felanders/preprocessed huggingface dataset:
Although new pension products are not currently sold, there has been a substantial block of group retirement business in-force, including guaranteed investment contracts ("GICs"), pension plans and group annuities. A significant portion of these pension contracts are non-surrenderable, with the result that the Company's liquidity exposure is limited. GICs were marketed directly in the U.S. through independent managers. In 1997, the Company decided to no longer market group pension and GIC products.
variable annuity products, such as Futurity; that the productivity of Futurity's wholesale distribution network, established in 1998, will continue to grow; and that the marketplace will respond favorably to introductions of new Futurity products and product enhancements.
The Corporate segment includes the capital of the Company, its investments in subsidiaries and items not otherwise attributable to either the Wealth Management or the Protection segments.
- - A $16.7 million increase, to $31.4 million in 1998, in the income from operations from the Company's Wealth Management segment. (This is discussed in the "Wealth Management Segment" section below.)
Sun Life Finance Corporation ("Sunfinco") is a finance company and currently inactive;
Effective January 1, 1991, the Company entered into an agreement with SLOC under which certain individual life insurance contracts issued by SLOC were reinsured by the Company on a 90% coinsurance basis. During 1997, SLOC changed certain assumptions used in determining the gross and the ceded reserve balance. The Company reflected the effect of the changes in assumptions to its assumed reserves as a direct credit to surplus. The effect of the change was a $39,016,000 decrease in reserves. Also, the agreement required SLOC to reinsure the mortality risks in excess of $500,000 per policy for the individual life insurance contracts assumed by the Company. Such death benefits are reinsured on a yearly renewable term basis. The life reinsurance assumed agreement required the reinsurer to withhold funds in amounts equal to the reserves assumed. These agreements had the effect of increasing income from operations by approximately $24,579,000, and $37,050,000 for the years ended December 31, 1998 and 1997, respectively. The Company terminated this agreement effective October 1, 1998, resulting in an increase in income from operations of $65,679,000 which included a cash settlement.
The Company records an accrual of the estimated cost of retiree benefit payments during the years the employee provides services, and amortizes an obligation of approximately $400,000 over a period of ten years. The Company's cash flows are not affected by this method, however the net effect decreased income by $185,000, $95,000, and $117,000, for the years ended December 31, 1999, 1998, and 1997, respectively. The Company's post-retirement health, dental and life insurance benefits currently are not funded.
Estimation of Unpaid Losses and Loss Adjustment Expenses. Our actuarial staff reviews our insurance subsidiaries' loss and loss adjustment expense reserves. When estimating our liability for losses and loss adjustment expenses under the terms of our insurance policies, we rely heavily on our historical loss and loss adjustment expense experience. We periodically adjust our loss and loss adjustment expense reserves for changes in product mix, underwriting standards and rules, loss cost trends and other factors. Our loss and loss adjustment expense reserves may also be impacted by factors such as the rate of inflation, claims settlement patterns and legislative activities and litigation trends, which we incorporate into our analyses. As our experience develops or additional information becomes known, we increase or decrease our loss and loss adjustment expense reserve levels, as necessary. These changes to our loss and loss adjustment expense reserves are reflected in our results of operations in the period in which our estimates change. Ultimately, our actual losses and loss adjustment expenses may differ materially from the estimates we have recorded.
For the year ended December 31, 2003, our consolidated statement of operations included a charge in the amount of $13.8 million before tax related to two coordinated class actions that alleged, among other things, improper cancellations of our insurance policies and a pending related action. This amount reflected our estimate of the ultimate costs with respect to these actions, which includes the expected class member payments, defense costs and other expenses associated with these lawsuits and the change in the law related to cancellations. See "Item 3. Legal Proceedings"
Net Premiums Earned. Net premiums earned for 2014 were $375.7 million, compared to $330.0 million for 2013, an increase of 13.9%. The increase was attributable to the increase in net premiums written.
The pre-tax investment yield on our investment portfolio was 2.6% per annum during the twelve months ended December 31, 2014, compared to 2.8% per annum during the same period in 2013.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of AMERISAFE, Inc. and Subsidiaries at December 31, 2014 and 2013, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2014, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.
In 2013, the Company returned previous recoveries of $2.3 million due to a single closed claim. Excluding this impact, the Company received reinsurance recoveries of $1.5 million in 2014, $2.1 million in 2013 and $5.3 million in 2012.
Infinity and its insurance subsidiaries’ contractual obligations as of December 31, 2009, are (in thousands):
The following table provides information about Infinity’s fixed maturity investments at December 31, 2009 which are sensitive to interest rate risk. The table shows expected principal cash flows by expected maturity date for each of the five subsequent years and collectively for all years thereafter. Callable bonds and notes are included based on call date or maturity date depending upon which date produces the most conservative yield. MBS and sinking fund issues are included based on maturity year adjusted for expected payment patterns.
