felanders/preprocessed huggingface dataset:
Catastrophe losses in 2001 totaled $34.6 million, compared with $36.2 million in 2000 and $52.2 million in 1999. The Group was impacted by 19 separate catastrophes in 2001, compared with 24 catastrophes in 2000 and 27 in 1999. Catastrophe losses added 2.3 points to the statutory combined ratio in 2001, compared with 2.4 points in 2000 and 3.4 points in 1999. The 2001 catastrophes included the losses from the events of September 11, 2001. The Group incurred before-tax losses of $3.0 million related to the terrorist activities. The 1999 catastrophes included tornadoes in the greater Cincinnati and Oklahoma City areas as well as damage from Hurricane Floyd. The effects of catastrophes on the Corporation's results cannot be accurately predicted. As such, severe weather patterns, acts of war or terrorist activities could have a material adverse impact on the Corporation's results, reinsurance pricing and availability of reinsurance.
Commercial umbrella net premiums written increased $26.6 million, or 40.5% in 2001 to $92.2 million, compared with $65.6 million in 2000 and $62.8 million in 1999. The 2001 increase was primarily generated by renewal price increases implemented in 2001 and 2000. The average renewal price increase in 2001 was 20.3%, compared with 8.9% in 2000. The 2001 statutory combined ratio was 93.6%, compared with 81.9% in 2000 and 33.5% in 1999. Although the combined ratio increased, the results are still profitable for the Group.
The Group began direct marketing of personal auto coverage in January 1998. In 2000, the Corporation first restructured its private passenger auto - direct operations with an Internet-only strategy, and later discontinued the private passenger auto - direct line of business in the fourth quarter. The line was discontinued in order to focus on the independent agency system as the distribution channel for the Group. As a result of the restructuring, net premiums written dropped from $10.7 million in 2000 to $6.8 million in 2001. The Group wrote $17.1 million of net premiums in 1999. Statutory combined ratios were 155.2%, 167.9% and 208.4% for 2001, 2000 and 1999,
Interest expense for fiscal 2015 was $833,242 compared to $944,180 in fiscal 2014. Components of interest expense are comprised of the following:
Interest and penalties associated with tax positions are recorded in the period assessed as general and administrative expenses. However, no interest or penalties have been assessed as of May 31, 2015 or 2014.
o Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.
The Company had no assets or liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at either May 31, 2015 or at May 31, 2014.
payment to each bridge lender. To date, the proposed financing has not closed, and the Company has been unable to remit the partial payment. On August 10, 2012, the Company entered into an agreement with the bridge lenders, pursuant to which the bridge lenders formally agreed to forbear from exercising their rights and remedies arising from the accumulated acknowledged events of default with respect to the bridge loans until such date. As consideration for this forbearance, the Company entered into an Amended and Restated General Hypothecation and Pledge Agreement dated August 9, 2012 (the “August 2012 Pledge”), but effective September 23, 2011, granting to the bridge lenders as security for the repayment of the loans a lien and security interest in all of the Company’s shares of capital stock of First Surety Corporation. Under the August 2012 Pledge, the bridge lenders acknowledge that the effectiveness of certain of the rights and remedies provided by such agreement may be subject to prior approval by the Office of the Commissioner of Insurance for the State of West Virginia. As of May 31, 2015 no payment were made to bridge lenders.
As of May 31, 2015 the Company held approximately $2,352,427 in its cash and investment accounts that was for the benefit of clients as collateral for their surety bonding program.
In fiscal 2014, the Company issued 9,630,856 shares of the Company's common stock in connection with the semi-annual issuance of shares under terms of the bridge-financing arrangement. The shares were valued at approximately $.003460 per share based on the average quoted closing price of the Company's stock for the 20-day period preceding the date of the transaction and totaled $33,323.
Company leases office, parking and storage space under month-to-month lease arrangements that approximate $3,844 each month.
The effects of reinsurance on premium written and earned for fiscal 2015 and 2014 are as follows;
The Company's executive offices and the principal offices of its life insurance subsidiaries are in leased premises at 1 SunAmerica Center, Los Angeles, California. The Company's life insurance subsidiaries also lease office space in Torrance and Woodland Hills, California; Houston, Texas; and New York, New York. The Company's broker-dealers lease space in Phoenix, Arizona; Atlanta, Georgia; Houston, Texas; and New York, New York. The Company's asset management subsidiary leases offices in New York, New York, and the retirement trust services subsidiary occupies leased premises in Englewood, Colorado. The Company's premium finance subsidiary is headquartered in Sherman Oaks, California.
The Company's consolidated financial statements begin on page. Reference is made to the Index to Financial Statements on page herein.
