felanders/preprocessed huggingface dataset:
as held-for-sale. American National periodically reviews its real estate investments for impairment and tests properties for recoverability whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable and the carrying value of the property exceeds its estimated fair value. Properties whose carrying values are greater than their undiscounted cash flows are written down to their estimated fair value, with the impairment loss included in “Realized investment gains (losses)” in the consolidated statements of operations. Impairment losses are based upon the estimated fair value of real estate, which is generally computed using the present value of expected future cash flows from the real estate discounted at a rate commensurate with the underlying risks as well as other appraisal methods. Real estate acquired upon foreclosure is recorded at the lower of estimated fair value or the carrying value of the mortgage loan at the date of foreclosure.
In general, mortgage loans are secured by first liens on income-producing real estate. The loans are expected to be repaid from the cash flows or proceeds from the sale of real estate. American National generally allows a maximum loan-to-collateral-value ratio of up to 75% on newly funded mortgage loans. As of December 31, 2010, mortgage loans have fixed rates from 5.2% to 12.0%. The majority of the mortgage loan contracts require periodic payments of both principal and interest, and have amortization periods of 6 months to 30 years.
Future policy benefit liabilities for disabled lives are estimated using the present value of benefits method and experience assumptions as to claim terminations, expenses and interest. Interest rates used in establishing such liabilities range from 3.0% to 7.5%.
The primary retiree health benefit plan provides major medical benefits for participants under the age of 65 and Medicare Supplemental benefits for those over 65. Prescription drug benefits are provided to both age groups. The plan is contributory, with American National’s contribution limited to $80 per month for retirees and spouses under the age of 65 and $40 per month for retirees and spouses over the age of 65. All additional contributions necessary, over the amount to be contributed by American National, are to be contributed by the retirees.
In addition to the defined benefit pension plans, American National sponsors one defined contribution plan for all employees excluding those of the Farm Family companies, and an incentive savings plan for employees of the Farm Family companies. The defined contribution plan (401(k) plan) allows employees to contribute up to the maximum allowable amount as determined by the IRS. American National does not contribute to the defined contribution plan. Company contributions are made under the incentive savings plan for the Farm Family companies, with a discretionary portion based on the profits earned by the Farm Family companies. The expense associated with this plan was $1,588,000 for 2010, $1,441,000 for 2009, and $2,795,000 for 2008.
For financial statement purposes, our revenues from the sale of whole life and term life insurance products and annuity contracts with life contingencies are treated differently from our revenues from the sale of annuity contracts without life contingencies, deferred annuities and universal life insurance products. Premiums from the sale of whole or term life insurance products and life contingent annuities are reported as premium income on our financial statements. Premiums from the sale of deferred annuities, universal life insurance products and annuities without life contingencies are not reported as premium revenues, but rather are reported as additions to policyholders’ account balances. For these products, revenues are recognized over time in the form of policy fee income, surrender charges and mortality and other charges deducted from policyholders’ account balances.
Common Stocks: The Company had $555,000 of unrealized losses at December 31, 2006, none of which individually exceeded $500,000 and 10% of book value. Most of these equities have readily available markets, trading on national stock exchanges, including the New York Stock Exchange and NASDAQ.
The downgrades from Moody’s and Standard and Poors did not have a material impact on the financial statements of the Corporation for 2006.
The Insurance Company, in consultation with its actuarial consultant, Milliman, Inc, periodically assesses its overall Swaption portfolio to determine if sufficient protection is provided to cover projected realized losses in the event of a liquidation of assets to satisfy annuity surrenders under the aforementioned 300 basis points increase in interest rates. As part of this process, Presidential may consider purchasing additional Swaptions as well as extending the maturity of its Swaption portfolio by selling the Swaptions maturing in July 2007 and purchasing a July 2010 Swaption to cover future portfolio needs. Future consideration of these transactions or other asset/liability management strategies is dependent upon periodic testing based on updated asset and liability data as of December 31, 2006.
Long-term debt obligations consist of $100 million, 7 7/8% senior notes due February 15, 2009. See Note 3 in Notes to the Unaudited Condensed Consolidated Financials Statements for additional discussion concerning both long-term and short-term obligations.
Liabilities for unpaid policy claims are a sensitive accounting estimate unique to the insurance industry. Management uses an independent actuary to formulate this estimate. Differences in the estimates and actual results may result in revised claims expense which is recognized in the period in which the difference is determined. See Note 1, 7 and 11 to our financial statements for the effect on the year 2007.
At December 31, 2007 the Company had liquid assets of $4,937,983 in cash, T-Bills, 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.
Approximately $599,600 of the bond portfolio is classified as Available for Sale and carried on the Balance Sheet at market value with the unrealized gain or loss recorded in the surplus section of the Balance Sheet. The bonds include auto industry bonds, government agencies and U. S. Treasury Bonds that have unrealized profits. The Company may sell these bonds before they mature.
