Mercury Insurance 2014 Annual Report Download - page 45
Download and view the complete annual report
Please find page 45 of the 2014 Mercury Insurance annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
RI7RWDO
&ODLPV &ORVHG 'ROODUV 3DLG
%,FODLPVFORVHGLQWKHDFFLGHQW\HDUUHSRUWHG
%,FODLPV FORVHGRQH\HDUDIWHU WKH DFFLGHQW \HDUUHSRUWHG
%,FODLPVFORVHG WZR \HDUVDIWHU WKH DFFLGHQW \HDUUHSRUWHG
%,FODLPVFORVHGWKUHH\HDUVDIWHUWKHDFFLGHQW\HDUUHSRUWHG
%, FODLPV FORVHG LQ WKH DFFLGHQW \HDU UHSRUWHG DUH JHQHUDOO\ WKH VPDOOHU DQG OHVV FRPSOH[ FODLPV WKDW VHWWOH IRU DSSUR[LPDWHO\
WR RQ DYHUDJH ZKHUHDV WKH WRWDO DYHUDJH VHWWOHPHQW RQFH DOO FODLPV DUH FORVHG LQ D SDUWLFXODU DFFLGHQW \HDU LV
DSSUR[LPDWHO\ WR 7KH &RPSDQ\ FUHDWHV LQFXUUHG DQG SDLG ORVV WULDQJOHV WR HVWLPDWH XOWLPDWH ORVVHV XWLOL]LQJ
KLVWRULFDO SD\PHQW DQG UHVHUYLQJ SDWWHUQV DQG HYDOXDWHV WKH UHVXOWV RI WKLV DQDO\VLV DJDLQVW LWV IUHTXHQF\ DQG VHYHULW\ DQDO\VLV WR
HVWDEOLVK %, UHVHUYHV 7KH &RPSDQ\ DGMXVWV GHYHORSPHQW IDFWRUV WR DFFRXQW IRU LQIODWLRQ WUHQGV LW VHHV LQ ORVV VHYHULW\ $V D ODUJHU
SURSRUWLRQ RI FODLPV IURP DQ DFFLGHQW \HDU DUH VHWWOHG WKHUH EHFRPHV D KLJKHU GHJUHH RI FHUWDLQW\ IRU WKH UHVHUYHV HVWDEOLVKHG IRU
WKDW DFFLGHQW \HDU &RQVHTXHQWO\ WKHUH LV D GHFUHDVLQJ OLNHOLKRRG RI UHVHUYH GHYHORSPHQW RQ DQ\ SDUWLFXODU DFFLGHQW \HDU DV WKRVH
SHULRGV DJH $W 'HFHPEHU WKH &RPSDQ\ EHOLHYHV WKDW WKH DFFLGHQW \HDUV WKDW DUH PRVW OLNHO\ WR GHYHORS DUH WKH
WKURXJK DFFLGHQW \HDUV KRZHYHU LW LV SRVVLEOH WKDW ROGHU DFFLGHQW \HDUV FRXOG GHYHORS DV ZHOO
,Q JHQHUDO WKH &RPSDQ\ H[SHFWV WKDW KLVWRULFDO FODLPV WUHQGV ZLOO FRQWLQXH ZLWK FRVWV WHQGLQJ WR LQFUHDVH ZKLFK LV JHQHUDOO\
FRQVLVWHQW ZLWK KLVWRULFDO GDWD DQG WKHUHIRUH WKH &RPSDQ\ EHOLHYHV WKDW LW LV UHDVRQDEOH WR H[SHFW LQIODWLRQ WR FRQWLQXH 7KH &RPSDQ\
LV H[SHULHQFLQJ LQIODWLRQ DW D UDWH WKDW LV KLJKHU WKDQ LQ UHFHQW \HDUV 0DQ\ SRWHQWLDO IDFWRUV FDQ DIIHFW WKH %, LQIODWLRQ UDWH LQFOXGLQJ
FKDQJHV LQ FODLPV KDQGOLQJ SURFHVV VWDWXWHV DQG UHJXODWLRQV WKH QXPEHU RI OLWLJDWHG ILOHV LQFUHDVHG XVH RI PHGLFDO SURFHGXUHV
