felanders/preprocessed huggingface dataset:
Results: — Non-Life reinsurance P 8 - 12 — Life reassurance 21
The reinsurance of Atomic plants shows a constant growth as new nuclear power stations are brought into operation.
For the year under report, the account for depreciation, fluctuations in stock exchange and foreign currency rates once again closed virtually at the break-even point. The depreciation on investments was fully compensated by realized capital gains, especially those from previously depreciated fixed-interest investments which reached ma­ turity.
The terms of office of Mr. Max E. Eisenring, Mr. Werner Ahegg and Mr. Marcel Odier have now expired by ro­ tation. The gentlemen stand for re-election and are im­ mediately eligible under the Articles of Association.
Audit In accordance with Art. Iii of the Swiss Code of Obli­ gations the present Annual Statement has been examined and found correct by the independent auditor, Mr. A. Ehr-
The Swiss Re Group, in the narrower sense, comprises, apart from the Swiss Re, Zurich and its rating, claims and advisory offices abroad, the following companies: SwissRe Holding Ltd., Zurich and its subsidiary companies (cf. pages 23-28): Harth American Reinsurance Corporation, Hew York Harth American Reassurance Company, Hew York Canadian Reinsurance Company, Toronto Canadian Reassurance Company, Toronto Swiss-South African Reinsurance Co. Ltd., Johannesburg Australian Reinsurance Company Ltd., Melbourne Swiss Reinsurance Company (U. K.) Ltd., London European General Reinsurance Company of Zurich
There is significant uncertainty as to whether the Company will be able to meet its cash flow needs. As noted above, the Company has deferred interest payments on its Trust Preferred Securities and additionally, the Company has disputed or denied payment of certain other liabilities and commitments. While based upon current expectations AICI would likely have the ability to meet its cash flow needs through December 31, 2003, there can be no assurances considering the significant uncertainties that exist.
At December 31, 2002 and 2001 the Company had $114.7 million and $91.0 million,
Administrative fees increased $1.9 million (16%) during 2003 compared to 2002 primarily due to increased issuing and maintenance fees. Other income increased $2.0 million during 2003 compared to 2002. This increase was primarily due to a performance bonus earned on sales of fixed annuity and life products under the terms of one of the Company's insurance carrier partner contracts. The Company and the insurance carrier agreed to terminate the bonus program effective July 1, 2003.
Legacy Marketing's revenue decreased $5.6 million (10%) primarily due to decreased marketing allowances and commission income. Marketing allowances and commission revenue, combined, decreased $5.9 million (14%) due to a decrease in sales of fixed annuity and life policies. The sales decrease was primarily due to a shift in the marketplace toward more traditional fixed income-based annuities. Administrative fees increased $307,000 (3%) primarily due to an increase in the number of policies administered year over year, partially offset by a lower number of policies issued in 2002.
Goodwill and Other Intangible assets were acquired in the Company's purchase of Values Financial Network, Inc. in 2000 and prospectdigital, LLC in 2002. Prior to January 1, 2002, goodwill was amortized on a straight-line basis over 10 years, which is its estimated useful life. Pursuant to Statement of Financial Accounting
The Company sponsors a qualified defined contribution 401(k) plan, which is available to all employees. The 401(k) plan allows employees to defer, on a pre-tax basis, up to 15% of their annual compensation as contributions to the 401(k) plan, subject to a maximum of $12,000. The Company matches 50% of each employee's contributions, up to 6% of their annual compensation, subject to a maximum of $6,000. The Company's matching contributions were $405,000, $434,000, and $439,000 for the years ended December 31, 2003, 2002, and 2001.
Total Weighted average Shares Exercise Price ------ -------------- Outstanding at December 31, 2000 13,376,000 $ 1.28 Granted 2,976,000 $ 1.62 Exercised -- $ -- Forfeited (788,000) $ 1.25
November 1982 This report is also published in German, French and Spanish.
Donations 18 |Key Figures of Group Companies in 1981 441 Organs of the Company 19 InBusiness Years 1974/75-1981
Tfie other pictures in this year's Annual Report show the Swiss Re's activity in the special lines of Aviation and Marine reinsurance {pages 11 and 14). in addition, subsidiary companies in Canada (page 38) and the United Kingdom (page 39) are presented.
Franz Luterbacher Zumikon, Chairman of the Board of Directors of BBC, Brown, Boveri & Co., Ltd., Baden 1985
Executive Committee and Group Management Secretariat of the Board of Directors, Executive Committee and Group Management E. A. Kubli, General Secretary
The scope of business and result of Life reinsurance have developed gratifyingly. It cannot, however, be over­ looked that in this sector competition is becoming in­ creasingly more intense. This applies in particular to the North American market where there is a growing ten­ dency to base new tariffs on unusually optimisfic as­ sumptions.
1 Modern aircraft have a capacity of 300 to 500 passengers and hull values up to Sw. frs. 200 million (example of a catasfrophe risk)
2 Cockpit of a DC-10 passenger aircraft 3 The airplane as a daily means of transport 4 Modern airports are typical accumulation and catastrophe risks
The Marine section of the Technical and Special Lines department handles the worldwide reinsurance of cargo, hull risks and drilling rigs.
