felanders/preprocessed huggingface dataset:
During the January 2011 renewal season, Validus Re increased gross premiums written on its U.S. Cat XOL lines and decreased gross premiums written in the proportional lines. In addition, Validus Re decreased gross premiums written in the International Property lines as market conditions dictated. In the aftermath of 2010's Deepwater Horizon loss, Validus Re saw additional opportunities and rate increases in the marine lines. Within its specialty lines, Validus Re increased gross premiums written in the terrorism lines among other sub-classes.
Annualized return on average equity represents the level of net income available to shareholders generated from the average shareholders' equity during the period. Annualized return on average equity is calculated by dividing the net income for the period by the average shareholders' equity during the period. Average shareholders' equity is the average of the beginning, ending and intervening quarter end shareholders' equity balances. The Company's objective is to generate superior returns on capital that appropriately reward shareholders for the risks assumed and to grow revenue only when returns meet or exceed internal requirements. Details of annualized return on average equity are provided below.
For reinsurance business, the Company typically receives from brokers details of paid losses and estimated case reserves recorded by the ceding company. In addition to this, the ceding company's estimated provision for IBNR losses is sometimes also available, although this in itself introduces additional uncertainty owing to the differing and typically unknown reserving practices of ceding companies.
To the extent insurance and reinsurance industry data is relied upon to aid in establishing reserve estimates, there is a risk that the data may not match the Company's risk profile or that the industry's reserving practices overall differ from those of the Company and its clients. In addition, reserving can prove especially difficult should a significant loss event take place near the end of an accounting period, particularly if it involves a catastrophic event. These factors further contribute to the degree of uncertainty in the reserving process.
Net reserve for losses and loss expenses at December 31, 2011-Sensitivity to expected loss expenses
The Company's external investment accounting service provider receives prices from independent pricing sources to measure the fair values of its fixed maturity investments. These independent pricing sources are prioritized with respect to reliability to ensure that only the highest priority pricing inputs are used. The independent pricing sources are received via automated feeds from indices, pricing and broker-dealers services. Pricing is also obtained from other external investment managers. This information is
Financial Accounting Standards Board Statement No. 123, "Accounting for Stock- Based Compensation" (SFAS No. 123), effective for fiscal years beginning after December 15, 1995, encourages, but does not require, companies to adopt a fair value based method of accounting for employee stock options. It also allows companies to continue to measure compensation cost under Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" (APB No. 25), and present pro forma disclosures of net earnings and earnings per share as if a fair value based method of accounting had been applied. The Company will adopt SFAS No. 123 in 1996 and expects to elect to continue to measure compensation cost under APB No. 25 and comply with the pro forma disclosure requirements. As a result, SFAS No. 123 will not have a material impact on the Company's results of operations or financial position. The Company's stock option plans are generally fixed plans, as defined under APB No. 25, and accordingly, stock options issued under the Company's plans have no intrinsic value at the grant date.
Our Net income for the year ended December 31, 2000 increased 80% to $16.0 million from $8.9 million at December 31, 1999. The increase from 1998 to 1999 is not meaningful due to 1998 containing only limited activity from May 12, 1998 (the date of incorporation). The increased earnings in 2000 are primarily due to increased income from our Life Reinsurance and Wealth Management operations, an improved return on our investment portfolio and a reduction in realized losses on fixed maturities.
Revenues increased by $61.5 million or 274% from $22.5 million in 1999 to $83.9 million in 2000 due to growth in SALIC's reinsurance operations, our acquisition of Scottish Re and an increase in investment income due to the increase in our invested assets resulting from the new business.
The Company and its subsidiaries own the majority of the furniture and equipment used in the operation of its business.
The discussion in this paragraph relates to the months where the completion factors are deemed to be not fully credible which are typically the months of November and December. The choice of the loss ratio assumption or claims per insured per month assumption for the most recent month of the claim was incurred may also have an impact on the liability estimate. These assumptions are monitored for trends. The Company and its consulting actuary monitor the loss ratio and claims per insured month and override the completion factor approach for the most recent months before the Company’s financial statement date where the completion factors are not fully credible, i.e. November and December. To observe the possible sensitivity of assuming 100% reliance on loss ratio or claims per insured per month factors for claims incurred during the months for which completion are believed to be not fully credible (typically November and December of a fiscal year), if the loss ratio or claims per insured per month had increased by 3% for those months (a multiple of 1.03), the associated claim liabilities for those months and the year end December 31, 2006, claim liability would have been increased by approximately $135,000.