In 2007, BNLAC paid dividends totaling $1,000,000 to BNLF for the purchase of Company stock and for other general operating funds compared to $1,450,000 dividends paid in 2006 for operating funds and to purchase common stock.
The total estimated future payments to be made relating to Policy Claims Payable do match the balance sheet liability total. The estimated future payments are estimates of future occurrences based on many significant assumptions and are forward looking statements which are to be given the full protection of safe harbor. In developing the Policy Claims Payable, assumptions are made regarding such items as loss ratios, claims per insured or certificate holder per month, completion factors, morbidity trends, speed at which incurred claims are submitted,
Level 2 - Valuations based on observable inputs, other than quoted prices included in Level 1, for assets and liabilities traded in less active dealer or broker markets. Valuations are based on identical or comparable assets and liabilities.
Per the Company’s current policy, a fixed maturity security is other-than-temporarily impaired if the present value of the cash flows expected to be collected is less than the amortized cost of the security or where the Company intends to sell or more likely than not will be required to sell the security before recovery of its value.
On May 12, 2010, the Company’s shareholders approved the Penn Millers Stock Incentive Plan (the Plan). The Plan authorizes the award of incentive stock options, nonqualified stock options, restricted stock and restricted stock units (including performance-based awards) to employees and non-management directors of the Company. According to the Plan, the maximum aggregate number of shares of common stock that may be awarded under the plan is 762,163 shares, subject to certain adjustments. The shares issued pursuant to the Plan may be from authorized but unissued common stock or treasury shares. Upon a change in control, or in the event that a participant terminates employment due to death or disability, the outstanding unvested awards will become fully vested.
At December 31, 2010, the Company had available alternative minimum tax credit carryforwards of $272 that do not expire.
In February 2009, the Company completed the sale of EIG, resulting in a pretax loss on sale of $6. As of December 31, 2009, results of operations from EIG consisted of a loss of $11 before income tax expense of $862.
Net income for 2012 was positively impacted by a revision of assumptions used in determining liabilities for living income benefit riders. This revision was consistent with unlocking for deferred policy acquisition costs and deferred sales inducements. The impact decreased interest sensitive and index product benefits by $2.2 million and increased net income by $1.4 million for the year ended December 31, 2012.
Net OTTI losses recognized in operations decreased to $14.9 million in 2012 and increased to $34.0 million in 2011 from $23.9 million in 2010. The impairments recognized in 2012, 2011 and 2010 were primarily on residential mortgage backed securities and were principally due to changes of assumptions regarding loss severity of a number of securities we hold which affected our ongoing analysis of expected cash flow projections. See Financial Condition-Investments for additional discussion of write downs of securities for other than temporary impairments.
See Net income and Operating income (a non-GAAP financial measure) above for discussion of the impact of unlocking on amortization of deferred sales inducements for the years ended December 31, 2012, 2011 and 2010. See Critical Accounting Policies - Deferred Policy Acquisition Costs and Deferred Sales Inducements.
Other operating costs and expenses net of litigation settlements and the change in accounting are primarily affected by increases in salaries and benefits, marketing expenses and general operating expenses due to the growth of our business as well as the fluctuation in legal expense for the cost of defense of on-going litigation. Other operating costs and expenses excluding the litigation settlement and change in accounting discussed previously increased 2% to $68.9 million in 2012 and 1% to $67.5 million in 2011.
our investment portfolio a source of regular cash flow and higher yielding assets than our agency securities. Beginning in 2009, we have acquired a portfolio of taxable bonds issued by municipalities, states and territories of the United States that provide us with attractive yields while being consistent with our aversion to credit risk. In 2012, we have increased our position in other asset backed securities as well as establishing a position in commercial mortgage backed securities.
December 31, 2013. Based on data received from the ceding companies (the insurance companies whose policies we reinsure) our independent actuary produces a range of estimates with a “low,” “central” and “high” estimate of the loss and loss adjustment expenses. As of December 31, 2013, the range of actuarially determined liability for loss and loss adjustment expense reserves was as follows: the low estimate was $2.1 million, the high estimate was $3.0 million, and the central estimate was $2.4 million. We selected reserves of $2,720,286 as of December 31, 2013, which is between the central estimate and high estimate of our independent actuary. Due to our concerns about the severity and volatility of the type of business we reinsure and the length of time that it takes for claims to be reported and ultimately settled, our management’s policy has been to reserve conservatively, between the actuarial central estimate and high estimate.
For the years ended December 31, 2013 and 2012, we recorded commission income under the Agency Agreement of $1,376,622 and $855,597, respectively, an increase of $521,025 or 60.9%. This increase resulted from a higher volume of premiums written under the Agency Agreement in 2013.
