felanders/preprocessed huggingface dataset:
GAPR rents office space in Puerto Rico totaling approximately 70,000 square feet under leases expiring primarily in 2000 through 2002.
Many of the systems being replaced were planned replacements, which were accelerated due to Year 2000 considerations. A significant portion of AAG's Year 2000 Project is being completed using internal staff. Therefore, cost estimates for the Year 2000 Project do not represent solely incremental costs. Since the beginning of 1997, AAG has incurred an estimated $13 million in Year 2000 costs, including capitalized costs of $10 million for new systems; the Company expensed $3.5 million in Year 2000 costs in 1998. AAG estimates it will spend an additional $9 million in connection with the Year 2000 Project in 1999, of which $5 million is expected to be expensed. Projected Year 2000 costs and completion dates are based on management's best estimates. There can be no assurance that these estimates will be achieved.
On its deferred annuities (annuities in the accumulation phase), AAG generally credits interest to policyholders' accounts at their current stated "surrender" interest rates. Furthermore, for "two-tier" deferred annuities (annuities under which a higher interest amount can be earned if a policy is annuitized rather than surrendered), AAG accrues an additional liability to provide for expected deaths and annuitizations. Changes in crediting rates, actual surrender and annuitization experience or modifications in actuarial assumptions can affect this accrual.
AAG and certain of its subsidiaries provide certain benefits to eligible retirees. The projected future cost of providing these benefits is expensed over the period the employees earn such benefits.
On September 30, 1998, AAG sold its Funeral Services Division for approximately $165 million in cash realizing a $14.8 million after-tax gain. This division included American Memorial Life Insurance Company (acquired in 1995) and Arkansas National Life Insurance Company (acquired in 1998) and had assets of approximately $1 billion as of the sale date.
The following tables (in millions) show AAG's assets, revenues and operating profit (loss) by significant business segment. Operating profit (loss) represents total revenues (excluding realized gains) less interest and operating expenses.
Provision for relocation expenses - (4.0) - Total pretax income per income statement $143.5 $104.2 $ 78.5
A progression of AAG's present value of future profits acquired ("PVFP") is as follows (in millions):
At December 31, 1998, there were 3.0 million shares of AAG Common Stock reserved for issuance under AAG's stock option plans. Under the plans, the exercise price of each option equals the market price of AAG Common Stock at the date of grant. Options generally become exercisable at the rate of 20% per year commencing one year after grant. All options expire ten years after the date of grant.
Deferred tax liabilities: Unamortized insurance acquisition costs (68.8) (70.6) Policyholder liabilities (17.2) (8.8) Capitalized assets (8.6) -
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The information required by this Item is included in the Registrant’s Annual Report to Shareholders for the year ended December 31, 2008 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and is incorporated herein by reference.
In addition to net income, the Company reports net operating income, which excludes realized investment gains and losses and results of discontinued operations. Net operating income is commonly used in the insurance industry as a measure of on-going earnings performance.
Net investment income includes the gross investment income earned on investments supporting fixed annuities and certain life insurance products as well as the yield on the Company's general account invested assets which are not allocated to product segments. Net investment income grew from $1.36 billion and $1.41 billion in 1996 and 1997, respectively, to $1.48 billion in 1998 primarily due to increased invested assets to support growth in fixed annuity and life insurance policy reserves. Fixed annuity policy reserves, which include the fixed option of the Company's variable annuity products, increased $682.4 million in 1997 and $704.7 million in 1998 and were $14.90 billion as of year end 1998. The growth in life insurance reserves was led by corporate-owned life insurance products, where fixed reserves increased $201.1 million in 1997 and $596.7 million in 1998. The increase in net investment income due to growth in invested assets was partially offset by declining investment yields in 1998 and 1997 due to lower market interest rates.
Systems supporting the Company's infrastructure such as telecommunications, voice and networks will be compliant by March 1999. The Company's assessment of Year 2000 issues has also included non-information technology systems with embedded computer chips. The Company's building systems such as fire, security, and elevators and escalators supporting facilities in Columbus, Ohio have been tested and are Year 2000 compliant.
