felanders/preprocessed huggingface dataset:
benefits for the sold and closed facilities during the year ended December 31, 2000 included severance costs associated with the closure of two facilities of $2.6 million. Salaries and benefits for ongoing operations decreased to 40.2% as a percentage of revenue in the year ended December 31, 2000 compared to 40.6% in the year ended December 31, 1999. Salaries and benefits decreased due to $2.8 million from a favorable adjustment relating to Triad's retirement plan contributions during the year ended December 31, 2000 and increases in labor productivity. These decreases were partially offset by a 1.4% increase in costs per full time equivalent in the year ended December 31, 2000 compared to the year ended December 31, 1999 and the addition of corporate staff after the distribution. Salaries and benefits for ongoing operations included $7.0 million from the acquisition of two facilities in the fourth quarter of 2000.
The further expansion in the volume of our business and the possibility of major losses which this involves have led us to reinforce the Fund for Extraordinary Losses, which has been increased from Sw. Fes. 15 million to Sw. Fes. 20 million.
Common Shares of Public Utility, Industrial, Railway and other Companies 87,469,000 86,929,000
Management expenses were slightly higher whereas the ratio to premium income once again dropped by a small degree. The incidence of taxes has scarcely changed com­ pared to the previous year. Under depreciation we include amounts written off and fluctuations in foreign currencies and Stock Exchange rates; the loss in 1958 was smaller than in 1957 and was chiefly derived from the amounts written off on fixed-interest securities in the United States and Canada.
Mr. P. Keller was elected by the Board of Directors to suc­ ceed him as Chairman of the Board.
SwissRe Advisers Ltd. Great China House, 8 Queen's Road Central, Hongkong
against unforeseen, and therefore less predictable, future events. A provision is made for estimated future claim payments at the time revenue is recognized. Both the Company's experience and industry data indicate that claims activity occurs for more than 20 years after the policy is issued. Management uses actuarial techniques to estimate future claims by analyzing past claim payment patterns. Independent actuaries review the adequacy of reserves on an interim basis and certify as to their adequacy on an annual basis. Management has continued to emphasize and strengthen claims prevention and product quality programs.
In connection with the title insurance industry in general, factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include the following: (i) the costs of producing title evidence are relatively high, whereas premium revenues are subject to regulatory and competitive restraints; (ii) real estate activity levels have historically been cyclical and are influenced by such factors as interest rates and the condition of the overall economy; (iii) the value of the Company's investment portfolio is subject to fluctuation based on similar factors; (iv) the title insurance industry may be exposed to substantial claims by large classes of claimants and (v) the industry is regulated by state laws that require the maintenance of minimum levels of capital and surplus and that restrict the amount of dividends that may be paid by the Company's insurance subsidiaries without prior regulatory approval.
Government contracts revenues increased by $285.6 million, or 14%, for the year ended December 31, 2005 as compared to the same period in 2004. The increase in Government Contracts revenues was primarily due to an increase in health care services provided under our TRICARE contract for the North Region resulting from a rise in demand for private sector services as a direct result of continued heightened military activity.
Government contracts costs increased by $283.7 million or 15% for the year ended December 31, 2005 as compared to the same period in 2004, primarily due to higher costs under the TRICARE contract for the North Region resulting from a rise in demand for private sector services as a direct result of continued heightened military activity.
We recorded a $3.0 million pretax impairment on internally developed software and purchased computer hardware that were rendered obsolete as a result of changes to our operations and systems consolidation process. We also recorded a pretax $2.9 million impairment on investments in other companies in the fourth quarter of 2004.
We received $497 million net proceeds under our bridge and term loan agreements in June 2006 of which $465 million was used to redeem our Senior Notes in August 2006 and settle our Swap Contracts in September 2006. See “-Capital Structure-Bridge Loan Agreement and-Term Loan Agreement” below.
On June 23, 2006, we entered into a First Supplemental Indenture (the Supplemental Indenture), which amended and supplemented the Senior Notes Indenture. The Supplemental Indenture, among other things, authorized the Trustee to enter into a Security and Control Agreement by and among us and the Trustee for the registered holders of our Senior Notes, and U.S. Bank National Association, as securities intermediary, for the purpose of securing and facilitating the redemption of our Senior Notes.
On June 30, 2005, we entered into the Lease Agreement in connection with a sale-leaseback transaction involving certain of our assets. See Note 12 to the consolidated financial statements for additional information regarding the sale-leaseback transaction.
compared to the increase in net written premiums is primarily due to a higher utilization of reinsurance related to the new quota share contracts. Premiums earned increased by 8.7% to $5,169.1 million in 2014, compared to $4,753.5 million in 2013. The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Commission and brokerage expenses increased by 4.6% to $366.9 million in 2013 compared to $350.6 million in 2012. The year over year change was primarily due to the impact of the increase in premiums earned, partially offset by the impact of the termination of the large Florida quota share reinsurance contract in second quarter 2012 as well as the adoption of new accounting standards concerning the accounting for acquisition costs, which increased expenses in 2012. Segment other underwriting expenses increased to $47.2 million in 2013 from $44.8 million in 2012, primarily due to increased compensation expenses and higher premiums earned.
