AFG's insurance subsidiaries lease the majority of their office and storage facilities in numerous cities throughout the United States, including Great American's and AAG's home offices in Cincinnati. An AAG subsidiary owns an office building in Austin, Texas; approximately 80% of its 40,000 square feet is used by the company for its operations.
AFG subsidiaries own transferable rights to develop approximately 1.5 million square feet of floor space in the Grand Central Terminal area in New York City. The development rights were derived from ownership of the land upon which the terminal is constructed.
Please refer to "Forward Looking Statements" following the Index in front of this Form 10-K.
Dividend payments from subsidiaries have been very important to the liquidity and cash flow of the individual holding companies during certain periods in the past. However, the reliance on such dividend payments has been lessened in recent years by the combination of (i) reductions in the amounts and cost of debt at the holding companies subsequent to the Mergers (and the related decrease in ongoing cash needs for interest and principal payments), (ii) AFG's ability to obtain financing in capital markets, as well as (iii) the sales of certain noncore investments. Strong capital at the insurance companies also decreases the likelihood of a need for additional investment in these companies.
For statutory accounting purposes, equity securities are generally carried at market value. At December 31, 1999, AFG's insurance companies owned publicly traded equity securities with a market value of $1.1 billion, including equity securities of AFG affiliates (including subsidiaries) of $.7 billion. Since significant amounts of these are concentrated in a relatively small number of companies, decreases in the market prices could adversely affect the insurance group's capital, potentially impacting the amount of dividends available or necessitating a capital contribution. Conversely, increases in the market prices could have a favorable impact on the group's dividend-paying capability.
Great American's liability for unpaid losses and loss adjustment expenses includes amounts for various liability coverages related to environmental, hazardous
product and other mass tort claims. At December 31, 1999, Great American had recorded $797 million (before reinsurance recoverables of $220 million) for such claims on policies written many years ago where, in most cases, coverage was never intended. Due to inconsistent court decisions on many coverage issues and the difficulty in determining standards acceptable for cleaning up pollution sites, significant uncertainties exist which are not likely to be resolved in the near future.
Fixed Maturity Portfolio The fair value of AFG's fixed maturity portfolio is directly impacted by changes in market interest rates. For example, as a result of increased market rates, AFG's fixed maturity portfolio declined in value by more than six percent in 1999. AFG's fixed maturity portfolio is comprised of substantially all fixed rate investments with primarily short-term and intermediate-term maturities. This practice allows flexibility in reacting to fluctuations of interest rates. The portfolios of AFG's property and casualty insurance and life and annuity operations are managed with an attempt to achieve an adequate risk-adjusted return while maintaining sufficient liquidity to meet policyholder obligations. AFG's life and annuity operations use various actuarial models in an attempt to align the duration of their invested assets to the projected cash flows of policyholder liabilities.
Debt and Preferred Securities The following table shows scheduled principal payments (in millions) on fixed-rate long-term debt of AFG and its subsidiaries and related weighted average interest rates for each of the subsequent five years and for all years thereafter.
December 31, 1999 December 31, 1998 ----------------- ----------------- Scheduled Scheduled Principal Principal Payments Rate Payments Rate --------- ---- --------- ---- 2000 $ 26.9 9.96% 1999 $ 90.7 9.69% 2001 * 2000 49.1 9.85 2002 * 2001 * 2003 * 2002 * 2004 14.2 8.38 2003 * Thereafter 517.4 7.16 Thereafter 333.3 7.92 ------ ------ Total $562.5 7.32% $476.5 8.45% ====== ====== Fair Value $520.4 $490.6 ====== ====== (*) Less than $2 million.
At December 31, 1999 and 1998, respectively, AFG and its subsidiaries had $171 million and $114 million in variable-rate debt maturing primarily in 2002 and 2003. The weighted average interest rate on AFG's variable- rate debt was 6.82% at December 31, 1999 compared to 5.98% at December 31, 1998. There were $320 million and $325 million of subsidiary trust preferred securities outstanding at December 31, 1999 and 1998, none of which are scheduled for maturity or mandatory redemption during the next five years; the weighted average interest rate on these securities at both dates was 8.66%.