(3) The total accounts receivable balances reflected on these tables differ from the net accounts receivable balances as stated on the
We conduct business in a heavily regulated industry. Accordingly, we maintain a comprehensive, company-wide compliance program to address healthcare regulatory and other compliance requirements since if a determination were ever made that we were in material violation of any of the federal or state statutes regulating our healthcare operations, our operations and financial results could be materially adversely affected. This compliance program includes, among other things, initial and periodic ethics and compliance training, a toll-free reporting hotline for employees, annual fraud and abuse audits and annual coding audits. The organizational structure of our compliance program includes oversight by our board of directors and a high-level corporate management compliance committee. Our Senior Vice President of Compliance and Ethics reports jointly to our Chairman and Chief Executive Officer and to our board of directors, serves as Chief Compliance Officer and is charged with direct responsibility for the day-to-day management of our compliance program. During fiscal 2006, we established six regional compliance officers in our markets and staffed the new positions with professionals 100% dedicated to compliance duties. The financial resources necessary for program oversight, enforcement and periodic improvements to our program continue to grow, especially when we add new features to our program or engage external resources to assist with these highly complex matters.
Revenues. Revenues increased by $486.1 million during fiscal 2005 compared fiscal 2004 due to the acquisition of the Massachusetts hospitals, same hospital volume increases and improved reimbursement for services provided. Hospital adjusted discharges increased by 21.7% during fiscal 2005. Emergency room visits increased by 15.8%, and outpatient surgery volumes increased by 21.7% during fiscal 2005. Same hospital revenues increased by $245.9 million or 13.8% as a result of increases in same hospital adjusted discharges, emergency room visits and outpatient surgeries of 6.3%, 4.7% and 5.5%, respectively. In addition, same hospital net revenue per adjusted discharge increased 6.6% year over year. Our service expansion initiatives and managed care contracting strategies played significant roles in inpatient and outpatient volume improvements and were responsive to increased demand for such healthcare services created by the high population growth in most of the markets we serve.
Net earned premiums decreased $3.9 million, or 16.1%, during 2003 and $1.5 million, or 5.7%, during 2002 primarily due to the reasons discussed previously.
Ceded premiums at Georgia Casualty increased $2.2 million, or 13.9%, in 2002. The increase in ceded premiums was primarily due to an overall increase in rates charged to reinsure the business as well as the growth experienced by the company. Also, the 40% quota share reinsurance agreement that Georgia Casualty incepted in 2001 for premium growth and surplus protection was reduced to a 30% quota share on January 1, 2002. From this initiative, premiums ceded under the quota share agreement decreased $3.4 million during 2002 resulting in a lower effective percent of premium ceded to premium written.
In January 2004, the FASB issued FASB Staff Position No. 106-1, “Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003”, which addresses the accounting and disclosure implications that are expected to arise as a result of the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Adoption of this statement is not anticipated to have an impact on the Company’s financial condition or results of operations.
In December 2003, the FASB issued a revised version of FIN 46 (“FIN 46R”), which incorporated a number of modifications and changes made to FIN 46. FIN 46R replaces the previously issued FIN 46 and, subject to certain special provisions, is effective no later than the end of the first reporting period that ends after December 15, 2003 for entities considered to be special-purpose entities. The Company adopted FIN 46R in the fourth quarter of 2003. The adoption of FIN 46R did not result in the consolidation of any material VIEs but resulted in the deconsolidation of VIEs that issued Mandatorily Redeemable Preferred Securities of Subsidiary Trusts (“trust preferred securities”). The Company is not the primary beneficiary of the VIEs, which issued the trust preferred securities. The Company does not own any of the trust preferred securities, which were issued to unrelated third parties. These trust preferred securities are considered the principal variable interests issued by the VIEs. As a result, the VIEs, which the Company previously consolidated, are no longer consolidated. The sole assets of the VIEs are junior subordinated debentures issued by the Company with payment terms identical to the trust preferred securities. Previously, the trust preferred securities were reported as debt on the Company’s consolidated balance sheets. At December 31, 2003 and 2002, the impact of deconsolidation was to increase debt by $1,238 and $542, respectively. See Note 6 for disclosure of information related to these VIEs.
At December 31, 2003, the Company had regular federal net operating loss carryforwards of approximately $17,225 expiring generally between 2006 and 2009. As of December 31, 2003 and 2002, a valuation allowance of $2,346 and $3,824, respectively, was established against deferred income tax benefits relating primarily to net operating loss carryforwards that may not be realized. In 2003 and 2002, the
- The assets and liabilities allocated to the closed block are reported separately in our balance sheet under the captions "Closed Block assets" and "Closed Block liabilities," respectively.
In January 2000, the New York State Insurance Department approved, and MONY Life paid, a dividend to MONY Group in the amount of $75.0 million.