Net Profit 80,156,062 76,155,861 * Net amounts, i.e. after deduction of ttie shares due to retrocessionaires
Share capital (400,000 registered shares at Sw. frs. 250 - nom.) ( 44,000 bearer shares at Sw. frs. 250.- nom.)
Depreciation outside the sector of investments led to a debit of Sw. frs. 10.4 million (previous year, Sw. frs. 12.2 million). This amount is largely due to the recent increase of the reserve for outstanding balances in foreign cur­ rencies and to renovations and rebuilding costs for own business property.
MAiW • :4y. 'AY AP" Y/jp/-w04^/^Ayy0m:: -•rf p: : •.. I ••|'.+'.". 1 ' '• '' ^*1 •• I" y i'^ , .•, '.'-f i. • •.*
The gross premiums of the General Surety & Guarantee Co. Limited, Wiimsiow, a British insurance company specializing in Surety business, totalled £ 2.3 million in the year under report. The company showed a profit of £ 26,000 (previous year, £ 65,000).
1, 2 Toronto, head office of the Canadian Reassurance Company and the Canadian Reinsurance Company
lower and the South African rand, pound sterling and the German mark considerably lower (cf. table on page 22).
United States North American Reassurance Company 100 East 46th Street, New York, N, Y. 10017 with branch offices in Chicago, Dallas and Lakewood (Colorado) Swiss-Am Reassurance Company 100 East 46th Street, New York, N.Y. 10017 SwissRe Life Insurance Company 100 East 46th Street, New York, N.Y. 10017 North American Reinsurance Corporation 100 East 46th Street, New York, N.Y. 10017 with branch offices in Atlanta, Boston, Chicago, Dallas, Denver, Houston, Kansas City, Los Angeles, Philadelphia, San Francisco and Seattle
Claims expense on capitated contracts increased approximately $177,000, or 0.6%, for the year ended December 31, 2008 as compared to the year ended December 31, 2007. Claims expense as a percentage of capitated revenues increased from 83.5% for the year ended December 31, 2007 to 89.4% for the year ended December 31, 2008 due to a high medical loss ratio experienced with our major Indiana client. Other healthcare operating expenses, which are incurred to service both capitated and non-capitated contracts, decreased approximately $471,000, or 7.3%, due to staff decreases in response to the loss of revenues in Indiana and Pennsylvania. As a percentage of total revenue, other healthcare operating expenses decreased from 17.3% for the year ended December 31, 2007 to 17.1% for the year ended December 31, 2008.
Capitated contract revenues increased 4.5%, or approximately $1.0 million, to $23.0 million for the year ended May 31, 2006 compared to $22.0 million for the year ended May 31, 2005. This increase in revenue is primarily attributable to additional business from existing clients in Indiana and new customers in Pennsylvania and Maryland, but was partially offset by the termination of our Connecticut contract, the loss of which accounted for $1.9 million less revenue in fiscal 2006 than in fiscal 2005. Non-capitated revenue declined 62.2%, or $1.5 million, to $0.9 million for the fiscal year ended May 31, 2006, compared to $2.4 million for the fiscal year ended May 31, 2005. The decrease is primarily attributable to the loss of two management services only customers in Michigan and an ASO client in Texas.
The following table provides a reconciliation of the beginning and ending balance of accrued claims payable for the years ended December 31, 2008 and 2007 and the seven months ended December 31, 2006:
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements,” (“SFAS 157”) which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. We have adopted this statement and incorporated its requirements into our disclosures and periodic tests of impairment of carrying values.
Reconciliation between the provision for income tax and the amount computed by applying the statutory Federal income tax rate (34%) to loss before income tax is as follows (amounts in thousands):
After consideration of all the evidence, both positive and negative, management has determined that a valuation allowance at December 31, 2008 and 2007 was necessary to fully offset the deferred tax assets based on the likelihood of future realization.
(h) Reflects the issuance of 1,675 shares of Series B-1 Convertible Preferred Stock at $50 par value, and 2,665 shares of Series B-2 Convertible Preferred Stock at $50 par value to acquire Core.
Specialty lines increased by $1,249,000 as follows: (i) an increase in earned premium $418,000; (ii) a deficiency in reserves for prior years of $2,639,000 for 1997 versus a redundancy of $498,000 for 1996; and (iii) an increase in the current year loss ratio $3,968,000. The increase in the loss ratio for specialty lines was primarily a result of poor claims experience and severity of loss with certain large claims. Personal lines decreased by $579,000 as follows: (i) an increase in earned premium of $471,000; (ii) a redundancy in reserves for prior years of $140,000 for 1997 versus a redundancy of $23,000 for 1996; and (iii) a decrease in the current year loss ratio $1,167,000. The decrease in the loss ratio for the personal lines division reflected more favorable weather conditions in 1997 versus 1996, which included the claims associated with Hurricane Fran. Runoff lines decreased by $3,786,000 as a result of a redundancy in reserves for prior years of $975,000 in 1997 versus a redundancy of $4,761,000 in 1996.
