felanders/preprocessed huggingface dataset:
Ernst Jutzl Lavre KIrianoff Werner Künzle Robert Martignier Balthasar Mätzener Roger P. Merkelbach Werner Müller Samuel Patthey Plerre-Claude Perrenoud Heinrich Pfefferle
The business year 1974/75 embraces the reinsurance business for the caiendar year 1974 and the other income and expenditure from 1st duty, 1974 untit 30th June, 1975.
General Third Party Liability reinsurance closed with a high loss, largely originating from the United States. Many large claim settlements burdened this branch which, because of its relatively long run-off period for major claims, is particularly susceptible to inflation.
In the year of report, management expenses rose by Sw. frs. 11.1 million to Sw. frs. 81.7 million; however, it was possible to reduce the rate of in­ crease from 20% in the previous year to 16%.
Mr. Emil Baumgartner, Assistant Manager, whom we also thank for his many years of service, left our Company at the end of 1974 to take up another position.
" Sw. frs. 1 Sw. frs. Dividend Sw. frs. 90.— per share 39,960,000 39,960,000
SwissRe Advisers (Singapore) Private Ltd. Die Building, 5 Shenton Way, Singapore 1
**/ In May of 1990, the Company changed its fiscal year end from January 31 to December 31.
underwriting activity are reflected in the financial statements for all periods
During the fiscal year ended December 31, 1993, the Company had net income of
generated by the addition of 46 new series during the year ended December 31,
prior fiscal years. There were 189 series of Shares outstanding at
December 31, 1993 compared to 143 and 109 series of Shares outstanding at
experienced in 1992 was attributable to a combination of factors including the
We have audited the accompanying balance sheet of Motors Mechanical Reinsurance Company, Limited as of December 31, 1993 and 1992 and the related statements of income and retained earnings and cash flows for each of the three years in the period ended December 31, 1993. 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 audits.
LIABILITIES Unearned premiums 2(b) 40,413,058 28,063,606 Loss reserves 2(d) 1,910,030 1,622,855 Accrued liabilities 107,181 91,322
Reconciliation of net income to net cash provided by operating activities: Net income $ 2,704,707 $ 3,507,214 $ 1,920,385 Change in: Accrued investment income 254,177 (222,446) (277,412) Due from ceding company 24,630 (653,270) (1,529,537) Deferred acquisition costs (3,213,352) (1,662,778) (1,527,217) Unearned premiums 12,349,452 6,381,271 6,491,617 Loss reserves 287,175 226,313 321,419 Accrued liabilities 15,859 22,196 (12,278)
During 1993, 46 additional series of 100 shares of Participating Stock were issued as compared with 34 and 16 series for the years ended December 31, 1992 and 1991, respectively. In the years ended December 31, 1993 and 1992, costs in the amount of $74,461 and $80,298, respectively, were incurred in the sale of Participating Stock and were charged to the account of the Common Stockholder. In 1991, $74,589 of costs incurred in the sale of Participating Stock were paid by MIC.
MBIA Corp. owns the 157,500 square foot office building on approximately 15.5 acres of property in Armonk, New York, in which the Company and MBIA Corp. have their headquarters. The Company is currently in the process of constructing a 105,000 square foot addition to the Armonk property at an estimated cost of $35.0 million. The Company also has rental space in New York, New York, San Francisco, California, Paris, France, Madrid, Spain and Sydney, Australia. The Company believes that these facilities are adequate and suitable for its current needs.
Net gains in 1993 include $69.1 million of net gains realized on $4.82 billion of sales of bonds. These bond sales include approximately $2.95 billion of sales of MBSs made primarily to acquire other MBSs that were then used in Dollar Rolls. In addition, bond sales include $759.6 million of sales of high-yield investments and $338.5 million of sales of securitized residential whole loans made primarily to maximize total return. Bond sales in 1993 also include sales of $68.6 million of certain interest-only strips ("IOs") and $251.0 million of sales of senior secured loans ("Secured Loans") that were made primarily to improve the overall credit quality of the portfolio. Net gains in 1993 also include $21.5 million of net gains realized on the sales of $104.4 million of certain limited partnership interests.
Impairment writedowns in 1992 include $37.9 million of provisions applied to bonds in response to increased defaults and $26.1 million of provisions applied to the Company's investment in the
block of business, policies coming off surrender charge restrictions and increased competition in the marketplace. In addition, fixed annuity surrenders have increased in 1994, due to policies coming off surrender charge restrictions. Management anticipates that withdrawal rates will be reasonably stable for the foreseeable future and the Company's investment portfolio has been structured to provide sufficient liquidity for anticipated withdrawals.
At September 30, 1994, the Bond Portfolio included $988.2 million (fair value, $946.4 million) of bonds not rated investment grade by S&P, Moody's or the NAIC. Based on their September 30, 1994 amortized cost, these bonds accounted for 6.6% of the Company's total assets and 10.3% of invested assets. In addition to its direct investment in non-investment grade bonds, the Company has entered into Total Return Agreements with an aggregate notional principal amount of $158.5 million at September 30, 1994 (see "Asset-Liability Matching").
