felanders/preprocessed huggingface dataset:
The following selected financial data, other than the selected statutory data, are derived from our consolidated financial statements which were prepared in accordance with GAAP. The data should be read in conjunction with the consolidated financial statements, related notes and other financial information included elsewhere in this report. The selected statutory data are derived from our annual statements which were prepared in accordance with statutory accounting practices as required by insurance regulatory authorities. See Note 19 of the Notes to Consolidated Financial Statements included elsewhere in this report for a discussion of the principal differences between GAAP and statutory accounting practices.
The assumptions and methodologies used in estimating and establishing the reserve for unpaid losses and loss adjustment expenses are continually reviewed and any adjustments are reflected as income or expense in the period in which the adjustment is made.
Health direct premiums written were $24.4 million for the year ended December 31, 2002, an increase of $6.4 million, or 35.7% compared to 2001. All health direct premiums written were related to our involvement with a single preferred provider organization located in Western Michigan. This coverage is provided as part of our long-term strategic relationship with the physician organization that sponsors this plan. The increase in direct premiums written was the result of rate increases implemented in 2002, of up to 25%, as well as moderate membership growth in the fourth quarter of 2002. Working with the plan sponsor, we are continuing to implement rate increases and tighten underwriting standards.
The following table sets forth summary premium, loss and expense information regarding the underwriting results of our workers’ compensation insurance operations for the years ended December 31, 2001 and 2000.
estimates were increased to $57.1 million, primarily in the markets noted above. After these adjustments, the 2001 accident year net loss and loss adjustment expense ratio is 97.8%.
APSpecialty Insurance Corporation - a stock insurance company incorporated under Michigan law (APS), formerly RML Insurance Company.
Commercial property consists of both undeveloped land and property leased to various unaffiliated companies and organizations. All commercial property is currently being marketed for sale. Residential development property is primarily located in Springfield, Illinois, and entails several developments, each targeted for a different segment of the population. These targets include a development primarily for the first time home buyer, an upscale development for existing homeowners looking for a larger home, and duplex condominiums for those who desire maintenance free exteriors and surroundings. The Company’s primary focus has been on the development and sale of lots, with an occasional home construction to help stimulate interest.
Notes payable decreased 14% in 2000 compared to 1999. During 2000, the Company repaid $2,025,000 of its debt. Included in this amount were principal payments of $ 2,000,000 on affiliated notes with UTG and a payment of $25,000 to retire the remaining principal on its nonaffiliated senior debt. At December 31, 2000, FCC had $12,839,193 in notes payable.
Fixed maturities held to maturity: U.S. Government and govt. Agencies and authorities $ 31,350,799 $ 148,229 $ (282,088) $ 31,216,940 States, municipalities and Political subdivisions 15,318,605 299,028 (45,335) 15,572,298 Collateralized mortgage Obligations 3,178,210 35,628 (3,323) 3,210,515 Public utilities 27,287,454 460,241 (220,316) 27,527,379 All other corporate bonds 44,787,895 505,860 (197,324) 45,096,431 ------------ ---------- ------------ ------------ Total $ 121,922,963 $ 1,448,986 $ (748,386) $ 122,623,563 ============ ========== ============ ============
----------------- ------------------ ------------------ ----------------- 1st 2nd 3rd 4th ------------- ------------- -------------- ------------- Premiums and policy fees, net $ 7,231,481 $ 7,111,079 $ 6,243,869 $ 5,809,648 Net investment income 3,731,737 3,796,112 3,802,812 3,738,743 Total revenues 11,071,525 10,435,696 9,637,548 9,486,827 Policy benefits including dividends 7,237,203 6,919,892 6,077,867 6,107,443 Commissions and amortization of DAC and COI 1,617,762 1,102,892 1,200,752 4,184,260 Operating expenses 2,380,342 2,192,484 2,023,484 4,301,694 Operating income (loss) (560,422) (174,918) (63,688) (5,533,949) Net income (loss) (323,149) (115,432) 653,733 (2,164,977) Basic earnings (loss) per share (5.92) (2.12) 11.99 (39.69)
Other Operating Expenses. Operating expenses were $7,686,000 or 4.1% of total revenue for the year ended December 31, 1999, as compared with $3,770,000 or 6.8% of total revenue for the initial operating period of eight and one-half months ended December 31, 1998. The decrease in the ratio of operating expenses to total revenue is due to the growth and development of our insurance operations and our revenue base. We consider the operating expense level to be low by industry standards and in line with our plan to be a low cost provider.
Our investment policy is designed to achieve above average risk adjusted total returns, maintain a high quality portfolio, maximize current income, maintain an adequate level of liquidity and match the cash flows of the portfolio to the required cash flows for the related liabilities.
In June 1999 the FASB issued Statement No. 137 "Accounting for Derivative Instruments and Hedging Activities -- Deferral of the effective date of FASB Statement No. 133", which defers the effective date of Statement No. 133 until fiscal quarters beginning after June 15, 2000.
