felanders/preprocessed huggingface dataset:
“The successful launch of our 100% digital business in Brazil epitomises the
Community of volunteers and social entrepreneurs with a presence across 100 cities worldwide. A digital model for sharing and innovating.
Jean-Charles Samuelian From our very first meeting with Open CNP’s staff and all the CNP Assurances teams, we were extremely impressed and indeed astonished by how well you grasped what matters to us and how rapidly you responded to our needs. And we had many other options when we chose CNP Assurances as our partner shareholder.
She tested out Lyfe’s first service – arranging express medical appointments – and is now interested in health coaching.
Bruno is an interface designer specialising in UX (user experience), and is a member of one of Youse’s eight “squads”. These teams have all the skills needed to take a product from design to launch, and to monitor it while interacting with customers. Youse is a radically different way of thinking about selling insurance.
€31.5 billion GROUP PREMIUM INCOME – 0.2% up + 1.4% like for like
Dividend per share in cash submitted for shareholders’ approval at the Annual General Meeting on 13 April 2017
O.2% in term creditor insurance 157,OOO policies unit-linked to SRI funds 4OO young people analyse the needs of 18-25 year olds via CNP Assurances’ You
Photo credits: cover: Getty images/Thomas Barwick – p. 1: Getty images/Thomas Barwick – p. 2: Getty image/Thomas Barwick, Aldo Sperber/Picturetank – p. 6: AldoSperber/Picturetank – p. 8-9: Aldo Sperber/Picturetank – p. 10-11: Aldo Sperber/Picturetank p. 13: Aldo Sperber/Picturetank – p. 14-15: Aldo Sperber/Picturetank, Getty images/Ariel Skelley – p. 16-17: Aldo Sperber/Picturetank, Gettyimages/Hero Images – p. 19: Aldo Sperber/Picturetank – p. 20-21: Aldo Sperber/Picturetank, Pierre-Yves Brunaud/Picturetank p. 22-23: Getty images/Thomas Barwick, Aldo Sperber/Picturetank – p. 25: Aldo Sperber/Picturetank p. 26-27: Aldo Sperber/Picturetank – GettyImages/Thomas Barwick – p. 28-29: Aldo Sperber/Picturetank – Getty images/vgajic p. 31: Aldo Sperber/Picturetank – Getty images/Alistair Berg – p. 32-33: Getty images/Alistair Berg, Aldo Sperber/Picturetank p. 34-35: Aldo Sperber/Picturetank, John Lund/Marc Romanelli – p. 37: Aldo Sperber/Picturetank p. 38-39: Getty images/kaisersosa67, Aldo Sperber/Picturetank – p. 40-41: Getty Images/Morsa Images, Aldo Sperber/Picturetank p. 43: Getty images/Marcelo Horn – p. 44-45: Gettyimages/JAG Images – p. 46: Getty images/JAG Images p. 49: Aldo Sperber/Picturetank – p. 50-51: Patrick Gaillardin/LookatSciences, Aldo Sperber/Picturetank p. 52: Bibliothèques Sans Frontières – p. 55: Franck Juery, J. Daniel, Aldo Sperber, D. Croizet – p. 60: Gettyimages/peshkov.
All statements, trend analyses and other information contained in this report and elsewhere (such as in filings by us with the Securities and Exchange Commission, press releases, presentations by us or our management or oral statements) relative to markets for our products and trends in our operations or financial results, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," and other similar expressions, constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include, among other things:
On October 18, 1996, we borrowed $10,000,000 from two banks under a variable rate revolving credit agreement. Proceeds from the borrowing were contributed to the capital and surplus of our life subsidiary ($6,000,000) and used to refinance indebtedness we incurred to capitalize our life subsidiary at the time of its formation ($4,000,000). During 1999, this line of credit was increased to permit maximum borrowings of $25,000,000, and we borrowed an additional $10,600,000, bringing our liability for notes payable to $20,600,000 at December 31, 1999. During 2000, the maximum borrowing level was increased to $50,000,000, and the Company borrowed an additional $23,400,000. We loaned the proceeds of the 1999 borrowings to American Equity Investment Service Company (see discussion that follows under LIQUIDITY OF PARENT COMPANY). The loan matures on March 31, 2001 with an option for a four year extension as a term loan. Under this agreement, we are required to maintain minimum capital and surplus levels at our life subsidiary and meet certain other financial and operating ratio requirements. We are also prohibited from incurring other indebtedness for borrowed money without obtaining a waiver from the lenders and from paying dividends on our capital stock in excess of 10% of our consolidated net income for the prior fiscal year (except that in 1999 we were permitted to make a dividend payment equal to 44% of our consolidated net income for 1998).