VXFK DV 05,V DQG HSLGXUDO LQMHFWLRQV JHQHUDO HFRQRPLF IDFWRUV WLPHOLQHVV RI FODLPV DGMXGLFDWLRQ YHKLFOH VDIHW\ ZHDWKHU SDWWHUQV
DQG JDVROLQH SULFHV DPRQJ RWKHU IDFWRUV KRZHYHU WKH PDJQLWXGH RI VXFK LPSDFW RQ WKH LQIODWLRQ UDWH LV XQNQRZQ
7KH &RPSDQ\ EHOLHYHV WKDW LW LV UHDVRQDEO\ SRVVLEOH WKDW WKH &DOLIRUQLD DXWRPRELOH %, VHYHULW\ FRXOG YDU\ IURP UHFRUGHG
DPRXQWV E\ DV PXFK DV DQG IRU DQG UHVSHFWLYHO\)RU H[DPSOH DW 'HFHPEHU WKH ORVV
VHYHULW\ IRU WKH DPRXQWV UHFRUGHG DW 'HFHPEHU FKDQJHG E\ DQG IRU WKH DQG
DFFLGHQW \HDUV UHVSHFWLYHO\ &RPSDUDWLYHO\ DW 'HFHPEHU WKH ORVV VHYHULW\ IRU WKH DPRXQWV UHFRUGHG DW 'HFHPEHU
FKDQJHG E\ DQG IRU WKH DQG DFFLGHQW \HDUV UHVSHFWLYHO\ 7KH IROORZLQJ WDEOH SUHVHQWV
WKH HIIHFWV RQ WKH DQG DFFLGHQW \HDU &DOLIRUQLD %, ORVV UHVHUYHV EDVHG RQ SRVVLEOH YDULDWLRQV LQ WKH VHYHULW\
UHFRUGHG KRZHYHU WKH YDULDWLRQ FRXOG EH PRUH RU OHVV WKDQ WKHVH DPRXQWV
&DOLIRUQLD%RGLO\ ,QMXU\,QIODWLRQ 5HVHUYH6HQVLWLYLW\ $QDO\VLV
$FFLGHQW
<HDU
1XPEHU RI
&ODLPV
([SHFWHG
$FWXDO
5HFRUGHG
6HYHULW\DW
,PSOLHG
,QIODWLRQ 5DWH
5HFRUGHG
$ 3URIRUPD
VHYHULW\ LI DFWXDO
VHYHULW\LV ORZHU E\
IRU
IRU DQG
IRU
% 3URIRUPD
VHYHULW\ LI DFWXDO
VHYHULW\LVKLJKHU
E\
IRU
IRU DQG
IRU
)DYRUDEOHORVV
GHYHORSPHQW LI
DFWXDOVHYHULW\LV
OHVV WKDQ UHFRUGHG
&ROXPQ $
8QIDYRUDEOHORVV
GHYHORSPHQW LI
DFWXDOVHYHULW\LV
PRUH WKDQ UHFRUGHG
&ROXPQ %
± ± ± ± ±
7RWDO /RVV'HYHORSPHQW±)DYRUDEOH 8QIDYRUDEOH
,PSOLHG LQIODWLRQ UDWH LV FDOFXODWHG E\ GLYLGLQJ WKH GLIIHUHQFH EHWZHHQ FXUUHQW DQG SULRU \HDU DFWXDO UHFRUGHG VHYHULW\ E\
WKH SULRU \HDU DFWXDO UHFRUGHG VHYHULW\
&ODLP &RXQW 'HYHORSPHQW
7KH &RPSDQ\ JHQHUDOO\ HVWLPDWHV XOWLPDWH FODLP FRXQWV IRU DQ DFFLGHQW SHULRG EDVHG RQ GHYHORSPHQW RI FODLP FRXQWV LQ
SULRU DFFLGHQW SHULRGV )RU &DOLIRUQLD DXWRPRELOH %, FODLPV WKH &RPSDQ\ KDV H[SHULHQFHG WKDW DSSUR[LPDWHO\ WR DGGLWLRQDO
FODLPV ZLOO EH UHSRUWHG LQ WKH \HDU VXEVHTXHQW WR DQ DFFLGHQW \HDU +RZHYHU VXFK ODWH UHSRUWHG FODLPV FRXOG EH PRUH RU OHVV WKDQ
WKH &RPSDQ\µV H[SHFWDWLRQV 7\SLFDOO\ DOPRVW HYHU\ FODLP LV UHSRUWHG ZLWKLQ RQH \HDU IROORZLQJ WKH HQG RI DQ DFFLGHQW \HDU DQG
DW WKDW SRLQW WKH &RPSDQ\ KDV D KLJK GHJUHH RI FHUWDLQW\ DV WR ZKDW WKH XOWLPDWH FODLP FRXQW ZLOO EH