As of December 31, 1999 and 1998 the Company had 1,497,865 and 1,415,865 options outstanding, respectively, and 3,457,490 warrants outstanding.
Capitol Bankers is domiciled in the United States and is authorized to conduct its life insurance business in 43 states of the United States. After the Company completes its acquisition of Capitol Bankers, the Company expects Capitol Bankers to focus its operations on the United States life and reinsurance markets.
As mentioned in the Overview, the property-casualty insurance industry is in a downward cycle. However, based on its operating results the Company is in a peak period as it continues to generate considerable underwriting profits. The Company's increase in premiums earned has been strictly due to volume increases resulting from new product lines, expansion of coverages and entry into new geographic territories. The Company's ability to maintain a steady combined ratio, typically 15 to 20 points below the industry average, is due to its basic philosophy of generating underwriting profits. When the industry's cycle reverses, the Company will be in an excellent position to take advantage of premium rate increases which will benefit the Company's overall profitability.
Gross premiums written during 1995 were $70,878,492, compared with $8,564,342 in 1994 and $50,346,528 in 1993.
Net assets in the Trust decreased $3,242 million, or 33%, to $6,638 million at December 31, 2011 from $9,880 million at December 31, 2010. This decrease is primarily due to a change in net unrealized investment gains on the Trust Shares, as well as (i) the impact of withdrawals by Beneficiaries from the Trust, and (ii) activity under the MetLife, Inc. Purchase and Sale Program (the “Purchase and Sale Program”). Net unrealized investment gains, which represent the difference between the estimated fair value and the cost basis of the Trust Shares, decreased $3,110 million from the prior year. A net reduction of 9,429,973 Trust Interests resulted from a decrease of 936,871 Trust Interests due to withdrawals by Beneficiaries from the Trust, a decrease of 2,273,170 Trust Interests due to escheatment of Trust Shares and a net decrease of 6,219,932 Trust Interests in connection with issuances and redemptions under the Purchase and Sale Program. Net redemptions by Beneficiaries through the Purchase and Sale Program, withdrawals by Beneficiaries from the Trust and escheatment of unclaimed cash and Trust Shares, resulted in decreases in net assets for the year ended December 31, 2011 of $87 million, $13 million and $32 million, respectively. Net investment income of $158 million, which consists of dividends received from MetLife, Inc. on its Common Stock, and net realized investment gains recognized on the sale of Trust Shares sold in the Purchase and Sale Program of $168 million, were fully allocated to Beneficiaries.
Management’s discussion and analysis of financial condition and results of operations of First SunAmerica Life Insurance Company (the “Company”) for the three years ended December 31, 2002 (“2002”), 2001 (“2001”) and 2000 (“2000”) follows. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
MORTGAGE LOANS aggregated $193.0 million at December 31, 2002 and consisted of 88 commercial first mortgage loans with an average loan balance
If a substantial portion of the Company’s bond portfolio diminished significantly in value and/or defaulted, the Company would need to liquidate other portions of its investment portfolio and/or arrange financing. Such
The following table shows certain selected quarterly metrics for 2015 and 2016:
Our sponsorship and advertising program allows carriers to purchase advertising space in specific markets in a sponsorship area on our website. In return, we are typically paid a monthly fee, which is recognized over the period that advertising is displayed, and often a performance fee based on metrics such as submitted health insurance applications, which is recognized when the earned amount are fixed and determinable and all other revenue recognition criteria has been met. We
Revenue from our Individual, Family and Small Business segment decreased $19.7 million, or 16%, for the year ended December 31, 2016 compared to the year ended December 31, 2015. The decrease in commission revenue was primarily due to 28% decrease in individual and family health insurance estimated membership for the year ended December 31, 2016 compared to the year ended December 31, 2015.
We believe that cash generated from operations and our current cash and cash equivalents will be sufficient to fund our operations for at least twelve months after the filing date of this Annual Report on Form 10-K. Our future capital requirements will depend on many factors, including our level of investment in technology marketing and advertising and customer care initiatives. In addition, our cash position could be impacted by acquisitions and investments we make to pursue our growth strategy. We currently do not have any bank debt, line of credit facilities or other borrowing arrangements. To the extent that available funds are insufficient to fund our future activities, we may need to raise additional capital through public or private equity or debt financing to the extent such funding sources are available.
The following table summarizes stock-based compensation expense by operating function for the years ended December 31, 2014, 2015 and 2016 (in thousands):
In March 2012, we entered into an agreement to lease a building in Mountain View, California, adjacent to our headquarters office. The term of the operating lease is ten years from the date the building was delivered to us in August 2013. The base rent increases annually by 3%. Future minimum payments related to this operating lease total $5.9 million over the remaining term of the lease plus our proportionate share of certain operating expenses, insurance costs and taxes for each calendar year during the lease.