At December 31, 2006 and 2005, respectively, the Company had gross deferred tax assets of $1,397,439 and $1,410,226 with corresponding valuation allowances of $1,072,825 and $1,094,773, and gross deferred tax liabilities of $303,614 and $278,453, resulting from net operating loss carryovers and temporary differences primarily related to the life insurance subsidiary. The valuation allowance is primarily due to statutory limitations on the use of net operating losses. The resulting net deferred tax asset is $21,000 and $37,000 at December 31, 2006 and 2005, respectively. Realization of the deferred tax asset is dependent on generating sufficient taxable income prior to expiration of the loss carry forward. Although realization is not assured, management believes it is more likely than not that all of the net deferred tax asset will be realized. However, the amount of the deferred tax asset considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.
At December 31, 2006 the Company had liquid assets of $1,673,058 in cash, receivable on fixed securities, money market savings accounts, and short-term certificates of deposit. All of the non-cash liquid assets can readily be converted into cash.
(3) Prior to 1996, the Company, as the wholly owned stock insurance company subsidiary of a mutual life insurance company (MONY Life), prepared its financial statements in conformity with accounting practices prescribed or permitted by the Arizona Insurance Department, which accounting practices were considered to be GAAP for mutual life insurance companies and their wholly owned stock life insurance company subsidiaries. As of January 1, 1996, the Company adopted Financial Accounting Standards Board (FASB) Interpretation No. 40, Applicability of Generally Accepted Accounting Principles to Mutual Life Insurance and Other Enterprises, and Statement of Financial Accounting Standards ("SFAS") No. 120, Accounting and Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for Certain Long Duration Participating Policies. Interpretation No. 40 and SFAS No. 120 require mutual life insurance companies and their wholly owned stock insurance company subsidiaries to adopt all applicable authoritative GAAP pronouncements in their general purpose financial statements. Accordingly, the financial information presented in the Selected Financial Information for periods prior to 1996 has been derived from financial information of the Company which has been retroactively restated to reflect the adoption of all applicable authoritative GAAP pronouncements. All such applicable pronouncements were adopted as of the effective date originally specified in each such pronouncement.
Interest credited to policyholders' account balances was $63.5 million for 1999, a decrease of $1.6 million, or 2.5%, from $65.1 million reported in the comparable prior year period. The decrease was primarily due to lower single premium deferred annuity ("SPDA") account balances and modest declines in crediting rates which reduced interest crediting amounts by approximately $3.4 million. During 1999, SPDA account value decreased $55.3 million to $248.4 million at December 31, 1999 from $303.7 million at December 31, 1998 as a result of continued withdrawals in 1999. This was offset by a $1.1 million increase in FPVA interest credited due to increases in general account fund balances for this product.
The Company had total assets at December 31, 1999 of approximately $6.2 billion of which $1.8 billion represented assets held in the Company's general account and $4.4 billion represented assets held in the Company's separate accounts, for which the Company does not generally bear investment risk.
In addition to valuation allowances and impairment writedowns recorded on specific commercial mortgage loans classified as problem and restructured mortgage loans, the Company records a non-asset specific estimate of expected losses on all other such mortgage loans based on its historical loss experience for such investments. As of December 31, 1999 and 1998, such reserves were $0.6 million and $0.4 million, respectively.
A VIE is consolidated by the reporting entity that determines it has both:
The fair value of embedded derivatives related to GMAB and the non-life contingent benefits associated with GMWB provisions, indexed annuities and IUL fluctuate based on equity, interest rate and credit markets and the estimate of the Company’s nonperformance risk, which can cause these embedded derivatives to be either an asset or a liability. See Note 13 for information regarding the fair value measurement of embedded derivatives.
In November 2017, the Company began offering a fixed index annuity product which is a fixed annuity that includes an indexed account. The rate of interest credited above the minimum guarantee for funds allocated to the indexed account is linked to the performance of the specific index for the indexed account (subject to a cap). The Company offers S&P 500® Index and MSCI® EAFE Index account options. Both options offer two crediting durations, one-year and two-year. The contractholder may allocate all or a portion of the policy value to a fixed or indexed account. The portion of the policy allocated to the indexed account is accounted for as an embedded derivative. The Company hedges the interest credited rate including equity and interest rate risk related to the indexed account with derivative instruments. The contractholder can choose to add a GMWB for life rider for an additional fee.
or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 2011 through 2015.
Income taxes-The Company’s effective income tax rate, which includes a provision for state income and franchise taxes for noninsurance subsidiaries, was 34.8%, 33.3% and 35.7% for 2003, 2002 and 2001, respectively. The differences in the effective tax rate were primarily due to changes in the ratio of permanent differences to income before income taxes and minority interests and changes in state income and franchise taxes resulting from fluctuations in the Company’s noninsurance subsidiaries’ contribution to pretax profits. Information regarding items included in the reconciliation of the effective rate with the federal statutory rate is contained in Note 11 to the consolidated financial statements.
