felanders/preprocessed huggingface dataset:
In connection with the Company's attempts to reduce administrative costs under the Turnaround Plan, the Company decided to consolidate operations and reduce its occupied square footage from approximately 2,000,000 square feet under lease to approximately 1,200,000 square feet. Additionally, the Company anticipated and experienced a reduction in workforce of over 1,000 employees as a result of this consolidation and its administrative expense reduction plan. A reserve of approximately $29.3 million, against approximately $37.1 million of net book value, was established for the estimated unrecoverable book value of furniture and equipment and leasehold improvements no longer in use as a result of these steps. Estimated recoveries were determined by the Company based upon a specific review of the relevant fixed assets and the Company's prior experience in connection with past dispositions of similar assets. The effect of this write-down was to reduce depreciation expense by approximately $6.3 million for the second half of 1998. The Company expects these activities to be completed over the next 18 to 24 months.
incurred losses. The Company has attempted to increase its premium rates based on current estimates of medical costs. Renewals and new enrollments in the Company's core commercial group business for January 1, 1999 received an average price increase estimated at 9.8%. The Company recently filed with the NYSID for a 9.8% rate increase for the New York Individual Plans, effective April 1, 1999. The Company's commercial revenue in 1999 will be adversely affected by the Company's disposition or withdrawal from noncore commercial markets in Pennsylvania, Illinois, Florida and New Hampshire. In addition, the Company experienced attrition of commercial members in its core commercial markets in 1998 and expects such attrition to continue in 1999, adversely affecting revenue.
The provision for credit losses for the year ended December 31, 1998 was $3,942,000 as compared to $12,456,000 in the prior year, a decrease of $8,514,000. This provision is the result of our recording additional credit losses based upon an increase in delinquency rates, the higher than anticipated level of repossessions and the poor performance of loans originated by specific independent automobile dealers.
Interest expense for the year ended December 31, 1997 was $8,146,000 as compared to $3,990,000 in the prior year. Interest expenses was primarily related to the non-prime automobile financing business and the debt outstanding under our senior credit facilities ($67.9 million as of December 31, 1997), securitized notes ($14.1 million as of December 31, 1997) and subordinated and other debt ($11.2 million as of December 31, 1997). The increase in interest expense of $4,156,000 is directly related to the growth of the automobile receivables portfolio acquired and serviced by us.
The loss from operations before income tax benefit was $15,108,000 as compared to a loss of $23,452,000 in the prior year. This loss is primarily attributable to the provision for credit losses ($12.5 million). The decrease in the loss from operations of $8,344,000 is directly related to the write-off of goodwill and other intangible assets ($11.2 million) and the additional provision for credit losses on the acquired portfolio ($8.1 million) for the year ended December 31, 1996.
For the fiscal years ended May 31, 1995, 1994 and 1993, we incurred and paid federal tax liabilities of $7,005,000, $873,000 and $783,000, respectively. As a result of tax losses incurred, we recorded an income tax benefit of $3,986,000 for the year ended December 31, 1997 and $4,352,000 for the year ended December 31, 1996. The current year benefit consists of a carryback claim of $575,000 filed and received for the tax year ended May 31, 1997 and an anticipated carryback claim of $3,411,000. The income tax benefit of $4,352,000 for the year ended December 31, 1996 was received in 1997.
At December 31, 1999, we had liquid assets amounted to $1.0 million.
(2) Represents property owned in fee by Continental's subsidiaries and held subject to mortgages. (See Note 7 to Consolidated Financial Statements included in Continental's 1993 Annual Report to Shareholders.)
The standard update amends the revenue recognition guidance in ASU 2014-09 related to transition, collectability, noncash consideration and the presentation of sales and other similar taxes. The amendments clarify that, for a contract to be considered completed at transition, substantially all of the revenue must have been recognized under current GAAP. The amendments also clarify how an entity should evaluate the collectability threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard’s contract criteria. Transition requirements are consistent with ASU 2014-09.
We will amend classifications in our Consolidated Statements of Cash Flows upon adoption of this ASU.
On July 16, 2015, we closed on the sale of Lincoln Financial Media Company to Entercom Communications Corp. (“Entercom Parent”) and Entercom Radio, LLC. We received $75 million in cash, net of transaction expenses, and $28 million face amount of perpetual cumulative convertible preferred stock of Entercom Parent. During 2015, we recognized a loss of $2 million, after-tax, reflected within income (loss) from continuing operations on our Consolidated Statements of Comprehensive Income (Loss) related to finalizing the transaction.
Account balances of variable annuity contracts, including those with guarantees, (in millions) were invested in separate account investment options as follows:
The following summarizes transactions with affiliates (in millions) and the associated line item on our Consolidated Statements of Comprehensive Income (Loss):
Consolidated Statements of Operations for the Years Ended December 31, 2020 and 2019
LOSS RATIO - The consolidated loss ratio represents the ratio of medical and other benefits to premium revenue for the Company on a consolidated basis, and is therefore a blended ratio for medical, life, dental, disability and other product lines. The consolidated loss ratio was 80.3% in 1997 compared with 82.4% in 1996 and 83.8% in 1995. The consolidated loss ratio is influenced by the component loss ratio for each of the Company's primary product lines, as discussed below.
From time to time, the Company makes capital contributions to its subsidiaries to assist them in maintaining appropriate levels of capital and surplus for regulatory and rating purposes. Insurance subsidiaries are required to maintain certain levels of statutory capital and surplus. In Wisconsin, where a large percentage of the Company's premium is written, these levels are based upon the amount and type of premiums written and are calculated separately for each subsidiary. As of the balance sheet date presented, statutory capital and surplus for each of these insurance subsidiaries exceeded required levels.
United Wisconsin Services, Inc. (the Company) is a leading provider of managed health care services and employee benefit products. The Company's three primary product lines are (i) Health Maintenance Organization (HMO) products, sold primarily in Wisconsin; (ii) American Medical Security (AMS) products, including small group preferred provider organization (PPO) products and life products, sold throughout the United States; and (iii) specialty managed care products and services, including dental, life, disability, workers' compensation, managed care consulting, electronic claims processing, pharmaceutical services and managed mental health services, sold throughout the United States.
The Company and several subsidiaries participate with BCBSUW in a bank line of credit, which permits aggregate borrowings to $30,000,000. Periodic borrowings have been made on this line of credit. The outstanding line of credit balance was $1,200,000 at December 31, 1996 and is included in other current liabilities. There was no balance outstanding at December 31, 1997.
Future policy benefit reserves increased $8,198,243 in 1996, compared to $11,033,763 in 1995 and $11,910,751 in 1994. Increased surrender activity during the year was the primary reason for the lower reserve increase in 1996. The decreased production in 1995, coupled with lower reserves as a result of a lower capitalization rate on policy acquisition costs, along with higher surrender activity in the international market as a result of the disruption described above, were the reasons for
We are an insurance company owned by approximately 2,400 accounting firms and persons associated with accounting firms. We were formed in response to concerns about the pricing and availability of accountants’ professional liability insurance in a difficult or “hard” market. Our primary mission is to exert a stabilizing influence on the design, pricing and availability of professional liability insurance for the benefit of our shareholders; to reduce the likelihood of a hard market. We have sufficient capital, licenses and registrations to step into a hard market and act as a direct issuer of accountants’ professional liability insurance policies.
As of December 31, 2003, total invested assets amounted to $52,437,053, an increase of $6,169,747 or 13.3% from $46,267,306 at December 31, 2002. Cash balances decreased from $3,159,545 at December 31, 2002 to $2,180,042 at December 31, 2003. The amount of cash and cash equivalents varies depending on the maturities of fixed term investments and on the level of funds invested in money market mutual funds. Our liability for unpaid losses and loss adjustment expenses at December 31, 2003 was $28,726,634. We maintain fixed income securities and cash balances sufficient to meet the unpaid loss and loss adjustment expense amount.
In preparing ultimate loss and allocated loss adjustment expenses, the Company’s actuary examined a variety of methods. The actuary applied traditional loss development and generalized “Cape Cod” methods separately to case incurred loss and allocated loss adjustment expense data and to paid loss and allocated loss adjustment expense data. As noted above, separate calculations were done for the value and non-value plans.
However, in recognition of the fact that, as more historical information becomes available, losses will become more predictable, management has implemented a transition plan to bring our loss reserves for a policy year to the actuary’s middle estimate over the five succeeding years.
AmerInst Insurance Group, Ltd., (“AMIG Ltd.” or the “Company”) was formed under the laws of Bermuda on July 16, 1998. The Company, through its wholly-owned subsidiary AmerInst Insurance Company Ltd. (AMIC Ltd.) and its predecessor, has been engaged in the reinsurance of claims-made insurance policies of participants in an AICPA - endorsed insurance program that provides accountants’ professional liability insurance coverage (AICPA Plan). In 1999, as part of the redomestication and restructuring, AMIC Ltd. assumed the rights and obligations of AIIC Inc. under the reinsurance agreements.
The revenues and expenses of the Property and Casualty Companies segment will not be comparable to the amounts reported previously by Holding. Historically, the commission income of the Program Brokerage Business was recorded as a reduction of acquisition costs in the consolidated statements of income of Holding. As a result of the combination (see Note 2 to the consolidated financial statements of the Company), management includes the commission income and the other revenues and operating costs of the Program Brokerage Business in the Insurance Brokerage Companies segment for all periods presented.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) addresses the financial condition of American Skandia Life Assurance Corporation as of December 31, 2005, compared with December 31, 2004, and its results of operations for the years ended December 31, 2005 and 2004.
Policy charges and fee income increased by $79.0 million, from $358.5 million in 2004 to $437.5 million in 2005. Mortality and expense charges increased by $48.3 million as a result of the increase in the inforce business and market appreciation. Annuity fees are mainly asset-based fees, which are dependent on fund balances. Average annuity separate account fund balances have increased as a result of market appreciation and positive net flows, resulting in an increase in policy charges and fee income. Additionally, the change in realized market value adjustments related to the Company’s fixed, market value adjusted investment option (“MVA option”) was $33.0 million higher compared to the prior year. Also contributing to the variance was $2.6 million of higher surrender charges during the current year. Partially offsetting this increase was a decrease in annual contractholder charges of $7.5 million driven by an adjustment to account for annual contractholder charges on an assessed basis.
Our accounting and reporting policies are in accordance with generally accepted accounting principles (GAAP) in the United States of America. Preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The following a summary of our significant accounting policies and estimates. These accounting policies inherently require significant judgment and assumptions and actual operating results could differ significantly from management’s estimates determined using these policies. We believe the following accounting policies, judgments and estimates are the most critical to the understanding of our results of operations and financial position. A detailed discussion of significant accounting policies is provided in this report in Note 1 - Nature of Operations and Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in this Report.
Goodwill represents the excess of the amounts paid to acquire other businesses over the fair value of their net assets at the date of acquisition. Goodwill is tested for impairment at least annually in the fourth quarter or more frequently if events or circumstances change that would indicate that a triggering event has occurred.
Reflecting the quality of securities maintained by us, 97.6% and 98.8% of all fixed maturity securities were investment grade as of December 31, 2016 and 2015, respectively. Due to the low interest rate environment, we have invested in bonds with “A” ratings at the time the investment was made.
Our persistency experience, which affects our ability to recover the cost of acquiring new business over the lives of the contracts;
Our ability to generate favorable investment results through asset liability management and strategic and tactical asset allocation;
Our accounting represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. Certain changes or future events, such as changes in tax legislation, geographic mix of earnings and completion of tax audits could have an impact on our estimates and effective tax rate. For example, the dividends received deduction, or DRD, reduces the amount of dividend income subject to tax and is a significant component of the difference between our actual tax expense and the expected amount determined using the federal statutory tax rate of 35%. The U.S. Treasury Department and the Internal Revenue Service, or IRS, intend to address through regulations the methodology to be followed in determining the DRD related to variable life insurance and annuity contracts. A change in the DRD, including the possible retroactive or prospective elimination of this deduction through regulations or legislation, could increase our actual tax expense and reduce our net income.
As discussed above, market conditions during 2008 negatively impacted the level of our capital. In order to address these impacts on our capital, Prudential Financial made capital contributions to certain domestic insurance subsidiaries, including the Company, which was subsequently used to repay portions of our outstanding loans with Prudential Financial.
sales, it is unclear what effect ongoing economic and political challenges may have upon future business levels.
Net realized investment gains (losses) - Realized gains (losses) on investments include impairment write-downs on real estate and investments in debt securities as well as valuation allowances recorded on mortgage loans. The net investment gains reported in 2011 consisted of gross gains of $7.7 million, primarily from calls and sales of debt securities, offset by gross losses of $1.7 million, which include other-than-temporary impairment losses.
Mortgage and other loans were modeled by discounting scheduled cash flows through the scheduled maturities of the loans, starting with interest rates currently being offered for similar loans to borrowers with similar credit ratings. Policy loans were modeled by discounting estimated cash flows using U.S. Treasury Bill interest rates as the base rates at December 31, 2011. The estimated cash flows include assumptions as to whether such loans will be repaid by the policyholders or settled upon payment of death or surrender benefits on the underlying insurance contracts and incorporate both Company experience and mortality assumptions associated with such contracts.
On April 9, 2009, the FASB issued new guidance which amended the other-than-temporary impairment guidance for debt securities to make the guidance more operational, and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. It did not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. This guidance was effective for the Company as of June 30, 2009. The impact of its adoption is discussed in Note 3, Investments, of the accompanying consolidated financial statements.
We have audited the accompanying consolidated balance sheets of Sundance Strategies, Inc. (“the Company”) as of March 31, 2020 and 2019, the related consolidated statements of operations, stockholders’ deficit, and cash flows for each of the years in the two-year period ended March 31, 2020 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of March 31, 2020 and 2019 and the results of its operations and its cash flows for each of the years in the two-year period ended March 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
At March 31, 2020 and 2019, the Company had fully impaired the Investment in NIBs, and the value of those assets were zero.
The amortization of policy acquisition costs as a percentage of premium was 15% in 2001 compared to 12% in 2000 and 13% in 1999. The amortization of policy acquisition costs for 2000 reflected a favorable adjustment from updating actuarial assumptions. This adjustment represented the slow down of amortization as a result of higher estimated future profits from the improvement in mortality levels on universal life products. The after tax effect on net income for 2000 was $429,000 and $.07 per share. Amortization in 2001 reflects higher lapses in the traditional lines of business which reflects increased term rate competition in the market place.
Despite continued growth in premiums and more normal annual expense and mortality costs, 2001 results reflect higher mortality experienced in the first quarter in comparison to the prior year, resulting in a decrease in the Company's net income. In addition, 2000 results reflect a favorable adjustment to the amortization of policy acquisition costs resulting from updating actuarial assumptions.
The Company applies the intrinsic value-based method of accounting prescribed by Accounting Principles Board ("APB") Opinion No. 25, Accounting for Stock Issued to Employees, and related interpretations in accounting for its stock based compensation. As such, compensation expense would generally only be recorded if the current market price of the underlying stock on the date of grant exceeded the exercise price.
Financial Accounting Standards Board ("FASB") SFAS No. 133, as amended, Accounting for Derivative Instruments and Hedging Activities, became effective beginning January 1, 2001. However, due to the Company's limited use of derivative financial instruments, SFAS No. 133 had no impact on the Company's consolidated financial position, results of operations or cash flows.
The Company expensed pension costs of $93,347 in 2001, $61,645 in 2000, and $63,354 in 1999.
Selected consolidated financial data for the Company are presented below for each of the five years in the period ended December 31, 2000. This data should be read in conjunction with the Company´s Consolidated Financial Statements and notes thereto and Item 7, Management´s Discussion and Analysis of Results of Operations and Financial Condition.
materially from forward-looking statements may depend on numerous foreseeable and unforeseeable developments. Some may be national in scope, such as general economic conditions, changes in tax law and changes in interest rates. Some may be related to the insurance industry generally, such as pricing competition, regulatory developments and industry consolidation. Others may relate to the Company specifically, such as credit, volatility and other risks associated with the Company´s investment portfolio. The Company disclaims any obligation to update forward-looking information.
Net investment income increased 24.2%, to $8,089,000 in 1995, from $6,514,000 in 1994. The average invested assets of $138,100,000 for the year ended December 31, 1995, increased 6.5% over 1994. The increase in invested assets was the result of funds received from the sale of debentures and the commutation of the aggregate excess of loss and quota share reinsurance treaties during the third and fourth quarters of 1994. The average yield on average invested assets increased to 6.0% for the year ended December 31, 1995, from 5.0% for 1994. Prior to the increase in invested assets, the Company maintained a large position in lower-yielding short-term securities, for liquidity purposes, which accounts for the lower overall average yield in 1994. After the Company was able to reposition its investment portfolio into longer term, higher yielding securities, by October 1994, the Company's investment yield increased to 5.7% for the fourth quarter of 1994.
Policyholder dividends decreased to $132,000 for the year ended December 31, 1995, from $1,301,000 for the year ended December 31, 1994. In determining the appropriate policyholder dividend accrual level, the Company analyzes competitive factors related to quality of service, loss prevention, claims management and cost control, and adequacy of premium rates, as well as its own underwriting results. The Company believes that given the decrease in premium rate levels, California policyholders already have benefited from reduced workers' compensation premiums. Thus, the importance of dividends to policyholders has diminished in the competitive market.
Inflation can be expected to affect the operating performance and financial condition of the Company in several aspects. Inflation can reduce the market value of the investment portfolio. However, generally the intent of the Company is to hold its investments to maturity. (See "Liquidity and Capital Resources") Inflation adversely affects the portion of reserve for losses and LAE that relates to hospital and medical expenses, as these expenses normally increase during inflationary periods (and in recent years have increased at a greater rate than prevailing inflation). The liabilities for losses and LAE relating to indemnity benefits for lost wages are not directly affected by inflation, as these amounts are established by statute. To the extent that the reserve for losses and LAE and claim payments have increased as a result of inflation, premium rates have historically increased by operation of the rate setting process. This process established the minimum rates in effect in California prior to January 1, 1995. However, no assurance can be given that following the introduction of open premium rating in California effective January 1, 1995, premium rates will keep pace with inflation. Another result of inflation is an expected escalation of wages paid to employees. To the extent that wages increase, premium revenues will proportionately increase, since rates are based on the employer's payroll. Since the Company's inception in May 1987, the Company believes that the effect of inflation on the Company has not been material.
Rent from properties was $21,582,968 in 1997, a decrease of $1,216,726 from $22,799,694 in 1996.
The shopping center was 96% occupied as of December 31, 1997, unchanged from the prior year. Currently, there are three vacant suites. All vacant spaces are being marketed.
The Partnership's sole retail property in Roswell, GA, had an unrealized loss of $3,786,554 (11.8% of its December 31, 1995 value). This was due to increased competition in the local market resulting in downward pressure on rental rates and occupancy.
Benefits, Claims and Other Deductions. Total benefits, claims and other deductions increased approximately $19,340,000 to $45,795,000 for the year ended December 31, 1994. The change in future policy benefits amounted to an increase of approximately $3,938,000, which is the result of the increase in health insurance writings in American Progressive. Claims and other benefits increased approximately $6,939,000. The most significant component of this increase is the inclusion of claims of American Pioneer, which amounted to approximately $3,994,000. The remaining increase of $2,945,000 is a result of the increase in health premiums of American Progressive noted above. The increase in deferred acquisition costs increased approximately $1,594,000 due to the inclusion of American Pioneer and the increase in new business production at American Progressive.
Other operating costs and expenses increased approximately $10,613,000. As a result of the transaction with HAT discussed below (See "--Liquidity and Capital Resources--WorldNet"), the Company decided to discontinue the operations of its subsidiary, WorldNet Services Corp., a Texas corporation ("WorldNet-Texas"), effective August 31, 1994. The loss incurred for the disposal of WorldNet-Texas amounted to approximately $500,000 ($0.05 per share), which primarily consisted of employee severance and employee relocation. Expenses incurred by American Pioneer during 1994 exceeded the 1993 amount by approximately $4,773,000. The remaining increase of $5,840,000 results from an increase of continuing operation expenses incurred by WorldNet as a result of increased revenues (approximately $2,575,000), American Progressive (approximately $3,038,000) and the Parent Company (approximately $226,000). The increase in expenses at American Progressive was primarily attributable to increased business. Commission and new business expenses and premium taxes increased approximately $3,172,000, while the general overhead expenses decreased approximately $134,000.
o Debt securities that the Company has the positive intent and the ability to hold to maturity would be classified as "held to maturity" and reported at amortized cost.
INCOME TAX EXPENSE totaled $12.1 million in 1998, compared with $5.1 million in 1997 and $0.4 million in 1996, representing effective tax rates of 42% in 1998, 37% in 1997 and 38% in 1996. The increase in the tax rate for 1998 is due to an increase in state income taxes.
The 1993 Consolidated Financial Statements and the report of the registrant's independent auditors and the unaudited information set forth under the caption "Quarterly Data" is incorporated herein by reference to the Annual Report.
available information. However, there can be no guarantee that the systems of other companies on which the Company's systems rely will be timely converted, or that a failure to convert by another company, or a conversion that is incompatible with the Company's systems, would not have material adverse effect on the Company. The Company does not believe that it has material exposure to contingencies related to the Year 2000 Issue for the products it has sold. Although the Company does not believe that there is a material contingency associated with the Year 2000 project, there can be no assurance that exposure for material contingencies will not arise.
business assumed. Unearned premiums at December 31, 1997 and 1996, include $5.0 million and $4.1 million, respectively, and reserve for losses and LAE at December 31, 1997 and 1996, include $24.5 million and $22.9 million, respectively, from Hanover assumed business.
Under the American Agrisurance profit sharing agreement, American Agrisurance receives up to 50% of the crop insurance profit after expenses and a margin retained by the Insurance Companies based upon a formula established by the Company and approved by the Nebraska Department of Insurance. If the calculated profit share is negative, such negative amounts are carried forward and offset future profit sharing payments. For the year ended December 31, 1998 and 1997, American Agrisurance recorded $13.2 million and $12.4 million, net of tax, related to the profit sharing agreement. These amounts were distributed in the form of a dividend to the Company.
The international property/casualty operations write quota-share and excess reinsurance on risks around the world, with its largest markets in Continental Europe and the United Kingdom. International property/casualty business is written on a direct reinsurance basis primarily through Cologne Re.
At December 31, 2003, the international property/casualty operations had gross loss reserves of $6.4 billion, ($6.0 billion net of reinsurance) compared to $5.4 billion in gross loss reserves at December 31, 2002 ($5.1 billion net of reinsurance). The increase in reserves during 2003 was primarily due to changes in foreign currency rates. The overall economic effect of foreign currency changes were mitigated because foreign denominated liabilities are largely offset by assets denominated in those currencies.
BHRG, as a matter of general practice, does not cede catastrophe and individual risks to other reinsurers due to the uncertainty of collecting recoverable losses ceded to financially weaker companies if a natural or financial mega-catastrophe should occur. Underwriting results of this business will remain subject to extreme volatility. Nevertheless, Berkshire’s management remains willing to accept such volatility provided there is a reasonable prospect of long-term underwriting profitability.
Bank borrowings due 2006 relate to Berkadia LLC’s (“Berkadia”) floating rate loan to FINOVA Capital Corporation, a subsidiary of The FINOVA Group (“FNV”) in connection with a restructuring of all of that entity’s then outstanding bank debt and publicly traded debt securities in August 2001. Berkadia financed the entire loan to FNV ($5.6 billion) through a floating rate loan from a third party lending facility led by Fleet Bank (“Fleet Loan”), which is secured by the FNV loan. Subsequent to December 31, 2003, FNV repaid the entire remaining principal amount on the loan and Berkadia has fully repaid the Fleet Loan.
Management's Discussion and Analysis of Results of Operations and Financial Condition in the 1995 Annual Report to Shareholders is incorporated herein by reference.
The Company's debt currently consists primarily of a mortgage note in the approximate amount of $2,000,000 and $74,750,000 in convertible subordinated debt. The convertible debt, issued in November 1996, is convertible at $28.44 per share until November 2003. The debt carries a fixed interest coupon of 6.25%, payable semi-annually. The mortgage note is currently amortized over 12 years, and has a balloon payment due on the remaining outstanding balance in September 1998.
The effective tax rate was 30.9% for both 2002 and 2001. Management expects the Company's effective tax rate to remain at about the same annual rate as long as yields from new funds invested in tax-preferred securities remain favorable in relation to fully taxable securities.
Our investment portfolio consists of public and private fixed maturity securities, commercial mortgage loans, equity securities, derivative financial instruments, and other long-term investments. Derivatives are financial instruments whose values are derived from interest rates, foreign exchange rates, financial indices or the values of securities. Derivative financial instruments we generally use include swaps, options, forwards, and futures which are contracted over-the-counter with an affiliate. We are also party to financial instruments that contain derivative instruments that are “embedded” in the financial instruments. Management believes the following accounting policies related to investments, including derivatives, are most dependent on the application of estimates and assumptions. Each of these policies is discussed further within other relevant disclosures related to the investments and derivatives, as referenced below.
Our accounting represents management’s best estimate of future events that can be appropriately reflected in the accounting estimates. Certain changes or future events, such as changes in tax legislation, geographic mix of earnings and completion of tax audits could have an impact on our estimates and effective tax rate. For example, the dividends received deduction, or DRD, reduces the amount of dividend income subject to tax and is
Partially offsetting these items was a $29 million unfavorable variance related to adjustments to the reserves for the guaranteed minimum death and income benefit features of our variable annuity products and to our estimate of total gross profits used as a basis for amortizing DAC/DSI. These adjustments are discussed in more detail below. Also serving as a partial offset was a $43 million increase in general and administrative expenses, primarily driven by higher marketing and new business support expenses driven by higher sales due to the implementation of the aforementioned change in sales strategy.
Gross account withdrawals amounted to approximately $2.3 billion and $1.3 billion for the years ended December 31, 2010 and 2009, respectively. Because these withdrawals were consistent with our assumptions in asset/liability management, the associated cash outflows did not have a material adverse impact on our overall liquidity.
A net loss of $1,438,024 was reported in 1999, compared to net income of $1,061,530 in 1998. Net income for 1998 decreased by 28.4% from $1,482,332 reported in 1997. The net loss is primarily due to a strengthening of loss reserves in the current year, as well as the write off of the deferred tax asset which will not be utilized as a result of the redomestication to Bermuda.
Average invested assets including cash equivalents increased by $409,359 or 1.0% to $44,408,812 in 1999 compared to $43,999,453 in 1998. 1998 average invested assets increased by 4.9% from $41,374,745 in 1997. Investment yield including realized capital gains and losses in 1999 was 6.1% as compared to 5.6% in 1998 and 6.2% in 1997. Excluding realized gains and losses, the yield was 5.2% in 1999, 5.1% in 1998 and 5.5% in 1997. The decrease in investment yield from 1997 to 1998, excluding realized gains and losses, is primarily attributable to an increase in holdings of tax free municipal securities and an increase in equity securities which generate less realized investment income. In 1999, due to the redomestication of the Company, most of the tax free municipal securities were sold.
As is customary in the business, an actuarial review and projection is performed for AIC by its independent actuary as of September 30 and December 31 of each year. Those projections are not adjusted for the first three quarters, but are adjusted at year-end.
We are a rapidly growing personal lines independent insurance agency, reinventing the traditional approach to distributing personal lines products and services throughout the United States. We were founded with one vision in mind-to provide consumers with superior insurance coverage at the best available price and in a timely manner. By leveraging our differentiated business model and innovative technology platform, we are able to deliver to consumers a superior insurance experience.
Policies in Force increased 47% from December 31, 2017 to 334 thousand at December 31, 2018
Cost of being a public company. To operate as a public company, we will be required to continue to implement changes in certain aspects of our business and develop, manage, and train management level and other employees to comply with on-going public company requirements. We will also incur new expenses as a public company, including public reporting obligations, proxy statements, stockholder meetings, stock exchange fees and transfer agent fees.
We are a distributor of insurance policies in a range of lines of business including homeowner’s insurance, automotive, dwelling property insurance, flood, wind and earthquake insurance, excess liability or umbrella insurance, specialty lines insurance (motorcycle, recreational vehicle, and other insurance), commercial lines insurance (general liability, property and auto insurance for small businesses) and life insurance. The following table sets forth our Total Written Premium placed by line of business by amount and as a percentage of our Total Written Premium for the periods indicated (in thousands):
In select states, agents have the option to charge an agency fee for the placement of the insurance policy. The income statement and balance sheet effect of these non-refundable fees are recorded on the date the policy is placed with the insurance carrier.
The following table sets forth certain selected consolidated operating and balance sheet data for each of the five years in the period ending December 31, 1996. This data should be read in conjunction with the financial statements and accompanying notes included elsewhere herein. The consolidated financial statements for the years ended December 31, 1996, 1995, 1994 and 1993 have been audited by Coopers & Lybrand, L.L.P., independent accountants. The consolidated financial statement for the year ended December 31, 1992 was audited by BDO Seidman, independent accountants.
Deferred policy acquisition cost amortization. Policy acquisition cost amortization decreased $86.3 million for the twelve months ended December 31, 2013 compared with the twelve months ended December 31, 2012. The decrease in amortization is primarily attributable to a positive unlock impact as a result of the annual comprehensive review of assumptions in the fourth quarter of 2013. For the twelve months ended December 31, 2013 the unlock resulted in a reduction to amortization of $17.7 million, while for the twelve months ended December 31, 2012 the unlock resulted in an additional $55.2 million worth of amortization. The most significant driver of the positive 2013 unlock results was the incorporation of a mortality improvement assumption in the overall mortality table, which resulted in improved expected mortality on universal life and variable universal life products.
Policy benefits decreased $139.6 million for the twelve months ended December 31, 2013 compared with the twelve months ended December 31, 2012. The decrease in policy benefit expenses is primarily due to gains on guaranteed insurance benefit liabilities and reserves for profits followed by losses of $121.0 million as a result of assumption changes made during the annual comprehensive review of assumptions in the fourth quarter of 2013. The most significant driver of the positive 2013 unlock results was the incorporation of a mortality improvement assumption in the overall mortality table, which resulted in improved expected mortality on universal life and variable universal life products.
Premium revenue decreased $46.4 million in the twelve months ended December 31, 2012 compared with the twelve months ended December 31, 2011 as a result of lower renewal premiums within the closed block and lower paid up additions on policies within the closed block which were principally due to a change in the dividend scale in 2011.
Fees on our life and annuity products decreased $40.6 million in the twelve months ended December 31, 2012 compared with the twelve months ended December 31, 2011. Lower fees were primarily a result of COI charges which decreased $39.6 million related to declining universal life and variable universal life insurance in force. In addition, investment fees decreased during 2012 compared with 2011 due to the sale of Goodwin Capital Advisers, Inc. during the fourth quarter of 2011. Partially offsetting these declines were higher fees related to an increase in outstanding annuity policies.
Separate account assets and liabilities increased as a result of market performance of the assets, which were partially offset by policyholder withdrawals.
Annuity funds on deposit increased $546.7 million during the year ended December 31, 2012 compared to an increase of $412.1 million during the year ended December 31, 2011. The increase in 2012 was driven by stronger market performance partially offset by lower fixed indexed annuity product sales and higher surrenders.
Through its membership in the Federal Home Loan Bank ("FHLB") of Des Moines, AmerUs Life is eligible to borrow on a line of credit available to provide it additional liquidity. Interest is payable at a current rate at the time of any advance. As of December 31, 1997, AmerUs Life had a $25.0 million open secured line of credit against which there were no borrowings. In addition to the line of credit, AmerUs Life has long-term advances from the FHLB outstanding of $16.4 million at December 31, 1997.
In connection with the Reorganization, the Closed Block, was formed to give certain policyowners additional assurances as to the dividend policies of the Company. As a result of establishing the Closed Block on June 30, 1996 the Company allocated certain assets from its investment portfolio to the Closed Block (see Note 1 to the consolidated financial statements for further discussion). The following table summarizes consolidated invested assets by asset category as of December 31, 1997 and 1996 and sets forth the allocation of such assets between the Closed Block and the general account. The remaining information relating to the Company's investment portfolio presents information about the investment portfolio on a combined basis (including invested assets in both the Closed Block and the general account).
The Company's portfolio of investment grade fixed maturity securities is diversified by number and type of issuer. As of December 31, 1997, investment grade fixed maturity securities included the securities of over 617 issuers, with 2,222 different issues of securities. No issuer represents more than 2.8% of investment grade fixed maturity securities.
The Company uses interest rate swaps and caps to reduce its exposure to changes in interest rates and to manage duration mismatches. Although the Company is subject to the risk that counterparties will fail to perform, credit standings of counterparties are monitored regularly. The Company's policy is to contract only with counterparties that are rated "AA" or higher; accordingly, it is expected that counterparties will be able to satisfy their obligations under such contracts. The Company is also subject to the risk associated with changes in the value of contracts. However, such adverse changes in value generally are offset by changes in the value of the items being hedged. The notional principal amounts of the swaps and caps, which represent the extent of the Company's involvement in such contracts but not the risk of loss, at December 31, 1997, amounted to $1,100.2 million. The swaps had no carrying value at December 31, 1997 and a fair value which amounted to a net payable position of ($.1) million at December 31, 1997. The carrying value and fair value of interest rate caps and swaptions amounted to $2.1 million and $2.0 million, respectively, and are reflected as "other investments" on the Company's consolidated financial statements as of December 31, 1997. The net amount payable or receivable from interest rate swaps and caps is accrued as an adjustment to interest income.
Ceded premiums increased to $565.9 million in 2002 from $432.9 million in 2001. This increase was principally attributable to $372.9 million of ceded premiums relating to a Quota Share Reinsurance Agreement between Everest Re and Bermuda Re, whereby Everest Re cedes 20% of its net retained liability on all new and renewal policies written during the term of this agreement, and an Excess of Loss Agreement between Everest Re, Everest National Insurance Company, Everest
The Company's combined ratio, which is the sum of the loss and expense ratios, decreased by 14.9 percentage points to 99.7% in 2002 compared to 114.6% in 2001. The following table shows the combined ratios for each of the Company's operating segments for 2002 and 2001. The combined ratios for all operations were impacted by the loss and expense ratio variability noted above as well as by the impact on ceded premiums of the adjustment premiums under the Company's corporate retrocessional program.
During 2000, the Company added to its product portfolio a credit default swap, which it no longer writes, that has characteristics which allow this transaction to be analyzed using approaches consistent with those used in the Company's other operations. This product meets the definition of a derivative under FAS 133. Net derivative expense from this transaction in 2001 was $7.0 million, principally attributable to credit default losses relating to the Enron bankruptcy.
- - rising levels of actual costs that are not known by companies at the time they price their products;
- - changes in reserves resulting from different types of claims that may arise and the development of judicial interpretations relating to the scope of insurers' liability; and
The Company is subject to extensive regulation under U.S., state and foreign insurance laws. These laws limit the amount of dividends that can be paid to the Company by its operating subsidiaries, impose restrictions on the amount and type of investments that they can hold, prescribe solvency standards that must be met and maintained by them and require them to maintain reserves. These laws also require disclosure of material intercompany transactions and require prior approval of certain "extraordinary" transactions. These "extraordinary" transactions include declaring dividends from operating subsidiaries that exceed statutory thresholds. These laws also generally require approval of changes of control. The Company's failure to comply with these laws could subject it to fines and penalties and restrict it from conducting business. The application of these laws could affect the Company's liquidity and ability to pay dividends on its common shares and could restrict the Company's ability to expand its business operations through acquisitions involving the Company's insurance subsidiaries.