Risk Capital Reinsurance Company/Folksamerica Reinsurance Company Exhibit D to Asset Purchase Agreement Dated January 10, 2000 Assumed Business September 30, 1999 (millions)
Risk Capital Reinsurance Company/Folksamerica Reinsurance Company
Exhibit D to Asset Purchase Agreement Dated January 10, 2000
Assumed Business
September 30, 1999
(millions)
GAAP Tax
Balance Sheet Balance Sheet
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Assets
Fixed Income Securities at Market $222.6 $222.6
Cash and accrued investment income 12.9 12.9
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Sub-total invested assets 235.5 235.5
Premiums receivables 132.2 132.2
Reinsurance recoverables 8.6 8.6
Deferred acquisition costs ("DAC") 24.4 -
Deferred tax asset ("DTA") 15.1 -
Funds held 15.5 15.5
Contingent commissions recoverables 9.2 9.2
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Total Assets $440.5 $401.0
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Liabilities
Reserve for claims and claims expenses (1) $302.1 $254.6
Net unearned premium reserve (1) 105.1 85.0
Reinsurance balances payable 12.7 12.7
Contingent commissions 7.6 7.6
Funds withheld 6.9 6.9
Paid losses payable 5.6 5.6
Deferred foreign exchange gain 0.5 0.5
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Total Liabilities $440.5 $372.9
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Adjusted GAAP Book Value / Tax Basis Net Assets (2) $0.00 $28.1
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Notes:
(1) Net of applicable reinsurance recoverable amounts.
(2) Statutory surplus (deficit) of ($40.0 million) is equal to GAAP Book Value
less DAC of $24.4 million, DTA of $15.1 million, and a Schedule F penalty of $.5
million which was recorded at September 30, 1999.
