felanders/preprocessed huggingface dataset:
Assistant Managers: V, V. Castelberg, J. Gailloud, P. GuggenbUhl PI. Pessina, 0. Wiesmann
We have the honour to present to you the Seventy-seventh Annual Report and Statement of Accounts of the Company for the year 1940.
The Fire Account, however, which in previous years regularly contributed a sub­ stantial part of the profit, has been disappointing, the margin of profit having declined considerably; on the other hand the premium income has increased.
The Hail Section, compared with the heavy deficit of the previous year, shows a marked improvement.
In the Marine Department it appeared desirable to set up additional reserves in view of delays in loss advices due to the war; the account was profitable. The insurance of War Risks by the State in many countries, has in general brought welcome relief from heavy war risk commitments. We have so far been spared any large war losses.
Third Party Liability Insurance wr.s considerably reduced in volume as a consequence of the laying up or the requisitioning by military authorities of numerous vehicles. The prepaid premiums on insurances which were suspended have been set aside and the premium reserve therefore shows an unusual increase. The experience in both the Automobile and the General Liability Sections was favourable.
In Life Insurance, production of new business reflects the adversity of the times. In general policies for larger amounts were rare in comparison with previous years. The depreciation of various currencies, particularly in territories in which we have an important amount of business, together with an increase in surrenders, resulted in a reduction both in the total of sums insured and in premium income. The mortality experience was quite good in spite of a number of war claims. The result is satisfactory.
The Profit and Loss Account closes with a profit of . . Frs. 10,728,981.72 which at the General Meeting of the Shareholders it was decided to distribute as follows: Staff Life Insurance and Pension Fund Frs. 500,000. — Dividend Frs. 127.66 per share » 7,404,280. — Directors . » 127,430.— Social Welfare Contribution . » 100,000. — Garry Forward » 2,597,271.72
Premium Reserve from 1939 . . . Reserve for Unsettled Claims from 1939 Reserve for Extraordinary Losses Premiums, less cancellations Frs. 177,813,711.56 Premiums for wRich no reserve is necessary „ 30,749,053.33
Life DepL. Premium Reserve from 1939 Annuity Fund from 1939 Reserve for Unsettled Claims from 1939 Premiums, less cancellations Consideration for Annuities Interest Interest, after deduction of interest due to Life Dep^
Premium Reserve Frs. 330,695,319.— Annuity Fund 8,642,041. — Reserve for Unsettled Claims 5,901,837.
By order of the Board: Cli. Simon, P. Altlier, E. Bebler,
The information set forth on pages 21 through 27 of the Company's 2000 Annual Report is incorporated herein by reference.
MMC subsidiaries had also occupied a combined total of fifteen floors in the two towers of the World Trade Center, and as a result of the destruction of the World Trade Center in the September 11, 2001 terrorist attacks, 295 MMC colleagues were lost. Employees have been relocated to various sites in midtown Manhattan and the New York metropolitan area. MMC has entered into a lease covering approximately 300,000 rentable square feet in a building under construction in Hoboken, New Jersey.
has been leased back on a temporary basis pending the lease of office space in a new building under construction in London.
The selected financial data on page 55 of the 2001 Annual Report are incorporated herein by reference.
Information on pages 25 through 33 of the 2001 Annual Report is incorporated herein by reference.
The Consolidated Financial Statements and the Independent Auditors' Report thereto on pages 34 through 53 of the 2001 Annual Report and Selected Quarterly Financial Data (Unaudited) on page 54 of the 2001 Annual Report are incorporated herein by reference. Supplemental Notes to Consolidated Financial Statements are included on page 30 hereof.
Pursuant to an administrative services agreement with American International Company, Limited (“AICL”), an indirect wholly-owned subsidiary of AIG, IPC Holdings and IPCRe are allocated office space in AICL’s building in Bermuda and our executive offices are located there. The address of the executive offices is American International Building, 29 Richmond Road, Pembroke HM 08, Bermuda and our telephone number is (441) 298-5100.
The historical consolidated financial data presented below as of and for each of the periods ended December 31, 2003, 2002, 2001, 2000, and 1999 were derived from our consolidated financial statements which are incorporated herein by reference to the Annual Report. The selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes thereto, and with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” also contained in the Annual Report and incorporated herein by reference.
(2) The loss and loss adjustment expense ratio is calculated by dividing the losses and loss expenses incurred by the net premiums earned. The expense ratio is calculated by dividing the sum of acquisition costs and general and administrative expenses by net premiums earned. The combined ratio is the sum of the loss and loss expense ratio and the expense ratio.
(4) Basic book value per common share is calculated as shareholders’ equity divided by the number of common shares outstanding on the balance sheet date.
Information required by this item is set forth on pages 27 through 47 of the Company's 1998 Annual Report to Shareholders, and is incorporated herein by reference.
Information required by this item is set forth on pages 50 through 81 (consolidated financial statements) and page 83 (independent auditors' report) of the Company's 1998 Annual Report to Shareholders, and is incorporated herein by reference. Reference is made to the index to consolidated financial statements included in Item 14.
Financial statement schedules are included on pages 25 through 33 herein. Reference is made to the index to financial statement schedules included on page 24 herein.
