felanders/preprocessed huggingface dataset:
General casualty premiums from the recently formed MMO Agencies contributed approximately $12.1 million in gross premiums written during 2009. This compares to a contribution of $2.7 million in 2008 from MMO agencies.
The Company’s combined ratio (the loss ratio, the acquisition cost ratio and general and administrative expenses divided by net premiums earned) was 98.7% for the year ended December 31, 2009 as compared to 112.1% for the same period in 2008.
Within this limitation, the maximum amount which could be paid to the Company out of the domestic insurance companies’ surplus was approximately $10.2 million as of December 31, 2009. Dividends declared by the domestic insurance companies’ in 2009 amounted to $10.9 million. There were no dividends declared by the insurance subsidiaries in 2008.
Reinsurance reinstatement premiums are recorded, as a result of losses incurred by the Company, in accordance with the provisions of the reinsurance contracts. Upon the occurrence of a large severity or catastrophe loss, the Company may be obligated to pay additional reinstatement premiums under its excess of loss reinsurance treaties up to the amount of the original premium paid under such treaties. Reinsurance reinstatement premiums incurred for the years ended December 31, 2009, 2008 and 2007 were $0, $1.8 million and $3.9 million, respectively.
The primary pricing sources for the Company’s commercial loan and private equity portfolios are reviewed for reasonableness, based on the Company’s understanding of the respective market. Prices may then be determined using valuation methodologies such as discounted cash flow models, as well as matrix pricing analyses performed on non-binding quotes from brokers or other market-makers. As of December 31, 2009, the Company did not utilize an alternate valuation methodology for its commercial loan or private equity portfolios..
In April 2009, the FASB issued FSP FAS 157-4 (ASC 820), Determining the Fair Value When the Volume and Level of Activity for the Asset and Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (“SFAS 157-4”). SFAS 157-4 provides additional guidance for estimating fair value in accordance with FASB 157, Fair Value Measurements, when prices in markets have become less active and require adjustments to fair value. SFAS 157-4 is effective for interim and annual reporting periods ending after June 15, 2009. The adoption of SFAS 157-4 did not have a material impact on the Company’s financial condition, results of operations or liquidity.
The statements in this discussion and analysis concerning expectations regarding the Position Holder Trust’s and the IRA Partnership's future performance, liquidity and capital resources, as well as other non-historical statements are forward-looking statements that involve substantial risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects” and variations of these words and similar expressions are intended to identify forward-looking statements. although not all forward-looking statements include these words. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward- looking statements, including the factors set forth below and elsewhere in this report:
The change in estimated fair value of the Trust’s life insurance Policies includes realized gains (losses) on matured policies in addition to unrealized gains (losses) on policies which is affected by unwinding the discount over time, and changes in valuation assumptions, including mortality and discount rates.
Also subsequent to the closing of the reporting period, to provide for short term capital needs of the Position Holders Trust, if any, effective as of January 30, 2019, the Position Holders Trust entered into a $15 million revolving credit facility with Veritex Community Bank of Dallas, Texas. The Veritex Credit Facility, is secured by a lien on the Position Holder Trust’s assets, has an initial 2-year term and, as to any amounts drawn thereunder, shall bear interest at the rate of 6% per annum.
As of December 31, 2018, and December 31, 2017, the Trust holds $14.3 million and $23.6 million, respectively, of maturities collected on behalf of continuing factional holders pending payment.
Subsequent to the closing of the reporting period, effective as of January 17, 2019, the Position Holders Trust paid the remaining balance in full related to the Exit Loan Facility and terminated the $55 million Exit Loan Facility with Vida Opportunity Fund, LP. All liens and security interests of the lenders under these loan facilities have been terminated and released.
Year Ended September 30, 1996 Compared with Year Ended September 30, 1995
Based on the Company's net income for the year ended September 30, 1997, the Company currently expects to declare quarterly dividends in the range of $0.71 to $0.75 per Common Share during the 1998 fiscal year. The actual amount and timing of any future Common Share dividends is at the discretion of the Board. The declaration and payment of any dividends is dependent upon the profits and financial requirements of the Company and other factors, including certain legal, regulatory and other restrictions. There can be no assurance that the Company's dividend policy will not change or that the Company will declare or pay any dividends in future periods.
The Financial Accounting Standards Board has not issued any Financial Accounting Standards, not already adopted by the Company, which would have a material impact on the results of the Company.
Net income per Common Share is calculated by dividing net income available to common shareholders, by the weighted average number of Common Shares and Common Share equivalents outstanding during the period. The Exchangeable Non-Voting Shares of LaSalle Re are considered Common Share equivalents, as are stock options and stock appreciation rights, which are included in the computation of weighted average number of
The following table summarizes the composition of the fair value of available for sale securities by ratings assigned or, with respect to non-rated issues, as estimated by the Company's investment managers.
