Financial Statements
Admitted Asset, Liabilities
and Surplus
Princeton’s 2004 financial goal was to continue improving its financial strength for the long-term. The impact of our efforts can be seen throughout the Balance Sheet.
Princeton continued to maintain its responsible investment strategy with a primary emphasis on conservative, investment grade, fixed-maturity securities. Bonds, cash, and short term investments represent 92% of invested assets with only 8% invested in preferred and common stocks.
In 2004, in keeping with our goal to continue to improve our financial strength, Princeton maintained its conservative approach in establishing loss and loss adjustment expense reserves to protect us from the inherent uncertainty of professional liability.
The surplus that an insurance company maintains is an important component in the protection it provides to its policyholders. Stockholder’s surplus improved by 23%, or $31 million dollars, to $166.6 million in 2004.