felanders/preprocessed huggingface dataset:
Days claims payable ("DCP") for the year ended December 31, 2012 was 40.8 days compared with 39.0 days for the year ended December 31, 2011. Adjusted DCP, which we calculate in accordance with the paragraph below, for the year ended December 31, 2012 was 57.6 days compared with 54.5 days in the year ended December 31, 2011.
Interest expense in our Western Region Operations segment was $33.2 million for the year ended December 31, 2012 compared with $31.9 million for the year ended December 31, 2011. The year over year increase is primarily due to a higher cost of borrowing under our new revolving credit facility, which we entered into in October 2011.
We have entered into an agreement with International Business Machines Corporation (“IBM”) to outsource our IT infrastructure management services including data center services, IT security management and help desk support. As of December 31, 2012, the remaining term of this contract was approximately one year with options to renew for up to eighteen months, and total estimated future commitments under the agreement were approximately $98.7 million. We have entered into an agreement with Cognizant Technology Solutions U.S. Corporation (“Cognizant”) to outsource our software applications development and management activities to Cognizant. Under the terms of the agreement, Cognizant will, among other things, provide us with application development, testing and monitoring services, application maintenance and support services, project management services and cross functional services. As of December 31, 2012, the remaining term of this contract was approximately one year with options to renew for up to two years, and the total estimated future commitments under the agreement were approximately $30.7 million.
consideration received in connection with the sale of our Medicare PDP business. After the reallocation of goodwill, we performed a two-step impairment test to determine the existence of any impairment and the amount of the impairment. In the first step, we compared the fair value to the related carrying value and concluded that no impairment to either the carrying value of our Medicare PDP business or our Western Region Operations reporting unit had occurred. Based on the result of the first step test, we did not need to complete the second step test. See Note 3 to our consolidated financial statements for additional information regarding the sale of our Medicare PDP business and Note 7 to our consolidated financial statements for additional goodwill fair value measurement information.
Co-insurance basis 1973 in thousand millions of francs 5 10 15 20
In the year of report, management expenses rose by Sw. frs. 11.9 million, or 20 °/o, to Sw. frs. 70.6 miliion. The rise in the preceding year, partiaiiy as a resuit of lower foreign currency rates, had amounted to oniy 17 °/o.
The depreciation from other causes involved a debit of Sw. frs. 4.0 miiiion (in the previous year, the Profit and Loss Account was credited with Sw. frs. 3.0 mil­ lion because, among other reasons, assets which had been written off precautionariiy were collected).
Canadian Reassurance Company 95 St. Clair Avenue West, Toronto M4V 1N9, Ontario with an Office in Montreal
Operating income, a non-GAAP financial measure, is net income excluding after-tax realized investment gains and losses. Operating income should only be analyzed in conjunction with, and not in lieu of, net income.
our expectations relating to insurance losses from the September 11 attack and related reinsurance recoverables;
U.S. premiums grew 31% in 2002 and 9% in 2001. Substantial premium growth was achieved outside the United States in 2002 and 2001. Reported non-U.S. premiums grew 27% in 2002 and 12% in 2001. In local currencies, such premiums grew 24% and 16% in 2002 and 2001, respectively.
Our personal insurance business produced modestly profitable underwriting results in 2002 compared with slightly unprofitable results in 2001 and substantial profits in 2000. Results in 2001 included net costs of $20 million related to the September 11 attack. The combined loss and expense ratios for the classes of business within the personal insurance segment, as reported and as adjusted to exclude the effects of the September 11 attack, were as follows:
The number of claims filed under the non-aggregate premises or operations section of general liability policies has increased, creating potentially greater exposure.
The substantial loss in 2002 was due to an adverse movement in the mark-to-market adjustment, which resulted in an increase in the fair value of our obligations related to the portfolio credit default swaps. The primary factors contributing to the increase in the fair value of our obligations were downgrades in the financial ratings of certain referenced asset-backed securities, a widening of market credit spreads, and, for one credit default swap, erosion in the risk layers that are subordinate to the CFS risk layer due to actual losses in those subordinate layers.
Capital resources and liquidity represent the overall financial strength of the Corporation and its ability to generate cash flows from its operating subsidiaries and to borrow funds at competitive rates and raise new capital to meet operating and growth needs.
The declaration and payment of future dividends to the Corporation’s shareholders will be at the discretion of the Corporation’s board of directors and will depend upon many factors, including our operating results, financial condition, capital requirements and any regulatory constraints.
Our Medicare Advantage rates are currently enhanced by CMS quality bonuses in certain counties based on our local plans’ Star ratings. The level of Star ratings from CMS, based upon specified clinical and operational performance standards, will impact future quality bonuses.