Additional financial statement schedules are included on pages S-3 through S-8 herein. Reference is made to the Index to Financial Statement Schedules on page S-1 herein.
At December 31, 2001, the Company leased office space in various cities throughout the United States under leases expiring between 2002 and 2006 and which required annual rentals of $3.4 million in 2001.
General and administrative expenses include personnel expenses including share-based compensation charges, rent expense, professional fees, information technology costs and other general operating expenses. We are experiencing increases in general and administrative expenses resulting from additional staff, increased share-based compensation expense, increased rent expense for our offices and increased professional fees. As the Company continues to expand and diversify in 2010, particularly through the ACAC Transaction and other initiatives across both its US and Bermuda platforms, we expect this trend to continue.
• changes in the general economic environment that could cause unanticipated changes in claim frequency or severity;
Net Premiums Written Comparison of Years Ended December 31, 2009 and December 31, 2008 Net premiums written increased by $303.0 million, or 41.7%, for the year ended December 31, 2009 compared to the year ended December 31, 2008. The increase in gross premiums written was primarily the result of the following:
• Professional fees increased by approximately $2.3 million, of which $0.6 million was a one-time expense relating to the GMAC Acquisition.
Comparison of Years Ended December 31, 2009 and 2008 The combined ratio increased to 94.5% for the year ended December 31, 2009 as compared to 92.5% in the same period ended 2008. The increase was primarily due to a higher loss ratio reflecting ongoing changes in the mix of business within the segment, particularly those premiums associated with the UBI unit within AmTrust’s Small Commercial Business segment, which generate higher loss ratios than the underlying core AmTrust Small Commercial Business segment.
General and Administrative Expenses. General and administrative expenses increased by $1.0 million, or 68.3%, for the year ended December 31, 2009 compared to the same period in 2008. The overall expense ratio (including acquisition costs) were 33.4% and 33.5% for the year ended December 31, 2009 and 2008, respectively.
Maiden Holdings’ U.S. domiciled operating subsidiaries, Maiden US and Maiden Specialty, are subject to significant regulatory restrictions limiting their ability to declare and pay dividends by the states of Missouri and North Carolina, respectively, the states in which those subsidiaries are domiciled. In addition, there are restrictions based on risk-based capital tests which is the threshold that constitutes the authorized control level. If Maiden US or Maiden Specialty’s statutory capital and surplus falls below the authorized control level, their respective domiciliary insurance regulators are authorized to take whatever regulatory actions are considered necessary to protect policyholders and creditors. The inability of the subsidiaries of Maiden Holdings to pay
The Company’s 10 largest corporate holdings as of December 31, 2009 as carried at fair value and as a percentage of all fixed income securities are as follows:
In 1999, our cash decreased $21,055, primarily due to $192,990 used to purchase bonds and equity securities, $4,999 used to purchase our common stock, which is held as treasury stock, and $9,194 used to purchase United Insurance Group. Cash was provided primarily from the maturity and sale of $140,892 in bonds and equity securities. These sources of funds were supplemented with $50,533 from operations. The major provider of cash from operations was premium revenue used to fund reserve additions of $104,610.
The majority of our insurance subsidiaries' cash flow results from our existing long-term care policies, which will be ceded to the reinsurer under this agreement. Our subsidiaries' ability to meet additional liquidity needs and fixed expenses in the future is highly dependent upon our ability to issue new policies and to control expense growth.
We are a non-insurer that directly controls 100% of the voting stock of our insurance company subsidiaries. If we are unable to meet our financial obligations, become insolvent or discontinue operations, the financial condition and results of operations of our insurance company subsidiaries could be materially affected.
At December 31, 1999, we had a $3,000 line of credit from a bank, which was unused. The line of credit was not renewed by the bank at December 31, 2000.
The following is a discussion and analysis of the Company’s consolidated results of operations for the three months ended December 31, 2009 and 2008 and for the years ended December 31, 2009, 2008 and 2007 and the Company’s consolidated financial condition, liquidity and capital resources at December 31, 2009 and 2008. The Company was formed on October 19, 2005 and completed the acquisitions of Talbot and IPC on July 2, 2007 and September 4, 2009, respectively. Talbot is included in the Company’s consolidated results only for the six months ended December 31, 2007 and subsequent fiscal year ends. Talbot is not included in consolidated results for the year ended December 31, 2006 and the six months ended June 30, 2007. IPC is included in the Company’s consolidated results only for the four months ended December 31, 2009. IPC is not included in consolidated results for the years ended December 31, 2006, December 31, 2007, December 31, 2008, and the six months ended June 30, 2009. This discussion and analysis pertains to the results of the Company inclusive of Talbot and IPC from the dates of acquisition. This discussion and analysis should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto included elsewhere within this filing.