The Company has issued options to purchase 136,350 Common Shares to certain shareholders and their affiliates and LaSalle Re has issued options to purchase 2,199,780 Exchangeable Non-Voting Shares. These options became exercisable on October 1, 1996 and may be exercised until November 22, 2003.
The value of each SAR equals the fair market value of a Common Share less the base value on the exercise date, subject to anti-dilution adjustments. The fair market value shall be determined by the board of directors of the Company, but shall be based on the market price of the Common Shares. The base value of each SAR at the time of issuance was $16.67, minus dividend adjustments. The current base value is $9.03.
In this regard, the declaration of dividends from retained earnings and distributions from additional paid in capital is limited to the extent that the above requirements are met. At September 30, 1997, there were no restrictions on the distribution of retained earnings.
Financial assets that are lent to a third party or that are transferred subject to a repurchase agreement at a fixed price are not derecognized as the Company retains substantially all the risks and rewards of asset ownership. The lent securities are included in fixed maturity AFS securities in the Balance Sheets. A liability is recognized for cash collateral received, required initially at
The Company’s $8.1 million of gross unrealized losses within the government and government agencies sector has a fair value of $168.3 million. All of the issuers in this sector are rated above investment grade and continue to make payments in accordance with the original bond agreements. All of the unrealized losses relate to securities issued by the government of the United States of America and are primarily due to rising interest rates during 2013.
Amortization of VOBA was $5.5 million and $19.9 million for the years ended December 31, 2013 and 2012, respectively, which included favorable unlocking of $12.7 million and $4.3 million, respectively. 2013 was impacted by favorable equity markets and positive gross profits as compared to 2012.
(c) Short futures result in losses when equity markets rise. The increase in futures losses can be attributed to a larger increase in the S&P in 2012 as compared to 2011.
The combined underwriting result of all the departments gives reason for consi­ derable satisfaction.
Premiums for Retrocession, less cancellations Frs. 96,212,222.72 Premiums for Retrocession for which no reserve is necessary , 14,157,475.19 Commission, less Retrocession Claims paid less Retrocession Premium Reserve, less Retrocession .... Reserve for unsettled Claims, less Retrocession Reserve for extraordinary Losses
Life DeptPremium Reserve • Frs. 114,879,761 Annuity Fund 4,849,031 Reserve for unsettled Claims „ 1,679,389
The historical consolidated financial data presented below as of and for each of the periods ended December 31, 2005, 2004, 2003, 2002 and 2001 were derived from our consolidated financial statements which are incorporated herein by reference to the Annual Report. The selected consolidated financial data should be read in conjunction with our consolidated financial statements and related notes thereto, and with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” also contained in the Annual Report and incorporated herein by reference.
At December 31, 2009, 97.5% of the Company's fixed maturities were investment grade.
Management believes that the Company's methods of estimating the liabilities for insurance reserves provided appropriate levels of reserves at December 31, 2009. Changes in the Company's reserve estimates are recorded through a charge or credit to its earnings.
At December 31, 2009, the Company had $5,521,000 of restricted cash at our MGUs. The amount at our MGUs is directly offset by corresponding liabilities for Premium and Claim Funds Payable of $5,521,000. This asset, in part, represents the premium that is remitted by the insureds and is collected by our MGUs on behalf of the insurance carriers they represent. Each month the premium is remitted to the insurance carriers by our MGUs. Until such remittance is made the collected premium is carried as an asset on the balance sheet of each of our MGUs with a corresponding payable to each insurance carrier. In addition to the premium being held at our MGUs, our MGUs are in possession of cash to pay claims. The cash is deposited by each insurance carrier into a bank account that our MGUs can access. The cash is used by our MGUs to pay claims on behalf of the insurance carriers they represent. The availability of cash enables our MGUs to reimburse claims in a timely manner.
Consolidated Statements of Operations for the years ended December 31, 2009 and 2008
To the extent that the present value of the cash flows generated by a debt security is less than the amortized cost, a credit loss exists, and an other-than-temporary impairment is recognized through earnings. It is reasonably possible that further declines in estimated fair values of such investments, or changes in assumptions or estimates of anticipated recoveries and/or cash flows, may cause further other-than-temporary impairments in the near term, which could be significant.
to account for a share issuance by an investee as if the investor had sold a proportionate share if its investment. Any gain or loss to the investor resulting from an investee’s share issuance shall be recognized in earnings. The adoption of this standard, effective January 1, 2009, did not have a material effect on the Company’s consolidated financial statements.
At December 31, 2009 and 2008, a total of 25 and 27 fixed maturities, respectively, and 12 and 4 equity securities, respectively, were in a continuous unrealized loss position for less than 12
As of December 31, 2009, AMIC believes there were no material uncertain tax positions that would require disclosure under GAAP.