As of December 31, 1996, CMOs represent approximately 90% of the Company's mortgage-backed securities, and PAC I CMOs account for approximately 91% of this CMO portfolio. The CMOs that the Company purchases are modeled and subjected to detailed, comprehensive analysis by the Company's investment staff before any investment decision is made. The overall structure of the entire CMO is evaluated, and an average life sensitivity analysis is performed on the individual tranche being considered for purchase under increasing and decreasing interest rate scenarios. This analysis provides information used in selecting securities that fit appropriately within the Company's investment philosophy and asset/liability management parameters. The Company's investment mix between mortgage-backed securities and other fixed income securities helps effectively balance prepayment, extension, and credit risks.
The Company held net investments in mortgage loans totaling $193,311,000 and $191,674,000, or 7.0% and 7.3% of total invested assets, at December 31, 1996 and 1995. The loans are real estate mortgages, substantially all of which are related to commercial properties and developments and have fixed interest rates.
On April 12, 1996, The Westcap Corporation and its wholly owned subsidiary, Westcap Enterprises, Inc., separately filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court, Southern District of Texas, Houston Division. Westcap Enterprises, Inc. is the successor by merger to Westcap Securities Investment, Inc., Westcap Securities Management, Inc., and Westcap Securities, L.P., which prior to such merger were subsidiaries or affiliates of The Westcap Corporation. The bankruptcy filing is more fully described in Item 3, Legal Proceedings.
In December, 1995, the National Association of Insurance Commissioners adopted for statutory accounting practices Actuarial Guideline 33, previously referred to as Actuarial Guideline GGG. This reserve guideline helps define the minimum reserves for policies with multiple benefit streams, such as two-tier annuities. The Company had been reserving for its two-tier annuities according to an agreement reached in 1993 with its state of domicile, Colorado. However, in 1995, the Company entered into discussions with the Colorado Division of Insurance (the Division) to implement Actuarial Guideline 33 and to phase it in over a three-year period as allowed by the guideline. In January, 1996, the Division approved the proposal for this three-year phase-in. The effect on the Company's statutory financial statements will not be significant, since the previous agreement with the Division was similar to the final guideline. Also, the guideline does not affect the Company's policy reserves which are prepared under generally accepted accounting principles as reported in the accompanying consolidated financial statements.
Total revenues for 1997, excluding realized gains and losses on investments, increased to $2.21 billion compared to $1.99 billion for 1996 and $1.80 billion for 1995. Increases in policy charges and net investment income accounted for most of the growth.
The growth in operating expenses also reflects the overall growth in the variable annuity business. Operating expenses were 54 basis points of average variable annuity policy reserves for 1997 comparing favorably to 64 basis points and 80 basis points for 1996 and 1995, respectively. The Company has controlled operating expense growth by increasing productivity through investments in technology and economies of scale.
Fixed annuity policy reserves increased to $14.19 billion as of year-end compared to $13.51 billion a year ago and $12.78 billion as of the end of 1995. The growth reflects increased fixed annuity sales in 1997 through the financial institutions and investment dealer channels. Sales for 1997 were up 34% to $2.14 billion compared to $1.60 billion in 1996. Sales in 1995 totaled $1.86 billion. Most of the Company's fixed annuity sales are premiums allocated to the guaranteed fixed option of variable annuity contracts. Fixed annuity sales for 1997 include $1.67 billion in premiums allocated to the fixed option under a variable annuity contract, compared to $1.24 billion in 1996. Sales growth in 1997 reflects the success of proprietary fixed product sales through financial institutions, as well as the impact of a 1.00% first-year bonus crediting rate offered on The BEST of AMERICA - America's Vision product during the second half of 1997.
Realized gains or losses on sales of investments were included in income, as were write-downs of securities where declines in value were deemed to be other-than-temporary. In determining whether a decline in market value on our fixed income securities was other-than-temporary, we considered the cause of the impairment, the length of impairment, the amount of impairment as a percentage of the fair value of the security and other relevant information about the issuer or security. Although we utilized an independent investment manager to invest and manage our assets in accordance with our investment guidelines, we had the ability and intent to hold these securities until a forecasted recovery of fair value was at least equal to the amortized cost or until maturity. The cost of investment securities sold was determined based upon the specific identification method.
Cash Flows for the Years Ended December 31, 2003 and 2004 Compared to the 145 Day Period Ended May 25, 2005
Prior to the sale of Global Preferred Re, under our reinsurance agreements, we were required to provide security through a letter of credit for the benefit of the ceding life companies. We had three letters of credit issued by Comerica Bank, our custodian, for the benefit of Western Reserve, Pacific Life and Kemper, in the amounts of $5.5 million, $50,000 and $300,000, respectively. We assessed our letter of credit needs in support of each reinsurance agreement.
