indicated periods are discussed under "Management's Discussion and Analysis of Financial Condition and Results of Operations".
income tax losses to offset the taxable income of its subsidiaries, and other miscellaneous sources totaling $1.6 million. SLC's actual 1994 cash requirement/uses exceed the previously projected 1994 cash requirements by $23.1 million. Included in the increase in such cash requirement/uses is a net $15.7 million additional investment in CFLIC preferred stock. See Note 4 of Notes to Financial Statements. In addition, other uses not previously projected include the use of $10.0 million cash to purchase $10.0 million principal amount of SLC's 11 1/4% Notes due 1996, the use of $7.0 million cash for capital contributions to subsidiaries, a loss on the liquidation of marketable securities totaling $4.6 million and other miscellaneous uses totaling $7.3 million. Included in projected uses of cash in 1994 was the purchase by SLC of $34.1 million of its 11 1/4% Notes due 1996 from certain of its subsidiaries. During 1994, SLC decided not to utilize its available cash to purchase $21.5 million principal amount of such Notes.
Effective June 15, 1994, I.C.H. Corporation changed its name to Southwestern Life Corporation (the Company or SLC).
In conjunction with the termination of the CFLIC reinsurance agreement relating to the business written by Southwestern Life, annuity reserve liabilities totaling $323,305,000 were assumed by ERC and invested assets with a fair value of $289,414,000 were transferred by CFLIC to ERC. The difference between the reserve liabilities assumed by ERC and the assets transferred from CFLIC, totaling $33,891,000, represented the aggregate ceding fee paid to CFLIC to effect the termination. Immediately thereafter, Southwestern Life recaptured $107,163,000 of the reserve liabilities from ERC and received invested assets from ERC totaling $93,942,000. The assets consisted of cash, short-term investments and marketable fixed maturity investments totaling $25,455,000, CFLIC's investment in ICH Funding and certain pass-through certificates issued by a special purpose trust with an estimated fair value totaling $12,528,000, collateral loans due from James M. Fail and CFSB Corporation totaling $50,640,000, and other assets, principally mortgage loans, totaling $5,319,000. The difference between the reserve liabilities recaptured by Southwestern Life and the assets transferred from ERC, totaling $13,221,000, represented a ceding fee paid by Southwestern Life, and reduced ERC's net ceding fees incurred to effect the CFLIC reinsurance termination to $20,670,000. The reinsurance agreement between Southwestern Life and ERC was amended to provide that ERC will be permitted to recover the net ceding fees incurred out of the future profits on the portion of Southwestern Life's annuity business it retained, together with interest at 2% per annum on the unamortized balance of such ceding fees. For financial reporting purposes, the reinsurance arrangement between Southwestern Life and ERC has been reflected as a financing arrangement and, accordingly, is not reflected in the Company's financial statement except for the interest paid to ERC.
The following table reflects investment writedowns which were included in realized investment gains or losses during each of the three years in the period ended December 31, 1994:
The amortized cost and estimated fair value of fixed maturities 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.
Shares of Common Stock reserved for issuance at December 31, 1994:
The following reflects assets and liabilities disposed of relative to the sale of Bankers and Certified (See Note 2) and net cash flow relative to such sale during the year ended December 31, 1992 (in thousands):
Changes in the present value of future profits of acquired business for the three years ended December 31, 1994, are as follows:
SOUTHWESTERN LIFE CORPORATION AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION For the Years Ended December 31, 1994, 1993 and 1992 (In Thousands)