felanders/preprocessed huggingface dataset:
more distinctly ttie result of economic and social development. Ttie reasons are complex but include a generally much acuter claims consciousness on the part of the general public coupled with the attempt to hold others liable for any kind of injury suffered. They furthermore reflect the ideas propounded under the headings of consumerism and environmental protection. An additional factor is that, in the growth years, not enough attention was paid everywhere to safety considerations when, for example, new products, production methods and services were being developed, and that the bodies in the econom­ ic and administrative sectors responsible for ques­ tions of safety were at times not able to cope with the hectic activity and the rapid technical progress. The often quoted catchphrase of "undigested pro­ gress" refers not least to safety in its broadest sense. The growth of the loss burden evidenced mainly in
In Aviation reinsurance, which closed with a small profit, the trend continued for premium rates to fall throughout the world and Is likely only to have been halted by the Tenerife catastrophe. In recent years fleets of major airlines have been rated too much according to their own loss experience. The premium
Thanks to a noticeable decline in the loss burden from non-European business, particularly from our subsidiary reassurance companies, the profit rose from Sw. frs. 22.6 miiiion to Sw. frs. 25.4 miiiion.
Distribution of Investments in Percent at Market Values (Previous year In parentheses)
After distribution of tfie profit in accordance witfi tfie proposal on page 18, tfie capital and free reserves, including tfie balance brougfit forward, would be raised from Sw. frs. 341 million to Sw. frs. 371 million.
Reinsurances ceded b 1976/77 Net for own account a—b 1975/76 Net for own account
Unearned premiums for own account All classes excl. Life Life business (policy and annuity valuations)
The outgo of the Profit and Loss Account comprises mainly the interest on the current-account credit granted by the parent company (Sw. frs. 9.9 miilion), taxes (Sw. frs. 2.5 miliion) and depreciation and fluc­ tuations in stock exchange and foreign currency rates on the holding portfolio (Sw. frs. 1.1 miilion). Com­ pared with the years 1973 to 1975, foreign currency write-offs on the holding portfolio have declined considerably; they are now largely due only to the devaluation of the Australian dollar and the continued weakening of the British and South African currencies against the Swiss franc.
Ail classes excl. Life (incl. valuation of Sickness insurance) Life business (Policy and annuity valuations)
The item "Non-consolidated holdings" refers to holdings of less than 50 % in insurance and reinsurance companies and to the holding in the «SWITZERLAND» General.
Reinsurance and Insurance Branches The reinsurance and insurance companies of the Swiss Re Group mainiy deal with the following classes of business: Fire
Additionally, for asset-backed securities, cash flow trends and underlying levels of collateral are monitored. A security is impaired if there is objective evidence that a loss event has occurred after the initial recognition of the asset that has a negative impact on the estimated future cash flows. A specific security is considered to be impaired when it is determined that it is probable that not all amounts due (both principal and interest) will be collected as scheduled. The Company has evaluated the near-term prospects of the issuers in relation to the severity and duration of the unrealized loss, and unless otherwise noted, does not consider these investments to be impaired as of December 31, 2008. No one issuer represents more than 8% of the total unrealized loss position. The largest single issuer unrealized loss is $1.1 million which relates to an investment grade corporate bond. The following is the Company’s significant unrealized loss positions by industry sector as of December 31, 2008.
There are two individual issuers rated below investment grade in the basic industries and capital goods sub-sector which have unrealized loss positions greater than $0.2 million. Evraz Group SA and Severstal Group Holdings are Russian steel companies. MLLICNY’s exposure to Evraz Group SA in an unrealized loss position has an amortized cost of $0.5 million as of December 31, 2008. MLLICNY’s exposure to Severstal Group Holdings in an unrealized loss position has an amortized cost of $0.5 million as of December 31, 2008. These securities are rated BB- and BB, respectively, and have unrealized losses of $0.2 million and $0.2 million, respectively. The unrealized losses represent fire sale prices on assets sold in Russia where some funds appear to be liquidating positions to raise cash.
The Company impaired its holding in Harrah’s Entertainment Inc. (“Harrah’s”) in 2008 for $0.3 million. No unrealized loss existed for Harrah’s as of December 31, 2008.
Revenue for the year ended December 31, 1996 increased approximately $178.8 million or 18.7 percent over the year ended December 31, 1995. A 19 percent increase in net average HMO and indemnity enrollment resulted
Deferred tax assets are recognized for deductible temporary differences that, in management's opinion, are more likely than not to be realized in the current or future periods. The Company's history of operating revenue and income growth, and expectation of future operating income, provides strong positive evidence that these deferred tax assets will be realized. A valuation allowance has been recorded for net operating loss carry forwards generated by certain subsidiaries that are not deductible on a consolidated tax return. Management intends to continue to monitor the realizability of deferred tax assets in light of future circumstances and assess the reasonableness of the valuation allowance.