Our long-lived assets consisted primarily of property and equipment, internally-developed software, goodwill and other indefinite-lived intangible assets and finite-lived intangible assets. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area as of December 31, 2015 and 2016 were as follows (in thousands):
R. Ochsenbein Gh. Robert-Tissot H. Ryffel M. D. de Sails H. Salzmann
The "New Holding shares, which are held 100% by the Swiss Reinsurance Company, are valued at Sw. frs. 10 mil­ lion. This company predominantly comprises holdings in European insurance enterprises. In the New Holding there is also a hidden surplus representing a multiple of the above balance-sheet value. For the past business year the New Holding paid a dividend, of Sw. frs. 2 million, for the first time.
Zurich, 19th October 1965 By order of the Board: M. E. Eisenring, Chairman
We have pleasure in recommending that the Accounts as at the 30th June 1965 be approved, that the Adminis­ tration of the Company be given full discharge in this respect with best thanks, and that the proposals of the Board regarding the distribution of the profit be accepted.
The Swiss Re Group In addition to the parent company and the European General Reinsurance Company of Zurich, the Swiss Re Group currently comprises the foreign branch offices, sub­ sidiary companies and advisory offices shown on page 24. These organizations make the facilities and services of our business enterprise available to our ceding friends in all corners of the world. The form and functions of our Group members in fact differ considerably from one to another and a special role is assumed by the subsidiary companies. These are purely reinsurance companies which replace the parent company in certain markets and whose share capi­ tal, apart from the qualifying shares of the Board members, is owned wholly by the Swiss Reinsurance Company. They retain an appreciable share of their premium income for own account and thereby contrast with the branch offices, which do not constitute economically independent units and whose reinsurance business appears in full in the accounts of the Swiss Reinsurance Company. In view of the relative growth of our subsidiary companies abroad, and the fact that they retain a substantial portion of their premium production for own account, it is consider­ ed appropriate to include a rather more specific, statistical picture of their economic significance for the Swiss Reinsur­ ance Company. The relevant statistics appear on pages 21-23.
The gross Life business in force rose by US $ 177 million to US $ 2,169 million. Despite a higher investment income and generally favourable mortality experience, the net profit diminished slightly because the claims incurred weighed relatively more heavily on the business retained for own account than on that retroceded. — The dividend paid remained unchanged at US $ 0.3 million.
The profitability of our individual annuities, individual life insurance and group accident and health products depends largely on the size of our in-force book of business, the adequacy of product pricing and underwriting discipline, and the efficiency of our claim and expense management.
length of time and extent to which the fair value has been less than amortized cost;
failure, if any, of the issuer of the security to make scheduled payments; and
Income from limited partnerships that are accounted for using the equity method of accounting, amounted to approximately $(5.5 million), ($66 thousand) and $(8.3 million) in 2010, 2009 and 2008, respectively. Income derived from the limited partnerships accounted for under the fair value method are classified as realized gains and losses, see below. The decreases and increases in investment income from the limited partnerships are largely reflective of the inherent volatility in this portfolio. (See Item 7, Management’s Discussion and Analysis, Asset/Liability Management). Income from fixed maturities amounted to $198.8 million, $196.4 million and $203.9 million in 2010, 2009 and 2008, respectively. Income from short-term investments amounted to approximately $.4 million, $.8 million and $9.1 million in 2010, 2009 and 2008, respectively. The decrease in income from short-term investments was due to lower short-term interest rates in 2009 and 2010 as compared to previous years.
In order to maintain consistency in our portfolio, our deferred annuity products incorporate surrender charges to discourage surrenders or withdrawals. Annuitants may not terminate or withdraw funds from their annuity contracts for a significant initial period (generally seven years) without incurring penalties in the form of surrender charges. These surrender charges generally range from 1% to 9% of the investment. Approximately 57.5%, 56.3% and 56.4% of the Insurance Company's deferred annuity contracts in force (measured by reserves) as of December 31, 2010, 2009, and 2008 were surrenderable without charge.
During the 2005-2010 period, the Company established and implemented a program of Payor Swaptions designed to lessen the impact of a 300 basis points rise in interest rates. The Company established International Swaps and Derivatives Association “ISDA” Credit Support Agreements with its various counterparties, which are six money center banks with credit ratings exceeding Aa3 by Moody’s and A+ by Standard and Poor’s. The final contract expired on June 21, 2010 with no residual value. From year-end 2009 to expiration, the change in market value was a loss of $389,970.