Gross written premium in the Maintenance States declined 31.3% during 2009 with declines in all states in this category. Infinity has increased rates in several of the Maintenance States over the last twelve months in an effort to improve profitability.
The $1.7 million charge during 2007 is primarily related to losses on subleases from facilities affected by the restructuring. Infinity incurred an additional $0.8 million in expenses during 2008, $0.4 million of which related to losses on subleases. In 2009, Infinity recognized just $2,000 in restructuring charges as the Company completed its restructuring efforts.
The following table reconciles the Company’s U.S. statutory rate and effective tax rate for the periods ending December 31, 2009, 2008 and 2007.
The developments in insurance just outlined will also affect reinsurance business, which has always been exposed to intense competition. Reinsurers will have to concentrate their attention on safeguarding their minimum require­ ments as regards the premiums and conditions applied to the risks they assume, on the transparency of their reinsur­ ance portfolio, on necessary capacity extensions and on the altered accumulation situation.
by the Netherlands with 38%, Japan with 37%, Germany with 29% and Switzerland with 20%. The performance of the United States and Canada, on the other hand, was be­ low average on an international comparison. - Against this generally positive background, Swiss Re's commitment in shares has again been expanded by means of selective purchasing and restructuring.
The portfolio of capital market investments (fixed-interest securities, loans and shares) and real estate rose by Sw.frs. 324.0 million to Sw.frs. 6,807.5 million. The valua­ tion difference on capital market investments (excluding loans), i.e. the difference between the lower book and higher market value of the individual securities, taking into account the estimated value of taxes due on realization, amounted to Sw.frs. 728.9 million (previous year, Sw.frs. 577.0 million) or 14.9% (previous year, 12.9%) of the bal­
The results shown below of the individual Group compa­ nies correspond to the figures published in accordance with local accounting provisions.
Cash in hand, postal bank account, bank balances 718 269 1,017 819 Current-account balances 1,631 855 2,532 1,719 Cash deposits 1,724 94 1,818 1,525
'The figures in this column do not always amount to the total of the figures in the two preceding columns as figures for holding and other companies are also included.
In addition to commission payments and profit commis­ sion reimbursements, this item includes the general ex­ penses incurred in insurance operations.
Liabilities Current-account and bank balances Cash deposits Technical reserves Non-Life insurance Life insurance Transitory entries, value adjustments and other liabilities (Incl. share of minority shareholders and building society deposits) Group Capital Funds Shown (incl. Group profit)
Australia / New Zealand Australian Reinsurance Company Limited 31 Queen Street, Melboume, Vic. 3000 with branch offices in Sydney and in Auckland and Wellington, New Zealand
CAPSCO/PALLM/GATEWAY Group Contact address USA CPS CAPSCO PALLM Systems, Inc. 4040 Vincennes Circle Indianapolis, IN 46268
CAPSCO Software Canada Ltd. 5925 Airport Road Ainway Centre Business Park Mississauga, Ontario L4V IWI
CAPSCO Software Europe Ltd. 3 Bury Street Guildford, Surrey GU2 5AW (UK)
Co-Insurance basis: System of Life reinsurance under which the ̂ reinsurer assumes a share of the ̂ risk (pre­ miums, benefits, setting-up of reserves, etc.) at the same terms as the reinsurer's client (cf. risk premium basis).
Income Statement Data: 1997 1996 1995 1994 1993 Total revenues $634.2 $577.3 $439.6 $372.7 $388.9
American Annuity Group, Inc. ("AAG" or "the Company") markets the following nationwide: (i) retirement products - primarily fixed and variable annuities; (ii) individual life insurance and annuity policies with the sponsorship of state associations of funeral directors as well as individual and large operators of funeral homes and (iii) various forms of supplemental life and health insurance through payroll deduction plans, financial institutions and in-home sales.
American Financial Group, Inc. ("AFG") and its subsidiaries owned 35,059,995 shares (81%) of AAG's Common Stock at December 31, 1997.
1997 1996 Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 1,548,969 $13.38 - - Granted 633,070 $19.70 1,557,759 $13.38 Forfeited (3,849) $13.51 (8,790) $13.25
The number of common shares outstanding used in calculating diluted earnings per share in 1997 includes 0.5 million shares for the effect of the assumed exercise of AAG's stock options.
Income from continuing operations 18.0 17.7 16.4* 19.3 71.4 Extraordinary items - - (1.5) - (1.5) Net income 18.0 17.7 14.9* 19.3 69.9
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of American Annuity Group, Inc. and subsidiaries at December 31, 1997 and 1996, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly in all material respects the information set forth therein.
