felanders/preprocessed huggingface dataset:
Medical cost PMPM trend factors are the most significant factors we use in developing our medical costs payable estimates for the most recent three months. The following table illustrates the sensitivity of these factors and the estimated potential impact on our medical costs payable estimates for the most recent three months as of December 31, 2008:
The current national health care cost inflation rate significantly exceeds the general inflation rate. We use various strategies to lessen the effects of health care cost inflation. These include setting commercial premiums based on anticipated health care costs, coordinating care with physicians and other health care professionals and rate discounts from physicians and other health care professionals. Through contracts with physicians and other health care professionals, we emphasize preventive health care, appropriate use of health care services consistent with clinical performance standards, education and closing gaps in care.
Upon adoption of FAS 159 on January 1, 2008, the Company elected to measure the entirety of the AARP Assets Under Management on a fair value basis. The adoption impact was not material to the Company.
For a discussion of the methods and assumptions that were used to estimate the fair value of each class of financial instrument see Note 5 to the Notes to Consolidated Financial Statements for information on Debt and Equity Securities, Note 13 to the Notes to Consolidated Financial Statements for information on AARP and Note 9 to the Notes to Consolidated Financial Statements for information related to Interest Rate Swaps and Senior Unsecured Notes.
On May 17, 2006, the Company received a subpoena from the U.S. Attorney for the Southern District of New York requesting documents from 1999 to the date of the subpoena relating to its historical stock option practices.
Other adjustments for non-operating cash charges may be required in connection with the resolution of stock option-related matters arising under litigation and regulatory reviews by the SEC, IRS, U.S. Attorney, U.S. Congressional committees and Minnesota Attorney General, the amount and timing of which are uncertain but which could be material.
The Company's premium revenues increased from $13.9 million for the year ended December 31, 1992 to $169.1 million for the year ended December 31, 1997, a compound annual growth rate of 64.8%. The increase is primarily related to the growth in the number of members, both from internal growth and from acquisitions, and secondarily due to premium rate increases. IDH had approximately 370,000 prepaid members and 90,000 indemnity members when it was acquired by the Company effective September 1, 1994. The Company had approximately 267,000 prepaid members at that date. Subsequent acquisitions added the following membership:
Interest. Interest expense increased to $0.6 million in 1997 from $0.5 million in 1996. The $0.1 million increase was entirely attributable to the imputed interest on the Agreements incurred to finance the IDH, US Dental and AHP acquisitions and the interest on borrowings under the revolving credit facility. The weighted average interest rate for 1997 was 9.4% which includes commitment fees and fees related to letters of credit.
Management believes that the Company's operations are not materially affected by inflation. The Company's principal costs, such as dental services expense and sales and marketing expenses are largely related to membership levels and are, therefore, variably related to premium revenues. Historically, the Company's rate of premium increases has been less than the rate of increase in dental costs in general.
Year Ended Percentage December 31 Increase (Decrease) ------------------------------------ ----------- 2001 2000 ---- ----
• Other long-term investments - at a variety of methods similar to those listed above, as deemed appropriate for the specific investment.
The cost to acquire blocks of insurance representing the present value of future profits from such blocks of insurance is also included in deferred policy acquisition costs. The Company amortizes the present value of future profits over the premium payment period, including accrued interest of up to approximately 8.0%. The unamortized present value of future profits was approximately $113.7 million and $119.8 million at December 31, 2001 and 2000, respectively. During 2001, $6.1 million of present value of future profits was amortized. No amounts were capitalized during 2001. During 2000, $5.8 million of present value of future profits was amortized. No amounts were capitalized during 2000.
Paid related to: Current year........................................... 9,454,229 9,504,618 8,999,287 Prior year............................................. 2,155,651 1,276,856 286,811 ----------- ----------- ------------- Total paid.......................................... 11,609,880 10,781,474 9,286,098 ----------- ----------- -------------
Assets (see Notes A and C): Investments: Fixed maturities...................... $445,730,493 $445,730,493 $418,756,679 $418,756,679 Mortgage loans on real estate......... 2,717,495 2,873,017 3,215,344 3,364,675 Short-term investments................ 12,000,000 12,000,000 4,000,000 4,000,000 Cash 4,284,257 4,284,257 1,165,410 1,165,410 Liabilities (see Note A): Annuity deposits...................... 47,324,337 46,396,261 28,059,246 27,507,238
Management's Discussion and Analysis of Financial Condition and Results of Operations is based on our consolidated financial statements and related notes, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those estimates.