For a discussion of certain recently issued accounting pronouncements, refer to Note 2 to the Financial Statements.
The Company's investment policy is to invest predominately in fixed maturity securities, mortgage loans, and warehouse mortgage loans on a short-term basis before selling the loans to investors in accordance with the requirements and laws governing the life insurance subsidiaries. Bonds owned by the insurance subsidiaries amounted to $73,598,000, as of December 31, 1998 compared to $49,697,000 as of December 31, 1997. This represents 61% of the total insurance related investments in 1998 as compared to 64% in 1997. Generally, all bonds owned by the life insurance subsidiaries are rated by the National Association of Insurance Commissioners (NAIC). Under this rating system, there are six categories used for rating bonds. At December 31, 1998, .63% ($459,926) and at December 31, 1997, 4.06% ($2,018,000) of the Company's total invested assets were invested in bonds in rating categories three through six which are considered non-investment grade.
The Company is aware of the issues associated with the programming code in existing computer systems as the millennium (Year 2000) approaches. The "Year 2000" problem is pervasive and complex as virtually every computer operation will be affected in some way by the rollover of the two digit year value to 00. The issue is whether computer systems will properly recognize date sensitive information when the year changes to 2000. Systems that do not properly recognize such information could generate erroneous data or cause a system to fail.
Consolidated Balance Sheets, December 31, 1998 and 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Consolidated Statements of Earnings, Years Ended December 31, 1998, 1997, and 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
The accompanying consolidated financial statements include the accounts and operations of the Company. The Company's subsidiaries at December 31, 1998, are as follows:
As of January 1, 1998, the Company adopted SFAS 130, "Reporting Comprehensive Income". SFAS 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of this Statement had no impact on the Company's net income nor stockholders'
Investments, aggregated by issuer, in excess of 10% of shareholders' equity (before net unrealized gains and losses on available for sale securities) at December 31, 1998, other than investments issued or guaranteed by the United States Government, are as follows:
Securities on deposit for regulatory authorities as required by law amounted to $9,924,315 at December 31, 1998 and $7,115,070 at December 31, 1997.
In 1995, the Company changed its method of recognizing revenue and expenses related to the annual new membership and renewal membership revenues and expenses. Prior to 1995, the Company recognized these items upon collection of the membership fees and upon payment of the associated commission expenses. Currently, these revenue items are deferred as collected and the expense items are deferred when paid, and both items are subsequently recognized in the income statement on a straight line basis over the membership period, generally one year. This change in revenue and expense recognition method was deemed to be a correction of an error, and the accompanying consolidated balance sheets and statements of operations have been restated to reflect the appropriate accounting for these items. The current year effect on revenue and associated direct costs recognized approximates 2% and 1%, respectively, of the current year total membership revenue and expense totals.
In May 1992, effective September 1991, the Company adopted a non-employee directors' stock option plan authorizing issuance of up to 300,000 shares of common stock. Options under this plan become exercisable annually over the five years following the date of grant and expire no later than ten years after the date of grant. Options for 75,000 shares were granted at $6.50 per share on September 26, 1991, 67,500 of which remain outstanding at December 31, 1996; options for 25,000 shares were granted at $5.50 per share on January 28, 1993, all of which remain outstanding at December 31, 1996; options for 25,000 shares were granted at $3.375 per share on September 23, 1993, which have since been canceled; and options for 25,000 shares were granted at $0.75 per share on December 22, 1995, all of which remain outstanding at December 31, 1996. Options for 87,500 shares are exercisable at December 31, 1996.
The results of operations of the Company for 1997 are affected by the acquisition and subsequent merger with John Alden Life Insurance Company of New York effective March 31, 1997.
SOURCES OF LIQUIDITY are readily available to the Company in the form of the Company's existing portfolio of cash and short-term investments, and if required, proceeds from invested asset sales. The Company's liquidity is primarily derived from operating cash flows. At December 31, 2001, approximately $767.8 million of the Bond Portfolio had an aggregate unrealized gain of $26.9 million while approximately $360.4 million of the Company's Bond Portfolio had an aggregate unrealized loss of $21.3 million. In addition, the Company's investment portfolio currently provides approximately $13.6 million of monthly cash flow from scheduled principal and interest payments. Historically, cash flows from operations and from the sale of the Company's annuity products have been more than sufficient in amount to satisfy the Company's liquidity needs.
