felanders/preprocessed huggingface dataset:
December 31, 2001 2000 ---- ---- Interest $ 32,595 $ 43,667 ---------- ---------- Income $ 32,595 $ 43,667 ========== ========== Total Assets $1,076,262 $1,043,667 Shareholders' Equity 1,076,262 1,043,667 Dividends Paid 0 0
Capital Resources. The Company's capitalization on December 31, 2001 and 2000, consisted of paid in capital with respect to the Common Stock of $1,000,000, and earnings retained for use in its business in the amount of $76,262 and $43,667, respectively. In the future, the Company's capitalization will also include paid in capital with respect to the Participating Shares, which will range from $125,000 to $7,500,000 (depending on the number of Participating Shares sold). Barbados insurance law requires that the Company maintain a minimum capitalization of $125,000 and, in addition, that the recorded value of the Company's assets exceed its liabilities by: (a) $125,000 where the Company's earned premium in the preceding financial year did not exceed $750,000; (b) an amount equal to 20% of the Company's earned premium for the preceding financial year, where such income exceeded $750,000 but did not exceed $5,000,000; and (c) an amount equal to the aggregate of $1,000,000 and 10% of the amount by which the Company's earned premium for the preceding financial year exceeded $5,000,000. If the Company's net assets are less than mandated by Barbados law, the Company has the right to reduce the business related to a Subsidiary
The Company sells interest-sensitive individual life insurance and variable life insurance, term life insurance, individual variable and fixed annuities, and a non-participating guaranteed interest contract ("GIC") called Prudential Credit Enhanced ("PACE") primarily through Prudential's sales force in the United States. These markets are subject to regulatory oversight with particular emphasis placed on company solvency and sales practices. These markets are also subject to increasing competitive pressure as the legal barriers, which have historically segregated the markets of the financial services industry, have been changed through both legislative and judicial processes. Regulatory changes have opened the insurance industry to competition from other financial institutions, particularly banks and mutual funds that are positioned to deliver competing investment products through large, stable distribution channels. The Company also marketed individual life insurance through its branch office in Taiwan. The Taiwan branch was transferred to an affiliated Company on January 31, 2001, as described in the Notes to the Financial Statements.
The following table sets forth certain consolidated financial data as a percentage of total revenues for the two fiscal years ended June 30, 1998 and 1999 and for the two years ended December 31, 1999, and 2000 and compares the percentage change in the dollar amounts of these items for the period indicated. All significant intercompany transactions have been eliminated.
As of December 31, 2000, the cash and cash flow from operations, are not sufficient to finance the Company's obligations in 2001. As was explained in the Overview section above, the magnitude of the net loss for the year ended December 31, 2000, has reduced the Company's net worth from $33.1 million at December 31, 1999 to $6.1 million at December 31, 2000. The losses experienced at the Health Plan during 2000 has created the risk of regulatory intervention or increased oversight. Subsequent to December 31, 2000, the Company has undergone a series of changes to strengthen the financial position of both the Company and the Health Plan as well as to position the Company for strategic growth in the future. The prior CEO and President retired and have been replaced by a management team experienced in the restructuring of health care companies. Through April 27, 2001, payroll and other operating expense reductions expected to yield approximately $10.1 million on an annualized basis have been identified and implemented. Loop Corp and other related organizations have agreed to provide up to $14.1 million in equity and other financing to the Company for use in increasing the net of the Health Plan.
In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of Healthsource, Inc. and subsidiaries at December 31, 1995 and 1994, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1995 in conformity with generally accepted accounting principles.
Leases The Company leases certain equipment and premises under noncancellable operating leases. Rent expense under all operating leases was $10.9 million, $3.4 million, and $1.7 million for the years ended December 31, 1995, 1994 and 1993, respectively.
Comparatively, we had revenue of $ 2,492,664 for the fiscal year ended June 30, 2012, of which $1,741,975 was from commissions due to sales of insurance products, including mortgage life insurance and funeral expense insurance, and $750,690 from the sales of leads during the fiscal year ended June 30, 2012. The decrease by $968,088 or 39 %, during the current fiscal year ended June 30, 2013 was due in large part to limited capital resources which caused the number of mailings to be decreased. Less mailings going out meant fewer leads coming in which in turn resulted in less income from the sale of leads and less production from the sale of insurance policies.
The Company’s management has identified the following as major financial, operational and marketing accomplishments during 2006:
The Company’s 2006 segment income (loss) was $1,000 compared to losses of $(269,000) in 2005 and $(2,307,000) in 2004. The segment loss in 2004, excluding nonrecurring items described below, was $(481,000).