Management includes an assessment of the creditworthiness of cedants in the review process above, primarily based on market knowledge, reports from rating agencies, the timeliness of cedants’ payments and the status of current balances owing. Based on this assessment, management believes that as at December 31, 2009 no provision for doubtful accounts is necessary for receivables from cedants.
Investment Valuation. Consistent with U.S. GAAP, the Company recognizes fixed maturity and short-term investments at their fair value in the consolidated balance sheets. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also established a three level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level
In 2010, we had $22.7 million of favorable development of our prior years’ net loss reserves, primarily from our: 1) U.K. professional liability business, 2) an assumed quota share contract, 3) aviation and 4) prior years’ hurricanes. We had favorable development of $53.5 million in 2009 and $82.4 million in 2008, primarily from those same lines of businesses, as well as our directors’ and officers’ liability business in 2008. The redundancies in the three-year period primarily related to our 2002 - 2007 underwriting years.
Loss development represents an increase or decrease in estimates of ultimate losses related to business written in prior accident years. Such increases or decreases are recorded as loss and loss adjustment expense in the current reporting year. A redundancy, also referred to as favorable development, means the original ultimate loss estimate was higher than the current estimate. A deficiency, or adverse development, means the current ultimate loss estimate is higher than the original estimate.
Our Professional Liability segment includes our directors’ and officers’ (D&O) liability, large account E&O liability, fiduciary liability, fidelity, bankers’ blanket bonds and, for some D&O policyholders, employment practices liability coverage. This business is written in the United States and internationally through our underwriting agencies. Policies provide both primary and excess coverage, are generally long-tailed and may have potential severity. Claims on the D&O excess layers generally take longer to settle than claims in our other segments, due to complex litigation by third parties against our insureds, which form the basis for claims on our policies.
The International segment pretax earnings decreased 15% in 2010 compared to 2009 due to higher favorable loss development in 2009, partially offset by underwriting profit on our new property treaty business. Segment earnings almost doubled in 2009, primarily due to the effect of catastrophic losses that reduced 2008 earnings by $15.0 million, and lower operating costs in 2009.
This table summarizes our investments by type, substantially all of which are reported at fair value, at December 31, 2010 and December 31, 2009.
Realized net investment gains in the past three years resulted primarily from sales of securities that had been previously impaired due to declines in market values. These gains were partially offset by other-than-temporary impairments that were recorded in 2011, 2010 and 2009 of $631,000, $27,000 and $296,000, respectively, reported as realized losses.
(1) Includes $8.1 million and $13.2 million of U.S. Government agencies and government-sponsored enterprise in 2011 and 2010, respectively.
As of December 31, 2011, the Company held municipal securities that include third party guarantees. Detailed below is a presentation by NRSRO rating of our municipal holdings by funding type.
The tables below represent the Company’s detailed exposure of municipal holdings in Louisiana and Texas, which exceed 10% of the total municipal portfolio as of December 31, 2011.
The effective tax rate of the Company was 26% in 1995, 26% in 1994 and 21% in 1993. The 21% rate in 1993 is primarily due to a tax benefit generated from the exercise of stock options by insiders during the first quarter of 1993. This was a permanent tax difference which was deducted for tax but not for book purposes. For the Company, the fresh start adjustment (tax benefit) was immaterial for all years presented. A reconciliation between income taxes computed at the Federal statutory rates and the
In October 1994, the FASB issued Statement 119, "Disclosure about Derivative Financial Instruments and Fair Value of Financial Instruments." The Statement was effective for years ending after December 15, 1994 and did not have any impact on the financial statements.
At December 31, 2006 and December 31, 2005, we had $993,934 and $995,850, respectively of debt and mandatorily redeemable preferred stock. This has had an impact on our annual interest and dividend costs.
Historically, loss recognition testing has not resulted in an adjustment to DAC or reserves. Such adjustments would occur only if economic or mortality conditions significantly deteriorated.
We develop the best estimate of loss reserves for our Property and Warranty line of business on a product line basis using generally accepted actuarial principles. Our Property and Warranty line of business includes creditor-placed homeowners, manufactured housing homeowners, credit property, credit unemployment and warranty insurance and some longer-tail coverages (e.g., asbestos, environmental, other general liability and personal accident). Our Property and Warranty loss reserves consist of case reserves, IBNR and development on
The response to this Item is incorporated by reference to pages 16 through 32 of our Annual Report to Stockholders for the year ended December 31, 2004, which is included as Exhibit (13) to this Form 10-K Report.
We own our principal business office which has approximately 60,000 square foot of office space together with a warehouse facility with 3,200 square foot located in DeRidder, Louisiana. AIIC and SOCI lease their corporate headquarters which has approximately 3,500 square foot of office space located in Omaha, Nebraska. The Company leases space at other locations for certain of our service and claims representatives, none of which are material.