All of the lines of business the Company currently writes are subject to market competition. The actions the Company has taken in each of its business lines to improve underwriting profitability are expected to produce better results in the future, but there can be no guarantee of the ultimate success of these strategies. The Company continues to try and identify business opportunities in its core business lines and to implement underwriting strategies which are designed to have a positive impact on the Company's financial results. Given the level of competition and uncertainties inherent in the insurance underwriting process, it is difficult to predict the ultimate result of such strategies.
GENERAL AND ADMINISTRATIVE EXPENSES (UNDERWRITING OPERATIONS). General and administrative expenses attributable to underwriting operations increased by $3,224,000 in 1997. During 1997, the Company incurred costs of $680,000 associated with the sale of its operating subsidiaries. The Company wrote off premium and deductible receivables amounting to $343,000 when it was determined that they were uncollectible. In addition, the Company recorded nonrecurring costs of $406,000 associated with the implementation of its premiums and claims system. The remaining increase is primarily due to the absence of offsetting, nonrecurring other income items amounting to $1,795,000, which were recorded in 1996.
Messrs. F. Niquille and H. Wüst, Managers, Mr. Ch. Burnens, Deputy Manager, and Mr. K. Schneider, Assistant Manager, retired at the end of 1959. These gentlemen have devoted their best energies to the interests of the Company and we should like to thank them for their long and valuable collaboration.
Management's Discussion and Analysis of Financial - - ------- ------------------------------------------------- Condition and Results of Operations. ------------------------------------
Consolidated Overview For the years ended December 31, 1997 1996 1995 - - ------------------------------------------------------------------------------ Revenues: Insurance premiums $ 491.2 $ 448.6 $ 389.1 Engineering services 61.3 55.8 49.9 Net investment income 36.8 32.3 28.9 Realized investment gains 14.1 12.1 2.8 ------- --------- -------- Total Revenues $ 603.4 $ 548.8 $ 470.7 Income from continuing operations $ 66.3 $ 54.6 $ 52.7
unusually severe weather conditions in our domestic insurance operations, which caused our underwriting gain to drop by $12.4 million, were largely offset by increased income from investment operations of $12.7 million. Net income in 1996 declined 14.7 percent from 1995 as Radian's contribution to pre-tax earnings declined by approximately $15.7 million during 1996. Revenue shortfalls caused the venture to reduce its workforce during the year by about 10 percent, resulting in a charge of $3.5 million.
Claims and adjustment expenses 217.9 204.4 154.9 Underwriting, acquisition and other expenses 233.5 222.4 200.0 ----------------------------------
that the reduction in HSBIIC's interest in IRI, as a result of the sale on January 6, 1998, may dampen growth in net insurance premiums.
Consolidated Statements of Cash Flows - - ------------------------------------- for the years ended December 31, (in millions)
APB No. 15 methodology (as previously reported) N/A $ 2.65 $ 3.07 SFAS No. 128 methodology Basic EPS $ 3.32 $ 2.65 $ 3.07 Diluted EPS $ 3.29 $ 2.65 $ 3.07 - - --------------------------------------------------------------
Export sales from HSB's domestic operations are minimal due to the existence of the Company's foreign subsidiaries which are responsible for virtually all of the Company's foreign sales.
Net gains (losses) 0.2 1.8 (0.8) Redeemable preferred stocks: Gains 0.4 0.3 0.7 Losses (0.3) (1.5) (0.6) ------------------------
On November 28, 1988, the Board of Directors created and authorized 250,000 shares of Series A Junior Participating Preferred Stock at no par value and declared a dividend distribution of one right for each outstanding share of common stock to shareholders of record on December 8, 1988.
We actively market our insurance in 30 states and the District of Columbia through independent agencies, as well as through our wholly owned insurance agency subsidiary. We are also licensed in an additional 17 states and the U.S. Virgin Islands.
Schedules I, III, IV and V are not applicable and have been omitted.
Shareholders approved an amended Certificate of Formation for the Company on June 15, 2010 under which the Company is authorized to issue 10,000,000 shares of preferred stock, par value $0.01 per share. At December 31, 2013, there were no shares of preferred stock outstanding.
transaction affecting the common stock. At December 31, 2013, there were 38,415 shares of common stock available for future awards under the 2010 Restricted Stock Plan.
Earnings (loss) per common share: Continuing operations $1.39 $1.45 $1.05 $1.41 ($0.50) Discontinued operations - (0.08) (0.07) (0.27) (0.94) Extraordinary items (0.14) - (0.05) (0.10) - Changes in accounting principles - - (0.01) - (0.17) Net income (loss) $1.25 $1.37 $0.92 $1.04 ($1.61)
Approximately 90% of AAG's MBSs are rated "AAA" with substantially all being investment grade quality. The majority are collateralized by GNMA, FNMA and FHLMC single-family residential pass-through certificates. The market in which these securities trade is highly liquid. Aside from interest rate risk, AAG does not believe a material risk (relative to earnings or liquidity) is inherent in holding such investments.