The Company has access to total line-of-credit and letter-of-credit facilities of $24 million, which are subject to annual renewal.
The Company is principally engaged in the business of providing life insurance and related financial services products. The Company provides and distributes individual life insurance and annuities; employee benefit products and services and retirement plans. The Company operates primarily in the United States and is authorized to conduct business in all 50 states and the District of Columbia.
The Company engages in securities lending whereby certain securities from its portfolio are loaned to other institutions for short periods of time. Initial collateral, primarily cash, is required at a rate of 102% of the market value of the loaned domestic securities. The collateral is deposited by the borrower with a lending agent, and retained and invested by the lending agent according to the Company's guidelines to generate additional income.
other than credit-related reasons. Business and operating fundamentals are performing as expected. The remaining losses of $3.1 million as of December 31, 2003 included the following items:
At December 31, 2003 and 2002, fixed maturities with carrying values of $6.1 million and $5.7 million, respectively, were on deposit as required by regulatory authorities.
The repurchase obligation totaled $101.3 and $73.1 million at December 31, 2003 and 2002, respectively. The primary risk associated with short-term collateralized borrowings is that the counterparty will be unable to perform under the terms of the contract. The Company's exposure is limited to the excess of the net replacement cost of the securities over the value of the short-term investments, an amount that was not material at December 31, 2003 or 2002. The Company believes the counterparties to the dollar roll and reverse repurchase agreements are financially responsible and that the counterparty risk is immaterial.
Changes in accumulated other comprehensive income related to changes in unrealized gains (losses) on securities, including securities pledged to creditors were as follows:
Net income for the years ended December 31, 2019 and 2018 was positively impacted by a decrease in the statutory federal income tax rate effective January 1, 2018 resulting from the Tax Cuts and Jobs Act of 2017 ("Tax Reform") (see Income tax expense). In addition, net income for the year ended December 31, 2018 benefited from a discrete tax item for a worthless stock deduction related to a wholly-owned subsidiary which reduced income tax expense by approximately $7.4 million.
Interest sensitive and index product benefits decreased 20% to $1.3 billion in 2019 and decreased 20% to $1.6 billion in 2018 from $2.0 billion in 2017. The components of interest sensitive and index product benefits are summarized as follows:
We have determined that the unrealized losses of the securities on the watch list are temporary as we do not intend to sell these securities and it is more likely than not we will not have to sell these securities before recovery of their amortized cost. Our analysis of these securities and their credit performance at December 31, 2019 is as follows:
None of our derivatives qualify for hedge accounting, thus, any change in the fair value of the derivatives is recognized immediately in the consolidated statements of operations. A presentation of our derivative instruments along with a discussion of the business strategy involved with our derivatives is included in Note 5 to our audited consolidated financial statements in this Form 10-K, which is incorporated by reference in this Item 7.
Inflation does not have a significant effect on our consolidated balance sheet. We have minimal investments in property, equipment or inventories. To the extent that interest rates may change to reflect inflation or inflation expectations, there would be an effect on our balance sheet and operations. It is not possible to calculate the effect such changes in interest rates, if any, have had on our operating results.
Our lapse rate assumptions are based on actual experience and our outlook as to future expectations for lapse rates. If lapse rates were to increase 10%, our liability for lifetime income benefit riders would decrease by $31.9 million. A decrease in lapse rates of 10% would increase our liability for lifetime income benefit riders by $31.9 million.
The net investment earned rate is a key component in the calculation of expected assessments in the projection period. The net investment earned rate is based on current yields being earned in our invested assets portfolio, future spot rates, the expected mean reversion period and expected spread we will earn above the risk-free rate. If the net investment earned rate were to increase 10 basis points, our liability for lifetime income benefit riders would decrease by $18.7 million. A decrease in the net investment earned rate of 10 basis points would increase our liability for lifetime income benefit riders by $19.3 million.
Gross premiums written for 2001 were $145.5 million compared to $130.2 million for 2000, an increase of $15.3 million or 11.8%. Details of gross premiums written are provided below.