Net income per share on a fully diluted basis increased 41.5% to $1.63 for 1996 compared to $1.15 per share in 1995. Operating earnings per share on a fully diluted basis were $1.64 for 1996 compared to $1.13 per share in 1995. Operating earnings exclude realized investment losses of approximately $162,000 in 1996 and realized investment gains of approximately $173,000 in 1995.
In 1996, the Company reported realized investment losses of $162,000, resulting primarily from closing transactions in connection with the Company's program of selling short-term covered calls. This compares to $173,000 of investment gains in 1995 realized primarily from the sale of equity securities.
In January 1997, Standard & Poor's Corporation ("S&P") raised Triad's claims-paying ability rating to "AA" from "AA-".
As market interest rates have declined over the past several years, prepayments on certain PAC and TAC investments have increased resulting in a loss of some prepayment protection. Approximately 59.0% of the Company's PAC and TAC investments at December 31, 1996, have lost some of this protection. However, the Company believes the yield earned on these issues continues to adequately compensate for the reduced prepayment protection.
Mortgage Loans on Real Estate. Mortgage loans on real estate are carried at unpaid principal balance, net of allowance for losses. The allowance is based on estimated uncollectible amounts considering past credit loss experience and current economic conditions and is subject to fluctuation based on actual experience. Loans for which the Company determines that it is probable that all amounts due under the contractual terms will not be collected, are deemed to be impaired and are reported at the lower of amortized cost or fair value of the underlying collateral, less estimated costs to sell.
Investment expenses consist primarily of real estate and portfolio management expenses.
The Company has three qualified defined contribution retirement plans: a non-contributory money-purchase retirement plan, a non- contributory discretionary profit sharing plan, and a contributory 401(k) plan. The plans cover substantially all employees who have met the prescribed requirements for participation. The Company contribution to the money-purchase retirement plan is 3% of each employee's compensation plus an additional 3% of compensation in excess of the Social Security wage base. The Company contribution to the profit sharing plan is at the discretion of the insurance subsidiaries' Boards of Directors in consultation with WNC's Board of Directors. Employees may contribute up to 12% of compensation to the 401(k) plan. The Company matches employee contributions dollar for dollar up to a maximum of 3% of compensation. The net pension expense for continuing operations for the defined contribution plans in 1996, 1995, and 1994 was $1,633,000, $1,237,000, and $928,000, respectively. As a result of the Company's decision to dispose of the health business in 1996, the plans are considered partially terminated under present income tax law. The affect of the partial termination is an accelerated vesting schedule which vests at 100% those employees who leave the Company under certain conditions on or after August 1, 1996. Active employees who remain with the Company are not 100% vested until they meet the service requirements of the plans.
terminate the accrual of future benefits. The funding policy is to contribute annually at least the minimum amounts required by the IRC.
The funded status and the amounts reported in WNC's Consolidated Balance Sheet as part of other liabilities for the defined benefit plans at December 31 follow:
The effect of reinsurance on insurance premiums and policy charges earned from continuing operations for the years ended December 31 follows:
The Internal Revenue Service is currently examining the Company's tax returns for 1992 through 1994.
Based on weighted average diluted common shares outstanding of 49.1 million, 52.1 million, 56.8 million and 60.8 million for 2013, 2012, 2010, and 2009, respectively. Diluted calculation was not applicable for 2011.
Our combined ratio decreased by 9.3 points to 84.5% in 2013 compared to 93.8% in 2012. The loss ratio component decreased 7.0 points in 2013, over the same period last year primarily due to the $215.0 million decrease in current year catastrophe losses, which lowered the loss ratio by 5.7 points. The commission and brokerage ratio components decreased 2.3 points in 2013 due to the one time impact of the termination of the Florida quota share contract in 2012 and the increase in excess of loss business which carries a lower commission than pro rata business. The other underwriting expense ratio components remained flat in 2013 over the same period last year.
Shareholders’ equity increased by $234.8 million to $6,968.3 million at December 31, 2013 from $6,733.5 million at December 31, 2012, principally as a result of $1,259.4 million of net income attributable to Everest Re Group, share-based compensation transactions of $83.3 million and $23.6 million of net benefit plan obligation adjustments, partially offset by repurchases of 4.7 million common shares for $621.9 million, $402.8 million of unrealized depreciation on investments, net of tax, $106.7 million of shareholder dividends and $0.2 million of net foreign currency translation adjustments.
The pre-tax equivalent total return for the bond portfolio was approximately 0.6%, 5.0% and 5.1%, respectively, for 2013, 2012 and 2011. The pre-tax equivalent return adjusts the yield on tax-exempt bonds to the fully taxable equivalent.