Inflation does not have a significant effect on our balance sheet; we have minimal investments in property, equipment or inventories. To the extent that interest rates may change to reflect inflation or inflation expectations, there would be an effect on our balance sheet and operations. Higher interest rates experienced in recent periods have decreased the value of our fixed maturity investments. It is likely that declining interest rates would have the opposite effect. It is not possible to calculate the effect such changes in interest rates, if any, have had on our operating results.
Capitated contract revenues decreased by 6.4%, or approximately $1.5 million, to $22.1 million for the fiscal year ended May 31, 2005 compared to $23.6 million for the fiscal year ended May 31, 2004. This decrease is primarily attributable to the loss of one major customer in Florida that accounted for $4.4 million of revenue during the fiscal year ended May 31, 2004, offset partially by increased revenues primarily in Connecticut and Texas. Non-capitated revenue declined 39.8% or approximately $1.6 million to $2.4 million for the fiscal year ended May 31, 2005, compared to $4.0 million for the same period of fiscal 2004. This decrease is attributable to the loss of ASO clients in Michigan and Texas.
(2) Related to the Company’s discontinued hospital operations, Medicare guidelines allow the Medicare fiscal intermediary to re-open previously filed cost reports. The Company’s fiscal 1999 cost report, the final year the Company was required to file a cost report, is being reviewed, in which case the intermediary may determine that additional amounts are due to or from Medicare. Management believes cost reports for fiscal years prior to fiscal 1999 are closed and considered final.
In February 2006, CBC entered into an agreement with Hythiam whereby CBC would have the exclusive right to market Hythiam’s substance abuse disease management program to its current and certain mutually agreed upon prospective clients. The program is an integrated disease management approach designed to offer less restrictive levels of care in order to minimize repeat detoxifications. Under the agreement, CBC will pay Hythiam license and service fees for each enrollee who is treated. As of December 31, 2006, there had been no material transactions resulting from this agreement. On January 12, 2007, Hythiam acquired 100% of the outstanding membership interests of Woodcliff, the owner of a controlling interest in the Company.
In addition, we may, from time to time, invest in managing general agents or other insurance vehicles as part of our ongoing strategy to leverage our underwriting and capital markets expertise to structure and offer capital alternatives in numerous forms and combinations, including equity, debt and reinsurance offerings.
See Note 24 to the accompanying consolidated financial statements for a calculation of net underwriting loss and combined ratio.
In managing TP Fund’s investment portfolio, Third Point LLC assigns every investment position a sector, strategy and geographic category. The dollar exposure of each position under each category is aggregated and the exposure percentages listed in the exposure table represent the aggregate market exposure of a given category against the total net asset value of the consolidated account. Long and short exposure percentages represent the aggregate relative value of all long and short positions in a given category, respectively. Net exposure represents the short exposure subtracted from the long exposure in a given category. Third Point LLC reports the composition of TP Fund’s total managed portfolio on a market exposure basis, which it believes is the appropriate manner in which to assess the exposure and profile of investments and is the way in which it manages the portfolio. Under this methodology, the exposure for equity swaps and futures contracts are reported at their full notional amount. The notional amount of any derivative contract is the underlying value upon which payment obligations are computed. For an equity total return swap, for example, the notional amount is the number of shares underlying the swap multiplied by the market price of those shares. Options are reported at their delta adjusted basis. The delta of an option is the sensitivity of the option price to the underlying stock price. The delta adjusted basis is the number of shares underlying the option multiplied by the delta and the underlying stock price. Credit derivatives are reported in accordance with their equivalent underlying security exposure. Cash and cash equivalents are excluded from exposure calculations.
For the year ended December 31, 2018, the net investment results were primarily attributable to losses generated by long equity investments, a merger arbitrage position, and exposure to cyclical sectors negatively impacted by slowing global growth. Short selling generated positive returns and mitigated further losses in equities. The credit portfolio produced a modest overall loss. The asset-backed securities portfolio’s gains were reduced by losses in corporate credit.
LOSS AND LAE RESERVES Medical malpractice and other property and casualty loss and loss adjustment expense (LAE) reserves are established based on known facts and interpretation of circumstances, including the Company's experience with similar cases and historical trends involving claim payment patterns, loss payments and pending levels of unpaid claims, as well as court decisions and economic conditions. The effects of inflation are considered in the reserving process. Establishment of appropriate reserves is an inherently uncertain process, and there can be no assurance that currently established reserves will prove adequate in light of subsequent actual experience. The Company follows a practice of conservatively estimating its future liabilities relating to losses already incurred and has attempted to establish its loss and LAE reserves at the upper end of a reasonable range of reserve
OPERATING EXPENSES With its continued expansion into other states and markets, the Company has experienced an increase in its operating expense levels to achieve and service this expansion. Commissions for policies that are sold through agents and brokers typically range from 7.5% to 17.5% of premiums, whereas the Company does not incur commissions on products sold directly. Hospital and other healthcare provider policies are typically sold through brokers, as are physicians and medical group policies sold through Poe & Brown and in the program acquired from Fremont. To the extent that these policies represent an increased percentage of the Company's business in the future, expense ratios will increase.