Net income applicable to Common Stock $ 68.9 $ 53.7 $ 55.3
Basic earnings (loss) per common share: Continuing operations $1.63 $1.39 $1.45 Discontinued operations - - (0.08) Extraordinary items (0.03) (0.14) - Net income $1.60 $1.25 $1.37
Unrealized Gains, Net: Balance at beginning of year $ 61.8 $ 89.3 ($ 29.0) Change during year 71.4 (27.5) 118.3 Balance at end of year $133.2 $ 61.8 $ 89.3
Deferred tax liabilities: Unamortized insurance acquisition costs (70.6) (61.8) Policyholder liabilities (8.8) (14.5)
The actuarial auditor, Mr. W. Saxer, has moreover con­ firmed in his report that the technical reserves of the Life department at the end of 1963 were correctly calculated on the basis approved by the Swiss Federal Council.
As part of our overall investment strategy, we seek to build a tax efficient investment portfolio by maintaining an allocation to tax exempt municipal bonds. The tax-exempt portion of our investment portfolio was approximately 22.4% and 17.1% of the Fixed Maturities investment portfolio as of December 31, 2017 and 2016, respectively. Additionally, substantially all of our Equity Securities portfolio is invested in tax efficient securities which qualify for the dividends received deduction. The tax equivalent yields for the years ended December 31, 2017, 2016 and 2015 on a consolidated basis were 3.1%, 2.9% and 2.7%, respectively.
Ceded Written Premiums were $138.5 million, resulting in a retention ratio of 71.4%, for the year ended December 31, 2016 compared to $134.0 million, resulting in a retention ratio of 67.5%, for the same period in 2015. The increase in the retention ratio was driven by our Marine and P&C operating segments mostly due to the year on year effect of RRPs. For the year ended December 31, 2016, RRPs of $2.9 million were incurred, compared to a release of $4.0 million in RRPs in 2015. This was partially offset by decreases in proportional reinsurance coverages in our P&C and Professional Liability operating segments.
For the year ended December 31, 2017, our Reported Net Losses and LAE Ratio for our Professional Liability operating segment increased 2.1 points as compared to the same period in 2016, primarily driven by:
Our Commission Expense Ratio for the year ended December 31, 2017 increased 1.2 points compared to the same period in 2016. The increase was attributable to higher profit commission expense particularly on our Surety product and changes in the mix of business, partially offset by the effect of fully earned net RRPs from Hurricanes Irma, Harvey and Maria.
Other Operating Expenses increased $3.4 million for the year ended December 31, 2016 compared to the same period in 2015, due to growth in our underwriting teams and support staff, as well as increases in the allocation of corporate overhead.
NCUL, our wholly-owned corporate member at Lloyd’s, may pay dividends to our Parent Company up to the extent of available profits that have been distributed from the Syndicate. As of December 31, 2017, there are no profits available for distribution.
The following table sets forth our gross and net losses and LAE reserves, incurred losses and LAE, and payments for Hurricane Joaquin for the years ended December 31, 2017, 2016 and 2015:
Total benefits increased $12,814,000 or 3% in 1994 as compared to 1993. Life and annuity benefits increased $3,528,000 or 9% in 1994 as compared to 1993 due to higher mortality on a closed block of universal life and an increase in in-force business. Accident and health benefits, which include the change in unearned premiums, increased $9,286,000 or 2%. The increase was due primarily to the increased amount of collected premiums. The accident and health loss ratios decreased to 62% from 66% in 1994 as compared to 1993. The improved loss ratios were due primarily to the previously discussed reduction in the group medical claim reserve margins.
position, the Company has designated a portion of its investment portfolio as available-for-sale. As required by Statement 115, the Company adjusted the carrying value of it fixed maturity investments that are classified as investments available-for-sale to fair value at January 1, 1994.
of the mortgage-related securities portfolio has the guarantee or backing of agencies of the United States government. Generally, the mortgage-related securities consist of pools of single-family, residential mortgages.
impact these standards had on the financial statements of the Company, see Note 2 of Notes to Consolidated Financial Statements.
Consolidated Balance Sheets as of December 31, 1995 and 1994 22
We have audited the accompanying consolidated balance sheets of Aetna Life Insurance and Annuity Company and Subsidiaries as of December 31, 1995 and 1994, and the related consolidated statements of income, changes in shareholder's equity and cash flows for each of the years in the three-year period ended December 31, 1995. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
Initial adoption of this standard resulted in a net increase of $106.8 million, net of taxes of $57.5 million, to net unrealized gains in shareholder's equity. These amounts exclude gains and losses allocable to experience-rated (including universal life) contractholders. Adoption of FAS No. 115 did not have a material effect on deferred policy acquisition costs.
