We recorded replacement carrier revenue related to the OCIC agreement referred to above in the amount of $21.7 million and $12.7 million for the years ended December 31, 2002 and 2003, respectively which contributed to increasing total shareholders’ equity from $(4.0) million as of December 31, 2002 to $49.8 million for the year ended December 31, 2003.
Proformance, which differs from the $4,350,000 we had recorded as a receivable due from OCIC as outlined above. The difference of $696,000 between the receivable we had recorded ($4,350,000) due from OCIC and the actual settlement payment received from OCIC ($3,654,000) came as a result of a dispute between the Company and OCIC regarding $292,000 of NJAIRE assessments and approximately $404,000 of commission expenses included in the underlying calculation which supported the amounts due to Proformance for the 2004 year, the final year of our three year agreement with OCIC. The $696,000 has been recorded as a bad debt expense in the Company’s condensed consolidated statement of operations for the year ended December 31, 2005.
Other Income. Other income for the twelve months ended December 31, 2005 and 2004 was $1.7 million and $2.0 million, respectively. The decrease was primarily due to a $0.1 million reduction in claims services revenue in connection with the contract with AT&T due to an increase in deferred revenue related to the contract as well as a decrease in finance and service charges in the amount of $0.1 million.
Other Operating and General Expenses. Other operating and general expenses for the twelve months ended December 31, 2005 increased by $3.4 million to $4.0 million from $0.6 million in the comparable 2004 period. The increase in other operating and general expenses of $4.0 million is primarily related to an increase in stock based compensation expense, which increased $2.6 million for the twelve months ended December 31, 2005 to $3.1 million from $0.5 million in the comparable 2004 period. The increase in stock based compensation expense for the year ended December 31, 2005 is primarily related to the extension of the options granted during 1995 and those granted to the estate of Frank Campion. Also included in other operating and general expenses is an increase of professional fees in the amount of $0.8 million from the comparable 2004 period.
Net Written Premiums. Net written premiums for the year ended December 31, 2004 increased by $46.2 million, or 31.4%, to $193.2 million from $147.0 million in the comparable 2003 period. The increase was due to the increase in direct written premiums for the same period and the fact that we retained a higher percentage of our direct written premiums in 2004 compared to 2003.
The table below sets forth the aggregate amount of dividends paid to us by our non-insurance subsidiaries during the years ended December 31, 2005, 2004 and 2003.
There is one equity and one preferred security having an unrealized loss of $70,330, a fair value of $816,865 and an amortized cost of $887,195 as of December 31, 2005, which has been in a continuous unrealized loss position for greater than 12 months. There were ninety six fixed maturity securities having an unrealized loss of $1,287,760, a fair value of $50,811,392 and an amortized cost of $52,099,152 as of December 31, 2005, which have been in a continuous unrealized loss position for greater than 12 months.
Our policy states that if the fair value of a security is less than the amortized cost, the security will be considered impaired. For investments classified as available for sale, we need to consider writing down the investment to its fair value if the impairment is considered other than temporary. If a security is considered other-than-temporarily impaired pursuant to this policy, the cost basis of the individual security will be written