Investments Approximately two-thirds of AFG's consolidated assets are invested in marketable securities. A diverse portfolio of primarily publicly traded bonds and notes accounts for nearly 95% of these securities. AFG attempts to optimize investment income while building the value of its portfolio, placing emphasis upon long-term performance. AFG's goal is to maximize return on an ongoing basis rather than focusing on short-term performance.
Fixed income investment funds are generally invested in securities with short-term and intermediate-term maturities with an objective of optimizing total return while allowing flexibility to react to changes in market conditions. At December 31, 1999, the average life of AFG's fixed maturities was about 6 years.
Investments in MBSs represented approximately one-fourth of AFG's fixed maturities at December 31, 1999. AFG invests primarily in MBSs which have a reduced risk of prepayment. In addition, the majority of MBSs held by AFG were purchased at a discount. Management believes that the structure and discounted nature of the MBSs will mitigate the effect of prepayments on earnings over the anticipated life of the MBS portfolio. Over 90% of AFG's MBSs are rated "AAA" with substantially all being of investment grade quality. The market in which these securities trade is highly liquid. Aside from interest rate risk, AFG does not believe a material risk (relative to earnings or liquidity) is inherent in holding such investments.
Pretax operating earnings for 1998 (excluding the above mentioned A&E charge and sales gains) were 13% lower than those of 1997 due primarily to lower gains on sales of securities and affiliates and a decline in the underwriting results of the property and casualty insurance operations which were impacted by higher catastrophe losses in 1998. These declines were partially offset by higher income on investments.
The Specialty group includes a highly diversified group of business lines. Some of the more significant areas are inland and ocean marine, California workers' compensation, agricultural-related coverages, executive and professional liability, U.S.-based operations of Japanese companies, fidelity and surety bonds, collateral protection, and umbrella and excess coverages.
To understand the overall profitability of particular lines, the timing of claims payments and the related impact of investment income must be considered. Certain "short-tail" lines of business (primarily property coverages) have quick loss payouts which reduce the time funds are held, thereby limiting investment
income earned thereon. On the other hand, "long-tail" lines of business (primarily liability coverages and workers' compensation) have payouts that are either structured over many years or take many years to settle, thereby significantly increasing investment income earned on related premiums received.
Underwriting results of AFG's insurance operations outperformed the industry average for the fourteenth consecutive year (excluding the special $214 million A&E charge in 1998). AFG's insurance operations have been able to exceed the industry's results by focusing on growth opportunities in the more profitable areas of the specialty and nonstandard auto businesses.
1999 1998 1997 ---- ---- ---- Net Written Premiums (GAAP) Personal $1,154 $1,279 $1,345 Specialty 1,111 1,312(*) 1,468 Other Lines (2) 18 45 ------ ------ ------ $2,263 $2,609 $2,858 ====== ====== ====== Combined Ratios (GAAP) Personal 100.7% 97.3% 98.5% Specialty 102.7 105.0 100.0 Aggregate (including A&E and other lines) 102.0% 110.7% 101.4%
The Specialty group's net written premiums decreased $156 million (11%) during 1998 due primarily to the impact of a reinsurance agreement whereby approximately 30% of AFG's California workers' compensation premiums were ceded and the sale of the Commercial lines division. Excluding these operations, the net written premiums of the other specialty businesses were essentially the same as in 1997. Underwriting results worsened from the comparable period in 1997 due to losses from the midwestern storms in the second quarter of 1998 compared to milder weather conditions during 1997 and unusually good results in 1997 in certain other lines.
Life, Accident and Health Premiums and Benefits Life, accident and health premiums and benefits increased in 1999 (excluding Funeral Services division sold in 1998) due primarily to the acquisition of United Teacher Associates in October 1999 and increased sales by GALIC's Life division. The increase in 1998's premiums and benefits reflects primarily AAG's acquisition of Great American Life Assurance Company of Puerto Rico, Inc. in December 1997.
1998 compared to 1997 Investment income increased 2% from 1997 due primarily to an increase in the average amount of investments held partially offset by decreasing market interest rates.
Gains on Sales of Investee The gains on sales of investee in 1998 and 1997 represent pretax gains to AFG as a result of Chiquita's public issuance of shares of its common stock.
Gains on Sales of Subsidiaries The gains on sales of subsidiaries in 1998 include (i) a pretax gain of $152.6 million on the sale of the Commercial lines division, (ii) a pretax gain of $21.6 million on AAG's sale of its Funeral Services division and (iii) a charge of $15.5 million relating to operations expected to be sold or otherwise disposed of. The gains on sales of subsidiaries in 1997 include a pretax gain of $49.9 million on the sale of MDI and a charge of $17 million relating to operations expected to be sold or otherwise disposed of.