We lease our headquarters at 601 Locust Street, Des Moines, Iowa, and sublease properties in Baltimore, Maryland and Lincoln, Nebraska for legal, claims and processing needs. Such leases expire December 2020, May 2021 and January 2017 respectively. We believe our existing facilities are suitable and adequate for our present purposes.
We have prepared the following selected financial data as of and for (i) the years ended September 30, 2014, 2013 and 2012, (ii) the period from April 6, 2011 through September 30, 2011 which represents a stub period subsequent to the FGLH Acquisition, and (iii) the period of January 1, 2011 through April 5, 2011 and the year ended December 30, 2010 which represent the periods prior to the FGLH Acquisition. For financial statement purposes, FGLH has been identified as the predecessor and FGL as the successor. We have derived the predecessor financial and operating data from the consolidated financial statements of FGLH and the successor financial and operating data from the audited consolidated financial statements of FGL.
(b) On August 9, 2013, we distributed our ownership interests in the parent company of FSRCI to HGI. As a result, FSRCI’s results are not included in our results for any period after Fiscal 2013. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Results of Operations” for further details on FSRCI results.
(d) Retained earnings as of September 30, 2013 has been revised to reflect a $26.3 decrease related to a prior year revision. For additional details see Part IV, Item 15. Financial Statements - Note 2, Significant Accounting Policies and Practices.
All references to Fiscal 2014, 2013 and 2012 refer to fiscal periods ended September 30, 2014, 2013 and 2012, respectively.
On August 9, 2013, the Company distributed its ownership interests in its wholly-owned subsidiaries, HGI Real Estate, LLC, and FS Holdco II Ltd. ("FS Holdco") to HGI and HGI's subsidiaries. Beginning on August 9, 2013 with the distribution of FS Holdco, the Company’s financials reflected the 10.0% reinsurance agreement, whereby FGL cedes 10.0% of its in-force annuity block not already reinsured on a funds withheld basis to FSRCI, a subsidiary of FS Holdco.
Since FGLH's acquisition by HFG on April 6, 2011 (the "FGLH Acquisition"), we have made several significant changes to our business. We have ceded the majority of our traditional life insurance business, with the exception of the return of premium rider benefit to Wilton Re. In addition, we have transferred the risk of the lifetime guarantee on a large portion of the universal life insurance line of business to Wilton Re. We reduced the number of our product offerings to concentrate on capital efficient products, and to this end we have launched several new FIA products. Further, we began managing a significant portion of our investment portfolio internally; and we repositioned our investment portfolio by shortening the overall duration, all of which are described in more detail below. These changes have positively impacted our recent net income and profitability.
AFLAC owns land and buildings that comprise two primary campuses located in Columbus, Georgia. The first campus, located on approximately 54 acres of land, includes buildings that serve as our worldwide headquarters and house administrative support functions for our U.S. operations. The approximate square footage of the buildings on this campus is 600,000 square feet. The second campus, located on approximately 104 acres of land, includes a building with approximately 270,000 square feet that provides additional support functions for our U.S. operations. AFLAC also leases administrative office space in Albany, New York, and Omaha, Nebraska.
Pursuant to General Instruction G to Form 10-K, Item 7 is incorporated by reference from the Company's 2003 Annual Report to Shareholders, pages 24 to 42. This information is included herein as Exhibit 13, pages 13-3 to 13-33.
Pursuant to General Instruction G to Form 10-K, Item 8 is incorporated by reference from the Company's 2003 Annual Report to Shareholders, pages 43 to 66 and 67 to 68. This information is included herein as Exhibit 13, pages 13-34 to 13-82.
Argonaut Insurance's headquarters are located in a facility which consists of an office building on approximately two acres of land in Menlo Park, California. Great Central's headquarters are located in a facility in Peoria, Illinois. Argonaut Insurance and Great Central own the buildings in which their headquarters are located. In addition, the Company has entered into short term leases in conjunction with its operations at various locations throughout the country. The Company believes that its properties are adequate for its present needs.
The information set forth under the caption "Selected Financial Data" in the Annual Report to Shareholders of Argonaut Group for the fiscal year ended December 31, 1995, is incorporated herein by reference. See Exhibit Index.
The Report of Independent Public Accountants and consolidated financial statements and related notes of Argonaut Group, Inc. and subsidiaries listed on the index to financial statements set forth in Item 14(a)1 of this Form 10-K Report are incorporated herein by reference to the Annual Report to Shareholders of Argonaut Group for the fiscal year ended December 31, 1995.
The response to this Item is incorporated by reference to page 8 of our Annual Report to Stockholders for the year ended December 31, 2004, which is included as Exhibit (13) to this Form 10-K Report.
The response to this Item is incorporated by reference to pages 10 through 15 of our Annual Report to Stockholders for the year ended December 31, 2004, which is included as Exhibit (13) to this Form 10-K Report.
PROPERTIES. - ------- ----------- The Company does not own any real property. Lease costs of the Company's office facilities in Oak Brook, Illinois, and Bismarck, North Dakota, which total approximately $344,000 and $330,000 annually, are included as expenses under the pooling agreement. Expenses of office facilities owned and leased by Employers Mutual are borne by the parties to the pooling agreement, less the rent received from the space used and paid for by non-insurance subsidiaries and outside tenants. See "Property and Casualty Insurance - Pooling Agreement" under Item 1 of this Form 10-K.