Loss and Loss Adjustment Expenses Incurred. Loss and LAE incurred totaled $229.0 million for 2013, compared to $219.9 million for 2012, an increase of $9.1 million, or 4.1%. The current accident year losses and LAE incurred were $241.6 million, or 73.2% of net premiums earned, compared to $222.4 million, or 76.5% of net premiums earned for 2012. We recorded favorable prior accident year development of $12.6 million in 2013, compared to $2.5 million in 2012. This is further discussed below in “Prior Year Development.” Our net loss ratio was 69.4% for 2013 and 75.6% for 2012.
As discussed above under “Overview,” we purchase reinsurance to protect us against severe claims and catastrophic events. Based on our estimates of future claims, we believe we are sufficiently capitalized to satisfy the deductibles and retentions in our 2015 reinsurance program. We reevaluate our reinsurance program at least annually, taking into consideration a number of factors, including cost of reinsurance, our liquidity requirements, operating leverage and coverage terms.
Net cash provided by operating activities was $140.4 million in 2014, as compared to $128.9 million in 2013, and $81.0 million in 2012. Major components of cash provided by operating activities in 2014 were net premiums collected of $373.1 million and investment income collected of $42.1 million, offset in-part by claim payments of $183.7 million, $71.7 million of operating expenditures, federal taxes paid of $19.9 million and dividends to policyholders paid of $1.1 million.
The composition of our investment portfolio, including cash and cash equivalents, as of December 31, 2014 is shown in the following table.
At December 31, 2014, the Company held 174 individual fixed maturity securities that were in an unrealized loss position, of which 19 were in a continuous unrealized loss position for longer than 12 months.
Property and casualty insurance companies are subject to certain risk-based capital (“RBC”) requirements specified by the National Association of Insurance Commissioners. Under these requirements, a target minimum amount of capital and surplus maintained by a property/casualty insurance company is determined based on the various risk factors related to it. At December 31, 2014, the capital and surplus of AIIC and its subsidiaries exceeded the minimum RBC requirement.
The calculation of basic and diluted EPS for the years ended December 31, 2014, 2013 and 2012 are presented below.
The Company derives its revenues almost entirely from its operations in the workers’ compensation insurance line of business. Total net premiums earned for the different lines of business are shown below:
Declines in value of securities available-for-sale that are judged to be other-than-temporary are determined based on the specific identification method. The Company reviews its investment securities regularly and determines whether other-than-temporary impairments have occurred. The factors considered by management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include, but are not limited to: the length of time and extent to which the fair value has been less than cost; the Company's intent to sell, or be required to sell, the debt security before the anticipated recovery of its remaining amortized cost basis; the financial condition and near-term prospects of the issuer; adverse changes in ratings announced by one or more rating agencies; subordinated credit support; whether the issuer of a debt security has remained current on principal and interest payments; current expected cash flows; whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions including the effect of
In 2012, insurance, benefits, claims and reserves increased $5.9 million over the comparable period in 2011. The decrease is primarily attributable to: (i) an increase of $14.9 million in the Medical Stop-Loss segment as a result of an increase in premium volume by Risk Solutions, offset by improved loss ratios; and (ii) an increase of $5.7 million in the Fully Insured Health segment, principally due to increases arising from the new pet and international lines of business offset by volume decreases in the short term medical and dental lines of business; partially offset by (iii) a $10.3 million decrease in the Group disability, life, annuities and DBL segment as a result of lower production coupled with lower loss ratios in the LTD line and the transfer of certain annuity contracts in the fourth quarter of 2011; (iv) a $4.4 million decrease in the Individual life, annuity and other segment primarily resulting from the
The Group Disability segment had a favorable development of $4.5 million. This amount consists of favorable developments of $2.7 million and $1.3 million on the 2011 and 2010 reserves, respectively, primarily due to LTD business from those years and, in part, to DBL business from the 2011 year.
During 1999, the Company recognized $31.5 million in charges primarily relating to the Company's assessment of the recoverability of assets associated with its software business. These charges consist of: (i) $11.0 million to increase the allowance for bad debts, (ii) $1.2 million of litigation expenses, (iii) $16.8 million for the impairment of intangible assets, (iv) $1.7 million for severance costs and (v) approximately $800,000 in other charges.
Other operating expenses of approximately $800,000 represent the accrual of future payment obligations under operating leases for fixed assets no longer in use by the Company.
Cost of revenues. Total cost of revenues was $47.0 million for the year ended December 31, 1998 compared to $33.9 million for the year ended December 31, 1997, an increase of $13.1 million or 39%. Cost of outsourcing services was $26.3 million for the year ended December 31, 1998 compared to $20.8 million for
Selling, general and administrative expenses. Selling, general and administrative expenses, including management fees paid to shareholder, were $14.6 million for the year ended December 31, 1998 compared to $9.9 million for the year ended December 31, 1997, an increase of $4.7 million or 47%. This increase was primarily due to additional executive management, staffing, office space and computer equipment and software required to expand the infrastructure to support INSpire's growth.