1 Asset Valuation Reserves are statutory liabilities that act as contingency reserves in the event of extraordinary losses on invested assets and as a buffer for policyholders’ surplus to reduce the impact of realized and unrealized investment losses. The 2002 through 2006 amounts also include United Liberty’s asset valuation reserves. Citizens Insurance does not have an Asset Valuation Reserve.
The Life Insurance Subsidiaries’ most recent cash flow testing, which was completed in February 2007, involved a review of two basic measures. The first was the value of free market surplus, which is defined as the difference between the projected market value of assets and liabilities at the end of the analysis period (typically 10-30 years). Deficits could indicate the need for corrective action depending upon the severity and the number of scenarios in which a deficit appeared. A second measure involved distributable earnings. Negative earnings for extended durations might impair the ability of the Life Insurance Subsidiaries to continue without exhausting surplus. Again, depending upon severity and frequency, corrective measures might be needed. Based on results of the testing, no corrective measures were indicated at the current
CFC-I owns the Fairfield Executive Center which is located on the northwest corner of the home office property in Fairfield, Ohio. This is a four-story office building containing approximately 96,000 rentable square feet. CFC and its subsidiaries occupy approximately 38% of the building, unaffiliated tenants occupy approximately 14% of the building, approximately 28% of the building is available for future CFC usage and approximately 20% is available for rent. The property is carried in the financial statements at $8,638,211 as of December 31, 2001 and is classified as "Property and equipment, net, for Company use."
Schedule III. Condensed Financial Information of Registrant - December 31, 1998 and 1997............................................ 37
Reinsurance In the normal course of business, NSFC seeks to reduce the loss that may arise from catastrophes or other events that cause unfavorable underwriting results by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers. Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policy. Amounts paid for prospective reinsurance contracts are reported as prepaid reinsurance premiums and amortized over the remaining contract period.
NOTE 8 - REGULATORY REQUIREMENTS AND DIVIDEND RESTRICTIONS: The amount of dividends paid from NSIC to the Company in any year may not exceed, without prior approval of regulatory authorities, the greater of 10% of statutory surplus as of the end of the preceding year, or the statutory net gain from operations for the preceding year. At December 31, 1998, NSIC's retained earnings unrestricted for the payment of dividends in 1999 amounted to $1,656,796. NSFC is similarly restricted in the amount of dividends payable to the Company; dividends may not exceed the greater of 10% of statutory surplus as of the end of the preceding year, or net income for the preceding year. As a result, dividends from NSFC to the Company are limited to $2,507,154 in 1999.
Premium revenues: Individual life and accident and health insurance ................................ $ 3,837 $ 3,991 $ 4,432 Property and casualty insurance ............ 24,614 27,165 22,222 ------- ------- ------- $28,451 $31,156 $26,654 ======= ======= ======= Income (loss) before income taxes: Individual life and accident and health insurance ................................ $ 2,489 $ 2,171 $ 1,140 Property and casualty insurance ............ (1,000) 1,572 1,191 Other ...................................... (140) (272) (601) ------- ------- ------- 1,349 3,471 1,730 Interest expense ..................... (243) (111) (109) ------- ------- ------- $ 1,106 $ 3,360 $ 1,621 ======= ======= =======
Total combined Mutual and MNH or "group-wide" direct premiums written for the year ended December 31, 2003 were $175,143,000, an increase of $2,403,000 or 1% from $172,740,000 in 2002. The
Included in net investment losses for the year ended December 31, 2004 are write-downs on two investment securities held in the Company's investment portfolio at December 31, 2004 determined to have had an other-than-temporary impairment in market value. The total amount of other-than-temporary impairments recorded as losses amounted to $700,000 in 2004. No other-than-temporary impairments were recorded in 2003 or 2002.
The Selected Consolidated Financial Data, which appears on page 23 in the 1996 Annual Report, are incorporated herein by reference.