Intangibles-Goodwill or Other. In September 2011, the FASB amended the authoritative guidance for disclosures on Goodwill Impairment. The amendment allows an entity first to assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis in determining whether it is necessary to perform the two-step goodwill impairment test. This guidance is effective for periods beginning after December 15, 2011. The Company implemented this guidance as of January 1, 2012.
We are a property and casualty insurance writer that provides a range of specialty insurance products as well as a variety of segmented commercial and personal insurance products. With roots dating back to 1831, we have been operating for more than 175 years and have many long-standing relationships with independent agencies, which constitute our primary distribution channel. We consist of a group of operating companies which are U.S.-based property and casualty insurance writers, substantially all of which operate in a multi-company pool. Pooling arrangements permit the participating companies to rely on the capacity of the entire pool's capital and surplus rather than just on its own capital and surplus. Under such arrangements, the members share substantially all insurance business that is written, and allocate the combined premiums, losses and expenses. In 2007, our net written premiums totaled $1.9 billion and we had total assets of $9.4 billion and total common shareholder's equity of $1.8 billion at December 31, 2007.
On September 30, 2005, we sold National Farmers Union Property and Casualty Company (NFU) to QBE Insurance Group, Ltd., or QBE, for $138.3 million in cash. NFU is included in discontinued operations for all periods presented through the date of its sale. We recognized a gain of $26.2 million ($21.1 million after-tax) on the sale which is included in gain on sale of discontinued operations and is presented net of tax in the statements of consolidated income and comprehensive income.
Our income from continuing operations excludes the results of operations for the above entities for all periods presented. Net income or loss from discontinued operations has been presented separately and is shown net of related income taxes.
portfolio returned 12.6% during 2007 and 25.6% in 2006, or 7.1 and 9.8 percentage points better than the S&P 500 benchmark, respectively, as we benefited from our investments in the energy, commodities and utility sectors.
(1)Represents publicly traded residential mortgage-backed securities which carry the full faith and credit guaranty of the U.S. government (e.g., GNMA) and publicly traded residential mortgage-backed securities which are guaranteed by a government sponsored entity (e.g., FNMA, FHLMC).
(1)The Berkshire Preferred Stock is economically defeased. See "Management's Discussion and Analysis of Financial Condition and Results of Operations-Economic Defeasance."
During 2007, we declared and paid dividends in cash of $93.4 million to FAEH.
Primary Insurance Operations Case and IBNR Reserves by Line of Business
Since 2003 our Individual Risk segment has been issuing insurance policies for certain commercial liability coverages, including general, automobile and professional liability risks. The claim reporting and claim development periods of these risks are generally expected to be longer than the reporting and development periods for our property risks, and, accordingly, there is normally greater uncertainty in the estimation of the reserves associated with these policies.
Reinstatement premiums are estimated after the occurrence of a significant loss and are recorded in accordance with the contract terms based upon paid losses and case reserves reported in the period. Reinstatement premiums are earned when written.
During 2006, given the magnitude of the hurricane losses from 2005 and 2004 and due to delays in receiving claims data and the likelihood of receiving new or revised data from our counterparties, the estimates of hurricane losses and related recoveries are likely to change, perhaps materially. Changes in these estimates will be recorded in the periods in which they occur.
subsidiaries to maintain certain measures of solvency and liquidity. At December 31, 2005, the statutory capital and surplus of our Bermuda insurance subsidiarieswas $2.4 billion (2004 - $2.3 billion), and the amount of capital and surplus required to be maintained was $573.0 million (2004 - $520.6 million). During 2005, Renaissance Reinsurance, DaVinci and Glencoe declared aggregate cash dividends of $337.8 million, $5.0 million and $nil, respectively, compared with $234.4 million, $3.2 million and $55.0, respectively, in 2004. Because of an accumulated deficit in earned surplus from prior operations, Glencoe Group, Glencoe, DaVinciRe and DaVinci are currently not permitted to pay ordinary dividends or return capital to their shareholders without Bermuda Monetary Authority approval.
In the aggregate, our operating subsidiaries have historically produced sufficient cash flows to meet their expected claims payments and operational expenses and to provide dividend payments to us. Our subsidiaries also maintain a concentration of investments in high quality liquid securities, which management believes will provide additional liquidity for extraordinary claims payments should the need arise. Additionally, we maintain a $500 million revolving credit facility to meet additional liquidity and capital requirements, of which $150 million was drawn in December 2005 and which remained outstanding at December 31, 2005.
Our gross case reserves, additional case reserves and IBNR by line of business at December 31, 2005 and 2004 are as follows:
Net income for 2000 was $94.7 million, an 18.5% increase over $79.9 million in 1999. The increase resulted primarily from premium growth combined with improved claims experience in the Employment Benefit - Insurance segment.