For the year ended December 31, 2013, we recorded loss and loss adjustment expenses of $1,945,857, derived by (1) multiplying a loss ratio of 62.5% and the net premiums earned under the Reinsurance Agreement of $2,063,277 and (2) unfavorable development in the CAMICO book of business of $656,309. For the year ended December 31, 2012, we recorded loss and loss adjustment expenses of $711,124, derived by multiplying a loss ratio of 57.9% and the net premiums earned under the Reinsurance Agreement of $1,231,436, partially offset by favorable development on PDIC.
We recorded policy acquisition costs of $763,423 for the year ended December 31, 2013 compared to policy acquisition costs of $456,953 for the year ended December 31, 2012. Policy acquisition costs, which are primarily ceding commissions paid to the ceding insurer, are established as a percentage of premiums written; therefore, any increase or decrease in premiums written will result in a similar increase or decrease in policy acquisition costs. The policy acquisition costs recorded for the year ended December 31, 2013 were approximately 37% of the premiums earned under the Reinsurance Agreement of $2,063,277. The policy acquisition costs recorded for the year ended December 31, 2012 were approximately 37% of the premiums
of its cash, cash equivalents, short term investments and fixed maturity investments available for sale in an unrealized gain position, and other relevant factors. For the year ended December 31, 2013, the Company did not recognize any other-than-temporary impairments due to required sales.
The assumed reinsurance balances receivable represents the current assumed premiums receivable less commissions payable to the fronting carriers. As of December 31, 2013, the balance was $468,438 compared to $274,526 as of December 31, 2012. The increase resulted from a higher level of premiums assumed under the Reinsurance Agreement during 2013.
The aggregate purchase price for the United Acquisition was approximately $7,076,000 (including net costs associated with the acquisition of approximately $445,000). In conjunction with the acquisition, the seller retained approximately $2,100,000 of United Liberty's real estate related and other assets, which were replaced with cash by Citizens Security.
changes in the Federal income tax laws and regulations which may affect the relative tax advantages of some of the Company's products.
On May 12, 1998 the Company acquired 100% of the common stock of United Liberty from an unaffiliated insurance holding company (the "United Acquisition"). The aggregate purchase price for the United Acquisition was approximately $7,076,000 (including net costs associated with the acquisition of approximately $445,000). In conjunction with the acquisition, the seller retained approximately $2,100,000 of United Liberty's real estate related and other assets, which were replaced with cash by Citizens Security. This acquisition was financed with available internal funds and approximately $3,400,000 of additional bank borrowings under a Term Loan Agreement. The Term Loan Agreement included refinancing of debt relating to a prior acquisition.
Cash and Cash Equivalents: The carrying amount of cash and cash equivalents approximates their fair value. At December 31, 2000 and 1999, the fair value of cash and cash equivalents was $20,093,774 and $18,696,401, respectively.
During 1997, the Company adopted a 401(k) savings plan for its full-time employees. The Company contributes matching contributions at the discretion its Board of Directors. Company expense associated with this plan totaled $46,353, $34,860, and $24,337 in 2000, 1999 and 1998, respectively.
Liabilities: Note payable to bank $ 8,000,000 $ 8,500,000 Intercompany payable* 137,382 --- Current and deferred federal income tax 169,559 1,127,820 Other liabilities 546,119 948,113 - ------------------------------------------------------------------------------ Total Liabilities 8,853,060 10,575,933
Schedule II - Condensed Financial Information of Registrant Citizens Financial Corporation (Parent Company Only) Condensed Statements of Cash Flows
Located on the same 15 acre campus is Corporate 2, a 19,000 square foot building which is used by two branch offices of our subsidiary, RLI Insurance Company, and a supporting department to one of the branches.
The Company's net product sales increased by $4,295,000, or 17%, to $30,018,000 for the year ended December 31, 1998 compared to $25,723,000 for the year ended December 31, 1996. The increase in net product sales was primarily attributable to increased demand for Pumpkin's new carving kits and related accessories; Halloween falling on a Saturday also had a positive impact on product sales. The Company's cost of goods sold increased by $2,137,000, or 17%, primarily due to increased sales and development costs associated with new product sales.
Land and improvements .................... $ 370 $ 370 Buildings and improvements ............... 909 828 Machinery and equipment .................. 681 515 Furniture and fixtures ................... 299 104 -------- -------- 2,259 1,817
Goodwill ................................. $ 31,141 $ 12,164 Patents .................................. 1,033 960 Deferred financing costs ................. 1,403 881 Franchise agreements ..................... 8,750 -- Curriculum ............................... 250 -- Non-compete agreement .................... 89 -- -------- -------- 42,666 14,005
Possible Dreams' agreement is a $10,000 line of credit, under which borrowing capacity is limited to a defined borrowing base, of which $750 and $1,000 was borrowed at December 31, 1999 and 1998, respectively, at the commercial paper rate of interest plus 4% (9.52% at December 31, 1999). Additional borrowing capacity at December 31, 1999 was $ 2,750. The agreement expires in 2003.
