EX-99.(X) 4 a2084441zex-99_x.txt EXHIBIT 99(X) EXHIBIT 99(x) CGU CORPORATION (A Wholly-Owned Subsidiary of CGNU plc) Consolidated Balance Sheet March 31, 2001 (Dollars in Thousands, except for per share amount) ------------------------------------------------------------------------------
2001 ASSETS Fixed maturity investments at fair value (amortized cost $8,942,827) $ 9,047,350 Common equity securities at fair value (cost $8,218) 14,558 Preferred equity securities at fair value (cost $116,414) 144,500 Short-term investments, at amortized cost (which approximates fair value) 159,726 Other Investments 47,326 ------------------- Total investments 9,413,460 Cash 52,138 Insurance balances receivable 1,294,501 Reinsurance recoverable on paid and unpaid losses 1,587,291 Deferred policy acquisition costs 341,638 Investment income accrued 90,536 Net deferred federal income taxes 261,895 Other assets 559,001 Net assets of discontinued operations 508,000 ------------------- Total assets $ 14,108,460 ------------------- LIABILITIES Loss and loss adjustment expense reserves $ 6,925,527 Unearned insurance premiums 1,926,041 Long-term debt 1,103,150 Net deferred federal income taxes - Accounts payable and other liabilities 985,654 ------------------- Total liabilities 10,940,372 ------------------- SHAREHOLDERS' EQUITY Common Stock, $1.00 par value; authorized 100,000 shares, 16,022 shares outstanding 16 Additional paid-in capital 753,200 Retained earnings 2,308,836 Accumulated other comprehensive income 106,036 ------------------- Total shareholders' equity 3,168,088 ------------------- Total liabilities and shareholders' equity $ 14,108,460 -------------------
CGU CORPORATION (A Wholly-Owned Subsidiary of CGNU plc) Consolidated Statements of Income and Comprehensive Income For the Three Months Ended March 31, 2001 and 2000 (Dollars in Thousands) ------------------------------------------------------------------------------
2001 2000 REVENUES: Earned insurance premiums $ 1,043,088 $ 1,065,421 Net investment income 123,947 122,644 Net realized gains from investment securities and other investments 402,171 21,147 -------------------- ------------------- Total revenues 1,569,206 1,209,212 -------------------- ------------------- EXPENSES: Losses and loss adjustment expenses 814,322 765,771 Underwriting and other operating expenses 435,863 339,225 -------------------- ------------------- Total expenses 1,250,185 1,104,996 -------------------- ------------------- Pretax Earnings 319,022 104,216 Federal income tax provision (129,872) (24,062) -------------------- ------------------- Net income from continuing operations 189,149 80,154 Income from discontinued operations - 7,234 Loss on disposal of discontinued operations (16,040) - -------------------- ------------------- NET INCOME 173,109 87,388 Other comprehensive income, net of tax; Increase (decrease) in net unrealized appreciation of investments (196,155) 91,110 Loss on foreign currency exchange (7,572) (1,763) -------------------- ------------------- COMPREHENSIVE NET INCOME (LOSS) $ (30,618) $ 176,735 -------------------- -------------------
CGU CORPORATION (A Wholly-Owned Subsidiary of CGNU plc) Consolidated Statements of Cash Flows For the Three Months Ended March 31, 2001 and 2000 (Dollars in Thousands) -------------------------------------------------------------------------------
2001 2000 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 173,109 $ 87,388 Adjustments to reconcile net income to net cash provided by operating activities: Loss on disposal of discontinued operations 16,040 - Net income from discontinued operations - (7,234) Amortization of bond premium and discount (26,502) (377) Net realized gains from investment securities and other assets (402,171) (21,147) Depreciation and amortization 6,703 6,752 Deferred federal income taxes (34,174) (4,423) Change in operating assets and liabilities: Reinsurance recoverable on paid and unpaid losses 263,683 56,675 Deferred policy acquisition costs 79,172 (4,487) Loss and loss adjustment expense reserves (57,201) (198,402) Unearned insurance premiums (116,427) 13,658 Insurance balances receivable (167,753) (109,588) Net change in other assets and liabilities 128,382 (31,964) -------------- -------------- Net cash used by operating activities (137,139) (213,149) -------------- -------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of investments: Fixed maturity investments (3,467,644) (1,246,646) Common equity securities (24,677) (259,414) Preferred equity securities - - Net increase in short-term investments 161,447 180,944 Net increase in other invested assets 51,426 1,912 Proceeds from the sales of investments: Fixed maturity investments 2,619,859 1,296,459 Common equity securities 733,438 282,030 Preferred equity securities 100 1,535 Maturities of fixed maturity investments 90,190 73,085 Purchases of equipment, net (2,195) (2,639) Development of computer software (7,743) (8,118) -------------- -------------- Net cash provided by investing activities 154,201 319,148 -------------- -------------- CASH FLOWS FROM FINANCING ACTIVITIES: Long-term debt (10,750) - -------------- -------------- Net cash used by financing activities (10,750) - -------------- -------------- Net increase in cash 6,312 105,999 Cash and cash equivalents, beginning of period 45,826 50,800 -------------- -------------- Cash and cash equivalents, end of period $ 52,138 $ 156,799 -------------- --------------