SELECTED FINANCIAL DATA. - ------- ------------------------ The "Selected Consolidated Financial Data" section from the Company's Annual Report to Stockholders for the year ended December 31, 2000, which is included as Exhibit 13(a) to this Form 10-K, is incorporated herein by reference.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. - ------- -------------------------------------------- The consolidated financial statements from the Company's Annual Report to Stockholders for the year ended December 31, 2000, which is included as Exhibit 13(c) to this Form 10-K, are incorporated herein by reference.
Financial Highlights on the inside front cover of the Company's 1997 Annual Report to Shareholders is incorporated herein by reference.
Management's Discussion and Analysis of Financial Condition and Results of Operations on pages 24 through 30 of the 1997 Annual Report to Stockholders is incorporated herein by reference. See Exhibit 13 hereto.
The following consolidated financial statements of Executive Risk Inc. and its subsidiaries, included on pages 35 through 52 of the Company's 1997 Annual Report to Stockholders (see Exhibit 13), are incorporated herein by reference:
-- Consolidated Statements of Cash Flows for the years ended December 31, 1997, 1996 and 1995.
PREMIUM RESERVE Life (incl. Annuity Fund) Frs. 22,296,900. — Fire, Marine, Accident and Burglary „ 5,265,412.23
Reserve for outstanding losses from 1905 . . . . . . . . . 5,646,061 — , Net premiums 20,575,577 47 30,868,602 47
Fire, Marine, Accident and Burglary DepS. j Retrocession Premiums, less cancellations 8,518,336 56
Life DepL. Retrocession Premiums . . ; 2,059,806 64 Retrocession on annuities 692,710 80 Commissions and expenses, less retrocession . . . . . ... , 611,292 54 Surrenders, less retrocession . . . . . . . . . . ... . 245,204 66 Losses paid, less retrocession . . . . . . . . . . . . . 1,623,055 75 Annuities paid, less retroce.'^sion . . . . ..... . . . 111,810 98 Premium Reserve . . . . . 20,433,974 — Annuity Fund . . . ... . ; . . . . 1,862,926 — Reserve for outstanding losses .... . . . . . .... 296,909 — 27,937,690 37 Expenses of management . . . . . i'' . . . . . . " . . . . . 336,696 85 Taxes 36,682 90 Amortisation on Securities . . . ... . ... . . . . . . . 20,908 71 Net profit . . . . . . . 229,051 81
Due to other Companies . . . . . ... . . . •. 3,728,217 63 Sundry creditors 16,716 54 Reserves, Fire, Marine, Accident and Burglary Depk-: for unexpired risks Fr. 5,265,412.23 for outstanding losses , 4,796,388.03 10,061,800 26
Reserves, Life Dept; Premium Reserve . . . . . .... . . . Fr. 20,433,974. — Annuity Fund , 1,862,926. -
Deposits bearing interest . , 1,046,325.03 Cash in Bank : . . . „ 886,750.86 Cash in hand 33,231,924 72 Due by other Companies . . . . 2,971,101 60 Premium Reserve, Life Dep^-, in hand of ceding Offices . . ... •. •.. 3,753,224 92 Accrued interest - 333,344 —
The Unitrin Life and Health Insurance segment leases facilities with aggregate square footage of approximately 363,000 at 162 locations in 24 states. The latest expiration date of the existing leases is December 31, 2007.
The Unitrin Direct Sales segment leases facilities with an aggregate square footage of approximately 87,000 at 5 locations in 3 states. The latest expiration date of the existing leases is in June 2005.
Fireside Thrift occupies 38 leased facilities with an aggregate square footage of approximately 145,000 in 6 states (including consumer finance branches and main office buildings). The latest expiration date of the existing leases is July 22, 2008.
The MD&A is incorporated herein by reference and filed as Exhibit 13.2 hereto.
The Financial Statements (including their related notes and the respective reports of Deloitte & Touche LLP and KPMG LLP) are incorporated herein by reference and filed as Exhibit 13.1 hereto, (with the exception of the reports of KPMG LLP, which are filed as Exhibit 23.3 hereto).
The Company leases approximately 23,000 square feet in an office building located in Hatboro, Pennsylvania. The office building also houses Penn Independent and certain of its subsidiaries. The Company leases the space from Mr. Irvin Saltzman, Chairman of the Board of Directors of the Company, pursuant to a lease agreement renewed June 30, 2000 that expires on June 30, 2005, and provides for an annual rental payment of $357,247. This amount is considered by the Company to be at fair market value.
The "Management's Discussion and Analysis of Results of Operations and Financial Condition" section on pages 13 to 21 of the Company's Annual Report to stockholders for the year ended December 31, 2001, which is included as Exhibit (13) to this Form 10-K Report, is incorporated herein by reference.
The consolidated financial statements on pages 24 to 42 of the Company's Annual Report to stockholders for the year ended December 31, 2001, which is included as Exhibit (13) to this Form 10-K Report, are incorporated herein by reference.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Pages 26 through 41 of the 1998 Annual Report to Shareholders are incorporated herein by reference.
