ZAIC2012-1 - Zurich Producer Compensation

More documents

Recommendations

Info

ANNUAL STATEMENT FOR THE YEAR 2012 OF THE ZURICH AMERICAN INSURANCE COMPANY losses, arising on or after June 1, 2008 in the conduct of the SBS Business together with all unearned premium as of June 1, 2008 and net written premium for subsequent periods on that business. Effective 2011, the 100% Quota Share Reinsurance Agreement between Truck and the Transferors was amended to provide for remittance of premium on a net billed premium basis rather than on a net written premium basis. In addition, this amendment (“Amendment”) adjusts the amount of unallocated loss adjustment expenses reimbursed to the Transferors in recognition of a reduction in the administrative services provided by the Transferors in September 2009. Execution of the amendment was approved by regulatory authorities in 2012. Pursuant to the terms of the Amendment, on February 10, 2012, Truck remitted to the Transferors $213 million in deferred premiums and $6.3 million in accrued interest in full settlement of all balances due in connection with the change to cash settlements on the basis of net billed premiums. During 2012, the Company received $52,090,500 from Farmers Insurance Exchange (FIE) and $3,690,000 from Truck Insurance Exchange (TIE) as interest through December 31, 2012 on surplus notes issued by these entities and held by the Company. FIE’s attorney-in-fact, Farmers Group Inc., and TIE’s attorney-in-fact, Truck Underwriters Association, are both indirect subsidiaries of Zurich Insurance Group, Ltd. FIE and TIE are both California insurance exchanges owned by their respective policyholders, and not by Zurich Insurance Group or any of its affiliates. Issuer Principal Loaned Interest Farmers Insurance Exchange $ 707,000,000 6.15% $ 43,480,500 Farmers Insurance Exchange 140,000,000 6.15% 8,610,000 Truck Insurance Exchange 60,000,000 6.15% 3,690,000 Rate Interest received $ 907,000,000 $ 55,780,500 During 2012, the Company paid an alien affiliate a guarantee fee of $4,088,302 to guarantee payment of interest and repayment of principal related to the above referred surplus notes purchased from affiliates in 2011. The guarantee fee is payable annually on April 1 st of each year, as long as the Company holds these surplus notes. During 2012, the Company received ordinary cash dividends from the following wholly-owned subsidiaries: Company Date Paid Amount American Guarantee and Liability Insurance Company 12/27/2012 $ 4,000,000 Fidelity & Deposit of Maryland 12/27/2012 19,400,000 Steadfast Insurance Company 12/27/2012 19,500,000 Universal Underw riters Insurance Company 12/27/2012 15,900,000 $ 58,800,000 During 2012, the Company did not receive any extraordinary cash dividends from its wholly-owned subsidiaries. On December 27, 2012 the Company made a capital contribution of $10,000,000 to its wholly-owned subsidiary Empire Indemnity Insurance Company. Additionally, during 2012, the Company paid interest of $35,590,417 on surplus notes issued by the Company and held by its parent, ZHCA. Payment of interest on the surplus notes was approved by the Superintendent of the Department. (Please refer to Note 13 (11) for additional information.). On December 31, 2011 Empire Indemnity Insurance Company (EIIC) and Empire Fire and Marine Insurance Company (EFM) terminated a quota share reinsurance agreement whereby EIIC ceded 100% of its direct business to EFM. As a result of the termination of the agreement beginning on January 1, 2012 EIIC began ceding business directly to the Pool. D. The Company reported the following amounts due from (to) affiliates as of December 31, 2012 and December 31, 2011: Pooled Affiliates December 31, 2012 December 31, 2011 