Net investment income increased $21.7 million, or 6.4%, in 2000 compared to 1999. The increase was primarily the result of an increase in average invested assets of 7.4% in 2000 compared to 1999. The portfolio yield for fixed maturity securities increased to 7.01% at December 31, 2000 from 6.94% at December 31, 1999. The portfolio yield for commercial mortgage loans decreased to 8.34% at December 31, 2000 from 8.37% at December 31, 1999.
Including $4.3 million in pre-tax charges related to the terrorist events of September 11, policyholder benefits increased $132.3 million, or 16.5%, for 2001 compared to 2000. The increase was primarily a result of
Investment income is presented net of investment expenses. For all investments except investment securities, realized investment gains and losses are recognized using the specific identification method. For investment securities, realized investment gains and losses are recognized on a first-in, first-out basis. For all investments, declines in fair values below amortized cost are recorded as realized investment losses if the declines are determined to be other than temporary. Net investment income and realized investment gains and losses related to separate accounts are included in the separate account assets and liabilities.
Amortized cost and estimated fair values of investment securities available-for-sale were as follows at December 31:
The Company has two non-contributory defined benefit pension plans and a postretirement benefit plan. The following table provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for the years ended and the funded status at December 31:
Eligible executive officers are covered by a non-qualified supplemental retirement plan, which is currently unfunded. The accrued benefit cost was $6.9 million and $6.0 million, respectively, at December 31, 2001 and 2000. Expenses related to the plan were $1.4 million, $1.1 million and $1.5 million in 2001, 2000 and 1999, respectively.
The weighted-average grant-date fair value of option awards in 2001, 2000 and 1999 was $20.95, $12.37 and $12.06, respectively.
Recoveries recognized under reinsurance agreements were $34.9 million, $10.7 million and $10.5 million for 2001, 2000 and 1999, respectively.
In March 1998 the NAIC adopted the Codification of Statutory Accounting Principles (“Codification”), which became effective January 1, 2001. Codification is intended to standardize regulatory accounting and reporting to state insurance departments. However, statutory accounting principles will continue to be established by individual state laws and permitted practices. The Company’s adoption of Codification increased statutory capital and surplus as of January 1, 2001 by approximately $6.1 million.
position SiriusPoint to capitalize on market opportunities with a proven management team to focus on underwriting profitability. SiriusPoint will reposition its investment portfolio to better align with its underwriting strategy, while leveraging its strategic partnership with Third Point LLC. We believe that this repositioning will result in lower volatility, while taking advantage of opportunities to improve risk-adjusted returns across asset classes.
Collateral assets are generally required to be held in cash or cash equivalents, U.S. Treasuries or non-U.S. sovereign debt equivalent and other investment grade assets as determined by the respective reinsurance trusts or as per collateral required under secured letter of credit facilities.
In the final weeks of the first quarter and carrying into the second quarter, markets responded positively and retraced some of the spread widening during the first quarter, underscoring the importance of timing this allocation to credit. We sold out of many of our positions in investment grade bonds initially purchased in the first quarter that recovered strongly in the second quarter of 2020.
Net Investment Income. Net investment income increased to $45.8 million in 2015 compared to $41.1 million in 2014, due to an increase in yields from new investments primarily in municipal and corporate issues and as we experienced higher average invested assets as a result of investment of new premium revenue. Our yield on average invested assets increased 16 basis points from 2014 to 2015 and we increased the holdings in higher quality rated securities.
Policy surrenders increased 30.3% in 2015 from 2014 and 10.6% from 2013 to 2014, or 0.7% and 0.5% of direct ordinary whole life insurance inforce for 2015 and 2014, respectively. The increase in surrender expense is primarily related to our international business and is expected to increase over time due to the aging of this block of business. A significant portion of surrenders relates to policies that have been in force over fifteen years and no longer have a surrender charge associated with them. Total direct insurance inforce reported in 2015 was $5.0 billion compared to $4.9 billion in 2014 and $4.7 billion 2013.
Endowment benefits decreased slightly in 2015 compared to 2014 amounts. We have a series of international policies that carry an immediate endowment benefit of an amount selected by the policy owner. These benefits have been popular in the Pacific Rim and Latin America, where the Company has experienced increased interest in our guaranteed products in recent years. Like policy dividends, annual guaranteed endowments are factored into the premium and, as such, the increase has no impact on expected profitability. The Company expects these benefits to continue to increase as this block of business increases and persists.
The Company also holds 24.7% of its municipal holdings in Texas issuers.
There were no other states or individual issuer holdings that represented or exceeded 10% of the total municipal portfolio as of December 31, 2015.