Legacy Marketing has marketing and administrative agreements with certain insurance carriers, listed above. Under the terms of the marketing agreements, Legacy Marketing is responsible for appointing Producers, who have contracted with Legacy Marketing to sell fixed annuity products, with various states' departments of insurance and the applicable insurance carriers.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
Investments classified as available-for-sale are periodically reviewed to determine if declines in fair value below cost are other-than-temporary. Significant and sustained decreases in quoted market prices, a series of historical and projected operating losses by the investee or other factors are considered as part of the review. If the decline in fair value has been determined to be other-than-temporary, an impairment loss is recorded in Investment income and the individual security is written down to a new cost basis.
The Company leases office and warehouse premises and certain office equipment under non-cancelable operating leases. Related rent expense of $298,000, $329,000, and $531,000 is included in occupancy costs for the years ended December 31, 2005, 2004, and 2003. Total rentals for leases of equipment included in equipment expense were $727,000, $674,000, and $1.0 million for the years ended December 31, 2005, 2004, and 2003.
the Debentures (See Note 7 to the Consolidated Financial Statements) in addition to $36.6 million related to the issuance of Common Stock through the Company's employee stock purchase and option plans.
During the quarter ended September 30, 1998, the Company received a private letter ruling from the IRS with respect to the treatment of certain payments made at the time of WellPoint's 1996 Recapitalization and the acquisition of the commercial operations of its former majority stockholder. The ruling allows the Company to deduct as an ordinary and necessary business expense the $800 million cash payment made by such stockholder in May 1996 to one of two newly formed charitable foundations. The Company's liquidity for 1999 was positively affected by a reduction in income tax payments of approximately $47.0 million. In August 1999, the Company received a cash refund (including applicable accrued interest) of approximately $183.0 million, which is reflected in the statement of cash flows for the year ended December 31, 1999. The Company has also submitted a claim for refund with respect to an additional $38.0 million.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS:
Operating earnings for the ACSTAR Bonding segment were $2,098,548 in 2001, $2,436,708 in 2000 and $2,968,882 in 1999. The decrease in operating earning in 2001 is primarily related to lower earned premium and higher loss ratios partially offset by higher net investment income and capital gains. The decrease in operating earnings reflects the Company's new reinsurance program and an increase in the losses and loss adjustment expense.
Consolidated Statements of Cash Flows for the years ended December 31, 2001, 2000 and 1999
The stockholders have periodically approved the distribution of non-qualified stock options to certain officers and directors giving such individuals the right to purchase restricted shares of the Company's Common Stock and Class A Stock. Transactions regarding these stock options are summarized below:
The Company incurred losses and administrative expenses during the year ended December 31, 1999 of $62,662,673 compared with $61,027,782 and $43,503,363 for the years ended December 31, 1998 and 1997, respectively. Expenses in 1999 were comprised of losses paid and provisions for losses incurred of $46,784,152, ceding commissions and excise taxes of $15,206,934 and operating expenses of $671,587. Losses incurred in 1998 and 1997 were $45,552,545 and $31,118,622, respectively. The loss ratio for the year ended December 31, 1999 was 80% compared to 78.8% and 68.1% for the years ended December 31, 1998 and 1997, respectively.
Equity Price Risk. Equity price risk results from changes in the level or volatility of equity prices which affect the value of equity securities. At December 31, 1999, the Company had approximately 10% of its portfolio invested in an international equity fund. Prior to 1999, the Company had no investments in equity securities. As of December 31, 1999, the net fair value asset exposure to equity price risk was approximately $11.8 million, and the potential gain in fair value resulting from a hypothetical 10% increase in the underlying equity prices would be approximately $1.2 million.
Balance, December 31, 1996 $ 543,521 Net appreciation 591,680 ----------- Balance, December 31, 1997 $ 1,135,201 Net depreciation (801,142) ----------- Balance, December 31, 1998 $ 334,059 Net depreciation (496,518) ----------- Balance, December 31, 1999 $ (162,459) ===========
Till is an insurance holding company domiciled in Bermuda. Through Till’s two wholly-owned insurance subsidiaries, RRL and Omega, we provide property and casualty insurance and reinsurance business. Till operates in a single segment, specifically insurance. For additional information, see Note 18 to the Consolidated Financial Statements in Part II, Item 8, of this Report.
Insurance premiums written increased from $20.7 million in 2015 to $39.7 million in 2016. The increase in premiums written was due to the inclusion of Omega for all of 2016 as compared to 7.5 months in 2015.
The $13.2 million reserve for unpaid losses and loss adjustment expenses at December 31, 2016 as compared to the $14.5 million at December 31, 2015 is partially the result of more favorable development on prior-year business. There have been no changes in the actuarial methodology used by Omega to estimate reserves in 2016 or 2015.
The $1.1 million of accounts payable and accrued liabilities at December 31, 2016 represents a decrease of $0.9 million compared to the $2.0 million balance at December 31, 2015.
