felanders/preprocessed huggingface dataset:
Premiums. Gross written premiums increased by 22.4% to $1,172.3 million in 2009 from $957.9 million in 2008, primarily due to $103.9 million (40.0%) increase in U.S. treaty casualty volume, $84.6 million from the new crop hail quota share treaties, a $15.8 million (2.6%) increase in treaty property volume and a $10.5 million (12.0%) increase in facultative volume. Our treaty casualty premiums were higher as we wrote more quota share business as a replacement for business previously written on an excess of loss business. Net written premiums increased by 15.9% to $660.6 million in 2009 compared to $569.9 million in 2008, primarily due to the increase in gross written premiums combined with increased cessions under the affiliated quota share agreements. Premiums earned decreased by 1.3% to $676.4 million in 2009 compared to $685.1 million in 2008. The change in premiums earned relative to net written premiums is primarily the result of timing; premiums, for proportionate contracts, are earned ratably over the coverage period whereas written premiums are recorded on the initiation of the coverage period.
Incurred losses and LAE increased by 2.3% to $422.2 million in 2008 compared to $412.7 million for 2007. In 2008, we strengthened our reserves for an auto loan credit insurance program by $85.3 million as the deterioration in general economic conditions adversely impacted loan performance resulting in unforeseen increases in loan default rates and claim amounts. We had also strengthened the reserves for this program by $64.7 million in 2007. In 2008, we commuted our remaining liability on this program with the largest policyholder representing approximately one third of the remaining loss exposure. Given the magnitude of our current reserves, the maturity of the remaining insured portfolio and the reduced principal exposure, we believe the future loss development, if any, related to this program will not be material. Other than as related to this program, the segment experienced negligible reserve development in 2008 and favorable reserve development in 2007.
Premiums. Gross written premiums increased by 19.9% to $1,084.5 million in 2009 compared to $904.7 million in 2008. As a result of our strong financial strength ratings, we continue to see increased participations on treaties in most regions, new business writings and preferential signings, including preferential terms and conditions. In addition, rates, in some markets, also contributed to the increased written premiums. Premiums written through the Brazil, Miami and New Jersey offices increased by $122.9 million (21.3%), the Asian branch increased by $32.4 million (17.1%) and the Canadian branch premiums increased by $24.5 million (17.7%). Net written premiums increased by 9.4% to $589.7 million in 2009 compared to $539.1 million in 2008, primarily due to the increase in gross written premiums coupled with the increase in cessions under the affiliated quota share. Premiums earned increased by 7.5% to $586.7 million in 2009 compared to $545.6 million in 2008, generally consistent with the increase in net written premiums.
In September 2003, we entered into a 15-year lease for a new 106,000 square-foot building in Virginia Beach, Virginia. The construction of this new location was completed in September 2004. The new facility currently houses our primary call and data centers.
Cash and investments totaled $612.1 million at the end of 2004. A significant portion of this cash is regulated by state capital requirements. However, $271.7 million of our cash and investments was unregulated and held at the parent level. In January 2005, we used $126.8 million of unregulated cash to effect the stock acquisition of CarePlus.
The National Association of Insurance Commissioners (NAIC) has adopted rules which, to the extent that they are implemented by the states, set new minimum net worth requirements for insurance companies, HMOs and other entities bearing risk for healthcare coverage. The requirements take the form of risk-based capital rules.
1. A “modified prospective” method in which compensation cost is recognized beginning with the effective date (a) based on the requirements of SFAS No. 123(R) for all share-based payments granted after the effective date and (b) based on the requirements of SFAS No. 123 for all awards granted to employees prior to the effective date of SFAS No. 123(R) that remain unvested on the effective date.
On February 9, 2005, we granted an additional 1,491,012 options at an exercise price of $41.60.
The homeowner policy provides FNU the right to cancel any policy within a period of 90 days from the policy's inception with 25 days’ notice, or after 90 days from policy inception with 95 days’ notice, even if the risk falls within our underwriting criteria.
Premiums receivable, net of allowance for credit losses, increased $14.4 million, or 179.4%, to $22.4 million as of December 31, 2013, compared with $8.0 million as of December 31, 2012.
Net income increased $8.4 million, or 195.1%, to $12.7 million for 2013, compared with $4.3 million for 2012.