Our excellent financial results, solid profitability and strong capitalisation have enabled us to continue our longstanding practice of paying attractive dividends. We will therefore propose to the Annual General Meeting on 2 May this year that a dividend of CHF 4.50 per share be paid. The high level of this payout has been maintained for the past six years. This is what Baloise means by reliability.
Premiums earned and policy fees (net) 6,750.6 6,651.2 6,686.1 6,630.6 6,554.2
210 sales offices in various states totaling approximately 363,000 square feet; these leases are short-term in length, with remaining lease terms ranging from one to five years.
Net investment income from the change in fair value of S&P 500 Call Options is substantially offset by a corresponding charge to amounts added to policyholder account balances for equity-indexed products. Such income and related charge fluctuate based on the performance of the S&P 500 Index to which the returns on such products are linked.
Insurance policy income includes: (i) premiums received on traditional life products; (ii) the mortality charges and administrative fees earned on universal life insurance; and (iii) surrender charges on terminated universal life insurance policies. In accordance with GAAP, premiums on universal life products are accounted for as deposits to insurance liabilities. Revenues are earned over time in the form of investment income on policyholder account balances, surrender charges, and mortality and other charges deducted from policyholders' account balances.
Premiums collected by this segment increased 118 percent in 1997, to $744.2 million, and decreased 3.6 percent in 1996, to $341.0 million. Individual health premiums increased 328 percent in 1997, to $217.7 million, and decreased 21 percent in 1996, to $50.9 million. Group premiums increased 81 percent in 1997, to $526.5 million, and did not change materially between 1995 and 1996. The recently acquired companies accounted for all of the 1997 increases.
As of December 31, 1997, fixed maturity investments in substantive default (i.e., in default due to nonpayment of interest or principal) had an amortized cost and carrying value of $2.1 million and $1.2 million, respectively. Fixed maturity investments in technical (but not substantive) default (i.e., in default, but not as to the payment of interest or principal) had an amortized cost and carrying value of $.3 million. There were no other fixed maturity investments about which we had serious doubts as to the ability of the issuer to comply on a timely basis with the material terms of the instruments.
The amortized cost and estimated fair value of mortgage-backed securities at December 31, 1997, summarized by type of security, were as follows:
Minority interest, excluding the Company-obligated mandatorily redeemable preferred securities, at December 31, 1997, included a $.7 million interest in common stock of a subsidiary of ALH. At December 31, 1996, minority interest included: (i) $97.0 million of mandatorily redeemable preferred stock of a subsidiary of ALH; and (ii) $.7 million interest in the common stock of a subsidiary of ALH.
Inflation does not have a significant effect on Conseco's balance sheet; we have minimal investments in property, equipment or inventories.
SUN LIFE INSURANCE AND ANNUITY COMPANY OF NEW YORK (Wholly-owned subsidiary of Sun Life Assurance Company of Canada (U.S.)) BALANCE SHEETS
The Company's share of the group's accrued pension cost at December 31, 1995 and 1994 was $97,000 and $79,000, respectively. The Company's share of net periodic pension cost was $18,000 and $79,000, respectively.
The health care cost trend rate assumption has a significant effect on the amounts reported. To illustrate, increasing the assumed health care cost trend rates by one percentage point in each year would increase the post-retirement benefit obligation as of December 31, 1995 by $8,000 and the estimated service and interest cost components of the net periodic post-retirement benefit cost for 1995 by $3,000.
13. FEDERAL INCOME TAXES (CONTINUED): income. Such differences include reserves, depreciation and accrual of market discount on bonds. The Company made cash payments to Sun Life of Canada (U.S.) of $2,421,000, $725,000 and $3,472,000 during 1995, 1994 and 1993, respectively.
The table below summarizes the unrealized gains and losses on fixed maturities, equity securities and securities lending by dollar amount:
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of National Interstate Corporation and subsidiaries as of December 31, 2008 and 2007 and the related consolidated statements of income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2008 of National Interstate Corporation and our report dated March 11, 2009 expressed an unqualified opinion thereon.
Peter P. Hügle* Hans W. Kreis* Werner Künzle J. B. Richard Lieberman* Fulco Lock* Robert Martignier Simon R. Menn* Roger P. Merkelbach
Fewer investments on the part of the economy and a reduced volume of transported goods, both effects of the recession, led to restricted premium growth in leading markets; reinsurance was also not spared this development. Although rates of inflation were in
The modest overall profit which Aviation reinsurance produced is felt to be inadequate. As with Marine Hull business, premium rates have fallen to the level where they are no longer sufficient to bear the accumulation and catastrophe risks covered in this branch.