Revenues increased $254 million, or 33%, to $1 billion in 1996 from $759 million in 1995. This increase in revenues was principally the result of a $217 million increase in premiums and other considerations which reflects a substantial increase in aggregate fees earned due to the Company's growing block of separate account assets. The average separate account assets in this segment increased to $37.5 billion in 1996 from $26.3 billion in 1995 primarily due to sales of individual annuities of $9.8 billion in 1996 and $7 billion in 1995, as well as strong market appreciation in both 1996 and 1995. In addition, the average general account assets of this segment increased to approximately $7.7 billion in 1996 from $6.5 billion in 1995 largely as a result of growth in the general account portion of the individual variable annuity products of the Company. The growth in this segment is also reflected in an increase in total expenses of $220 million, primarily as a result of an increase in benefits, claims and claim adjustment expenses of $102 million, or 29%, to $451 million in 1996 from $349 million in 1995. The 38% growth in average account value in 1996, coupled with an overall reduction in individual annuity expenses as a percentage of total individual annuity
Revenues increased $57 million, or 15%, to $440 million in 1996 from $383 million in 1995. This increase in revenues was chiefly due to a $41 million increase in premiums and other considerations, reflecting the cost of insurance charges and variable life fees applied to a larger block of business, as insurance in force increased to $52.1 billion in 1996 from $48.3 billion in 1995. Total expenses increased by $49 million, primarily as a result of an increase in benefits, claims and claim adjustment expenses of $43 million, or 21%, to $245 million in 1996 from $202 million in 1995. This increase in expenses also reflects the increase in the block of individual life insurance business offset partially by favorable mortality results. The combination of business growth and favorable mortality experience resulted in an increase in segment earnings of $8 million, or 22%, to $44 million in 1996 from $36 million in 1995.
The Preferred Stock was originally issued as 245,000 shares of Series A and 105,000 shares of Series B. The Series A Preferred Stock carried a cash dividend of 8% per annum, payable quarterly, provided that prior to May 13, 2000, the Series A Preferred Stock accumulated dividends at a rate of 8.243216% per annum, payable annually in cash or additional shares of Series A Preferred Stock, at the option of the Company. The Series A Preferred Stock was issued with Series A Warrants to purchase 15,800,000 shares of common stock, or approximately 19.9% of the then outstanding voting power of Oxford's common stock. The Series A Preferred Stock had approximately 16.6% of the combined voting power of Oxford's then outstanding common stock and the Series A Preferred Stock. The Series B Preferred Stock, which was originally issued with Series B Warrants to purchase nonvoting junior participating preferred stock, was nonvoting and carried a cash dividend of 9% per annum, payable quarterly, provided that prior to May 13, 2000, the Series B Preferred Stock accumulated dividends at a rate of 9.308332% per annum, payable annually in cash or additional shares of Series B Preferred Stock, at the option of the Company. The Preferred Stock was not redeemable by the
(3) Gives effect to the Acquisition and the Recapitalization as if such transactions had occurred on January 1, 1994.
HealthPlan Services is a leading managed health care services company, providing distribution, enrollment, billing and collection, and claims administration services for health care payors and providers. HealthPlan Services functions solely as a service provider generating fee-based income and does not assume any underwriting risk.
Agent commission expense for the year ended December 31, 1997 increased $17.2 million, or 35.4%, to $65.7 million from $48.5 million in 1996. This increase resulted primarily from the inclusion of an additional six months of commissions of $7.1 million related to HealthPlan Services' 1996 acquisitions. HealthPlan Services' commissions as a percentage of operating revenues declined from 25.3% in 1996 to 23.3% in 1997, as self-funded customer revenues represented a greater percentage of HealthPlan Services' total revenues. Traditionally, self-funded customer commissions represent a lower percent of revenues than fully insured customer commissions.
In December 1997, HealthPlan Services and Sykes formed SHPS. SHPS was owned 50% by each of the founding companies and provides care management services, technology solutions, certain customer support services, and other outsourcing capabilities to the health care and insurance industries. HealthPlan Services invested $17.0 million in SHPS and guaranteed a line of credit of up to $37.5 million to fund the activities of SHPS. On September 11, 1998, HealthPlan Services sold its 50% interest in SHPS to Sykes for $30.6 million and recognized a gain on the sale of SHPS of $27.9 million. Additionally, HealthPlan Services was relieved of its obligation associated with SHPS' credit facility.
HealthPlan Services does not believe that inflation had a material effect on its results of operations for the year ended December 31, 1998 or 1997. There can be no assurance, however, that HealthPlan Services' business will not be affected by inflation in the future.
See Notes 8 (page 28) and 11 (page 31) to Consolidated Financial Statements of the Company's 1993 Annual Report to shareholders for additional information.
Membership Persistency The Company's Membership persistency rate is a specific computation that measures the number of Memberships in force at the end of a year as a percentage of the total of (i) Memberships in force at the beginning of such year, plus (ii) new Memberships sold during such year. From 1981 through the year ended December 31, 2001, the Company's annual Membership persistency rates, using the foregoing method, have averaged approximately 73.3%.