Incurred losses and LAE decreased by 3.4% to $361.8 million in 2014 compared to $374.4 million in 2013 primarily due to a $35.2 million decrease in current year catastrophe losses, partially offset by $14.9 million of less favorable prior years’ attritional losses and $13.3 million of less favorable prior year catastrophe development in 2014 compared to 2013, which mainly related to the 2011 Japan earthquake. The $0.3 million of current year catastrophe losses in 2014 primarily related to Hurricane Odile. The $35.5 million of current year catastrophe losses in 2013 were due to the German hailstorms ($20.5 million) and the European floods ($15.0 million).
Incurred losses and LAE decreased by 12.9% to $811.4 million in 2014 compared to $931.5 million in 2013, mainly due to a decrease of $107.0 million in prior years’ attritional losses, which was mainly related to development on workers’ compensation, construction liability and umbrella business in 2013 which did not recur to the same extent in 2014. There were no current year catastrophe losses in 2014. The $2.3 million of current year catastrophe losses for 2013 were due to Canadian floods.
Incurred losses and LAE increased to $30.6 million in 2014 compared to $4.4 million in 2013, mainly due to the increase in current year attritional losses of $21.4 million, resulting from the impact of the increase in premiums earned, and an increase in current year catastrophes of $5.1 million. The $6.1 million of current year catastrophe losses in 2014 were mainly due to the Japan snowstorm ($3.7 million), Hurricane Odile ($1.6 million) and the Chilean earthquake ($0.8 million). The $1.0 million of current year catastrophe losses in 2013 were due to Typhoon Fitow ($0.8 million) and the Canadian floods ($0.2 million).
Premiums written for the Bonded Service program increased 100.2% from $1,336,473 in 1993 to $2,675,532 in 1994, while premiums earned from the Bonded Service program increased 100.4% from $1,329,361 in 1993 to $2,664,525 in 1994. The increases in net premiums written and premiums earned on the Bonded Service program were primarily attributable to the addition in 1994 of two multi-employer groups created by the TPA to service small not-for-profit organizations. As of December 31, 1994, the Company services four such groups.
Premiums Written; Premiums Earned. Premiums written increased 79.0% from $20,608,288 in 1992 to $36,884,096 in 1993, while premiums earned increased 85.7% from $10,657,111 in 1992 to $19,787,858 in 1993.
Federal Income Taxes. The Company adopted SFAS 109, "Accounting for Income Taxes," as of January 1, 1993, and the cumulative effect of this change as reported in the Consolidated Statement of Income was to increase income by $48,587. Prior years' financial statements have not been restated. The difference between Federal income taxes, $580,379 in 1993 and $758,167 in 1992, provided at the Company's effective tax rate, 20.5% in 1993 and 26.2% in 1992, and the 34% Federal statutory rate was primarily due to a significant portion of pre-tax income representing dividends received and tax-exempt interest deductions, and in 1993 the adjustment of prior year tax resulting from adoption of SFAS 109 (see Note 6 of notes to Consolidated Financial Statements).
The Company maintains a level of cash and liquid short-term investments which it believes will be adequate to meet anticipated payment obligations without being required to liquidate intermediate-term and long-term investments through the end of 1996. Due to the nature of the risks the Company insures, losses and loss adjustment expenses emanating from its policies are characterized by relatively short settlement periods and quick development of ultimate losses compared to claims emanating from other types of insurance products. Therefore, the Company believes that it can estimate its cash needs to meet its loss and expense payment obligations through the end of 1996.
Consolidated Statements of Shareholders' Equity for the years ended December 31, 1995, 1994 and 1993
During 1992, the Company started writing a new line of business and began capitalizing and amortizing certain policy acquisition costs incurred at policy issuance. Such costs are deferred and amortized over the term of the policy to the extent that these deferred costs can be recovered from future profits, including anticipated investment income related to the line of
Earnings per share have been computed by dividing net income less requirements for preferred dividends by the weighted average number of common shares outstanding during the year, including outstanding convertible preferred stock and stock options, which are included as common stock equivalents.
Pre-tax net realized gains (losses) on investments were as follows for each of the years ended December 31:
UK Retail Financial Services profit up £599 million, or 24 per cent, to £3,129 million.
statement chairman’s 2000 was another successful year for the Lloyds TSB Group. We continued to grow our business organically and we made two important acquisitions, Scottish Widows and Chartered Trust.
