felanders/preprocessed huggingface dataset:
Loss and LAE increased 40.8% from $416.0 million in 1995 to $585.7 million in 1996. The loss ratio, defined as loss and LAE as a percentage of premiums earned, increased from 73.4% in 1995 to 80.0% in 1996. Inadequate pricing, and changes in product design and underwriting criteria, undertaken during 1996 contributed to the increase in loss and LAE and resulted in the Company attracting some new insureds with higher loss characteristics than previously experienced. The Company's loss and LAE were adversely affected by an increase in the frequency and severity of claims. In particular, during the first and third quarters, respectively, the Company was impacted by severe winter weather and Hurricanes Fran and Bertha, which accounted for an increase in loss and LAE of approximately $12.0 million. The increase in loss and LAE also included a $12.5 million increase in the Company's loss and LAE reserves in the fourth quarter of 1996 due to actual loss and LAE being in excess of original expectations, primarily for the 1996 accident year, with $1.9 million being attributable to prior accident years.
The changes in net unrealized appreciation (depreciation) of fixed maturities for the years ended December 31, 1996, 1995 and 1994 were $(13,866), $25,262 and $(22,421), respectively.
The Credit Facility contains certain covenants including a limitation on net premiums written to statutory surplus of 3.25x and a maximum amount of debt to total capitalization of 55%. As of December 31, 1996, these ratios were 3.248x and 47.5%, respectively.
Effective December 31, 1993, the Company also entered into a one-year lease agreement with ILIC, whereby ILIC agreed to lease certain furniture and equipment for an amount equal to the sum of the depreciation charge of such furniture and equipment plus interest on the remaining net book value of such property. Absent termination, the agreement automatically renews annually by either party. The agreement was terminated.
Effective August 31, 1994, one of the Company's non-insurance subsidiaries purchased certain computer and telecommunications equipment from ILIC for its net book value of approximately $3.2 million. Certain of the equipment purchased was being used by the Company and leased from ILIC prior to the date of purchase.
(6) Based on 50.6 million weighted average shares outstanding for 1996, 50.2 million weighted average shares outstanding for 1995, and 50.0 million shares outstanding for 1994, 1993 and 1992.
(10) Statutory net premiums written as a percentage of period-end surplus.
YEAR ENDED DECEMBER 31, 1995 COMPARED TO YEAR ENDED DECEMBER 31, 1994 The following discussion and analysis is focused on a comparison of 1995 results of operations, as adjusted to exclude the IPO-related charges, to 1994 results of operations.
The Company's combined ratio, as adjusted, decreased to 107.7% in 1995 from 115.7% in 1994, largely attributable to lower catastrophe losses and lower ceded premiums.
On March 21, 1996 the Holdings' Board of Directors approved a stock repurchase plan authorizing the repurchase of an aggregate amount of 2.5 million shares of common stock from time to time in open market transactions. To date, no shares have been repurchased pursuant to this plan.
GOVERNMENT PREMIUMS. Government premiums increased five percent or $289 million for the year ended December 31, 1999 compared to premiums in the prior year as follows:
OTHER INCOME. Other income increased for the year ended December 31, 1999 compared to the prior year. The increase was primarily due to increased mail-service revenues from our pharmacy benefit management company, where we, rather than network retail pharmacies, collect the member copayments.
Excluding 1998 net provider reserves, the increase in the 1999 consolidated medical care ratio compared to 1998 was primarily due to higher contracted physician costs, increased pharmacy utilization, pharmacy benefit enhancements and higher prescription drug costs for our Secure Horizons members. See "1998 Compared with 1997 -- Consolidated Medical Care Ratio and Provider Reserves" for further discussion of provider reserves.
COMMERCIAL MEDICAL CARE RATIO. The commercial medical care ratio includes the specialty HMOs and indemnity insurance results. The commercial medical care ratio for the year ended December 31, 1999 decreased compared to the prior year due to the following:
INTEREST EXPENSE. Interest expense decreased approximately 29 percent for the year ended December 31, 1999 compared to the prior year due to the reduction in outstanding borrowings until December 1999, when we borrowed $400 million to fund our share repurchase program, and lower overall average interest rates paid on our credit facility.
MATERIAL COMMITMENTS. See Note 6 of the Notes to Consolidated Financial Statements for a discussion of our agreement to purchase shares of our common stock held by UniHealth Foundation.
- - Indemnity product line increases of $2 million due to increased membership and premium rates.