Reserves for fixed annuity contracts in the annuity period and for future amounts due under settlement options are computed actuarially using the 1971 Individual Annuity Mortality Table, the 1983 Individual Annuity Mortality Table, the 1983 Group Annuity Mortality Table and, in some cases, mortality improvement according to scales G and H, at assumed interest rates ranging from 3.5% to 9.5%. Reserves relating to contracts with life contingencies are included in Future Policy Benefits. For other contracts, the reserves are reflected in Policyholders' Funds Left With the Company.
Premiums are recorded as revenue when due for fixed ordinary life contracts. Charges assessed against policyholders' funds for cost of insurance, surrender charges, actuarial margin and other fees are recorded as revenue for universal life and certain annuity contracts. Policy benefits and expenses are recorded in relation to the associated premiums or gross profit so as to result in recognition of profits over the expected lives of the contracts.
At December 31, 1995 and 1994, net unrealized appreciation (depreciation) of $797.1 million and $(386.4) million, respectively, on available for sale debt securities included $619.1 million and $(308.6) million, respectively, related to experience-rated contractholders, which were not included in shareholder's equity.
Gross gains of $44.6 million, $26.6 million and $33.3 million and gross losses of $11.8 million, $25.6 million and $23.7 million were realized from the sales of investments in debt securities in 1995, 1994 and 1993, respectively.
Net investment income includes amounts allocable to experience-rated contractholders of $744.2 million, $677.1 million and $661.3 million for the years ended December 31, 1995, 1994 and 1993, respectively. Interest credited to contractholders is included in Current and Future Benefits.
The carrying values and estimated fair values of the Company's financial instruments at December 31, 1995 and 1994 were as follows:
The Company does not own any real estate; it leases approximately 24,000 feet of office space in Chicago. The lease has a term expiring in 2000, with an option for the Company to extend the lease through 2003. In addition, the Company leases approximately 1,700 feet of office space in Milwaukee with a term expiring in 1999; 500 feet of office space in Detroit with a term expiring in 1997, and 500 feet of office space in Indianapolis with a term expiring in 1997.
Managements's Discussion and Analysis of Financial Condition and Results of Operations
Incorporated herein by reference from section entitled "Management's Discussion and Analysis of Results of Operations and Financial Condition" in the Company's 1996 Annual Report to Stockholders, which is included as Exhibit 13 to this Annual Report on Form 10-K.
See "Management's Discussion and Analysis" commencing on page 13 of the Registrant's 1995 Annual Report to Shareholders which is enclosed, which discussion and analysis is incorporated herein by reference.
Deferred policy acquisition costs, representing the deferral of ceding commission expense related to premiums not yet earned, increased from December 31, 1997 along with the increase in unearned premiums. The current ceding commission rate, which became effective August 1, 1995, is 28.5%.
statutory financial statements are prepared in accordance with statutory accounting principles, which differ from GAAP. For additional information, see the Financial Statements of the Company, the Financial Statements of the Fund, and the related notes thereto included elsewhere in this filing.
In a study conducted by the Fund in 1995 which was based upon an analysis of the statutory financial filings of all Florida funds by the Bureau of Self-Insurance, Florida Department of Insurance, the Fund ranked #1 in the settling and payment of claims, confirming the Fund's philosophy of fair and prompt settlement of claims incurred by the employees of insureds. Management of the Fund (and the Company) believe that this philosophy limits the possibility of reserve deficiency development and reduces the overall cost of claims. The history of the Fund's and the Company's reserve development since inception through December 31, 1996, is displayed in Table #2 on Page 15.
Under statutory accounting practices ("SAP") applicable to stock insurance companies, the Fund concluded its operations with a deficit of $445,000. SAP differs from Generally Accepted Accounting Principals (GAAP) by reducing net assets to those that can be used to pay claims. For instance, GAAP assets such as prepaid expenses and deferred income taxes are not recognized as assets under SAP. Table #5 on Page 31 reconciles the Fund's and the Company's ending GAAP surplus with the surplus or deficit accounted for under SAP.
Commencing January 1, 1997, the Company has entered into a quota share treaty with Underwriters for the 1997 calendar year. The treaty is substantially similar to the 1996 treaty explained above with the exception of the percentage of quota share, which has been reduced to 20%, and the provisional ceding commission due the Company, which has been increased to 29% of ceded premium.
For the 1997 calendar year, the Company has entered into a 50% proportional quota share reinsurance treaty with TIG Reinsurance Company. The treaty is substantially similar to the 1996 Underwriters treaty with the exception that the provisional ceding commission has been increased to 28% of ceded premium.