A reconciliation of the changes in the carrying amount of net goodwill, by operating segment, as of December 31, 2003, is as follows:
Effective December 15, 2002, the Company adopted Statement of Financial Accounting Standards No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure, which amends Statement of Financial Accounting Standards No. 123, Accounting for Stock-Based Compensation” (SFAS 148). In accounting for its plans, the Company, as allowable under the provisions of SFAS 148, applies Accounting Principles Board Opinions No. 25, “Accounting for Stock issued to Employees.” As a result of this election, the Company does not recognize compensation expense for its stock option plans. Had the Company determined compensation cost based on the fair value for its stock options at grant date, net income and earnings per share would have been reduced to the pro forma amounts as follows:
US SEARCH hold approximately 20% of the total shares of First Advantage. The First American Corporation received Class B common stock, entitling 10 votes for each share, representing approximately 80% of the total shares of First Advantage. Approximately $3.0 million of intangible assets with definite lives and $54.9 million of goodwill was recorded by First Advantage as part of this transaction. The new public company trades Class A common stock as “FADV” on the NASDAQ National Market System.
The Company's effective income tax rate for 2000 was 38.1%. Non-taxable investment income reduced the Company's effective tax rate by approximately five percentage points.
At December 31, 2000, $10,083,000, or 5%, of the Company's investment portfolio was invested in non-investment grade securities compared to $11,082,000, or 5%, at December 31, 1999. All of the Company's non-investment grade securities are currently performing to the Company's expectations at the time of purchase.
The Company continues to actively seek opportunities for growth through acquisition. Management believes that as industry consolidation occurs, the Company is in a position to take advantage of its operational efficiencies. During 1997 and 1998, the Company acquired the following blocks of business:
The health loss ratio for the year ended December 31, 1998 was 76.7%, an improvement from 77.5% for 1997. The improved loss ratio for 1998, as previously mentioned, reflects the cancellation of unprofitable business, including the stand-alone dental business effective June 1, 1998, increased higher margin new business and repricing of existing business. The life loss ratio for the year ended December 31, 1998, was 31.5%, which is an improvement from 35.3% for 1997.
American Medical Security Group, Inc., formerly known as United Wisconsin Services, Inc., together with its subsidiary companies ("AMSG" or the "Company"), provides life and health insurance products for individuals and small employer groups. The Company offers a wide variety of health and life insurance products including medical, dental, prescription drug, disability, group term life and accidental death insurance. The Company's products are sold through licensed, independent agents in 33 states and the District of Columbia. Approximately 120 Company sales managers located in sales offices throughout the United States support the independent agents. The Company principally markets health benefit products that provide discounts to insureds that utilize preferred provider organizations (PPOs). AMSG owns a large preferred provider network and also contracts with more than 65 other networks to ensure cost-effective health care choices to its customers.
Dividends paid by the insurance subsidiaries to the Company are limited by state insurance regulations. The insurance regulator in the state of domicile may disapprove any dividend which, together with other dividends paid by an insurance company in the prior twelve months, exceeds the regulatory maximum as computed for the insurance company based on its statutory surplus and net income. Based upon the financial statements of the Company's insurance subsidiaries as of December 31, 1998, as filed with the insurance regulators, the aggregate amount available for dividends in 1999 without regulatory approval is $18,329,000.
The Company evaluates segment performance based on profit or loss from continuing operations before income taxes, not including gains and losses on the Company's investment portfolio. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intercompany transactions have been eliminated prior to reporting reportable segment information.
Reserve for claims and claims expenses $364.6 Net unearned premium reserve 108.7 Reinsurance premiums payable 14.7 Other insurance liabilities 24.5 ------ Total Liabilities $512.5 ------
Following the sale of our reinsurance business to Folksamerica, our intended strategy is to pursue business combinations and ventures with operating businesses. Our success will depend almost entirely on the operations, financial condition and management of the companies with which we may merge or which we may acquire in whole or in part. We have not yet identified specific business opportunities. Accordingly, the financial and operational risks that we may encounter in the future cannot be specified. See the section of our special meeting proxy statement entitled "Risk Factors--Risks Relating to Our Business After the Asset Sale," which is incorporated by reference.