Management General Managers W. Leimbacher H. F. Rudolf H. B. Vischer
The higher the level of industrialization in a country, the greater is the effect of these forces of "progress". As the experience of recent years has shown, an increase in the loss potential ensues. This applies in particular to industrial risks of all kinds and for all classes of Liability insurance. The widespread measures introduced by direct insurers in order to stem the rising tide of losses incurred — for instance, the reconstruction and adaptation of tariffs, the educating of the general public, the loss-prevention campai ^s — have unfortunately proved inadequate and much remains to be done. Nevertheless, the widely varying ceding company results show that an underwriting policy which reflects the latest knowledge and awareness of insurance techniques can produce results above the national average. In the light of this observation we feel bound to pursue vigorously the process of modifying the covers which we grant, with reference to both their delimitation and their pricing. It is for this reason that we also examine new offers very closely.
In the Lije branch the gross business in force rose from Sw. frs. 15,600 million to Sw. frs. 16,100 million. The rates of return of the new business are declining. The profit, which was earned predominantly from existing business, increased once again, partly because the net cost of financ­ ing in the year under report was, on balance, zero, despite complete amortization of the new business costs. The hidden surplus of our Life portfolio therefore remained unchanged.
Fire 584,296,000 559,752,000 Hail 10,089,000 10,685,000 Burglary 31,154,000 29,646,000 Engineering, Water Damage, Plate Glass and Livestock 30,072,000 26,536,000 Marine 140,836,000 134,285,000 Accident 121,112,000 109,420,000 Sickness 118,240,000 98,488,000 Third Party Liability 517,867,000 504,130,000 Fidelity, Surety and Credit 71,792,000 70,925,000 Life 251,494,000 264,876,000
New Building Thanks to good planning and an outstanding effort by all concerned, the shell construction of the new office premises has been completed well ahead of contract date. Conse­ quently, if the interior work is finished within the sched­ uled time, the extension building should be ready for occupation by Spring 1969. It is proposed that approx. 30 % of the available office space will be let. — Our tennis courts which previously occupied this site have been re­ placed at the Sports Centre in Adliswil, opened in the spring of this year.
Underwriting Result * (inch Management Expenses) - -#52,000 - 614,000 Investment Income, Net Realized Capital Gains, and Taxes 675,000 870,000 * adjusted for changes in commission equity The experience for the gross business was better than in the previous year but the improvement was mostly to the benefit of the business retroceded to the parent company. The more favourable financial result was lessened by increased tax expenditure. — The dividend remained un­
related to specific contracts previously reported to us which we believe may not be adequately estimated by the client as of that date, or adequately covered in the application of IBNR.
The majority of the balance we have accrued as recoverable will not be due for collection until some point in the future. The amounts recoverable ultimately collected are open to uncertainty due to the ultimate ability and willingness of reinsurers to pay our claims, for reasons including insolvency and elective run-off, contractual dispute and various other reasons. In addition, because the majority of the balances
On March 2, 2015 we acquired Platinum and the transaction was accounted for under the acquisition method of accounting in accordance with FASB ASC Topic Business Combinations. Total consideration paid was allocated among acquired assets and assumed liabilities based on their fair values, including Platinum’s net deferred tax asset which totaled $12.9 million at March 2, 2015.
At December 31, 2016, our net deferred tax asset (prior to our valuation allowance) and valuation allowance were $98.9 million (2015 - $96.2 million) and $18.8 million (2015 - $17.9 million), respectively (see “Note 15. Taxation in our Notes to the Consolidated Financial Statements” for additional information). At each balance sheet date, we assess the need to establish a valuation allowance that reduces the net deferred tax asset when it is more likely than not that all, or some portion, of the deferred tax assets will not be realized. The valuation allowance assessment is performed separately in each taxable jurisdiction based on all available information including projections of future GAAP taxable income from each tax-paying component in each tax jurisdiction. Losses incurred within our U.S. tax-paying subsidiaries in the fourth quarter of 2011 were significant enough to result in a cumulative GAAP taxable loss at the U.S. tax-paying subsidiaries for the three year period ended December 31, 2011. We reassess our valuation allowance on a
Our Property segment generated underwriting income of $464.8 million million in 2015, compared to $497.6 million in 2014, a decrease of $32.8 million. In 2015, our Property segment generated a net claims and claim expense ratio of 15.9%, an underwriting expense ratio of 26.4% and a combined ratio of 42.3%, compared to 2.4%, 26.4% and 28.8%, respectively, in 2014.
Our Casualty and Specialty segment generated underwriting income of $29.5 million in 2015, compared to $19.0 million in 2014. In 2015, our Casualty and Specialty segment generated a net claims and claim expense ratio of 54.0%, an underwriting expense ratio of 41.0% and a combined ratio of 95.0%, compared to 51.5%, 43.3% and 94.8%, respectively, in 2014.
The Company reviews all fixed maturities quarterly and identifies potential problem assets which require additional monitoring.
Another aspect of operating risk relates to the Company's ability to conduct transactions electronically and to gather, process, and disseminate information and maintain data integrity and uninterrupted operations given the possibility of unexpected or unusual events. The Company is implementing a business continuation initiative to address these concerns. Considerations relative to the impact of the Year 2000 on computer operations are discussed below.