Farm Family Casualty currently leases space for its home office in Glenmont, New York from Farm Family Life. The lease agreement provides for Farm Family Casualty to pay Farm Family Life an annual rental of approximately $781,000. In addition, Farm Family Holdings incurred annual rental expense of approximately $37,000 pursuant to the Expense Sharing Agreement. See "Related Party Transactions"
SELECTED FINANCIAL DATA - -------------------------------- The following table sets forth certain consolidated financial data of the Company and its subsidiaries prior to and after the reorganization pursuant to the Plan that took place during 1996. The consolidated statement of income data set forth below for the years ended December 31, 1998, 1997, 1996, 1995 and 1994 and the consolidated balance sheet data as of December 31, 1998, 1997, 1996, 1995 and 1994 are derived from the consolidated financial statements of the Company which have been audited by PricewaterhouseCoopers, independent auditors. This data should be read in conjunction with
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL - ----------------------------------------------------------- CONDITION AND RESULTS OF OPERATIONS -----------------------------------
The "Management's Discussion and Analysis of Financial Condition and Results of Operations" on pages 14 - 23 of the Company's 1998 Annual Report is incorporated herein by reference.
The consolidated financial statements of the Company, including the accompanying notes to the consolidated financial statements and Report of Independent Accountants on pages 24 - 44 of the Company's 1998 Annual Report are incorporated herein by reference.
Management’s Discussion and Analysis of Financial Condition and Results of Operations on pages 28 through 44 of the Annual Report is incorporated herein by reference.
The Company’s Consolidated Financial Statements and Notes to Consolidated Financial Statements on pages 45 through 67 and the Report of Independent Accountants on page 68 of the Annual Report are incorporated herein by reference, as is the unaudited “Income Statement Data” and “Per Share Data” under the caption “Quarterly Financial Information” on page 69 of the Annual Report.
Neither Tenere nor any of its subsidiaries owned any real estate at December 31, 1997. ISI, a wholly-owned subsidiary of Intermed, leases the Company's home office for approximately $90,000 per year to June 30, 2000 and approximately $95,000 per year thereafter through June 30, 2002. The lease commenced on July 1, 1995 for a period of seven years with an option to renew for an additional three years. ISI also leases office space in Austin, Texas at a current rate of $28,000 which will increase to $29,000 on May 7, 1998.
Management's Discussion and Analysis of Financial Condition and Results of Operations is included on Pages 4 through 7 of Tenere's 1997 Annual Report to Stockholders and is incorporated by reference herein.
The following Consolidated Financial Statements of Tenere are included on the following pages of Tenere's 1997 Annual Report to Stockholders and are incorporated by reference herein.
Neither Tenere nor any of its subsidiaries owned any real estate at December 31, 1996. ISI, a wholly-owned subsidiary of Intermed, leases the Company's home office for approximately $78,000 per year to June 30, 2000 and approximately $89,000 per year thereafter through June 30, 2002. The lease commenced on July 1, 1995 for a period of seven years with an option to renew for an additional three years. ISI also leases office space in Austin, Texas for $28,000 the first year, $28,000 the second year, and $29,000 the third year. The lease commenced on May 7, 1996 for a period of three years.
The following Consolidated Financial Statements of the Tenere Group, Inc. are included on the following pages of Tenere's 1996 Annual Report to Stockholders and are incorporated by reference herein.
Consolidated Statements of Operations Years ended December 31, 1996, 1995 and 1994 9
Consolidated Statements of Stockholders'/Policyholders' Equity Years ended December 31, 1996, 1995 and 1994 10
Consolidated Statements of Cash Flows Years ended December 31, 1996, 1995 and 1994 11
- ---------------- (1) The increase in loss and loss adjustment expenses in the third quarter of 1996 is due to the large number of claims-paid policyholders who converted to claims-made in the third quarter.
Net income for 1995 was $3.4 million, an increase of $1.1 million or 51% from 1994.
Net investment income was $2.8 million for 1995, an increase of $2.3 million or 403% over the comparable 1994 period. Approximately $1.5 million of the increase was due to the additional investment income earned on invested assets held to back the fixed interest divisions that were introduced in 1995. The balance of the increase in investment income is attributable to an increase in the investment income on surplus.
In 1995, the service agreement between DSI and Golden American was amended to provide for a management fee from DSI to Golden American for certain managerial and supervisory services provided by Golden American. This fee, calculated as a percentage of average assets in the variable separate accounts, was $1.0 million for 1995.
Policy benefits were $3.2 million for 1995, an increase of $3.1 million from 1994. In 1995, benefit expenses increased $1.3 million as a result of interest credited to policyholders related to the fixed interest divisions introduced in 1995. Additionally, death benefit costs net of reinsurance increased by $.3 million in 1995 as compared to 1994. Additionally, 1994 policy benefits reflected a $1.5 million decrease in mortality reserves.
Commissions and overrides were $7.7 million in 1995, a decrease of $9.1 million or 54% from 1994. The decrease in commissions resulted from the decrease in new business premium receipts which went from $310.7 million in 1994 to $130.5 million in 1995, a decrease of 55%.