Both in Personal Accident as well as in Third Party Li ability Insurance our results reflect the effects of the growing motor traffic where the upward trend in rates does not keep pace Avith the increasing hazards. Unfortunately in most Continental countries the heavy losses of the last feAv years have not sufficed to induce the direct writing companies to undertake a thorough overhauling of their business. The craA'ing for volume on the part of many companies has not yet been appeased and they must bear the burden of
Premium Reserve from 1927 Reserve for unsettled Claims from 1927 Reserve for extraordinary Losses Premiums, less cancellations
On July 11, 2000, the Company submitted an Offer in Compromise (the “Offer”) and, on March 13, 2002, submitted an amended Offer in Compromise (“Amended Offer”) to the IRS to resolve the controversy with respect to the refunds at a substantially reduced amount than the IRS has asserted as indicated above. To assist the IRS in evaluating the Amended Offer, the Company is providing additional documents to the IRS and is continuing its discussions with the IRS. The Amended Offer must be reviewed and approved by the IRS. Pending the resolution of the Amended Offer, the IRS generally suspends any collection activities. There can be no assurance that the IRS will accept the Amended Offer.
As discussed in Note 2, effective June 1, 2001, the Company adopted Statement of Financial Accounting Standards No. 142 and changed its method of accounting for goodwill.
The following table summarizes changes in the Company’s allowance for doubtful accounts for the years ended May 31, 2002, 2001 and 2000:
A summary of options outstanding and exercisable as of May 31, 2002 follows:
Other income increased $1.7 million. Madison Life had an increase of $1.4 million due to fee income earned by the managing general underwriter; such fee income was offset by expenses described below in general and administrative expenses. Other income at Standard Life increased $.3 million due to an increase in fees earned from higher gross stop loss premiums.
Insurance benefits, claims and reserves increased $10.1 million reflecting an increase of $8.5 million at Madison Life and an increase of $1.6 million at Standard Life. Madison Life's increase resulted from: a $6.8 million increase in ordinary life and individual accident and health reserves and claims due to acquisitions of new blocks of business ($6.4 million) and other existing ordinary life and individual accident and health business ($.4 million); a $.7 million increase in group term life claims due to the increase in retention and the increase in premiums written; an increase of $3.2 million in interest credited to universal life and annuity policies due to the acquisitions effective June 30, 1999; and an increase of $2.1 million in LTD claims due to the increase in retention and the increase in premiums written; such increases were partially offset by: a $.5 million decrease in surrenders on ordinary life policies; a $3.3 million decrease in the credit line of business due to the runoff of acquisitions and a reduction in the overall credit life loss ratio; and a $.5 million decrease in dental claims due to the runoff of this line. The change at Standard Life is comprised of: a $.4 million increase in provider excess reserves due to increased volume; increases of $1.4 million and $.6 million in group annuity and group life reserves, respectively, due to the acquisition of the volunteer firefighters block of business effective April 1, 1999; and a $1.6 million increase in reserves in HMO reinsurance due to the increase in retention in this line; such increases were offset by: a $1.0 million decrease in reserves on the accident and health reinsurance facility due to the runoff of this line; and a $1.4 million decrease in DBL claims and reserves due to decreased volume. Although loss ratios have significantly worsened in 1999 in the stop-loss line of business, benefits, claims and reserves on this line have remained constant due to Standard Life's decrease in retention resulting in a reduction in net stop-loss premiums as mentioned above.
Net Investment Income and Realized Gains and (Losses). We invest our statutory surplus funds and the funds supporting our insurance liabilities primarily in cash and cash equivalents, fixed maturity and equity securities. Our net investment income includes interest and dividends earned on our invested assets. We report net realized gains and losses on our investments separately from our net investment income. Net realized gains occur when we sell our investment securities for more than their costs or amortized costs, as applicable. Net realized losses occur when we sell our investment securities for less than their costs or amortized costs, as applicable, or we write down the investment securities as a result of other-than-temporary impairment. We classify equity securities and our fixed maturity securities primarily as available-for-sale. We report net unrealized gains (losses) on those securities classified as available-for-sale separately within accumulated other comprehensive income on our balance sheet. Additionally, we have a small portfolio of equity securities classified as trading securities. We report unrealized gains (losses) on those securities classified as trading securities within net realized gains (losses) on investment on the consolidated statement of income.
Foreign Currency Gain (Loss). The foreign currency transaction gain was $43.3 million and $60.2 million during the years ended December 31, 2015 and 2014, respectively. The gains resulted from fluctuations in exchange rates related to internal reinsurance transactions between our European insurance companies and our Bermuda reinsurance company.
Gross Written Premium. Gross written premium increased $214.8 million, or 19.4%, to $1,320.0 million for the year ended December 31, 2015 from $1,105.2 million for the year ended December 31, 2014. The increase in gross written premium resulted from expansion of existing programs, including workers' compensation, commercial automobile and general liability programs.