Cash and cash equivalents and investments were $17.7 million as of December 31, 1999 compared to $48.1 million as of December 31, 1998, a decrease of $30.4 million. Net cash provided by operating activities was $114,000 for the year ended December 31, 1999. The net loss of $19.7 million for the year ended December 31, 1999 included noncash charges of $9.2 million for depreciation and amortization, $11.0 million for bad debts and $16.8 million for intangible assets impairment, offset by a deferred tax benefit of $6.2 million. Increases in accounts receivable of $17.0 million and income taxes receivable of $3.6 million were partially offset by an increase in accrued expenses of $7.5 million. Net cash used in investing activities was $27.3 million for the year ended December 31, 1999, which is primarily attributable to costs associated with the Robert Plan Acquisition and the Island Acquisition, capitalized contract implementation costs associated with the outsourcing services agreements with Arrowhead, The Robert Plan and Island Group, and purchases of property and equipment necessary to expand the infrastructure to support INSpire's growth. Net cash provided by financing activities was $449,000 for the year ended December 31, 1999, primarily attributable to proceeds from exercises under stock plans.
in 1998 from foreign operations, primarily in the United Kingdom and Bermuda, were up 8% over 1997 mainly due to new business partially offset by lost business. Earnings before income taxes of $70.0 million in 1998 increased 16% over 1997 due mainly to increased revenues.
Gallagher also has three line of credit facilities which total $45.0 million in the aggregate and expire on April 30, 2000. Periodically, Gallagher will make short-term borrowings under these credit facilities to meet short-term cash flow needs. During 1999 and 1998, Gallagher borrowed and repaid $78.5 million and $60.0 million of short-term borrowings, respectively, under these facilities. As of December 31, 1999 and 1998, $15.0 million was outstanding under these facilities. These borrowings were primarily used on a short-term basis to finance a portion of Gallagher's operations and expanded investment activity.
Arthur J. Gallagher & Co. (Gallagher) provides insurance brokerage and risk management services to a wide variety of commercial, industrial, institutional and governmental organizations. Commission revenue is principally generated through the negotiation and placement of insurance for its clients. Fee revenue is primarily generated by providing other risk management services including claims management, information management, risk control services and appraisals in either the property/casualty market or human resource/employee benefit market. Gallagher operates through approximately 200 offices throughout the United States and six countries abroad.
Ernst & Young LLP, independent auditors, has audited Gallagher's consolidated financial statements and their report is presented herein.
The National Association of Insurance Commissioners' model law for risk based capital ("RBC") applies to both life and property and casualty companies. RBC formulas 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, 1999, the capital ratios of all AFC insurance companies substantially exceeded the RBC requirements (the lowest capital ratio of any AFC subsidiary was 2.3 times its authorized control level RBC; weighted average of all AFC subsidiaries was 4.8 times).
Debt and Preferred Securities The following table shows scheduled principal payments (in millions) on fixed-rate long-term debt of AFC and its subsidiaries and related weighted average interest rates for each of the subsequent five years and for all years thereafter.
Basis of Presentation The consolidated financial statements include the accounts of American Financial Corporation ("AFC") and its subsidiaries. Certain reclassifications have been made to prior years to conform to the current year's presentation. All significant intercompany balances and transactions have been eliminated. All acquisitions have been treated as purchases. The results of operations of companies since their formation or acquisition are included in the consolidated financial statements.
I. Minority Interest Minority interest in AFC's balance sheet is comprised of the following (in thousands):
Provision for income taxes as shown on the Statement of Earnings $101,020 $ 92,699 $132,599 ======== ======== ========
The gross deferred tax asset has been reduced by a valuation allowance based on an analysis of the likelihood of realization. Factors considered in assessing the need for a valuation allowance include: (i) recent tax returns, which show neither a history of large amounts of taxable income nor cumulative losses in recent years, (ii) opportunities to generate taxable income from sales of appreciated assets, and (iii) the likelihood of generating larger amounts of taxable income in the future. The likelihood of realizing this asset will be reviewed periodically; any adjustments required to the valuation allowance will be made in the period in which the developments on which they are based become known. The aggregate valuation allowance decreased by $39.7 million in 1999 due primarily to the utilization and expiration of loss carryforwards previously reserved.
In a 1997 transaction, AAG purchased for $4.9 million a minority ownership position in a company engaged in the production of ethanol. AFC's Chairman purchased the remaining ownership. During 1998, this company borrowed $4.0 million from AAG under a subordinated note bearing interest at 14% and paid a $6.3 million capital distribution, including $3.1 million to AAG. AAG's equity investment in this company at December 31, 1999 was $1.8 million. In addition, AAG and Great American have each extended a $5 million line of credit to this company; no amounts have been borrowed under the credit lines.