The financial statements of the Registrant are set forth in Part IV hereof and are incorporated herein by reference.
The Company conducts its Massachusetts operations from approximately 300,000 square feet of space in several buildings, which it owns in Webster, Massachusetts, which is located approximately 50 miles southwest of Boston. The Company's principal administrative offices in Webster consist of recently rehabilitated and newly constructed buildings. Its data processing and operational departments are housed in modern office buildings on a separate nine acre site. The Company has a 20,000 square foot child care center located on a separate seven acre site in Webster, Massachusetts. The Company operated child care center can provide care for up to 200 children of employees. During 2001, Commerce purchased a 160,000 square foot building. Commerce expects to expend approximately $13 million renovating the building primarily in 2002. Commerce West currently leases approximately 12,000 square feet of office space in Pleasanton, California. Commerce West
anticipates it will relocate within the next three to four years. Land in Stockton, California was purchased on June 26, 2001 at an approximate cost of $1,125,000 as part of this relocation plan. American Commerce conducts its operations from approximately 40,000 square feet of space in a building located on a two acre site in Columbus, Ohio. American Commerce also leases property at three of its four district claims offices. The Company considers that its properties are in good condition, are well maintained, and are generally suitable to carry on the Company's business. For additional information concerning property, see NOTE D to the Company's 2001 Consolidated Financial Statements, which is incorporated herein by reference from page 52 of the Company's 2001 Annual Report.
The five-year financial information under the caption "Selected Consolidated Financial Data" on page 69 of the Company's 2001 Annual Report is incorporated herein by reference.
The Company's Consolidated Financial Statements for the years ended December 31, 2001, 2000 and 1999 and the report of its independent auditors on pages 34 through 68 of the Company's 2001 Annual Report are incorporated herein by reference.
At December 31, 1999, the Company owned buildings in Oklahoma City, Oklahoma and Victoria, Texas from which the Agencies in those cities operate. In addition, the Company owned a building in Charlottesville, Virginia.
Information as to management's analysis of financial condition and results of operations is incorporated herein by reference to the materials under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 1999 Annual Report to Shareholders.
CFC-I also owns the Home Office building located on 75 acres of land in Fairfield, Ohio. This building contains approximately 380,000 square feet. The John J. and Thomas R. Schiff & Company, an affiliated company, occupies approximately 5,350 square feet, and the balance of the building is occupied by CFC and its subsidiaries. The property is carried in the financial statements at $11,681,657 as of December 31, 1996.
CFC-I also owns the Fairfield Executive Center which is located on the northwest corner of the home office property in Fairfield, Ohio. This is a four-story office building containing approximately 103,000 rentable square feet. CFC and its subsidiaries occupy approximately 72% of the building, unaffiliated tenants occupy approximately 15% of the building, and the balance is available for Company expansion. The property is carried in the financial statements at $10,585,051 as of December 31, 1996.
The CLIC owns a four-story office building in the Tri-County area of Cincinnati containing approximately 127,000 square feet. At the present time, 100% of the building is currently being leased by an unaffiliated tenant. This property is carried in the financial statements at $4,286,722 as of December 31, 1996.
Independent Auditors' Report Consolidated Balance Sheets--December 31, 1996 and Consolidated Statements of Income--Years ended December 31, 1996, 1995, and 1994 Consolidated Statements of Shareholders' Equity--Years ended December 31, 1996, 1995, and Consolidated Statements of Cash Flows--Years ended December 31, 1996, 1995, and 1994.
Corporate 3 is a 25,400 square foot multi-story building. Within that space, approximately 10,995 square feet is warehouse used for record retention and storage. A tenant leases 1,105 square feet, while the remaining area houses a training center and vacant office space.
Refer to the Management’s Discussion and Analysis of Financial Condition and Results of Operations on pages 23 through 40 of the Annual Report to Shareholders for the year ended December 31, 2003 attached as Exhibit 13. Certain accounting policies are viewed by Management to be “critical accounting policies.” These policies relate to unpaid loss and settlement expenses, investment valuation, recoverability of reinsurance balances and deferred policy acquisition costs. A detailed discussion of these critical accounting policies can be found on pages 24 through 25 of the Annual Report to Shareholders for the year ended December 31, 2003 attached as Exhibit 13.
Throughout this report, we present our operations in the way we believe will be most meaningful, useful and transparent to anyone using this financial information to evaluate our performance. In addition to the GAAP presentation of net income and certain statutory reporting information, we show certain non-GAAP financial measures that are valuable in managing our business, including gross revenues, gross written premiums, net written premiums and combined ratios. A detailed discussion of these measures can be found on page 24 of the Annual Report to Shareholders for the year ended December 31, 2003 attached as Exhibit 13.
The Company's executive, healthcare and film distribution offices are located at 111 Great Neck Road, Suite 604, Great Neck, New York 11021. This property consists of 2,026 square feet of offices and is subleased from Entertainment Financing Inc.("EFI"), an entity affiliated with the Chief Executive Officer of the Company, currently at approximately $6,000 per month. EFI's lease, and the Company's sublease on this space expires on May 31, 2002. EFI has agreed that for the term of the sub-lease the rent paid to it will be substantially the same rent that it pays under its master lease to the landlord.