The Company's overall Membership persistency rate varies based on, among other factors, the relative age of total Memberships in force, and shifts in the mix of members enrolled. The Company's overall Membership persistency rate could become lower when the Memberships in force include a higher proportion of newer Memberships, as will happen following periods of rapid growth. The Company's overall Membership persistency rate could also become lower when the new enrollments include a higher proportion of non-associate members, a trend that has been observed over the past five years.
At December 31, 2001, the Company was committed under noncancelable operating and capital leases, principally for buildings and equipment. Aggregate rental expense under all operating leases was $142,000, $50,000 and $113,000 in 2001, 2000 and 1999, respectively. At December 31, 2001, the Company had no minimum rentals for capital leases.
(j) Income Taxes ----------- Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
(a) Costs of acquiring new business are deferred and amortized, rather than being charged to operations as incurred.
The payment of dividends by the Company is subject to the regulation of the State of Florida Department of Insurance. A dividend may be declared and paid without prior Florida Insurance Commissioner's approval if the dividend is equal to or less than the greater of: (a) 10% of the Company's surplus as to policyholder's derived from realized net operating profits on its business and net realized capital gains; or (b) the Company's entire net operating profits and realized net capital gains derived during the immediately preceding calendar year, if the Company will have surplus as to policyholders equal to or exceeding 115% of the minimum required statutory surplus as to policyholders after the dividend is declared and paid. As a result of such restrictions, the maximum dividend payable by the Company during 1996 without prior approval is approximately $200,000.
(3) Investments --------- (a) Equity Securities and Fixed Maturities ------------------------------- Equity securities consist of $1,715,386 and $1,380,761 of common stock at December 31, 1995 and 1994, respectively.
Demand for reinsurance depends on numerous factors, including the frequency and severity of catastrophic events, levels of capacity, general economic conditions and underwriting results of primary property insurers. The supply of reinsurance is related to prevailing prices, recent loss experience and levels of surplus capacity. All of these factors fluctuate and may contribute to price declines generally in the reinsurance industry. Our recent, and anticipated, growth relates in part to improved industry pricing. Premium rates or other terms and conditions of trade may vary in the future. If any of these factors were to cause the demand for reinsurance to fall or the supply to rise, our profitability could be adversely affected.
Other operating expenses increased 10% to $32.5 million for 2002 from $29.6 million in 2001. The increase primarily reflects incentive compensation expense, that varies with return on equity, to be paid under the Company's Restated Employee Annual Incentive Bonus Plan and costs incurred in connection with the establishment of a reinsurance facility with P-1 Re Ltd, an exempted Bermuda Class 3 insurance company.
For other future commitments that affect liquidity, see the Credit Agreement and cash call commitments discussed above.
The estimated potential loss is net of prepayment risk associated with the mortgage-related securities. The mortgage sector represents 9% of the portfolio at year-end. The estimate assumes a similar change in fair value across security sectors with no adjustment for change in value due to credit risk. The interest rate risk related to the short-term investments is not material. The average maturity of these investments is under one year.
If the conversion features of conventional convertible debt provides for a rate of conversion that is below market value at issuance, this feature is characterized as a beneficial conversion feature (“BCF”). A BCF is recorded by the Company as a debt discount. In those circumstances, the convertible debt is recorded net of the discount related to the BCF, and the Company amortizes the discount to interest expense, over the life of the debt using the effective interest method.
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. For the year ended April 30, 2016, the Company reported a net loss of $272,516 and has reported an accumulated deficit of $4,606,570 as of April 30, 2016. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of these uncertainties. The Company’s ability to continue as a going concern is dependent upon its ability to develop additional sources of capital, locate and complete a merger with another company and ultimately achieve profitable operations. No assurances can be given that the Company will be successful in locating or negotiating with any target company.
Net investment income for 2017 was $817,989, compared to $449,951 in 2016, an increase of $368,038. This increase in investment income is primarily a result of increased invested assets as a result of our premium income, merger with NPCC, and coinsurance agreement with ALSC as well as an improvement in our book yield.
Accounts payable and accrued expenses: As of December 31, 2017, our accounts payable and accrued expenses were $98,382 compared to $66,472 as of December 31, 2016, an increase of $31,910. The increase is driven by growth of the Company over the course of 2017.
- ------------------------------ (1) Reduced by $1,261 or $.05 per share representing a one-time adjustment to income tax expense due to the change in the corporate income tax rate from 34% to 35%.