2001 Year 2000 Year Change --------- --------- ------ (in thousands) Average invested assets $ 491,861 $ 508,081 $(16,220) Average annualized yields 7.5% 7.0% 0.5% Investment income - portfolio 37,016 35,691 1,325 Investment income - non-portfolio 2,548 2,667 (119) Investment expenses (636) (914) 278 --------- --------- -------- Net investment income $ 38,928 $ 37,444 $ 1,484 ========= ========= ========
Premiums ceded (31,631) (28,191) (3,440) Change in premiums ceded (402) 9,726 (10,128) --------- --------- -------- Amortized ceded premiums (32,033) (18,465) (13,568) --------- --------- -------- Net premiums earned $ 108,096 $ 126,615 $(18,519) ========= ========= ========
At December 31, 2001, reserves for unpaid claims and claims expenses were $280.5 million compared to $174.8 million at December 31, 2000. Included in the reserve for unpaid claims and claims expenses at December 31, 2001, was an amount of $42.1 million compared to $37.2 million at December 31, 2000 in respect of the business underwritten by LaSalle Re Capital. At December 31, 2001, reinsurance recoverable balances were $57.2 million compared to $6.4 million as at December 31, 2000. The increase in unpaid claims and claims expenses and reinsurance recoverable balances of $105.7 million and $50.8 million, respectively was due to the impact on net losses incurred following the September 11th terrorist attacks.
Operations expenses are comprised of both variable and semi-variable expenses, including wages, commissions, benefits and expenses associated with processing insurance applications and maintaining our database and web sites. The historical lag between the time an application is submitted to the insurance companies and when we recognize revenues significantly impacts our operating results as most of our variable expenses are incurred prior to application submission.
Operations. Operations expenses decreased 15% to $6.2 million in 2006 from $7.3 million in 2005, primarily as a result of closing the Colorado call center, as mentioned above. We had fewer agents and less overhead as a result of having only one location after January 31, 2006.
Summary information for securities with unrealized gains or losses at December 31, 2005 follows:
Our insurance subsidiaries generate liquidity primarily by collecting and investing premiums in advance of paying claims. For 2005, 2004 and 2003, we generated consolidated cash flow from operations of approximately $76.5 million, $56.9 million and $45.4 million, respectively.
provide management with a consulting opinion regarding the advisability of modifying its reserve setting assumptions for future periods. The Great American actuaries do not develop ranges of losses.
Claims, and Litigation Services, Inc., and Explorer RV Insurance Agency, Inc. Significant intercompany transactions have been eliminated.
The Company applies the intrinsic value method in accordance with Accounting Principles Board Opinion (“APB”) No. 25, Accounting for Stock Issued to Employees, and its related interpretations for its accounting of stock compensation plans for employees. In accordance with the intrinsic value method prescribed by APB No. 25, compensation cost is measured as the excess, if any, of the fair value of the equity instrument awarded at the measurement date over the amount an employee must pay to acquire the equity instrument. Since options are granted at exercise prices equal to the fair value of the shares at the date of grant, no compensation expense is currently recognized.
Gains and losses on the sale of these investments were as follows:
The term note is governed by a four-year, unsecured term loan agreement, which was executed in August 2002. The note was originally issued for $5,000 and bears interest at the bank’s prime rate (7.25% at December 31, 2005 and 5.25% at December 31, 2004) less 50 basis points. The note is due in monthly principal installments of $104
pursuant to the terms of a written grant agreement and must be exercised no later than the tenth anniversary of the date of grant. As set forth in the LTIP, the Company may accelerate vesting and exercisability of options. The Compensation Committee of the Board of Directors must approve all grants.
The Company calculates its allowance for doubtful accounts based on an estimation process. The Company uses a mathematical calculation coupled with the specific identification of certain accounts to estimate its allowance for doubtful accounts. Estimates of the likelihood of collection are made based on a multi-year historical average of the actual collections experience at each station. The Company charges accounts receivables off against its allowance for doubtful accounts when it deems them to be uncollectible on a specific identification basis.
The Liberty Corporation and Subsidiaries, (“Liberty” or “the Company”), through its operating subsidiary, Cosmos Broadcasting (“Cosmos”), owns fifteen network-affiliated television stations (“the stations”), principally located in the Southeast and Midwest. In addition, Cosmos owns Cable Vantage, a cable advertising sales subsidiary; Take Ten productions, a video production facility; and Broadcast Merchandising Corporation, a professional broadcast equipment dealership.
Quarterly results of operations for each of the years ended December 31, 2002 and 2001 are as follows:
Receivables, income taxes receivable, and accounts payable: The carrying amounts reported in the balance sheet for these instruments approximate their fair value due to the short maturity of these items.
Program contract obligations: Fair values on program contract obligations are estimated to approximate their carrying value as a result of their short term nature.
The Company also has committed to make certain investments in its venture capital funds when called by the fund’s manager and to provide additional financing related to certain of its private debt holdings. The Company anticipates additional funding related to its venture capital portfolio of $1,200,000 over the next one to three years, and funding of its private debt and equity holdings of approximately $4,000,000 during 2003.
To gather and control financial data, the Company maintains accounting systems supported by internal controls that provide reasonable assurance over the preparation of reliable financial statements. Management believes that a high level of internal control is maintained by the selection and training of qualified personnel and by the establishment and communication of accounting and business policies.