VOBA is also reviewed on an ongoing basis to determine that the unamortized portion does not exceed the expected recoverable amounts. If it is determined from emerging experience that the premium margins or gross profits are less than unamortized deferred acquisition costs, then the asset will be adjusted downward with the adjustment recorded as an expense in the current period.
Increase in benefit reserves: The decrease in benefit reserves reflects the maturity of our in-force block of business, and increase in surrenders as well as the effect of the structure of the initial life insurance policy sold by American Life, Great Plains Life and First Wyoming Life.
Bornhuetter-Ferguson Incurred Method - This reserving method combines estimated initial expected unreported loss & DCCE with the actual loss & DCCE to yield the ultimate loss & DCCE estimate. Expected unreported loss & DCCE are equal to expected total loss & DCCE times the expected unreported percentage of loss & DCCE for each policy year. The incurred loss & DCCE emergence pattern used to determine the unreported percentages in our projections is based on the selected LDF’s from the Incurred Loss & DCCE Development Method described above. The estimate of initial expected total loss & DCCE is based on the historical loss ratio for more mature accident years. While this approach reduces the independence of the Bornhuetter-Ferguson Method from the loss & DCCE development methods for older policy years, it is used primarily for estimating ultimate loss & DCCE for more recent, less mature, policy years.
We continue to offer premium discounts for wind mitigation efforts by policyholders, as required by Florida law. These discounts have had a significant effect on both written and earned premium. Wind mitigation credits are 26.0% of the pre-credit premium, or $27.3 million, as of December 31, 2010, as compared with 24.2% of the pre-credit premium, or $27.6 million, as of December 31, 2009.
Regulatory assessments recovered increased $0.2 million, or 10.9%, to $2.3 million in 2009, compared with $2.1 million in 2008.
As a result of the foregoing, the Company’s net loss for 2009 was $10.3 million, compared with $2.5 million for 2008.
In 2010 and 2009, net cash used in investing activities was $5.1 million and $82.7 million, respectively, compared with net cash provided by investment activities of $107.9 million in 2008. Our available for sale investment portfolio is highly liquid as it consists entirely of readily marketable securities. In 2010, investing activities generated $149.0 million and used $154.1 million.
Insurance holding company regulations govern the amount that non-insurance company subsidiaries (Assurance MGA, Superior and any other affiliate) may charge any of the insurance companies for service (e.g., management fees and commissions).
One of our directors is a partner at a law firm that handles some of the Company’s claims litigation. Fees paid to this law firm amounted to approximately $40,000, $90,000 and $145,000 in 2010, 2009 and 2008, respectively, and is included in LAE.
Effective January 26, 2011, Federated National merged with and into American Vehicle, and the resulting entity changed its name to “Federated National Insurance Company”. See "Recent Developments - Consent Order”.
The increase in Lloyd's gross written premiums for 2000 compared to the 1999 fiscal year primarily arose from new information concerning premium estimates for the 1999 and 1998 underwriting years of account. All of the Lloyd's business underwritten by the Company prior to the combination with Trenwick has not been renewed as of December 31, 2000 and has been classified as runoff. Trenwick continues to be involved in Lloyd's business through other subsidiaries.
The Company's operating loss for the 1999 fiscal year was $6.8 million compared to operating income of $59.4 million for the 1998 fiscal year. The decrease in operating income of $66.2 million resulted in part from net losses from five catastrophic events aggregating $25.6 million in the 1999 fiscal year compared to an absence of major catastrophes in fiscal year 1998. In addition, in fiscal year 1999, the Company recorded prior year reserve development of $48.6 million. For a further discussion of the Company's net losses and reserve development in fiscal year 1999, see "Claims and Claims Expenses".
Deposits decreased from $32.7 million as at December 31, 1999 to $27.4 million as at December 31, 2000. This was due to a reduction in the deposit asset relating to the Company's multi year reinsurance contract following a reduction in coverage.
LaSalle Re Corporate Capital Ltd. is also subject to U.K. corporation tax, with the assessment made at the end of thirty six months. Deferred tax assets and liabilities resulting from the Company's support of syndicates through LaSalle Re Corporate Capital are currently estimated to be insignificant, but are subject to change as the results of the syndicates are uncertain.
FASCorp, a subsidiary of the Company formed in 1993, provides comprehensive administrative and recordkeeping services for financial institutions and employer-sponsored retirement plans. FASCorp administered records for more than 7,700 groups in 1996 versus 7,000 in 1995, representing approximately 800,000 participants (700,000 in 1995).
The Company's Consolidated Financial Statements for the Years Ended December 31, 1996, 1995, and 1994 and Independent Auditors' Report, and certain supplementary financial data, are set out below.