Medical premium revenues for OmniCare-TN increased $16.3 million (21%), to $93.3 million in the year fiscal ended June 30, 2001, from $77.0 million in the fiscal year ended June 30, 2000. OmniCare-TN's premium rate increases accounted for $5.2 million of the increase. Member months increased 82,000 (16%) to 606,000 in the fiscal year ended June 30, 2001 from 524,000 in the fiscal year ended June 30, 2000, and accounted for a $12.3 million increase in premium revenues. Prior to July 1, 2001, TennCare provided additional adverse selection payments to managed care organizations for high cost chronic conditions of their members and payments earmarked as adjustments for covered benefits. In the fiscal year ended June 30, 2001, revenue adjustments for adverse selection and other covered benefits for OmniCare-TN decreased $1.2 million compared to the prior fiscal year. TennCare has ceased adverse selection payments as of July 1, 2001.
Medical services expenses for OmniCare-TN increased $10.1 million (15%), to $77.9 million in the fiscal year ended June 30, 2001 from $67.8 million in the fiscal year ended June 30, 2000. The OmniCare-TN MLR was 85% for the fiscal year ended June 30, 2001 and 88% for the fiscal year ended June 30, 2000. The fiscal 2000 OmniCare-TN MLR includes an approximate 4.5% increase due to a fourth quarter increase in the medical claims liability of $3.4 million related to the assignment of new members by TennCare. The fiscal 2001 contract with TennCare requires that a minimum of 85% of capitation revenues be paid to medical service providers. The fiscal 2000 OmniCare-TN MLR includes an approximate 3% reduction due to offsets to medical services expenses related to the net recovery of $0.5 million in refundable advances made to a third party dental administrator and an excess adverse selection payment of $1.0 million received in fiscal 1999 for the period June 1997 and prior.
The total OmniCare-TN PMPM revenue rate - based on an average membership of 43,700 for the fiscal year ended June 30, 2000 compared to 45,000 for the fiscal year ended June 30, 1999 - was $147 for the fiscal year ended June 30, 2000 compared to $131 for the fiscal year ended June 30, 1999, an increase of $16 (12%). The PMPM premium rate, based on the State of Tennessee's estimate, increased 5%, to $129 for the fiscal year ended June 30, 2000 from $122 for the fiscal year ended June 30, 1999, excluding excess adverse selection payments and adjustments for covered benefits.
and a computer center, all located on nearby properties. The life insurance
Operating income 157,843 171,240 153,128 138,962 126,264 Realized investment gains, net of appli- cable income taxes 37,329 31,998 22,559 18,675 11,427
Net income $ 195,172 $ 203,238 $ 175,687 $ 157,637 $ 137,691 =========== =========== =========== =========== ===========
The Company has no outstanding long-term debt and is not a party to an agreement under which significant long-term financing might be provided by an outside party in the future. The Company leases data processing equipment and field office locations, generally under noncancelable lease terms of three to five years. Financing and capital resources considerations are not critical to the decision making process involving leasing activities.
During the fourth quarter of 1996, as part of the Company's state-by-state review of market profitability, a pre-tax charge of $2.0 million was recorded for the accelerated recognition of losses on two discontinued blocks of AMS small group managed care business in Texas and Kentucky. This one-time charge is not included in the reported medical loss ratio for AMS products for 1996.
In May 1994, the Company acquired a majority interest in CNR for a combination of cash and common stock. CNR manages mental health, substance abuse, and medical benefits for over 800,000 members in the United States as of December 31, 1996. CNR is headquartered in West Allis, Wisconsin, and has regional offices in Houston and Dallas.
In recent years, many states, including certain of the principal states in which the Company does business, have enacted or are considering various health care reform statutes. These include small group reform statutes that limit the ability of insurers to underwrite and rate, and statutes that provide for the creation of regional purchasing pools. Implementation of such reform measures by a substantial number of states, particularly measures mandating purchasing pools, could significantly increase competition in the health care industry. In 1996, Congress enacted H.R. 3103, the Kennedy-Kassebaum bill, which provides for guaranteed issue, group-to-individual portability and pre-existing condition limitations for certain insurance coverages. It also requires states to evaluate and potentially rewrite their laws to conform to new guidelines. The impact of such newly enacted legislation on the Company cannot yet be determined.
Paid-in capital 184,019 86,902 Retained earnings 107,073 103,361 Unrealized gains on investments 6,269 9,548 -------- -------- Total shareholders' equity 313,655 212,411 -------- -------- Total liabilities and shareholders' equity $836,120 $721,289 -------- -------- -------- --------
The above merger and acquisitions have been accounted for using the purchase method of accounting, and the accompanying consolidated financial statements include the results of operations from the respective dates of merger or acquisition.
Interest on cash equivalents and other investment income 2,669 2,443 2,119 ------- ------- -------
Held to maturity: U.S. Treasury securities 12,623 122 (13) 12,732 Corporate securities 200 - - 200 --------- ---------- ---------- --------- 12,823 122 (13) 12,932 --------- ---------- ---------- --------- $406,156 $ 4,118 $(2,727) $407,547 --------- ---------- ---------- --------- --------- ---------- ---------- ---------
The grantee's rights vest over a six year period after the date of the grant. Upon exercise, grantees receive cash equal to the sum of the appreciation in value of the Company's common stock and the value of dividends paid between the date of the grant and the date of exercise. The rights lapse if not exercised within twelve years of the grant date.