The Group also leases office space located in Mineola, New York and Boston, Massachusetts under lease expiring in 2007 and 2003, respectively. The rental charged to the Company for these facilities is prorated in accordance with the pooling agreement described in "Pooling Agreement" under Item 1, herein.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS - ------ ----------------------------------------------------------------------- OF OPERATIONS -------------
YEARS ENDED DECEMBER 31, ------------------------ 2001 2000 1999 ---- ---- ---- GAAP 261.7% 193.1% 139.9% SAP 304.4% 192.3% 145.2%
The Company's net premiums earned were increasing at a moderate rate. A soft market in the workers' compensation and personal auto lines presented challenges to the Company and the insurance industry as a whole. The Company believed that continued refinement in pricing, classification and exposure assessment would be the key to profitable results in these lines of business. Investment income rose 15.4% in 1994, over 1993, which was attributable to a larger fixed maturity portfolio. The Company's realized gains decreased by $1,064,000. Fixed maturity calls were prevalent in 1993, when interest rates were declining. Increasing interest rates in 1994 reduced the number of calls and resulting investment gains.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS, PRINCIPLES OF CONSOLIDATION AND BASIS OF REPORTING
The Company and its property and casualty subsidiaries market most forms of commercial and personal property and casualty insurance products, including fidelity and surety bonds and reinsurance. The business is generated through approximately 1,700 independent agencies and brokers in 34 states, with 64% of the Company's direct premiums originating in seven Midwestern states in 1995.
The accompanying consolidated financial statements include United Fire & Casualty Company and its wholly owned subsidiaries, United Life Insurance Company, Lafayette Insurance Company, Insurance Brokers & Managers, Inc., Addison Farmers' Insurance Company, Addison Insurance Agency and Crabtree Premium Finance Company. All material intercompany items have been eliminated in consolidation.
The property and casualty insurance companies also assume portions of their insurance business from other insurance companies. Assumed premiums earned for the years ended December 31, 1995, 1994 and 1993 were $33,014,000, $31,152,000 and $30,741,000, respectively.
Depreciation expense and property and equipment acquisitions for the years ended December 31, 1995, 1994 and 1993, are reflected in the property and casualty insurance segment.
Revenue is earned and recognized as follows: administrative fees are agreed upon with the sponsor on either a per claim charge or a per plan participant per month charge. Per claim fees are billed to sponsors for the claims adjudicated during the period. Per plan participant per month fees are generally billed to sponsors at the beginning of the month. The amount of revenue related to the drugs dispensed by pharmacies participating in Health Card's pharmacy network is recognized at the time of dispensing the drug as the cost is incurred. The amount of revenue recognized is reduced by the amount of rebates that Health Card shares with its sponsors.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations" beginning on page 18 of the 1999 Annual Report, included as part of Exhibit 13 to this Form 10-K and incorporated herein by reference.
- ----------------------------------------------------------------------------- THE YEAR ENDED DECEMBER 31, 1997 COMPARED TO THE YEAR ENDED DECEMBER 31, 1996 - -----------------------------------------------------------------------------
Deferred tax assets are recognized for deductible temporary differences that, in management's opinion, are more likely than not to be realized in the current or future periods. The Company's history of operating revenue and income growth, and expectation of future operating income, provides strong positive evidence that these deferred tax assets will be realized. A valuation allowance has been recorded for net operating loss carryforwards generated by certain subsidiaries that are not deductible on the Company's consolidated tax return. Management intends to continue to monitor the realizability of deferred tax assets in light of future circumstances and assess the reasonableness of the valuation allowance.
In 1997, the Company adopted Statement of Financial Accounting Standards No. 128, "Earnings Per Share", resulting in the restatement of earnings per share for all prior periods. Basic earnings per common share are based upon the weighted average shares outstanding. Outstanding stock options are treated as common stock equivalents for purposes of computing diluted earnings per share. Shares held in the Company's Stock Compensation Trust (see Note 11) are excluded from the calculation of basic and diluted earnings per share.
For the years ended December 31, 1998 and 1997, marketable equity available-for-sale securities with a fair value at the date of sale of $92,570,000 and $62,804,000, respectively, were sold. The gross realized gains on such sales totaled $5,793,000 and $11,027,000, and the gross realized losses totaled $3,001,000 and $2,935,000 for each of the
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax liabilities and assets are as follows as of December 31:
The sources of revenue included in the All Other category are composed primarily of Medicaid and miscellaneous. All revenue is generated within the United States.
We have audited the accompanying consolidated balance sheets of Mid Atlantic Medical Services, Inc. and subsidiaries as of December 31, 1998 and 1997, and the related consolidated statements of operations, changes in stockholders' equity and cash flows for each of the three years in the period ended December 31, 1998. Our audits also included the financial statement schedule listed in the Index at Item 14(a). These financial statements and schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.
