| |
Statutory Statements of Operations and Changes in Surplus
For the Years Ended December 31, 2001 and 2000
| Premiums earned: |
|
|
|
|
|
|
| Gross
premiums written and assumed |
|
$273,673
|
|
|
$232,809
|
|
| Less
reinsurance premiums ceded |
|
37,300
|
|
|
38,357
|
|
|
NET
PREMIUMS WRITTEN
|
|
236,373 |
|
|
194,452
|
|
| Change
in unearned premiums |
|
(31,452
|
)
|
|
(10,746
|
)
|
|
NET
PREMIUMS EARNED
|
|
204,921
|
|
|
183,706
|
|
| Underwriting
expenses: |
|
|
|
|
|
|
| Losses
and loss adjustment expenses |
|
208,147
|
|
|
169,641
|
|
Commission
expenses, net of reinsurance
commissions of $4,912 in 2001
and
$11,262 in 2000 |
|
25,824
|
|
|
18,360
|
|
| Other
underwriting expenses |
|
25,890
|
|
|
23,448
|
|
|
TOTAL
UNDERWRITING EXPENSES
|
|
259,861
|
|
|
211,449
|
|
|
LOSS
FROM UNDERWRITING
|
|
(54,940
|
)
|
|
(27,743
|
)
|
| Investment
income, net |
|
30,854
|
|
|
34,631
|
|
| Net realized
capital (loss) gains |
|
(841
|
)
|
|
3,393
|
|
| Other income
(expense) net |
|
688
|
|
|
(3,679
|
)
|
|
(LOSS)
INCOME BEFORE DIVIDENDS TO POLICYHOLDERS
AND FEDERAL INCOME TAX EXPENSE
|
|
(24,239 |
)
|
|
6,602 |
|
| Dividends to
policyholders |
|
257
|
|
|
(586
|
)
|
|
(LOSS)
INCOME BEFORE FEDERAL TAX EXPENSE
|
|
(24,496
|
)
|
|
7,188
|
|
| Federal income
tax (benefit) expense |
|
(88
|
)
|
|
2,659
|
|
|
NET
(LOSS) INCOME
|
|
$(24,408
|
)
|
|
$4,529
|
|
| Surplus, beginning
of year |
|
$143,743
|
|
|
$142,580
|
|
| Net
(loss) income |
|
(24,408
|
)
|
|
4,529
|
|
| Net
unrealized capital gains (losses) |
|
3,871
|
|
|
(8,831
|
)
|
| Cumulative
effect of changes in accounting principles |
|
22,313
|
|
|
—
|
|
| Change
in: |
|
|
|
|
|
|
| Deferred
income tax |
|
6,461
|
|
|
—
|
|
| Nonadmitted
assets |
|
(8,714
|
)
|
|
(1,002
|
)
|
| Excess
statutory reserves |
|
—
|
|
|
(2,694
|
)
|
| Provision
for reinsurance |
|
(1,664
|
)
|
|
1,637
|
|
| Provision
for premium deficiency |
|
—
|
|
|
9,170
|
|
| Prior
year retirement plan adjustment |
|
—
|
|
|
(1,646
|
)
|
|
Surplus,
end of year
|
|
$141,602 |
|
|
$143,743 |
|
See accompanying
notes to statutory financial statements
|
|
TABLE
OF CONTENTS
Cover Page
Letter to Policyholders
A Year of Market Turmoil
Princeton's Legacy Continues
2001 Financial Statements
|