During May 1997, the Board of Directors authorized the repurchase of up to 1,000,000 shares of its common stock in the open market. The repurchase may begin at any time and continue until May 1998. During 1997, 15,400 shares were repurchased. Subsequent to December 31, 1997, an additional 55,800 shares were repurchased.
Growth in the Company's fixed maturity portfolio contributed to the 6% increase in investment income. The unusual increase in realized gains and other income resulted primarily from two sources. The Company took advantage of market conditions and sold a small number of its available-for-sale fixed income securities. In addition, the settlement of a Federal income tax Revenue Agent Review for previous tax years resulted in the receipt of $2,074,000 in interest, which is included in realized investment gains and other income.
United Life Insurance Company with earnings of $8,132,000 and a return on equity of 12% had a very good year. The interest rate environment (stable to falling rates) were favorable for the life insurance and annuity business. Annuities which now account for $275,000,000 of our life reserves continue to grow. Our principle annuity product is simple Single Premium Deferred Annuity without any of the gimmicks which are so common in other companies' offerings. United Life now counts for over half of your Company's assets.
When people buy a stock they naturally want to buy it at the lowest possible price and likewise when people sell stock they want to obtain the best price they can. Unfortunately for most of this year, neither the buyers or sellers of our stock have gotten a very good deal as the spread (or as our actuary likes to call it, "the skim"), i.e., the difference between the "bid" and the "asked," has been far too wide. In fact it has been so wide you could drive an 18-wheel rig through it. We sympathize with anyone trying to buy or sell our stock, but do what we may, nothing seems to reduce that spread for long and for most of this year it seemed to get even wider. Stock splits are suppose to increase the float, attract more activity and reduce the spread. They only seem to work for awhile. If William Shakespeare had taken the Globe Theater public and listed it on NASDAQ, perhaps our favorite line from Hamlet would read, "First we'll kill all the market makers and then we'll kill the lawyers."
As permitted by SFAS No. 87, "Employers' Accounting for Pensions", the Company uses September 30 as the date for measuring plan assets and liabilities in order to obtain information necessary for the preparation of the financial statements on a timely basis.
The Company has a profit sharing plan in which employees who meet age and service requirements are eligible to participate. The amount of the Company's contribution is discretionary and is determined annually but cannot exceed the amount deductible for Federal income tax purposes. The Company's contribution to the plan for the years ended December 31, 1996, 1995 and 1994 was $717,000, $1,561,000 and $649,000, respectively.
We currently own and occupy our executive offices located at 9151 Boulevard 26, North Richland Hills, Texas 76180-5605 and 8825 Bud Jensen Drive, North Richland Hills, Texas 76180-5605 comprising in the aggregate approximately 281,000 and 30,000 square feet, respectively, of office and warehouse space.
The purchase price was subject to downward or upward adjustment based on the amount of premium generated with respect to the 2007-2008 school year and actual claims experience with respect to the in-force block of student insurance business at the time of the sale. We recorded $5.5 million and $1.2 million of realized gains as adjustments to the purchase price during 2008 and 2007, respectively. The purchase price adjustment in 2008 was the final adjustment pursuant to the sale transaction agreement.
The table below sets forth income (loss) from continuing operations for our Disposed Operations for the years ended December 31, 2009, 2008 and 2007:
The required minimum aggregate statutory capital and surplus of our principal domestic insurance subsidiaries were as follows at December 31, 2009:
We conduct a significant portion of our business through our insurance subsidiaries, which are subject to regulations and standards established by their respective states of domicile. Most of these regulations and standards conform to those established by the NAIC. These standards require our insurance subsidiaries to maintain specified levels of statutory capital, as defined by each state, and restrict the timing and amount of dividends and other distributions that may be paid to their parent company. Generally, the amount of dividend distributions that may be
Our domestic insurance companies paid dividends of $68.8 million, $249.6 million (including the $110.0 million extraordinary dividend) and $171.2 million (including the $100.0 million extraordinary dividend), respectively, to HealthMarkets, LLC in 2009, 2008 and 2007.
responding bids to purchase the investment at that price. As this price was not set based on an active market, we developed a fair value for the investment. We continued to fair value this debt obligation as such during 2009.