Invested assets and cash as of December 31, 1996 amounted to $10.9 million with approximately $2.4 million of such amount consisting of investments with maturities of less than one year or cash. Even with the impact of quota-share arrangements, it is not anticipated that negative operating cash flows will require liquidations of investments in advance of their fixed maturities.
The following table identifies the period of time securities with an unrealized loss at December 31, 2002 have continuously been in an unrealized loss position. Included in the amounts displayed in the table are $4.0 million of unrealized losses due to non-investment grade fixed maturity securities having a fair value of $12.1 million. No issuer of securities or industry represents more than 3.9% and 10.3%, respectively, of the total estimated fair value, or 13.9% and 21.2%, respectively, of the total gross unrealized loss included in the table below. As previously discussed, there are certain risks and uncertainties inherent in the Company's impairment methodology. Should the Company subsequently determine a decline in the fair value below the cost basis to be other than temporary, the security would be written down to its fair value and the difference would be included in earnings as a realized loss for the period such determination was made.
(1) Original cost adjusted for amortization of premiums and accretion of discounts. All amounts are shown net of impairment losses.
The Company also sponsors an unfunded nonqualified executive deferred compensation plan. Under the plan deferred compensation benefits are provided by the Company through deferrals of base salary and bonus compensation for management and highly compensated executives designated by the Board of Directors. Each participant is permitted to specify an investment or investments from among permissible investments which shall be the basis for determining the gain or loss adjustment applicable to such participant's plan deferral account. A participant's benefit under the plan is the amount of such participant's plan deferral amount. At December 31, 2002 the Company had a $0.5 million deferred compensation obligation pursuant to this plan.
1997 1998 1999 2000 2001 ---- ---- ---- ---- ---- (In thousands, except per share and ratio data) Income Statement Data:
Certain of the Company’s insurance policies and reinsurance assumed, including general and pollution liability policies covering environmental remediation, excess and surplus, and workers’ compensation risks, may be subject to claims brought years after an incident has occurred or the policy period has ended. The Company is required to maintain reserves to cover its estimated liability for losses and loss adjustment expenses with respect to reported and unreported claims incurred. The Company engages an independent internationally recognized actuarial consulting firm to provide reserve studies, rate studies, and opinions. Reserves are estimates at a given time, which are established from actuarial and statistical projections by the Company of the ultimate settlement and administration costs of claims occurring on or prior to such time, including claims that have not yet been reported to the insurer. The establishment of appropriate loss reserves is an inherently uncertain process, and there can be no assurance that the ultimate payments will not materially exceed the Company’s reserves.
Net investment income and net gains (losses) on investments: We invest in cash and cash equivalents, short-term investments, fixed-maturity and equity securities. Our net investment income includes interest and dividends earned on our invested assets, less investment expenses. Net realized gains and losses on our investments are reported separately from our net investment income. Net realized gains occur when our investment securities are sold for more than their costs or amortized costs, as applicable. Net realized losses occur when our investment securities are sold for less than their costs or amortized costs, as applicable, or are written down as a result of other-than-temporary impairment. We classify our fixed-maturity securities as either available-for-sale or held-to-maturity. Net unrealized gains (losses) on those securities classified as available-for-sale are reported separately within accumulated other comprehensive income on our balance sheet while our equity securities and other investments report changes in fair value through earnings. See Note 2 in the accompanying Consolidated Financial Statements for further discussion over our accounting policies following Item 16 of this Annual Report.
Depreciation and amortization: Depreciation and amortization includes the amortization of intangibles related to the acquisition of KICO, depreciation of the real estate used in KICO’s operations, as well as depreciation of capital expenditures for information technology projects, office equipment and furniture.
Other underwriting expenses were $24,420,000 in Year Ended 2019 compared to $20,943,000 in Year Ended 2018. The increase of $3,477,000, or 16.6%, was primarily due to expenses related to growth in direct written premiums. Expenses directly related to the increase in direct written premiums primarily consist of underwriting expenses, software usage fees, and state premium taxes. Expenses indirectly related to the increase in direct written premiums primarily consist of salaries along with related other employment costs. The other underwriting expense increase of 16.6 points was less than the 16.7 point increase in total direct written premiums.
Premiums are established before we know the amount of losses and loss adjustment expenses or the extent to which inflation may affect such amounts. We attempt to anticipate the potential impact of inflation in establishing our reserves, especially as it relates to medical and hospital rates where historical inflation rates have exceeded the general level of inflation. Inflation in excess of the levels we have assumed could cause loss and loss adjustment expenses to be higher than we anticipated, which would require us to increase reserves and reduce earnings.