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the Years Ended December 31, 2016 and 2015
Consolidated Statements of Changes in Shareholders’ Equity for the Years Ended December 31, 2016 and 2015
Till assesses the recoverability of long-lived assets when events or circumstances indicate that the assets might have become impaired. Till determines whether the assets can be recovered from undiscounted future cash flows and, if not recoverable, Till recognizes the impairment by reducing the carrying value to fair value. Recoverability of long-lived assets is dependent on, among other things, Till’s ability to maintain profitability, so as to be able to meet its obligations when they become due. No such impairment was recognized in 2015 or 2016.
In March 2016, the FASB issued ASU Topic 2016-09, Compensation-Stock Compensation (Topic718), that requires recognition of the excess tax benefits or deficiencies of share-based awards through net income rather than through additional paid in capital. Additionally, the guidance allows for an election to account for forfeitures related to share-based payments either as they occur or through an estimation method. Till expects to adopt this guidance beginning in the first quarter of 2017.
The revenue from policyholders and other customers is attributable to the following countries:
Premiums and policy fees, net of reinsurance (“premiums and policy fees”) increased $26.4 million or 269.9% in 1999 over 1998. The coinsurance by the Acquisitions Division of a block of policies from Lincoln National Corporation in October 1998 resulted in a $29.0 million increase in premiums and policy fees in 1999 as compared to 1998. Premiums and policy fees from the Financial Institutions Division were $1.2 million higher in 1999 as compared to 1998. Of this increase, $0.4 million is attributable to the recapture of a block of credit life and disability policies which had been previously ceded. Both the Dental and Investment Products Divisions experienced small increases in premiums in 1999 as compared to 1998.
The Dental Division’s 1999 pretax earnings decreased $0.2 million as compared to 1998 primarily due to a decline in net investment income allocated to the Division.
Management’s current estimate of the effective income tax rate for 2000 is 34.5%.
Statements of Share-Owners' Equity for the years ended December 31, 1999, 1998, and 1997
LIABILITIES Policy liabilities and accruals: Future policy benefits and claims............................................... $445,284,973 $439,842,102 Unearned premiums............................................................... 7,852,424 2,487,277 -------------- -------------- 453,137,397 442,329,379 Annuity deposits..................................................................... 12,253,056 3,434,342 Other policyholders' funds........................................................... 5,410,510 12,143,006 Other liabilities.................................................................... 18,338,059 7,941,276 Deferred income taxes................................................................ 109,523 7,305,381 Liabilities related to separate accounts Variable annuity................................................................ 4,951,159 237,565 ------------- ----------- Total liabilities............................................................ 494,199,704 473,390,949 ----------- -----------
The Company’s accounting policies with respect to variable annuities are identical except that policy account balances (excluding account balances that earn a fixed rate) are valued at market and reported as components of assets and liabilities related to separate accounts.
These transactions have been accounted for as purchases, and the results of transactions have been included in the accompanying financial statements since the effective date of the agreement.
Receivables from related parties consisted of receivables from affiliates under control of PLC in the amount of $5,582,845 at December 31, 1999 and $283,402 at December 31, 1998. The Company routinely receives from or pays to affiliates under the control of PLC reimbursements for expenses incurred on one another’s behalf. Receivables and payables among affiliates are generally settled monthly.
Liabilities for future policy benefits under the renewable term agreements include provisions for expected future claims. The liability is estimated using assumptions such as estimates of expected investment yields, mortality, persistency and expenses applicable at the time the reinsurance contracts are executed.
The following table sets forth certain operating data as a percentage of total revenue for the periods indicated:
As of December 31, 2004, we had invested assets totaling $34.6 million with a pre-tax unrealized gain of $235,000. The table below shows the aggregate amounts of fixed maturity securities, equity securities, cash and cash equivalents, and reinsured policy loans comprising our portfolio of invested assets:
If the transactions contemplated by the Reorganization Agreement are consummated, we will receive approximately $57 million of marketable AEGON common shares in exchange for all of the outstanding shares of Global Preferred Re. As a result, our operations and substantially all operating cash flows, except for investment income and run-off expenses, will cease. The Reorganization Agreement provides that we must dissolve and distribute all remaining AEGON common shares received pursuant to the Reorganization Agreement and any of our other remaining assets to our stockholders, after making adequate provision for our liabilities in accordance with Delaware law, no more than twelve months after closing of the asset transfer.
Year Ended December 31, 2008 as Compared to Year Ended December 31, 2007
Reserve for unearned premiums decreased to $87.6 million as of December 31, 2007 from $93.6 million as of December 31, 2006 primarily as a result of the decrease in gross premiums written in the ocean marine line of business and the excess workers’ compensation class.