Life reassurance In force for own account at year's end (excluding annuities)
The tax burden rose by Sw. frs. 7.9 million, or a good 25 °/o, to Sw. frs. 38.4 million, due to an increase in both domestic and foreign direct taxation. In Switzer­ land, the additional amount is a reflection of the relatively good 1973/74 business year, which is used as the criterion for assessment, and the generally higher tax burden in our country.
Adjustment in Policy Valuations — 30,874,588 — 64,807,440 Annuities Purctiased 6,003,491 603,317 5,400,174 5,243,642 Adjustment in Annuity Valuations — 2,416,150 — 2,250,914 Interest on Life Assurance and Annuity Fund 36,108,183 37,940,755
The Generai Management: W. Leimbacher H. F. Rudoif W. Diehi H. Cdermatt
Marketing, General and Administrative Expenses. For the year ended December 31, 2000, marketing, general and administrative expenses as a percentage of operating revenue decreased compared to the prior year due to higher operating revenue in 2000.
Impairment, Disposition, Restructuring, Office of Personnel Management (“OPM”) and Other Charges (Credits). We recognized net pretax charges of $9 million ($5 million or $0.15 diluted loss per share, net of tax) for the year ended December 31, 2000. See Note 9 of the Notes to Consolidated Financial Statements.
Increased borrowings on our credit facility to fund our share repurchase program; and
Medicare Premiums. Medicare premiums increased five percent or $289 million for the year ended December 31, 1999 compared to premiums in the prior year as follows:
Other Income. Other income increased for the year ended December 31, 1999 compared to the prior year. The increase was primarily due to increased mail-service revenues from Presciption Solutions, where we, rather than network retail pharmacies, collect the member copayments.
Impairment, Disposition, Restructuring and Other Charges (Credits). We recognized impairment, disposition, restructuring and other pretax credits in 1999 totaling $2 million (after tax charges of $2 million or $0.04 diluted loss per share). The after tax and per-share amounts were losses because the goodwill impairment was not deductible for income tax purposes. See Note 9 of the Notes to Consolidated Financial Statements.
Investing Activities. For the year ended December 31, 2000, our investing activities provided $72 million in cash. This compared to the use of $251 million during the year ended December 31, 1999. The sale of marketable securities resulted in $178 million of the $323 million net increase over the prior year. The increase was partially offset by $105 million of purchases of property, plant and equipment primarily related to computer equipment and software.
We paid a net $138 million in 2000 on our long-term debt (net of other borrowings), including net credit facility payments of $140 million, compared to borrowing a net $325 million under the credit facility (net of payments) for the same period in 1999;
Retroactive Adjustments Risk. Some of the fee-for-service and risk-based arrangements may be signed following the effective date of the contract and may provide for retroactive adjustments to the beginning of the contract year. The retroactive adjustment feature can result in a material change in our estimate of health care costs.
The capability of our current claims processing system, which could affect our ability to estimate claims liabilities and establish receivables;
New and proposed legislation that would hold HMOs liable for medical malpractice (including proposed federal legislation that would remove or limit the federal preemption set forth in ERISA that precludes most individuals from suing their employer-based health plans for causes of action based upon state law). To date, Arizona, California, Oklahoma, Texas and Washington have enacted legislation that may increase the likelihood of lawsuits against HMOs for malpractice liability;
After purchase, amortization of the asset occurs in proportion to profits emerging from the purchased policies. The asset is amortized over the expected life of the block of business. The percentages of expected net amortization of the beginning balance of the total PVFP asset as of December 31, 2004 are expected to be between 9% and 14% in each of the years 2005 through 2009.
We periodically evaluate whether the declines in fair value of our investments are other-than-temporary. Our evaluation consists of a review of qualitative and quantitative factors. We also consider additional factors to determine whether the declines in fair value are other-than-temporary, such as downgrades of the security by a rating agency, deterioration in the financial condition of the issuer, and other publicly available issuer-specific news or general market conditions. For investments in companies with no quoted market price, we consider similar qualitative and quantitative factors and also take into account the cost of the investment, the type of investment, subsequent purchases of the same or similar investments, the current financial position and operating results of the company invested in, and such other factors as may be relevant. Declines in fair values of securities deemed to be other-than-temporary are recognized as a realized loss.
A $7.4 million valuation allowance has been provided on certain operating loss carryforwards at December 31, 2004. We reached this conclusion after considering the availability of taxable income in prior carryback years, tax planning strategies, and the likelihood of future taxable income exclusive of reversing temporary differences and carryforwards. Differences between forecasted and actual future operating results could adversely impact our ability to realize our deferred income tax assets.
• The decline in net investment yield for 2004 and 2003 resulted from investing new funds generated from annuity sales, from principal repayments, and from the sale of securities during this historically low interest rate environment at interest rates lower than our average portfolio rate.