The increase in revenue was primarily driven by the increase in the number of individuals served through Medicare Advantage; pricing trends; and organic and acquisition growth across the Optum business, primarily due to expansion in pharmacy care services and care delivery, partially offset by the moratorium of the Health Insurance Industry Tax in 2019.
The Company estimates its liability for the Health Insurance Industry Tax based on a ratio of the Company’s applicable net premiums written compared to the U.S. health insurance industry total applicable net premiums, both for the previous calendar year. The Company records in full the estimated liability for the Health Insurance Industry Tax at the beginning of the calendar year with a corresponding deferred cost that is amortized to operating costs on the Consolidated Statements of Operations using a straight-line method over the calendar year. The liability is recorded in accounts payable and accrued liabilities and the corresponding deferred cost is recorded in prepaid expenses and other current assets on the Consolidated Balance Sheets.
The fair values of Level 3 investments in corporate bonds, which are not a significant portion of our investments, are estimated using valuation techniques that rely heavily on management assumptions and qualitative observations.
Medical costs payable included IBNR of $13.8 billion and $13.2 billion at December 31, 2019 and 2018, respectively. Substantially all of the IBNR balance as of December 31, 2019 relates to the current year. The following is information about incurred and paid medical cost development as of December 31, 2019:
On February 14, 2017, the Department of Justice (DOJ) announced its decision to pursue certain claims within a lawsuit initially asserted against the Company and filed under seal by a whistleblower in 2011. The whistleblower’s complaint, which was unsealed on February 15, 2017, alleges that the Company made improper risk adjustment submissions and violated the False Claims Act. On February 12, 2018, the court granted in part and denied in part the Company’s motion to dismiss. In May 2018, DOJ moved to dismiss the Company’s counterclaims, which were filed in March 2018, and moved for partial summary judgment. In March 2019, the court denied the government’s motion for partial summary judgment and dismissed the Company’s counterclaims without prejudice. The Company cannot reasonably estimate the outcome that may result from this matter given its procedural status.
The following selected consolidated statement of operations data and balance sheet data as of and for the years ended December 31, 1996, 1997, 1998, 1999 and 2000, have been derived from our Consolidated GAAP Financial Statements, which have been audited by PricewaterhouseCoopers LLP, independent accountants.
(4) Diluted shares outstanding includes shares issuable upon the conversion of our convertible debt and exercise of options outstanding.
Our unaudited quarterly data for each quarter of 1999 and 2000 have been derived from unaudited financial statements and include all adjustments, consisting only of normal recurring accruals, which we consider necessary for a fair presentation for the results of operations for these periods. Such quarterly operating results are not necessarily indicative of our future results of operations.
Our principal products are individual, defined benefit accident and health insurance policies that consist of nursing home care, home health care, Medicare supplement and long-term disability insurance. Our underwriting practices rely upon the base of experience which we have developed in over 28 years of providing nursing home care insurance, as well as upon available industry and actuarial information. As the home health care market has developed, we have encouraged our customers to purchase both nursing home and home health care coverage, thus providing our insureds with enhanced protection and broadening our policy base.
In conjunction with our decision to discontinue our implementation of this computer system, we filed suit against the software manufacturer and several consultants, alleging misrepresentations regarding the system's capabilities and ability to meet our expectations. We have settled a portion of the lawsuit in exchange for payment of an undisclosed amount. However, we continue to seek a judgment against two additional parties who acted as consultants on the project.
At December 31, 2000, December 31, 1999 and December 31, 1998, the average maturity of our bond portfolio was 7.2 years, 6.9 years and 6.3 years, respectively.
At December 31, 1998 and 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 table describes the credit quality of the fixed maturity portfolio, based on ratings assigned by the National Association of Insurance Commissioners ("NAIC") or Standard & Poor's Corporation, an independent rating agency :
This report and other materials we have filed or may file with the Securities and Exchange Commission, as well as information included in oral statements or other written statements made, or to be made, by us, contain, or will contain, disclosures which are "forward-looking statements." Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as "may," "believe," "will," "expect," "project," "estimate," "anticipate," "plan" or "continue." These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations and future financial condition and results. These factors include, but are not limited to:
Physicians generally direct the majority of hospital admissions. Our success, in part, depends on the number and quality of physicians on our hospitals' medical staffs, the admissions practices of these physicians and the maintenance of good relations with these physicians. We generally do not employ physicians. Only a limited number of physicians practice in the non-urban communities where our hospitals are located. Our primary method of adding or expanding medical services is the recruitment of new physicians into our communities.
The table on the following page sets forth selected consolidated financial data with respect to the Company for the periods indicated. The balance sheet and statement of operations data have been derived from the audited consolidated financial statements of the Company. This information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s consolidated financial statements and notes thereto included elsewhere in this Report.