Year ended December 31, 1996 1995 1994 Revenues: Net investment income $467.7 $405.5 $371.8 Realized gains (losses) on sales of investments 1.2 15.7 (0.1) Life, accident and health premiums 103.6 15.7 2.2 Equity in net earnings (loss) of affiliate (2.2) 0.1 (2.8) Other income 7.0 2.6 1.6 577.3 439.6 372.7 Costs and Expenses: Annuity benefits 271.8 254.7 241.9 Life, accident and health benefits 92.3 13.2 1.5 Amortization of insurance acquisition costs 34.1 12.7 7.1 Interest and other debt expenses 14.3 17.6 21.4 Preferred dividend requirement of subsidiary trust 1.0 - - Other expenses 85.3 50.7 37.6 498.8 348.9 309.5 Income from continuing operations before income taxes 78.5 90.7 63.2 Provision for income taxes 17.4 32.0 22.3
Net increase (decrease) in cash and short-term investments (85.3) 106.7 (9.3)
Income Taxes AAG, Great American Life Insurance Company ("GALIC") and all other material 80%-owned U.S. non-life subsidiaries are consolidated with AFC for federal income tax purposes. AAG's other life insurance subsidiaries will likely be required to file separate federal income tax returns through the sixth year from their acquisition or formation.
Held to Maturity Amortized Market Gross Unrealized Cost Value Gains Losses U. S. Government and government agencies and authorities $ - $ - $ - $ - Public utilities 383.9 383.5 5.2 (5.6) Mortgage-backed securities 679.6 688.9 14.8 (5.5) All other corporate 1,432.2 1,452.2 27.6 (7.6) $2,495.7 $2,524.6 $47.6 ($18.7)
In a private offering in March 1997, a wholly-owned subsidiary trust of AAG Holding issued $75 million of 8-7/8% preferred securities similar to the TOPrS issued in November 1996.
___________ (a) Includes unrealized gains of $61.8 million and $89.3 million in 1996 and 1995, respectively, and includes advances to subsidiaries.
Net premiums written for standard property-casualty lines decreased by $22.4 million, or 9.8%, to $205.4 million for the year ended December 31, 2000, from $227.8 million for the year ended December 31, 1999. Net premiums earned for standard property-casualty lines decreased $35.3 million, or 14.2% to $ 212.8 million for the year ended December 31, 2000, from $248.1 million for the year ended December 31, 1999. The decrease in net premiums written and net premiums earned are primarily attributable to the decrease in new policy applications that occurred when we were temporarily downgraded by A.M. Best to a B (good) and to our strategy of only maintaining relationships with our core agencies, partially offset by the continued rollover of the Property Plus homeowners policies acquired in 1998. In February 2000, A.M. Best upgraded Vesta to B+ (secure).
2000 1999 -------- -------- Statutory Capital and Surplus: Vesta Fire Insurance Corporation $275,270 $271,986 American Founders Life $ 32,995 --
exceed the greater of (i) 10% of statutory surplus as of the end of the preceding year or (ii) the statutory net income for the preceding year, with larger dividends payable only upon prior regulatory approval. Certain other extraordinary transactions between an insurance company and its affiliates, including sales, loans or investments which in any 180 day period involve at least 3% of its admitted assets or 25% of its statutory capital and surplus, also are subject to prior approval by the Department of Insurance.
We have purchased directors' and officers' liability insurance ("D&O insurance") for the purposes of covering among other things the costs incurred in connection with these indemnification obligations. For the period in which most of the claims against Vesta and certain of its directors and officers were asserted, we had in place a primary D&O insurance policy providing $25 million in coverage and an excess D&O insurance policy for an additional $25 million in coverage. The issuer of the primary D&O insurance policy, Cincinnati, has attempted to avoid coverage as discussed above, and we are vigorously resisting its efforts to do so.
Vesta has a Shareholders' Rights Plan that provides for the payment of a dividend of one preferred stock purchase right to be attached for each outstanding share of common stock. Each Right, if and when it becomes exercisable, will entitle the registered holder to purchase from Vesta one one- hundreth (1/100) of a share of Vesta's Series B Junior participating Preferred Stock at a price of $30.00 per one one-hundreth of a share. The Rights will be excercisable only if a person or group acquires a beneficial ownership of 10% or more of the common stock. The Rights entitle the holder to purchase one one- hundreth of a share of a new series of preferred stock at an exercisable price of $30.00 and will expire on June 15, 2010.
REVENUES Net premiums earned $ 502,995 $ -- Net investment income 2,901,306 -- Net realized gains 885,422 -- Total revenues 4,289,723 --
o That the authorized share capital of the Company be increased from $412,000 to $3,412,000 by the creation of an additional 300,000,000 shares of a par value of $0.01 per share;
o That the number of Directors of the Company be increased from 13 to 15 by the creation of two new vacancies and that the said two vacancies be filled by nominees elected by the holders of the new Series C Preferred Stock of the Company.