Since the end of 1998, our hospital providers have increasingly not wanted to renew capitated hospital contracts and have requested fee-for-service and shared-risk arrangements. As a result of this trend, the percentage of consolidated members under capitated arrangements for hospital contracts has decreased from
- - Our need for additional advertising, marketing, administrative or management information systems expenditures;
STOCK MARKET RISK FACTORS. The market prices of the securities of PacifiCare and certain of the publicly held companies in the industry in which we operate have shown volatility and sensitivity in response to many factors, including:
Inherent in the estimates of ultimate claims are expected trends in claim severity, frequency and other factors that may vary as claims are settled. The amount of uncertainty in the estimates for casualty coverage is significantly affected by such factors as the amount of claims experience relative to the development period, knowledge of the actual facts and circumstances and the amount of insurance risk retained. In the case of UPCIC, this uncertainty is
Downes and Associates, a multi-line insurance adjustment corporation based in Deerfield Beach, Florida performs certain claims adjusting work for UPCIC. Downes and Associates is owned by Dennis Downes, who is the father of Sean P. Downes, Chief Operating Officer and Senior Vice President of UPCIC. During 2008, 2007 and 2006, the Company expensed claims adjusting fees of $410,000, $675,237 and $829,208, respectively, to Downes and Associates.
Net income increased 214.2% to $54,002,288 for the year ended December 31, 2007 from $17,186,860 for the year ended December 31, 2006. The Company’s earnings per diluted share were $1.31 for the 2007 period versus $0.44 for the 2006 period.
Recognition of Commission Revenue. Commission revenue, which is comprised of the MGA’s policy fee income on all new and renewal insurance policies and commissions generated from agency operations is recognized as income upon policy inception. The Company believes that its revenue recognition policies conform to Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements.
$81,400,000 in excess of $18,600,000 each loss occurrence subject to an otherwise recoverable amount of $162,800,000
$11,250,000 in excess of $13,750,000 each loss occurrence subject to an otherwise recoverable amount of $11,250,000 (placed 17.5%)
As of December 31, 2008, the Company held US Treasury bonds at a book value of $4,334,405 which represents amortized cost. The Company holds all fixed maturities at amortized cost. The US Treasury bonds have gross unrealized gains of $125,760 and no gross unrealized losses. It is the Company’s intent to hold the bonds to maturity, which will occur at various dates in a one to five year period. As of December 31, 2007, the Company held no bonds.
the Company were in payment for the exercise price of certain options and the satisfaction of statutory tax liability associated with such exercise.
Financial assets and financial liabilities recorded on the Consolidated Balance Sheets at fair value as of December 31, 2008 are categorized in the fair value hierarchy based on the observability of inputs to the valuation techniques as follows:
The increase in commissions before consolidation eliminations for NFL resulted from increases of $1.3 million for products sold by Senior Benefits, $383,000, or 18.4%, for products sold by LifeStyles Marketing, and $587,000, or 39.9%, for policies reinsured from FLICA. These increase were offset, in part, by decreases of $959,000, or 32.8%, for Acquired Policies and $261,000, or 7.2%, for Company-issued Cancer and Specified Disease products. The increase in commissions before consolidation eliminations for NFIC and AICT is principally the result of two items. $449,000 of the increase resulted from recording NFIC and AICT commissions for a full year in 1995, as opposed to about nine months in 1994. $398,000 of the increase resulted from new product sales generated by Cornerstone and Farm & Ranch. These items were not present or were insignificant in the corresponding period in 1994.
Fee and Service Income. Fee and service income increased $5,000, or less than 1.0%, to remain at $1.4 million.
Other Income. Other income decreased $143,000, or 91.1%, from $157,000 to $14,000. This decrease, which represents a return to historical nominal levels, reflects the one-time gain of $133,000 recorded on the sale of a portion of the Company's life insurance business in 1992.
The Company had no significant high-yield, unrated or less than investment grade fixed maturity securities in its investment portfolio as of December 31, 1995 and it is the Company's policy not to exceed more than 5% of total investments in such assets. Changes in interest rates may affect the market value of the Company's investment portfolio. Absent redemptions of such investments prior to maturity, or loss experience materially in excess of, or at times materially sooner than expected, such changes should not impact the Company's ability to meet its future policyholder benefit obligations.
Included in fixed maturities at December 31, 1995, are two high-yield, unrated or less than investment grade corporate debt securities. The Company's investment in the two securities comprises 0.7% of total cash and invested assets at December 31, 1995. The Company owned one high-yield, unrated or less than investment grade corporate debt security at December 31, 1994. The Company's investment in this security comprised 0.1% of total cash and invested assets at December 31, 1994.
In the normal course of their business operations, the Insurance Subsidiaries, continue to be involved in various claims, lawsuits (alleging actual as well as substantial exemplary damages) and regulatory matters. In the opinion of management, the disposition of these or any other legal matters will not have a material adverse effect on the Company's consolidated financial position.