Loss and loss adjustment expenses ratio: The loss and loss adjustment expenses ratio, expressed as a percentage of loss and loss adjustment expenses to net premiums earned.
Policy acquisition expenses are amounts that are paid to producers of premium offset by the ceding commissions we receive from our reinsurers. For our program business, fees typically are earned through ceding commissions and have the effect of lowering our acquisition expenses. Policy acquisition expenses also include amounts paid for premium taxes to the states where we do business on an admitted basis. Policy acquisition expenses increased to $28.9 million for the year ended December 31, 2007 from $27.4 million for 2006. Policy acquisition expenses as a function of net premiums earned increased to 19.4% for the year ended December 31, 2007 from 18.7% for 2006, primarily due to the mix of business the Company writes and a new excess of loss reinsurance treaty that went into effect July 1, 2007 where we do not receive a ceding commission.
Net cash provided by operations was $101.0 million for the year ended December 31, 2008 and $67.0 million for the year ended December 31, 2007. The cash flow from operations increased in 2008 compared to 2007 primarily due to an increase in premium and reinsurance recoverable receipts partially offset by higher paid claims, acquisition expenses and other operating expenses.
(2)The year ended December 31, 2020 included a $79.3 million tax benefit related to the ability to carryback net operating losses to prior periods under the federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The year ended December 31, 2017 included a $177.0 million benefit from the reduction of net deferred tax liabilities following the enactment of the TCJA. The reduction of net deferred tax liabilities was recorded at the reportable segment level using our best estimate of deferred tax balances as of the December 22, 2017 enactment date.
Certain items in our Consolidated Financial Statements are based on estimates and judgment. Differences between actual results and these estimates could in some cases have material impacts on our Consolidated Financial Statements.
On May 24, 2019, Third Point Re BDA and Third Point Re USA entered into the Amended and Restated Collateral Assets Investment Management Agreement (the “Amended Collateral Assets IMA”) with Third Point LLC, effective May 24, 2019. We entered into the Amended Collateral Assets IMA to provide for Third Point LLC's management of a substantial portion of our assets that were reallocated from TP Fund into cash, U.S. Treasuries and other fixed income investments.
The following tables present the total long, short and net exposure of our total net investments managed by Third Point LLC as of December 31, 2019 and 2018 by strategy and geography:
The following is a summary of the net investment return for our total net investments managed by Third Point LLC for the years ended December 31, 2019, 2018 and 2017:
For the year ended December 31, 2017, the net investment results were primarily attributable to the equity portfolio. Within equities, we experienced positive returns across each long equity sector partially offset by losses from short positions, primarily from equity market hedges. One large long equity healthcare position was a notable contributor to the long equity performance for the year. Credit and the macroeconomic and other strategy, including currency and private investments, also contributed to positive performance with gains from the long exposures partially offset by short exposures in each strategy.
The decrease in other expenses for the year ended December 31, 2018 compared to the year ended December 31, 2017 was primarily due to two deposit contracts that were commuted in 2018, resulting in gains recognized. We also revised estimates of underlying assumptions in 2018 on certain deposit liability contracts resulting in a decrease in other expenses compared to 2017.
For the year ended December 31, 2019, net income attributable to Stewart was $78.6 million, or $3.31 per diluted share, compared to $47.5 million, or $2.01 per diluted share, for the year ended December 31, 2018. Pretax income before noncontrolling interests for the year ended December 31, 2019 was $117.0 million, compared to $72.5 million in the prior year. Total revenues in 2019 were $1.94 billion, a 2% increase from the prior year, primarily as a result of increased direct title revenues and a $50.0 million merger termination fee (included in net realized and unrealized gains) received in connection with the terminated merger transaction with Fidelity National Financial, Inc. (FNF), partially offset by lower revenues from independent agency and ancillary services operations. Total expenses declined 1% in 2019 compared to 2018. Refer to "Results of Operations" for additional year-to-year discussions.
$3.0 million of third-party advisory expenses related to the terminated Fidelity National Financial (FNF) merger transaction included in other operating expenses within the ancillary services and corporate segment,
Summary results of the ancillary services and corporate segment are as follows:
Industry data. Published mortgage interest rates and other selected residential housing data for the years ended December 31, 2019, 2018 and 2017 are shown below (amounts shown for 2019 are preliminary and subject to revision). The amounts below may not relate directly to or provide accurate data for forecasting our operating revenues or order counts. Our statements on home sales, mortgage interest rates and loan activity are based on published industry data from sources including Fannie Mae, the National Association of Realtors® and Freddie Mac.
Title losses. Provisions for title losses, as a percentage of title operating revenues, were 4.6%, 3.9% and 5.1% in 2019, 2018 and 2017, respectively. The title loss ratio in any given year can be significantly influenced by new large claims incurred as well as adjustments to reserves for existing large claims. We continue to manage and resolve large claims prudently and in keeping with our commitments to our policyholders.