1998 Year Underwriting Impact -------------------------------------- Managing Underwriting Space & Agency Aviation Total ------ -------- ----- Net premiums written $ 16.3 $ 26.0 $ 42.3 Earned premiums $ 12.5 $ 21.3 $ 33.8 After-tax underwriting loss Amount $ 6.5 $ 7.8 $ 14.3 Per Share (Basic) $ 0.38 $ 0.46 $ 0.84 Combined Ratio Effect (in 4.1 4.9 9.0 percentage points)
We have foreign currency risk on both reinsurance balances receivable and reinsurance balances payable, including claims and claims expenses. We do not currently utilize derivative instruments to manage our exposure to foreign currency movements. At December 31, 1999, the substantial majority of the Company's net receivable/payable position was denominated in United States dollars. At such date, the largest foreign currency exposure related to liabilities denominated in British Pounds Sterling. We had a net liability balance in Sterling of approximately $2.6 million. A 10% increase in the Sterling/United States dollar exchange rate would have resulted in a loss to us of $268,000. Given our limited amount of net asset or liability balances in other foreign currencies, any currency movement of 10% would not produce a material loss for purposes of this discussion.
From time to time various regulatory and legislative changes have been proposed in the insurance and reinsurance industry, some of which could have an effect on reinsurers. Among the proposals that have in the past been, or are at present being considered, are (i) the possible introduction of federal regulation in addition to, or in lieu of, the current system of state regulation of insurers and (ii) proposals in various state legislatures (some of which proposals have been enacted) to conform portions of their insurance laws and regulations to various model acts adopted by the NAIC. We are unable to predict whether any of such laws and regulations will be adopted, the form in which any such laws and regulations would be adopted, or the effect, if any, these developments would have on our operations and financial condition. See "Business--Insurance Regulation."
All RMBS securities of the Company are monitored and reviewed on a monthly basis with detailed modeling completed on the portfolio quarterly. Model output is generated under base and several stress-case scenarios. RMBS asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Models incorporate external loan-level analytics to identify the riskiest securities. The results from the models are then closely analyzed by the asset specialist to determine whether or not a principal or interest loss is expected to occur. Positions are impaired to the net present value of projected cash flows where loss events have taken place or are projected to take place that would affect future cash flows.
The Company’s financial position and/or results of operations are primarily impacted by the following economic factors: equity market performance, fluctuations in medium term interest rates, and the corporate credit environment via credit quality and fluctuations in credit spreads. The following discusses the impact of each economic factor.
During 2009, average variable account balances decreased $1.9 billion (or 20%) to $7.6 billion as compared to the same period in 2008. The decrease in average variable account balances contributed $28.5 million to the decrease in asset-based policy charge revenue during 2009 as compared to 2008.
Negative amortization of DAC was $0.7 million in 2008. Included in the amortization for 2008 was $7.4 million of unfavorable DAC unlocking. During 2008, the Company experienced lower than expected gross profits as a result of market losses which reduced amortization expense and unlocking. The DAC balance was zero as of December 31, 2007 as a result of push down accounting at the acquisition date. Amortization of deferred policy acquisition costs was $22.1 million for 2007.
The table that follows set forth the closing levels of certain major indices at the end of the last five years:
As disclosed in Note 12 to the consolidated financial statements, in 2004, the amount that The National Security Group’s insurance subsidiaries can transfer in the form of dividends to the parent company is limited to $1,029,000 million in the life insurance subsidiary and $2,376,000 million in the property/casualty insurance subsidiary. However, that condition poses no short-term or long-term liquidity concerns for the parent company.
Item 8. Consolidated Financial Statements and Supplementary Data The National Security Group, Inc.
N SFC is licensed in Alabama, Arkansas, Florida, Georgia, Mississippi, Oklahoma, South Carolina, and Tennessee. In addition NSFC operates on a surplus lines basis in Louisiana, Missouri, and Texas. NSFC operates in various property and casualty lines, the most significant of which are dwelling
SFAS No. 152, Accounting for Real Estate Time-Sharing Transactions-an amendment of SFAS No. 66 and 67,amends SFAS No. 66 to reference the financial accounting and reporting guidance for real estate time-sharing transactions that is provided in American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP) 04-02. This statement also amends SFAS No. 67 to state that the guidance for incidental operations and costs incurred to sell real estate projects does not apply to real estate time-sharing transactions. The accounting for those operations and costs is subject to the guidance of SOP 04-2. The adoption of this statement is not expected to have a material impact on the Company’s financial position or results of operations.
For 2004, gross gains of $2,218,867 ($2,266,000 for 2003 and $1,412,000 for 2002) and gross losses of $129,880 ($858,000 for 2003 and $318,000 for 2002) were realized on sales of available-for-sale-securities.