Life DepL. Premiums for Retrocession Commission and Expenses, less Retrocession Surrenders, less Retrocession . Losses paid, less Retrocession Annuities paid, less Retrocession . . Premium Reserve, less Retrocession Annuity Fund, less Retrocession . . Reserve for unsettled Claims, less Retrocession ...... Expenses of Management Taxes Depreciation of Invesiments ^ . Balance
Sun Life Insurance and Annuity Company of New York (the "Company") is incorporated as a life insurance company and is currently engaged in the sale of individual fixed and variable annuities and group life and long-term disability insurance. The parent company, Sun Life Assurance Company of Canada (U.S.) (Sun Life of Canada (U.S.)), is ultimately a wholly-owned subsidiary of Sun Life Assurance Company of Canada (Sun Life (Canada)), a mutual life insurance company.
Realized capital gains and losses on bonds and mortgages which relate to changes in levels of interest rate risk are charged or credited to an interest maintenance reserve ("IMR") and amortized into income over the remaining contractual life of the security sold. The gross realized capital gains credited to the interest maintenance reserve were $355,000, $354,000 and $960,000 in 1997, 1996 and 1995, respectively. All gains are transferred net of applicable income taxes.
6. REINSURANCE: The Company has agreements with Sun Life (Canada) which provide that Sun Life (Canada) will reinsure the mortality and morbidity risks of the group life insurance contracts and group long-term disability contracts issued by the Company. Under these agreements, basic death benefits and long-term disability benefits are reinsured on a yearly renewable term basis. The agreements provide that Sun Life (Canada) will reinsure the mortality risks in excess of $50,000 per policy for group life insurance contracts and $3,000 per policy per month for the group long-term disability contracts ceded by the Company. Reinsurance transactions under these agreements had the effect of increasing income from operations by $139,000 for the year ended December 31, 1997, decreasing income from operations by $500,000 for the year ended December 31, 1996 and increasing income from operations by $652,000 for the year ended December 31, 1995.
9. FAIR VALUE OF FINANCIAL INSTRUMENTS: The following table presents the carrying amounts and fair values of the Company's financial instruments at December 31, 1997 and 1996:
Because the Company's management uses financial information prepared in conformity with accounting policies generally accepted in Canada in the normal course of business, the management of the Company has determined that the cost of complying with Statement No. 120 would exceed the benefits that the Company, or the users of its financial statements, would experience. Consequently, the Company has elected not to apply such standards in the preparation of these financial statements.
The Company has three principal needs for cash - the insurance companies' contractual obligations to policyholders, the payment of operating expenses and the servicing of its long-term debt. Cash and cash equivalents as a percentage of total assets were 5% as of December 31, 2001 and 2000, respectively. Fixed maturities as a percentage of total invested assets were 74% and 71% as of December 31, 2001 and 2000, respectively.
Cash provided by (used in) operating activities was $1,365,047, $(2,155,491)and $(627,939) in 2001, 2000 and 1999, respectively. Reporting regulations require cash inflows and outflows from universal life insurance products to be shown as financing activities when reporting on cash flows. The net cash provided by (used in) operating activities plus policyholder contract deposits less policyholder contract withdrawals equaled $3,384,557 in 2001, $(393,571) in 2000 and $2,325,455 in 1999. Management utilizes this measurement of cash flows as an indicator of the performance of the Company's insurance operations.
N. PROPERTY AND EQUIPMENT - Company-occupied property, data processing equipment and furniture and office equipment are stated at cost less accumulated depreciation of $5,560,547 and $5,951,717 at December 31, 2001 and 2000, respectively. Depreciation is computed on a straight-line basis for financial reporting purposes using estimated useful lives of three to 30 years. Depreciation expense was $316,900, $372,313, and $379,715 for the years ended December 31, 2001, 2000, and 1999, respectively.
Effect of Dilutive Securities Convertible notes 0 0 Options 0 0 ------------- ---------------
For the year ended December 31, 1999 ------------- ---- --------------- --- ------------- Income Shares Per-Share (Numerator) (Denominator) Amount ------------- --------------- ------------- Basic EPS Income available to common shareholders $ 1,075,909 2,839,703 $ 0.38 =============
In 1999 and 2000 the Company's deferred tax asset was carried at zero net of allowances. In 2001, the Company established a deferred tax liability of $385,432 for the unrealized gain based on the applicable United States statutory rate of 35%.
NAICO's statutory-based reserves (reserves calculated in accordance with accounting practices prescribed or permitted by an insurer's domiciliary state insurance regulatory authorities for purposes of financial reporting to regulators) do not differ from its reserves reported on the basis of GAAP. NAICO does not discount its reserves for unpaid losses and loss adjustment expenses. See Notes to Consolidated Financial Statements.