Losses and Loss Adjustment Expenses. Losses and loss adjustment expenses incurred for the year ended December 31, 2012 decreased by $44,423, or 9.5%, to $422,217 from $466,640 for the comparable 2011 period. Our GAAP loss ratio for the year ended December 31, 2012 decreased to 65.7% from 78.0% for the comparable 2011 period. Included in pre-tax results for the year ended December 31, 2012 is approximately $10,332 attributable to catastrophic weather event losses sustained throughout the year compared to $61,384 for the comparable 2011 period. Our GAAP loss ratio excluding loss adjustment expenses for the year ended December 31, 2012 decreased to 56.8% from 68.6% for the comparable 2011 period. Total prior year favorable development included in the pre-tax results for the year ended December 31, 2012 was $17,310, compared to $36,683, for the comparable 2011 period.
Direct Written Premiums. Direct written premiums for the year ended December 31, 2011 increased by $44,305, or 7.3%, to $649,262 from $604,957 for the comparable 2010 period. The 2011 increase occurred primarily in our personal automobile and homeowners lines, which experienced increases of 3.5% and 3.9%, respectively, in average written premium per exposure and increases of 1.5% and 11.5%, respectively, in written exposures. The increase in homeowners exposures is primarily the result of our pricing strategy of offering account discounts to policyholders who insure both an automobile and home with us. In addition, our commercial automobile line experienced an increase in average written premium per exposure of 2.2% and an increase in written exposures of 6.4%. This increase in exposures is a result of additional business submitted by ERPs through the CAR LSC program as the number of Limited Servicing Carriers was reduced from six to four effective July 1, 2011.
During the years ended December 31, 2011 and 2010, there was no significant deterioration in the credit quality of any of our holdings and no OTTI charges were recorded related to our portfolio of investment securities.
For further information, see "Results of Operations: Net Realized Gains (Losses) on Investments."
Cash and cash equivalents includes money market accounts and United States ("U.S.") Treasury bills with original maturities of three months or less. U.S. Treasury bills are stated at amortized cost, which approximates fair value.
Compensation Consulting Group-- New York, New York........................................$79,271 19,000 May 2010 Marlboro, Massachusetts....................................24,615 15,284 July 2005 Corporate office--North Barrington, Illinois......................9,167 6,875 February 2009
We lease 16,266 square feet of office space controlled by Mr. Wamberg for an annual rental of approximately $260,000, under a lease expiring on February 21, 2009.
Gross profit 47,260 29,950 30,398 39,081 37,322 22,888 16,336 20,263 Ratio 61.2% 68.2% 69.9% 59.2% 65.0% 66.1% 67.0% 65.1% Operating expenses 27,932 24,053 24,617 24,650 21,705 17,875 14,114 15,013 Amortization 2,934 2,887 2,940 2,799 2,540 1,933 1,329 1,335 Operating income(1) 14,324 3,010 2,841 11,632 13,076 3,080 893 3,915
Per diluted common share $0.48 $0.13 $0.07 $0.49 $0.65 $0.11 $0.02 $0.18
Year Ended December 31, ------------------------------------- 2001 2000 1999 Revenue First year $20,065 $16,870 $12,516 Renewal 5,159 5,269 3,932 ------------ ----------- ------------ ------------ ----------- ------------ Total 25,224 22,139 16,448 Commission expense 2,996 2,811 1,893 ------------ ----------- ------------ ------------ ----------- ------------ Gross profit 22,228 19,328 14,555 % of revenue 88.1% 87.3% 88.5% ------------ ----------- ------------ ------------ ----------- ------------ General and 21,180 16,932 12,571 administrative % of revenue 84.0% 76.5% 76.4% Amortization of 2,382 1,795 1,361 intangibles ------------ ----------- ------------ ------------ ----------- ------------ Total 23,562 18,727 13,932 Operating (loss) income ($1,334) $601 $623 ============ =========== ============ ============ =========== ============ % of revenue (5.3%) 2.7% 3.8%
Our cash flow from operations for the twelve months ended December 31, 2001, improved significantly over that of the comparable twelve-month period in 2000. The components were:
Acquisitions accounted for $29.5 million used in investing activities and $5.0 million was used for the purchase of equipment.
Expected Maturity Date 2002 2003 2004 2005 2006 Thereafter Total Fair Value Liabilities Long term debt Fixed rate $1,046 $1,154 $1,274 $1,407 $1,553 $691 $7,125 $7,125 Average interest rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Our Company has increased in both size and complexity resulting from both internal growth as well as acquisitions. Assisting the reader in assessing our financial performance and preparing statements enhance that understanding, has always been one of our goals. In furtherance of this goal, we are including earnings guidance in the form of a projection with this report.
(1) EBITA is not a GAAP measurement of earnings. EBITA is management's proxy for measuring pretax cash flow.
During 1999, we wrote our first variable life insurance contracts and entered into several reinsurance treaties. The first treaty was a coinsurance transaction involving group long term disability claims for which we have established a reserve for policyholder benefits of approximately $104 million. This transaction involves a closed block of existing claims that were in effect as of June 1, 1999. The block consists of approximately 1,500 claimants who are receiving disability income payments. No additional claimants may be added. Further, our liability is limited to income benefit payments only and does not include any health, medical or other types of payments.