Management fees increased 25% to $77.1 million for 2002, compared to $61.8 million in 2001. The underwriting agencies acquired in 2002 and late 2001 accounted for much of the increase together with organic growth, partially offset by a decrease in management fees from our other underwriting agencies as we continued the consolidation of certain other underwriting agency operations into our insurance companies. Net earnings of our underwriting agencies increased to $25.3 million for 2002 from $17.2 million in 2001 as a result of increased revenue and the adoption of SFAS No. 142, somewhat offset by the integration of certain underwriting agencies into our insurance companies. There was $5.9 million (net of income tax) of goodwill amortization recorded in 2001. We expect further improvement in 2003 due to our acquisitions in late 2002 and organic growth.
See preceding paragraphs and Notes (6) and (10) in Notes to the Consolidated Financial Statements for additional information concerning these obligations. The convertible notes have various put dates as discussed above.
We have a reserve of $7.1 million as of December 31, 2002 for potential collectibility issues and associated expenses related to reinsurance recoverables. The adverse economic environment in the worldwide insurance industry, the decline in the market value of investments in equity securities and the terrorist attack on September 11, 2001 have placed great pressure on reinsurers and the results of their operations. Ultimately, these conditions could affect reinsurers' solvency. Historically, there have been insolvencies following a period of competitive pricing in the industry. While we believe that the reserve is adequate based on currently available information, conditions may change or additional information might be obtained which may result in a future change in the reserve. We periodically review our financial exposure to the reinsurance market and the level of our reserve and continue to take actions in an attempt to mitigate our exposure to possible loss.
The following information presented for CNA Surety is for the years ended December 31, 2001, 2000, 1999 and 1998 and the period from September 30, 1997 (date of inception) through December 31, 1997 and as of December 31, 2001, 2000, 1999, 1998 and 1997. Selected financial data of the Predecessor is presented on the following page.
responsibility or adequate funds for these payments. These payments are currently being made by our senior lending facility.
Consolidated Statements of Cash Flows for the Years Ended March 31, 2015 and 2014
The face value of the underlying life insurance policies of $349,196,882, of which one policy matured on March 11, 2014, totaling $8,000,000, with a remaining $341,196,882, represents the total insurance settlement on the life insurance policies as of March 31, 2015, including the estimated future increase for certain policies that have return of premium provisions. Effectively, as of March 31, 2015, the policy holders had paid $71,855,560 on policy premiums and other expenses on the insurance contracts. The policy holders are independent of the Company, and as separate entities there is a risk that such entities might not continue to pay the policy premiums and other expenses as has been done historically. The Company monitors the policy holders’ ability to maintain the underlying policies, and in the event the policy holders are unable to make the required payments, the Company would evaluate whether to directly maintain the underlying policies through the policy holders or allow them to elapse. The policy holders
currently have senior loan agreements and MRI reinsurance to cover these payments. As of March 31, 2015, none of the underlying policies have elapsed and the required payments remain current.
In the likely event Del Mar is unable to provide the Qualified NIBs by the extended due date of August 31, 2015, the Company will have the option of selling collateral up to a liquidated damages settlement payment equal to 100% of any cash payments made under the Del Mar ATA. If the full balance of Qualified NIBs is provided by Del Mar, the Company will have paid $20,000,000 of consideration, $8,000,000 of which would be in cash and the remaining $12,000,000 in promissory notes. Promissory notes may be issued, pro rata, as Qualified NIBs are received. The promissory notes have a two year term from the effective date and bear an interest rate of 4.0% per annum. Total interest and principal amounts are due upon maturity.
On October 29, 2013, the Company and Europa, with the agreement of Del Mar, amended the Europa Agreement and the Del Mar ATA to acknowledge that the total up-front cash payment due from the Company under the Del Mar ATA and Europa Agreement shall not exceed $12,000,000; that the Company would receive a credit on
On April 5, 2013, the Company issued 1,700,000 stock options to certain officers, employees and members of the Board of Directors of the Company and in conjunction with its planned adoption of a stock option or similar plan to be adopted in the near future for the benefit of employees, officers and directors, not, however, to have any effect on the grant date, the exercise price or vesting that have been approved. The stock options have an exercise price of $0.77 per share. All options have a contractual term of five years.
unearned premium reserve is established to reflect the unexpired portion of each policy at the financial reporting date. See Note 1 to the Company's consolidated financial statements, included herein.
Engineering and Construction Premium. In 1999, NUAL began writing engineering and construction business for Syndicate 1221. The business consists of coverage for construction projects including machinery, equipment and loss of use due to delays. The increase in 2001 was due to new business written.