The Morristown office building was 94.8% occupied at December 31, 1995 a slight increase of 2% from December, 1994. During 1995, Kodak renewed its lease covering 6,600 square feet (8% of the property). The new lease expires on February 28, 2003. During the fourth quarter of 1994, a 2,100 square foot expansion was executed with Smith Barney, effective January 16, 1995. The lease expires in 1997. Chase Home Mortgage's lease expired on December 31, 1995. Their lease was extended through March 31, 1996. The Partnership does not expect them to renew their lease. Mutual of Omaha's lease expires in March, 1996. They currently occupy 5,769 square feet (7% of the property). Discussions are being held with this tenant and we do not expect them to renew their lease in 1996. Spectrum signed a new lease and moved into a larger space that will increase their square footage from 2,350 to 3,765 or 4% of the property. The Partnership is also discussing expansions with other tenants in the property and actively marketing the available space. No other leases are scheduled to expire in 1996.
Business Experience Summary Overall the profit increased again. However, heavy claims in industrial Fire insurance, considerable losses in the Motor Liability branch as a result of the cost and claims inflation, adverse experience in the Burglary business in many industrial countries as well as a number of mediumsized natural catastrophes, led to a deficit which was not completely balanced out by the underwriting surpluses in the other non-Life reinsurance branches. On the other hand. Life reassurance again yielded a profit, which was, however, slightly lower than in the previous year. The profit from investments rose again, although the sums transferred from abroad had been reduced in varying degrees by the revaluation of our national currency. As expected, the management expenses and the taxes again showed an increase.
Underwriting Result 83,000 491,000 Investment Income 242,000 303,000 Management Expenses - 535,000 - 493,000 Net Realized Capital Gains/Losses 15,000 3,000 Taxes - 36,000 - 26,000
IHT 1970 1969 wF A| A| Gross Premiums 16,890,000 15,?7?,000 Net Premiums 8,218,000 7,179,000
Canadian Reinsurance Company 95 St. Clair Avenue West, Toronto 195, Ontario with an Office in Montreal
Neither AIIG nor AIIC owns or leases material properties. Substantially all of the business of AIIG and AIIC is conducted from the offices of USA Risk Group.
AIIG and its subsidiary do not have any employees. All operations of AIIG are performed by service providers and business partners, including a management company, under the direction of AIIG's Board of Directors. AIIG has undertaken an ongoing effort to evaluate and monitor the year 2000 compliance and related remediation efforts of its significant service providers and business partners. AIIG has identified CNA, the sole current reinsured of AIIG, as the most critical of such entities to AIIG's ongoing operations. CNA performs underwriting and claims administration functions for all risks currently reinsured by AIIG. CNA has informed AIIG that its target for achieving Year 2000 compliance is December 1, 1998. AIIG will continue to monitor the year 2000 compliance efforts of its service providers and business partners. AIIG does not expect to incur significant costs associated with year 2000 remediation efforts.
Schedules I, III, IV, V, and VI are omitted as they are inapplicable, immaterial, or because the required information may be found in the audited consolidated financial statements and notes thereto.
In the event of a liquidation of the Company, the holders of the preferred stock are entitled to receive $10 per share plus all unpaid and accrued dividends prior to any distribution to be made to the holders of common stock.
SCPIE Holdings is an insurance holding company whose assets primarily consist of all of the capital stock of its insurance company subsidiaries. Its principal sources of funds are dividends from its subsidiaries and proceeds from the issuance of debt and equity securities. The insurance company subsidiaries are restricted by state regulation in the amount of dividends they can pay in relation to earnings or surplus, without the consent of the applicable state regulatory authority, principally the California Department of Insurance. SCPIE Holdings’ principal insurance company subsidiary may pay dividends to SCPIE Holdings in any 12-month period, without regulatory approval, to the extent such dividends do not exceed the greater of (i) 10% of its statutory surplus at the end of the preceding year or (ii) its statutory net income for the preceding year. Applicable regulations further require that an insurer’s statutory surplus following a dividend or other distribution be reasonable in relation to its outstanding liabilities and adequate to meet its financial needs, and permit the payment of dividends only out of statutory earned (unassigned) surplus unless the payment out of other funds receives regulatory approval. The amount of dividends that the insurance company subsidiaries are able to pay to SCPIE Holdings during 2003 without prior regulatory approval is approximately $15.6 million.