Although some new entrants in retail financial services have particularly low cost structures, we have the advantage of multi-channel distribution, which is what most people want. We can now offer more choice and greater accessibility and few can match the personal service many of our customers prefer.
Personal loans and credit card lending increased by 9 per cent since the end of 1999 and balances on current accounts and savings and investment accounts grew by 10 per cent over the same period, supported by the launch of a number of new products. The popularity of the Group’s Added Value current accounts continued with Lloyds TSB maintaining its position as a market leader in this area with over 2 million accounts in operation. The Group also continues to maintain market-leading positions in many of its core markets, including personal current accounts, savings and business banking.
In Treasury Division the more stable interest rate environment, compared with 1999, resulted in lower income from our interest rate management businesses. The Group’s activity in the derivatives markets continues to remain focused on straight cash based products.
Insurance and Investments 6,420 5,187 Wholesale Markets 8,339 7,094 International Banking 12,563 13,223 aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
substantial proportion of deposits is made up of current and savings accounts which, although repayable on demand, have traditionally formed a stable deposit base.
The annual bonus scheme was designed to reflect specific goals linked to the performance of the business.
Pension benefits earned by the directors: (a) Additional pension (c) earned (excluding (b) Accrued inflation) during Increase in pension the year ended transfer value entitlement at 31 December (excluding 31 December aaaaaaasfff aaaaaaasfff aaaaaaasfff
notes to the accounts 9 Tax on profit on ordinary activities 2000 1999 £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
The Group’s residual value exposure in respect of leased assets, all of which are expected to be disposed of at the end of the lease terms, was as follows: £m £m aaaaaffffffffffffffffffffffffff aaaaaffffffffffffffffffffffffff
The principal group undertakings, all of which have prepared accounts to 31 December and whose results are included in the consolidated accounts of Lloyds TSB Group plc, are: Percentage of equity share Country of capital registration / and voting incorporation rights held Nature of business aaaaaaaffffffffffffffffffffffffff aaaaaaff aaaaaaaaaaaaaaaffff
Preference shares of US25 cents each 40 –afffffffffffffffffffffffffff afffffffffffffffffffffffffff Euro em em
Net cash inflow (outflow) before adjustments for the effect of foreign exchange movements 1,406 (448) Effect of foreign exchange movements 7 –
IT Initiative In 1999, American Financial Group, Inc. ("AFG") initiated an enterprise-wide study of its information technology ("IT") resources, needs and opportunities (including those of GAFRI). The initiative entails extensive effort and costs and has led to substantial changes in the area, which should result in significant cost savings, efficiencies and effectiveness in the future. While the costs (most of which are being expensed) precede the expected savings, management expects benefits to greatly exceed the costs incurred, all of which have been and will be funded through available working capital.
Investments Insurance laws restrict the types and amounts of investments which are permissible for life insurers. These restrictions are designed to ensure the safety and liquidity of insurers' investment portfolios.
Debt and Preferred Securities The following table shows scheduled principal payments on fixed rate long-term debt of GAFRI and related weighted-average interest rates for the next five years and for all years thereafter (in millions):
Stock-Based Compensation As permitted under Statement of Financial Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based Compensation," GAFRI accounts for stock options and other stock-based compensation plans using the intrinsic value based method prescribed by Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees."
The distribution of maturities based on amortized cost is generally the same. Mortgage-backed securities had an estimated average life of approximately five and one-half years at December 31, 2000.
At December 31, 2000 and 1999, the weighted-average interest rate on amounts borrowed under AAG Holding's bank credit line was 7.31% and 6.76%, respectively.
At December 31, 2000, GAFRI had net operating loss carryforwards for federal income tax purposes of approximately $107 million which are scheduled to expire from 2003 through 2020.
In June 2013, we filed a "shelf" registration statement with the Securities and Exchange Commission registering $300.0 million of our securities, which will allow us to sell any combination of senior or subordinated debt securities, common stock, preferred stock, warrants, depositary shares and units in one or more offerings should we choose to do so in the future.
Since we carry all of these securities at fair value in the Consolidated Balance Sheets, there is virtually no effect on liquidity or financial condition upon the sale and ultimate realization of unrealized gains and losses. The average duration of our fixed maturity portfolio was 3.6 years at December 31, 2013.
We manage credit risk by diversifying our portfolio to avoid concentrations in any single industry group or issuer and by limiting investments in securities with lower credit ratings. The largest investment in any one fixed income security, excluding U.S. government securities, is $8.4 million or 0.6% of the fixed income investment portfolio. The top five investments in fixed income securities, excluding those issued by the U.S. government, make up 2.5% of the fixed income portfolio. The fair value of non-performing fixed maturities, securities that have not produced their stated rate of investment income during the previous twelve months, was $0.1 million or less than 0.1% of the $1.4 billion fixed portfolio as of December 31, 2013.
the loss and LAE ratio was offset by a decline in the underwriting ratio. The increase in the loss and LAE ratio was primarily
The Commercial Health Division reported operating income of $106.7 million in 2011 compared to operating income of $249.9 million in 2010, a decrease of $143.2 million or 57.3%. The decrease in operating income during the current year period is generally attributable to an increase in the loss ratio as discussed more fully below, partially offset by a reduction in underwriting acquisition and insurance expenses.