(3) Adjusted to give effect to a 50% stock dividend on the Common Stock declared on April 19, 1995, payable to shareholders of record on May 3, 1995 and distributed on May 15, 1995.
Investment income, net 7.9% 9.1% 8.1% Net realized gains (losses) 0.0% 0.8% 3.6% Other income 0.2% 0.2% 0.3% ------ ------ ------ Total revenues 100.0% 100.0% 100.0%
Income before federal income taxes 12.0% 5.5% 14.0% Provision for federal income taxes 3.4% 1.4% 4.5%
Level of required reserves for policies in-force. The amount of reserves relating to reported and unreported claims incurred is determined by periodically evaluating historical claims experience and statistical information with respect to the probable number and nature of such claims. Claim reserves reflect actual experience through the most recent time period and policy reserves reflect expectations of claims related to a block of business over its entire life. The Company compares actual experience with estimates and adjusts its reserves on the basis of such comparisons. Revisions to reserves are reflected in the Company's results of operations through benefits to policyholder's expense.
The accompanying consolidated financial statements of Penn Treaty American Corporation and its Subsidiaries (the Company) have been prepared in accordance with generally accepted accounting principles (GAAP) and include Penn Treaty Network America Insurance Company (PTNA), American Network Insurance Company (ANIC), American Independent Network Insurance Company of New York (AINIC) and Penn Treaty Life Insurance Company (PTLIC), of which all of the common stock was sold by the Company on December 30, 1998, and Senior Financial Consultants Company. All significant intercompany transactions and balances have been eliminated in consolidation. Certain prior year amounts have been reclassified to conform to the current year presentation.
Statement of Position 97-3, "Accounting by Insurance and Other Enterprises for Insurance- Related Assessments" (SOP 97-3) was issued by the American Institute of Certified Public Accountants in December 1997 and provides guidance for determining when an insurance or other enterprise should recognize a liability for guaranty-fund assessments and guidance for measuring the liability. The statement is effective for 1999 financial statements with early adoption permitted. The Company does not expect adoption of this statement to have a material effect on its financial position or results of operations.
The amortized cost and estimated market values of debt securities at December 31, 1998 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Total revenues $ 479,848 $ 522,716 $ 577,978 $ 388,397 $ 249,540 ============ ============ ============ ============ ============
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (dollars in thousands)
New products launched, as well as a larger proportion of sales of products with higher commissions as compared to 2001 led to an increase in commissions and purchase credits during 2002. Lower sales and asset levels led to a decrease in commissions and purchase credits during 2001. Partially offsetting this decline in 2001, the company launched a commission promotion program that increased commissions as a percentage of new sales. Commission promotions in 2002 were approximately equivalent as compared to 2001.
In order to fund the cash strain generated from acquisition costs on current sales, the Company has relied on cash generated from its direct insurance operations as well as reinsurance and securitization transactions. The Company has used modified coinsurance reinsurance arrangements whereby the reinsurer shares in the experience of a specified book of business. These reinsurance transactions result in the Company receiving from the reinsurer an upfront ceding commission on the book of business ceded in exchange for the reinsurer receiving , the future fees generated from that book of business. These reinsurance agreements also mitigate the recoverability risk associated with the payment of up-front commissions and other acquisition costs. Similarly, the Company has entered into securitization transactions whereby the Company issues to ASI, in exchange for cash, the right to receive future fees generated off of a specific book of business. On April 12, 2002, the Company entered into a new securitization transaction with ASI. This transaction covers designated blocks of business issued from November 1, 2000 through December 31, 2001. The estimated present value of the transaction at April 12, 2002, using a discount rate of 6.00%, was approximately $101,713.
ILCO's insurance subsidiaries collectively market through the "Investors" distribution system. Independent non-exclusive agents, general agents and brokers are recruited nation-wide to sell the products. Such agents and brokers also sell insurance products for companies in competition with ILCO's insurance subsidiaries. In order to attract agents and enhance the sale of its products, the Company's insurance subsidiaries pay competitive commission rates and provides other sales inducements. The Investors sales distribution system is presently concentrating its efforts on the promotion and sale of universal life, interest-sensitive life, term life and fixed annuity products.
These laws and regulations require the Company's insurance subsidiaries to maintain certain minimum surplus levels and to file detailed periodic reports with the supervisory agencies in each of the states in which they do business and their business and accounts are subject to examination by such agencies at any time. The insurance laws and regulations of the domiciliary states of the Company's insurance subsidiaries require that such subsidiaries be examined at specified intervals.
Pursuant to the surplus debentures Investors-NA paid to the Company principal and interest on the surplus debentures of $22,749,576 in 1995, $36,288,469 in 1996 and $14,093,711 in 1997.