The Company's remaining business segment, the Automotive Resource Division, continued to report operating losses in 1996. The Division's credit insurance results declined slightly from 1995 due to higher disability claims, which offset significantly lower general expenses.
The Company's pre-tax operating results for the past three years can be best understood through an analysis of each of its three business units. The Automotive Resource Division, the Company's core business, is now the only continuing business segment. The Division's principal product is credit insurance, which it markets primarily through automobile dealers in six key states. It also markets automobile extended service contracts in a general agency capacity and generates other revenues from services it provides to approximately 900 automobile dealer customers. The Individual Life Insurance Division has not written any new business since 1992. Closing on the sale of the Division's remaining block of insurance business took place on March 27, 1997. Auto auction operations were conducted through the Company's subsidiary, Interstate Auto Action, Inc., until the sale of Interstate's business and operating assets in late 1996.
The Division's pre-tax operating results for 1996 declined from a $2.4 million loss in 1995 to a loss of $2.5 million. A significant increase in the credit disability claims ratio on retained business (i.e., business not reinsured to captive insurance companies) offset a $900,000 reduction in general expenses. General expenses in both years now include expenses which had previously been allocated to the discontinued Individual Life Insurance Division and, to a lesser extent, the discontinued Auto Auction Division. The Company does not believe the level of disability claims in 1996 and the claims ratio in 1996 are an indication of any unfavorable trend. In that regard, claims ratios in the first two months of 1997 are well below the ratios for the same period in 1996. While the Division's expense ratio improved in 1996, the present ratio is still higher than the ratio which is required to return the Division to profitability. As noted above, the increased expense ratio compared to the ratio in the late 1980's is a key reason for the Division's continued losses.
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
(a) Investments in securities of unaffiliated companies are reported as described in Note 1, rather than in accordance with valuations established by the National Association of Insurance Commissioners (NAIC). Pursuant to NAIC valuations, bonds eligible for amortization are reported at amortized value; other securities are carried at values prescribed by or deemed acceptable to the NAIC, including common stocks, other than stocks of affiliates, at market value.
Overview-Year Ended December 31, 2014 compared to Year Ended December 31, 2013
Overview - Balance Sheet highlights at December 31, 2014 compared to December 31, 2013
At December 31, 2014, the Company's holdings in debt securities amounted to 82.2% of total investments and 62.1% of total assets. The Company utilizes the ratings of various Nationally Recognized Statistical Rating Organizations when classifying fixed maturity investments by quality rating.
Average current yield on investments declined moderately due to the maturity of investments at higher book yields reinvested at current historically low interest rates. In this persistent low interest rate environment, generation of investment income will remain challenging which increases the importance of the generation of underwriting profits.
The Company, primarily through its insurance subsidiaries, had $6,426,000 in cash and cash equivalents at December 31, 2014, compared to $4,987,000 at December 31, 2013. Significantly improved performance in our insurance operations for the period ended December 31, 2014 contributed to the $11,867,000 in cash provided by operations compared to cash provided by operations the same period last year totaling $2,659,000. Cash flows from operations in the prior year were negatively impacted by insured losses from spring storms incurred during the first quarter.
At December 31, 2014 and 2013, the recorded liability for loss and loss adjustment expense was $8,321,000 and $8,734,000, respectively, a $413,000 decrease. The moderate reduction in property and casualty benefit and loss reserves is due to a decline in incurred losses in 2014 compared to prior year. We believe the estimate of unpaid losses and loss adjustment expenses to be sufficient based on currently available information and a review of our historical reserving practices. For more information regarding loss and loss adjustment expense, see Note 9 to our Consolidated Financial Statements.
Pafco is also located at 4720 Kingsway Drive, Indianapolis, Indiana. In addition, Pafco owns an investment property located at 2105 North Meridian, Indianapolis, Indiana. The property is a 21,700 square foot, multilevel building leased entirely to third parties. All underwriting, claims, administration and accounting activities are contained at this location for Pafco.
Income Before Income Taxes and Extraordinary Item. Net income before income taxes and extraordinary items increased to $40.5 million for the year ended December 31, 1997 compared to $31.7 million for the same period in 1996. The increase resulted primarily from the increase in earned premiums, the favorable results in both loss and loss adjustment expense and other expenses, and the contributions from Archer to income from service operations.
Operating Expenses ------------------ During the year ended December 31, 2002, operating expenses and taxes, licenses and fees (excluding income taxes) decreased slightly to $6,008,072 from $6,159,044 for the same period in 2001. Operating expenses represent 37% of total revenue for the years ended December 31, 2002 and 2001.
Loss adjustment expenses (LAE's) represent the cost of the internal claims department, outside claims consultants and attorneys in connection with the settlement of claims. LAE's decreased $333,132 when compared to the same period in the prior year. The decrease is a result of CCS processing claims through the home office.
The loss and loss adjustment expense reserve liability at December 31, 2001 includes direct case losses and loss adjustment reserves on 30 claims with an average reserve of approximately $58,295. The balance of the loss and loss adjustment expense reserve liability is held under IBNR (incurred but not reported) on direct and assumed surety claims totaling $3,535,967.