• Net realized investment gains for 2003 were $17.8 million. The majority of the gain was attributable to a strategy to realize income tax benefits from capital loss carryforwards during 2003.
General: Our Other Services segment consists of revenues and expenses primarily related to corporate operations and financing costs. During the third quarter of 2003, we sold the assets of our marketing services company, Savers Marketing Corporation, for a $200,000 note receivable. The sale led to the elimination of commission income and commission expenses.
Our health services subsidiary has not been profitable and we expect it to continue to incur substantial losses.
We are likely to require additional funding, which may be difficult to obtain.
Our Personal Lines business unit is located at 6500 Pinecrest, Suite 100, Plano, Texas. The suite is located in a one story office building and contains 23,941 square feet of space. The rent is currently $28,330 per month pursuant to a lease that expires January 31, 2016.
On June 21, 2005, we entered into a trust preferred securities transaction pursuant to which we issued $30.9 million aggregate principal amount of subordinated debt securities due in 2035. To effect the transaction, we formed Trust I as a Delaware statutory trust. Trust I issued $30.0 million of preferred securities to investors and $0.9 million of common securities to us. Trust I used the proceeds from these issuances to purchase the subordinated debt securities. Our Trust I subordinated debt securities bear an initial interest rate of 7.725% until June 15, 2015, at which time interest will adjust quarterly to the three-month LIBOR rate plus 3.25 percentage points. Trust I pays dividends on its preferred securities at the same rate. Under the terms of our Trust I subordinated debt securities, we pay interest only each quarter and the principal of the note at maturity. The subordinated debt securities are uncollateralized and do not require maintenance of minimum financial covenants. As of December 31, 2010, the balance of our Trust I subordinated debt was $30.9 million.
Effective, January 1, 1994, the Company changed its method of valuing fixed maturities available for sale from lower of aggregate amortized cost or market value to market value, as required by Statement of Financial Accounting Standards No. 115 "Accounting for Certain Investments in Debt and Equity Securities." Also, on January 1, 1994 and December 1, 1995, the Company transferred an additional $20,898,578 and $11,193,866, respectively, in securities from its held-for-investment portfolio to its held-for-sale portfolio.
Premium income on traditional life contracts has increased 17% in 1995 and 14% in 1994. Prior to 1994, premium income on these contracts was unchanged. The increase in 1995 and 1994 came from the sales of the Company's new participating whole life policies.
In November 1995, the Financial Accounting Standards Board announced that for the year ended December 31, 1995, companies that are subject to the reporting requirements of SFAS No. 115 would have a one-time opportunity to reclassify securities currently classified as held to maturity without the risk of tainting the accounting for investments on a historical basis. The Company has evaluated the securities contained in this portfolio and has determined under which conditions it may dispose of such securities. In light of this review, the Company has reclassified approximately $11,197,000 of securities which were previously classified as held-to-maturity to the available-for-sale account. The result of such reclassification was to increase shareholders' equity by approximately $62,000, net of applicable deferred taxes.
The following table sets forth our selected consolidated financial data, which were derived from our consolidated financial statements and should be read in conjunction with our audited consolidated financial statements, including the Notes thereto, beginning on page of this Report. See also
We have consistently followed the same basic method of estimating loss payments for more than 10 years. Independent consulting actuaries have reviewed our title loss reserves and found them to be adequate at each year end for more than 10 years.
Regulators periodically review title insurance premium rates and may seek reductions in the premium rates charged. In late 2006, the Texas Department of Insurance reduced rates by 3.2% effective February 1, 2007. The effect of this rate change is not expected to have a material impact on our consolidated financial condition or results of operations.
REI revenues. Real estate information services revenues were $81.2 million in 2006, $82.5 million in 2005 and $68.9 million in 2004. The decrease in 2006 resulted primarily from reduced revenues related to post-closing services and electronic mortgage documents. These decreases were offset somewhat by an increase in revenues in our automated mapping services due to an acquisition. In 2006, revenues and pretax earnings from our tax-deferred property exchange business were negatively impacted due to a shift from taxable income to a higher percentage of tax-exempt income than was earned in 2005.
Retention by agencies. The amounts retained by agencies, as a percentage of revenues generated by them, were 80.7%, 81.2% and 81.6% in the years 2006, 2005 and 2004, respectively. Amounts retained by title agencies are based on agreements between agencies and our title underwriters. This retention percentage may vary from year-to-year because of the geographical mix of agency operations, the volume of title revenues and, in some states, laws or regulations.
oFor the years ended December 31, 2019 and 2018, the Company accrued $10.7 million and $7.0 million, respectively, of estimated amounts that the Company paid or will potentially pay into the New York State adjustment pool as a result of IHC having significantly better experience with its PFL business than that of the industry as a whole;
Management believes that the Company's methods of estimating the liabilities for policy benefits and claims provided appropriate levels of reserves at December 31, 2019. Changes in the Company's policy benefits and claims estimates are recorded through a charge or credit to its earnings.
