ZAIC2012-1 - Zurich Producer Compensation

More documents

Recommendations

Info

ANNUAL STATEMENT FOR THE YEAR 2012 OF THE ZURICH AMERICAN INSURANCE COMPANY E. Commutation of Ceded Reinsurance The Company has reported in its operations in the current year as a result of commutation reinsurance with the companies listed below, amounts that are reflected as: Amount Losses incurred $ 71,738,414 Loss adjustment expenses incurred 11,257,440 Premium earned 407 Other - Total $ 82,996,261 Company Amount Continental Casualty Ins. $ 21,350,000 Sw iss Reinsurance American Corp./Westport Insurance Corp. 17,837,048 American United Life Ins. 17,750,000 Centre RE US Ltd 8,690,981 <strong>Zurich</strong> Branch Group Re 5,596,777 Resolute Management Services 2,500,000 Travelers Indemnity Co./St.Paul Fire & Marine Insurance Co. 2,400,000 American Alternative Ins. 2,350,000 Markel International Ins. Co. LTD 1,200,000 Argonaut Ins. Co. 979,000 Blueprint Ins & Cs Ltd 932,000 CX Reinsurance 700,000 Eagle Star Ins. Co./Sw iss Re Specialty Ins UK 325,000 <strong>Zurich</strong> International Bermuda 273,223 PXRE Reins. Co. 70,000 Eagle Star Ins. Co. 21,000 Hannover Rueck 20,000 Aeroquip-Vickers Assur 1,231 Total $ 82,996,260 F. Retroactive Reinsurance The Company’s retroactive reinsurance transactions are as follows: Assumed Ceded a. Reserves Transferred: Initial reserves $ 113,591,357 $ - Adjustments - prior year(s) (4,340,537) - Adjustments - current year 2,510,812 - Current total $ 111,761,632 $ - b. Consideration Paid or Received: Initial reserves $ 95,922,663 $ - Adjustments - prior year(s) - - Adjustments - current year - - Current total $ 95,922,663 $ - c. Paid Losses Reimbursed or Recovered: Prior year(s) $ 96,117,822 $ - Current year 1,344,190 - Current total $ 97,462,012 $ - d. Special Surplus from Retroactive Reinsurance: Initial surplus gain or loss $ - $ - Adjustments - prior year(s) - - Adjustments - current year - - Current year restricted surplus - - Cumulative total transferred to unassigned funds $ - $ - Additionally, certain reinsurance contracts which were issued subsequent to January 1, 1994 which were still in-force as of December 31, 2012 and 2011, respectively, had either not been signed within nine months of the commencement of the policy period covered by the reinsurance agreement or provided coverage for past insured events. Accordingly, such contracts are presumed to be retroactive and the Company has restricted $43 million and $56 million of unassigned surplus as of December 31, 2012 and 2011, respectively. The Company also determined that these amounts were immaterial to the multiple financial statement line items, schedules, and exhibits and therefore did not reflect the components of the change from prospective to retroactive reinsurance accounting. The retroactive amounts recorded within reinsurance assets totaled $69 million and $87 14.22
ANNUAL STATEMENT FOR THE YEAR 2012 OF THE ZURICH AMERICAN INSURANCE COMPANY million as of December 31, 2012 and 2011, respectively. These reinsurance contracts did pass risk transfer and remain valid, legal and enforceable. e. All cedents and reinsurers involved in all transactions included in the summary totals above as follows: Reinsurer NAIC Code Assumed Ceded The Healthcare Company N/A $ 69,347,363 $ - Time-Warner N/A 17,444,370 - Diamond International N/A 8,997,924 - STARM N/A 7,306,265 - Shelby Casualty Insurance Company 30503 5,940,257 - Other N/A 2,725,453 - Total $ 111,761,632 $ - f. List total paid loss and LAE amounts ceded and amounts more than 90 days overdue, and collateral held as respects amounts recoverable from such reinsurers above: (1) Authorized Reinsurers None (2) Unauthorized Reinsurers None G. Reinsurance Accounted for as a Deposit According to Statement of Statutory Accounting Principle No. 62, Property and Casualty Reinsurance, the Company has accounted for five ceded reinsurance agreements which were determined to be of a deposit nature. As of December 31, 2012, these contracts had balances as follows: Description Cash Reserves Balance at Adjustments Deposit Balance December 31, 2012 Contract #1 Initial Payment $ - $ - $ 12,950,595 Prior Years 11,484,555 (83,684) 1,382,356 End of year 2011 176,783 (992,420) 213,153 End of year 2012 100,810 45,040 157,383 $ 157,383 Contract #2 Initial Payment - - 1,982,560 Prior Years - (1,774,675) 207,885 End of year 2011 - (53,260) 154,625 End of year 2012 - 930,121 1,084,746 $ 1,084,746 Contract #3 Initial Payment - - 8,125,000 End of year 2011 - (8,125,000) - End of year 2012 167,640 167,640 - $ - $ 1,242,129 Additionally, certain contracts were identified by the Company that were accounted for as reinsurance but did not pass risk transfer. Accordingly, the Company recorded adjustments to the statement of income for $40,000 and $161,000 for 2012 and 2011, respectively. The Company also determined that these amounts were immaterial to the multiple financial statement line items, schedules, and exhibits and therefore did not reflect the components of the change from reinsurance to deposit accounting. The deposit amounts recorded within reinsurance assets totaled $10.1 million and $8.3 million as of December 31, 2012 and 2011, respectively. H. Transfer of Property and Casualty Run-off Agreements None I. Certified Reinsurers (1) N/A (2) N/A 24. RETROSPECTIVELY RATED CONTRACTS AND CONTRACTS SUBJECT TO REDETERMINATION A. The Company estimates accrued retrospective premium adjustments by estimating the premium impact related to the losses and allocated loss adjustment expenses that are expected to be used in future retrospective premium adjustment calculations. B. The accrued retrospective premiums are recorded through an adjustment to earned premiums. C. See Schedule P - Part 7A. D. The Company did not pay or incur any medical loss ratio rebates during 2012. 14.23
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 35: 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?