During each of 2019, 2018 and 2017, we paid total dividends of $1.20 per common share, which aggregated to $28.3 million, $28.3 million and $28.1 million, respectively.
Subsequent to the end of the reporting period, one additional apartment asset located in Salem, Oregon sold for $4.65 million on March 10, 2005. Proceeds from the sale were used to fully payoff the Special Loan, resulting in a realized loss of approximately $1.6 million for the property.
Net investment income for the Partnership's office portfolio was $2.1 million for the year ended December 31, 2004, an increase of $0.1 million, when compared to the corresponding period in 2003.
The purpose of an appraisal is to estimate the market value of real estate as of a specific date. Market value has been defined as the most probable price for which the appraised real estate will sell in a competitive market under all conditions requisite for a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self interest, and assuming that neither is under undue duress.
Mortgage and other loans receivable, which are accounted for as loans, are independently valued according to the same appraisal process as other investments in real estate.
The National Association of Insurance Commissioners revised the Accounting Practices and Procedures Manual in a process referred to as Codification. The revised manual became effective January 1, 2001. The domiciliary states of M.D. IPA, OCI, OCCI, OCIPA and MLH have adopted the provisions of the revised manual. The revised manual has changed, to some extent, prescribed statutory accounting practices that M.D. IPA, OCI, OCCI, OCIPA and MLH use to prepare their statutory-basis financial statements. The impact of these changes to MAMSI and its insurance subsidiaries' statutory-basis capital and surplus as of January 1, 2001 was not significant.
Life insurance is our largest insurance segment, with 2018 life premium representing 70% of total premium. Life underwriting income before other income and administrative expense represented 73% of the total in 2018. Additionally, investments supporting the reserves for life products produce the majority of excess investment income attributable to the investment segment.
From 2016 through 2018, acquisitions consisted of securities spanning a diversified range of issuers, industry sectors, and geographical regions. All of the acquired securities were investment grade. In addition to the fixed maturity acquisitions, Torchmark invested $94 million in other long-term investments in 2018 compared with $55 million in 2017 and $20 million in 2016.
Approximately 95% of our investments at book value are in a diversified fixed maturity portfolio. Policy loans, which are secured by policy cash values, make up 3% of our investments. We also have investments in equity securities, commercial mortgages, and limited partnerships.
Torchmark is targeting a consolidated Company Action Level RBC ratio in the range of 300% to 320% for 2019.
Stock-Based Compensation: Torchmark accounts for stock-based compensation by recognizing an expense in the consolidated financial statements based on the “fair value method.” The fair value method requires that a fair value be assigned to a stock option or other stock grant on its grant date and that this value be amortized over the grantees’ service period.
failure to pay minimum wage and overtime, failure to provide meal and rest breaks, failure to appropriately pay wages at termination, failure to provide itemized wage statements, failure to reimburse business expenses, and unfair business practices. The Company continues to assess the amount and thus does not have a reasonable estimate of any potential liability.
Below is the reconciliation of the liability for "Policy claims and other benefits payable" in the Consolidated Balance Sheets.
Due to the passage of tax legislation in 2017, the Company recorded an $877 million deferred income tax benefit as a result of remeasuring its deferred assets and liabilities using the lower corporate tax rate as of the date of enactment. In the fourth quarter of 2018, the Company completed its analysis of the tax legislation, as required by ASC 740 Income Taxes, and recorded an additional $798 thousand adjustment related to the remeasurement of the deferred tax assets and liabilities based on the 21% rate.
Includes amortization of postretirement benefits other than pensions of $92 thousand in 2018, $155 thousand in 2017, and $33 thousand in 2016.
Estimated additional (reduced) share grants expected due to achievement of performance criteria.
Mobile Attic is in the business of leasing portable storage containers to individual and commercial customers through an independent dealer network primarily in Alabama, but also operating in Florida and Tennessee. At December 31, 2003 Mobile Attic had available approximately 1,800 storage containers for lease and thirteen independent dealers. The portable storage containers are eight feet wide and eight feet tall and are available in lengths of 8, 16, 20, and 40 feet. Independent dealers market these portable storage containers primarily to household customers in need of a convenient alternative to fixed location mini-storage, commercial customers in need of secure storage facilities at job sites, and retail customers for storage of seasonal inventory.
Mortality assumptions include various percentages of the 1955-60 and 1965-70 Select and Ultimate Basic Male Mortality Table. Withdrawal assumptions are based on the Company’s experience.
Dividends received deduction and tax-exempt interest (184 ) (182 ) (213 )
The appropiate income tax effects of changes in temporary differences are as follows:
Aggregate maturities of long-term debt for each of the five years subsequent to December 31, 2002 are as follows (dollars in thousands): 2003-$316; 2004-$328; 2005-$342; 2006-$357; 2007-$2,037.