Due after one year through five years.. 45,119 45,050 ------- ------- $58,650 $58,618 ======= =======
Property and equipment are recorded at cost and include assets acquired through capital leases and improvements that significantly add to the productive capacity or extend the useful lives of the assets. Costs of maintenance and repairs are charged to expense as incurred. Depreciation for financial reporting purposes is provided on the straight-line method over the estimated useful lives of the assets. The costs of major remodeling and improvements are capitalized as leasehold improvements. Leasehold improvements are amortized using the straight-line method over the shorter of the remaining term of the applicable lease or the life of the asset.
The Company concluded the redemption of its Series A Stock on March 14, 1995 (the "Redemption Date"). Holders of approximately 2.27 million shares of Series A Stock converted their shares into approximately 6.25 million shares of the Company's Common Stock. As a result of the redemption of the Series A Stock the Company paid no preferred stock dividends in 1995, and, accordingly, no consideration is given to preferred stock dividends in the calculation of earnings per share for the years ended December 31, 1995 and 1996.
Pro forma earnings per common share: Primary $ 1.63 $ .90 Fully diluted $ 1.50 $ .89
The Company has measured the total compensation cost of the Restricted Stock awards as the excess of the quoted market price of similar but unrestricted shares of stock at the award date over the purchase price, if any, of the Restricted Stock. The quoted market price of shares of the Company's Common Stock at the date of grant was $16.125, and the Restricted Stock was awarded to the Executives at no cost. The total compensation cost of the Restricted Stock is $2,096,000 and is being amortized over the three year vesting period.
Interest expense increased $16,109,000, $14,104,000 and $4,291,000 in 1998, 1997 and 1996, respectively, as a result of additional financing transactions, which consisted of the sale of future fees to the Parent ("securitization transactions"). In addition, the Company had outstanding surplus notes totaling $213,000,000 throughout 1998 ($20,000,000 was retired on December 31, 1998). Surplus notes as of December 31, 1998 and 1997 totaled $193,000,000 and $213,000,000, respectively.
ASLAC has long-term surplus notes and a short-term borrowings with its Parent. No dividends have been paid to its Parent.
Investments: Fixed maturities - at amortized cost $ 8,289 $ 9,367 Fixed maturities - at fair value 141,195 108,323 Investment in mutual funds - at fair value 8,210 6,711 Policy loans 569 687 ---------- -----------
Under various state insurance laws, the maximum amount of dividends that can be paid to shareholders without prior approval of the state insurance department is subject to restrictions relating to statutory surplus and net gain from operations. At December 31, 1998, no amounts may be distributed without prior approval.
Such ceded reinsurance does not relieve the Company of its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements.
Approximately 99% of the Company's separate account liabilities are subject to discretionary withdrawal by contractowners at market value or with market value adjustment. Separate account assets which are carried at fair value are adequate to pay such withdrawals which are generally subject to surrender charges ranging from 10% to 1% for contracts held less than 10 years.
In 1989, Great-West Life began a series of transactions to transfer its U.S. business from its U.S. branch to the Company; this process was essentially completed in 1993. The objective of these transactions was to transfer to the Company all of the risks and rewards of Great-West Life's U.S.-related business. The transfers of insurance contracts and related assets were accomplished through several reinsurance agreements executed by the Company and Great-West Life's U.S. branch during these years. As part of this transfer of Great-West Life's U.S. business, the Company in 1993 entered into a tax agreement with Great-West Life in order to transfer the tax liabilities associated with the insurance contracts and related assets that had been transferred.
Realized investment gains decreased from a realized investment gain of $38.2 million in 1998 to a realized investment gain of $1.1 million in 1999. Realized investment gains were $9.8 million in 1997. The increase in interest rates in 1999 contributed to $7.8 million of fixed maturity losses, while the decrease in interest rates in 1998 and 1997 resulted in gains on sales of fixed maturities totaling $38.4 and $16.0 million, respectively. Increases (decreases) in the provision for asset losses of $(7.0) and $0.6 million, respectively, were recognized in 1999 and 1998.
The Financial Services segment again experienced a very high retention rate on public/non-profit contract renewals, renewing 100% of contracts that were eligible for renewal during the year. Part of this customer loyalty comes from initiatives to provide high-quality service while controlling expenses.
See the Note 1 to the Consolidated Financial Statements for additional information regarding accounting pronouncements.
The Company requires collateral in an amount greater than or equal to 102% of the borrowing for all securities lending transactions.
The following table summarizes changes for the three years December 31, 1999, in the benefit obligations and in plan assets for the Company's defined benefit pension plan and post-retirement medical plan. There is no additional minimum pension liability required to be recognized. There were no amendments to the plans due to the acquisition of Alta.