Operating costs increased to $270,000 in 1999 from $154,000 in 1998, a 75% increase. The Healthcare operating costs increased to $213,000 in 1999 from $136,000 in 1998, a 57% increase. As a percentage of revenue, operating costs for the Healthcare segment increased to 36% in 1999 from 10% in 1998. This is the result of 1) the termination of the joint venture with Containment; and 2) the operating costs of PCI, a portion of which is not directly correlated to the volume of revenue.
Selling, general and administrative expenses increased to $1,984,000 in 1999 from $1,709,000 in 1998, a 16% increase. Included in selling, general and administrative expenses are uncollectible receivables of $643,000, depreciation of $28,000 and other expenses which did not require use of the Company's cash in 1999 totaling approximately $500,000.
The Company believes that it will need additional financing to meet its operating cash requirements for the current level of operations during the next twelve months, and will require additional capital in order to complete its planned expansion. The Company has developed a plan to reduce its liabilities and improve cash flow through expanding operations and raising additional funds either through issuance of debt or equity. From January 1, 2000 through March 22, 2000, the Company raised $178,000 from the sale of convertible debentures and through offerings under private placements. The Company anticipates that it will be able to raise the necessary funds it may require for the remainder of 2000 through public or private sales of securities. If the Company is unable to fund its cash flow needs the Company may have to reduce or stop planned expansion, or possibly scale back operations.
New contracts which clearly define PCI's services have been developed. In addition, these contracts create payment terms which should expedite the collection process of PCI revenue from its new business.
This also required new staffing including the recruitment of experienced personnel from the insurance and managed care industry. Infrastructure initiatives, especially those associated with information systems capabilities, are continuing to be addressed through investments in new hardware, software, staffing and technical support. The Company incurred approximately $98,000 and $88,000 on these initiatives in 1999 and 1998, respectively.
The financial statements and notes appear on pages 21-47 in the Annual Report to the Stockholders for the year ended December 31, 2005 and are incorporated herein by reference. See Part IV, Item 15.
The Registrant's home office and educational facilities are owned by the Registrant and located in Atlanta, Georgia. The Registrant also owns its Canadian home office facility located in Kitchener, Ontario and an additional office location in Stockport, England. As of December 31, 2003, the Registrant leased approximately 569 office locations under leases with remaining terms ranging from a few months to ten years. The remainder of its office locations are occupied under various short-term rental arrangements.
The information required by this Item is included in the Registrant's Annual Report to Shareholders for the year ended December 31, 2003, under the caption "Selected Financial Data" and is incorporated herein by reference.
The information required by this Item is included in the Registrant's Annual Report to Shareholders for the year ended December 31, 2003, under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" and is incorporated herein by reference.
The information required by this Item is included in the Registrant's Annual Report to Shareholders for the year ended December 31, 2003, under the captions "Consolidated Statements of Income", "Consolidated Balance Sheets", "Consolidated Statements of Shareholders' Investment", "Consolidated Statements of Cash Flows", "Notes to Consolidated Financial Statements", "Quarterly Financial Data (unaudited), Dividend Information and Common Stock Quotations", and "Report of Ernst & Young LLP, Independent Auditors", and is incorporated herein by reference.
The Company leases office space in Bermuda where the Company's principal executive offices are located. Additionally, the Company leases office space in various locations, including Paris, Greenwich (Connecticut), Toronto, Zurich, Oslo, Tokyo, Seoul, Singapore and Hong Kong.
The information with respect to selected consolidated financial data regarding the Company is contained under the caption "Selected Consolidated Financial Data" in the 2001 Annual Report and is incorporated by reference to page 39 of Exhibit 13.1 filed with this Form 10-K.
The Company's consolidated financial statements are contained in the 2001 Annual Report and are incorporated by reference to pages 58 through 87 of Exhibit 13.1 filed with this Form 10-K. Reference is made to Item 14(a) of this report for the Schedules to the Company's consolidated financial statements.
The remaining business activities of MMC and its subsidiaries are conducted principally in leased office space in cities throughout the world. In general, no difficulty is anticipated in negotiating renewals as leases expire or in finding other satisfactory space if the premises become unavailable. From time to time,
MMC may have unused space and may seek to sublet such space to third parties, depending upon the demands for office space in the locations involved.
Information on pages 25 through 32 of the 2000 Annual Report is incorporated herein by reference.
The Consolidated Financial Statements and the Independent Auditors' Report thereto on pages 33 through 53 of the 2000 Annual Report and Selected Quarterly Financial Data (Unaudited) on page 54 of the 2000 Annual Report are incorporated herein by reference. Supplemental Notes to Consolidated Financial Statements are included on page 21 hereof.
Board of Directors: Ch. Simon, Chairman. E. Welti, Depuly-Ghairman. W. C. Escher Rob. Hegner C. Abegg-Stookar Hans Sulzer Felix Calender
AVe have pleasure in submitting the sixty-fifth Annual Report and Accounts for the year 1928.
The foregoing is also the case in Marine Insurance which continues to give un­ favourable results.
• responsibility fur the present serious situation, which conditions particularly affect the reinsurer.