Amortization ------------ During the year ended December 31, 2001 the net amortization of deferred policy acquisition costs were to $4,362,721 as compared to $3,767,107 for the year ended December 31, 2000. The acquisition costs represent 23.9% and 24.7% of the direct and assumed earned premiums for the years ended December 31, 2001 and 2000, respectively.
The anticipated effect of inflation is implicitly considered when estimating liabilities for losses and LAE. While anticipated price increases due to inflation are considered in estimating the ultimate claim costs, the increase in average severities of claims is caused by a number of factors. Future average severities are projected based on historical trends adjusted for anticipated changes in underwriting standards, policy provisions, and general economic trends. These anticipated trends are monitored based on actual development and are modified if necessary.
MARSH & MCLENNAN COMPANIES, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
On April 8, 2004, Putnam entered into a settlement of those charges under which Putnam was required to pay $5 million in restitution plus a civil monetary penalty of $50 million. The settlement provided that if the restitution calculated by the independent assessment consultant under the SEC order exceeded $10 million, Putnam would be responsible for paying the excess.
Cash used for investing activities amounted to $2.6 billion in 2004 and $470 million in 2003. The primary use of cash in 2004 was for the acquisition of Kroll, Inc., Synhrgy HR Technologies and the Australia and New Zealand operations of Heath Lambert, and payments of approximately $61 million for acquisitions completed in prior years. Remaining cash payments of approximately $65 million related to acquisitions completed in 2004 and prior years are recorded in Accounts payable and accrued liabilities or in Other liabilities in the Consolidated Balance Sheets at December 31, 2004. Cash used for acquisitions in 2003 amounted to $178 million, primarily related to the acquisition of OWC and several smaller consulting businesses.
Net uncollected premiums and claims and the related payables were $11.2 billion and $11.5 billion at December 31, 2004 and 2003, respectively. MMC is not a principal to the contracts under which the right to receive premiums or the right to receive reimbursement of insured losses arises. Net uncollected premiums and claims and the related payables are, therefore, not assets and liabilities of MMC and are not included in the accompanying Consolidated Balance Sheets.
In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 ("Act") became law. The net periodic benefit cost shown above includes the subsidy which did not have a material impact.
CASH AND CASH EQUIVALENTS: The estimated fair value of MMC's cash and cash equivalents approximates their carrying value.
Pursuant to the Settlement Agreement, Marsh will establish a fund of $850 million (the "Fund"), payable over four years, for Marsh policyholder clients. A copy of the Settlement Agreement was previously disclosed as an exhibit to MMC's Current Report on Form 8-K dated January 31, 2005. As a general matter, U.S. policyholder clients who retained
Plaintiffs seek, among other things, to recover the compensation paid to defendants by the funds for one year prior to the filing of the complaint, rescission of the management and distribution agreements between defendants and the funds, and a prospective reduction in fees. On August 13, 2004, defendants filed a motion to dismiss the complaint for failure to state a claim for relief. The motion has been fully briefed and argued and remains before the court for decision.
- Putnam has also been notified by certain former institutional clients that they are considering possible claims relating to certain alleged disclosure failures, misrepresentations and purported breaches of investment management agreements.
Accident and health benefits 407,249 397,963 368,046 376,820 367,790 Life and annuity benefits 42,947 39,419 47,622 46,128 46,889 ------- ------- ------- ------- ------- Total benefits 450,196 437,382 415,668 422,948 414,679 ------- ------- ------- ------- ------- Total benefits and expenses 748,133 680,364 681,409 695,418 625,178 ------- ------- ------- ------- -------
(6) The loss, underwriting expense and combined ratios included under 'Other Operating Data' have been derived from the audited consolidated statements of income of PXRE prepared in accordance with GAAP.
As PXRE underwrites risks from a large number of insurers based on information generally supplied by reinsurance brokers, there is a risk of developing a concentration of exposure to loss in certain geographic areas prone to specific types of catastrophes. PXRE has developed systems and software tools to monitor and manage the accumulation of its exposure to such losses. Management has established guidelines for maximum tolerable losses from a single or multiple catastrophic event(s) based on historical data; however, no assurance can be given that these maximums will not be exceeded in some future catastrophe.
Net investment income for 1997 increased 85.9% to $31,191,000 from $16,782,000 for the comparable period of 1996 as reported. The increase in net investment income was caused primarily by $9,201,000 of investment income from Transnational Reinsurance, $2,213,000 from incremental total return income (including unrealized gains and losses) from higher yielding limited partnership investments from the planned repositioning of the investment portfolio and the remainder from increased average assets, which in part was due to proceeds of the 8.85% TRUPS'sm' in excess of Senior Notes repurchased in 1997. PXRE's pre- tax investment yield was 6.3% for 1997 compared with 6.4% for the corresponding period in 1996 as reported, both calculated using amortized cost and investment income before investment expenses. Net realized investment gains for 1997 were $2,467,000 compared to gains of $94,000 for the corresponding period of 1996 reflecting the active management of the portfolio. During 1997, PXRE recorded directly to equity an after-tax unrealized gain of $2,605,000 in the value of its investment portfolio ($0.19 book value per share), reflecting the effect of decreasing interest rates during the period.