CONSUMERS FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
Unearned premiums for credit life and disability insurance contracts have been computed based upon the original and remaining term of the related policies as follows: decreasing term credit life on the Rule of 78's method, level term credit life using the Pro Rata method and credit disability using a 65% - 35% weighted average of the Rule of 78's and Pro Rata methods. Income taxes
Insurance laws require Consumers Life to deposit certain amounts with various state insurance departments in order to maintain its licenses. The approximate carrying amount of such deposits at December 31, 1999 and 1998 was $1.0 million.
At December 31, 1999, all three of the Company's investments in mortgage loans were secured by commercial real estate located in Central Pennsylvania. Such investments consist of first mortgage liens on completed income- producing properties. Each of the loans exceeded 10% of the Company s net assets in liquidation at December 31, 1999 and 1998. The Company s largest loan, which had a balance of $1,175,760 at the end of 1999, was granted to the owner of the other one-half interest in the Company s home office building and is secured by the owner s interest in the building. In connection with the planned sale of the building in June 2000, this loan will be repaid in full.
The provision for federal income taxes is not proportional to pre-tax financial statement income or loss due to the exclusions and special deductions afforded life insurance companies under the Internal Revenue Code, as amended, and the exclusion of non-taxable and non-deductible items. A reconciliation between actual income tax benefits and the expected Federal income tax benefits at the applicable statutory rates is as follows:
Policy Charges. Policy charges increased $21.1 million, or 9.6%, over 1995, reflecting continued growth in universal life-type insurance in- force.
Total Operating Expenses. Total operating expenses increased from $445.3 million in 1994 to $501.6 million in 1995, an increase of $56.3 million, or 12.6%.
Life Subsidiaries Income. As a result of the foregoing, Life Subsidiaries income increased from $136.1 million in 1994 to $139.9 million in 1995, an increase of $3.8 million, or 2.8%.
The Company's life insurance operations are conducted through its subsidiaries Farmers New World Life Insurance Company, The Ohio State Life Insurance Company and Investors Guaranty Life Insurance Company (the "Life Subsidiaries").
Realized gains and losses on sales, redemptions and writedowns of investments owned by the Company (excluding the Life Subsidiaries) are determined based on either the cost of the individual securities or the amortized cost of real estate. Net realized investment gains or losses for the years ended December 31 are:
The interest rate used in the above benefit computations was 7.25% in 1996 and 1995 and 8.25% in 1994. Beginning in 1993, the initial medical inflation rate was 9.00%, to be graded over a 6-year period to 6.00% and level thereafter, and contribution levels from retirees were the same as applicable medical cost increases where defined benefits exist. The rate of increase in future compensation levels used in determining the actuarial present value of the accumulated benefit obligation was 5.00% in 1996, 4.50% in 1995 and 5.50% in 1994. A 1.00% increase in the medical inflation rate assumption would have resulted in an approximate increase of $1,231,000 in 1996 and $1,626,000 in 1995 in the accumulated benefit obligation for the Company.
As of December 31, 1996, the Company had revolving credit agreements with certain financial institutions and had an aggregate borrowing facility of $500,000,000. The proceeds of the facility were available to the Company for general corporate purposes, including loans to the Exchanges. Facility fees were payable on the aggregate borrowing facility in the amount of 9 basis points per annum and were reimbursable to the Company by the Exchanges. In the case of a draw on the facility, the Company has the option to borrow at annual rates equal to the prime rate, the banks' certificate of deposit rate plus 1%, the federal funds effective rate plus 1/2 of 1% or the London Interbank Offered Rate ("LIBOR") plus certain percentages. As of December 31, 1996, the Company did not have any outstanding borrowings under the revolving credit agreements. Facility fees were $592,000 for the year ended December 31, 1996 and were reimbursed by the Exchanges. The revolving credit agreements expire in April 2001.
Investment income. Investment income decreased $1.7 million, or 10.9%, and $2.9 million, or 15.7%, in 2012 and 2011, respectively. The decrease in 2012 was primarily due to decreases in average yield. Certain investment gains and losses, which are included in our results of operations in investment and other gains - net, were realized as part of the ongoing management of our investment portfolio for the purpose of improving performance. The decrease in 2011 was primarily due to decreases in yield which were partially offset by a $1.2 million royalty payment.
