- ---------- (1) The net loss for the year ended December 31, 1994 includes after-tax expenses of $3.6 million for losses incurred related to the Northridge, California earthquake and $1.2 million of recapitalization expenses. The net loss for the year ended December 31, 1992 includes after-tax expenses of $8.4 million for losses incurred related to Hurricanes Andrew and Iniki. In addition, during 1992, a valuation allowance of $1.8 million (which resulted in a $1.2 million after-tax charge) was established to reduce deposits not meeting the conditions for reinsurance accounting of SFAS No. 113 to amounts that would be recoverable under experience refund calculations consistent with the requirements of SFAS No. 113.
(2) Earnings per common share in 1996 and 1995 were calculated based upon the weighted average number of common shares outstanding excluding the effect of common stock equivalents which would not be materially dilutive. The 1996 earnings per share do not include the results of Archer and the 1995 earnings per share do not include the results of Piedmont because their results of operations subsequent to the Acquisition and Merger to the end of the year indicated were immaterial to Chartwell. Pro forma income (loss) per share is presented for 1994, 1993 and 1992. Such computation includes the conversion of certain preferred stock and the exercise of certain warrants, both of which occurred in connection with the 1994 refinancing. Common equivalent shares from the exercise of stock warrants and options remaining outstanding have not been included as their effect on earnings would be antidilutive.
(6) The statutory surplus of Chartwell Reinsurance was increased by $20.0 million in 1996 from the proceeds of a common stock offering, by $67.1 million in 1995 as a result of the Merger and by $30.0 million in 1994 from the proceeds of the Senior Notes offering. The ratio of premiums written to surplus ratio for 1995 includes only the premiums of Chartwell Reinsurance and excludes the increase in surplus that resulted from the Merger.
Interest and Amortization. Interest and amortization expenses were $10.1 million for the year ended December 31, 1996 compared to $7.8 million for the same period in 1995. Interest and amortization on Re Holdings' 10.25% Senior Notes due 2004 (the "Senior Notes") was $6.0 million for the year ended December 31, 1996 and $8.0 million for the comparable period in 1995. The 1996 amount was reduced due to the redemption of 35% of the principal amount of outstanding Senior Notes on April 8, 1996. Interest expense for the year ended December 31, 1996 also includes $1.4 million of interest and amortization expense on a $20.0 million bank facility established on the date of Merger, $2.2 million of interest and amortization on the Company's CI Notes and $0.5 million of interest and amortization related to the Archer acquisition.
Year Ended December 31, 1995 Compared With Year Ended December 31, 1994
Revenues: Total revenues for the year ended December 31, 1995 increased 25% to $144.5 million, compared to $115.3 million for the comparable period in 1994. The accompanying table summarizes gross and net premiums written and total revenues for the periods indicated: