Gross unrealized losses for the year ended December 31, 2002 decreased from $7.9 million at December 31, 2001 to $0.9 million at December 31, 2002. During the year ended December 31, 2002, there was a significant deterioration in the credit quality of two of our holdings in the telecommunications sector. The Company recognized an after-tax realized loss of approximately $1.3 million for one of these securities sold in June and recorded an after-tax other-than-temporary impairment of approximately $0.7 million for the other telecommunications security. During September 2002, this other security was sold at a realized loss of approximately $0.1 million. For the year ended December 31, 2001, we did not record any other-than-temporary impairment charges relating to our portfolio of investment securities.
Direct Written Premiums. Direct written premiums for the year ended December 31, 2001 increased by $44.4 million, or 10.4%, to $471.9 million from $427.5 million for the year ended December 31, 2000. This increase was primarily due to an approximately 6.0% increase in the average written premium per automobile exposure on our private passenger automobile business. We also increased our average rates on commercial automobile insurance by 20%, and increased our average rates on homeowners insurance by 17%. Although the mandated average personal automobile rates
On February 20, 2003, our Board of Directors approved a quarterly cash dividend on our common stock of $0.07 per share, or $1.1 million based on 15,259,991 shares outstanding which includes the shares outstanding at the close of our IPO on November 27, 2002 as well as the December 5, 2002 exercise of the underwriter's over-allotment option. This dividend was paid on March 17, 2003 to stockholders of record on March 3, 2003. The Company plans to continue to declare and pay quarterly cash dividends in 2003, depending on the Company's financial position and the regularity of its cash flows.
(1)Obligations of U.S. Government agencies includes collateralized mortgage obligations issued, guaranteed and/or insured by the following issuers: Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA). The total of these fixed maturity securities was $95.9 million, $117.6 million and $124.1 million for 2002, 2001 and 2000, respectively. The amortized cost and the estimated market value of fixed maturity securities, by maturity, at December 31, 2002 and 2001 are shown below. Expected maturities will differ from contractual
During the year ended December 31, 2002 there was a significant deterioration in the credit quality of two of the Company's holdings in the telecommunications sector. The Company recognized an after-tax realized loss of approximately $1.3 million for one of these securities sold in June and recorded an after-tax other-than-temporary impairment of approximately $0.7 million for the other telecommunications security. During September 2002, this other security was sold at a realized loss of approximately $0.1 million. For the periods October 16, 2001 through December 31, 2001, January 1, 2001 through October 15, 2001, and for the year ended December 31, 2000, there were no significant deteriorations in the credit quality of any of the Company's holdings and the Company did not record any other-than-temporary impairment charges relating to the Company portfolio of investment securities.
The restricted shares were subject to the put and call provisions of the Management Subscription Agreement, which under certain circumstances may have required the Company to purchase the restricted shares at a price based upon a formula calculation. These put and call provisions were accounted for in accordance with EITF 00-23 whereby employee compensation expense was recorded over the period of service of the employee in accordance with FIN 28. Compensation expense related to these agreements was $0.5 million and $0.1 million for the year ended December 31, 2002 and the successor period ended December 31, 2001, respectively.
prior to 2009. The Company expects that in the normal course of business, leases that expire will be renewed.