The retained premium produced by these reportable segments is supported by our American Hallmark Insurance Company of Texas, Hallmark Specialty Insurance Company, Hallmark Insurance Company, Hallmark National Insurance Company and Texas Builders Insurance Company insurance subsidiaries. In addition, control and management of Hallmark County Mutual is maintained through our wholly owned subsidiary, CYR Insurance Management Company (“CYR”). CYR has as its primary asset a management agreement with HCM which provides for CYR to have management and control of HCM. HCM is used to front certain lines of business in our Specialty Commercial and Personal Segments in Texas. HCM does not retain any business.
Although considerable variability is inherent in such estimates, we believe that our reserves for unpaid losses and LAE are adequate. Due to the inherent uncertainty in estimating unpaid losses and LAE, the actual ultimate amounts may differ from the recorded amounts. A small percentage change could result in a material effect on reported earnings. For example, a 1% change in December 31, 2014 reserves for unpaid losses and LAE would have produced a $4.2 million change to pretax earnings. The estimates are continually reviewed and adjusted as experience develops or new information becomes known. Such adjustments are included in current operations.
Total revenue for the Standard Commercial Segment of $81.5 million for the year ended December 31, 2014 was $1.8 million less than the $83.3 million reported during the year ended December 31, 2013. This 2% decrease in total revenue was mostly due to an increased adverse profit share commission revenue adjustment of $1.6 million and lower net investment income of $0.3 million, partially offset by higher net earned premiums of $0.1 million.
The increase in revenue for the year ended December 31, 2013 was accompanied by increased loss and LAE of $34.9 million as compared to the same period of 2012. During the twelve months ended December 31, 2013 we recorded $10.0 million of unfavorable prior year loss development. During the twelve months ended December 31, 2012 we recorded $3.7 million of favorable prior year loss development. The increase in loss and LAE occurred despite a $1.5 million decrease in catastrophe losses to $10.2 million during the year ended December 31, 2013 from $11.7 million reported for the same period of 2012. Other operating expenses also increased due mostly to increased production related expenses in our E&S Commercial business unit.
The following table provides a profile of the Company's fixed maturity portfolio by rating as of December 31, 1997:
PICOM is a Michigan-domiciled property and casualty insurance company licensed in eight states which provides professional liability insurance for physicians, surgeons, dentists, hospitals, other health care providers and lawyers and law firms.
These condensed financial statements should be read in conjunction with the accompanying consolidated financial statements and notes thereto of Professionals Insurance Company Management Group and subsidiaries.
The following tables present selected consolidated statement of operations, balance sheet and supplemental data of AdvancePCS for the periods and dates indicated. The selected statement of operations for each of the years in the five-year period ended March 31, 2001, and the balance sheet data as of March 31, 1997, 1998, 1999, 2000 and 2001 presented below are derived from our consolidated financial statements and accompanying notes, which have been audited by Arthur Andersen LLP, independent public accountants.
Effective December 1, 1998, we completed the acquisition of Baumel-Eisner Neuromedical Institute, Inc., a privately held clinical trial firm, for $25 million in cash. The acquisition was accounted for using the purchase method of accounting.
That’s our corporate mission. It combines a human touch, sound ethics and a spirit of innovation that serve as a source of motivation for our people. It informs our decisions and guides our actions everywhere we operate, from Europe to Latin America. It’s now enshrined in our Articles of
We commit to: Taking action to address global warming and preserve the natural world
Our contribution to France’s sustainable recovery, with our huge support for the real economy, is further evidence of this benefit insurance serves such a crucial purpose, but it’s one that is not widely understood.
What do you see as the keys to success for CNP Assurances?
Bank Federation and Secours populaire français, a non-profit that aims to combat poverty and discrimination, by employees taking part in the live fitness classes on the “Bougeons
Société anonyme (joint-stock company) with fully paid-up share capital of €686,618,477
The Company leases certain office space in Bala Cynwyd, PA which serves as its headquarters location and also leases 40 field offices for its field marketing organization. In July 1999, the Company acquired the principal executive offices of Liberty, located in Pinellas Park, Florida.
(1) 1996 and 1995 share data restated to reflect a two-for-one split of the Company's common stock distributed in November 1997.
Income Tax Expense: The Company's effective tax rates for 1998 and 1997 were 26.0% and 24.0%, respectively. The effective rates differed from the 35% statutory rate principally due to investments in tax-exempt securities. The increase in the effective tax rate is principally due to a greater investment of cash flows in taxable securities relative to tax-exempt securities and greater net investment gains on the sale of securities in 1998 vs. 1997.