Cash 125,182 90,939 Reinsurance receivable 196,958 333,924 Deferred policy acquisition costs 282,780 278,526 Investment income due and accrued 198,441 211,922 Other assets
18,821 16,014 Maturities and redemptions 516,838 655,993 1,034,324 Available-for-sale Sales 3,569,608 4,211,649 1,753,445 Maturities and redemptions 803,369 253,747 141,299 Mortgage loans 235,907 260,960 291,102 Real estate 2,607 4,401 29,868 Common stock 1,888
Management's judgment is based on past loss experience, current and projected economic conditions, and extensive situational analysis of each individual loan.
Separate Account - Separate account assets and related liabilities are carried at fair value. The Company's separate accounts invest in shares of Maxim Series Fund, Inc., a diversified, open-end management investment company which is an affiliate of the Company, shares of other external mutual funds, or government or corporate bonds.
December 31, 1996: Life insurance in force: Individual $23,409,823 $5,246,079 $3,482,118 $21,645,862 16.1% Group 47,682,237
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Carrying Value
The amortized cost and estimated fair value of fixed maturity investments at December 31, 1996, by projected maturity, are shown below. Actual maturities will likely differ from these projections because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Interest Rate Floor $100,000 4.5% [LIBOR] Interest Rate Cap 100,000 11.0% [CMT] Interest Rate Swaps 165,000 6.203% to 9.35% 01/98 to 2/2002 Foreign Currency Exchange Contracts 66,650 N/A 10/96 to 09/98
The Company received $472 of contributed capital in the form of deferred tax assets from the Parent Corporation during 1994 in connection with reinsurance transactions with the Parent.
We had net income of approximately $958,000 for the year ended December 31, 2015 compared to net income of approximately $1,341,000 for the year ended December 31, 2014. The decrease in net income is primarily the result of higher insurance expense of approximately $1,751,000, in 2015, offset by an increase in gross margin of approximately $1,337,000. Our ratio of insurance expense to total premium revenue (“insurance expense ratio”) increased to 20.4% in 2015 from 19.9% in 2014.
Net income was approximately $958,000 and $1,341,000 for 2015 and 2014, respectively. This decrease in net income is primarily the result of an increase in insurance expense of approximately $1,751,000 in 2015. Our ratio of insurance expense to total premium revenue (“insurance expense ratio”) increased to 20.4% in 2015 from 19.9% in 2014.
Our effective tax rate for 2015 was 45.5% compared to the 39.8% effective tax rate in 2014. The increase in the effective tax rate for 2015 compared to 2014 is the result of the increase in the 2015 federal premium tax assessment that is not deductible for federal tax purposes. Also, our 2015 and 2014 effective tax rates were higher than the federal statutory rate primarily due to the impact of permanent tax differences related to meal and entertainment expenses and legal fees. See Note 6 to the consolidated financial statements included in Item 8 - Financial Statements and Supplementary Data for a complete reconciliation of the federal statutory rate to the effective tax rate.
The following table shows membership totals and revenues and expenses for our four business segments for the years ended December 31, 2014 and 2013 (dollars in thousands):
We have an annually renewable agreement with a commercial bank for a $500,000 working capital line of credit. Interest is payable at a variable rate of LIBOR plus 2.50%. The Company did not have any interest expense for the line of credit in 2015, 2014 or 2013. As of December 31, 2015 and 2014, there was no amount outstanding on this line of credit.
The Company’s providers, who are also shareholders, submitted claims of approximately $38,248,000, $36,902,000, and $37,566,000, in 2015, 2014, and 2013, respectively. The Company had claims payable liability to related party providers of approximately $1,631,000 and $1,547,000 at December 31, 2015 and 2014, respectively.
Since July 1981 the Company's executive offices have been located at 475 Metro Place North, Dublin, Ohio. The four-story office building had been owned by ALIC and consisted of approximately 80,000 square feet of office space.
Table I on page 14 indicates changes in several key operating ratios for the Company. The ratios in the table are consistent with the Company's premium volume and product mix.
The Company has also experienced decreases in net investment income, excluding realized gains, since 1993. The decrease in 1994 was primarily attributable to a decrease in invested assets due to the run off of discontinued lines of business. The 1995 decrease was caused by the level of prevailing interest rates. Proceeds from the Company's maturing investments were not able to be reinvested at rates comparable to those on the maturing securities. The major portion of the decrease in 1996 is attributable to a reinsurance treaty with an unaffiliated party. Under the terms of this treaty, investment income credits related to funds held are categorized as reinsurance expense recovery as opposed to investment income.
During 1996, 1995 and 1994, the Company incurred ESOP contribution expenses of $187,000, $198,000 and $178,000, respectively.
A total of 3,984,260 shares were subscribed for under the Rights Offering. Total consideration of $8,964,585 consisted of $5,702,805 in Subordinated Notes and $3,261,780 in cash.