1998 compared to 1997 Other income increased $10.3 million (9%) in 1998 due primarily to income from the sale of operating real estate assets and lease residuals which more than offset the absence of revenues from a noninsurance subsidiary which was sold in the fourth quarter of 1997.
Other Operating and General Expenses From inception of AFG's Year 2000 Project in the early 1990's through 1997, AFG expensed approximately $9 million in remediation costs. During 1999 and 1998, respectively, $23 million and $27 million in such costs were expensed. Because a significant portion of the Year 2000 Project was completed using internal staff, these costs do not represent solely incremental costs.
1999 compared to 1998 Other operating and general expenses increased $15.6 million (4%) as AAG's $10 million realignment charge and increased expenses from start-up insurance services subsidiaries more than offset a decrease in franchise taxes and a decrease in amortization of annuity and life acquisition costs related to the Funeral Services division sold.
Minority Interest Expense Dividends paid by subsidiaries on their preferred securities have varied as the securities were issued and retired over the past three years.
In 1993, the European Union ("EU") implemented a regulatory system governing the importation of bananas into the EU. The quota regime grants preferred status to producers and importers within the EU and its former colonies, while imposing restrictive quotas, licenses and tariffs on bananas imported from other sources, including Latin America, Chiquita's primary source of fruit. This quota system has significantly decreased Chiquita's overall volume and market share in Europe. Following the imposition of the quota regime, prices within the EU increased and have generally remained higher than before the quota. Banana prices in other worldwide markets, however, have declined as the displaced EU volume entered those markets. Additionally, a stronger dollar in relation to major European currencies (mitigated in part by Chiquita's foreign currency hedging program) has contributed to lower earnings in the last few years.
Chiquita's results for 1998 include pretax writedowns and costs of $74 million as a result of significant damage in Honduras and Guatemala caused by Hurricane Mitch. Excluding these unusual items, operating income improved in 1998 compared to 1997 due primarily to lower delivered product costs for bananas on higher worldwide volume, which more than offset the adverse effect of lower banana pricing.
Chiquita's results for 1997 were adversely affected by a stronger dollar in relation to major European currencies and by increased banana production costs resulting from widespread flooding in 1996.
Consolidated Statement of Changes in Shareholders' Equity Years ended December 31, 1999, 1998 and 1997
The information required by the following Items will be included in AFG's definitive Proxy Statement for the 2000 Annual Meeting of Shareholders which will be filed with the Securities and Exchange Commission within 120 days after the end of Registrant's fiscal year and is incorporated herein by reference.
ITEM 12 Security Ownership of Certain Beneficial Owners and Management --------------------------------------------------------------
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (In Thousands, Except Per Share Data)
AMERICAN FINANCIAL GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Dollars In Thousands)
Investment in Investee Corporation Investments in securities of 20%- to 50%-owned companies are generally carried at cost, adjusted for AFG's proportionate share of their undistributed earnings or losses.
Reinsurance In the normal course of business, AFG's insurance subsidiaries cede reinsurance to other companies to diversify risk and limit maximum loss arising from large claims. To the extent that any reinsuring companies are unable to meet obligations under the agreements covering reinsurance ceded, AFG's insurance subsidiaries would remain liable. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policies. AFG's insurance subsidiaries report as assets (a) the estimated reinsurance recoverable on unpaid losses, including an estimate for losses incurred but not reported, and (b) amounts paid to reinsurers applicable to the unexpired terms of policies in force. AFG's insurance subsidiaries also assume reinsurance from other companies. Income on reinsurance assumed is recognized based on reports received from ceding reinsurers.
Deferred Acquisition Costs Policy acquisition costs (principally commissions, premium taxes and other underwriting expenses) related to the production of new business are deferred ("DPAC"). For the property and casualty companies, DPAC is limited based upon recoverability without any consideration for anticipated investment income and is charged against income ratably over the terms of the related policies. For the annuity companies, DPAC is amortized, with interest, in relation to the present value of expected gross profits on the policies.