Of the net proceeds retained by the MONY Group, approximately $2.5 million was used to pay cash to Eligible Policyholders who received cash as described in the Plan (other than pursuant to an expression of a preference to receive cash), $10.0 million is for working capital for the MONY Group, $30.0 million is to be used to pay dividends on the MONY Group's common stock and $18.1 million was used by the MONY Group to pay cash to Eligible Policyholders pursuant to an expression of a preference to receive cash in accordance with the Plan.
During 1989, the Company entered into a transaction which is accounted for as a financing arrangement involving certain real estate properties held for investment. Pursuant to the terms of the agreement, the Company effectively pledged the real estate properties as collateral for a loan of approximately $35.0 million bearing simple interest at a rate of 8% per annum. The obligation was paid in full on December 1, 1999. At December 31, 1998 and 1997, the outstanding balance of the obligation including accrued interest was $42.4 million and $41.3 million, respectively. Interest expense on the obligation of $2.9 million, $3.1 million, and $3.0 million is reflected in Other Operating Costs and Expenses on the Company's statements of income for the years ended December 31, 1999, 1998 and 1997, respectively.
The following discussion analyzes the results of the major categories of general account invested assets, which includes invested assets of the closed block.
Mortgage loans comprise 15.8% and 12.9% of total invested assets at December 31, 1999 and 1998, respectively. Mortgage loans consist of commercial, agricultural and residential loans. As of December 31, 1999 and 1998, commercial mortgage loans comprised $1,141.4 million and $886.9 million or 66.6% and 62.5% of total mortgage loan investments, respectively. Agricultural loans comprised $570.7 million and $531.2 million or 33.3% and 37.4% of total mortgage loans, and residential mortgages comprised $1.3 million and $1.9 million or 0.1% and 0.1% of total mortgage loan investments at the dates indicated.
Below is a summary of the changes in the commercial mortgage portfolio for the years ended December 31, 1999, 1998 and 1997, respectively.
Under the Cost Method of accounting the investment is carried at its original cost and income is recognized when distributed as dividends from the partnership. The carrying amount of the investment is reduced only upon receipt of a dividend characterized by the partnership as a return of capital or liquidating dividend or when management has determined that the investment or portion thereof may not be recovered.
In addition to historical information, management's discussion and analysis below includes certain forward-looking statements, including those related to the Company's growth and strategies, future operating results and financial position as well as economic and market events and trends. The Company's actual results and financial position could differ materially from those anticipated in the forward-looking statements as a result of various factors, including competition, changes in health care regulations, levels of utilization of dental care services, new technologies, rising dental care costs and other risks and uncertainties as described above under "Risk Factors" and elsewhere in this Report. The following should be read in conjunction with the Consolidated Financial Statements of the Company and Notes thereto.
Net earned premiums: Gross written premiums 3123337 2508035 Premiums ceded to reinsurers –38254 –35620 Net written premiums 3085083 2472415 Gross change in reserves for unearned premiums –6439 –266 Reinsurers’ share of gross change in reserves for unearned premiums 1129 –1089 Net change in reserves for unearned premiums –5310 –1355 Net earned premiums 3079773 2471060 –19.8% Net interest income assigned to life activities 790616 801667 1.4% Funds transferred from policyholders’ dividend reserve 27845 2494 –91.0% Net benefits paid: Benefits paid: – Gross –2385591 –2706743 – Reinsurers’ share 24812 36131 – Net –2360779 –2670612 Change in reserves for benefits outstanding: – Gross –31033 6283 – Reinsurers’ share 2377 –1051 – Net –28656 5232 Net benefits paid –2389435 –2665380 11.5% Net change in actuarial reserves: – Gross –1055012 –106873 – Reinsurers’ share –475 –747 – Net –1055487 –107620 –89.8% Net change in other underwriting reserves –13645 –57170 319.0% Net underwriting expenses: – Gross underwriting expenses –313364 –286733 – Commissions and profit share received from reinsurers 7508 4928 Net underwriting expenses –305856 –281805 –7.9% Other net underwriting expenditure Net –841 –592 –29.6% Result from life underwriting activities before policyholders’
Net expenditure on results-linked and non-results-linked policyholders’ dividends –103408 –124287 20.2% Result from life underwriting activities 29562 38367 29.8%
Seville, was dissolved in 2004, the remaining assets and liabilities were fully integrated into Helvetia
Shares, other non-fixed interest rate securities, investment funds and derivatives are shown at market value. Deferred taxes are shown on the balance sheet under “Reserves for taxes”.
