-12-
Taxable year Cumulative Reserves for Total expected
ending claims paid4 unpaid losses5 losses6
Dec. 31, 1992 $4,376,000 $22,994,000 $27,370,000
Dec. 31, 1993 9,541,000 18,441,000 27,982,000
Dec. 31, 1994 12,983,000 17,149,000 30,132,000
Dec. 31, 1995 18,531,000 8,920,000 27,451,000
4 Cumulative claims paid were obtained from part 1 of schedule P of
Crossroads' annual statements filed with the Departments of Insurance for the
States of Florida and Louisiana for 1992 to 1995. For each year, cumulative
claims paid are the net of columns 5 and 6 for policy years before 1993.
Policy years after 1992 are excluded to obtain the relevant information for
reinsurance policies written as of Dec. 31, 1992.
5 Reserves for unpaid losses were obtained from part 1 of schedule P of
Crossroads' annual statements filed with the Departments of Insurance for the
States of Florida and Louisiana for 1992 to 1995. For each year, reserves for
unpaid losses are the total of column 23 (column 22 for 1992) reduced by
reserves for policy years after 1992. Policy years after 1992 are excluded to
obtain the relevant information for reinsurance policies written as of Dec.
31, 1992.
6 Total expected losses are the sum of cumulative claims paid and
reserves for unpaid losses.
Crossroads' shareholders are liable for tax on its income
from selling reinsurance policies to self-insurer funds in the
United States. Sec. 957(b). Crossroads pays dividends to its
shareholders partly to enable them to pay taxes on their
Crossroads' income.
F. Economic Conditions in 1991-92
The workers' compensation market in Florida in 1991 and 1992
was chaotic. Insurance rates were rising about 20-25 percent per
year and claims exceeded premiums.
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011