The results of Burglary and Larceny business were generally good and the Miscellaneous branches have also given satisfactory profits with the exception of the Credit Department which again shows up unfavourably; motor car instalment business is chiefly responsible for the losses.
Our Life business has continued to develop in a very gratifying manner, both the production of new business as well as the rate of mortality have given full satisfaction. First year commissions have as usual been entirely written off.
PROFIT AND LOSS ACCOUNT for the year ending 31'* December, 1928.
Life DepL. Premiums for Retrocession Commission and Expenses, less Retrocession Surrenders, less Retrocession Losses paid, less Retrocession . . Annuities paid, less Retrocession Premium Reserve, less Retrocession Annuity Fund, less Retrocession Reserve for unsettled Claims, less Retrocession 139,610,981 59 Expenses of Management Taxes Net Profit
Reserve Fund i 5,000,000 — Special Reserve Fund . . . . 12,000,000
Life and other funds retained from other Companies . 91,435,834 38
Premium Reserve . Frs. 72,468,959.— Reserve for unsettled Claims , 47,378,727. -
Life DepiPremium Reserve Frs. 91,215,305. — Annuity Fund , 4,520,059. - —: Staff Life Insurance and Pension Fund . .... . . 750,000 — Dividend Frs. 77.35 per shave 2,320,500 — Directors, Management and Staff 987,500 —
Real Estate Frs. 2,500,000.Mortgages , 32,909,022.70 Government rhid other Securities ........ . . 155,227,262.65 Life and other funds deposited with ceding Companies . , 162,356,104.59 Bank Balances . . . , 6,516,545.63 Cash in hand . . ; . , 46,092.50 359,555,028 07
Due by other Companies and Sundry Debtors . . . 51,609,991 04 Accrued Interest 1.703.293 26 rr • _i f» tu X
Board of Directors: Ch. Simon, Chairman. E. Welti, Deputy-Chairman. W. C. Escher Rob. Hegner C. Ahegg Hans Siilzer Felix Calender
The business of the past year has on the whole shewn favourable results. In some European countries, however, conditions are in many respects unsatisfactory and it is doubtless owing to the generally disturbed economic and political conditions that in many territories there is no apparent desire for concerted action, nor in fact are there any serious efforts made to return to sound business principles. While such influences are naturally felt in the business of this Company, which is of an essentially international character, our world wide connections, bringing as they do a well spread business, ensure for us the necessary compensation, and this factor coupled with our strgng financial position is of especial value in such difficult times. We have remained faithful to our old and well proven principles, even in the trying period of the past years, and this in conjunction with a sound financial policy has stood us in good stead.
Fire business has on the whole been satisfactory. Certain countries have not yielded favourable results, hut Germany is the only country which has shewn an abnormally heavy loss ratio. Fire Insurance in both Germany and Austria is suffering from conditions which are attendant upon the economic transition and reconstruction that is taking place in these countries, and which are aggravated to a great extent by unsound competition.
Our Hail business is small and, for the first time since we started to write this business, that is to say since 1915, the account has closed with a small loss.
Our Life Department continues its very satisfactory development and the new pro­ duction has more than counterbalanced the influence of the recent depreciation of certain currencies. The results are gratifying, the Mortality rate being favourable. In accordance with our usual custom acquisition costs have been entirely written off.
Interest, after deduction of interest accruing to the Life Department, amounts to Frs. 5,637,983.82.
PROFIT AND LOSS ACCOUNT for the year ending 31®» Oecember, 1925.
Life DepL. Premium Reserve from 1924 Annuity Fund from 1924 . . . Reserve for unsettled Claims from 1924 . . . . . Premiums, less cancellations . . . Consideration for Annuities . . . . . . . . . Interest ........ Interest, after deduction of interest due to Life Dep*Profit on Investments
Premiums for Retrocession, less cancellations ....... Commission, less Retrocession Claims paid Frs. 120,472,519.15 less Retrocession , 57,014,281.34 Premium Reserve, less Retrocession Reserve for unsettled Claims, less Retrocession ... ,' . . . Reserve for extraordinary Losses
Staff Life Insurance and Pension Fund . ... . . 250,000 — Dividend Frs. 75.— per share . . . . . . . . . 2,250,000 — Directors and Management . ...... . . ; 687,500 — Carried forward . ' . 154,705 51
PROPERTIES. - ------- ----------- The Company does not own any real property. Lease costs of the Company's two office facilities in West Des Moines, Iowa totaled approximately $12,000 and $28,500 in 1998. These leases expired on February 28, 1998 and November 30, 1998, at which time the operations were moved into facilities owned by Employers Mutual.
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. - ------- -------------------------------------------- The consolidated financial statements from the Company's Annual Report to Stockholders for the year ended December 31, 1998, which is included as Exhibit 13(c) to this Form 10-K, are incorporated herein by reference.
The executive offices of Transamerica Corporation are located in the Transamerica Pyramid in San Francisco, California, a 48-story office building. Approximately 15% of the 460,000 square feet of rentable space is occupied by Transamerica and its subsidiaries.
The Transamerica Center in Los Angeles, California, consists of a 32-story building, an 11-story building and a 10-story building. Transamerica Center is the home office of Transamerica Financial Services, certain divisions of Transamerica Life Companies and certain other subsidiaries of Transamerica. Approximately 66% of the 1,210,000 square feet of rentable space is occupied by Transamerica subsidiaries.