Any differences between the market value and book value in individual accounts of real-estate assets held are similarly treated. All other valuation differences between the consolidated financial statements and the accounts of individual companies are charged or credited in the profit and loss account. Necessary depreciation on investments is charged to the consolidated profit and loss account.
Investments for unit-linked life insurance policies 6.0 –0.1 15.0 –6.9 4.9 –26.1 –7.3
Tangible fixed assets/other assets 136.5 –1.2 –5.8 22.9 15.4 0.0 167.8
The consolidated balance sheet contains pension commitments and other liabilities towards staff pension schemes amounting to CHF 112.3 million (2003: CHF 103.9 million).
The employer’s contribution reserve in a welfare foundation amounts to CHF 1.4 million (2003: CHF 21.8 million) at 31.12.2004.
CHF 16.3 million (2004: CHF 3.8 Million) – was determined to be appropriate based on the strategic plans of the relevant entities. The remainder of capitalized goodwill amounts to CHF 18.7 million at 31.12.2004 (2003: CHF 22.5 million) and is included in the balance sheet position “Intangible assets”.
9. Guarantee for a company in the process of being established
A Group company has committed to hold harmless the persons responsible for the formation of a new company in respect of the formation costs.
If one or more of the variables or assumptions used changed such that the Company’s recorded loss ratio, or loss provision as a percentage of net title premiums, increased or decreased two loss ratio percentage points, the impact on after-tax income for the year ended December 31, 2012, would be as follows. Company management believes that using a sensitivity of two loss percentage points for the loss ratio provides a reasonable benchmark for analysis of the calendar year loss provision of the Company based on historical loss ratios by year.
Business Development: Business development expenses increased $180,564 to $1,887,398 in 2012, compared with $1,706,834 in 2011, primarily due to increases in travel and marketing expenses related to higher levels or real estate activity.
As of December 31, 2012, the Company held $2,222,156 in fixed maturity securities with unrealized losses of $25,205. As of December 31, 2011, the Company held $4,702,615 in fixed maturity securities with unrealized losses of $162,485. The decline in fair value of the fixed maturity securities can be attributed primarily to changes in market interest rates and changes in credit spreads over Treasury securities. Because the Company does not have the intent to sell these securities and likely will not be compelled to sell them before it can recover its cost basis, the Company does not consider these investments to be other-than-temporarily impaired.
The Company’s policy is to report interest and penalties related to income taxes in the Other line item in the Consolidated Statements of Income.
On November 17, 2003, ITIC entered into employment agreements with key executives that provide for the continuation of certain employee benefits upon retirement. The executive employee benefits include health insurance, dental insurance, vision insurance and life insurance. The benefits are unfunded. Estimated future benefit payouts expected to be paid for each of the next five years are $3,993 in 2013, $4,462 in 2014, $4,930 in 2015, $5,395 in 2016, $9,489 in 2017 and $100,231 in the next five years thereafter.
The Company is required to recognize the funded status (i.e., the difference between the fair value of the assets and the accumulated postretirement benefit obligations of its postretirement benefits) in its Consolidated Balance Sheet, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The net amount in accumulated other comprehensive income is $(155,234), $(102,453) net of tax, for December 31, 2012, and $(82,392), $(54,376) net of tax, for December 31, 2011, and represents the net unrecognized actuarial losses and unrecognized prior service costs. The effects of the funded status on the Company’s Consolidated Balance Sheets at December 31, 2012 and 2011 are presented in the following table:
It is management's objective that the portfolio of debt securities be of high quality and be well-diversified by market sector. The debt securities in the Company's portfolio are generally rated by external rating agencies, and, if not externally rated, are rated by the Company on a basis believed to be similar to that used by the rating agencies. The average quality rating of the Company's debt security portfolio at December 31, 1998 and 1997 was AA-.
The portfolio of debt securities at December 31, 1998 and 1997 included $839 million (7% of the total debt securities) and $903 million (7% of the total debt securities), respectively, of investments that are considered "below investment grade". "Below investment grade" securities are defined to be securities that carry a rating below BBB- and Baa3, by Standard & Poor's and Moody's Investors Services, respectively.
Short-term investments, consisting primarily of money market instruments and other debt issues purchased with an original maturity of 91 days to one year, are considered available for sale and are carried at fair value, which approximates amortized cost.