Investments are selected based upon the parameters established in the Company’s investment policies. Emphasis is given to the selection of high quality, liquid securities that provide current investment returns. Maturities or liquidity characteristics of the securities are managed by continually structuring the duration of the investment portfolio to be consistent with the duration of the policy liabilities. Consistent with regulatory requirements and internal guidelines, we invest in a range of assets, but limit our investments in certain classes of assets, and limit our exposure to certain industries and to single issuers.
Represents security received from the purchaser as consideration upon sale of our former Student Insurance Division on December 1, 2006. To reduce our credit risk, we have taken out $75.0 million of credit default insurance on this security, reducing our default exposure to $19.8 million.
Revenues increased $454, or 8%, primarily related to the growth across each of Hartford Life's primary operating segments, particularly the Investment Products and Group Benefits segments, where revenues increased $339, or 17%, and $183, or 9%, respectively. The revenue growth in the Investment Products segment was primarily due to higher fee income in the individual annuity and retail mutual fund operations as related average assets under management in 2000 were higher than 1999. The Group Benefits segment experienced higher earned premiums due to strong sales and persistency. The Individual Life segment also contributed to the revenue increase as a result of strong sales and favorable persistency. Partially offsetting the growth in revenues was the decrease in COLI revenues primarily related to the declining block of leveraged COLI business.
Benefits, claims and expenses increased $47, or 10%, primarily due to a $16, or 6%, increase in benefits, claims and claim adjustment expenses and a $16, or 12%, increase in amortization of deferred policy acquisition costs mostly associated with the growth in this segment's variable business. Additionally, insurance expenses and other increased $15, or 17%, directly associated with the growth in this segment as previously described. Net income increased $8, or 11%, primarily due to higher fee income as mortality experience (death claims as a percentage of net amount at risk) was consistent with prior year.
of the period. For the Company's group disability policies, the level of reserves is based on a variety of factors including particular diagnoses, termination rates and benefit levels.
As of December 31, 2000 and December 31, 1999, approximately 22.3% and 21.5%, respectively, of the Company's fixed maturity portfolio was invested in private placement securities (including 13% and 12% of Rule 144A offerings as of December 31, 2000 and December 31, 1999, respectively). Private placement securities are generally less liquid than public securities. However, private placements generally have covenants designed to compensate for liquidity risk. Most of the private placement securities in the Company's portfolio are rated by nationally recognized rating agencies. For further discussion of the Company's investment credit policies, see the Capital Markets Risk Management section under "Credit Risk".
Hartford Life is not exposed to any significant credit concentration risk of a single issuer.
Option Contracts -- The Company uses option contracts to hedge debt instruments that totaled $951 and $254 in notional amounts and $(34) and $(50) in carrying value as of December 31, 2000 and 1999, respectively.
As of December 31, 2000, Hartford Life had immaterial currency exposures resulting from its international operations.
losses from GMLB Riders in the current period, compared to gains in the prior period, see “- GMLB Riders for the Years Ended December 31, 2019 and 2018;”
current period gains on interest rate derivatives used to manage interest rate exposure in our ULSG business due to declining long-term interest rates; and
The following financial strength ratings represent each rating agency’s current opinion of our ability to pay obligations under insurance policies and contracts in accordance with their terms and are not evaluations directed toward the protection of investors in our securities. Financial strength ratings are not statements of fact nor are they recommendations to purchase, hold or sell any security, contract or policy. Each rating should be evaluated independently of any other rating.
Invested assets on deposit, held in trust and pledged as collateral are presented below at estimated fair value at:
At December 31, 2019 and 2018, the balance in AOCI associated with cash flow hedges was $232 million and $253 million, respectively.
Interest expense related to long-term debt of $60 million, $6 million and $58 million for the years ended December 31, 2019, 2018 and 2017, respectively, is included in other expenses, of which $58 million, $4 million and $35 million, respectively, was associated with affiliated debt.
On December 21, 2018, Brighthouse Life Insurance Company issued a $200 million surplus note due December 2058 to NELICO (the “December 2058 Surplus Note”) in exchange for $28 million of cash and $172 million of invested assets, primarily fixed maturity securities. The December 2058 Surplus Note bears interest at a fixed rate of 8.15%, payable annually. On December 21, 2018, with the prior approval of the Commonwealth of Massachusetts Division of Insurance, NELICO distributed the December 2058 Surplus Note to BH Holdings via a non-cash extraordinary dividend. Payments of interest and principal on the December 2058 Surplus Note may be made only with the prior approval of the Delaware Department of Insurance.
In April 2017, in connection with the Contribution Transactions, the Company recognized a $2.7 billion return of capital to MetLife, Inc. See Note 3.