At December 31, 1999, total capitalization was $218,661,081. In the third quarter we completed a stock repurchase program. At its conclusion, we had repurchased 2,529,700 shares for $24,999,234.
Some of the statements contained in this report are not historical facts and are forward-looking within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results to differ materially from the forward-looking statements. When used, the words "may," "will," "expect," "anticipate," "continue," "estimate," "project," "plan," "intend" and similar expressions identify forward-looking statements. These forward-looking statements involve risks and uncertainties including, but not limited to, the following: our ability to execute the business plan; changes in the general economic conditions including the performance of the financial markets and interest rates; changes in insurance regulations or taxes; changes in rating agency policy; the loss of key executives; trends in the insurance and reinsurance industries; government regulations; trends that may affect our financial condition or results of operations; and the declaration and payment of dividends. Potential investors are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially from those included within the forward-looking statements as a result of various factors. Factors that could cause or contribute to such differences include, but are not limited to, those described in this "Management's Discussion and Analysis of Financial Condition and Results of Operations" and under the heading "Risk Factors of Investing in our Ordinary Shares" set forth below. We assume no obligation to update any forward-looking statement to reflect actual results or changes in or additions to the factors affecting such forward-looking statements.
. credit risk, relating to the continued ability of a given obligor to make timely payments of principal and interest; and
Our Business Would Be Adversely Affected by the Imposition of or Increases in United States Taxes.
Catalyst Health Solutions, Inc. (formerly HealthExtras, Inc.) is a full-service pharmacy benefit management, or PBM, company. We operate primarily under the brand name Catalyst Rx. Our clients include self-insured employers, including state and local governments; managed care organizations; unions; third-party administrators; referred to as TPAs; hospices; and individuals who contract with us to administer the prescription drug component of their overall health benefit programs.
The following table reflects our current contractual commitments as of December 31, 2008 (in thousands):
This information is included in the Annual Report of the Registrant to its shareholders on pages 16 through 18 for the year ended December 31, 1996 and is incorporated herein by reference (see Exhibit 13 to this filing).
Infinity achieved an underwriting profit again in 2006 with a reported GAAP combined ratio of 90.8%, down from the 92.0% reported for 2005. Underwriting results in 2006 and 2005 benefited from $31.2 million and $17.0 million, respectively, of favorable development on prior accident year loss and LAE reserves. Excluding the favorable development, Infinity’s combined ratio increased slightly from 93.8% in 2005 to 94.1% in 2006. Total catastrophe related losses were $0.8 million and $2.3 million in 2006 and 2005, respectively.
These tables do not present accident or policy year development data. Furthermore, in evaluating the re-estimated liability and cumulative deficiency (redundancy), it should be noted that each percentage includes the effects of changes in amounts for prior periods. Conditions and trends that have affected development of the liability in the past may not necessarily exist in the future. Accordingly, it is not appropriate to extrapolate future redundancies or deficiencies based on these tables (in millions).
The following table summarizes the estimated effects of hypothetical increases and decreases in interest rates resulting from parallel
The Company expects to continue to emphasize managed care procedures to control claim costs. Although the Company cannot accurately determine the amount of any savings which may be realized from such efforts in the future, the Company believes that it will be increasingly difficult to maintain this level of cost savings due to the efficiencies that have already been achieved.
Interest expense decreased $727,000, or 25%, in 1992 as compared to 1991 due to a decrease in the weighted average notes payable outstanding and a decrease in interest rates. However, notes payable increased from December 31, 1991, as Pioneer Life Insurance Company of Illinois entered into a loan agreement in March of 1992.
The amortization schedule is based on the expected persistency of the
In addition, liquidity requirements of the Company are created by dividend requirements of the $2.125 Preferred Stock and debt service requirements. The Company's liquidity requirements are met primarily by dividends declared by its non-insurance subsidiaries. As disclosed in Note 9 of Notes to Consolidated Financial Statements, payment of dividends by the insurance subsidiaries to the Company is subject to certain regulatory restrictions.
Accrual bonds are CMOs structured such that the payments of coupon interest is deferred until principal payments begin on the bonds. On each accrual date, the principal balance is increased by the amount of the interest (based upon the stated coupon rate) that otherwise would have been payable. As such, these securities act much the same as zero coupon bonds until cash payments begin. Cash payments typically do not commence until earlier classes in the CMO structure have been retired, which can be significantly influenced by the prepayment experience of the underlying mortgage loan collateral in the CMO structure. Because of the zero coupon element of these securities and the potential uncertainty as to the timing of cash payments, their fair values and yields are more sensitive to changing interest rates than pass-through securities and coupon bonds.