Earned insurance charges for the year ended December 31, 1997 were $40.9 million, as compared to $42.24 million for 1996 and $42.32 million for 1995. This source of revenues is related to the universal life insurance and annuity book of business of Investors-NA.
Under the Plan, the Company will utilize its own personnel and personnel of its affiliated company, FIC Computer Services, Inc., acquire Y2K compliant operating software, and engage the assistance of outside consultants to facilitate the systems conversions and modifications. The Company has budgeted approximately $470,000 for implementation of the Plan. In the event that the Plan does not achieve full compliance by the target dates, or if unforeseen matters involving Y2K appear before or after January 1, 2000, the Company will utilize the staff of FIC Computer Services to identify and resolve such issues as and if they arise.
In June, 1997, the FASB issued FAS 131, "Disclosure About Segments of an Enterprise and Related Information", which establishes standards for reporting information about operating segments. Generally, FAS 131 requires that financial information be reported on the basis that it is used internally for evaluating performance. The Company is required to adopt FAS 131 effective January 1, 1998 and comparative information for earlier years must be restated. This statement does not need to be applied to interim financial statements in the initial year of application. The Company is currently considering the impact, if any, of FAS 131 on its current reporting structure.
2. Consolidated Balance Sheets, as of December 31, 1997 and December 31, 1996.
Other policy benefits increased in the current year due primarily to interest paid on premium deposits and dividend accumulations, as these policyholder liability accounts have increased.
Realized Investment Gains (Losses), Net. Net losses on investment of $0.3 million in 2012 is related to an OTTI adjustment on one coal energy provider debt issuer. The operations of this energy provider have been negatively impacted by challenging environment in the coal-fired generation sector and overall decline in the price of power it can charge to customers. This fixed maturity security is scheduled to mature in 2017. Net realized losses of $0.6 million in 2011 are due primarily from an OTTI on one American Airlines debt security that totaled $70,000 due to the issuer filing bankruptcy, and a write-down of approximately $0.5 million related to investment real estate for an office building in Arkansas. We obtained an appraisal in 2011 that reflected a loss in fair value. Gains of $1.5 million in 2010 related primarily to sales of below investment grade securities that were added to the portfolio as part of an acquisition and had been previously impaired.
Policyholders' dividends. The increase in 2012 compared to prior years results from a manual adjustment that has now been properly set up in the policy administration system to properly reflect increasing policy values from annual paid up additions. This one time increase in dividends paid and single premium revenue of approximately $180,000 has no impact on the overall segment earnings for the quarter or nine months. The reserve liability had been previously set up relative to this policy feature and was decreased by $35,000 based upon the system calculated value.
We continue to use the original assumptions (including a provision for the risk of adverse deviation) in subsequent periods to determine the changes in the liability for future policy benefits (the "lock-in concept”) unless a premium deficiency exists. Management monitors these assumptions and has determined that a premium deficiency did not exist as of December 31, 2012. Management believes that our policy liabilities and increase in future policy benefit reserves as of the years ended December 31, 2012, 2011 and 2010 are based upon assumptions, including a provision for the risk of adverse deviation, that do not warrant revision.
Contributions to the very good financial result of the business year were made by a considerably higher investment income, a positive balance on foreign cur­ rency transactions, a pronounced increase in capital gains on securities and a need for write-offs on capital market investments which was considerably lower than in the previous year.
creases were once more outweighed by the continuing growth of the claims incurred. An Improvement of the branch Is not to be achieved by means of premium in­ creases alone; additional measures have to be taken (stricter risk selection. Introduction of deductibles on the part of the policyholders, limitation of the scope of cover). Fidelity, Water Damage and Livestock reinsurance brought minor losses.
2 A work station with visual display unit calls for an ergonomic and functionally optimal design.
The number of owners of the 44,000 bearer shares and the 240,000 non-voting shares is not known. Neither does the Company have any information on the average monthly trading with these shares.
The commissions and profit commissions accounted for gross business totalled Sw.frs. 1,042.7 million. Of this amount, Sw.frs. 277.6 million referred to retrocession­ aires, leaving Sw.frs. 765.1 million for own account.
«er'«' mm 1, 2 Early in 1984 the Swiss-South African Re will move into new office premises.
The data shown in the Group accounts are based on con­ solidation and valuation principles which are uniform for all Group companies. Minor exceptions are mentioned where applicable. The consolidation and valuation prin­ ciples are the same as in the previous year.