Under BRCD’s plan of operations, no dividend or distribution may be made by BRCD without the prior approval of the Delaware Commissioner. On December 30, 2019, the Delaware Commissioner approved an extraordinary dividend of $600 million payable to Brighthouse Life Insurance Company (see Note 16). During the years ended December 31, 2018 and 2017, BRCD paid extraordinary cash dividends of $0 and $535 million, respectively. During the years ended December 31, 2019, 2018 and 2017, BRCD paid cash dividends of $1 million, $2 million and $0, respectively, to its preferred shareholders.
Corporation (FHLMC), Federal National Mortgage Association (FNMA) and the Federal Home Loan Bank (FHLB).
Our IBNR reserves consist of our estimate of the total loss reserves required less our case reserves. The IBNR reserves for CAR assumed commercial automobile business are 45.5%, respectively, of our total reserves for CAR assumed commercial automobile business as of December 31, 2013 due to the reporting delays in the information we receive from CAR, as described further in the section on CAR Loss and Loss Adjustment Expense Reserves. Our IBNR reserves for FAIR Plan assumed homeowners are 59.0% of our total reserves for FAIR Plan assumed homeowners at December 31, 2013 due to similar reporting delays in the information we receive from FAIR Plan.
The Company is a leading provider of personal lines property and casualty insurance focused primarily on the Massachusetts market. The Company's principal product line is private passenger automobile insurance, which accounted for 63.9% of its direct written premiums in 2013. The Company operates through its insurance company subsidiaries, Safety Insurance Company, Safety Indemnity Insurance Company, and Safety Property and Casualty Insurance Company (together referred to as the "Insurance Subsidiaries").
For the years ended December 31, 2013, 2012, and 2011, the Company recorded compensation expense related to awards under the Incentive Plan of $2,954, $2,877, and $2,915, net of income tax benefit of $1,591, $1,549, and $1,570, respectively.
•Other asset-backed securities: overall credit quality, estimates of prepayment speeds based upon historical trends and characteristics of underlying loans, including assessments of the level and variability of collateral, revenue generating agreements, area licenses agreements, product sourcing agreements and equipment and property leases.
In order to ensure the fair value determination is representative of an exit price (consistent with ASC 820), the Company's procedures for validating quotes or prices obtained from third-parties include, but are not limited to, obtaining a minimum of two price quotes for each fixed maturity security if possible, as discussed above, the periodic testing of sales activity to determine if there are any significant differences between the market price used to value the security as of the balance sheet date and the sales price of the security for sales that occurred around the balance sheet date, and the periodic review of reports provided by its investment manager regarding those securities with ratings changes and securities placed on its "Watch List." In addition, valuation techniques utilized by pricing services and prices obtained from external sources are reviewed by the Company's external investment manager, whose investment professionals are familiar with the securities being priced and the markets in which they trade to ensure the fair value determination is representative of an exit price (consistent with ASC 820).
An unaudited summary of the Company's 2013 and 2012 quarterly performance, and audited annual performance, is as follows.
The following Management’s Discussion and Analysis of financial condition and results of operations should be read in conjunction with the Consolidated Financial Statements, related notes and other financial information appearing elsewhere in this Annual Report on Form 10-K, filed with the U. S. Securities and Exchange Commission (“SEC”).
We carry debt and equity securities classified as available-for-sale at fair value, and unrealized gains and losses on such securities, net of any deferred taxes, are reported as a separate component of accumulated other comprehensive income. We do not have any securities classified as trading or held-to-maturity.
Fair values are measured in accordance with ASC 820, Fair Value Measurements. The guidance establishes a framework for measuring fair value and a three-level hierarchy based upon the quality of inputs used to measure fair value. The three levels of the fair value hierarchy are: (1) Level 1: inputs are based on quoted prices (unadjusted) in active markets for identical assets or liabilities, (2) Level 2: inputs are other than quoted prices that are observable for the asset or liabilities, either directly or indirectly, for substantially the full term of the asset or liability and (3) Level 3: unobservable inputs that are
We purchased the ADC to greatly reduce our exposure to prior-year adverse development. The benefits of the ADC can be seen in the fourth quarter wherein we experienced $2.1 million of adverse development, but retained only $33,000 of that development. In 2017, we paid $7.20 million in ceded premiums under the ADC, and ceded $7.19 million in losses. There remains available $10.3 million of cover in the event of additional adverse development.
Policy acquisition costs are costs we incur to issue policies, which include commissions, premium taxes, underwriting reports and underwriter compensation costs. The Company offsets direct commissions with ceded commissions from reinsurers. The percentage of policy acquisition costs to net earned premiums and other income increased to 28.1% for the year ended December 31, 2017, compared to 27.8% in 2016. The increase was primarily due to the decrease in net earned premiums related to the ADC and reinstatement ceded premiums. Before the $7.2 million and $806,000 of ceded earned premiums, the policy acquisition cost ratio in 2017, was 25.9%, a 1.9 percentage point reduction. Our direct commission expense rate was consistent between 2016 and 2017.