Other CMOs: U.S. government agency 187,871 190,141 200,860 204,161 Non-government agency 21,154 21,919 40,635 41,772 Total other CMOs 209,025 212,060 241,495 245,933
The Company's business has not been capital intensive. The Company's operational cash requirements have been met principally from operating cash flows and this is expected to continue.
We performed this test as of October 1, 2015, using a variety of methods, including estimates of future discounted cash flows and comparisons of our market value to that of our major competitors. Our cash flow projections rely on assumptions that are subject to uncertainty, including premium growth, loss and LAE ratios, interest rates and capital requirements.
The National Association of Insurance Commissioners’ (NAIC) model law for risk-based capital (RBC) provides formulas to determine the amount of capital that an insurance company needs to ensure that it has an acceptable expectation of not becoming financially impaired. At December 31, 2015, the capital ratios of all our insurance subsidiaries exceeded the RBC requirements.
1993 COMPARED TO 1992 --------------------- The Company's net income applicable to common shares was $5.1 million or $.31 per share for the year ended December 31, 1993 as compared to $4.3 million or $.25 per share for the year ended December 31, 1992. The year ended December 31, 1993 includes a loss of $.3 million or $.02 per share net of applicable income taxes for the cumulative effect of an accounting change for investment securities [see Note 4 of Notes to Consolidated Financial Statements]. The year ended December 31, 1992 includes a benefit of $1.2 million or $.07 per share for the cumulative effect of an accounting change for income taxes [see Note 15 of Notes to Consolidated Financial Statements]. Operating income increased $2.2 million to $7.8 million for the year ended December 31, 1993.
Refinance activity was 13.2% (15.2% in the fourth quarter) of new insurance written in 2000 compared to 25.0% (11.5% in the fourth quarter) in 1999, reflecting the continued rise in interest rates through the first six months of the year. Persistency, or the amount of insurance in force remaining from one-year prior, was 82.6% at December 31, 2000, compared to 77.1% at December 31, 1999.
Net income per share on a diluted basis increased 26.6% to $2.23 for 1999 compared to $1.76 per share for 1998. Included in 1999 earnings per share is $0.06 per share of net realized investment gains compared to $0.04 per share in 1998. Operating earnings per share, which exclude net realized investment gains, were $2.17 for 1999 compared to $1.72 for 1998, an increase of 26.5%.
The Company's business does not routinely require significant capital expenditures other than for enhancements to its computer systems and technological capabilities. Positive cash flows are invested pending future payments of claims and expenses. Cash flow shortfalls, if any, could be funded through sales of short-term investments and other investment portfolio securities.
Invested assets in the Company's general account totaled $18.2 billion at December 31, 1997 and were comprised of $14.2 billion of fixed maturities, $3.8 billion of policy loans, and other investments of $227. Policy loans, which had a weighted-average interest rate of 11.2%, as of December 31, 1997, are secured by the cash value of the underlying life insurance policies. These loans do not mature in a conventional sense, but expire in conjunction with the related policy liabilities.
Derivatives play an important role in facilitating the management of interest rate risk, creating opportunities to efficiently fund obligations, hedge against risks that affect the value of certain liabilities and adjust broad investment risk characteristics as a result of any significant changes in market risks. The Company uses a variety of derivatives, including swaps, caps, floors, forwards and exchange-traded financial futures and options, in order to hedge exposure primarily to interest rate risk on anticipated investment purchases or existing assets and liabilities. The Company does not make a market or trade derivatives for the express purpose of earning trading profits. The Company's derivative program is monitored by an internal compliance unit and is reviewed by senior management and Hartford Life's Finance Committee. The notional amounts of derivative contracts, which represent the basis upon which pay or receive amounts are calculated and are not reflective of credit risk, totaled $6.5 billion at December 31, 1997 ($4.6 billion related to insurance investments and $1.9 related to life insurance liabilities).
Insurance liabilities, other than non-guaranteed separate accounts, which were backed by $39.4 billion in total assets (including investments of $28.7 billion), totaled $24.1 billion (net of ceded reinsurance and policy loans) at December 31, 1997. These insurance liabilities consisted of future policy benefits of $3.3 billion, other policyholder funds of $21 billion, guaranteed separate accounts of $9.9 billion and reinsurance recoverables of $(6.3) billion and policy loans of $(3.8) billion. Matching of the duration of the investments with respective policyholder obligations is an explicit objective of the Company's management strategy. The Company's insurance policy liabilities, along with estimated duration periods based on the Company's internal actuarial assumptions, can be summarized based on investment needs in the five categories described below at December 31, 1997.
This analysis of the results of operations and financial condition of the Company should be read in conjunction with the Selected Financial Data and Financial Statements and Notes to the Financial Statements included in this report.