Equity securities: Gross realized gains 307 106 148 Gross realized losses - - -
The amortized cost and estimated fair value of fixed maturity securities, all of which were available for sale, at December 31, 1996, by contractual maturity, are summarized as follows:
Direct Business Ceded--Other Quota Share: The Company reinsures a portion of its group life and health care insurance with several unaffiliated companies. The effect of this reinsurance is to transfer the risk, the underwriting income or loss, and the investment income related to the premiums ceded. In 1993, the Company entered into reinsurance agreements with unaffiliated reinsurers related to certain additional product lines. The effect of such reinsurance arrangements is to transfer 100% of the related risk to the reinsurers. Premiums ceded associated with these agreements and included in the accompanying consolidated statements of operations amounted to $496,000, $633,000 and $980,000 in 1996, 1995 and 1994, respectively.
Total income tax expense (benefit) differed from the amount computed by applying the statutory federal income tax rate to income (loss) before taxes as follows:
Members of CIHC held a 45% interest in RGL prior to the acquisition by ACCEL.
The amount of rent charged to operations was $208,000, $16,800 and $28,700 in 1996, 1995 and 1994, respectively.
The amortization of DAC decreased $8.2 million, or 28%, from $29.8 million to $21.6 million. The decreased level of amortization was due to a decline in the level of first-year costs deferred due to lower agent compensation levels and improved persistency on the in-force Medicare supplement business.
Total revenue increased $6.7 million, or 64%, from $10.4 million to $17.1 million. The increase in revenues was primarily due to expanded sales and the acquisition of ACMG, Inc. in the third quarter of 1995.
Amortization of DAC. Amortization of DAC decreased $30.9 million, or 31%, from $100.1 million to $69.2 million. The decrease was primarily due to an adjustment in 1994 to the DAC asset related to certain group and individual medical business, a lower level of group major medical new business and improved persistency on Medicare supplement business.
The Company's Credit Facility provides a line of credit arrangement for short-term borrowings with three banks amounting to $17.0 million through April 1996, of which $3.5 million was used at December 31, 1995. In January 1996, the amount available under the Credit Facility was increased to $27.0 million. The line of credit arrangement can be terminated, in accordance with the agreement, at the Company's option. The Company expects that the Credit Facility will be extended at its maturity.
The following is a discussion and analysis of our results of operations for the years ended December 31, 2018 and 2017, and our financial condition as of December 31, 2018 and 2017. This discussion and analysis should be read in conjunction with the audited consolidated financial statements and related notes thereto included elsewhere in this report.
The table that follows details our estimated net impact from single event losses as of January 1, 2019 for selected zones at specified return periods. It is important to note that each catastrophe model we use contains its own assumptions as to the frequency and severity of loss events, and results may vary significantly from model to model.
The following table summarizes the components of our consolidated loss and LAE incurred and our loss and LAE ratios for the years ended December 31, 2018 and 2017:
While the approach we use in reserving for large events is applied with consistency, at any point in time the specific reserving assumptions may vary among contracts. The assumptions for a specific contract may depend upon the class of business, historical reporting patterns of the cedant (if any), whether or not the cedant provides an IBNR estimate, how much of the loss has been paid, the number of underlying claims still open and other factors. For example, the expected loss development for a contract with one percent of its claims still open would likely be less than for a contract with 50% of its claims still open.
The following selected financial data has been summarized from the Company's consolidated financial statements and are qualified in their entirety by reference to, and should be read in conjunction with, such consolidated financial statements and Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this Report:
The New York State Department of Taxation and Finance (the "Department of Taxation and Finance") is in the process of auditing the Group's New York Franchise tax returns for the years 1992 through 1996 and has asserted that the Company and Empire should have filed their returns on a combined basis, rather than on a separate company basis. If the Company and Empire were required to file on a combined basis, the Group would be required to pay an additional franchise tax and related surcharge tax of approximately $5.7 million, plus interest, for the periods in question. The Group has informed the Department of Taxation and Finance that it does not agree with its position on this matter, and is in the process of submitting additional information. The Company does not believe it is probable that it will sustain a loss as a result of this assertion and therefore has not made any loss provision in its financial statements. If the Group does not prevail in this matter, the Company's share of this additional tax would be approximately $1.7 million, plus interest, pursuant to the terms of the pooling agreement.
YEARS ENDED DECEMBER 31, ------------------------ 2002 2001 2000 ---- ---- ----
Financial Statements and supplementary data required by this Item 8 are set forth at the pages indicated in Item 15(a) below.
Company’s former workers compensation business and costs associated with the closedown of the Company’s College Fund Life Division operations.
premium information was available to refine the estimation calculation. Substantially all of the effect of this change in estimating the liability for future ROP benefits was attributable to the refinement of adding the assumption of a 10% average annual increase in the level of future gross premiums for attained-age rated health insurance products.
Includes the incremental costs associated with the pending acquisition of the Company by a group of private equity investors.