Proceeds from the offering were approximately $99.0 million (after underwriting and associated costs). The proceeds from the sale of the Growth Prides were used to purchase the underlying securities to be transferred to the holders of the Growth Prides pursuant to the terms thereof. All the proceeds from the sale of the Trust Preferred Securities that were not components of the Income Prides and all of the proceeds from the sale of the Income Prides were invested by PCHC Financing I in debentures of the Company. The debentures account for substantially all the assets of PCHC Financing I. The debentures, whose principal amount is $106.7 million, mature on May 16, 2003 and pay interest initially at the rate of 7.0% per annum until May 15, 2001 and at the reset rate thereafter. The Company utilized $25.7 million of the net proceeds during 1999 for its acquisition of Liberty, and contributed $33.1 million of the net proceeds to its subsidiaries in 1998, of which $20.0 million was contributed to the Insurance Subsidiaries. Additionally, $15.2 million was utilized by the Company to buy back its common stock under its stock buy-back authorization. The Company anticipates utilizing the remaining proceeds for general corporate purposes which may include acquisitions, capital expenditures, and the repurchase by the Company of its common stock.
The Company currently leases office space to serve as its headquarters location and 40 field offices for its production underwriters. In addition, the Company leases certain computer equipment. Rental expense for these operating leases was $1.7 million, $1.2 million and $0.9 million for the years ended December 31, 1999, 1998, and 1997, respectively.
On December 30, 1994, the Oklahoma District Court approved a settlement between the MCAIC Receiver and its subsidiaries and the Registrant and its subsidiaries (the "Settlement"). Under the Settlement, the Registrant agreed to pay MCAIC approximately $5.4 million, $2 million of which was paid on December 30, 1994. The Settlement also dismissed with prejudice the litigation previously brought (in August 1993) by the MCAIC Receiver against the Registrant regarding the ownership of Motor Club. The Settlement released all parties from all potential claims against one another, and put in place agreements regarding the handling of consolidated taxes, common cost sharing and service agreements.
The 1995 net effect of this adjustment was a decrease of $7,000 (an increase in the estimated amount recoverable of $1,320,000 in the 1995 accident year and a reduction of $1,327,000 in prior accident years).
The Company has the option to terminate the lease provided it notifies the landlord ninety days prior to the termination date, and reimburses the landlord for the unamortized portion of the landlord's contribution for leasehold improvements which was approximately $100,000 at December 31, 1997.
The consolidated general and administrative expenses for the years 1997 and 1996 were approximately $4.7 million and $5.7 million, respectively. This decrease was due principally to the additional compensation expenses incurred in 1996 from the exercise of warrants and options of approximately $757,000.
Income from Third Party Administrative services was approximately $260,000 in 1996, as compared to approximately $204,000 in 1995. Other income was approximately $39,000 in 1996, as compared to approximately $129,000 in 1995.
: SELECTED FINANCIAL DATA (Dollars in Thousands Except Per Share Amounts)
During the fourth quarter of 1995, the Company recorded a special charge to earnings of $20.6 million (after tax) for certain discontinued lines and classes of business and increased reserves for IBNR losses and unearned premiums.
In May 1994, the Company issued 3,563,750 shares of common stock through an initial public offering, which resulted in $32.0 million of proceeds, net of issuance costs. Of the net proceeds, $10.1 million was used to redeem all of the Series C Cumulative Preferred Stock, including accrued dividends, $20.1 million was contributed to the capital and surplus of AEIC, and the remainder was used for general corporate purposes.
Premiums due from agents and premiums payable to insurance companies, together with applicable commission or fee income, are generally recorded as of the effective date of the policies. Additional premiums, rate adjustments, policy cancellations and contingent commissions are accrued as they become known and estimable.
The reserve for losses and loss adjustment expenses includes estimates for losses incurred but not reported as well as losses pending settlement. The reserve is based upon management's best estimates, loss adjusters' evaluations, and independent actuarial determinations. As a consequence, although the Company believes that its reserves at December 31, 1996, are adequate, actual losses may deviate, perhaps substantially, from reserves reflected in the Company's consolidated financial statements. There are a number of factors that could cause losses to deviate from estimates. Such factors could include assumptions proving incorrect regarding the positive effect of recent changes in underwriting and claims-handling improvements on future trends in claims reporting, frequency and severity of losses, and increases in claims settlement costs due to higher inflation or new theories of liability.
Total benefits and expenses decreased $55.8 million or 2 percent, reflecting lower interest crediting rates and the effect on equity indexed annuities of lower appreciation in the S&P 500 during 2004 versus 2003, a reduction in DAC
IDS Life's effective tax rate decreased to 12 percent in 2003 from 19 percent in 2002 reflecting a $41.3 million reduction in tax expense in 2003 related to the finalization of the 2002 tax return filed during the third quarter of 2003 and publication of favorable technical guidance related to the taxation of dividend income. Partially offsetting this reduction in tax expense was the after-tax impact of realized losses from sales of mortgage-backed securities as a result of IDS Life's decision to make an adjustment to the level of such investments during the third quarter of 2003, such that mortgage-backed securities were 32 percent of IDS Life's overall investment portfolio at December 31, 2003 compared to 43 percent at December 31, 2002.