Gross premiums written for 1996 decreased 26.4% to $114,348,000 from $155,380,000 for 1995. Net premiums earned for the year ended December 31, 1996 decreased 25.1% to $72,796,000 from $97,142,000 in the year-earlier period. Net premiums written for the year ended December 31, 1996 decreased 30.6% to $67,718,000 from $97,636,000 for the corresponding period of 1995. Gross written, net written and net earned premium for 1996 declined from prior-year levels reflecting the increasingly competitive business environment. PXRE continued its planned response to this situation by withdrawing capacity from areas of coverage not offering appropriate compensation for the exposure. Net premiums written and earned were also adversely
The policies corresponding to these claims were written on a direct basis. The Company has excess of loss reinsurance with company retention through 1980 of $100 and between $250 and $500 thereafter. The claims are reserved as follows as of December 31, 2000 and 1999:
- the effects of economic conditions and conditions which affect the market for property and casualty insurance, including, but not limited to, interest rate fluctuations and flood zone determination services;
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of The Seibels Bruce Group, Inc. and subsidiaries, as of December 31, 2000 and 1999 and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2000 in conformity with accounting principles generally accepted in the United States.
In the first quarter of 1998, the Company purchased America's Flood Services, Inc. ("AFS") located in Rancho Cordova, California. AFS offers fee-based flood zone determinations and compliance tracking services to a variety of customers and institutions located throughout the United States.
The operations of Kentucky generated income of $113 and $4 in 1999 and 1998, respectively.
Covenants of the Company's Credit Facility do not permit the Company to declare dividends to its common stockholders.
(b) A contingent liability exists with respect to reinsurance placed with other companies (See Note 14).
During the fiscal years ended December 31, 2000, 1999 and 1998, the Company paid a total of $225, $350 and $522, respectively, to SADISCO Corporation ("SADISCO") for salvage and disposal services. Charles H. Powers, chairman of the Company's Board of Directors and member of the Board of Director's Compensation Committee, is the owner and operator of SADISCO.
In December 2000, the Company sold its corporate headquarters to its majority shareholder and Chairman of the Board of Directors, resulting in a gain of $1,892. Concurrent with this transaction, the
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated net assets in liquidation of Consumers Financial Corporation and subsidiaries as of December 31, 2000 and 1999 and the consolidated changes in their net assets in liquidation for the years then ended, in conformity with accounting principles generally accepted in the United States of America applied on the basis described in the preceding paragraph.
The financial statements have been prepared on the basis of generally accepted accounting principles (GAAP) which, as to Consumers Life, vary from reporting practices prescribed or permitted by regulatory authorities. As a result of the approval of the Plan of Liquidation and Dissolution referred to above and discussed in Note 4, the Company adopted a liquidation basis of accounting for the periods subsequent to March 24, 1998. Under the liquidation basis of accounting, assets are stated at their estimated net realizable values and liabilities are stated at their anticipated settlement amounts. Amounts determined in accordance with the liquidation basis of accounting do not differ significantly from the accounting policies discussed below.
The Company and its subsidiary provide income taxes, for financial reporting purposes, on the basis of the liability method as required by Statement of Financial Accounting Standards No. 109.
As a result of the sale of the Company s credit insurance and related operations to LOTS, in the accompanying financial statements, the operating results of the credit insurance and related fee income business were reported as discontinued operations for the period from January 1, 1998 to March 24, 1998.
None of the common shares contingently issuable upon the conversion of the Preferred Stock were included in the above computation of diluted per share information because the effect would have been antidilutive.
A reconciliation of the Insurance Company’s net income as filed with regulatory authorities to net income reported in the accompanying financial statements for the years ended December 31, 2009, 2008 and 2007, is set forth in the following table:
In December 2009, A.M. Best Company reaffirmed the Insurance Company’s rating at “B+” (Good) and placed the Company under review with negative implications. According to A.M Best, the rating actions primarily reflect the lack of clarity regarding the Company’s future management structure and the future strategic direction of the Company. The Company’s ratings will remain under review while A.M. Best conducts further discussions with management and gains a better understanding of the future make -up of the management team and any changes in strategic direction. In addition, A.M. Best will continue to monitor the financial performance of the Company.
As shown in the table below, the spread on a quarterly basis began to improve in the last three quarters of 2009. This improvement is reflective of the strengthening global economy. If the economy continues to improve in 2010, the spread could continue to increase although there can be no assurance that this trend will continue.
The interest expense on the Corporation's notes payable amounted to approximately $0.8 million in 2009, approximately $7.4 million in 2008 and approximately $9.1 million in 2007. The decrease in 2009 was due to the repayment of Corporation’s senior note in February of 2009. The decrease in 2008 was primarily due to the repayment of the $50 million line of credit in July of 2008 and the Corporation’s partial repurchase and retirement of its senior notes in 2007 and 2008.