Effective November 1, 2004, the Company terminated a $30.0 million bank credit facility that was otherwise scheduled to mature in January 2005. At the time the facility was terminated, the Company had no borrowings outstanding under the facility.
At its April 28, 2004 regular quarterly meeting, the UICI Board of Directors reconfirmed the Company’s 1998 share repurchase program, in which it initially authorized the repurchase of up to 4,500,000 shares of UICI common stock from time to time in open market or private transactions, and granted management authority to repurchase up to an additional 1,000,000 shares. Through December 31, 2005, the Company had purchased under the program an aggregate of 4,881,900 shares (at an aggregate cost of $71.2 million; average cost per share of $14.58), of which 310,900 shares (at an aggregate cost of $7.0 million; average cost per share of $22.66) were purchased during 2005. The Company now has remaining authority pursuant to the program as reauthorized to repurchase up to an additional 618,100 shares. Following execution on September 15, 2005, of a definitive agreement contemplating the acquisition of the Company in a cash merger by a group of private equity firms, the Company will not repurchase any additional shares of common stock pursuant to this program.
Monthly Square Current Division -- Location Rent Footage Lease Expires Clark/Bardes Consulting -- Compensation Resource Group -- Dallas, Texas..................... $48,294 35,619 April 2001 Dallas, Texas..................... 1,913 3,507 August 2004 Bethesda, Maryland................ 14,295 8,519 July 2007 Phoenix, Arizona.................. 3,427 2,056 March 2004 Los Angeles, California........... 55,970 37,313 June 2010 Cleveland, Ohio................... 5,578 3,049 July 2002 Atlanta, Georgia.................. 4,680 2,399 November Chicago, Illinois................. 5,193 4,734 June 2004 New York, New York................ 10,150 2,900 August 2001 Banking Practice-- Bloomington, Minnesota............ 48,861 32,897 September Dallas, Texas..................... 11,088 6,034 February Regional Offices.................. 8,949 2,903 Various Healthcare Group -- Minneapolis, 109,790 56,231 December Minnesota........................... 2003 Pearl Meyer & Partners -- New York, 29,271 19,000 May 2010 New York............................ Clark/Bardes Holdings -- North Barrington, 22,118 11,085 July 2007 Illinois.......................... Clark/Bardes Partners-- Stamford, Connecticut....................... 11,337 3,868 September
Our net income for 2000 of $11.4 million and $1.05 per diluted common share was the best in our history representing a 29.6% increase over comparable net income of $8.8 million and a 10.5% improvement over diluted earnings per share of $.95 for the year 1999.
1) Our sellers want a majority of the purchase price in cash, thus requiring a large pool of funds from equity or debt offerings, or both.
The acquisition has been accounted for as a purchase and goodwill of $23.5 million will be amortized over a twenty-year period.
Net interest expense was $4.7 million in 2000, a 46.9% increase from the $3.2 million net expense in 1999. Although we enjoyed a favorable $17.9 million of cash flow from operations and received $25.1 million proceeds from the sale of our stock in a private placement, our average net borrowings increased $21.8 million in 2000, which at today's interest rates, accounts for the full amount of the interest expense increase.
Our primary market risk exposure is to changes in interest rates related to of our line of credit. At December 31, 2000, we had total outstanding indebtedness of $64.6 million, or approximately 36.5% of total market capitalization. Our interest rate risk objective is to limit the impact of interest rate fluctuations on earnings and cash flows and to lower overall borrowing costs. To achieve this objective, we manage our exposure to fluctuations in interest rates for borrowings through the use of interest rate swaps to mitigate interest rate risk and to effectively lock the interest rate on a portion of our variable debt.
In addition, we have adopted a stockholder rights plan that could further discourage attempts to acquire control of us. These provisions of our certificate of incorporation, bylaws and Delaware law could discourage tender offers or other transactions that might otherwise result in your receiving a premium over the market price for our common stock.
The Company became operational during the fiscal year ended January 31, 1988.
Information as to earnings per share is not provided inasmuch as the results for each series of stock will vary with the underwriting experience attributable to each Subsidiary Capital Account established with respect to that series. See Note 2(f) to the financial statements.
The Company had unearned premium reserves of $57,468,269 as of December 31,
law, the Company has the right to reduce the business related to a Subsidiary
had been retroceded to the Company and the elimination of certain deductibles
$1,227,816 compared to $2,700,242 and $2,522,712 for the fiscal years ended
15, 1993 and requires the Company to classify its securities holdings into three
LIABILITIES Unearned premiums 57,468,269 40,413,058 Loss reserves 4 2,660,270 1,910,030 Accrued liabilities 118,102 107,181 ___________ ___________
Debt securities issued by supra-nationals 13,565,211 - (595,306) 12,969,905 ____________ _______ ___________ __________
The cost and estimated fair value of debt securities at December 31, 1994, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.