Other Income/(Expense). Other income/(expense) for 2001 consists primarily of a $3,800,000 charge related to the Company's former investment in Riverside Corporate Underwriters, Ltd. ("RCUL"), a Lloyd's corporate name. Lloyd's informed the Company in 2001 that it is liable for part of the adverse development in the Lloyd's syndicates in which RCUL provided capacity in 1999 and 1998. The Company had provided a letter of credit to RCUL in order for RCUL to participate on various Lloyd's syndicates. The Company believes that it has no further exposure to RCUL.
The Company had annual rental commitments of $10.1 million at December 31, 2001 under various noncancellable operating leases for the Company's office facilities, which expire at various dates through 2010. The commitments by year are $1.6 million for 2002, $1.5 million for 2003, $1.4 million for 2004, $1.4 million for 2005 and $4.2 million for 2006 and subsequent.
The Company's primary sources of revenue are dividends from subsidiaries. The dividends are the result of premium earned and investment income generated from the insurance operations of FPIC, and fee and commission income from McCreary and the Agency. FPIC specializes in liability insurance products and services for the healthcare community, with MPL insurance for physicians and dentists as its primary product. FPIC's MPL insurance is written on a "claims-made" basis (as opposed to an "occurrence" basis) providing protection to the insured only for those claims that arise out of incidents occurring, and of which notice to the insurer is given, while coverage is in effect. The advantage of a claims-made policy is that it allows the insurer to accrue reserves in the year that the claim is reported. Consequently, the insurer is able to measure frequency of claims, and therefore estimate reserves, with greater accuracy.
Net premiums written, as adjusted, increased 4% in 1998 compared with 1997. Similarly, net premiums written, as adjusted, increased 9% in 1997 compared with 1996.
Executive protection results were highly profitable in each of the past three years due to favorable loss experience, particularly in the directors and officers and fiduciary components. Our financial institutions business was also profitable during the same period due to the favorable loss experience in the fidelity component of this business. Such profitability was somewhat lower in 1997 due to several large losses in the non-fidelity portion of this business.
In October 1996, we announced that we were exploring the possible sale of all or a significant portion of our real estate assets. In March 1997, our real estate subsidiary entered into an agreement with a prospective purchaser to perform due diligence in anticipation of executing a contract for the sale of substantially all of its commercial properties. Because the plan to pursue the sale of these assets in the near term represented a significant change in circumstances relating to the manner in which these assets would be used, we reassessed the recoverability of their carrying value as of December 31,
Statement of Financial Accounting Standards (SFAS) No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of, requires that we analyze our individual buildings, leased land and development sites on a continuing basis to determine if an impairment loss has occurred. Estimates are made of the revenues and operating costs, plus any additional costs to be incurred to complete development, of the property in the future through an assumed holding period based on our intended use of the property. The time value of money is not considered in assessing whether an impairment has occurred. If it is determined that impairment has occurred, measurement of such impairment is based on the fair value of the assets. The $255 million writedown of real estate assets in 1996 was made in accordance with the provisions of SFAS No. 121.
In 1995, we initiated a project to ensure Year 2000 readiness of the Corporation's systems and applications. We put in place a team responsible for bringing our systems and equipment into Year 2000 compliance.
The Corporation filed a shelf registration statement which the Securities and Exchange Commission declared effective in September 1998, under which up to $600 million of various types of securities may be issued by the Corporation or Chubb Capital. No securities have been issued under this registration statement.
current period losses from freestanding derivatives due to the impact of long-term interest rates decreasing in the current period and unfavorable changes in foreign currency swaps due to the U.S. dollar weakening.
higher other expenses due to an increase in the allocation of corporate expenses; and
At December 31, 2019, $1 million of the total $8 million of gross unrealized losses were from one fixed maturity security with an unrealized loss position of 20% or more of amortized cost for six months or greater.
The Company has a high-quality, well performing mortgage loan portfolio, with all mortgage loans classified as performing at both December 31, 2019 and 2018. The Company defines delinquency consistent with industry practice, when mortgage loans are past due as follows: commercial mortgage loans - 60 days and agricultural mortgage loans - 90 days. The Company had no commercial or agricultural mortgage loans past due or in nonaccrual status at either December 31, 2019 or 2018. During the years ended December 31, 2019 and 2018, the Company had no mortgage loans modified in a troubled debt restructuring.
Various litigation, claims and assessments against the Company, in addition to those discussed previously and those otherwise provided for in the Company’s financial statements, have arisen in the course of the Company’s business, including, but not limited to, in connection with its activities as an insurer, investor and taxpayer. Further, state insurance regulatory authorities and other federal and state authorities regularly make inquiries and conduct investigations concerning the Company’s compliance with applicable insurance and other laws and regulations.
The selected consolidated financial data presented below should be read in conjunction with, and is qualified in its entirety by reference to, Management’s Discussion and Analysis and our Consolidated Financial Statements and the Notes thereto appearing elsewhere in this Report.