Common stock dividends paid to stockholders were $0.40 per share in 2002. These dividends were funded through dividends from the Company’s insurance subsidiaries received in prior years. The Company has declared a quarterly dividend of $0.10 per share, payable on March 31, 2003. Payment of future dividends is subject to Board approval, earnings and the financial condition of the Company. As of December 31, 2002, SCPIE Holdings held cash and short-terms securities of $10.5 million. Based on historical trends, market conditions and its business plans, the Company believes that its sources of funds (including dividends from the Insurance Subsidiaries) will be sufficient to meet the liquidity needs of SCPIE Holdings over the next 18 months and beyond.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL - ------- ------------------------------------- - -----------CONDITION AND RESULTS OF OPERATIONS. --------------------------------- - ---
Comparison of Years ended December 31, 2019 and December 31, 2018
The Company leases its Headquarters’ office in Glen Allen, Virginia. The Company’s subsidiaries also conduct their business operations from leased office space in various states where located. Information on the Company’s lease commitments is incorporated by reference to the material contained in “Note G-Leases” of Notes to Consolidated Financial Statements included in the portions of the Company’s Annual Report to Shareholders set forth as Exhibit 13 in this report. The Company believes that its properties are in good condition and are suitable and adequate for its purposes.
Premium revenues: 1996 % 1995 % 1994 % -------- ----- -------- ----- -------- ----- Life and accident and health insurance ................$ 4,433 16.6 $ 4,903 20.1 $ 5,183 19.7 Property and casualty insurance ................ 22,221 83.4 19,469 79.9 21,106 80.3 -------- ----- -------- ----- -------- ----- $26,654 100.0 $24,372 100.0 $ 26,289 100.0
The Company has standby letters of credit in the amount of $25,000. These letters are used to guarantee obligations of the property/casualty subsidiary under assumed reinsurance contracts. The letters of credit are secured by certain invested assets of the Company. The Company also routinely incurs liability for declared but unpaid dividends. Long term liquidity needs of the Company constitute only those items which are directly related to the principal business operations of the Company. The Company has no long term debt.
Basis of Presentation The significant accounting policies followed by The National Security Group, Inc. and subsidiaries that materially affect financial reporting are summarized below. The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) which, as to the subsidiary insurance companies, differ from statutory accounting practices permitted by regulatory authorities.
Securities with market values of $3,314,044 and $2,485,448, at December 31, 1996 and 1995, respectively, were deposited with various states pursuant to statutory requirements.
Note: Net reinsurance assumed premiums were, $0, $(2), and $414 for 1996, 1995, and 1994, respectively.
Hartford Life is a leading financial services and insurance company providing investment and retirement products such as variable and fixed annuities, mutual funds and retirement plan services; individual and corporate owned life insurance; and, employee benefit products such as group life and disability insurance.
1999 COMPARED TO 1998 - Revenues decreased $736, or 47%, primarily attributable to the downsizing of the leveraged COLI business as a result of the HIPA Act of 1996. During 1999, leveraged COLI account values decreased $3.4 billion, or 37%. Consistent with the decrease in revenues, benefits, claims and expenses decreased $747, or 49%. Net income increased $6, or 25%, primarily due
Upward movement in market interest rates during 1999 resulted in a significant decline in the fair value of the fixed maturities portfolio over 1998. However, the Company's asset allocation, and therefore its exposure to market risk, has not changed materially from its position at December 31, 1998.
The National Association of Insurance Commissioners (NAIC) has regulations establishing minimum capitalization requirements based on Risk-Based Capital (RBC) formulas for life insurance companies. The requirements consist of formulas which identify companies that are undercapitalized and require specific regulatory actions. The RBC formula for life insurance companies establishes capital requirements relating to insurance, business, asset and interest rate risks. The RBC ratios for each of the life insurance subsidiaries are in excess of 200% as of December 31, 1999, which are greater than the minimum threshold.
The Company did not enter into any derivative transactions during 1996 or 1995.
In order to enhance the regulation of insurer solvency, the NAIC enforces minimum Risk Based Capital (RBC) requirements. The requirements are designed to monitor capital adequacy and to raise the level of protection that statutory surplus provides for policyholders. The RBC model law required that life insurance companies report on a formula-based RBC standard which is calculated by applying factors to various assets, premium and reserve items. The formula takes into account risk characteristics of the life insurer, including asset risk, insurance risk, interest risk and business risk. If an insurer's ratio falls below certain thresholds, regulators will be authorized, and in some circumstance required, to take regulatory action.
CONSOLIDATED FINANCIAL STATEMENTS AND SCHEDULES YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
We have audited the financial statements of The Manufacturers Life Insurance Company of America as of December 31, 1996 and 1995 and 1994 and for each of the three years in the period ended December 31, 1996 and have issued our report thereon dated March 21, 1997 (included elsewhere in this Annual Report on Form 10-K). Our audits also included the financial statement schedules listed in this Annual Report on Form 10-K. These schedules are the responsibility of the Company's management. Our responsibility is to express an opinion based on our audits.