Products offered by the Company include deferred and immediate (i.e., payout) annuity contracts. Company products also include programs offered to qualified plans and nonqualified deferred compensation plans that package administrative and record-keeping services, participant education, and retirement readiness planning tools along with a variety of investment options, including proprietary and non-proprietary mutual funds and variable and fixed investment options. In addition, the Company offers wrapper agreements entered into with retirement plans, which contain certain benefit responsive guarantees (i.e., guarantees of principal and previously accrued interest for benefits paid under the terms of the plan) with respect to portfolios of plan-owned assets not invested with the Company. Stable value products are also provided to institutional plan sponsors where we may or may not be providing other employer sponsored products and services.
As of December 31, 2016 and 2015 the Company did not have any impaired loans with allowances for losses.
Interest rate caps: The Company uses interest rate cap contracts to hedge the interest rate exposure arising from duration mismatches between assets and liabilities. Interest rate caps are also used to hedge interest rate exposure if rates rise above a specified level. Such increases in rates will require the Company to incur additional expenses. The future payout from the interest rate caps fund this increased exposure. The Company pays an upfront premium to purchase these caps. The Company utilizes these contracts in non-qualifying hedging relationships.
Assets held in separate accounts: Assets held in separate accounts are reported at the quoted fair values of the underlying investments in the separate accounts. The underlying investments include mutual funds, short-term investments and cash, the valuations of
Statutory net income (loss) was $266.2, $317.5 and $321.7, for the years ended December 31, 2016, 2015 and 2014, respectively. Statutory capital and surplus was $2.0 billion as of December 31, 2016 and 2015.
Shareholder's equity included the following components of AOCI as of the dates indicated.
Amended and Restated Services agreement between VRIAC and its U.S. insurance company affiliates and other affiliates for administrative, management, financial and information technology services, dated as of April 1, 2015. For the years ended December 31, 2016, 2015 and 2014, expenses related to the agreement were incurred in the amount of $44.5, $26.7 and $26.9, respectively.
The Company maintains a reciprocal loan agreement with Voya Financial, Inc., an affiliate, to facilitate the handling of unanticipated short-term cash requirements that arise in the ordinary course of business. Under this agreement, which became effective in June 2001 and expires on April 1, 2021, either party can borrow from the other up to 3.0% of the Company's statutory admitted assets as of the preceding December 31. During the years ended December 31, 2016, 2015, and 2014, interest on any borrowing by
Effective January 1, 2012, we began providing behavioral health services integrated with a specialized pharmacy management program for psychotropic drugs to approximately 39,000 members of a Medicare Advantage population serviced by a health plan in the states of Missouri and Washington. Services will be provided on an at-risk basis.
Borrowings. We have used on an as-needed basis unsecured loans from individuals and companies to meet on-going working capital needs. The duration of the borrowings has ranged from one week to three years, with stated interest rates ranging from 7% to 24%. Certain of the loans have contained features such as the ability to convert all or a portion of the loan into our common stock, or have had a warrant for the purchase of our common stock issued in conjunction with the loan, or both. During the twelve months ended December 31, 2011, we obtained approximately $4.0 million in loans to fund our operations. Repayments of $401,000 were made during 2011, which were funded from cash generated from operations and new borrowings. Future repayments are expected to be made from similar sources.
As of December 31, 2011 and 2010, the Company did not have any off-balance sheet arrangements.
(3) Represents a zero-coupon convertible promissory note issued to an unrelated individual in exchange for net proceeds of $200,000. The note has been renewed several times since February 2010. The note holder may elect to convert all or a portion of the face value of the note into our common stock at a conversion price of $0.25 per share. For 2011 and 2010, approximately $205,000 and $99,000 of interest expense was recognized related to the accretion to its carrying value. At the note’s maturity in November 2011, it was replaced by a new note of similar terms with a face value of $230,000 and a maturity date in February 2012.
(6) 14% convertible promissory note issued in December 2011 payable in quarterly installments of interest only until June 2013 when all principal comes due. During the term of the note, the holder may elect to convert the principal and unpaid interest to our common stock at an exercise price of $0.25 per share. In connection with this note, we also issued a five-year warrant to purchase 50,000 shares of our common stock at $0.44 per share. The warrant was vested at issuance.
We lease certain office space and equipment under leases expiring in 2012. The Tampa and Puerto Rico office leases contain annual escalation clauses and provisions for payment of real estate taxes, insurance, and maintenance and repair expenses. Total rental expense for all operating leases was approximately $642,000 and $631,000, respectively, for 2011 and 2010.
