to the effect of a provision for contingent commissions related to the low level of losses incurred. As a result of the above, the combined ratio was 54.3% for 1995, compared with 62.4% for 1994.
The net effects of foreign currency exchange fluctuations were losses of $235,000 in 1995 and gains of $818,000 for 1994. See "Management's Discussion and Analysis of Financial Condition and Results of Operations-- Liquidity and Capital Resources".
In March 1995, PXRE and TREX entered into a joint venture arrangement to trade in catastrophe futures and options contracts on the Chicago Board of Trade. PXRE and TREX have each committed $2.5 million to this venture. Although the joint venture has developed a number of trading strategies, the low level of activity in the CBOT market for catastrophe futures has kept trade volume to a minimum through December 31, 1995.
Rent increased $1350. The Company made 12 monthly rent payments of $1350 in the current year and 11 payments in the prior year.
The Company leases approximately 59,000 square feet for its corporate headquarters in Philadelphia under leases which expire in 2003. In addition, CMAC leases space for its Divisional, Service Center and On-Site offices throughout the United States comprising approximately 57,000 square feet with leases expiring between 1997 and 2001. With respect to all facilities, the Company believes it will be able to obtain satisfactory lease renewal terms.