Premiums. Gross written premiums increased by 9.2% to $842.6 million in 2009 compared to $771.8 million for 2008. Most of the new premium was derived from our entry into the financial institution D&O and E&O market and additional property insurance written in Florida, where rates to exposure remain attractive. Net written premiums decreased by 11.7% to $352.1 million in 2009 compared to $398.7 million for 2008, as the increase in gross written premiums was offset by an increase in ceded written premiums. Premiums earned decreased 20.7% to $382.8 million in 2009 compared to $482.7 million for 2008. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period, in addition to the impact of the affiliated quota share agreement.
Incurred Losses and LAE. The following table presents the incurred losses and LAE for the Specialty Underwriting segment for the periods indicated.
Incurred losses and LAE decreased by $49.5 million, or 3.2%, in 2007 compared to the same period in 2006. This decrease was primarily due to lower attritional losses of $152.1 million and lower catastrophe losses of $136.4 million, partially offset by an increase of $239.0 million in A&E loss reserve strengthening.
All ABS - housing related securities are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are updated and reviewed quarterly. Model output is generated under base and several stress-case scenarios. Our internal ABS - housing related asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities, and prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size, and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific security’s collateral attributes and historical performance. Loss severity assumptions were determined by observing historical rates from broader market data while being adjusted for specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by our internal asset specialists to determine whether or not our particular tranche or holding is at risk for not collecting all contractual cash flows taking into account the seniority and other terms of the tranches held. The unrealized loss is primarily due to decreased liquidity, increased credit spreads in the market, slower prepayments, and increased expected losses on loans within the underlying pools. Expected losses within the underlying pools are generally higher than original expectations, which have led to some rating downgrades in these securities.
The investment performance of the underlying U.S. equity-based mutual funds supporting the Company’s variable products do not replicate the returns of any specific U.S. equity market index. However, investment performance will generally increase or decrease with corresponding increases or decreases of the overall U.S. equity market. There are several standard indices published on a daily basis that measure performance of selected components of the U.S. equity market. Examples include the Dow Jones Industrial Average (“Dow”), the NASDAQ Composite Index (“NASDAQ”) and the S&P. The Dow, NASDAQ and S&P ended 2011 with increases (decreases) of 6%, (2%) and less than (0.1%), respectively, from 2010. The Dow, NASDAQ and S&P ended 2010 with increases of 11%, 17% and 13%, respectively, from 2009.
The Company incurred losses and administrative expenses during the year ended December 31, 1998 of $61,027,782 compared with $43,503,363 and $33,965,100 for the years ended December 31, 1997 and 1996, respectively. Expenses in 1998 were comprised of losses paid and provisions for losses incurred of $45,552,545, ceding commissions and excise taxes of $14,919,916 and operating expenses of $555,321. Losses incurred in 1997 and 1996 were $31,118,622 and $24,037,827 respectively. The loss ratio for the year ended December 31, 1998 was 78.7% compared to 68.1% and 66.6% for the years ended December 31, 1997 and 1996, respectively.
All of the Company's Common Stock is held by MIC. A prospectus dated May 12, 1998 is offering 12,000 shares of Participating Stock to persons certified by owners of certain motor vehicle franchises. The offering consists of 120 series of 100 shares each at a price of $75 per share.
The increase in gross written and earned premiums for the year ended December 31, 2016 as compared to the same periods in 2015 and 2014 was primarily attributable to growth in the casualty and environmental units, partially offset by reduced premiums in the property, contract and allied medical units. Premiums for the property, contract and allied medical units continued to decline due to increased competition and low rates. The Excess and Surplus Lines segment continues to be impacted by increased competition and pressure on rates.
Earned premiums for the years ended December 31, 2016, 2015 and 2014 were primarily attributable to adjustments resulting from final audits, reinstatement premiums and other adjustments on policies previously underwritten.
The primary sources of our cash flows are premiums, reinsurance recoveries, proceeds from sales and redemptions of investments and investment income. The primary cash outflows are claim payments, loss adjustment expenses, reinsurance costs and operating expenses. Additional cash outflows occur through payments of underwriting and acquisition costs such as commissions, taxes, payroll and general overhead expenses. Management believes that cash receipts from premiums, proceeds from investment sales and redemptions and investment income are sufficient to cover cash outflows in the foreseeable future. Should the need for additional cash arise, we believe we have access to additional sources of liquidity.