Results of Operations for the Year Ended December 31, 2019 Compared to the Year Ended December 31, 2018
Other income increased $5.4 million in 2019 compared to the same period in 2018. In 2019, other income included a $3.6 million pretax gain on the sale of an equity investment and $1.3 million of income from partnership investments offset by a $3.7 million impairment loss on an equity investment in Ebix Health Exchange from its carried value to its estimated fair value. In 2018, other income included a $2.3 million impairment loss on an equity investment from its carried value to its estimated fair value and $2.1 million of losses from partnership investments.
The Specialty Health segment had a net favorable development of $5.9 million related to prior years primarily from: (i) $1.9 million of favorable development in short-term medical business due to paid claim activity below anticipated levels as medical investigations were completed and as the reliability of claim payment patterns at a newer claim administrator emerged; (ii) $2.1 million of favorable development from the occupational accident line in run-off; and (iii) favorable development in other lines of Specialty Health business.
Subject to making additional repurchases, acquisitions and investments, the Company will remain highly liquid as a result of the continuing shorter duration of the portfolio. The short duration of our portfolio enables us, if we deem prudent, the flexibility to reinvest in much higher yielding longer-term securities, which would significantly increase investment income in the future. A low duration portfolio such as ours also mitigates the adverse impact of potential inflation. IHC will continue to monitor the financial markets and invest accordingly.
We market these products to the self-employed and individual markets through independent agents contracted with our insurance subsidiaries. The Company has approximately 1,300 independent writing agents per week in the field selling health insurance in 44 states.
dollars as benefits. The amount of benefit expenses reported each year is impacted by the estimate of claim liabilities. See discussion below in “Critical Accounting Policies” in the sections titled “Estimates of Claim Liabilities” and “Changes in SEA Claim Liability Estimates.”
The table below sets forth income (loss) from continuing operations for our Disposed Operations for the years ended December 31, 2008, 2007 and 2006:
Set forth below is certain summary financial and operating data for the Company’s former Student Insurance Division for each of the three most recent fiscal years:
Investments are reviewed quarterly (or more frequently if certain indicators arise) to determine if they have suffered an impairment of value that is considered other than temporary. Management’s review considers the following indicators of impairment: fair value significantly below cost; decline in fair value attributable to specific adverse conditions affecting a particular investment; decline in fair value attributable to specific conditions, such as conditions in an industry or in a geographic area; decline in fair value for an extended period of time; downgrades by rating agencies from investment grade to non-investment grade; financial condition of the issuer deterioration and situations where dividends have been reduced or eliminated or scheduled interest payments have not been made. Management monitors investments where two or more of the above indicators exist. If investments are determined to be other than temporarily impaired, a loss is recognized at the date of determination.
Set forth in the table below is the summary of the incurred but not reported claim liability by business unit at each of December 31, 2008, 2007 and 2006:
The favorable claim liability development experience at ZON Re in 2008 of $2.9 million was due to the release of excess reserves. The unfavorable claim liability development experience in 2007 of $734,000 was due to certain large claims reported in 2007 associated with claims incurred in prior years. The favorable claim liability experience of $2.5 million in 2006 is due to the release of reserves held at December 31, 2005 for catastrophic excess of loss contracts expiring during 2006.
Total consolidated revenues of $43,767,330 for 1994 decreased 13% from consolidated revenues of $50,300,201 for 1993.
For The Years Ended December 31, 1995 and 1994 - ----------------------------------------------
During 1995, the Company had a decrease in cash and cash equivalents of $33,291. Operating activities accounted for a $259,541 increase in cash and $4,996 was provided by a decrease in short-term investments. These increases were offset by, among other things, repayment of $132,217 of long-term bank debt and the purchase of fixed assets of $163,242.
To the Board of Directors and Stockholders of Healthplex, Inc. 60 Charles Lindbergh Boulevard Uniondale, New York 11553
Stockholders' equity: Common stock $.001 par value, authorized 20,000,000 shares; issued & outstanding 3,586,682 in 1995 and 1994 3,587 3,587 Paid-in capital 1,971,328 1,971,328
Investment securities consist of bond funds, governmental obligations and United States Treasury Notes with a maturity of more than three months when purchased.