The following items for each of the five years in the period ended December 31, 1996, included in "Selected Eleven-Year Financial Data" on pages 72 and 73 of the Transamerica Corporation 1996 Annual Report, are incorporated herein by reference:
Revenues Income from continuing operations Earnings per share of common stock--Income from continuing operations Total assets Notes and loans payable: Long-term debt Dividends declared per share of common stock
The following consolidated financial statements and supplementary financial information of the Corporation and its subsidiaries in the Transamerica Corporation 1996 Annual Report are incorporated herein by reference:
Consolidated Statement of Cash Flows--Years ended December 31, 1996, 1995 and 1994--page 51.
The Company's operations are conducted principally within the United States, and the Company believes that its principal facilities, all of which are owned unless otherwise noted, are maintained in good operating condition and are adequate for the present needs of its operations.
The principal facilities by reportable industry segment and other operations are as follows:
Republic Indemnity leases office space in Encino (72,000 square feet), San Francisco (43,000 square feet), San Diego (11,000 square feet) and Sacramento (9,000 square feet), Califor- nia, and Phoenix, Arizona (2,000 square feet) under agreements expiring in May 1996, March 2001, December 1998, July 1996 and September 1994, respectively.
Power Tech owns 50 acres in Waco, Texas on which it has a 200,000 square-foot battery manufacturing facility and a 15,000 square-foot office facility.
At March 15, 1994, DI's contract oil and gas well drilling fleet consisted of 60 rigs (21 active) based in Texas, Louisiana, Oklahoma, Arkansas, Ohio, western Pennsylvania, New York, Michi- gan, Argentina and Guatemala. At March 15, 1994, the well workover service rig fleet totaled 24 rigs (18 active) based in Montana, Utah, North Dakota and Colorado. In addition, at March 15, 1994, DI owned 3 and operated 13 commercial drilling rigs under a cash flow sharing agreement, 6 of which were active. Also, at March 15, 1994, 2 rigs were held for resale.
"Selected Consolidated Financial Data" on page 25 of the Company's 1993 Annual Report to Shareholders is incorporated herein by reference.
Under leases expiring in February 2001, the Company leases approximately 144,000 square feet of office space at Interchange North Building, 300 South Highway 169, Minneapolis, Minnesota. See Note 6 of the Notes to Consolidated Financial Statements included in the annual shareholder report for the year ended December 31, 1996 as incorporated herein by reference for additional information regarding the lease commitments. Based on the Company's business plan, management believes the Company's current facilities will be adequate through 1997.
Management's Discussion and Analysis of Financial Condition and Results of Operations on pages 6 through 18 of the annual shareholder report for the year ended December 31, 1996 is incorporated herein by reference.
The consolidated financial statements included on pages 19 through 44 of the annual shareholder report for the year ended December 31, 1996 are incorporated herein by reference.
Allstate's field business operations are conducted substantially from 17 offices located principally in metropolitan areas throughout the United States and Canada. Allstate also has approximately 260 claim service offices, sales facilities at approximately 11,300 locations, and approximately 650 automobile damage inspection locations, most of which are located at claim service offices and sales facilities.
Management's Discussion and Analysis of Financial - - ------ ------------------------------------------------- Condition and Results of Operations -----------------------------------
Incorporated by reference to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" on pages A-4 to A-24 of the 1998 Proxy Statement.
The consolidated financial statements of the Company, including the notes to such statements, and other information on pages A-25 to A-56 of the 1998 Proxy Statement and the information under "Quarterly Results" on page A-56 of the 1998 Proxy Statement are incorporated herein by reference.
Incorporated by reference from the section entitled Management s Discussion and Analysis of Financial Condition and Results of Operations in the Company s Annual Report to Shareholders for the year ended December 31, 1995.
The "Management's Discussion and Analysis" on pages 18 through 44 of our 2000 Annual Report to Shareholders is incorporated herein by reference.
We own 93 buildings located throughout the United States. Nearly two-thirds of our owned buildings are for our Service Centers, the majority of which are combined with a claims office. Our owned facilities, which contain approximately 4.9 million square feet of space, are generally not segregated by industry segment. We own significant locations in Mayfield Village, Ohio and surrounding suburbs (including our corporate headquarters), Colorado Springs, Colorado; St. Petersburg, Florida; Tampa, Florida; and Tempe, Arizona.
(1) Data per common share have been adjusted to reflect the 3 for 2 stock split. Basic and Diluted income per share and weighted averages shares have been calculated in accordance with FAS 128.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Pages 18 through 23 of the 1997 Annual Report to Shareholders.
The information set forth under the caption "Selected Financial Data" in the Annual Report to Shareholders of Argonaut Group for the fiscal year ended December 31, 2000, is incorporated herein by reference. See Exhibit Index.
Management's Discussion and Analysis of Financial Condition and Results of Operations The information set forth under the caption "Management's Discussion and Analysis of Results of Operations and Financial Condition" in the Annual Report to Shareholders of Argonaut Group for the fiscal year ended December 31, 2000, is incorporated herein by reference. See Exhibit Index.