(1) At December 31, 1998 and 1997, approximately 66% and 73%, respectively, of the Company's residential CMO holdings were backed by government agencies such as GNMA, FNMA, FHLMC.
There are various categories of CMOs which are subject to different degrees of risk from changes in interest rates and, for nonagency-backed CMOs, defaults. The principal risks inherent in holding CMOs are prepayment and extension risks related to dramatic decreases and increases in interest rates resulting in the repayment of principal from the underlying mortgages either earlier or later than originally anticipated. At December 31, 1998 and 1997, approximately 2% and 4%, respectively, of the Company's CMO holdings were invested in types of CMOs which are subject to more prepayment and extension risk than traditional CMOs (such as interest- or principal-only strips).
(1) Pretax unrealized holding gains (losses) arising during the year were $58.8 million, $152.3 million and ($22.9) million for 1998, 1997 and 1996, respectively. (2) Pretax reclassification adjustments for gains and other items included in net income were $40.6 million, $102.4 million and $87.7 million for 1998, 1997 and 1996, respectively.
In addition to providing pension benefits, Aetna currently provides certain health care and life insurance benefits for retired employees. A comprehensive medical and dental plan is offered to all full-time employees retiring at age 50 with 15 years of service or at age 65 with 10 years of service. There is a cap on the portion of the cost paid by the Company relating to medical and dental benefits. Retirees are generally required to contribute to the plans based on their years of service with Aetna. The costs to the Company associated with the Aetna postretirement plans for 1998, 1997 and 1996 were $0.9 million, $2.7 million and $1.8 million, respectively.
The California medical malpractice insurance market for medical groups and physicians, in which the Company principally operates, has been extremely competitive for a number of years. The Company's principal competitors are three physician-owned companies and a physicians' mutual protection trust. In addition, commercial insurance companies have recently returned to the California market to insure medical groups and physicians.
The value of the fixed-maturity portfolio is subject to interest rate risk. Interest rates have risen substantially since December 31, 1998, resulting in a decline in the value of five-year treasury bonds and adversely affecting the carrying value of the Company's fixed maturity portfolio. At December 31, 1998 the Company's fixed maturities were valued at $23.2 million in excess of amortized cost. At December 31, 1999, the value of the portfolio had declined to $22.8 million below amortized cost. If these securities were sold at their current carrying values, the Company would record a realized loss on the sale.
LOSSES AND LAE Losses and LAE increased $8.8 million, or 7.2%, to $132.2 million in 1998 from $123.4 million in 1997. As a percentage of premiums earned, losses and LAE decreased to 83.7% in 1998 from 92.2% for the same period in 1997. For 1998, the Company reduced loss and LAE reserves incurred in prior policy years approximately $93.8 million as compared to a reserve reduction of $53.2 million for 1997 for claims incurred in prior policy years. The redundancies recognized in 1998 were offset, in part, by a $28.1 million increase in the loss and LAE reserves for the medical malpractice insurance business assumed from Fremont in January 1998.
A key employee of Pumpkin was granted options to acquire 36 shares, or 4% of the Class A Common Stock of Pumpkin, at an exercise price per share of $1,754. The options, which are immediately exercisable, are subject to certain restrictions on transfer of these shares of Pumpkin owned by the executive, together with certain preemptive rights, puts and calls and "tag along/drag along" rights with respect to these shares. The options have a term of ten years.
MINIMUM RENTAL PAYMENTS ----------------------- (IN THOUSANDS) Year 1999................................. $ 123 2000................................. 123 2001................................. 123 2002................................. 94 ------ Total minimum office operating lease payments........................... $ 463 ======
time, although the Company is unable to determine the amount, if any, which may eventually be owed to the State of New York, the Company believes its previously filed returns are correct and that no additional amounts are owed to the State of New York.
 Portuguese (€ 141.7 million) and Brazilian (€ 204.5 million) subsidiaries
 CNP Capitalia Vita:  7.1% market share for bancassurance in 2007
All credit card securitisation is AAA • 79% United States • 17% United Kingdom • 4% Germany
 Limited value variations  Quality of portfolio: no payment defaults
 In total: variation of - € 167 million on equity after impact of the finance law
 Main changes in economic forecasts between 2006 and 2007:  France and Italy: increase in rates without risk of 3.98% (in 2006) to 4.42%
 In Force Brazil continues to perform well (+ 27% / + 17% at constant exchange rate) carried by new business still on net increase and elimination of reinsurance sales on loan insurance business. Social contributions up from 9% to 15%; submission to parliament in March anticipated.