American Guarantee and Liability Insurance Company $ 36,818,851 $ 19,582,507 Maryland Casualty Company 18,506,132 (2,291,184) Universal Underw riters Insurance Company 14,706,075 8,510,221 Empire Fire and Marine Insurance Company 12,370,719 2,696,261 Assurance Company of America 10,665,920 (881,963) Steadfast Insurance Company 4,497,277 (29,812,744) American Zurich Insurance Company 1,853,067 2,866,803 Zurich American Insurance Company of Illinois 544,289 30,963 Universal Underw riters of Texas Insurance Company 82,846 (516,062) Northern Insurance Company of New York (172,278) 193,063 Colonial American Casualty and Surety Company (674,183) (1,924,740) Empire Indemnity Insurance Company (21,277,541) (503,254) Fidelity and Deposit Company of Maryland (25,795,268) (35,034,795) Total Pooled Affiliates $ 52,125,906 $ (37,084,924) 14.8
ANNUAL STATEMENT FOR THE YEAR 2012 OF THE ZURICH AMERICAN INSURANCE COMPANY Non- Pooled Affiliates December 31, 2012 December 31, 2011 Zurich Global Ltd $ 30,303,102 $ 2,913,273 Universal Underw riters Services Corp 10,465,582 17,434,301 Zurich Holding Company of America 8,209,113 (9,446,971) Centre Group Holdings 5,879,748 1,614,840 Zuerich Versicherungs-Gesellsc Laft, AG Group Shared Services 5,416,888 508,230 Zurich Services Corporation 4,980,257 3,635,569 ZALICO - New Business 3,372,694 4,175,503 ZIP - Netherlands Branch 2,893,827 2,671,550 Farmers Group, Inc. 2,220,995 684,279 Zurich Canadian Holdings 1,880,308 2,817,843 Zurich Insurance Company Ltd - Canadian Branch 1,502,490 2,113,290 Zurich Latin America Corporation 1,484,180 2,408,405 Zurich Alternative Asset Management 1,102,177 1,470,906 ZIC HQE 870,568 7,842,010 Universal Underw riters Insurance Services 721,775 603,633 Zurich Benefit Fiance LLC 717,410 0 ZIC - DIFC Branch 515,664 669,604 Zurich Employment Services Limited 497,101 197,367 ZALICO - Legacy - NCB 436,491 1,222,383 World Travel Protection 409,906 316,471 Zurich Insurance Bermuda Branch - Global Energy 408,185 164,654 ZIP - UK Branch 370,754 1,778,509 ZIP - Rappresentanza Generale Per I'Italia 369,303 153,392 Zurich Global Invest Advisors Ltd. 292,548 458,789 Zurich Services GMBH 224,408 48,221 Zurich American Corporation 206,110 141,585 ZIP - sucursal en Espana 189,236 (115,890) Zurich International (Bermuda) Ltd. 181,438 174,650 Zurich Services (Hong Kong) Limited 180,026 167,189 ZIP (Ireland) - Filial Sverige 94,783 (2,698) Universal Underw riters Life 91,233 (3,240,068) GRe Regular 90,489 (65,892) Zurich Insurance Company 83,010 2 Zurich Insurance Company, Ltd. 72,849 0 Zurich Seguros ALORA 66,273 1,860 PT Zurich Topas Life (Singapore) 61,790 0 Zurich Life Insurance (Singapore) Pte Ltd 48,048 0 Zurich Compañia de Seguros S.A. 42,657 89,794 ZIC Ltd, Ireland Branch 38,714 (63,488) ZIP - Niederlassung fur Deutsc 35,784 (55,521) Zurich Australain Insurance Limited 34,593 99,262 Z Vers.Gesell.AG, Regio Zürich 32,698 3,436 Zurich Sigorta A. S. 26,058 15,855 ZIP - Succursale Belgium 16,279 1,407,269 Chilena Consolidada Seguros 11,954 (1,831) ZIP - Filial Finland 10,648 (5,910) Zurich Insurance Company Ltd., Singapore 8,605 (219,274) ZIC - Global Energy 1,542 1,542 Zurich E&S Brokerage, Inc. 0 (654,501) ZIC Gre Region APAC 0 70,307 ZIC - GRI Region - Continental Europe 0 2,486,436 Zurich Global Invest. Management Europe 0 (150,803) ZIC Gre Region Middle East 0 119,882 Zurich Minas Brasil Seguros 0 (68,545) 14.9
Page 1 and 2: PROPERTY AND CASUALTY COMPANIES - A
Page 3 and 4: ANNUAL STATEMENT FOR THE YEAR 2012
Page 9 and 10: 9 ANNUAL STATEMENT FOR THE YEAR 201
Page 21: ANNUAL STATEMENT FOR THE YEAR 2012
Page 55: ANNUAL STATEMENT FOR THE YEAR 2012

ZAIC2012-1 - Zurich Producer Compensation

Create successful ePaper yourself

Delete template?

Save as template?