As of December 31, 2013, 2012, and 2011, we did not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as “structured finance” or “special purpose” entities, which were established for the purpose of facilitating off-balance-sheet arrangements or other contractually narrow or limited purposes. As such, management believes that we currently are not exposed to any financing, liquidity, market or credit risks that could arise if we had engaged in transactions of that type requiring disclosure herein.
A summary of the amortized cost, estimated fair value, gross unrealized gains and losses of debt and equity securities at December 31, 2013 and 2012 is as follows.
· The claims service fees payable by the Merged Company to Federated National Adjusting, Inc. (“FNA”), formerly known as Superior Adjusting, Inc., were reduced from the traditional 4.5% of gross earned premium to 3.6% of gross earned premium. This will have no impact on the Company’s consolidated financial results.
The merger of FNIC and American Vehicle will be an ongoing transition, many aspects of which will take effect over time. References to the companies contained herein are intended to be references to the operations of FNIC following the January 2011 merger. References to the historical activities of American Vehicle are appropriately identified throughout this document.
As of December 31, 2011, FNIC was outside NAIC’s usual range for two of thirteen IRIS ratios. These exceptions related to two-years overall operating ratio and investment yield.
In October 2008, the FASB issued accounting guidance to clarify the application of GAAP in determining fair value of financial instruments in a market that is not active. The guidance was effective upon issuance, including prior periods for which financial statements had not been issued. Our adoption of this guidance did not have a material effect on our financial position, results of operations or cash flows.
at Financial Services Centre, Bishops Court Hill, St. Michael, Barbados. The
amount by which the earned premium exceeded $5,000,000 in the previous fiscal
losses incurred as discussed below. The Company had earned premiums of
December 31, 1992 and 1991, respectively. Investment income during the period
ended December 31, 1992 and 1991, respectively. These gains are attributable
ASSETS Investments (c),3,6 $29,882,488 $24,382,923 Cash and cash equivalents 2(c),6 6,788,771 1,710,738 Accrued investment income 861,190 1,115,367 Due from ceding company 2,331,978 2,356,608 Deferred acquisition costs 2(b) 10,495,206 7,281,854
Debt securities issued by foreign governments and their agencies $ 14,080,561 $204,554 $(43,057) $14,242,058
Net cash provided by financing activities was $205,505, $2,550,600 and $1,745,965 for 1999, 1998 and 1997, respectively. The Company continues to pay down on its outstanding debt. Such payments are included within this category.
J. POLICY AND CONTRACT CLAIMS - Policy and contract claims include provisions for reported claims in process of settlement, valued in accordance with the terms of the policies and contracts, as well as provisions for claims incurred and unreported based on prior experience of the Company.
The Company has established a deferred tax asset of $1,784,870 for its operating loss carryforwards and has established an allowance of $270,958. The Company has established a deferred tax asset of $398,615 for its total unrealized losses on investments of $1,138,900, and has established an allowance of $398,615. The total allowances established on deferred tax assets increased $322,343 in 1999.
The expense or (credit) for income differed from the amounts computed by applying the applicable United States statutory rate of 35% to the loss before income taxes as a result of the following differences:
Number Outstanding 451 Exercise Price $13.07 Remaining contractual life on 430 options 1/4 year Remaining contractual life on 21 options 3/4 year
Mr. Correll is a member of the Board of Directors of UTG and currently UTG's largest shareholder through his ownership control of FSF and its affiliates. Mr. Correll is the majority shareholder of FSF, which is an affiliate of First Southern Bancorp, Inc., a bank holding company that operates out of 14 locations in central Kentucky. Prior to the above transaction, and following the UTGL99 liquidation and subsequent merger of UII into UTG, FSF owned approximately 34% of UTG. As of December 31, 1999, Mr. Correll owns or controls directly and indirectly approximately 46% of UTG.
The principal offices of the Company are located at 300 River Place, Suite 4950, Detroit, Michigan, where it currently leases approximately 3,800 square feet of office space.
Gain (loss) on disposal of property, equipment, mineral properties, and write-offs increased from a loss of $83,828 in 2015 to a gain of $369,693 for the year ended December 31, 2016. The increase is due to the sale of mineral properties and royalties during the year ended December 31, 2016 compared to write-offs of property and equipment at SPD during the year ended December 31, 2015.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
With the loss of control of GPY on September 2, 2015, that promissory note was initially recognized at fair value, and has subsequently been carried at amortized cost using the effective interest rate method.