 Beginning 2008: competition from bank products and Livret A savings book
Premiums and policy fees increased 8.8% in 1993 over 1992. The transfer of Protective's ownership of SEHP to PLC represents a $40.5 million decrease in premiums and policy fees. Increases in premiums and
In May 1993, the Financial Accounting Standards Board issued SFAS No. 114, "Accounting by Creditors for Impairment of a Loan." Protective anticipates that the impact of adopting SFAS No. 114 on its financial condition will be insignificant.
- Universal Life and Investment Products -- Universal life and investment products include universal life insurance, guaranteed investment contracts, deferred annuities, and annuities without life contingencies. Revenues for universal life and investment products consist of policy fees that have been assessed against policy account balances for the costs of insurance, policy administration, and surrenders. That is, universal life and investment product deposits are not considered revenues in accordance with generally accepted accounting principles. Benefit reserves for universal life and
At the time it adopted SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments," Protective made certain assumptions regarding the mortality, persistency, expenses, and interest rates it expected to experience in future periods. Under SFAS No. 97, these assumptions are to be best estimates and are to be periodically updated whenever actual experience and/or expectations for the future change from initial assumptions. Accordingly, Protective has substituted its actual experience to date for that previously assumed.
The change in unrealized gains (losses) on fixed maturity and equity securities for the years ended December 31 is summarized as follows:
Summarized below are the consolidated results of operations for 1993 and 1992, on an unaudited pro forma basis, as if the Wisconsin National acquisition had occurred as of January 1, 1992. The pro forma information is based on Protective's consolidated results of operations for 1993 and 1992 and on data provided by Wisconsin National, after giving effect to certain pro forma adjustments. The pro forma financial information does not purport to be indicative of results of operations that would have occurred had the transaction occurred on the basis assumed above nor are they indicative of results of the future operations of the combined enterprises.
In 1990, PLC established an Employee Stock Ownership Plan to match employee contributions to PLC's existing 401(k) Plan. Previously, PLC matched employee contributions in cash. The expense recorded by PLC for this employee benefit was $249 thousand, $412 thousand and $451 thousand in 1993, 1992, and 1991, respectively.
Assets. Assets attributable to the Bermuda operations increased to $569.1 million at the end of 2010 compared to $545.0 million at the end of 2009. This increase is primarily due to cash flow from operations and increased market values of investments. Assets attributable to the U.S. operations at the end of 2010 increased to $652.1 million as compared to $602.6 million at the end of 2009 due to positive cash flow from operations for 2010 and increased market values of investments.
(1) The above table includes all interest payments through the expiration of debt instruments. All amounts are reflected based on final maturity dates. Variable rate interest obligations are estimated based on current interest rates. As a result of applying interest rates based on the current LIBOR rate plus the contractual spread for each capital trust, the interest rates were 4.5%, 4.2% and 3.7% for American Safety Capital Trust, American Safety Capital Trust II and American Safety Capital Trust III, respectively as of December 31, 2010. These rates are used to calculate the variable interest rate obligations through maturity.
For these purposes, routine purchases of services, including insurance, that are expected to be used in the ordinary course of the Company’s business have been excluded. More information about our contractual obligations appears in Notes 8 and 12 to our consolidated financial statements.
Although the Corporation discontinued the Avomark line, the Corporation remains committed to developing Internet capabilities that focus on increased service support for agents and their customers, and our policyholders.
December 31, 2000, the Corporation was in compliance with these covenants. However, further deterioration of operating results, reductions in the equity portfolio valuation, or other changes in statutory surplus, including the effects of adopting new statutory accounting principles (such as Codification), may lead to covenant violations which could ultimately result in default.
The Registrant’s home office is located at 440 Mamaroneck Avenue, Harrison, New York 10528. Personnel performing services for the Registrant operate in AUSA office space in Cedar Rapids, Iowa and St. Petersburg, Florida. An allocable share of the cost of each of the above mentioned premises was paid by the Registrant through the common cost allocation service agreement.