Premiums on accident and health, disability and dental insurance are reported as earned ratably over the contract period in proportion to the amount of insurance protection provided. A reserve is provided for the portion of premiums written which relates to unexpired terms of coverage.
New premiums declined 38% in 2004, primarily due to a 61% decrease in immediate annuity sales. In 2003, new premiums rose 85% versus 2002, primarily due to a 280% increase in the sale of immediate annuities. Annuity sales slowed in the second half of 2003, due in part to the Company’s emphasis on life insurance sales and changes in the marketplace. Immediate annuity sales in 2004 were 47% greater than 2002.
As discussed above, the Company recorded net realized investment gains in 2004 of $45.9 million. This was a $75.2 million improvement from net realized investment losses of $29.3 million in 2003. The change was largely due to the sale of a significant real estate property. The following table provides detail concerning realized investment gains and losses over the three years ended December 31.
The following table provides information regarding unrealized losses on investments available for sale, as of December 31, 2004.
For measurement purposes, a 10.0% annual increase in the per capita cost of covered health care benefits was assumed to decrease gradually to 5% in 2014 and thereafter.
Management reviews its investments on a continual basis for evidence of other than temporary declines in market value and exercises its judgment in making such a determination and calculating the amount of loss recognition (as a realized net capital loss). Generally, a security is considered a candidate for such a write-down to its current market value from its cost or amortized cost if it meets any of the following criteria: a) trading at a significant discount to par, amortized cost (if lower) or cost for an extended period of time; or b) a discrete credit event has occurred, resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under bankruptcy laws or any similar laws intended for the court supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a market value substantially lower than par value of their claims; or c) in the opinion of management, it is unlikely that TRH will realize a full recovery on its investment, irrespective of the occurrence of one of the foregoing events. As the market price following a significant credit event of any issuer may be volatile after such an event, other factors impacting its market performance and its recent financial performance will be considered to determine if further impairment has occurred. (See Operational Review for a discussion of realized net capital losses resulting from write-downs of securities for other than temporary declines in market value.)
SFAS No. 142, 'Goodwill and Other Intangible Assets,' was issued by the FASB in June 2001. This statement addresses financial accounting and reporting for acquired goodwill and other intangible assets and supersedes APB No. 17, 'Intangible Assets.' The new standard addresses how intangible assets that are acquired individually or with a group of other assets (but not those acquired in a business combination) should be accounted for in financial statements upon their acquisition. This statement also addresses how goodwill and other intangible assets should be accounted for after they have been initially recognized in the financial statements. Among other things, goodwill and some intangible assets will no longer be amortized, but will be subject to impairment tests at least annually. In accordance with
We have established the 1997 Stock Option Plan and the 2004 Non-Qualified Stock Option Plan, or the plans, to provide additional incentives to our employees, officers, and directors. Under the plans, an aggregate of 800,000 shares of Quotesmith.com common stock may be granted to participants in the plan. We account for stock option grants in accordance with Accounting Principles Board Opinion 25, “Accounting for Stock Issued to Employees” and related interpretations, and, accordingly, recognize no compensation expense for stock options granted to employees where the exercise price is equal to or greater than the market price at the date of the grant. Stock compensation accounting is discussed more fully in Notes 2 and 7 to the accompanying financial statements.
Our bonus commission revenues relate to the amount of premiums paid for new insurance policies to a single insurance company. Bonus commission revenues were $2.3 million for the year ended December 31, 2005, and $2.9 million for the year ended December 31, 2004.
Interest, Fees and Bond Issue Cost Amortization Expense. Interest, fees and other bond amortization expense was $50.8 million and $54.6 million and $70.9 million in 2011, 2010 and 2009, respectively. The decrease from 2009 was primarily due to the maturing of debt in March, 2010.
Our combined ratio increased by 19.2 points to 107.6% in 2010 compared to 88.4% in 2009. The loss ratio component increased 20.3 points in 2010 compared to 2009, principally due to the increase in current year catastrophe losses as a result of the Chilean earthquake, Australian hailstorms and floods, New Zealand earthquake and the Canadian hailstorm. Both the other underwriting expense ratio component and the commission and brokerage ratio component declined slightly compared to 2009.
Gross written premiums increased by 2.7% to $865.4 million in 2010 compared to $842.6 million in 2009. This was primarily due to increased writings in A&H primary, professional liability and California workers’ compensation business, partially offset by a reduction in audit premiums for workers’ compensation business. Net written premiums increased 6.2% to $373.7 million in 2010 compared to $352.1 million in 2009, primarily due to the increase in gross written premiums. Premiums earned increased 7.1% to $409.8 million in 2010 compared to $382.8 million in 2009. The change in premiums earned is relatively consistent with the increase in net written premium.