HEALTHPLEX, INC. & SUBSIDIARIES - ------------------------------- NOTES TO FINANCIAL STATEMENTS - -----------------------------
The principal liquidity requirement of the Company's insurance subsidiary, Oracle Re, in addition to funding operating expenses, is the fulfillment of the obligations under its reinsurance agreements. The primary source of funding for these obligations, in addition to operating earnings, is the net cash flow from the investments included in Oracle Re's investment portfolio. Each of the Company's existing reinsurance agreements involved a one-time payment to Oracle Re at inception and does not provide for ongoing reinsurance premiums. In 1999, Oracle Re and RSL effected the recapture of approximately 35% of the group long term disability liabilities ceded to Oracle Re under its quota share reinsurance agreement with RSL. In connection with such recapture, $10.0 million in cash, the amount of the reserves recaptured, was transferred to RSL.
Aside from the Company's investment in preferred securities of the LLC, 13.9% of the Company's investment portfolio at December 31, 1999 was invested in fixed maturity securities, which had a weighted average credit rating of "AAA" as rated by Standard & Poor's Corporation. At December 31, 1999, 93% of the Company's fixed maturity securities portfolio other than such preferred securities consisted of mortgage-backed securities. Mortgage-backed securities subject the Company to a degree of interest rate risk, including prepayment and extension risk, which is generally a function of the sensitivity of each security's underlying collateral to prepayments under varying interest rate environments and the repayment priority of the securities in the particular securitization structure. The Company seeks to limit the extent of this risk by emphasizing the more predictable payment classes and securities with stable collateral.
In addition, the settlement required the Company to obtain new capital of $50 million and contribute the funds to the surplus of the insurance sub- sidiaries, consisting of $30 million by March 31, 1995 and $20 million by December 31, 1995. The $30 million capital contribution was made on March 30, 1995. The Company has been informed that the $20 million capital requirement has been waived by the DOI due to the significant recovery in statutory surplus in 1995.
securities are sold, the cost used to determine any realized gain or loss is based on specific identification.
Income taxes do not bear the expected relationship to income because of differences in the recognition of revenue and expense for tax and financial reporting purposes. The tax effects of such differences are:
On both April 1, 1996 and July 1, 1996, the aggregate commitment will be reduced by $5,625,000, and thereafter by $11,250,000 on the first day of each quarter through the Facility's maturity on April 1, 2001. Principal repayments are required when total outstanding advances exceed the aggregate commitment. The Company may prepay principal amounts of the advances, as well as voluntarily cause the aggregate commitment to be reduced at any time during the term of the Facility.
Reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company periodically reviews the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. It is the Company's policy to hold collateral under related reinsurance agreements in the form of letters of credit for unpaid losses for all reinsurers not licensed to do business in the Company's state of domicile.
(4) In the fourth quarter of 2001, the Company reassessed the carrying value of intangibles and capitalized software which resulted in charges to earnings of $51.4 million, or $32.9 million after taxes.
Purchase Accounting and Goodwill and Long-Lived Assets Valuations - During the years ended December 31, 2004 and 2003, the Company completed 27 and 19 acquisitions, respectively. These acquisitions were intended to grow the Company’s title operations and expand its real estate transaction services portfolio. As a result of these acquisitions, the Company assigned fair values to the assets and liabilities purchased and increased the amount of goodwill and other intangibles recorded on its balance sheet. The Company utilizes the services of an independent appraisal company to assist it with the allocation of purchase price to acquired assets (including goodwill) and liabilities.
Lender Services - Lender Services salaries and employee benefit costs increased $42.6 million, or 188.5% in 2004 due to acquisitions made in 2003 and early 2004. Lender services personnel costs tend to increase during periods of increased sales volume and decrease when sales volume is lower. This is the case because a significant amount of work is required to set up new accounts. Once accounts are established, monitoring and maintenance activities are less labor intensive. The Company anticipates slightly higher salaries and employee benefit costs in 2005 due to the acquisitions made in 2004.
In 2003, the Company consolidated certain office space. The Company incurred charges of approximately $0.8 million in the fourth quarter of 2003 related to its decision to consolidate office space in two markets. This charge was offset by a reduction of $0.5 million related to the 2002 accrual.
During 2004, the Company completed acquisitions with an aggregate purchase price of approximately $202.1 million. The 2004 purchases were funded through a mixture of cash, invested cash, investments and utilization of the Company’s credit facility. The Company will continue to selectively evaluate additional acquisitions should attractive candidates be identified.
As a national provider of real estate transaction products and services, the Company participates in an industry that is subject to significant change, frequent new product and service introductions and evolving industry standards. In addition, alternatives to traditional title insurance, such as lien protection products, have emerged in recent years. The Company believes