NAICO purchases fixed-maturity investments to support its investment strategies which are developed based on many factors including rate of return, maturity, credit risk, tax considerations, regulatory requirements and its mix of business. At the time of purchase, investments in debt securities that NAICO has the positive intent and ability to hold to maturity are classified as held to maturity and reported at amortized cost; all other debt securities are reported at fair value. Investments classified as trading are actively and frequently bought and sold with the objective of generating income on short-term differences in price. Realized and unrealized gains and losses on securities classified as trading account assets are recognized in current operations. NAICO has not classified any investments as trading account assets. Securities not classified as held to maturity or trading are classified as available for sale, with the related unrealized gains and losses excluded from earnings and reported net of income tax as a separate component of shareholder's equity until realized.
While Chandler USA believes that it is likely that Chandler Insurance and certain of its subsidiaries, including Chandler USA, will ultimately prevail as to all material claims asserted in the CenTra litigation, should the CenTra litigation be modified, reversed or decided adversely to either Chandler USA or NAICO, such event could result in additional legal and other expenses for Chandler USA and NAICO and court judgments against NAICO, impairing the ability of NAICO to pay dividends or other payments to Chandler USA.
Schedules are omitted because they are either not applicable or because the information required therein is included in the Notes to Consolidated Financial Statements.
American Skandia Life Assurance Corporation (the "Company") is a wholly-owned subsidiary of American Skandia Investment Holding Corporation (the "Parent"); whose ultimate parent is Skandia Insurance Company Ltd., a Swedish corporation.
Details of the deferred acquisition costs and related amortization for the years ended December 31, are as follows:
1998 $ 2,371,509 1999 2,595,272 2000 2,753,324 2001 2,753,324 2002 2,753,324 2003 and thereafter 21,465,933 ------------
periods on these contracts, a number of which had a period of 24 months after the expiry of the contract within which to report losses. Also, as a result of increasing other lines of business, the Company incurred losses relating to LaSalle Re Capital ($5.0 million), satellite coverages ($3.0 million), various risk excess coverages ($3.0 million) and political risks coverages ($1.7 million). As a result of the current year loss activity, the Company increased the level of incurred-but-not-reported reserves. Losses and loss expenses incurred during the year ended September 30, 1997 primarily included $12.0 million for floods in Eastern Europe, $6.1 million in respect of various international windstorms and winter storm activity in the United States and $4.6 million adverse development on Hurricane Fran (which occurred in September 1996).
Pro forma disclosure of net income and earnings per share as if the fair value based method of SFAS No. 123 had been adopted is provided in Note 10 to the consolidated financial statements.
The following table summarizes the composition of the fair value of available for sale securities by ratings assigned by Standard & Poor's Ratings Services or Moody's Investors Services Inc.
The weighted average fair value of options granted during 1999 is $10.38 (1998: $12.21; 1997:$8.18) per share. The fair value of the option grant in 1999 is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: dividend yield of 4% per annum; expected volatility of 27%; expected life of 7 years; and a risk free interest rate of 6.2%.
The declaration of dividends from retained earnings and distributions from additional paid in capital is limited to the extent that the above requirements are met (as well as following certain procedures required under Bermuda law). At September 30, 1999, there were no restrictions on the distribution of retained earnings.
Our insurance subsidiaries’ installment fees decreased primarily as a result of their customers’ increased usage of payment plans that have lower installment payment fees during 2014.
Our fixed maturity investments consisted of high-quality marketable bonds, of which 99.3% and 100.0% were rated at investment-grade levels at December 31, 2014 and 2013, respectively.
We account for income taxes using the asset and liability method. The objective of the asset and liability method is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities at enacted tax rates expected to be in effect when we realize or settle such amounts.
The following amounts represent the effect of affiliated reinsurance transactions on net premiums our insurance subsidiaries earned during 2014, 2013 and 2012:
We held fixed maturities and equity securities with unrealized losses representing declines that we considered temporary at December 31, 2014 as follows:
Our principal source of cash for payment of dividends is dividends from our insurance subsidiaries. State insurance laws require our insurance subsidiaries to maintain certain minimum capital and surplus amounts on a statutory basis. Our insurance subsidiaries are subject to regulations that restrict the payment of dividends from statutory surplus and may require prior approval of their domiciliary insurance regulatory authorities. Our insurance subsidiaries are also subject to risk based capital (“RBC”) requirements that may further impact their ability to pay dividends. Our insurance subsidiaries’ statutory capital and surplus at December 31, 2014 exceeded the amount of statutory capital and surplus necessary to satisfy regulatory requirements, including the RBC requirements, by a significant margin. Amounts available for distribution to us as dividends from our insurance subsidiaries without prior approval of insurance regulatory authorities in 2015 are $19.1 million from Atlantic States, $1.0 million from Southern, $2.7 million from Le Mars, $4.2 million from Peninsula, $0 from Sheboygan and $4.2 million from MICO, or a total of approximately $31.2 million.