Revenue includes TennCare® PBM revenue of $67,814, $140,190, $141,903 and $130,388 for the years ended 2003, 2002, 2001 and 2000. Revenue also includes Synagis® revenue of $13,740 million, $14,644, $3,685 and $631 for the years ended December 31, 2003, 2002, 2001, and 2000, respectively. Both of these revenue sources ended in 2003.
We generate revenue principally through the sale of prescription drugs, which are dispensed either through a pharmacy participating in our pharmacy network or a pharmacy owned by us. Revenue is derived under two types of agreements: (i) fee-for-service agreements and (ii) capitated agreements. We do not anticipate entering into any material capitated PBM services arrangements in the future. The rebate share paid to certain of our Plan Sponsors is recorded as a reduction of revenue.
Gross profit for the year ended December 31, 2004 was $68.2 million representing a gross profit percentage of 10.8% compared to $68.5 million, or 11.6%, for the prior year. The reduction in the gross profit percentage reflects pricing pressures experienced in the Specialty Distribution market. We were adversely affected by pricing pressure particularly in IVIG purchases.
The following table provides details for the segment for the years ended December 31, 2004, 2003 and 2002:
We have audited the accompanying consolidated balance sheets of MIM Corporation and subsidiaries as of December 31, 2004 and 2003, and the related consolidated statements of operations, stockholders’ equity, and cash flows for the years then ended. Our audits also included the financial statement schedule listed in the Index at Item 15(a). These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.
Revenue generated under PBM agreements is classified as either gross or net by the Company based on whether it is acting as a principal or an agent in the fulfillment of prescriptions through its retail pharmacy network. When the Company independently has a contractual obligation to pay a network pharmacy provider for benefits provided to its plan sponsors’ members, and has other indicia of risk and reward, the Company includes payments (which includes the drug ingredient cost) from these plan sponsors as revenue and payments to the network pharmacy providers as cost of revenue, as these transactions require the Company to assume credit risk and act as a principal. If the Company merely acts as an agent, and consequently administers plan sponsors’ network pharmacy contracts, the Company does not assume credit risk and records only the administrative fees (and not the drug ingredient cost) as revenue.
The increase in Total insurance costs of 15% from 1995 to 1996 and the decrease of 29% from 1994 to 1995 were the direct result of the 17% increase and 29% decrease in Premiums earned during those periods. Losses incurred have increased 33% in 1996 over 1995 and decreased 37% in 1995 over 1994 as a direct result of the increased use of large deductible policies in 1995 and the subsequent decreased use in 1996 as discussed in relation to Premiums earned. The Company discounts its specific and aggregate workers' compensation reserves using a 4% rate recommended under Pennsylvania law where Legion Insurance is domiciled. The net effect of this discounting was to increase Net income after tax for the years ended December 31, 1996, 1995 and 1994 by $.2 million, $.3 million and $1.4 million respectively. Discounting also reduced net loss reserves by $3.5 million, $3.3 million and $2.9 million at December 31, 1996, 1995 and 1994. The 3% decrease in Acquisition costs from 1995 to 1996 and the 18% decrease from 1994 to 1995 compared to the change in Premiums earned in the same periods is attributable to: (a) the fact that Acquisition costs in both 1995 and 1996 include significant expenses associated with the involuntary workers' compensation business the Company is required to assume. Such expenses have no net financial impact on the Company as they are recharged to clients. These expenses decreased in 1995 and 1996; and (b) Acquisition costs on large deductible policies are higher in relation to the associated premium than under a traditional guaranteed cost policy. The volume of deductible programs written by the Company increased in 1995 but decreased in 1996.
The Company's consolidated financial statements for the years ended December 31, 1996 and 1995 are filed herewith in response to Item 14.
The liabilities for non-traditional long-duration products include fixed account values on variable and fixed annuities and UL and VUL policies, liabilities for guaranteed benefits associated with variable annuities and embedded derivatives for variable annuities, EIA and IUL products.
At December 31, 2016 and 2015, approximately 40% and 47%, respectively, of the securities rated AAA were GNMA, FNMA and FHLMC mortgage backed securities. No holdings of any other issuer were greater than 10% of total equity.
(2) Includes a $27 million benefit for the release of the deferred reinsurance liability in connection with the loss recognition on LTC business. The benefit was reported in other insurance and operating expenses on the Consolidated Statements of Income.
Amounts are comprised of certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient and have not been classified in the fair value hierarchy. See Note 3 for further information.