The year ended December 31, 2011 included charges of $24.6 million (1.6% of title operating revenues) resulting from large title claims relating to policies issued in prior years. These charges were partially offset by insurance recoveries of $2.4 million (0.2% of title operating revenues) on previously recognized title losses. Losses incurred on known claims for the year 2011 decreased 11.3%
Guaranty cannot pay a dividend to its parent in excess of certain limits without the approval of the Texas Insurance Commissioner. As of December 31, 2012, the maximum dividend that could be paid in 2013 after such approval in 2013 is $85.8 million. Guaranty did not pay a dividend in 2012 or 2011. However, the maximum dividend permitted by law is not necessarily indicative of Guaranty’s actual ability to pay dividends, which may be constrained by business and regulatory considerations, such as the impact of dividends on surplus, which could affect its ratings or competitive position, the amount of insurance it can write and its ability to pay future dividends. Further, depending on business and regulatory conditions, we may in the future need to retain cash in Guaranty or even raise cash in the capital markets to contribute to it in order to maintain its ratings or statutory capital position. Such a requirement could be the result of investment losses, reserve charges, adverse operating conditions in the current economic environment or changes in interpretation of statutory accounting requirements by regulators.
The remaining material properties of the Company's former manufacturing operations are listed below. Lease Interior Expiration Location Square Feet Use (if leased) North Adams, MA 154,000 Manufacturing facility Owned Hudson, NH 121,400 Manufacturing facility March 2003 Longwood, FL 60,000 Manufacturing facility Owned North Adams, MA 44,000 R & D facility Owned
The NAIC assigns quality ratings to publicly traded as well as privately placed securities. At December 31, 1995, 95% of AAG's fixed maturity portfolio was comprised of investment grade bonds (NAIC rating of "1" or "2"). Management believes that the high credit quality of AAG's investment portfolio should generate a stable and predictable investment return.
Liabilities and Stockholders' Equity Annuity benefits accumulated $5,052.0 $4,618.1 Life, accident and health benefit reserves 538.3 19.9 Notes payable 167.7 183.3 Payable to affiliates, net 29.1 16.7 Deferred taxes (benefits) on unrealized gains (losses) 48.0 (15.5) Accounts payable, accrued expenses and other liabilities 108.1 63.0 Liabilities related to separate accounts 238.5 - Total liabilities 6,181.7 4,885.5
Earnings (loss) per common share: Continuing operations $1.45 $1.05 $1.41 Discontinued operations (.08) (.07) (.27) Extraordinary items - (.05) (.10) Cumulative effect of accounting change - (.01) - Net income $1.37 $0.92 $1.04
1995 1994 Held to Available Held to Available Maturity for sale Total Maturity for Sale Total Purchases ($280.7) ($826.8) ($1,107.5) ($713.6) ($475.6) ($1,189.2) Maturities and paydowns 50.5 96.6 147.1 54.8 183.4 238.2 Sales 1.4 767.1 768.5 5.6 616.3 621.9 Gross gains 0.8 23.2 24.0 0.8 7.9 8.7 Gross losses (0.6) (8.3) (8.9) (1.0) (9.8) (10.8)
The carrying values of investments in any entity or mortgage-backed security ("MBS") issuer in excess of 10% of stockholders' equity at December 31, 1995, other than investments issued or guaranteed by the U.S. Government or government agencies, consisted of the following fixed maturity investments (in millions):
At December 31, 1995 and 1994, respectively, gross unrealized gains on marketable equity securities were $18.5 million and $11.1 million and gross unrealized losses were zero and $0.1 million. Realized gains and changes in unrealized appreciation on fixed maturity and equity security investments are summarized as follows (in millions):
December 31, 1995 1994 Deferred tax assets: Net operating loss carryforwards $46.7 $47.6 Accrued expenses 13.9 13.3 Investment securities, including affiliate 36.7 31.1 Valuation allowance for deferred tax assets (48.4) (50.6)
(a) As a result of the acquisition of LCC, AAG reclassified certain life insurance revenues and expenses on its consolidated income statement. As a result, reported revenues (and expenses) increased by $400,000, $700,000 and $200,000 in the first, second and third quarters of 1995, respectively; revenues (and expenses) for the first through fourth quarters of 1994 increased by $500,000, $200,000, $600,000 and $200,000, respectively.
FPIC Insurance Group, Inc. ("FIG" or the "Company") is the largest provider of medical professional liability (MPL) insurance in Florida based on the number of physicians and dentists insured. On June 11, 1996 the shareholders of Florida Physicians Insurance Company, Inc. (FPIC) approved the formation of a holding company, FIG, to be the parent company for FPIC, the McCreary Corporation (MCC) and FPIC Insurance Agency, Inc. (the Agency).
In 1996, FPIC experienced the most successful year in the organization's history in terms of growth in the number of insureds. Total number of insureds increased 16.8% to 5,903 and direct premium written increased 13.5% to $64.3 million. This growth was accomplished in spite of increased market pressures, adherence to selective underwriting standards and the effect of managed care organizations on the healthcare industry.