Effective May 31, 2004, we sold our retail affiliated broker-dealer operations to Linsco/Private Ledger Financial Services, or LPL. As part of the transaction, advisors affiliated with W.S. Griffith Securities, Inc., or Griffith, and Main Street Management Company, or Main Street, had the opportunity to move to LPL as independent registered representatives. Insurance and investment product fees, net of eliminations, for these operations were $32.0 million in 2004. Direct expenses, net of deferrals, for these operations were $38.7 million in 2004. There were no revenues and expenses for these operations included in our 2006 and 2005 consolidated financial statements.
On December 15, 2004, we repurchased $144.8 million of the previously $175.0 million outstanding principal amount of our 6.95% surplus notes scheduled to mature in 2006, and recognized a pre-tax loss of $10.4 million in connection with the transaction. To finance the tender, we issued $175.0 million principal of 7.15% surplus notes with a scheduled maturity of 30 years for proceeds of $171.6 million, net of discount and issue costs. The remaining 6.95% surplus notes were redeemed at maturity in December 2006.
Other intangible assets decreased 20% due to an impairment charge of $32.5 million and amortization of $32.0 million, partially offset by an additional intangible asset of $6.1 million related to our acquisition of the contract to manage the Insight Funds.
Commitments related to recent business combinations are not included in amounts presented in this table. See the discussion on the following pages.
In 2003, we acquired the remaining interest in PFG Holdings, Inc., or PFG, the holding company for our private placement operation, for initial consideration of $16.7 million. Under the terms of the purchase agreement, we may be obligated to pay additional consideration of up to $77.4 million to the selling shareholders, including $4.0 million during 2007 based on certain financial performance targets being met, and the balance in 2008 based on the appraised value of PFG as of December 31, 2007. During 2006, 2005 and 2004, we paid $0.0 million, $3.0 million and $3.0 million, respectively, under this obligation.
The changes in the projected benefit obligations of the employee plan and the supplemental plan at December 31, 2006 as compared to December 31, 2005 are principally the result of accrued service cost and interest cost.
The following is additional business segment information for the years ended December 31, 2013 and 2012 (in thousands):
The Specialty Commercial Segment reported a net loss ratio of 61.6% for 2012 as compared to 64.4% for 2011. The lower net loss ratio was due primarily to overall lower current accident year loss trends and favorable prior year development for the year ended December 31, 2012 of $3.6 million as compared to $2.4 million favorable prior year development for the same period of 2011.
Our sources of funds are from insurance-related operations, financing activities and investing activities. Major sources of funds from operations include premiums collected (net of policy cancellations and premiums ceded), commissions and processing and service fees. As a holding company, Hallmark is dependent on dividend payments and management fees from its subsidiaries to meet operating expenses and debt obligations. As of December 31, 2013, Hallmark had $8.1 million in unrestricted cash and invested assets. Unrestricted cash and invested assets of our non-insurance subsidiaries were $8.4 million as of December 31, 2013. As of that date, our insurance subsidiaries held $125.2 million of cash and cash equivalents as well as $410.1 million in debt securities with an average modified duration of 3.0 years. Accordingly, we do not anticipate selling long-term debt instruments to meet any liquidity needs.
Assurant Employee Benefits net income increased $14,128, or 41%, to $48,681 for Twelve Months 2014 from $34,553 for Twelve Months 2013. The increase was primarily attributable to favorable loss experience across all major product lines.
The discount rate is also a key sensitivity for group term life waiver of premium reserves (included within group term life reserves).
For preneed investment-type annuities, preneed life insurance policies with discretionary death benefit growth issued after January 1, 2009, universal life insurance policies, and investment-type annuity contracts that are no longer offered, DAC is amortized in proportion to the present value of estimated gross profits from investment, mortality, expense margins and surrender charges over the estimated life of the policy or contract. Estimated gross profits include the impact of unrealized gains or losses on investments as if these gains or losses had been realized, with corresponding credits or charges included in AOCI. The assumptions used for the estimates are consistent with those used in computing the policy or contract liabilities.