• Maximizing long-term shareholder value by optimizing capital used to operate and grow Till.
In addition to general insurance contracts, Omega also assumes portfolios of existing claims from other insurers through assumption reinsurance transactions. Those portfolios of claims could be from any line of business that the transferring insurer wrote in the past. Under those assumption reinsurance transactions, Omega is exposed to certain risks defined in the underlying insurance contracts that were originally written by the transferring insurer.
On April 11, 2017, a Till subsidiary, Golden Predator US Holding Corp., received $1.16 million for the sale of a mineral property to an unrelated party resulting in a gain of approximately $1 million.
In this review, we aim to show how we are engaging with others and the future that awaits us.
Insurers face a growing burden of expectations. What role do you see for personal insurers in today’s world?
People needed to lean heavily on insurers during the pandemic crisis.
With the looming economic crisis, purchasing power, and thus pricing, will become crucial factors. Health and safety will be most people’s priorities for several years. Technology will play a key role going forward. It has been welcomed into most homes after proving its effectiveness with online shopping, classroom and track & trace solutions.
62% of policies in force invested in unit-linked investments premium income derived from unit-linked policies
accreditation, and a non-financial management report is published semi-annually so that investors can track the positive impact of their savings, including CO2 emissions, water consumption, workforce trends, etc. A minimum investment of just €500 applies to this management agreement that “does the right thing”.
Sustainable buildings accounted for 49% of our energy and environmental transition investments in 2019.
t h e y m ig h t n o t o therwise h ave ev er do ne
A chatbot answers any questions potential subscribers may have before and after sign-up, and the
CNP Assurances’ model is predicated on long-term partnerships with banks and social protection providers in France and around the world. By bringing to bear their in-depth customer knowledge together with our insurance expertise, we are able to create truly effective solutions.
subsidiary in Cyprus possesses unrivalled property insurance, and we lead the market there.
CNP Assurances’ Board of Directors, the Annual General Meeting of 17 April 2020 approved appropriation of the full amount of 2019 earnings to retained earnings rather than paying out a dividend of €0.94 per share (up 5.6%, vs. 2018)
We are shaking up insurance and rebooting how we work with our partners so we can support and guide you along the path to a more open, peaceful and sustainable world.
CIGNA’s Consolidated Financial Statements and the report of its independent auditors in CIGNA’s Annual Report are incorporated by reference, as is the unaudited information set forth under the caption “Quarterly Financial Data--Consolidated Results”.
Operating data: Premiums earned $189,188 $194,587 $167,304 $143,866 $135,002 Net investment income 17,246 16,372 14,908 14,564 13,996 Realized investment gains 7,342 4,477 3,794 1,538 286 Other income (expense) (59) 1,042 563 (146) 54 Total revenues 213,717 216,478 186,569 159,822 149,338
The Company maintains a defined benefit pension plan for the benefit of eligible employees. Under the plan, all employees of the Company completing more than 1,000 hours of employment in a 12-month period become eligible to participate. The plan provides for a pension annuity beginning at age 65 based on the employee's average monthly base pay during the five highest consecutive salary years out of the last ten. Provisions for delayed retirement benefits, early retirements benefits after age 55, disability and death benefits, optional methods for benefit payment, payments to an employee who leaves after a certain number of years of service, and payments to an employee's surviving spouse are also covered under the plan.
Net periodic pension costs for the supplemental retirement income plan for the years ended December 31, 1998 and 1997 were approximately $94,000 and $72,000 respectively.
A 6.5 and 7.0 percent weighted average discount rate was used for 1998 and 1997, respectively, to determine the accumulated post- retirement benefit obligation at December 31, 1998. Net periodic pension costs for the post-retirement plan for the year ended December 31, 1998 and 1997 included the following components:
In 1987, the Company's Board of Directors and Shareholders approved an Incentive Stock Plan ("Plan") for the purpose of attracting and retaining key employees. The maximum number of common shares to be authorized for issuance was limited to 750,000 shares over a 10 year term. Awards under the Plan may include non- qualified and incentive stock options, stock appreciation rights, and restricted stock. Options to purchase common shares granted under the Plan are to have an exercise price of not less than the fair market value of the Company's common shares on the date of grant. Options are to be exercisable beginning one year from the date of grant and are to expire over various periods not to exceed ten years from the date of grant. Restricted stock awards may be granted subject to terms and conditions as prescribed by the committee which administers the Plan. Under the 1987 Plan, which expired on January 21, 1997, total options with respect to 477,144 shares were granted and 272,856 options had expired. In early 1996, the Board of Directors and Shareholders approved the 1996 Employee Incentive Stock Plan, which would eventually replace the 1987 Plan. Under the 1996 Plan, which became effective on May 8, 1996, the maximum number of shares authorized for issuance is 750,000 shares over the next ten years. During 1998 and 1997, options with respect to 13,200 and 271,994 shares, respectively, were granted under the 1996 Plan.