Universal life provides insurance coverage with flexible premiums, within limits, which allow policyholders to accumulate cash values. The accumulated cash values are credited with tax-deferred interest, as adjusted by the Company on a periodic basis. Deducted from the cash accumulations are administrative charges and mortality costs. Should a policy surrender in its early years, the Company assesses a surrender fee against the cash value accumulations based on a graded formula.
In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity." SFAS No. 150 requires that certain financial instruments, which under previous guidance may have been accounted for as equity, must now be accounted for as liabilities (or an asset in some circumstances). The financial
Income tax (benefit) expense (note 10) (74,488) (12,254) 16,865 ------------ ------------ ------------
SOUTHERN SECURITY LIFE INSURANCE COMPANY Notes to Financial Statements December 31, 2003, 2002 and 2001
Certain amounts presented in the 2002 and 2001 financial statements have been reclassified to conform to the 2003 presentation.
d. Investments in securities are reported as described in Note 1.(d), rather than in accordance with valuations established by the National Association of Insurance Commissioners ("NAIC"). Pursuant to NAIC valuations, bonds eligible for amortization are reported at amortized value; other securities are carried at values prescribed by or deemed acceptable by NAIC.
Proceeds from the sale of equity securities and fixed maturities available for sale and the related realized gains and losses are summarized as follows:
2003 Carrying Amount ---- --------------- Dean Witter Discover $4,023,115 Philip Morris, Inc. 2,021,684
At December 31, 2003 and 2002, future policy benefits, exclusive of universal life and flexible term annuities consist of the following:
A note payable to a related party consists of $1,000,000 due on demand to Security National Life Insurance Company. The note qualifies as shareholders' equity for statutory accounting purposes in accordance with Section 628.401 of the Florida Statutes. At December 31, 2003 and 2002, the note bears interest at 9.0% (payable monthly); principal repayment is contingent upon the Company maintaining statutory surplus in excess of $1,799,000 and obtaining approval in advance by the Florida Department of Insurance. Interest expense relating to the balance of the note payable to the related party during 2003, 2002, and 2001 aggregated $90,000, $90,000, and $97,000, respectively. Also, at December 31, 2003, the Company owed $433,100 as a short-term borrowing from Security National Financial Corporation.
. Expenses related to the proposed merger including primarily legal, accounting, investment banking and printing expenses of $884,000 ($570,000 or $0.09 per share net of tax); and
. Offset by a purchase of 100,000 shares of OptiMark Technologies, Inc.'s common stock for $1,000,000.
Statement of Financial Accounting Standards No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" ("SFAS 121") was adopted by the Company in 1996. The Company periodically reviews its long-lived assets in accordance with SFAS 121 to determine if an impairment has occurred. Based on its review, the Company does not believe that an impairment of its long-lived assets has occurred.
---- Central Fidelity National Bank (Virginia) $ 7,373,399 Independence Savings Bank (New York) $ 1,716,939 First Tennessee Bank (Tennessee) $ 1,346,557 -------------------------------------------------------------
The information contained in Consolidated Financial Statements, Notes to Consolidated Financial Statements, Report of Independent Registered Public Accounting Firm and “Quarterly Data (unaudited),” beginning on page 74 of the Annual Report, is incorporated herein by reference.
Total revenues for the year ended December 31, 2001 were $67,646,824 compared to $66,678,116 in 2000, an increase of 1.5%. In 1999 revenues were $71,877,058. The 2001 increase in revenues compared to 2000 was related to a 14.9% increase in new life sales (measured in paid annualized premiums), a 3.4% increase in renewal premiums and a 5.9% increase in net investment income that offset a 30.1% decrease in accident and health premiums (a decline from $7,235,685 in 2000 to $5,059,843 in 2001). The decrease in 2000 revenues was related to a 33.5% decrease in accident and health premiums (a decline from $10,886,317 in 1999 to $7,235,685 in 2000) as a result of the Company's termination of the book of individual major medical and group dental business as well as decreased renewal life premiums resulting from the lower persistency experienced in 1999.
During the second half of 1998, the Company began to experience a significant increase in the volume of accident and health claims created by high early utilization by holders of USLIC's group dental certificates. As a result of the substantial increase in the volume of claims plus an increase in the accident and health loss ratio, management moved to cancel a large portion of the existing block of USLIC's group dental business and NSLIC's individual major medical
Underwriting, acquisition and insurance expenses increased 4.9% to $10,635,639 in 2001 compared to $10,139,539 in 2000 and $10,328,996 in 1999. During 2000, overhead expenses were incurred to develop the domestic ordinary life sales program which offset reductions achieved following the termination of the accident and health business described above and the consolidation of NSLIC and USLIC. During 2001, the Company incurred overhead expenses related to acquisition activities combined with expenses incurred to continue to develop the domestic ordinary life sales program.