Our effective tax rate is based on income, non-taxable and non-deductible items, statutory tax rates and tax planning opportunities available in the various jurisdictions in which we operate. Inherent in determining our annual tax rate are judgments regarding business plans, planning opportunities and expectations about future outcomes. The dividend received deduction (“DRD”) is a major reason for the difference between the Company’s effective tax rate and the federal statutory rate of 35%. The DRD estimate incorporates the prior year results as well as the current year’s equity market performance. Both the current estimate of the DRD and the DRD in future periods can vary based on factors such as, but not limited to, changes in the amount of dividends received that are eligible for the DRD, changes in the amount of distributions received from underlying mutual fund investments, changes in the account balances of variable life and annuity contracts, and the Company’s taxable income before the DRD.
and the related amortization of DAC and other costs, for the year ended December 31, 2016:
(4) Represents risk margins and valuation methodology differences between the economic liability managed by the ALM strategy and the U.S. GAAP liability,
Effective and prudent liquidity and capital management is a priority across the organization. Management monitors the liquidity of Prudential Financial, Prudential Insurance and the Company on a daily basis and projects borrowing and capital needs over a multi-year time horizon through our periodic planning process. We believe that cash flows from the sources of funds available to us are sufficient to satisfy the current liquidity requirements of Prudential Financial, and the Company, including under reasonably foreseeable stress scenarios. Prudential Financial has a capital management framework in place that governs the allocation of capital and approval of capital uses. Prudential Financial and the Company also employ a “Capital Protection Framework” to ensure the availability of capital resources to maintain adequate capitalization and competitive risk-based capital (“RBC”) ratios under various stress scenarios.
The Trust considers all liquid investments purchased with an original maturity of three months or less to be cash equivalents.
The selected consolidated statements of operations data for the fiscal years ended December 31, 2015, 2014, 2013, 2012 and the period from October 6, 2011 (date of incorporation) to December 31, 2011, and the selected consolidated balance sheet data as of December 31, 2015, 2014, 2013, 2012 and 2011 have been derived from our audited consolidated financial statements. Our historical results are not necessarily indicative of the results that may be expected for any future period. The selected financial data should be read in conjunction with Part II,
Our investment strategy is implemented by our investment manager, Third Point LLC, under two long-term investment management contracts. We directly own the investments that are held in two separate accounts and managed by Third Point LLC on substantially the same basis as Third Point LLC’s main hedge funds.
year ended December 31, 2014 compared to the year ended December 31, 2013 was primarily due to net income during the year.
The following table sets forth net underwriting results and ratios, and the year over year changes for the Property and Casualty Reinsurance segment for the years ended December 31, 2015, 2014 and 2013:
For the years ended December 31, 2015, 2014 and 2013, we contributed $147.1 million, $163.0 million and $124.0 million, respectively, to our separate accounts managed by Third Point LLC from float generated from our reinsurance operations. These amounts do not correspond to the net cash provided by operating activities as presented in the consolidated statements of cash flows prepared in accordance with U.S. GAAP.
• changes in our processes which might accelerate or slow down the development and/or recording of paid or incurred claims;
Gross Premiums Written. Gross premiums written for the period were $86.6 million, comprising $10.9 million property, and $75.7 million liability.
At December 31, 1996, the Company s $11,629,224 of total assets calculated based on generally accepted accounting principles were distributed primarily as follows: 59 percent in cash and investments (including accrued investment income), 17 percent in receivables and reinsurance recoverables, 22 percent in intangibles and deferred policy acquisition costs and 2 percent in other assets.
Effect of Inflation ------------------- Inflation has not had, and is not expected to have, a material impact upon the Company s operations for the last three years.
Expenses. Expenses for the year ended December 31, 2020 and 2019 are summarized in the table below.
Equity securities, at fair value: As of December 31, 2020, we had available for sale equity assets of $9,221,574, a decrease of $919,929 or 9% from the December 31, 2019 balance of $10,141,503. This decrease is the result of repositioning within our investment portfolio.
Goodwill: As of December 31, 2020 and 2019, our goodwill was $277,542. Goodwill was established as a result of our merger with NPCC. We have determined that there has been no impairment to our goodwill balance.
Accounts payable and accrued expenses: As of December 31, 2020, our accounts payable and accrued expenses were $1,507,756 compared to $122,981 as of December 31, 2019, an increase of $1,384,775 or 1126%. The increase is driven by a payable to ALSC related to the partial termination of our 2017 ALSC Agreement.
We hold a diversified portfolio of investments that primarily includes cash, bonds, equity securities, mortgage loans, and funds withheld under the 2020 ALSC Agreement. Each of these investments is subject to market risks that can affect their return and their fair value. A significant percentage of the investments are fixed maturity securities including debt issues of corporations, US Treasury securities, or securities issued by government agencies. The primary market risks affecting the investment portfolio are interest rate risk, credit risk, and equity risk. The Company's investment portfolio, including the creditworthiness and valuation of investment assets, as well as availability of new investments may be adversely affected as a result of market developments related to the COVID-19 pandemic and uncertainty regarding its ultimate severity and duration.