AFC is organized as a holding company with almost all of its operations being conducted by subsidiaries and affiliates. The parent corporation, however, has continuing cash needs for administrative expenses, the payment of principal and interest on borrowings and dividends on AFC Preferred Stock. Therefore, certain analyses are best done on a parent only basis while others are best done on a total enterprise basis. In addition, since many of its businesses are financial in nature, AFC does not prepare its balance sheet using a current-concurrent format. Consequently, certain traditional ratios and financial analysis tests are not meaningful.
The realization of capital gains, primarily through sales of equity securities, was an integral part of AFC's investment program. Individual securities are sold creating gains or losses as market opportunities exist. Pretax capital gains recognized upon disposition of securities, including affiliates, during the past five years have been: 1995 - $57 million; 1994 - - $50 million; 1993 - $165 million; 1992 - $104 million and 1991 - - $38 million. At December 31, 1995, the net unrealized gain on AFC's bonds and redeemable preferred stocks was $330 million; the net unrealized gain on equity securities was $115 million.
1995 1994 1993 Net Written Premiums (GAAP) Specialty Operations $ 882 $ 801 $ 616 Commercial and Personal Operations 717 683 666 Other Lines 1 5 6 Aggregate $1,600 $1,489 $1,288
Combined Ratios (GAAP) Specialty Operations 97.5% 102.1% 97.3% Commercial and Personal Operations 99.1 98.9 101.0 Aggregate 100.2 102.4 103.5
For investment and universal life insurance products, DAC is being amortized with interest over the lives of the policies in relation to the present value of estimated gross profits from projected interest margins, asset fees, cost of insurance charges, administration fees, surrender charges, and net realized investment gains and losses less policy benefits and policy maintenance expenses. The DAC asset related to investment and universal life insurance products is adjusted to reflect the impact of unrealized gains and losses on fixed maturity securities available-for-sale, as described in Note 2(b) to the audited consolidated financial statements included in the F pages of this report.
The assumptions used in the estimation of future gross profits are based on the Company’s current best estimates of future events and are reviewed as part of an annual process during the second quarter. During the annual process, the Company performs a comprehensive study of assumptions, including mortality and persistency studies, maintenance expense studies, and an evaluation of projected general and separate account investment returns. The most significant assumptions that are involved in the estimation of future gross profits include future net separate account investment performance, surrender/lapse rates, interest margins and mortality. Currently, the Company’s long-term assumption for net separate account investment performance is approximately 7% growth per year and varies by product. This assumption, like others, is reviewed as part of the annual process. If this assumption were unlocked, the date of the unlocking could become the anchor date used in the reversion to the mean process (defined below). Variances from the long-term assumption are expected since the majority of the investments in the underlying separate accounts are in equity securities, which strongly correlate with the S&P 500 Index in the aggregate. The reversion to the mean process is based on actual net separate account investment performance from the anchor date to the valuation date. The Company then assumes different performance levels over the next three years such that the separate account mean return measured from the anchor date to the end of the life of the product equals the long-term assumption. The assumed net separate account investment performance used in the DAC models is intended to reflect what is anticipated. However, based on historical returns of the S&P 500 Index, and as part of its pre-set parameters, the Company’s reversion to the mean process generally limits net separate account investment performance to 0-15% during the three-year reversion period. See below for a discussion of current year assumption changes.
When we issue a life reinsurance contract, we establish reserves for future benefits. These reserves are our estimates of what we expect to pay in claims and policy benefits and related expenses under the contract or policy. From time to time, we may change the reserves if our experience leads us to believe that benefit claims and expenses will ultimately be greater than the existing reserve. We report the change in these reserves as an expense during the period when the reserve or additional reserve is established.
In the normal course of business, we acquire in-force blocks of business. The determination of the fair value of the assets acquired and the liabilities assumed
At December 31, 2002 the portfolio controlled by us consisted of $1.1 billion of traded fixed income securities and cash. Of this total $1.0 billion represented the fixed income portfolio managed by external investment managers and $131.0 million represented other cash balances.
Unrealized losses on non-investment grade securities amounted to $3.0 million and $3.8 million at December 31, 2003 and 2002, respectively. Of these amounts non-investment grade securities with unrealized losses of $1.8 million at December 31, 2003 and $1.6 million at December 31, 2002 had been in an unrealized loss position for a period greater than one year and $895,000 at December 31, 2003 and $30,000 at December 31, 2002 had been in an unrealized loss position for periods greater than two years.