Premium Recognition Property and casualty premiums are earned over the terms of the policies on a pro rata basis. Unearned premiums represent that portion of premiums written which is applicable to the unexpired terms of policies in force. On reinsurance assumed from other insurance companies or written through various underwriting organizations, unearned premiums are based on reports received from such companies and organizations. For traditional life, accident and health products, premiums are recognized as revenue when legally collectible
from policyholders. For interest-sensitive life and universal life products, premiums are recorded in a policyholder account which is reflected as a liability. Revenue is recognized as amounts are assessed against the policyholder account for mortality coverage and contract expenses.
Worldwide Insurance Company In April 1999, AFG acquired Worldwide Insurance Company (formerly Providian Auto and Home Insurance Company) for $157 million in cash. Worldwide is a provider of direct response private passenger automobile insurance.
Great American Life Insurance Company of New York and Consolidated Financial In February 1999, AAG acquired Great American Life Insurance Company of New York, formerly Old Republic Life Insurance Company of New York, for $27 million in cash. In July 1999, AAG acquired Consolidated Financial Corporation, an insurance agency, for $21 million in cash.
Chiquita During 1997 and 1998, Chiquita issued shares of its common stock in acquisitions of operating businesses. AFG recorded pretax gains of $11.4 million in the fourth quarter of 1997, $7.7 million in the first quarter of 1998 and $1.7 million in the second quarter of 1998 representing the excess of AFG's equity in Chiquita following the issuances of its common stock over AFG's previously recorded carrying value.
American Financial Enterprises, Inc. ("AFEI") In 1997, AFG and AFEI engaged in a merger transaction whereby the shares of AFEI not held by AFG were acquired by AFG for approximately $23 million in cash and approximately 2.1 million shares of its common stock.
Maturity ------------------- One year or less 5% After one year through five years 24 After five years through ten years 29 After ten years 17 --- Mortgage-backed securities 25 --- 100% ===
---- Realized (*) 25,841 (19,566) (2,196) 4,079 Change in Unrealized 4,982 (69,900) 22,721 (42,197)
(*) Includes $6.8 million in realized gains on fixed maturities transferred to Ohio Casualty in connection with the sale of the Commercial lines division.
1999 1998 ---- ---- Holding Companies: AFG 7-1/8% Senior Debentures due April 2009, less discount of $2,084 (imputed rate - 7.2%) $300,766 $ - AFG 7-1/8% Senior Debentures due December 2007 79,600 100,000 AFC notes payable under bank line 68,000 80,000 AFC 9-3/4% Debentures, less discount of $618 - 78,560 American Premier Underwriters, Inc. ("APU") 9-3/4% Subordinated Notes, including premium of $487 - 89,467 APU 10-5/8% Subordinated Notes due April 2000, including premium of $119 and $883 (imputed rate - 8.7%) 23,786 41,518 APU 10-7/8% Subordinated Notes due May 2011, including premium of $940 and $1,471 (imputed rate - 9.6%) 11,661 17,473 Other 9,110 8,518 -------- --------
In April 1999, AFG issued $350 million principal amount of 7-1/8% Debentures due 2009. The proceeds from this offering were used primarily to redeem or repurchase other debt. During the second half of 1999, AFG repurchased $47.2 million of its 7-1/8% Debentures due 2009 for $44 million in cash.
At December 31, 1999, sinking fund and other scheduled principal payments on debt for the subsequent five years were as follows (in thousands):
1999 1998 ---- ---- Interest of noncontrolling shareholders in subsidiaries' common stock $ 97,516 $124,622 Preferred securities issued by subsidiary trusts 319,600 325,000 AFC preferred stock 72,154 72,154 -------- --------
Preferred Securities Wholly-owned subsidiary trusts of AFCH and AAG have issued $325 million of preferred securities and, in turn, purchased a like amount of AFCH and AAG subordinated debt which provides interest and principal payments to fund the respective trusts' obligations. The preferred securities must be redeemed upon maturity or redemption of the subordinated debt. AFCH and AAG effectively provide unconditional guarantees of their respective trusts' obligations and AFG guarantees AFCH's obligations.
In December 1997, AFC retired all shares of its Series F and G Preferred Stock in exchange for approximately $244 million in cash and the above shares of Series J Preferred Stock. AFG recorded a charge to retained earnings of $153.3 million representing the excess of total consideration paid over the stated value of the preferred stock retired.