Our principal sources of operating funds are premiums, service and fee income, investment income and proceeds from sales and maturities of investments. Our primary uses of operating funds include payments of claims and operating expenses. Currently, we pay claims using cash flow from operations and invest our excess cash primarily in fixed maturity and equity securities. We expect that projected cash flow from operations will provide us sufficient liquidity to fund our anticipated growth, by providing
The following discussion highlights material factors affecting Trenwick America Corporation's results of operations for the years ended December 31, 2001 and 2000. This discussion and analysis should be read in conjunction with the consolidated financial statements and notes thereto of Trenwick America Corporation for the years ended December 31, 2001, 2000 and 1999, contained in this Annual Report on Form 10-K. Trenwick America Corporation meets the conditions set forth in General Instruction I (1)(a) and (b) of Form 10-K and is therefore omitting certain information otherwise required by Item 7.
Foreign currency risk is the risk that Trenwick America Corporation will incur economic losses due to adverse changes in foreign currency exchange rates. This risk arises from Trenwick America Corporation's debt obligations and securities denominated in foreign currencies. Trenwick America Corporation's debt obligations denominated in foreign currencies were $13.0 million and $13.4 million at year end 2001 and 2000, respectively.
The Company's operating activities during 1996 generated positive cash flow. No additional capital was raised from the sale of the Company's Common Stock or borrowings from private lenders or banks.
Share-Based Payments. We have established a stock incentive plan for directors, employees and consultants. U.S. GAAP requires us to recognize share-based compensation transactions using the fair value at the grant date of the award. We calculate the compensation for restricted stock awards and restricted stock units based on the price of the Company’s common shares at the grant date and recognize the expense over the vesting period. Share purchase options are expensed over the vesting period on a graded vesting basis. Determining the fair value of share option awards at the grant date requires significant estimation and judgment. We use an option-pricing model (Black-Scholes pricing model) to assist in the calculation of fair value. Effective from August 2014, the estimate of expected volatility was based on the daily historical trading data of our Class A ordinary shares from the date that these shares commenced trading (May 24, 2007) to the grant date.
For the year ended December 31, 2013, the ceded premiums increased by $27.1 million primarily as a result of negative ceded premiums reported in 2012 due to retrocessional premiums returned upon the termination of certain contracts in 2012.
For the years ended December 31, 2014 and 2013, the acquisition cost ratios for severity business were 19.7% and 20.8%, respectively. The acquisition cost ratio reported for the year ended 2013 was higher due to the impact of reinstatement premiums reversed during 2013 relating to super-storm Sandy with no corresponding reversal of commissions. Excluding the impact of this reversal, the 2013 acquisition cost ratio was 18.0%. The acquisition cost ratio on the new severity contracts written during 2014 was higher due to a change in mix of business. During the year ended 2014, we wrote several new severity quota share contracts which had higher ceding commissions than the catastrophe excess of loss contracts written during 2013.
Overall our restricted cash decreased by $37.2 million, or 2.8%, from $1,334.1 million to $1,296.9 million, primarily as a result of needing less collateral to support the securities sold, not yet purchased and as a result of a decrease of $67.3 million in restricted cash relating to our letters of credit outstanding. This decrease was partially offset by an increase of $51.1 million in cash collateral held by derivative counterparties.
At December 31, 2014, reinsurance balances receivable were $151.2 million compared to $167.3 million as of December 31, 2013, a decrease of $16.2 million, or 9.7%. The decrease in the reinsurance balances receivable was primarily attributable to the decrease in premiums written during the year ended December 31, 2014.
For most of the contracts written as of December 31, 2014, our risk exposure is limited by defined limits of liability. Once the loss limit for a contract has been reached, we have no further exposure to additional losses from that contract. However, certain contracts, particularly quota share contracts that relate to first dollar exposure, may not contain aggregate limits.
Net losses and LAE incurred decreased 2.0% to $1,682.4 million for the year ended December 31, 1998, from $1,716.3 million in 1997. The Company attributes this decrease primarily to the reduction in net premiums earned, partially offset by an increase in catastrophe losses in 1998. The Company incurred $65.5 million of catastrophe losses during the year ended December 31, 1998. There were no significant catastrophe losses in the 1997 period.
The Company's net premiums earned increased 38.4% to $2,486.1 million for the year ended December 31, 1997, from $1,796.7 million in 1996. On a pro forma basis, 1996 net premiums earned were $2,494.1 million, resulting in a decrease of 0.3%. The pro forma decrease in premiums earned was
The Company recognized an after-tax increase to income of $6.8 million representing the minority interest in the net loss of MARC for the six months ended June 30, 1997, prior to the Merger.
The Company is a holding company, the principal subsidiary of which is American Re-Insurance. Based on statutory net premiums written of $2,276.2 million in 1998, American Re-Insurance ranked as the third largest property and casualty reinsurer in the U.S., according to Reinsurance Association of America statistics. The Company had total assets of $13,544.0 million and stockholders' equity of $2,853.1 million at December 31, 1998.