Selected financial data for the five years ended September 30, 1997 is incorporated by reference to page 20 of the 1997 Annual Report to Shareholders filed with this Form 10-K.
In addition, factors such as credit and market conditions, regulation, interest rates, taxes, market fluctuations and general economic, market and political conditions affect the Company’s profitability.
The following sections discuss the accounting policies applied in preparing our Financial Statements that management believes are most dependent on the application of estimates and assumptions and require management’s most difficult, subjective, or complex judgments.
(1) Fixed income expected rate of return for our variable annuities business is a levelized rate, blending current rates and long-term expected returns. Fixed income expected rate of return for our variable life insurance business is the long-term expected return, as a blend does not materially affect results due to the long duration of the liability.
As shown in the following table, the loss from operations for 2011 included $209 million of charges from adjustments to the amortization of DAC/DSI and the reserves for the GMDB and GMIB features of our variable annuity products compared to $151 million of benefits included in income from operations in 2010, resulting in a $360 million unfavorable variance.
Net investment income decreased $71 million from $377 million for the year ended December 31, 2010 to $306 million for the year ended December 31, 2011 as a result of lower average annuity account values in the general account primarily resulting from net transfers in 2011 and 2010 from the fixed-rate option in the general account to the separate accounts relating to the asset transfer feature and transfers from customer elected dollar cost averaging (“DCA”) program.
General, administrative and other expenses increased $23 million, from $414 million for the year ended December 31, 2010 to $437 million for the year ended December 31, 2011, primarily driven by higher asset based trail commissions due to higher average separate account asset values, as discussed above, and higher contractual trail commission rates which are applied to in force business as it ages.
Liquidity refers to the ability to generate sufficient cash resources to meet the payment obligations of the Company. Capital refers to the long term financial resources available to support the operation of our business, fund business growth, and provide a cushion to withstand adverse circumstances. The ability to generate and maintain sufficient liquidity and capital depends on the profitability of our business, general economic conditions and our access to the capital markets through affiliates as described herein.
For most annuity contracts, charges assessed against contractowner funds for the cost of insurance, surrenders, expenses, and other fees are recorded as revenue as charges are assessed. Other amounts received for these contracts are reflected as deposits and are not recorded as premiums or revenue. Related policy benefits are recorded in relation to the associated premiums or gross profit so that profits are recognized over the expected lives of the contracts. When annuity payments with life contingencies begin under contracts that were initially investment contracts, the accumulated balance in the account is treated as a single premium for the purchase of an annuity and reflected in both Premiums and Interest credited and other benefits to contractowners in the Consolidated Statements of Operations.
The following disclosures are made in accordance with the requirements of FAS No. 107, “Disclosures about Fair Value of Financial Instruments” (“FAS No. 107”). FAS No. 107 requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates, in many cases, could not be realized in immediate settlement of the instrument.
The estimated amount of VOBA to be amortized, net of interest, is $120.4, $107.0, $100.0, $96.2, and $92.9 for the years 2006, 2007, 2008, 2009, and 2010, respectively. Actual amortization incurred during these years may vary as assumptions are modified to incorporate actual results.
• The Producers’ Deferred Compensation Plan, which allows participants to defer up to a specified portion of their eligible compensation on a pre-tax basis.