The United States and other parts of the world have been experiencing a severe and widespread recession accompanied by, among other things, instability in the financial markets and reduced credit availability, and political uncertainty in the U.S.
Selling, General and Administrative Expenses. Selling, general and administrative expenses were $14.7 million for the year ended December 31, 1998 compared to $10.0 million (including management fees paid to shareholder) for the year ended December 31, 1997, an increase of $4.7 million or 47.0%. This increase was primarily due to additional executive management, staffing, office space and computer equipment and software required to expand the infrastructure to support INSpire's growth.
INSpire believes that cash generated from operations and the net proceeds from its follow-on public offering in March 1998 will satisfy INSpire's anticipated working capital requirements for at least one year. INSpire, however, may require substantial additional funds for potential acquisitions and expansion. In the normal course of business, INSpire evaluates acquisitions of businesses, products and technologies that complement its business. INSpire has no present commitments or understandings with respect to any such transaction. INSpire, however, may acquire businesses, products or technologies in the future.
(2) Represents $500,000 of in-process research and development expenses relating to the Paragon Acquisition.
Hartford Life Insurance Company provides investment and retirement products such as variable and fixed annuities, mutual funds and retirement plan services; individual and corporate owned life insurance; and, group benefit products such as group life and group disability insurance that is directly written by the Company and is substantially ceded to its parent, Hartford Life and Accident Insurance Company (HLA).
Certain proposed legislative initiatives, which could impact Hartford Life Insurance Company are discussed in the Regulatory Matters and Contingencies section.
2000 Compared to 1999 - Revenues increased $184, or 10%, primarily due to higher fee income in the individual annuity operations. Fee income generated by individual annuities increased $175, or 16%, while related average account values grew $8.2 billion, or 10%, to $88.1 billion. The growth in average account values was due, in part, to strong sales of $10.7 billion in 2000, and the significant equity market performance in 1999, partially offset by surrenders. Although average individual annuity account values in 2000 were higher than 1999, account values at December 31, 2000 declined $1.7 billion, or 2%, as compared to December 31, 1999, as strong sales were not sufficient to offset surrenders and the impact of the retreating equity markets.
Separate account products are those for which a separate investment and liability account is maintained on behalf of the policyholder. Separate accounts reflect two categories of risk assumption: non-guaranteed separate accounts totaling $104.2 billion and $104.1 billion as of December 31, 2001 and 2000, respectively, wherein the policyholder assumes substantially all the investment risk and reward, and guaranteed separate accounts totaling $10.1 billion and $9.6 billion as of December 31, 2001 and 2000, respectively, wherein Hartford Life Insurance Company contractually guarantees either a minimum return or account value to the policyholder. The primary investment objective of the Company’s guaranteed separate account is to maximize after-tax returns consistent with acceptable risk parameters (including the management of the interest rate sensitivity of invested assets relative to that of policyholder obligations) as discussed in the Capital Market Risk Management section under “Market Risk - Interest Rate Risk”.
Long-Term Pay Out Liabilities - Products in this category are long term in nature and may contain significant actuarial (including mortality and morbidity) pricing and cash flow risks. The cash flows associated with these policy liabilities are not interest rate sensitive but do vary based on the timing and amount of benefit payments. The primary risks associated with these products are that the benefits will exceed expected actuarial pricing and/or that the actual timing of the cash flows will differ from those anticipated resulting in an investment return lower than that assumed in pricing. Product examples include structured settlement contracts, on-benefit annuities (i.e., the annuitant is currently receiving benefits thereon) and long-term disability contracts. Contract duration is generally five to ten years.
In Georgia, we began managing care for Medicaid and SCHIP members in the Atlanta and Central regions effective June 1, 2006 and Southwest region effective September 1, 2006. At December 31, 2007, our membership in Georgia was 287,900.
Our Medicaid and SCHIP HBR for the year ended December 31, 2006 was 84.3%, an increase of 2.8% over 2005. The increase in HBR for the year ended December 31, 2006 is caused primarily by increased cost trends for maternity related costs including neonatal intensive care costs, increased physician costs, and increased pharmacy costs.
The decrease in the Medicaid Managed Care G&A expense ratio in 2007 primarily reflects the overall leveraging of our expenses over higher revenues offset by the effect of our start-up costs in South Carolina and for our Texas Foster Care product, and the $12.4 million charge discussed above. The increase in the Medicaid Managed Care G&A expense ratio in 2006 primarily reflects the adoption of SFAS 123R offset by the overall leveraging of our expenses over higher revenues.