Leased Properties. The Company leases space for its principal offices and for some of its insurance operations in an office building located in Atlanta, Georgia, from Delta Life Insurance Company, under leases which expire at various times from May 31, 2002 to July 31, 2005. Under the current terms of the leases, the Company occupies approximately 65,489 square feet of office space. Delta Life Insurance Company, the owner of the building, is controlled by J. Mack Robinson, Chairman of the Board of Directors and the largest shareholder of the Company. The terms of the leases are believed by Company management to be comparable to terms which could be obtained by the Company from unrelated parties for comparable rental property.
Investment income for 2001 of $14.3 million decreased $1.2 million or 7.9% from 2000. The decrease in investment income is primarily attributable to falling interest rates. The decline in interest rates resulted in several of the Company’s higher yielding callable fixed income securities to be redeemed by the issuers prior to maturity. The proceeds received from the early redemption of these fixed income securities was reinvested at a lower yield. In addition, during 2001, the carrying value of the Company’s investment in the joint venture with the AAA of the Carolinas, was reduced by $0.2 million to reflect lower than expected premium production and higher expenses. Also contributing to the decrease in 2001 was a significant gain in a real estate partnership the Company benefited from during 2000. The investment, which is accounted for under the equity method, sold several pieces of property resulting in income of approximately $0.4 million.
The weighted average fair value of options granted is estimated on the date of grant using the Black-Scholes option pricing model and was $.95 and $1.63 for grants in 2001 and 2000, respectively. Fair value determinations were based on expected dividend yields of zero, expected lives of 5 or 10 years, risk free interest rates of 4.49% and 4.99%, and expected volatility of 64.99% and 52.77%, for the years ended December 31, 2001 and 2000, respectively.
The Company’s primary insurance subsidiaries operate with relative autonomy and each company is evaluated based on its individual performance. American Southern, Association Casualty, and Georgia Casualty operate in the Property and Casualty insurance market, while Bankers Fidelity operates in the Life and Health insurance market. All segments derive revenue from the collection of premiums, as well as from investment income. Substantially all revenue other than those in the corporate and other segment are from external sources. One account at American Southern, with the State of South Carolina, accounted for approximately $14,054, $17,198, and $15,064 of total revenue in 2001, 2000 and 1999, respectively.
Results of Operations - Years Ended December 31, 2016 and 2015
Management believes that the Company will fully recover its cost basis in the securities held as of December 31, 2016, and management does not have the intent to sell nor is it more likely than not that the Company will be required to sell such securities until they recover or mature. The temporary impairments shown herein are primarily the result of the current interest rate environment rather than credit factors that would imply other-than-temporary impairment.
NATURE OF OPERATIONS Protective provides financial services through the production, distribution, and administration of insurance and investment products. Protective markets individual life insurance, dental insurance and managed care services, credit life and disability insurance, guaranteed investment contracts, guaranteed funding agreements, and fixed and variable annuities throughout the United States. Protective also maintains a separate division devoted exclusively to the acquisition of insurance policies from other companies.
DERIVATIVE FINANCIAL INSTRUMENTS Protective does not use derivative financial instruments for trading purposes. Combinations of swaps, futures contracts and options on treasury notes are currently being used as hedges for asset/liability management of certain investments, primarily mortgage loans on real estate, mortgage-backed securities, and liabilities arising from interest-sensitive products such as guaranteed investment contracts and individual annuities. Realized investment gains and losses on such contracts are deferred and amortized over the life of the hedged asset. No realized investment gains or losses were deferred in 1998. Net realized gains of $1.5 million were deferred in 1997. At December 31, 1998 and 1997, options and open futures contracts with notional amounts of $975.0 million and $925.0 million, respectively, had net unrealized losses of $0.5 million and $0.4 million respectively.
RECLASSIFICATIONS Certain reclassifications have been made in the previously reported financial statements and accompanying notes to make the prior year amounts comparable to those of the current year. Such reclassifications had no effect on net income, total assets, or share-owner's equity.
1998 1997 1996 ---- ---- ---- Fixed maturities................ $(21,705) $72,741 $(56,898) Equity securities............... 4,605 (8,813) $ 207
Individual Life Division. The Individual Life Division markets universal life, variable universal life, and level premium term and term-like insurance products on a national basis through a network of independent insurance agents.
Guaranteed Investment Contracts Division. The Guaranteed Investment Contracts ("GIC") Division markets GICs to 401(k) and other qualified retirement savings plans. The Division also offers related products, including fixed and floating rate funding agreements offered to the trustees of municipal bond proceeds, bank trust departments, and money market funds, and long-term annuity contracts offered to fund certain state obligations.
We entered into a one year $250 million letter of credit facility on December 30, 2003 with a syndicate of banks lead by Sun Trust Bank as the issuing bank. The facility is fully allocated to provide collateral with respect to amounts due from foreign reinsurers to prevent a reduction in statutory capital in certain of our domestic insurance subsidiaries.