Cash provided by operating activities amounted to $88.5 million in 2003 in comparison with cash flow of $9.2 million used in operating activities in 2002. Operating cash flow includes cash inflows from premiums, fees and investment income, and cash outflows for benefits and expenses paid. In periods of growth of new business our operating cash flow may decrease due to first year commissions paid on new business generated. For income recognition purposes these commissions are deferred and amortized over the life of the business.
a) a credit facility totaling $50.0 million, of which $25.0 million is available on an unsecured basis and $25.0 million is available on a secured basis. The facility provides capacity for borrowings and letters of credit. The interest rates on amounts borrowed under the secured facility is LIBOR plus 50 basis points and under the unsecured facility is LIBOR plus 75 basis points. This facility expires in October 2004 but it is renewable upon the agreement of both parties.
o developments in global financial markets that could affect our investment portfolio and fee income;
The following table sets forth certain percentages reflecting financial data and results of operations (a) for 1998, 1997 and 1996 premium and investment revenues and (b) for period to period increases and (decreases).
Effective December 17, 1998, the Company entered into an Administrative Services Agreement with Security National Financial Corporation ("SNFC"). Under the terms of the agreement, SNFC has agreed to provide the Company with certain defined administrative and financial services, including accounting services, financial reports and statements, actuarial, policyholder services, underwriting, data processing, legal, building management, marketing advisory services and investment services. In consideration for the services to be provided by SNFC, the Company shall pay SNFC and administrative services fee of $250,000 per month, provided, however, that such fee shall be reduced to zero for so long as the capital and surplus of the Company is less than or equal to $6,000,000, unless the Company and SNFC otherwise agree in writing and such agreement is approved by the Florida Department of Insurance.
Effective December 17, 1998, 100 percent of the common stock of SSLIC Holding Company, Inc. was acquired by Security National Financial Corporation ("SNFC"). Accordingly, from December 17, 1998, the Company is a 57.4 percent owned, indirect subsidiary of SNFC.
Total income taxes including taxes on the change in the value of investments for the years ended December 31, 1998, 1997, and 1996 were as follows:
Income tax expense (benefit) for the years ended December 31, 1998, 1997 and 1996 differs from "expected" tax (computed by applying the U.S. federal income tax rate to pretax income as a result of the following:
d. the tax deferred status of the Policyholder's Surplus Account is modified by future tax legislation.
the level of historical taxable income and projections for future taxable income over the periods which the deferred tax assets are deductible, management believes it is more likely than not the Company will realize the benefits of these deductible differences, net of the existing valuation allowances at December 31, 1998.
Premiums assumed are recorded net of change in loss experience refund, which consists of changes in amounts due to the cedants under two of our reinsurance contracts. These contracts contain retrospective provisions that adjust premiums in the event losses are minimal or zero. We recognize a liability pro-rata over the period in which the absence of loss experience obligates us to refund premiums under the contracts, and we will derecognize such liability in the period in which a loss experience arises. The change in loss experience refund is negatively correlated to loss and loss adjustment expenses described below.
Loss Experience Refund Payable. As of December 31, 2017, our loss experience refund payable decreased by $1.3 million, or 91%, to $135 thousand, from $1.5 million at December 31, 2016. The decrease is wholly due to the derecognition of the liability as a result of the limit losses incurred under two of reinsurance contracts, which obligates us to refund premiums in the event there were no significant losses during year ended December 31, 2017. Given the limit losses, no refund premiums were due at September 30, 2017, and the balance at year end represents a pro-rated estimate of loss refund that would be payable at May 31, 2019 under one of our contracts, should no future losses be incurred under such contract.
The following table presents a reconciliation of net income to EBITDA and adjusted EBITDA for the years ended December 31, 2016 and 2015 ($ in thousands):
Retrocession Premiums, less cancellations Commissions, less retrocession . . . Losses paid ..........
Losses and LAE increased $13.4 million, or 25%, from $54.0 million in 1997 to $67.4 million in 1998 reflecting, in part, the increase in premiums earned. The GAAP loss ratios were 75.2% in 1998 and 82.5% in 1997. The lower loss ratio in 1998 reflects a change in the mix of business, particularly the group accident and health product, which during 1998 ran at a lower loss ratio than the Company's MPL business. In connection with the Company's review of the liability for losses and LAE, which includes a reevaluation of the adequacy of reserve levels for prior years' claims, the Company reduced its reserves for claims occurring in prior periods by $14.3 million in 1998 and $15.1 million in 1997.
The liability for losses and LAE represents management's best estimate of the ultimate cost of all losses incurred but unpaid and considers prior loss experience, loss trends, the Company's loss retention levels and changes in frequency and severity of claims. Given the inherent uncertainties in the estimation of loss and LAE reserves, there can be no assurance concerning future adjustments, positive or negative, for prior years' claims.
SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," was issued in June 1998, and establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively referred to as derivatives), and for hedging activities. As issued, SFAS No. 133 is effective for all fiscal quarters of all fiscal years beginning after June 15, 1999. SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133," was issued in June 1999 and defers the effective date of SFAS No. 133. SFAS No. 133