Inherent in the capitalization and amortization of deferred policy acquisition costs are certain management judgments about what acquisition costs are deferred, the ending asset balance and the annual amortization. Use of the factor method, as discussed above, limits the amount of unamortized deferred policy acquisition costs to its estimated realizable value provided actual experience is comparable to that contemplated in the factors and results in amortization amounts such that policies that lapse or surrender during the period are no longer included in the ending deferred policy acquisition cost balance. A recoverability test which considers among other things, actual experience and projected future experience, is performed at least annually. Management believes that the Company's deferred policy acquisition costs and related amortization as of and for the years ended December 31, 2001, 2000 and 1999 limits the amount of deferred costs to its estimated realizable value.
compensation for the costs we incurred in servicing this business on their behalf. Our expense ratios for fiscal 2005 and 2004 exclude expenses and fee income related to incidental MGA operations. For fiscal 2006, our operating expenses are reduced by the transaction service fee we received for servicing the run-off business previously written by the Chicago agencies whose business we acquired.
Net income per share for the year ended June 30, 2006 included gains on sales of foreclosed real estate held for sale of $0.05 on a diluted basis compared with gains of $0.01 for the year ended June 30, 2005.
Investment income increased primarily as a result of the increase in invested assets as a result of our growth. The weighted average investment yield for our fixed maturities portfolio was 3.99% at June 30, 2005 with a duration of 3.5 years. The yield for the comparable Lehman Brothers indices at June 30, 2005 was 3.96%.
We are part of an insurance holding company system with substantially all of our operations conducted by our insurance company subsidiaries. Accordingly, the holding company will only receive cash from operating activities as a result of investment income and the ultimate liquidation of our foreclosed real estate held for sale. Cash could be made available through loans from financial institutions, the sale of common stock, and dividends from our insurance company subsidiaries. In addition, as a result of our tax net operating loss carryforwards, taxable income generated by the insurance company subsidiaries will provide cash to the holding company through an intercompany tax allocation agreement through which the insurance company subsidiaries reimburse the holding company for current tax benefits utilized through recognition of the net operating loss carryforwards.
In our opinion, the 2006 consolidated financial statements referred to above present fairly, in all material respects, the financial position of First Acceptance Corporation and subsidiaries as of June 30, 2006 and the results of its operations and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.
Basic net income (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares, while diluted net income per share is computed by dividing net income available to common shareholders by the weighted average number of such common shares and dilutive share equivalents. Dilutive share equivalents result from the assumed conversion of employee stock options and are calculated using the treasury stock method.
We have audited the accompanying balance sheet of Prevention Insurance.com (the Company) as of April 30, 2012, and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We follow paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of our financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of our financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:
USAC was formed as a Kansas corporation on April 24, 2009 for the purpose of raising capital to form a new Kansas-based life insurance company. We presently conduct our business through our five wholly-owned subsidiaries: USALSC, a life insurance corporation; DCLIC, a life insurance corporation; USALSC-Montana, a life insurance corporation; USAMC, an insurance marketing corporation; and USAIC, an investment management corporation.
Our 2019 revenues grew to $11,966,286, an increase of $506,999 from 2018 revenues of $11,459,287. The Company was required to implement a new accounting standard in 2019 which results in unrealized gains and losses on equity securities being included in total income.
Amortization of deferred acquisition costs: The amortization of deferred acquisition costs was $433,218 in the year ended December 31, 2019, compared to $454,906 in 2018, a decrease of $21,688. The amortization decrease is attributable to the reduction of our deferred acquisition cost asset related to our reinsurance transaction with ALSC.
Available for sale fixed maturity securities: As of December 31, 2019, we had available for sale fixed maturity assets of $33,152,892, an increase of $6,169,088 from the December 31, 2018 balance of $26,983,804. The increase is driven by the purchase of additional assets and by an increase in the market value of these securities. If we hold our fixed maturity securities to maturity, as we intend to do, any changes in market value is temporary.
Policy loans: As of December 31, 2019, our policy loans were $118,930, an increase of $62,391 from the December 31, 2018 balance of $56,539. The increase is a result of normal policy loan activity.
Reinsurance related assets: As of December 31, 2019, our reinsurance related assets were $188,382 compared to $161,846 as of December 31, 2018, an increase of $26,536. This increase is the result of an increase in amounts due from reinsurers.
experienced firming of commercial premium rates. The Company’s revenues have increased due to acquisitions - primarily the addition of Hobbs, Group, LLC (Hobbs) on July 1, 2002 -, firming premium rates and new business programs offset in part by continued culling or selling of low margin or nonstrategic business. Management cannot predict the timing or extent of premium pricing changes due to market conditions or their effects on the Company’s operations in the future.