Premiums increased by $38.0 million primarily as a result of higher term insurance sales and renewals of the Term Essential and Term Elite products of $50.9 million as these are relatively new products launched at the end of 2000. Partially offsetting this increase is lower extended term premiums of $4.9 million, and lower Taiwan premiums of $7.5 million as all Taiwan premiums are ceded after January 31, 2001 pursuant to the coinsurance agreement. Extended term policies represent term insurance the Company issued, under policy provisions to customers who previously had lapsing variable life insurance with the Company. The policyholder can purchase extended term or reduced paid-up life insurance based on the amount that can be purchased with the remaining cash value of the contract (if the policyholder does not elect to receive the remaining cash value as a cash distribution). The application of the remaining cash value to purchase such coverage is recorded as premium revenue in the Statement of Operations. Future policy benefit reserves are also increased by the amount of these premiums.
Gross unrealized losses of fixed maturity securities where estimated fair value has been 20% or more below amortized cost were $3.9 million as of December 31, 2002, compared to $4.0 million as of December 31, 2001. The gross unrealized losses in 2002 were primarily concentrated in the utilities, manufacturing, and transportation sectors while the gross unrealized losses in 2001 were concentrated in the transportation, services, and manufacturing sectors.
Everest Re's corporate offices are located in approximately 230,500 square feet of leased office space in Liberty Corner, New Jersey. Bermuda Re's corporate offices are located in approximately 5,800 total square feet of leased office space in Hamilton, Bermuda. The Company's other 22 locations occupy a total of approximately 181,200 square feet, all of which are leased. Management believes that the above-described office space is adequate for its current and anticipated needs.
Based on weighted average diluted common shares outstanding of 41.8 million, 43.8 million, 45.8 million, 49.1 million and 52.1 million for 2016, 2015, 2014, 2013 and 2012, respectively.
Segment Expenses. Commission and brokerage increased by 8.3% to $234.0 million in 2016 compared to $216.0 million in 2015. The increase was mainly due to the impact of the increase in premiums earned and changes in the mix of business. Segment other underwriting expenses increased slightly to $36.3 million in 2016 compared to $36.0 million in 2015.
Commission and brokerage increased by 8.6% to $216.0 million in 2015 compared to $198.8 million in 2014. The rise was primarily due to the impact of the increase in premiums earned. Segment other underwriting expenses increased to $36.0 million in 2015 compared to $34.9 million in 2014. The increase was primarily due to the impact of the increases in premiums earned.
Investment Valuation. Our fixed income investments are classified for accounting purposes as available for sale and are carried at market value or fair value in our consolidated balance sheets. Our equity securities are also held as available for sale and are carried at market or fair value. Most securities we own are traded on national exchanges where market values are readily available. Some of our commercial mortgage-backed securities ("CMBS") are valued using cash flow models and risk-adjusted discount rates. We hold some privately placed securities, less than 0.5% of the portfolio, that are either valued by brokers or an investment advisor or in limited circumstances when broker prices are not available for private placement, we will value the securities using comparable market information. At December 31, 2016 and 2015, our investment portfolio included $917.0 million and $765.5 million, respectively, of limited partnership investments whose values are reported pursuant to the equity method of accounting. We carry these investments at values provided by the managements of the limited partnerships and due to inherent reporting lags, the carrying values are based on values with "as of" dates from one month to one quarter prior to our financial statement date.
At December 31, 2016 and 2015, Everest International Credit Facility had £130.6 million and £165.0 million outstanding letters of credit, respectively.
Our reinsurance premiums written and earned during 2014 included $0.3 million of reinstatement premiums.
See Note 11 of the Notes to Consolidated Financial Statements for detailed information regarding the nature of the expenses that we incur pursuant to the Investment Management Agreement, the Underwriting and Insurance Management Agreement and the Administrative Services Agreement. During 2014 and 2013, we incurred less than $0.1 million and zero of expense pursuant to the Underwriting and Insurance Management Agreement, respectively.
Underwriting and Insurance Management Agreement. Pursuant to the Underwriting and Insurance Management Agreement, we are obligated to pay the Manager a performance fee (the “Performance Fee”) which is equal to 20% of our pre-tax, pre-Performance Fee income over a hurdle amount (as defined in the Underwriting and Insurance Management Agreement) and payable in arrears in cash each quarter (or part thereof) that such agreement is in effect.
As of December 31, 2014, we were not subject to any off-balance sheet arrangements that we believe are material to our investors.