The claims incurred comprise payments for Life and An­ nuity insurance as well as the adjustment In the outstand­ ing claims reserve. The total outgo for own account rose in the year under report by Sw. frs. 96 million to Sw. frs. 888 million. Of this amount, Sw.frs.773 million concerned reinsurance companies and Sw.frs.115 million insurance companies.
Magdeburger Eeuerversicherungs-AG Magdeburger Allgemeine Lebens- und Rentenversicherungs -AG Magdeburger Hagelversicherungs AG Magdeburger Union Rechtsschutz Versicherungs-AG Kirchhorster Strasse 2, D-3000 Hanover 51
Broker: Insurance or reinsurance Intermediary with no contractual connection to a particular ^ insurer or ^ re­ insurer.
Co-insurance basis: System of Life reinsurance under which the ^ reinsurer assumes a share of the ^ risk (i.e. premiums and benefits) as well as setting-up of reserves at the same terms as the ^ ceding company.
Life reinsurance in force; All reinsured Life business in tfie ^ portfolio of tfie reinsurer.
Outstanding claims reserve: Reserve for claims wtiicti tiave been incurred but wtiicti tiave not yet been finally settled.
Reinsurer: Company wtiicti accepts a stiare of ttie ^ insurer's risks.
In addition to the realignment strategy as described above, the Company also increased its level of cash and short-term investments from $38.1 million at December 31, 2005, to $63.1 million at December 31, 2006, primarily as a result of the infusion of proceeds from the sale of the Company’s wholly-owned subsidiary, Family Life, as of December 29, 2006. Conning and the Company also completed more extensive asset/liability management and duration analysis which provided the information for more effective reinvestment of funds. As market interest rates began to rise in 2005, cash and short-term investments were deployed in longer term debt securities during 2005 and 2006, particularily utilizing the proceeds from the sale of the Company’s real estate investment, River Place Pointe, in 2005.
For the year ended December 31, 2006, FIC had $517,000 net realized gains on real estate sales, compared to $9.2 million net realized gains in 2005 and $1.7 million net realized gains in 2004. The realized gains on real estate for 2005 includes $8.5 million in gains recognized on the sale of the River Place Pointe property and $761,000 of gains recognized on the sale of three properties included in real estate held for sale. The remaining three properties were sold in January 2006. The net realized gains on real estate for 2004 includes $1.7 million in gains on sales of two of the Company’s real estate properties classified as held for sale.
Interest expense for 2006, 2005 and 2004 totaled $1.4 million, $1.1 million and $864,000, respectively. As previously disclosed in this Item 7, the interest expense relates to debt service on the $15 million trust preferred notes (the “2003 Notes”). The 2003 Notes bear interest quarterly at the three-month LIBOR rate plus 4.2%. Interest expense for 2006, 2005 and 2004 reflects an average annual interest rate of approximately 9.4%, 7.6% and 5.8%, respectively. The higher interest expense in 2006 and 2005 is a direct result of the increase in the LIBOR rate.
In September, 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS 157”). SFAS 157 establishes a common definition for fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. SFAS 157 will be applied prospectively and is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. SFAS 157 is not expected to have a material impact on the Company’s consolidated financial statements.
(4) All periods reflect the adoption of the accounting standard related to earnings per share (SFAS No. 128).
TRH's 1997 results did not include any significant catastrophe loss activity. In addition, as a result of net decreases in estimates of losses occurring in prior years, net losses and loss adjustment expenses were reduced by $14.6 million in 1997. Significant favorable development was recorded in 1997 on losses occurring in years subsequent to 1986 in the other liability line, in 1996 in the medical malpractice line and in 1995 and 1994 in certain property lines. These reductions to incurred losses were partially offset by adverse development in 1997 on losses occurring in 1996 in aircraft and surety lines, in 1995 and 1994 in the medical malpractice line and in 1983 and prior in the other liability line.
Also in February 1997, the Securities and Exchange Commission (SEC) issued Financial Reporting Release No. 48, "Disclosure of Accounting Policies for Derivative Financial Instruments and Derivative Commodity Instruments and Disclosure of Quantitative and Qualitative Information about Market Risk Inherent in Derivative Financial Instruments, Other Financial Instruments, and Derivative Commodity Instruments" (FRR No. 48).
In accordance with the standard, TRH adopted SFAS No. 123 beginning with the 1996 annual financial statements and chose the pro forma disclosure option of implementation. (See Note 8.)
TRH's employees participate in benefit plans administered by AIG including a noncontributory defined benefit pension plan and a voluntary savings plan (a 401(k) plan) which provides for certain matching contributions. These plans cover a substantial majority of TRH's employees. Certain of these plans do not separately identify plan benefits and plan assets attributable to employees of participating companies. In the opinion of management, no material additional liability would accrue to TRH were such plan benefits and plan assets identifiable.