The following discussion should be read in conjunction with the consolidated financial statements and the related notes thereto appearing elsewhere in this Annual Report. The consolidated financial statements for 2001 include the accounts and operations of The MIIX Group and its wholly-owned subsidiaries, including, since August 4, 1999, New Jersey State Medical Underwriters, Inc. and its wholly-owned subsidiaries ("the Underwriter"). The consolidated financial statements prior to August 4, 1999include the accounts and operations of the former parent company Medical Inter-Insurance Exchange (the "Exchange") and its wholly-owned subsidiaries.
aggregate excess reinsurance contracts also contains a provision requiring that the funds withheld be placed in trust should the A.M. Best rating assigned to MIIX Insurance Company or its predecessor, Medical Inter-Insurance Exchange of New Jersey, fall below B+. On February 21, 2002, A.M. Best lowered the rating of MIIX Insurance Company to B-. On March 22, 2002, A.M. Best again lowered the rating of MIIX Insurance Company, to C+. The Company is working with its reinsurers to establish the required trust accounts and move invested assets into trust in accordance with contract provisions. Each of the aggregate excess reinsurance contracts also contains a provision allowing reinsurers to offer additional reinsurance coverage that MIIX Insurance Company or its predecessor, Medical Inter-Insurance Exchange of New Jersey is obligated to accept. For contract years beginning November 1, 1999 and forward, the contracts require that the funds withheld balance on a particular contract year be below $500,000 before reinsurers may offer the additional coverage. For contract years prior to November 1, 1999, the contracts provide no funds withheld threshold amount, although the reinsurance intermediary has confirmed in writing that the intention of the parties was that the additional coverage would be offered only if and when the funds withheld balance was in a loss position. No funds withheld balances are below $500,000 or in a loss position.
disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for available-for-sale fixed maturity securities as well as an aging analysis for securities that are past due
As of December 31, 2020, and December 31, 2019, the outstanding balances of the New IRA notes was $16.1 million and $24.9 million, respectively. The sinking fund associated with these notes had balances of $0.3 million and $0.1 million at December 31, 2020 and 2019, respectively.
NAICO periodically reviews the reserve estimates relating to insurance business written or assumed by NAICO and the methods used to arrive at such reserve estimates. NAICO also retains independent professional actuaries who review such reserve estimates and methods. Methods used include the paid loss development method, incurred loss development method, Bornhuetter-Ferguson method and loss ratio method. Most methods assume that past patterns in the historical data will be repeated in the future, as long as there are no significant changes in pertinent variables. The methods chosen are those that are believed to produce the most reliable indication at that particular evaluation date. While each of the methods produce point estimates for each period analyzed, management's best estimate is usually comprised of a combination of methods due to differences in conditions during each period. The selected estimate may be one method, or a weighted average of several methods, or a judgmental selection if management determines it is appropriate. The ultimate point estimate selected by management represents the amount that management believes is the most likely amount that will ultimately be paid to settle the net reserves recorded at a particular point in time.
Management believes that its unpaid losses and related reinsurance recoverables are fairly stated as of December 31, 2006. However, estimating the ultimate claims liability is necessarily a complex and judgmental process inasmuch as the amounts are based on management's informed estimates, assumptions and judgments using data currently available.
Net realized investment gains were $652,000, $383,000 and $745,000 in 2004, 2005 and 2006, respectively.
The Company had net income after taxes of $5,947,481 for the fiscal year ended March 31, 1996, compared to $3,792,179 for the fiscal year ended March 31, 1995, and net income of $3,521,787 for fiscal year ended March 31, 1994. Total revenue for the year ended March 31, 1996, was $42,468,474 compared to $39,444,223 and $32,979,913 for the years ended March 31, 1995, and 1994 respectively.
Additional information regarding investments and investment income are described in the "Management Discussion and Analysis of Financial Condition and Results of Operation - Liquidity and Capital Resources."
As discussed in Note 1 to the consolidated financial statements, the Company adopted the provisions of the Financial Accounting Standards Board's ("FASB") Statement No. 115 ("Accounting for Certain Investments in Debt and Equity Securities") in the fiscal year ended March 31, 1994.
Crusader Insurance Company statutory net income is as follows: Fiscal year ended March 31, 1996 $4,639,537 Fiscal year ended March 31, 1995 $2,661,428 Fiscal year ended March 31, 1994 $1,287,470
Crusader is restricted in the amount of dividends it may pay to its parent Unico without prior approval of the California Insurance Department. Presently, without prior approval, Crusader may pay a dividend to Unico equal to the greater of (1) 10% of Crusader's statutory policyholders' surplus or (2) Crusader's statutory net income for the preceding calendar year. The maximum dividend which may be made without prior approval in calendar year 1996 is $4,113,181.
In April 1993 the Company adopted FASB Statement No. 109. The cumulative effect of this change in accounting for income taxes was immaterial; therefore, there is no cumulative effect reported in the consolidated statement of operations for the fiscal year ended March 31, 1994. Prior years' financial statements have not been restated to apply the provisions of FASB Statement No. 109.