We spent $53.9 million, $50.3 million and $26.9 million in 2007, 2006 and 2005, respectively, on capital assets consisting primarily of software and hardware upgrades, and furniture, equipment and leasehold improvements associated with office and market expansions. The expenditures in 2007 included $36.7 million for computer hardware and software. We anticipate spending approximately $69 million on capital expenditures in 2008 primarily associated with system enhancements and market expansions.
Our management evaluates whether events or circumstances have occurred that may affect the estimated useful life or the recoverability of the remaining balance of goodwill and other identifiable intangible assets. If the events or circumstances indicate that the remaining balance of the intangible asset or goodwill may be permanently impaired, the potential impairment will be measured based upon the difference between the carrying amount of the intangible asset or goodwill and the fair value of such asset determined using the estimated future discounted cash flows generated from the use and ultimate disposition of the respective acquired entity. Our management must make assumptions and estimates, such as the discount factor, future utility and other internal and external factors, in determining the estimated fair values. While we believe these assumptions and estimates are appropriate, other assumptions and estimates could be applied and might produce significantly different results.
Individual life insurance revenue premiums and deposits of $735.3 million in 1999 decreased 43% from 1998 primarily due to reinsurance transactions with Great-West Life, which resulted in $565.8 million of premiums and deposits in 1998. Excluding these reinsurance transactions, individual life insurance revenue premiums and deposits increased 0.1% from 1998. Individual life insurance revenue premiums and deposits of $1.3 billion in 1998 increased 71% from 1997 primarily due to reinsurance transactions with Great-West Life, which resulted in $565.8 million of premiums and deposits in 1998 versus $155.8 million in 1997. Excluding these reinsurance transactions, individual life insurance revenue premiums and deposits increased 14% from 1997 to 1998. The Company also experienced strong BOLI sales in 1998 which more than offset reductions in COLI premiums.
The following table summarizes the status of, and changes in, Lifeco options granted to Company employees which are outstanding and the weighted-average exercise price (WAEP) for the years ended December 31. As the options granted relate to Canadian stock, the values, which are presented in U.S. dollars, will fluctuate as a result of exchange rate fluctuations:
The Registrant is pursuing a strategy to: (1) increase its identification as a provider of small commercial lines insurance and has continued to expand its product line in support of this objective; and (2) expand and diversify its insurance operations outside the State of New Jersey. The Registrant believes that both of these objectives can be attained through the acquisition of other insurance companies which present opportunities to write these product lines in different geographic areas. The Registrant expects to continue to follow this strategy.
In addition, the Registrant generally believes that the longer- term trend for future movements in interest rates is toward lower interest rates, which would positively effect the value of fixed income investments and reduce those unrealized losses and possibly convert those losses to unrealized gains, which were experienced as recently as twelve to eighteen months ago. The Registrant believes the combination of economic circumstances, which should result in slower overall economic growth, modest inflation and real long-term interest rates that remain historically high, all combines to result in lower longer-term interest rate trends. The Registrant therefore would expect the unrealized losses experienced in 1999 to be temporary.
Book value was also reduced by the dilutive effects ($.09 per share) of the issuance of 7,958 shares of common stock upon the acquisition of North East.
The Registrant continued to write new amounts of personal lines business, both PPA by Motor Club and Homeowners by Preserver. However, the growth in those respective lines of business was at a slower rate than the Commercial Lines business written by Preserver.
In 1999, the Company acquired ECS, an underwriting manager which specializes in environmental insurance coverages and risk management services. Commencing January 2000, ECS will underwrite policies on behalf of the Company's insurance and reinsurance subsidiaries.
The Company invests in derivative instruments, such as foreign currency forward contracts and futures for purposes other than trading. These derivative instruments are used for foreign currency exposure management and to obtain exposure to specific financial markets.
The primary difference between statutory net income and statutory capital and surplus for the Company's subsidiaries, as shown above, and net income and shareholders' equity presented in accordance with GAAP are deferred acquisition costs.
The following table sets forth the computation of the basic and diluted earnings per share:
Loss and Loss Adjustment Expense Reserves. Our loss and loss adjustment expense reserves are comprised of:
• lines of business where current market participants are experiencing financial distress or uncertainty; and
Restricted cash totaled $590.9 million as of December 31, 2009 compared to $248.3 million as of December 31, 2008, an increase of 137.9%. The increase in restricted cash was principally due to an increase in securities sold, not yet purchased since restricted cash balances are used to support the liability created from securities sold, not yet purchased.
As of December 31, 2009, the financial strength of Greenlight Re was rated “A- (Excellent)” with a stable outlook by A.M. Best. This rating reflects the A.M. Best’s opinion of our financial strength, operating performance and ability to meet obligations and it is not an evaluation directed toward the protection of investors or a recommendation to buy, sell or hold our Class A ordinary shares.