During 2011 and 2010, the Company updated its loss reserve analysis to reflect more recent patterns of paid claims. The impact on the operating margin as a result of the update of its loss reserve analysis was larger in 2010 than in 2011. The 2010 favorable impact was $40.8 million compared to the favorable impact of $7.8 million for 2011. Additionally, the 2010 claim development also reflects the Company’s refinement of a previously estimated claim liability, established in the fourth quarter of 2009, arising from a review of claim processing for state mandated benefits. As a result of this refinement, during 2010, the Company recognized a decrease in claim liabilities of $19.6 million.
During 2012, 2011 and 2010, the holding company received an aggregate of $67.0 million, $322.3 million, and $128.5 million, respectively, in cash dividends from its subsidiaries. The amount in 2011 includes an extraordinary dividend in the amount of $159.4 million paid from the Company’s MEGA insurance subsidiary.
We conduct a significant portion of our business through our insurance subsidiaries, which are subject to regulations and standards established by their respective states of domicile. Most of these regulations and standards conform to those established by the NAIC. These standards require our insurance subsidiaries to maintain specified levels of statutory capital, as defined by each state, and restrict the timing and amount of dividends and other distributions that may be paid to their parent company. Generally, the amount of dividend distributions that may be paid by a regulated subsidiary, without prior approval by state regulatory authorities, is limited based on the entity’s level of statutory net income and statutory capital and surplus. These limitations are based upon the greater of 10% of statutory surplus at the end of the preceding year or the preceding year’s statutory gain from operations.
In April 2006, HealthMarkets Capital Trust I and HealthMarkets Capital Trust II (“Trusts”) issued $100.0 million of floating rate trust preferred securities and $3.1 million of floating rate common securities and invested the proceeds in $100.0 million principal amount of HealthMarkets, LLC’s floating rate junior subordinated notes due June 15, 2036. The notes accrue interest at a floating rate equal to three-month LIBOR plus 3.05%.
As of December 31, 2009, the Company had assets in the amount of $303,233 compared to assets in the amount of $378,785 at December 31, 2008. The Company had total assets consisting of $2,091 in cash and $356,454 less amortization of $55,312 investment in the 68,000 name database. Total assets at December 31, 2008 consisted of $22,331 in cash and $356,454 in our customer database.
· Folksamerica Holding Company, including its wholly owned subsidiary, Folksamerica Reinsurance Company-a reinsurance company that is now part of White Mountains Re Holdings Inc., or White Mountains Re, a wholly owned subsidiary of White Mountains;
impact of the reallocation of IBNR reserves to run-off (1.3 points). The expense ratio increased to 32.4%, compared with 28.8% in the prior year. The increase in the expense ratio in 2006 was mainly due to other underwriting expenses, including 1.0 point related to actions taken to optimize long-term occupancy costs and 0.6 points of increased incentive compensation expense in 2006 and the inclusion of the settlement of the retiree medical plan in 2005, which decreased the 2005 expense ratio by 1.5 points. In addition, the 2006 expense ratio was higher than the 2005 expense ratio as expense reductions were not proportional to reductions in earned premiums.
During 2004 and 2005, we entered into two quota share reinsurance arrangements with other subsidiaries of White Mountains. Under the Esurance Quota Share, which was effective on January 1, 2005, we assumed approximately 85% of business written by Esurance Insurance Company, which includes business written by its wholly owned subsidiary. Under the Sirius Quota Share, we ceded between 6% and 12% of business written, effective April 1, 2004, to Sirius International Insurance Corporation.
Generally, our regulated insurance operating subsidiaries have the ability to pay dividends during any 12-month period without the prior approval of regulatory authorities in an amount equal to the greater of prior year statutory net income or 10% of prior year end statutory surplus, subject to the availability of unassigned funds. As a result, based on 2006 statutory net income, our top tier regulated insurance operating subsidiaries have the ability to pay an aggregate of approximately $234 million of dividends during 2007 without prior approval of regulatory authorities, subject to the availability of unassigned funds. As of December 31, 2006, OneBeacon’s top tier regulated insurance operating subsidiaries had $1.6 billion of unassigned funds.
Below is a schedule of our material contractual obligations and commitments as of December 31, 2006:
During 2004, we acquired Atlantic Specialty for $30.1 million in cash and a $20.0 million note.
These statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform with its expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including:
As an additional measure, the issue of further subordinated hybrid capital (a blend of equity and debt capital) in February of the current financial year enabled Hannover Re to optimise its capital base. With this transaction we made the most of the attractive interest rate environment and repurchased the outstanding US dollar bond at a very low exchange rate.
Unrealised gains and losses on investments 5.1 8 517 (7 090) 8 517 (7 090)
Changes in claims reserves (net) 2 120 995 2 002 234 2 125 305 2 183 999
Changes in other technical provisions (14 187) 55 790 (14 197) 57 055
Cash and cash equivalents at the beginning of the period 671 866 830 659 672 844 835 816
The application of SFAS 150 did not have any impact on the consolidated financial statement in the 2003 financial year.
Hannover Re (Bermuda) Ltd., 100.0 EUR 647 472 EUR 142 961 Hamilton/Bermuda
Harbor Specialty Insurance Company, 100.0 USD 42 028 USD 6 313 Trenton/USA
Debt securities issued by semi-governmental entities 2 366 346 86 143 3 062 2 449 427
Interest Entities" (FIN 46R) addressing the consolidation of so-called variable interest entities. The revised interpretation supersedes FIN 46 "Consolidation of Variable Interest Entities" published in January 2003. In cases where consolidation is not required on the basis of a majority voting interest, a variable interest entity is to be consolidated by the primary beneficiary. The primary beneficiary is the party that absorbs a majority of the entity's expected losses and receives a majority of its expected residual returns as a result of holding variable interests. The term "variable interest" is defined in FIN 46R as a "contractual, ownership or other pecuniary interest in an entity that changes with changes in the entity's net asset value".
Notes notes on the individual items 5.2 Underwriting assets and liabilities
Reserve as at 31 December of year under review (net) 14 306 606 13 738 185
HDI Haftpflichtverband der Deutschen Industrie V.a.G. (HDI) indirectly holds a majority interest in the shares of Hannover Re through the subsidiaries Talanx AG, HDI Verwaltungs-Service AG as well as through Erste HDI Beteiligungsgesellschaft mbH and Zweite HDI Beteiligungsgesellschaft mbH, all based in Hannover.
Figures in EUR thousand Position as at 1.1.2003 Addition Repayment Position as at
The fair value of derivatives used in cash flow hedges totalled -EUR 41.2 million. Derivatives recognised in the trading portfolio had a fair value of EUR 2.4 million.
Our audit, which also extends to the group management report prepared by the Executive Board for the year from January 1 to December 31, 2003, has not led to any reservations. In our opinion, the group management report provides a suitable understanding of the Group's position and suitably presents the risks of future development. In addition, we confirm that the consolidated financial statements and the group management report for the business year from January 1 to December 31, 2003, satisfy the conditions for releasing the company from its obligations under German law to compile consolidated financial statements and a group management report.
The incremental effects of adopting the provisions of FAS No. 158 on the Company’s Balance Sheets at December 31, 2006 was $(1.6).
The tax effects of temporary differences that give rise to Deferred tax assets and Deferred tax liabilities at December 31, 2007 and 2006, are presented below.
ING North America sponsors the ING Savings Plan and ESOP (the “Savings Plan”). Substantially all employees of ING North America and its affiliates (excluding certain employees) are eligible to participate, including the Company’s employees other than Company agents. The Savings Plan is a tax-qualified profit sharing and stock bonus plan, which includes an employee stock ownership plan (“ESOP”) component. Savings Plan benefits are not guaranteed by the PBGC. The Savings Plan allows eligible participants to defer into the Savings Plan a specified percentage of eligible compensation on a pre-tax basis. ING North America matches such pre-tax contributions, up to a maximum of 6.0% of eligible compensation. Matching contributions are subject to a 4-year graded vesting schedule, although certain specified participants are subject to a 5-year graded vesting schedule. All contributions made to the Savings Plan are subject to certain limits imposed by applicable law. Pre-tax charges to operations of the Company for the Savings Plan were $4.9, $4.6, and $4.2, for the years ended December 31, 2007, 2006, and 2005, respectively, and are included in Operating expenses in the Statements of Operations.
Services agreement between the Company and its U.S. insurance company affiliates dated January 1, 2001, amended effective January 1, 2002 and December 31, 2007, for administrative, management, professional, advisory, consulting, and other services. For the years ended December 31, 2007, 2006, and 2005, expenses related to the agreements were incurred in the amount of $19.0, $6.1, and $5.7, respectively.
Pretax reclassification adjustments for gains (losses) and other items included in Net income were $(166.2), $(61.9), and $76.9, for the years ended December 31, 2007, 2006, and 2005, respectively.
Net investment income decreased by $377,000, from $7,517,000 in 1996 to $7,140,000 in 1997. This decrease was primarily the result of the reinvestment of the Company's bond and mortgage portfolio in 1997 into lower investment yields due to the decrease in long term rates in the financial markets.
Interest expense decreased by $370,000, from $1,318,000 in 1996 to $948,000 in 1997. This decrease is primarily due to fewer loan originations from the Company's mortgage subsidiary and the payoff of bank debt in 1997.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Security National Financial Corporation and subsidiaries at December 31, 1997 and 1996, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 1997, in conformity with generally accepted accounting principles. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information set forth therein.
The accompanying consolidated financial statements include the accounts and operations of the Company. The Company's wholly-owned subsidiaries at December 31, 1997, are as follows:
Basic earnings per share were computed by dividing net earnings by the weighted average number of common shares outstanding during each year presented, after the effect of the assumed conversion of Class C Common Stock to Class A Common Stock, the acquisition of treasury stock, and the retroactive effect of stock dividends declared. Diluted
The Company's life insurance subsidiary is domiciled in Utah and prepares its statutory-basis financial statements in accordance with accounting practices prescribed or permitted by the Utah Insurance Department. "Prescribed" statutory accounting practices are interspersed throughout state insurance laws and regulations, the National Association of Insurance Commissioners ("NAIC") Accounting Practices and Procedures Manual and a variety of other NAIC publications. "Permitted" statutory accounting practices encompass all accounting practices that are not prescribed; such practices may differ from state to state, may differ from company to company within a state, and may change in the future.
The headquarters building is located at 11222 Quail Roost Drive, Miami, Florida 33157-6596, and is approximately 415,000 square feet in size. The building is used exclusively for general office use, except for a portion which functions as the Company's warehouse. The building's book value is approximately $34.2 million, which includes the cost of acquiring titles and all permanent improvements through December 31, 1995, net of accumulated depreciation. Certain other properties are infrequently acquired through foreclosures of mortgage loans in which ABLAC has invested. ABLAC holds and operates such properties until sale can be effected.
The reinsurance market has witnessed some softening in prices, so insurance companies can expect to renew their coverages at prior year levels without incurring additional cost.
The federal government, commercial companies and the insurance industry continue to work together toward Superfund reform and dealing with the cleanup of pollution sites. Among issues pending are the determination of retroactive liability and a proposed insurer-specific tax.
Information on Summary of Investments - Other Than Investments in Related Parties is included on page 11 in Part I Item 1 c. of this report, and in Note 3 on page 45 in Part II Item 8 of this report, with the exception of the Information on Equity Securities which is included below.
Valuation of assets 14 Valuation of liabilities 15 Further accounting policies 16 Notes on assets 17 Notes on liabilities 23 Notes on the profit and loss account 28 Proposal for the distribution of profits 30 Other notes 30
III. Provisions for outstanding claims 2. Less: reinsurance ceded 4,384,645 4,127,463
Hannover America Private Equity Partners II GmbH & Co. KG, Hannover / Germany 87.00 EUR 237,381 40,194 holds 100.00% of the shares in: HAPEP II Holding GmbH, Hannover / Germany EUR 6,010 909
holds 100.00% of the shares in: Inter Hannover (No.1) Limited, London / United Kingdom GBP (35) –
WeHaCo Unternehmensbeteiligungs-GmbH 1, Hannover / Germany 20.00 EUR 83,207 11,857 1 Financial year ending 31 December 2015 2 Financial year ending 30 September 2016 3 Abbreviated financial year 1 January to 30 June 2015
The company's portfolio includes a USD / HKD forward exchange transaction in a notional amount of HKD 348.4 million (HKD 0.0 million) with a maturity date of 27 January 2017 that is not part of a valuation unit. Risks underlying the transaction are transferred to the Hong Kong branch. The negative fair value of –EUR 0.07 million (EUR 0.0 million) is carried in full on the liabilities side of the balance sheet as a provision for anticipated losses. The calculation is made on the basis of yield curves as well as spot and forward rates using the interest rate parity model.
We received an adequate consideration for all transactions with affiliated companies according to the circumstances of which we were aware at the time when the transactions were effected. We incurred no losses requiring compensation as defined by § 311 (1) of the Stock Corporation Act (AktG).
The report on the company’s relations with affiliated companies drawn up by the Executive Board has likewise been examined by KPMG AG Wirtschaftsprüfungsgesellschaft and given the following unqualified audit certificate: “Having audited the report in accordance with our professional duties, we confirm that 1. its factual details are correct; 2. in the case of the transactions detailed in the report, the expenditure of the company was not unreasonably high.”
Colonial Mortuary(2) 2128 South State St. Salt Lake City, UT 1991 1 1 14,500
(1) As of December 31, 2001 there were mortgages of approximately $255,000 collateralized by the property and facilities of Camelback Sunset Funeral Home. (2) As of December 31, 2001, there were mortgages of approximately $1,747,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park, Lakehills Cemetery and Colonial Mortuary. (3) As of December 31, 2001, there was a mortgage of approximately $209,000, collateralized by the property and facilities of Crystal Rose Funeral Home.
Total revenues increased by $8,422,000, or 17.0%, from $49,657,000 for fiscal year 1999 to $58,079,000 for fiscal year 2000. Contributing to this increase in total revenues was a $1,505,000 increase in net investment income, an $8,418,000 increase in mortgage fee income, and a $111,000 increase in realized gains on investments and other assets.
If market conditions were to cause interest rates to change, the market value of the fixed income portfolio (approximately $65,676,000) could change by the following amounts based on the respective basis point swing (the change in the market values were calculated using a modeling technique):
In June 2001, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations". This Statement addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. This Statement is effective for financial statement issued for fiscal years beginning after June 15, 2002.
Years Ended December 31, 2001 2000 1999 ---- ---- ---- Revenues: - -------- Insurance premiums and other considerations $13,150,875 $12,875,585 $13,175,825 Net investment income 12,946,499 12,136,072 10,631,302 Net mortuary and cemetery sales 10,603,451 9,416,927 10,178,246 Realized gains on investments and other assets 10,428 423,805 313,013 Mortgage fee income 40,086,097 22,921,585 14,503,388 Other 151,945 304,886 855,604 ------------ ------------ ------------ Total revenue 76,949,295 58,078,860 49,657,378
Securities on deposit for regulatory authorities as required by law amounted to $8,829,559 at December 31, 2001 and $8,815,733 at December 31, 2000.
Imputed interest at 7% 572,061 641,325 732,371 Amortization (1,396,223) (1,509,367) (1,597,511) ------------ ------------ ------------ Net amortization charged to income (824,162) (868,042) (865,140) ------------ ------------ ------------ Balance at end of year $7,615,348 $8,729,264 $9,597,306 ============ ============ ============
Security National Life $1,732,018 $796,047 $628,538 Southern Security Life (429,143) 80,477 533,233
Earnings (loss) before income taxes, and earnings of subsidiaries (631,806) 1,412,003 841,101
To determine the reasonableness of the prior assumptions used and their impact on previously projected account values and the related EGPs, we evaluate, on a quarterly basis, our previously projected EGPs. Our process to assess the reasonableness of our EGPs involves the use of internally developed models, together with studies and actual experience. Incorporated in each scenario are our current best estimate assumptions with respect to separate account returns, surrender and lapse rates, interest margin, mortality, premium persistency, funding patterns, expenses and reinsurance costs and recoveries.
Mortality margins in universal life and variable universal life products increased to $237.6 million in 2008, compared to $173.1 million in 2007, or $64.5 million. This reflects a $98.9 million increase in cost of insurance fees, partially offset by a $34.4 million increase in benefits. While fluctuations in mortality are inherent in our business, this improvement primarily reflects growth in the block of business over recent years. Fee revenues increased to $133.9 million in 2008, compared to $130.8 million, or $3.1 million. The increase was driven by higher premium-based fees of $7.7 million on our universal life and variable universal life products, partially offset by lower asset-based fees of $4.6 million on our variable annuity products.
The effective tax rate for 2008, 2007 and 2006 was 40.1%, 15.8% and 31.2%, respectively. The principal cause of the difference between the effective rate and the U.S. statutory rate of 35% for 2008 was investment income not taxed (i.e., dividend received deduction and low income housing tax credits) and the release of reserves as a result of the effective settlement of an IRS audit. The principal cause of the difference between the effective tax rate and the U.S. statutory rate of 35% for 2007 was investment income not taxed and the reversal of the valuation allowance relative to foreign tax credit carryovers.
On September 18, September 29, October 2 and October 10, 2008, A.M. Best Company, Inc., Fitch Ratings Ltd., Moody’s Investors Service and Standard & Poor’s, respectively, each revised its outlook for the U.S. life insurance sector to negative from stable, citing, among other things, the significant deterioration and volatility in the credit and equity markets, economic and political uncertainty, and the expected impact of realized and unrealized investment losses on life insurers’ capital levels and profitability.
Deferred income taxes increased primarily due to the effect of unrealized investment losses included in other investment income.
Total Revenues $ 49,433 $ 52,679 $39,927 $32,607 $25,920 Net Income 1,900 1,922 5,483 3,788 2,619 Basic Net Income Per Share (1) .32 .33 1.13 .78 .64 Diluted Net Income Per share (1) .32 .33 1.04 .76 .61 Dividends Paid on Common Stock 1,215 1,083 955 846 779 Dividends Per Common Share (1) .26 .236 .215 .193 .189 Gross Premiums Written 56,914 61,199 52,138 40,199 31,583 Loss Ratio (2) 81% 75% 59% 59% 55% Combined Ratio (2) 114% 104% 87% 89% 90%
Revenues. Revenues increased from $39.9 million to $52.7 million, or 32%, in 1996, primarily as a result of an increase in net premiums earned and net realized gains on investments. The increase in net premiums earned was the direct result of increases in all primary lines of business written by the Company. The increase in business written reflects the increase in the number of policies issued by the Company. The increase in net realized gains on investments was the result of the sale of investments available for sale at a gain.
Our principal and executive offices are located in Houston, Texas, in buildings owned by Houston Casualty Company. We also maintain offices in over 42 locations elsewhere in the United States, the United Kingdom, Spain and Bermuda. The majority of these additional locations are in leased facilities.
Our other specialty line of business increased significantly due to the marine business written by an underwriting agency we acquired in 2003, our quota share participation on the surplus lines business written by Argonaut Group, Inc. beginning in 2003, and our participation in a specialty Lloyd’s syndicate beginning in 2004. Growth in both gross and net premiums will slow down in 2005.
While competition continues to result in some premium rate reductions in our aviation and group life, accident and health lines of business, profit margins are very acceptable and the markets are relatively stable. We increased our retentions in both lines in 2004 and again in 2005.
We maintain a substantial level of cash and liquid short-term investments to meet anticipated payment obligations. Our combined cash and investment portfolio increased $734.7 million during 2004 and totaled $2.5 billion at December 31, 2004. The increase resulted from strong operating cash flows, our $100 million public stock offering and numerous commutations in the fourth quarter of 2004, and our January 2004 acquisition of American Contractors Indemnity Company. Included in short-term investments at December 31, 2004 is $244.0 million of funds held by underwriting agencies or reinsurance brokers for the benefit of insurance or reinsurance clients. We earn the interest income on these funds.
The table below provides information with respect to our long-term debt and contractual commitments as of December 31, 2007.
(1) Amounts do not include interest payments associated with these obligations. Interest rates on our subordinated notes are variable and may change on a quarterly basis. See “-Liquidity and Capital Resources” in Item 7 of this report for further discussion of our subordinated notes.
AMERISAFE, Inc., is an insurance holding company incorporated in the state of Texas. The accompanying consolidated financial statements include the accounts of AMERISAFE and its subsidiaries: American Interstate Insurance Company (“AIIC”) and its insurance subsidiaries, Silver Oak Casualty, Inc. (“SOCI”) and American Interstate Insurance Company of Texas (“AIIC-TX”), Amerisafe Risk Services, Inc. (“RISK”) and Amerisafe General Agency, Inc. (“AGAI”). AIIC and SOCI are property and casualty insurance companies organized under the state of Louisiana. AIIC-TX is a property and casualty insurance company organized under the laws of the state of Texas. RISK, a wholly-owned subsidiary of the Company, is a claims and safety service company servicing only affiliated insurance companies. AGAI, a wholly owned subsidiary of the Company, is a general agent for the Company. AGAI sells insurance, which is underwritten by AIIC, SOCI and AIIC-TX, as well as by nonaffiliated insurance carriers. The assets and operations of AGAI are not significant to that of the consolidated entity.
the prime rate or LIBOR. Letters of credit issued under the arrangement accrue fees on undrawn amounts as long as the letters are outstanding. The Company does not pay a facility fee on amounts available under the line of credit unless they are advanced and outstanding. The facility is unsecured and contains covenants requiring that the Company make periodic reports to the lender and restrict the Company’s ability to take certain actions without the lender’s prior consent. No amounts were outstanding under the line of credit arrangement at December 31, 2007, and no letters of credit had been issued under it.
The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2007, 2006 and 2005:
We did not write or earn any reinsurance premiums during 2013.
Our reinsurance acquisition costs relating to commissions, brokerage costs, fronting fees and related costs increased as a proportion of earned reinsurance premiums during 2015 versus 2014, primarily reflecting an increase in fronting fees resulting from a higher portion of fronted premiums assumed during the current year. Our profit commissions incurred, which fluctuate based on our loss experience, added a further 5.4 and 2.7 percentage points to our reinsurance acquisition cost ratios for the years ended December 31, 2015 and 2014.
Our public company expenses incurred during the years presented consisted of director fees, corporate insurance premiums, audit fees, share-based compensation and other expenses associated with being a publicly traded company. The modest increase in these expenses during the year ended December 31, 2015, versus those of 2014, is due primarily to an increase in legal and professional fees in connection with the May 2015 amendment and renewal of the Credit Agreement.
Administrative Services Agreement. Pursuant to the Administrative Services Agreement, we are obligated to reimburse the Manager for various fees, expenses and other costs in connection with the services provided under the terms of this agreement, including the services of our Chief Financial Officer, modeling software licenses and finance, legal and administrative support.
which are also compared to loss reports received from other cedants. These procedures are incorporated in our internal control processes on an ongoing basis and are regularly evaluated and amended as market conditions, risk factors and unanticipated areas of exposure develop.