Incurred losses and LAE increased by $39.3 million, or 10.9%, to $398.4 million in 2011 compared to $359.0 million in 2010. This increase was primarily due to an increase of $42.5 million (0.6 points) in current year attritional losses primarily due to higher net premiums earned. The $24.7 million of prior years’ development was primarily attributable to excess casualty and California workers’ compensation reserves.
NIB and AIB market health and life insurance through non-affiliated insurance companies for individuals and groups. Approximately 90% of the health and life commission income in the fiscal year ended December 31, 1997, was from the CIGNA HealthCare medical and dental plan programs compared to approximately 90% in the same period of the prior year. Revenues for the fiscal year ended December 31, 1997, decreased $348,426 (14%) compared to the twelve month period ended December 31, 1996. Revenues for the twelve month period ended December 31, 1996, decreased $107,594 (4%) compared to the fiscal year ended March 31, 1996.
Group health and life insurance programs - ---------------------------------------- The decrease in commission income in the health and life insurance programs is primarily a result of a decrease in sales of small business group accounts due to increased competition in the health insurance field. The rates charged by CIGNA for certain group accounts have not been competitive and have resulted in non-renewal.
Investment Income - ----------------- Investment income consists of interest, dividends, and net realized investment gains as follows:
Fiscal Year Ended December 31 ----------------------------- 1997 1996 ---- ---- Certificates of deposit $ 225,000 $ 125,000 Commercial paper 4,750,000 2,810,000 Commercial bank money market accounts 426,775 1,144,292 Short-term U.S. treasury note 732,216 757,653 Savings account 3,504 24,800 --------- --------- Total short-term investments $6,137,495 $4,861,745 ========= =========
The Company has evaluated all transactions from April 30, 2013 through the financial statement issuance date for subsequent event disclosure consideration.
During the year ended April 30, 2013, the Company did not issue any shares of common or preferred stock.
The following table reconciles the Provision (Benefit) for Taxes to the U.S. Federal Statutory Tax rates:
Impairment writedowns include $9.5 million, $17.3 million and $20.8 million of provisions applied to bonds in 2002, 2001 and 2000, respectively. Impairment writedowns represent 0.66%, 1.21% and 1.23% of average invested assets for 2002, 2001 and 2000, respectively. For the five years ended December 31, 2002, impairment writedowns as a percentage of average invested assets have ranged from 0.03% to 1.23% and have averaged 0.67%. Such writedowns are based upon estimates of the net realizable value of invested assets and recorded when declines in the value of such assets are considered to be other than temporary. Actual realization will be dependent upon future events. The Company recorded $0.8 million ($0.5 million, net of tax) of additional impairments in 2001 pursuant to the implementation of EITF 99-20. This adjustment was recorded as a cumulative effect of accounting change in the accompanying statement of income and comprehensive income for 2001.
SHAREHOLDER’S EQUITY increased to $213.0 million at December 31, 2002 from $193.6 million at December 31, 2001, due principally to $12.7 million in other comprehensive income and $6.8 million of net income recorded in 2002.
(c) elimination of the year ended December 31, 1999, 1998 and 1997 results of operations of one acute care hospital for which Triad's management believes disposition over the next twelve months is probable;
Core (Pro Forma) Comparisons of the Years Ended December 31, 1999 and 1998
On a core (pro forma) basis, minority interests in earnings of consolidated entities remained relatively unchanged for the year ended December 31, 1999 compared to December 31, 1998.
Cash used in financing activities was $26.6 million in the year ended December 31, 1999 compared to cash provided by financing activities of $74.7 million in the year ended December 31, 1998. This decrease was due to $75.0 million payoff of the asset bridge loan, which was required from the asset sale proceeds, and $33.0 million in payments on other bank indebtedness. This was partially offset by changes in the intercompany balances with Columbia/HCA prior to the distribution.
Triad sold its acute care hospitals in Beaumont, Texas and Silsbee, Texas and its interest in an ambulatory surgery center in Beaumont, Texas on September 30, 1999 for $13.7 million. The Company retained the accounts receivable and certain liabilities with a net book value of $(1.7) million at December 31, 1999. A loss on the sale of $2.9 million was recognized during the year ended December 31, 1999. For the year ended December 31, 1999 and 1998, these facilities had net revenues of $36.4 million and $59.6 million, respectively, and pre-tax losses before loss on sale of assets and impairment charges of $15.1 million and $12.5 million, respectively.
Various federal, state and local laws have been enacted that, in certain cases, limit Triad's ability to increase prices. Revenues for acute care hospital services rendered to Medicare patients are established under the federal government's prospective payment system. Net Medicare revenues approximated 31.9% in 1999, 35.2% in 1998 and 36.5% in 1997.