Recorded gross reserves for general liability were $1,529.7 million, with approximately 3% of that amount related to run-off asbestos and environmental exposures as of December 31, 2016. For general liability losses relating to ongoing operations, reported loss development patterns are a key assumption for this line of business. Historically, assumptions on reported loss development patterns have been impacted by, among other things, emergence of new types of claims (e.g., construction defect claims) or a shift in the mixture between smaller, more routine claims and larger, more complex claims. We have reviewed the historical variation in reported loss development patterns for general liability losses deriving from continuing operations. If the reported loss development patterns change by 10%, a change that we have experienced in the past and that management considers possible, the estimated net reserve could change by $65.0 million, in either direction.
SFAS 115, “Accounting for Certain Investments in Debt and Equity Securities,” and Staff Accounting Bulletin 59, “Noncurrent Marketable Equity Securities,” require companies to perform periodic reviews of
As of December 31, 2007, we had unrealized losses on our investment portfolio of $1.2 million, of which $781,000 were in unrealized loss positions for more than twelve months. If we decided to write down all securities in an unrealized loss position for one year or longer, we would have recognized an additional $781,000 of realized losses, reducing net income in 2007 by $515,000.
Gross premiums written in our personal lines segment for 2007 were $10.8 million as compared to $8.3 million for 2006, an increase of $2.5 million, or 30.1%. This increase was primarily attributable to $5.1 million of gross premiums written in our Pets Best program, which was new in 2007, and an increase of $1.3 million of gross premiums written in our Midwest and Western homeowners lines of business. These increases were offset by a decrease of $3.9 million in our Florida homeowners line of business.
The loss ratio for our personal lines for 2006 was 99.0% compared to 62.5% for 2005. This increase was primarily attributable to a reduction in net earned premiums in our personal lines business due to the sale of Home Pointe. As a result of the discontinued operations, our net earned premiums in our personal lines of business for 2006 decreased $13.6 million, from $20.8 million to $7.2 million and losses incurred decreased $4.5 million, from $11.6 million to $7.1 million resulting in a significant loss ratio on continued operations in this line of business.
Net cash provided by operating activities for the year ended December 31, 2007 was $12.2 million as compared to $7.1 million for 2006, an increase of $5.1 million. The increase in cash from operations was attributable to a combination of factors including a $42.3 million increase in premiums collected, net of ceded premiums paid, a $3.3 million increase in investment income, and a $5.2 million increase in other fees and income. These increases in cash were offset by a $24.4 million increase in net losses paid, a $17.6 million increase in cash paid for policy acquisition costs as well as operating and interest expense and a $3.5 million increase in taxes paid.
In February 2007, the FASB issued Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities, to permit all entities to choose to elect, at specified election dates, to measure eligible financial instruments at fair value. An entity would report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date, and recognize upfront costs and fees related to those items in earnings as incurred and not deferred. SFAS No. 159 applies to fiscal years beginning after November 15, 2007, with early adoption permitted for an entity that has also elected to apply the provisions of SFAS No. 157. The Company did not elect to measure any new instruments at fair value under SFAS No. 159, therefore the results of operations or financial position were not impacted.
The following is an analysis of the results of operations and financial condition of the Company. This analysis should be read in conjunction with the Consolidated Financial Statements and related notes.
In addition to Oracle Re's current liquidity requirements, Oracle Re is required to provide collateral security with respect to letters of credit outstanding under the LOC Agreement and otherwise. Under the LOC Agreement, the collateral maintenance requirement is equal to up to 140% of the amount of the outstanding letters of credit. See "Other Transactions - Letter of Credit Agreement." In the event that sufficient collateral cannot be maintained relative to these requirements, Oracle Re may be required to negotiate with its reinsureds to reduce the size of the reinsurance transactions, thereby decreasing the amounts of letters of credit and related collateral requirements under the LOC Agreement. Moreover, if Oracle Re were unable to furnish sufficient collateral or otherwise to fail to satisfy any covenant or requirement under the LOC Agreement, it may be required to liquidate all or a substantial portion of its investment portfolio or otherwise secure its obligations under its reinsurance agreements, which would likely have a
The information required by Item 8 is included in this Form 10-K beginning on page 17 of this Form 10-K.
Our revenues are principally derived from three sources: 1) net premiums earned from the reinsurance and insurance policies we sell; 2) net investment income and realized gains and losses from the investment of our capital funds and the investment of the cash we receive on the policies which we sell; and 3) other income received from our joint ventures and other structured products.
We have assumed risk through catastrophe and derivative instruments under which losses could be triggered by an industry loss index or geological or physical variables. During 2003, 2002 and 2001 we recorded income (loss) on non-indemnity catastrophe index transactions of $0.8 million, $7.2 million, and ($4.6 million). We report income (loss) from these transactions in other income.