Total cash proceeds in 1998 from sales of investments were $6,164.8 million compared to $4,268.5 million in 1997 and $1,203.5 million in 1996. Much of the increased activity in 1998 was due to the Company's investment strategy to continue to restructure the overall investment portfolio into tax-exempt securities and increase common equity holdings. Much of the increased activity in 1997 was due to the Merger, as the investment portfolio was significantly larger than prior years, in addition to a portfolio restructure, based on new investment managers' decisions and a redeployment into tax-exempt securities. Cash and cash equivalents were $274.9 million, $641.6 million, and $553.1 million, at December 31, 1998, 1997, and 1996,
LIMITATIONS OF SENSITIVITY ANALYSIS. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions, including relative levels of market interest rates and loan prepayments, and should not be relied on as indicative of future results.
o A medical claims management contract for ongoing claims was executed on October 31, 2000 with a hospital located in South Texas. This contract is fully implemented and began generating revenue in February 2001.
OFFICE, VEHICLE AND EQUIPMENT RENTAL expense decreased $45,000 or 32% primarily due to the August 2, 1999 office space reduction option exercised by the Company whereby 3,300 square feet of office space was vacated on September 2, 1999 resulting in a monthly expense reduction of approximately $3,500. In November of 2000, the Company negotiated the early termination of its lease agreement for 6,836 square feet of office space in Dallas, and moved it corporate offices to a 937 square foot space in Garland, Texas, resulting in a monthly expense reduction of approximately $6,800. The company has two leased automobiles, which will reach the end of their lease terms in March and April of 2001, at which time management intends to exercise the Company's purchase options for the vehicles. Based on these changes, management expects lease and rental expense to be less than 1% of revenues in 2001.
SELLING, GENERAL AND ADMINISTRATIVE ("SG&A") expense decreased $201,000 or 25% primarily due to expense reductions in conjunction with the aforementioned revenue reductions.
Net Income before extra- ordinary item and cumulative effect of change in accounting principle $ 10,714 $ 9,917 $ 12,200 $ 13,901 $ 12,763
ILCO is a holding company whose principal assets consist of the common stock of Investors Life Insurance Company of North America and its subsidiaries - Investors Life Insurance Company of Indiana (formerly known as Meridian Life Insurance Company) and InterContinental Life Insurance Company ("ILIC"). ILCO's primary source of funds consists of payments under two Surplus Debentures from Investors-NA.
(A) Net income for 1998 was reduced by $1.1 million, which represents the cumulative effect (net of tax) of an accounting change for guaranty fund assessments due to the adoption of the American Institute of Certified Public Accountants' Statement of Position 97-3. The cumulative effect reduced net income per share of common stock (basic and diluted) by $0.04 per share.
ProAssurance did not repurchase any shares of our common stock during the year ended December 31, 2002. Our board has authorized stock repurchases of up to approximately one million shares.
- the financial condition and near-term prospects of the security's issuer, taking into consideration the economic prospects of the issuers' industry and geographical region, to the extent that information is publicly available
As discussed in our critical accounting policies, our reserve for losses and loss adjustment expenses represents our estimate of the future amounts necessary to pay claims and expenses associated with investigation and settlement of claims. The resulting net losses and loss adjustment expenses (hereafter referred to as "net losses") may be summarized into three components of these estimates: (i) actuarial evaluation of incurred loss levels for the current accident year; (ii) actuarial re-evaluation of incurred loss levels for prior accident years and (iii) actuarial re-evaluation of the reserve for the death, disability and retirement provision.
Reinsurance premiums ceded are estimated based on the terms of the respective reinsurance agreements. We continually review the estimated expense and any adjustments that we believe necessary are included in current operations. Several factors contributed to the increase in reinsurance premiums ceded for 2001 as compared to 2000. The increase in premiums earned as a result of the consolidation accounted for approximately 30% of the increase. During the fourth quarter of 2000, we increased the amount of reinsurance coverage in certain markets which resulted in more of our premiums earned being ceded to reinsurers in 2001. Also, in 2001 more premiums were earned in markets where we rely more heavily on reinsurance.
Net premiums earned for the years ended December 31, 2001, and 2000 include Other Coverages of approximately $38.8 million and $34.8 million, respectively. We have historically written accident and health, workers compensation and multi-line premiums from time to time as favorable opportunities arose to utilize capital. During 2000 we decided to decrease our commitment to these programs. However, we continued to write and earn premiums for Other Coverages during 2001 and 2000 to honor existing contractual relationships. Our premiums during 2001 reflect both volume increases and higher rates charged on Other Coverages.
Net losses and LAE incurred related to our personal lines segment were $48.3 million for the six months ended December 31, 2001. The incurred loss and LAE ratio was 69.6% during the six months ended December 31, 2001.
Our net investment income is comprised of the earnings on our personal lines segment investment portfolio and totaled $5.1 million for the six months ended December 31, 2001.