Minority Interest Expense Minority interest expense is comprised of (in thousands):
1999 1998 1997 ---- ---- ---- Interest of noncontrolling shareholders in earnings of subsidiaries $15,308 $21,845 $16,142 Accrued distributions by subsidiaries on preferred securities: Trust issued securities, net of tax 18,005 18,318 15,989 AFC preferred stock 5,772 5,772 13,715 ------- ------- -------
No compensation cost has been recognized for stock option grants. Had compensation cost been determined for stock option awards based on the fair values at grant dates consistent with the method prescribed by Statement of Financial Accounting Standards No. 123, AFG's net income and earnings per share would not have been materially different from amounts reported. For SFAS No. 123 purposes, calculations were determined using the Black-Scholes option pricing model and the following assumptions: dividend yield of 3% for 1999 and 2% for 1998 and 1997; expected volatility of 22% for 1999 and 21% for 1998 and 1997; weighted average risk-free interest rate of 5.4% for 1999, 4.8% for 1998 and 5.8% for 1997; and expected life of 7.3 years for 1999 and 1998 and 6.7 years for 1997.
Unrealized Gain (Loss) on Marketable Securities, Net The change in unrealized gain (loss) on marketable securities included the following (in millions):
J. Income Taxes The following is a reconciliation of income taxes at the statutory rate of 35% and income taxes as shown in the Statement of Earnings (in thousands): 1999 1998 1997 ---- ---- ---- Earnings before income taxes: Operating $302,061 $273,750 $379,630 Minority interest expense (48,780) (55,798) (54,456) Equity in net losses of investee (27,357) (13,198) (5,564) Extraordinary items (2,617) (1,265) (11,287) Accounting change (6,370) - - -------- -------- --------
Amounts applicable to: Minority interest expense 9,695 9,863 8,610 Equity in net losses of investee 9,574 4,620 1,947 Extraordinary items 916 495 4,054 Accounting change 2,516 - - -------- -------- -------- Provision for income taxes as shown on the Statement of Earnings $ 98,198 $ 94,067 $130,684 ======== ======== ========
1999 1998 1997 ---- ---- ---- Current taxes (credits): Federal ($ 5,434) $63,368 $ 35,495 Foreign 32 94 - State 511 652 (2,544) Deferred taxes: Federal 81,419 14,553 83,581 Foreign (1,031) 422 (459) ------- ------- -------- $75,497 $79,089 $116,073 ======= ======= ========
Expiring Amount ----------- ------ { 2000 - 2004 $91 Operating Loss { 2005 - 2009 2 Other - Tax Credits 19
Cash payments for income taxes, net of refunds, were $9.2 million, $45.9 million and $51.6 million for 1999, 1998 and 1997, respectively.
In management's opinion, the outcome of the items discussed in this note and under "Uncertainties" in Management's Discussion and Analysis will not, individually or in the aggregate, have a material adverse effect on AFG's financial condition or results of operations.
In the second quarter of 1998, AFG recorded approximately $41 million of losses due to severe storms in the midwestern part of the country. Included in "Loss and loss adjustment expenses" for 1998 is a fourth quarter noncash, pretax charge of $214 million for A&E exposures. Under the agreement covering the sale of the Commercial lines division in 1998, AFG retained liabilities for certain A&E exposures. Prompted by this retention and as part of the continuing process of monitoring reserves, AFG began a comprehensive review of its A&E exposures. AFG increased its A&E reserve to an amount consistent with the conclusions of the review.
AFG has realized substantial gains (losses) on sales of subsidiaries and investees in recent years (see Note B). Sales of subsidiaries also includes pretax charges of $10.5 million and $5.0 million in the third and fourth quarters of 1998, respectively, relating to operations expected to be disposed of. Realized gains (losses) on sales of securities, affiliates and other investments amounted to (in millions):
Insurance Reserves The liability for losses and loss adjustment expenses for certain long-term scheduled payments under workers' compensation, auto liability and other liability insurance has been discounted at about 8%, an approximation of long-term investment yields. As a result, the total liability for losses and loss adjustment expenses at December 31, 1999, has been reduced by $30 million.
