EX-99.1 6 dex991.txt FINANCIAL DATA SCHEDULES Exhibit 99.1 MUTUAL RISK MANAGEMENT LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY BALANCE SHEETS
As of December 31, - ---------------------------- 2000 1999 - ------------- ------------- ASSETS Cash and cash equivalents................................................... $ 339,175 $ 6,721,527 Investments................................................................. 12,017,747 9,664,914 Investments in subsidiaries and affiliates.................................. 590,117,374 570,072,530 Due from subsidiaries and affiliates........................................ -- 542,308 Other assets................................................................ 423,968 2,319,150 ------------- ------------- Total Assets................................................................ $ 602,898,264 $ 589,320,429 ============= ============= LIABILITIES & SHAREHOLDERS' EQUITY LIABILITIES Accounts payable and accrued expenses....................................... $ 1,361 $ 393,741 Other liabilities........................................................... 2,912,861 2,894,665 Due to subsidiaries and affiliates.......................................... 164,778,873 -- Debentures.................................................................. 13,672,737 110,898,002 Loans payable............................................................... 70,000,000 117,000,000 ------------- ------------- Total liabilities........................................................... 251,365,832 231,176,408 ------------- ------------- SHAREHOLDERS' EQUITY Common Shares--Authorized 180,000,000 (par value $0.01), issued 41,614,649 (excluding 2,728,816 cumulative shares held in treasury) (1999-41,205,191) 416,146 412,052 Additional paid-in capital.................................................. 117,187,738 110,754,754 Accumulated other comprehensive (loss)...................................... (10,836,478) (14,937,127) Retained earnings........................................................... 244,765,026 261,914,342 ------------- ------------- Total Shareholders' Equity.................................................. 351,532,432 358,144,021 ------------- ------------- Total Liabilities & Shareholders' Equity.................................... $ 602,898,264 $ 559,320,429 ============= =============
See Notes to Consolidated Financial Statements. FS-1 MUTUAL RISK MANAGEMENT LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT--PARENT COMPANY ONLY STATEMENTS OF (LOSS) INCOME
Years ended December 31, --------------------------------------- 2000 1999 1998 ------------ ------------ ----------- NET INVESTMENT INCOME............................................ $ 2,599,832 $ 1,008,904 $ 2,171,384 Operating expenses............................................... 157,671 141,055 141,140 Interest expense................................................. 12,251,935 573,200 -- Amortization of debentures....................................... 1,396,167 5,996,459 6,605,238 ------------ ------------ ----------- LOSS BEFORE EXTRAORDINARY LOSS AND EQUITY IN EARNINGS OF SUBSIDIARIES....................................... (11,205,941) (5,701,810) (4,574,994) Extraordinary loss on extinguishment of debentures, net of tax... (6,827,242) (181,742) -- ------------ ------------ ----------- LOSS BEFORE EQUITY IN EARNINGS OF SUBSIDIARIES................... (18,033,183) (5,883,552) (4,574,894) Undistributed equity in earnings of subsidiaries................. 12,451,227 56,321,584 69,102,196 ------------ ------------ ----------- NET (LOSS) INCOME AVAILABLE TO COMMON SHAREHOLDERS................................................... OTHER COMPREHENSIVE INCOME (LOSS) NET OF TAX..................... 5,581,956 50,438,032 64,527,202 Unrealized gains (losses) on investments, net of reclassification adjustment..................................................... 4,100,649 (19,393,912) 421,385 ------------ ------------ ----------- COMPREHENSIVE (LOSS) INCOME...................................... $ 1,481,307 $ 31,044,120 $64,948,587 ============ ============ ===========
See notes to Consolidated Financial Statements FS-2 MUTUAL RISK MANAGEMENT LTD. CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARENT COMPANY ONLY STATEMENTS OF CASH FLOW
Years ended December 31, ----------------------------------------- 2000 1999 1998 ------------- ------------ ------------ NET CASH FLOW FROM OPERATING ACTIVITIES Net loss before equity in earnings of subsidiaries.............. $ (18,033,183) $ (5,883,552) $ (4,574,994) Items not affecting cash: Amortization of debentures..................................... 1,396,167 5,996,459 6,605,238 Amortization of investments.................................... -- (1,092,079) (1,108,773) Extraordinary loss on extinguishment of debt................... 6,827,242 -- -- Other items.................................................... (4,123,544) -- -- Net changes in non-cash balances relating to operations: Other assets................................................... 1,895,182 52,755 239,191 Accounts payable and accrued expenses.......................... (392,380) 392,815 (6,592) ------------- ------------ ------------ NET CASH FLOW (APPLIED TO) FROM OPERATING ACTIVITIES.................................................... (12,430,516) (533,602) (1,074,060) ------------- ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Cost of investments............................................ (2,230,750) -- (15,942,997) Proceeds from sale of investments.............................. -- -- 30,475,717 Investments in and advances to subsidiaries and affiliates, net 161,706,134 (74,184,650) (13,957,919) ------------- ------------ ------------ NET CASH FROM (APPLIED TO) INVESTING ACTIVITIES................. 159,475,384 (74,184,650) 574,801 ------------- ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from shares issued................................ 7,824,179 11,209,642 8,055,217 Purchase of Treasury shares.................................... (1,387,105) (29,813,837) -- Extinguishment of convertible debentures....................... (101,325,130) (6,163,258) -- Loans payable received (repaid)................................ (47,000,000) 117,000,000 -- Subscription loans receivable.................................. -- -- 383,761 Loan interest received......................................... -- -- 4,922 Dividends paid................................................. (11,539,164) (11,482,028) (10,427,321) ------------- ------------ ------------ NET CASH FLOWS (APPLIED TO) FROM FINANCING ACTIVITIES.................................................... (153,427,220) 80,750,519 (1,983,421) ------------- ------------ ------------ Net (decrease) increase in cash and cash equivalents............ (6,382,352) 6,032,267 (334,560) Cash and cash equivalents at beginning of year.................. 6,721,527 689,260 1,023,820 ------------- ------------ ------------ Cash and cash equivalents at end of year........................ $ 339,175 $ 6,721,527 $ 689,260 ============= ============ ============
See Notes to Consolidated Financial Statements FS-3 SCHEDULE VI MUTUAL RISK MANAGEMENT LTD. SUPPLEMENTARY INSURANCE INFORMATION (U.S. DOLLARS IN THOUSANDS)
Gross Reserve for Deferred Unpaid Gross Policy Claims and Discount if Gross Net Net Year ended December 31, Acquisition Claims any, Unearned Earned Investment Property-Casualty Costs Expenses Deducted(1) Premiums Premiums Income ----------------- ----------- ----------- ----------- -------- -------- ---------- 2000.......... 52,047 2,447,957 58,087 423,342 245,828 20,955 1999.......... 20,531 1,860,120 39,538 335,265 181,798 17,466 1998.......... 17,948 1,190,426 36,213 241,893 101,913 16,357
Net Claim and Claims Expenses Incurred Amortization Net Paid Related to (1) of Deferred Claims -------------------- Policy and Net Other Year ended December 31, Current Acquisition Claims Premiums Operating Property-Casualty Year Prior Year Cost Expenses Written Expenses ----------------- ------- ---------- ------------ -------- -------- --------- 2000.......... 157,813 69,292 101,377 132,529 204,479 43,391 1999.......... 146,414 1,291 51,582 128,384 200,517 42,857 1998.......... 74,476 3,782 26,061 53,158 104,948 30,164
-------- (1) Medical malpractice reserves have been discounted at 6%. Workers' compensation reserves have been discounted at 4%. FS-4