For the year ended December 31, 2005, $108 million of gross realized investment gains were partially offset by $39 million of gross realized investment losses, as well as $19 million of other-than-temporary impairment losses on investments, classified as Available-for-Sale. Included in net realized investment gains classified as Available-for-Sale for the year ended December 31, 2005 were gross realized investment gains and losses of $39 million and $14 million, respectively, related to the sale of all of RiverSource Life's retained interest in a collateralized debt obligation ("CDO") securitization trust.
Interest credited to account values decreased by $59 million or 5.3% to $1.1 billion for the year ended December 31, 2006 primarily due to lower interest crediting rates and lower average accumulation values of annuities, partially offset by the effect of appreciation on EIA linked to the S&P 500 Index in 2006 versus depreciation in 2005.
The DAC unlocking net benefit for the third quarter of 2006 primarily reflected a $25 million benefit from modeling increased product persistency and a $15 million benefit from modeling improvements in mortality, offset by negative impacts of $8 million from modeling lower variable product fund fee revenue and $8 million from model changes related to variable life second to die insurance.
The DAC unlocking net benefit for the third quarter of 2005 primarily reflected a $32 million benefit from modeling improvements in mortality, a $33 million benefit from lower than previously assumed surrender rates and higher associated surrender charges and a $2 million net benefit from other changes in DAC valuation assumptions.
For other life, DI and LTC insurance products, the assumptions made in calculating the DAC balance and DAC amortization expense are consistent with those used in determining the liabilities and, therefore are intended to provide for adverse deviations in experience and are revised only if management concludes experience will be so adverse that DAC is not recoverable or if premium rates charged for the contract are changed. If management concludes that DAC is not recoverable, DAC is reduced to the amount that is recoverable based on best estimate assumptions and there is a corresponding expense recorded in consolidated results of operations.
At December 31, 2006 and 2005, RiverSource Life had securities sold under repurchase agreements totaling nil and $25 million, respectively and no amounts were outstanding on the line of credit with Ameriprise Financial.
A decline in equity markets would also reduce the asset-based management fees RiverSource Life earns on equity market investments that its annuity and VUL policyholders have in separate accounts. At December 31, 2006, RiverSource Life estimates the equity price risk from this exposure on pretax income if, hypothetically, equity markets decreased immediately by 10% and remain at that level for 12 months to be a negative impact of $57 million for the 12 month period.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Security Capital Corporation and subsidiaries at December 31, 1997 and 1996 and the results of their operations and their cash flows for the year ended December 31, 1997, the three months ended December 31, 1996 and the years ended September 30, 1996 and 1995 in conformity with generally accepted accounting principles.
The Advisory Agreement states that, from time to time, CP, Inc. may present acquisition opportunities to the Company that it believes may be appropriate for the Company, but that CP, Inc. is under no obligation to present any or all acquisition candidates of which it is aware to the Company except for insurance agency business. If the Company or any of its subsidiaries completes any acquisition which was presented by CP, Inc., the Company is obligated to pay CP, Inc. an investment banking fee at the usual and customary rate for transactions
By notice received January 3, 1994, the Company's insurance agency affiliate, FIS, was sued in the 281st Judicial District Court of Harris County, Texas by Quality Oilfield Products, Inc. for damages of at least $2,000,000 plus attorneys' fees, plus potentially treble damages, for alleged failure to provide a policy of insurance for compensation for future losses related to business interruption. In connection with the sale of the Company's proprietary interest in FIS, the Company was indemnified for any losses arising out of this claim.
The three-level hierarchy for fair value measurement is defined as follows:
early years of an insurance contract are deferred (i.e., DFEL), and the unamortized balance is reported in other contract holder funds on our Consolidated Balance Sheets.
This standard establishes the core principle of recognizing revenue to depict the transfer of promised goods and services. The amendments define a five-step process that systematically identifies the various components of the revenue recognition process, culminating with the recognition of revenue upon satisfaction of an entity’s performance obligation. Although these amendments will supersede nearly all existing revenue recognition guidance under GAAP, ASU 2014-09 will not amend the accounting for insurance and investment contracts recognized in accordance with ASC Topic 944, Financial Services - Insurance, leases, financial instruments and guarantees. Retrospective, or modified retrospective, application is required.
ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities
The effective tax rate is the ratio of tax expense (benefit) over pre-tax income (loss). The tax-preferred investment income relates primarily to the separate account dividends-received deduction. The tax benefit associated with the separate account dividends-received deduction was $264 million, $182 million and $192 million for the years ended December 31, 2017, 2016 and 2015. Tax benefits for uncertain tax positions for the year ended December 31, 2017, were primarily attributable to the release of reserves for tax contingencies associated with a prior tax year that closed during 2017.
(4)issued to the placement agent as part of placement agent compensation; 170,625 exercised in 2000, and the remaining 34,125 expire on April 30, 2002. The aggregate net proceeds from these offerings, including proceeds received from the exercise of warrants, was $65,699,000, substantially all of which were contributed to the capital and surplus of American Equity Life or used to fund the acquisition of the life insurance company acquired in 1996.