· we received $50.0 million from Montpelier Re in connection with the Private Placement;
Commercial automobile products covered by our reinsurance treaties from July 2013 through June 2019 are subject to an unlimited aggregate stop-loss provision. Currently each of these treaty years is reserved at or above the attachment level of these treaties. For every $100 of additional loss, we are only responsible for our $25 retention. The following table illustrates the benefit of these reinsurance treaties based on select theoretical scenarios. For these theoretical scenarios, the net financial loss to the Company is approximately 25% of the gross loss.
Other operating expenses for 2018 increased $23.6 million, or 20.8%, to $137.2 million compared to 2017. The increase in other operating expenses was primarily due to increased commission expenses as a result of increased premiums written, higher salary and benefit expense and a non-cash impairment charge of $3.2 million recorded in the fourth quarter of 2018 to write off our entire goodwill balance. See Note M, "Acquisition and Related Goodwill and Intangibles" to the consolidated financial statements in Part II, Item 8 of this Annual Report on form 10-K for further discussion. The expense ratio was 29.4% during 2018, or 28.7% excluding the impact of the goodwill impairment charge, compared to 33.0% for 2017. The decrease in the expense ratio was primarily related to the leveraging effect of higher net premiums earned in 2018 compared to 2017.
Approximately 60% of the Company's assets are composed of investments at December 31, 2019. Approximately 90% of these investments are publicly-traded, owned directly and have readily-ascertainable market values. The remaining 10% of investments are composed primarily of minority interests in several limited partnerships. These limited partnerships are engaged in long-short equities, private equity, country-focused funds and real estate development as an alternative to direct equity investments. These partnerships do not have readily-determinable market values themselves. Rather, the values recorded are those provided to the Company by the respective partnerships based on the underlying assets of the limited partnerships. While a substantial portion of the underlying assets are publicly-traded securities, those which are not publicly-traded have been valued by the respective limited partnerships using their experience and judgment.
The Company's fixed income securities are over 92% invested in investment grade fixed income investments. The Company has no fixed income investments that were originally issued with guarantees by a third-party insurance company nor does the Company have any direct exposure to any guarantor at December 31, 2019.
The Company utilizes the services of an investment firm of which one director of the Company is a partial owner. This investment firm manages equity securities and fixed income portfolios held by the Company with an aggregate market value of approximately $8,883 at December 31, 2019. Total commissions and net fees earned by this investment firm and its affiliates on these portfolios were $145, $103 and $97 for the years ended December 31, 2019, 2018 and 2017.
The increase in medical malpractice net premiums earned was primarily attributable to an increase in the number of physicians insured in the programs for psychiatrists and alternative risks, geographical expansion in Ohio, Texas, Michigan and Illinois, growth in the dental program endorsed by the Academy of General Dentistry, and the acquisition of Western on December 1, 1997, partially offset by a decrease in Florida business due to rate increases, the sale of the Florida medical malpractice business on December 1, 1997 and the reclassification of certain medical malpractice business to the general liability line of business.
Net premiums earned for the general liability line increased primarily because of increases in various programs, including social services, alarms and guards, demolition contractors, pest control, excess employer's liability and asbestos abatement as a result of the acquisition of United Capitol in May 1996. These increases were partially offset by a decrease in net premiums earned in the umbrella and crane operator liability programs.
compliance with SEC Rule 10b-18 at the discretion of the Chairman of the Board. There is no commitment or obligation on the part of the Company to purchase any particular number of shares, and the program may be suspended at any time at the Company's discretion. The Company did not purchase any shares in 1997. In 1996, the Company purchased 13,200 shares of its Common Stock at a cost of $134,000 pursuant to the program.
Effective January 1, 1998, the Company entered into an Aggregate Excess of Loss Reinsurance Agreement (Stop Loss) with Zurich N.A. for the 1998 and 1999 accident years. The new agreement includes selected progress underwritten by United Capital, Western, and selected core programs of Frontier Insurance and Frontier Pacific which were part of the original 1995-1997 Stop Loss Agreement. Under the terms of the agreement, Zurich N.A. provides reinsurance protection within certain contract aggregate dollar limits for losses and LAE in excess of a predetermined ratio of these expenses to earned premiums for a given accident year for subject insurance programs. The maximum amount recoverable for an accident year is 240% of the reinsurance premium paid for the accident year or $230,000,000 in the aggregate for the two years.
Company is continuing to defend all SUNY faculty members against malpractice claims that have been asserted and is maintaining reserves therefor adjusted for the anticipated recoveries.