Balance at end of period $3,224 $3,305 $3,489 ====== ====== ======
Add back reinsurance recoverables, net of allowance in 1999 and 1998 1,571 1,468 736 ------ ------ ------
1999 1998 1997 ---- ---- ---- Insurance group investment income: Fixed maturities $806.1 $849.6 $830.6 Equity securities 12.2 9.1 6.4 Other 7.7 12.1 10.6 ------ ------ ------ 826.0 870.8 847.6 Insurance group investment expenses (*) (40.6) (42.6) (37.3) ------ ------ ------
Policyholders' Net Earnings Surplus ---------------- --------------- 1999 1998 1997 1999 1998 ---- ---- ---- ---- ----
1999 1998 1997 ---- ---- ---- Cash and Investments $11,225 $11,748 Other Assets 4,732 4,116 Insurance Claims and Reserves 12,161 11,797 Debt 352 492 Minority Interest 568 600 Shareholders' Equity 1,549 1,754
Fair Value of Financial Instruments The following table presents (in millions) the carrying value and estimated fair value of AFG's financial instruments at December 31.
1999 1998 ------------------- ------------------- Carrying Fair Carrying Fair Value Value Value Value -------- ------- -------- ------- Assets: Fixed maturities $9,862 $9,862 $10,324 $10,324 Other stocks 410 410 430 430 Investment in investee 160 114 192 229
Unadjusted Adjusted Asset Effect of Asset (Liability) SFAS 115 (Liability) ----------- -------- ----------- ---- Fixed maturities $10,101.1 ($238.9) $9,862.2 Other stocks 229.2 180.5 409.7 Deferred acquisition costs 656.1 4.6 660.7 Annuity benefits accumulated (5,532.6) 13.1 (5,519.5) ------ Pretax unrealized (40.7)
Deferred taxes 85.1 13.4 98.5 Minority interest (498.4) 9.1 (489.3) ------
---- Fixed maturities $9,921.3 $403.0 $10,324.3 Other stocks 207.3 223.0 430.3 Deferred acquisition costs 472.9 (8.9) 464.0 Annuity benefits accumulated (5,424.1) (25.5) (5,449.6) ------ Pretax unrealized 591.6
Restrictions on Transfer of Funds and Assets of Subsidiaries Payments of dividends, loans and advances by AFG's subsidiaries are subject to various state laws, federal regulations and debt covenants which limit the amount of dividends, loans and advances that can be paid. Under applicable restrictions, the maximum amount of dividends available to AFG in 2000 from its insurance subsidiaries without seeking regulatory clearance is approximately $186 million. Total "restrictions" on intercompany transfers from AFG's subsidiaries cannot be quantified due to the discretionary nature of the restrictions.
In a 1997 transaction, AAG purchased for $4.9 million a minority ownership position in a company engaged in the production of ethanol. AFG's Chairman purchased the remaining ownership. During 1998, this company borrowed $4.0 million from AAG under a subordinated note bearing interest at 14% and paid a $6.3 million capital distribution, including $3.1 million to AAG. AAG's equity investment in this company at December 31, 1999 was $1.8 million. In addition, AAG and Great American have each extended a $5 million line of credit to this company; no amounts have been borrowed under the credit lines.
B. Schedules filed herewith for 1999, 1998 and 1997: Page ---- I - Condensed Financial Information of Registrant S-2
Costs and Expenses: Interest charges on borrowed money 34,707 18,748 9,702 Other operating and general expenses 9,937 8,600 7,824 -------- -------- -------- 44,644 27,348 17,526 -------- -------- --------
Extraordinary items - loss on prepayment of debt (1,701) (770) (7,233) Cumulative effect of accounting change (3,854) - - -------- -------- --------
Year Ended December 31, ---------------------------- 1999 1998 1997 ---- ---- ---- Operating Activities: Net earnings $141,440 $124,400 $192,250 Adjustments: Extraordinary items 1,701 770 7,233 Cumulative effect of accounting change 3,854 - - Equity in earnings of subsidiaries (158,067) (128,317) (187,814) Change in balances with affiliates (110,243) 76,116 54,620 Decrease (increase) in other assets (8,844) (2,972) 687 Increase (decrease) in payables 3,336 (2,612) 881 Dividends from subsidiaries 282 282 281 Other 15 90 1,588 -------- -------- -------- (126,526) 67,757 69,726 -------- -------- --------
10(d) Nonqualified Auxiliary RASP, filed as Exhibit 10(d) to AFG's Form 10-K for 1998. (*)