Possible Dreams - Options to acquire 175 shares of Possible Dreams at approximately $1,900 per share were granted in 1996, of which 88 and 175 were outstanding at December 31, 1999 and 1998, respectively. Such options expire in 2006. The Company, but not the holder, has the right to settle the options in cash. In addition, warrants to purchase 250 shares of Possible Dreams Class B common shares were issued in 1996 and remain outstanding at December 31, 1999. The warrants are exercisable at the earlier of (1) May 17, 2001 or (2) repayment in full of the acquisition note and any related interest, at price of $.01 per share and expire in 2006. Such Class B common shares would be non-voting, but would be convertible at the option of the holder into Class A voting common shares. The holder may exercise the warrants for cash. If all such outstanding options and warrants had been exercised for Possible Dream's shares at December 31, 1999, the Company's ownership share of Possible Dreams would have been 76%.
123 224 413 ----- ----- ----- Deferred: Federal ................. (872) (665) (655) State ................... (19) 6 (43) ----- ----- -----
As of December 31, 2015, our total investments were $22,394,031, an increase of $1,453.524 or 6.9%, from $20,940,507 at December 31, 2014. This was primarily due to the increase in the fair value of certain equity securities as a result of favorable market conditions and to the purchase of equity securities and fixed income securities with net
actuarial projections, which together represent an estimate of the ultimate net cost of all unpaid losses and LAE incurred through December 31 of each year. These estimates are subject to the effect of trends in future claim severity and frequency. The estimates are continually reviewed and, as experience develops and new information becomes known, the liability is adjusted as appropriate, and reflected in current financial reports. The anticipated effect of inflation is implicitly considered when estimating liabilities for losses and LAE. Future average severity is projected based on historical trends adjusted for anticipated changes in underwriting standards, policy provisions and general economic trends. These anticipated trends are monitored based on actual developments and are modified as necessary.
An actuarial review and projection was performed for us by our independent actuary as of December 31, 2015. We review the actuarial estimates throughout the year for the possible impact on our financial position. Loss reserves relate only to accountants’ and attorneys’ professional liability from CAMICO and Crum & Forster (“C&F”) programs, and were calculated under the methodologies described below. During 2015, losses emerged at levels consistent with expectations in total for both CAMICO and C&F business.
Earnings from continuing operations before income taxes were $6.8 million and $8.0 million for the fiscal years ended June 30, 2004 and 2003, respectively. Such decrease in earnings from continuing operations of $1.2 million is principally due to the fiscal 2002 contractual risk agreement discussed above.
Cash and marketable securities increased by $4.8 million at June 30, 2005 compared to June 30, 2004 due primarily to operating activities.
The worldwide reinsurance and insurance businesses are highly competitive, as well as cyclical by product and market. As a result, financial results tend to fluctuate with periods of constrained availability, high rates and strong profits followed by periods of abundant capacity, low rates and constrained profitability. Competition in the types of reinsurance and insurance business that we underwrite is based on many factors, including the perceived overall financial strength of the reinsurer or insurer, ratings of the reinsurer or insurer by A.M. Best and/or Standard & Poor’s, underwriting expertise, the jurisdictions where the reinsurer or insurer is licensed or otherwise authorized, capacity and coverages offered, premiums charged, other terms and conditions of the reinsurance and insurance business offered, services offered, speed of claims payment and reputation and experience in lines written. Furthermore, the market impact from these competitive factors related to reinsurance and insurance is generally not consistent across lines of business, domestic and international geographical areas and distribution channels.
Other (Expense) Income. For 2007 and 2006 we recorded other expense of $73.6 million and $40.5 million, respectively, and for 2005 other income of $10.3 million. The fluctuations in net other (expense) income in 2007 and 2006 were primarily due to increased deferrals on retroactive reinsurance agreements with affiliates.
Incurred losses and LAE decreased by 4.5% to $412.7 million for 2007 from $432.2 million for 2006 as the segment loss ratio increased by 7.9 points to 83.2%. From a ratio perspective, the swing in prior years’ development from favorable in 2006 to adverse in 2007 resulted in 18.9 points of increase.
Incurred losses and LAE decreased by 5.5% to $118.3 million for 2007 compared to $125.2 million for 2006. The loss ratio for the current accident year was lower by 5.0 points in 2007 compared to 2006. We experienced 6.9 points of adverse development in 2007 compared to 8.9 points in 2006. Catastrophe loss development, principally within the marine business related to the 2005 hurricanes, was the driver of the overall development in both 2007 and 2006.
Benefits and claims incurred expenses increased 3% in 1997 to $210,776,366 in 1997 from $203,677,232 in 1996. The incurred loss ratio was 81.4% for 1997 compared to 78.9% for 1996. The major reasons for the increase in the claims loss ratio and the level of claims incurred are (a) the continued effect of an underpriced product sold heavily in 1995, (b) a larger number of unexpected and unanticipated prior year claims (1996) paid in 1997, resulting in a 1996 reserve deficiency of approximately $7 million, (c) larger number of annuity policies lapsed than anticipated, (d) a run off in claims due to rate renewal actions and (e) a reserve strengthening in the fourth quarter of 1997. With the combination of the reserve strengthening, rate renewal actions and benefit changes, the Company anticipates a lower loss ratio in future years.
Columbus, Ohio February 20, 1998, except for Notes 1(b) and 7, as to which the date is March 30, 1998.
The Company executed a note payable, in December 1990, for $9,000,000 bearing interest at 9 1/2% per annum for 10 years. The Company received $8,500,000 of the funds in December 1990 and the remaining $500,000 in December 1991. The mortgage note is collateralized by the home office building and by an assignment of the tenant lease for the building. The Company has been required to make monthly payments, since January 1991, based on a 30 year amortization schedule, of $75,677 for 10 years. After five years, the Company has the right to prepay the loan with a 3% prepayment fee. Principal payments due in the next four years, assuming no prepayments, are $115,145 in 1998, $126,572 in 1999, $139,134 in 2000 and $24,496 in 2001, the year the note is due.
$4.0 million of net unrealized losses relating to changes in fair value of equity securities investments (which were being recorded to other comprehensive income prior to the adoption of a new accounting standard in 2018),
Industry data. Published mortgage interest rates and other selected residential housing data for the years ended December 31, 2018, 2017 and 2016 are shown below (amounts shown for 2018 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®, the Mortgage Bankers Association and Freddie Mac.
Revenues from direct title operations in 2017 decreased $31.9 million, or 4%, compared to 2016, primarily as a result of overall declines in refinancing and purchase transaction revenues, partially offset by higher commercial and international revenues. Revenues from purchase transactions and centralized title operations decreased 7% and 26%, respectively, primarily as a result of lower purchase and refinancing orders closed. Total commercial revenues improved $18.3 million, or 9%, primarily driven by a higher domestic commercial fee per file and increased input from our international operations. Total international revenues improved $12.6 million, or 11%, due to higher commercial revenues and transaction volume growth from our United Kingdom and Canada operations.
Investment income. Investment income for 2018 slightly increased to $19.7 million from $18.9 million in 2017, primarily due to increased income on higher short-term investments and cash equivalents balances. Investment income for 2017 was $18.9 million, which was comparable to 2016. Refer to Note 6 to our audited consolidated financial statements for additional details.
Net income per common share is calculated upon the weighted average number of common shares outstanding during the relevant year. The weighted average number of shares includes common shares and the dilutive effect of the AIG Option and employee stock options, using the treasury stock method. The net (loss) per common share for the year ended December 31, 2001 is calculated on the weighted average number of shares outstanding during the year, excluding the dilutive effect of the AIG Option and employee stock options,.
Basic book value per common share is calculated on the number of common shares outstanding on the balance sheet date.
Information as to management's analysis of financial condition and results of operations is incorporated herein by reference to the materials under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's 2001 Annual Report to Shareholders.
Gryphon Holdings Inc. operates through its main subsidiary, Gryphon Insurance Group Inc., as a specialty property and casualty underwriting organization. The Company's wholly owned insurance company subsidiaries are Associated International Insurance Company ("Associated") and Calvert Insurance Company ("Calvert"), which operate in the property and casualty insurance industry. Associated writes the majority of its property and casualty insurance policies in the State of California. Calvert writes property and casualty insurance policies throughout the United States and Canada.
The components of the net deferred income tax asset are as follows:
Year ending December 31, Principal Amount (Dollars in thousands) 1998 $ 3,625 1999 4,125 2000 4,625 2001 5,000 2002 3,750 Total $21,125
A reconciliation of the two insurance subsidiaries' net income and stockholders' equity for each of the years in the three years ended December 31, 1997 and as of December 31, 1997 and 1996, as reported to the various regulatory authorities in accordance with SAP, to the related GAAP amounts included in the accompanying consolidated financial statements is as follows:
A summary of stock option activity as of December 31, 1997, follows:
(1) During the initial phase-in period of SFAS No. 123, the effects of applying the standard for either recognizing compensation cost or providing pro forma disclosures are not likely to be representative of the effects on reported net income for future years, based on the fact that options vest over several years and additional awards generally are made each year.
more comprehensive measure of operating performance. Management believes that its process of evaluating performance through the use of these non-GAAP financial measures provides a basis for enhanced understanding of its operating performance and the impact to net income as a whole. Management also believes that investors may find these widely used financial measures described above useful in interpreting the underlying trends and performance, as well as to provide visibility into the significant components of net income.
Under the terms of the Quota Share Treaty, CCC has guaranteed the loss and loss adjustment expense reserves transferred to Western Surety as of September 30, 1997 by agreeing to pay Western Surety, within 30 days following the end of each calendar quarter, the amount of any adverse development on such reserves, as re-estimated as of the end of such calendar quarter. There was not any adverse reserve development for the period from September 30, 1997 (date of inception) through December 31, 2003.
Debt -- The estimated fair value of the Company's debt is based on the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturity.
The Company's post-retirement sick leave plan is unfunded; the accumulated post-retirement benefit obligation and plan assets for that plan are $0.6 million and $0, respectively.
The health care cost trend rate assumption has an effect on the amounts reported. To illustrate, increasing the assumed health care cost trend rates by 1 percentage point in each year would increase the benefit obligation as of December 31, 2003 by $1.0 million and increase the aggregate of service cost and interest cost for the year then ended by $0.1 million. Decreasing the assumed health care cost trend rates by 1 percentage point in each year would decrease the benefit obligation as of December 31, 2003 by $0.8 million and decrease the aggregate of service cost and interest cost for the year then ended by $0.1 million.
the Plan expire ten years after the date of grant and in the case of the Replacement Plan the options expire ten years from the original Capsure grant date.
Twelve Months 2017 net earned premiums, fees and other income increased $9.7 million to $181.0 million compared with Twelve Months 2016 primarily due to growth in preneed business and favorable foreign exchange.
Ultimate loss and loss adjustment expenses are estimated utilizing generally accepted actuarial loss reserving methods. Both paid claims development as well as case incurred development are typically analyzed at the product or product grouping level, considering product size and data credibility. The reserving methods widely employed within the Company include the Chain Ladder, Munich Chain Ladder and Bornhuetter-Ferguson. For Global Housing, reportable catastrophes are analyzed and reserved for separately using a frequency and severity approach.
We regularly monitor our investment portfolio to ensure investments that may be other-than-temporarily impaired are timely identified, properly valued, and charged against earnings in the proper period. The determination that a security has incurred an other-than-temporary decline in value requires the judgment of management. Assessment factors include, but are not limited to, the length of time and the extent to which the market value has been less than cost, the financial condition and rating of the issuer, whether any collateral is held, the intent and ability of the Company to retain the investment for a period of time sufficient to allow for recovery for equity securities and the intent to sell or whether it is more likely than not that the Company will be required to sell for fixed maturity securities. Inherently, there are risks and uncertainties involved in making these judgments. Changes in circumstances and critical assumptions such as a continued weak economy, a more pronounced economic downturn or unforeseen events which affect one or more companies, industry sectors, or countries could result in additional impairments in future periods for other-than-temporary declines in value.
On April 14, 1999, Professionals Group's Board of Directors authorized management to repurchase up to 400,000 shares of the Company's common stock. On December 11, 1999, the Board of Directors approved an increase in the number of shares available to be repurchased to 440,000 shares. This increase was approved to reflect the additional shares outstanding due to the 10% stock dividend declared on November 15, 1999. The Board also extended the stock repurchase program from April 28, 2000 to September 30, 2000. The Company repurchased 239,648 shares under this plan at a total cost of $6.5 million during 1999.
Premiums and discounts are amortized or accreted, respectively, over the life of the related debt security as an adjustment to yield using the yield-to-maturity method. Dividends and interest income are recognized
Other comprehensive income consists solely of unrealized gains or losses on the Company's available for sale securities.
At December 31, 1999, U.S. Treasury notes and certificates of deposit with a carrying value of $5,588,000 were on deposit with regulatory authorities, as required by law.
From July 1, 1997 through June 30, 1999, ProNational assumed, on a quota-share basis, 40% of MEEMIC's net business. In connection with the acquisition of MEEMIC Holdings (see note 4), this quota share reinsurance agreement was cancelled on June 30, 1999.
Professionals Group and its subsidiaries currently maintain several defined contribution employee benefit plans, stock purchase plans and incentive plans, all of which cover substantially all employees of the respective subsidiaries meeting certain eligibility requirements. The Company's contributions to these plans are primarily based on various percentages of compensation, and in some instances are based upon the amount of the employees' contributions to the plans. The Company's expense under all benefit plans was $2,193,000, $1,541,000 and $1,066,000 in 1999, 1998 and 1997, respectively.
MEEMIC Holdings has established a stock compensation plan (the "MEEMIC Plan") under which 300,000 shares of MEEMIC Holdings' common stock are available to provide performance-based compensation to officers, directors and employees of MEEMIC Holdings and its subsidiaries. All terms and conditions of any grants under the MEEMIC Plan are at the discretion of the Compensation Committee of MEEMIC Holdings' board of directors. Currently, all options have been granted at the market price of MEEMIC PROFESSIONALS GROUP, INC. AND SUBSIDIARIES
SFAS No. 107, Disclosures About Fair Value of Financial Instruments, requires disclosures of fair-value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate the value. In situations where quoted market prices are not available, fair values are to be based on estimates using present value or other valuation techniques. SFAS No. 107 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.
On December 14, 1995 the Supreme Court of the State of California affirmed the decision of the Second District Court of Appeal overturning Insurance Code Section 1861.135 which exempted the surety insurance industry from major provisions of proposition 103. Accordingly the Company is no longer exempted from the rate rollback and prior approval provisions contained in Proposition 103. The Company accrued $2,000,000 during the quarter ended December 31, 1995. On August 15, 1996, the Company entered into a Stipulation and Consent Order with the Insurance Commissioner of the State of California which required the Company's insurance subsidiaries to pay $1,928,370. The Proposition 103 refund checks were issued in January 1997.
On January 28, 2003 the industrial property located in Salt Lake City, Utah was sold for a realized gain of $0.5 million.
Dividend income from real estate investment trusts decreased approximately $2.2 million, or 100.0%, during the twelve months of 2002 compared to the corresponding period in 2001. These decreases were due to the Partnership's liquidation of its investment in REIT stocks during the fourth quarter of 2001.
AmerInst has two operating segments: 1) reinsurance activity, which includes investments and other activities, and 2) insurance activity, which offers professional liability solutions to professional service firms under the Agency Agreement with C&F. See Note 12, Segment Information, of the notes to the consolidated financial statements contained in Item 12 of this annual report on Form 10-K for financial information concerning these segments.
We expensed operating and management expenses of $4,091,078 for the year ended December 31, 2010 compared to $2,744,039 for the year ended December 31, 2009, an increase of $1,347,039 or 49.1%. The primary reason for this increase is the increased expenses incurred by APSL, which commenced operations in late 2009 following the execution of its Agency Agreement with C&F effective September 25, 2009.
For purposes of the statements of cash flows, AmerInst considers all money market funds and highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.
* The Company’s equity securities are managed by an external large cap value advisor. Our investment approach is to focus on increasing the fair market value of our equity securities by investing in companies that may or may not be paying a dividend but whose market values may increase over time. Some of the key factors we consider in a prospective company to invest in include the discount to value and the quality of the management team.
LOSSES AND LAE Losses and LAE increased $8.8 million, or 7.2%, to $132.2 million in 1998 from $123.4 million in 1997. As a percentage of premiums earned, losses and LAE decreased to 83.7% in 1998 from 92.2% for the same period in 1997. For 1998, the Company reduced loss and LAE reserves incurred in prior policy years approximately $93.8 million as compared to a reserve reduction of $53.2 million for 1997 for claims incurred in prior policy years. The redundancies recognized in 1998 were offset, in part, by a $28.1 million increase in the loss and LAE reserves for the medical malpractice insurance business assumed from Fremont in January 1998. The strengthening of those reserves was made in order to bring those reserves in line with the Company's more conservative reserving policy.
in 1998 from 13.4% in 1997. This increase is due primarily to certain one-time charges and the amortization of non-recurring costs related to the acquisition of the Fremont business. Additionally, other operating expenses include higher commission expenses associated with the greater percentage of business written through brokers in 1998 and general personnel increases necessary to produce and service the higher 1998 premium volume.
Year 2000 costs incurred were $1,018,000 and $734,000 in 1998 and 1997, respectively and are currently estimated to be $101,000 in 1999 for a total of $1,853,000. A large majority of these costs are expected to be incremental expenses that will not recur in the Year 2000 or thereafter. The Company expenses these costs as incurred and funds these costs through operating cash flows.
Incidental to the corporate and executive benefits services provided to their customers, some of our firms offer property and casualty insurance brokerage and advisory services. We earn commissions and fees in connection with these services.
On November 20, 2003, our Board of Directors declared its first quarterly cash dividend of $0.10 per share of common stock, or $3.1 million, which was paid to shareholders on January 7, 2004. Our dividend policy is determined by the Board of Directors. Dividends are declared after the Board of Directors considers our current available cash and cash equivalents and cash flow projections, which include earnings projections and anticipated cash payments for such items as funding operations, new acquisitions and capital spending. There can be no assurance that dividends will be paid in the future. Based on the most recent quarterly dividend declared of $0.10 per share of common stock, the total annual cash requirement for dividend payments would be approximately $13.0 million.
At December 31, 2003, future minimum rentals for operating leases (which are subject to escalation clauses) primarily consisted of real estate and equipment leases that had initial or uncancelable lease terms in excess of one year and were payable as follows:
On October 2, 1995, the Company and its parent, TIGI, sold their interests in MetraHealth to United. The Company and TIGI collectively owned 48.25% of MetraHealth's common stock, and received a total of $831 million in connection with the transaction. This amount includes a dividend paid by MetraHealth and amounts paid by a subsidiary of MetLife for the sale to MetLife of the Company and TIGI's share of certain additional amounts payable under the merger agreement based on 1996 and 1997 earnings. The Company and TIGI are also entitled to receive up to an additional $169 million, based on "Company Earnings" (as defined in the merger agreement) for 1995. The Company's share of the proceeds was $708 million, and it is entitled to receive up to an additional $144 million, based on 1995 Company Earnings. The sale generated an after-tax gain of $111 million which was recognized in the fourth quarter of 1995.
As discussed in Note 4 of Notes to Condensed Consolidated Financial Statements, all of the businesses sold to MetLife or contributed to MetraHealth were included in MCEBO. MCEBO marketed group life and health insurance, managed health care programs and administrative services associated with employee benefit plans. In 1995, the Company's results reflect the medical insurance business not yet transferred, plus its equity interest in the earnings of MetraHealth. These operations have been accounted for as discontinued operations.
The Company uses exchange traded financial futures contracts to manage its exposure to changes in interest rates which arises from the sale of certain insurance and investment products. To hedge against adverse changes in interest rates, the Company enters short positions in financial futures contracts which offset asset price changes resulting from changes in market interest rates until an investment is purchased.
Certain subsidiaries of TIHI participate in a noncontributory defined benefit plan sponsored by their ultimate parent, Travelers.
The Company markets individual annuity products through The Copeland Companies, a subsidiary of TIGI. Deposits related to these products were $684 million, $635 million and $581 million in 1995, 1994 and 1993, respectively.
The "policyholders surplus account", which arose under prior tax law, is generally that portion of the gain from operations that has not been subjected to tax, plus certain deductions. The balance of this account, which, under provisions of the Tax Reform Act of 1984, will not increase after 1983, is estimated to be $932 million. This amount has not been subjected to current income taxes but, under certain conditions that management considers to be remote, may become subject to income taxes in future years. At current rates, the maximum amount of such tax (for which no provision has been made in the financial statements) would be approximately $326 million.
17. RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
The Company leases office space at eighteen locations in 12 states at an aggregate monthly rental of approximately $205,000.
Following the Company's November 5, 1994 announcement of its third-quarter financial results, the Company was served with seven purported class actions alleging violations of federal securities laws by the Company and, in some cases, by certain of its officers and directors. In September 1995, a pre-trial order was signed which consolidated all actions in the Eastern District of New York, appointed three law firms as co-lead counsel for the plaintiffs and set forth a timetable for class certification motion practice and discovery. In November 1995, plaintiffs served a consolidated amended complaint alleging violations by the Company of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10(b)(5) thereunder, seeking to impose controlling person liability on certain of the Company's officers and directors, and further alleging insider sales all premised on negative financial information that allegedly should have been publicly disclosed earlier. Plaintiffs seek an unspecified amount in damages to be proven at trial, reasonable attorneys fees' and expert witness costs. In April 1997, the Court certified the class. Plaintiffs have subpoenaed documents and deposed outside auditors and analysts. Plaintiffs have also taken depositions from current or former officers, directors and employees of the Company. The Company believes the suit is without merit, has retained special legal counsel to contest this suit vigorously and believes that the Company's exposure to liability, if any, thereunder would not have a material adverse effect on the Company's financial condition.
The Company's principal executive offices are located in Wayne, Pennsylvania. It leases approximately 4,100 square feet of office space at 640 Lee Road, Suite 303, Wayne, Pennsylvania. The aggregate monthly rental is approximately $8,600.
The 1993 net income of $8.2 million, or $1.05 per share, compares favorably to 1992 net income of $6.7 million, or $0.80 per share. The improvement in net income was due primarily to increased realized capital gains on investments, as well as the Company's successful implementation of expense reduction programs.
The increase in net income for 1992 as compared to 1991 of $1.3 million was due to higher investment income and lower death and health claims experience which offset the lower levels of realized investment gains. General and administrative expenses were stable in 1992 as compared to 1991 with increased net selling expenses due primarily to the continued investment in the Company's pre-need life insurance market.