The Company regularly reviews each investment in its fixed maturity and equity AFS securities portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of investments. Management makes this determination through a series of discussions with the Company’s portfolio managers and credit analysts, and information obtained from external sources (i.e; company announcements, ratings agency announcements, or news wire services). For fixed maturity AFS securities, the Company also considers whether it is more likely than not that it will not be required to sell the debt security before its anticipated recovery. The factors that may give rise to a potential OTTI include, but are not limited to, i) certain credit-related events such as default of principal or interest payments by the issuer, ii) bankruptcy of issuer, iii) certain security restructurings, and iv) fair market value less than cost or amortized cost for an extended period of time. In the absence of a readily ascertainable market value, the estimated fair value on these securities represents management’s best estimate and is based on comparable securities and other assumptions as appropriate. Management bases this determination on the most recent information available.
At December 31, 2012 and 2011, the Company had 932 and 994 life insurance and annuity contracts inforce with interest rate guarantees, respectively. The estimated average rate of interest credited on behalf of contract owners was 3.8% and 4.1% during 2012 and 2011, respectively. Total invested assets supporting these liabilities with interest rate guarantees had an estimated average effective yield of 3.9% and 4.3% during 2012 and 2011, respectively.
Policy charge revenue decreased $0.6 million (or 4.1%) to $14.0 million during 2011, as compared to $14.6 million in 2010. The following table provides the changes in policy charge revenue by type for each respective period:
The Company's main administrative offices are located at 75 West Street, Simsbury, Connecticut. This office space was previously solely occupied by one of the Company's new subsidiaries, AIM. The jointly occupied leased space is approximately 6,000 square feet at this location with annual rental on a five-year lease expiring in April 30, 2004. As of December 31, 1999, the Company's information systems are provided through a month-to-month arrangement with Data-Tech, Inc. at 2550 Corporate Exchange Drive, Columbus, Ohio.
Gross premium writings for 1999 were $21.8 million compared to $43.3 million and $40.9 million for 1998 and 1997, respectively. Except for the 100%-ceded aviation risks program, the Company ceased writing new and renewal business in all other programs by no later than September 1999. Premiums written increased in 1998 from 1997 by $5.4 million for commercial auto and $1.0 million for other property and casualty programs offset by a decrease of $3.9 million for the vehicle extended service contract program that was fully ceded to Lyndon Property. See Table II following the narrative in Management's Discussion and Analysis.
(5) Certain information prior to 1998 has been reclassified to conform with the 1998 and forward year presentation.
The Company generally selects investment assets with characteristics such as duration, yield, currency, and liquidity to reflect the underlying characteristics of related insurance and reinsurance contracts. The Company selects medium term fixed rate investments to support general liability claims and shorter investments to support property claims.
On December 20, 2000 the Board of Directors declared a quarterly dividend of $.025 per share, payable January 19, 2001 to stockholders of record on December 29, 2000. The Company is largely dependent upon dividends from the Insurance Companies to pay dividends to the stockholders. The Company's Insurance Companies are subject to regulations that restrict their ability to pay dividends.
In addition, as a result of the transaction, the Company will incur related expenses of approximately $2.5 million during the period January 1, 2001 through completion of the transaction.
The consolidated financial statements include the accounts of JMC Group, Inc. ("JMCG" or the "Company"), its wholly owned subsidiaries, JMC Investment Services, Inc. ("JMCI") (formerly Priority Investment Services, Inc. which was formerly Spear Rees & Co.) and James Mitchell & Co. and its subsidiaries ("JMC"). Through the end of 1997, the Company was engaged in the business of selling and providing support services for the sales of annuities, insurance products, and mutual funds to the customers of banks, savings and loan associations and thrifts. Effective January 25, 1994, Spear Rees & Co. changed its name to Priority Investment Services, Inc. Effective July 23, 1996, Priority Investment Services, Inc. changed its name to JMCI. JMCI is registered with the Securities and Exchange Commission and the National Association of Securities Dealers (NASD) as a broker-dealer.
At the end of the fourth quarter of 1997, the Company's agreement with its Tennessee-based financial institution client terminated. As part of the termination agreement, the financial institution exercised its right to purchase future asset-based fee revenues from the Company. The Company recorded a gain of $1,870,000 from the sales price of $2.2 million less $330,000 recognizable after certain contingencies are met in the first quarter of 1998. As of December 31, 1997, the Company received $407,139. The remaining balance of $1,462,861, included in the line item "Receivable from financial institution," is expected to be received in the first quarter of 1998.
As of January 1, 1998 the Company had one office which was being subleased. The net obligation on such office, included in the above minimum aggregate rental, is included in accrued restructuring charges as of December 31, 1997.