The Company adopted Financial Accounting Standards Board Statement No. 142 (Statement 142) relating to goodwill and other intangible assets effective January 1, 2002 which, among other things, ended the practice of amortizing goodwill. Net income for the year ended December 31, 2001, would have increased by $0.27 per share, assuming adoption of Statement 142 as of January 1, 2001. Also, effective January 1, 2002, the Company changed to an accrual basis from a cash basis for commissions on premiums billed and collected directly by insurance companies for middle-market property and casualty business. The cumulative effect of the accounting change was a one-time addition to net income of $3.9 million, or $0.12 per share.
Net realized gains (losses) on equity securities were $749,000, $1,158,000, and $(129,000) for 1996, 1995, and 1994, respectively. Included in gross realized losses during 1996, 1995 and 1994 are adjustments to the carrying value of available-for-sale equity securities of $666,871, $561,135 and $838,610, respectively, relating to declines in value which were considered by management to be other than temporary. The equity portfolio had $878,000 of net unrealized gains as of December 31, 1996 compared to net unrealized gains of $1,480,000 and $128,000 at December 31, 1995 and 1994, respectively.
loan, the majority of which was due in 1998. Principal repayments totaling $1,025,000 were also made on outstanding bank debt, including $200,000 of scheduled payments and $825,000 of prepayments.
/s/ Ernst & Young, LLP - ---------------------- Louisville, Kentucky March 21, 1997
REDEEMABLE CONVERTIBLE PREFERRED STOCK; 370 AND 157 SHARES ISSUED AND OUTSTANDING IN 1996 AND 1995, RESPECTIVELY 4,043,907 1,700,907
Participating insurance business at December 31, 1996 and 1995, constituted approximately 1% of ordinary life insurance in force (7% at December 31, 1994) and less than 1% of annualized ordinary life premium inforce (1% at December 31, 1994). Participating dividends are determined at the discretion of the Board of Directors.
The amortized cost and fair value of investments in fixed maturities at December 31, 1996, by contractual maturity are shown below. Expected maturities for investments in fixed maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations, sometimes without prepayment penalties.
Cash paid for interest on debt was $ 835,426, $517,855, and $349,623 during 1996, 1995, and 1994, respectively.
The Company leases various equipment. Presented below is a schedule by year of future minimum rental payments required under those leases:
Short-Term Investments: The carrying amount of short-term investments approximates their fair value. At December 31, 1996 and 1995, the fair value of short-term investments was $893,410 and $821,721, respectively.
Cash and Cash Equivalents: The carrying amount of cash and cash equivalents approximates their fair value. At December 31, 1996 and 1995, the fair value of cash and cash equivalents was $2,805,717 and $9,776,964, respectively.
Transportation lines, which consists of taxi and limousine liability and physical damage programs, grew during 1999 as a result of American Country's geographic expansion into additional states. Total premium revenues generated by transportation lines grew 45.8% to $45.2 million in 1999 as compared to $31.0 million in 1998. In 1999, revenues generated outside of Illinois increased from 8.6% or $2.7 million in 1998 to 25.8% or $11.7 million in 1999. This increase is attributable to growth of new programs established in 1998 in Pennsylvania, Michigan, Minnesota, New Jersey, Wisconsin, and in 1999 in New York and Connecticut.
Policy acquisition costs increased $1.6 million or 17.9% during 1999. However, when expressed as a percentage of premium revenues, policy acquisition costs decreased from 15.7% in 1998 to 14.8% for 1999. This indicates that the increase in policy acquisition costs is attributable to substantial premium growth rather than increased commission rates paid to producers.
At December 31, 2000, the Company's total assets of $189.7 million was comprised of the following: cash and investments, 77.4%; reinsurance recoverables, 12.0%, premiums receivable, 2.8%; deferred expenses (policy acquisition costs and deferred taxes) 4.5%; fixed assets, 0.3%; and other assets, 3.0%.
In February 2001, the $7.0 million revolving credit agreement was reduced to $5 million. The revolving credit agreement has a maturity of 364 days, with a commitment fee of .25% per annum on the unused portion.
Goodwill amounted to $25.7 million and $30.8 million at December 31, 2001 and 2000, respectively, and was being amortized on a straight line basis over 20 years. During 2001 goodwill was decreased $3.5 million based upon the Company's current reduced estimate of the contingent additional purchase price for the Liberty acquisition. The effect of this adjustment had no impact on operations for 2001.
The reconciliation of income tax computed at the U.S. federal statutory rates to total income tax benefit (expense) is as follows:
In March 1996, TIG entered into settlement agreements with the IRS on several outstanding audit assessments, which resulted in a redetermination of certain tax liabilities related to tax years prior to TIG's initial public offering in April 1993. A $20 million deferred tax benefit was recognized in first quarter of 1996 as a result of the redetermination.
The following table summarizes information about stock options outstanding and exercisable at December 31, 1997: