Production of new life insurance premiums by CICA measured in issued and paid annualized premiums increased 17.7% from 2001 to 2002 and 14.9% from 2000 to 2001. In addition, management initiated a domestic ordinary life sales program in late 2000 targeting rural areas. This program's initial results to date have been insignificant; however, with the recent acquisitions, coupled with new marketing management, the additional sales forces of the acquisitions should provide expanded sales efforts for our domestic marketing program. Management also
We typically avoid investments in bonds and notes at significant premiums in order to minimize the potential for loss on early calls, although we incurred a $390,000 loss on $9 million of U.S. Treasury notes which had been purchased at a large premium in late 2001 to avoid additional loss. No similar condition now exists within our bond portfolio which could result in any significant future losses. Although changes in interest rates could adversely affect the market value of our bonds, calls of such instruments would not result in material losses.
Endowment benefits increased 6.3% from $5,389,082 in 2001 to $5,730,463 in 2002. In 2000, such expenses were $4,895,492. Beginning in late 1990, CICA introduced a new series of international policies that carried an immediate endowment benefit of an amount elected by the policyowner. This endowment is factored into the premium of the policy and is paid annually. Like policy dividends, endowments are factored into the premium and as such the increase should have no adverse impact on profitability.
During 2002, commissions increased 21.5% to $16,339,205 from $13,444,270 in 2001. In 2000, commission expense was $12,411,053. The 2002 increase is largely attributable to the acquisition of Combined and Lifeline, whose 2002
We paid a 15% stock dividend on June 1, 2002 to holders of record as of May 1, 2002. A similar 7% dividend was paid on December 31, 2000 to holders of record as of December 1, 2000. Both dividends were paid using Class A and B shares that were previously authorized but unissued. The dividends had the effect of transferring $35,416,772 and $11,497,886 respectively in 2002 and 2000 from retained earnings to our common stock and treasury stock.
We have a profit sharing plan that was effective January 1, 1978. The purpose of the plan is to provide a retirement program for the exclusive benefit of the eligible employees of the employer. The plan is designed to comply with the Employee Retirement Income Security Act of 1974 (ERISA). An employee become automatically eligible as of January 1st of the year in which the employee completes 12 months of employment and has worked at least 1,000 hours. An employee will be 100% vested after seven or more years of service. Our Board of Directors determines if a contribution will be made and the amount to be made. The contribution, if any, is allocated based upon the total number of employees participating in the plan and their years of service. We made contributions of $300,000 in 2002, $250,000 in 2001, and $200,000 in 2000. The Profit Sharing Plan had net assets of $1,639,619 as of December 31, 2002, $1,266,197 as of December 31, 2001 and $1,136,850 as of December 31, 2000.