The following discussion and analysis should be read in conjunction with the consolidated financial statements and the notes appearing elsewhere in this report. The consolidated financial statements include the results of two of the Company's wholly owned subsidiaries, Anesthesiologists' Professional Assurance Company and Sy.Med Development, Inc., since July 1, 1998. All amounts have been rounded to the nearest $100,000.
During 1997, (i) McCreary acquired Employers Mutual, Inc. ("EMI"), a third party administrator, (ii) the Company acquired a 20% interest in APS Insurance Services, Inc. ("APS"), a management company for a Texas MPL insurance reciprocal, and (iii) FPIC acquired renewal rights with respect to Frontier Insurance Company's Florida book of physician MPL business. On July 1, 1998, the Company acquired Anesthesiologists' Professional Assurance Company (APAC), a Florida-based MPL insurer. On January 6, 1999, the Company acquired Administrators for the Professions, Inc. ("AFP"), the management company for Physicians' Reciprocal Insurers ("PRI"), a New York MPL insurance reciprocal. On March 17, 1999, FPIC acquired The Tenere Group, Inc. ("Tenere"), a Missouri insurance holding company that owns Intermed Insurance Company ("Intermed"), a Missouri MPL insurer, and Interlex Insurance Company ("Interlex"), a Missouri legal professional liability insurer.
The Company continues to believe that the MPL industry is in a consolidation phase and will ultimately be dominated by companies with a national presence. During 1999, the Company will continue to work to implement its strategy of growing nationally within the MPL industry through a series of geographically strategic acquisitions. The Company views ideal acquisition candidates as companies that are as strong or stronger than the Company on a relative basis and seeks acquisitions that are expected to be immediately accretive to earnings.
views this expansion as the cornerstone of its strategy to meet the growing needs of the consolidating healthcare marketplace.
Claims administration fees and commission income nearly doubled, from $5.2 million in 1996 to $10.2 million in 1997. This increase is attributable to the addition of new contracts and the inclusion of EMI, which was purchased in 1997 and added revenue of $4.6 million.
SFAS No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits" revises employers' disclosures about pension and other post retirement benefit plans. It does not change the measurement or recognition of those plans. The statement standardizes disclosure requirements for pensions and other post retirement benefits to the extent practicable, requires additional information on changes in the benefit obligations and fair values of plan assets that will facilitate financial analysis, and eliminates certain disclosures that are no longer useful. The Company adopted the provisions of SFAS No. 132 for the period ended December 31, 1998.
SELECTED FINANCIAL DATA FOR THE FIVE YEARS ENDED DECEMBER 31, 1997
Our principal executive offices are currently located at 15 Joys Lane, Kingston, New York 12401. Our insurance underwriting business is located principally at 15 Joys Lane, Kingston, New York 12401. Our insurance underwriting business also maintains an executive office located at 70 East Sunrise Highway, Valley Stream, New York 11581, at which we lease 4,985 square feet of space. Our licensed general agency business maintains an office located at 70 East Sunrise Highway, Valley Stream, New York 11581, at which we lease 2,323 square feet of space.
Net written premiums increased $1,484,000, or 1.2%, to $127,063,000 in Year Ended 2020 from $125,579,000 in Year Ended 2019. Net written premiums include direct and assumed premiums, less the amount of written premiums ceded under our reinsurance treaties (quota share, excess of loss, and catastrophe). The increase in net written premiums in Year Ended 2020 was attributable to the inception of the 2019/2020 Treaty on December 15, 2019 on a cut-off basis (see table above) and the decrease in commercial lines premiums, which are not subject to a quota share treaty. In Year Ended 2020, our premiums ceded under quota share treaties in force increased by $25,627,000 over the comparable ceded premiums in Year Ended 2019. Our personal lines business was subject to the 2019/2020 Treaty from December 15, 2019 through December 30, 2020. Our personal lines business was subject to the 2017/2019 Treaty under the 2018/2019 Treaty Year through June 30, 2019. Following June 30, 2019, any earned premium and associated claims for policies still in force continued to be ceded under the 10% quota share rate until such policies expired (run-off) over the next year. The 2019 run-off period was from July 1, 2019 through June 30, 2020 and there was no return of unearned premiums under this arrangement.
The following table provides summary information with respect to each reinsurer that accounted for more than 10% of our reinsurance recoverables on paid and unpaid losses and loss adjustment expenses as of December 31, 2020:
For the period July 1, 2020 through June 30, 2021, reinstatement premium protection for $70,000,000 of catastrophe coverage in excess of $10,000,000.