Attached files
| file | filename |
|---|---|
| EX-99.1 - REGISTRANT'S PRESS RELEASE DATED MAY 3, 2011 - KEMPER Corp | dex991.htm |
| 8-K - FORM 8-K - KEMPER Corp | d8k.htm |
Exhibit 99.2
Investor Supplement
First Quarter 2011
The financial statements and financial exhibits included herein are unaudited. These financial statements and exhibits should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed subsequent to such Form 10-K. The results of operations for interim periods should not be considered indicative of results to be expected for the full year.
Non-GAAP Financial Measures
This document contains non-GAAP financial measures to analyze the Company’s operating performance for the periods presented. Because the Company’s calculation of these measures may differ from similar measures used by other companies, investors should be careful when comparing the Company’s non-GAAP financial measures to those of other companies. For detailed disclosures on non-GAAP financial measures please refer to the “Definitions of Non-GAAP Financial Measures” on Page 19.
Unitrin, Inc.
Investor Supplement
First Quarter 2011
Table of Contents
| Page | ||||
| GAAP Highlights |
3 | |||
| Segment Revenues |
4 | |||
| Segment Operating Results |
5 | |||
| Combined Property and Casualty Operations |
6 | |||
| Kemper Segment |
7 | |||
| Unitrin Specialty Segment |
8 | |||
| Unitrin Direct Segment |
9 | |||
| Life and Health Insurance Segment |
10 | |||
| Consolidated Balance Sheets |
11 | |||
| Consolidated Statements Of Operations |
12 | |||
| Capital Metrics |
13 | |||
| Investment Performance |
14 | |||
| Invested Assets |
15 | |||
| Investment Concentration |
16 | |||
| Municipal Bond Securities |
17 | |||
| Investments in Limited Liability Investment Companies and Limited Partnerships |
18 | |||
| Definitions of Non-GAAP Financial Measures |
19 | |||
2 of 19
Unitrin, Inc.
Consolidated Financial Highlights
(Dollars in Millions, Except Per Share Amounts)
(Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, | Dec. 31, | Sept. 30, | June 30, | March 31, | ||||||||||||||||
| 2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
| For Period Ended |
||||||||||||||||||||
| Earned Premiums |
$ | 546.0 | $ | 561.6 | $ | 568.2 | $ | 578.1 | $ | 581.5 | ||||||||||
| Automobile Finance Revenues |
15.5 | 19.1 | 22.6 | 26.7 | 30.6 | |||||||||||||||
| Net Investment Income |
81.6 | 85.1 | 79.9 | 81.8 | 80.8 | |||||||||||||||
| Net Investment Gains and Other Income |
14.3 | 24.5 | 3.0 | (1.7 | ) | 1.6 | ||||||||||||||
| Total Revenues |
$ | 657.4 | $ | 690.3 | $ | 673.7 | $ | 684.9 | $ | 694.5 | ||||||||||
| Income (Loss) from Continuing Operations |
$ | 55.8 | $ | 61.5 | $ | 35.5 | $ | 39.1 | $ | 47.7 | ||||||||||
| Net Income (Loss) |
$ | 54.1 | $ | 62.9 | $ | 35.7 | $ | 37.8 | $ | 48.2 | ||||||||||
| Income (Loss) from Continuing Operations |
||||||||||||||||||||
| Per Unrestricted Share: |
||||||||||||||||||||
| Basic |
$ | 0.92 | $ | 1.00 | $ | 0.57 | $ | 0.63 | $ | 0.76 | ||||||||||
| Diluted |
$ | 0.92 | $ | 1.00 | $ | 0.57 | $ | 0.63 | $ | 0.76 | ||||||||||
| Net Income (Loss) Per Unrestricted Share: |
||||||||||||||||||||
| Basic |
$ | 0.89 | $ | 1.03 | $ | 0.58 | $ | 0.61 | $ | 0.77 | ||||||||||
| Diluted |
$ | 0.89 | $ | 1.03 | $ | 0.58 | $ | 0.61 | $ | 0.77 | ||||||||||
| Dividends Paid to Shareholders Per Share |
$ | 0.24 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||
| At Period End |
||||||||||||||||||||
| Total Assets |
$ | 8,230.0 | $ | 8,358.5 | $ | 8,540.9 | $ | 8,507.9 | $ | 8,512.0 | ||||||||||
| Insurance Reserves |
$ | 4,169.4 | $ | 4,182.4 | $ | 4,185.4 | $ | 4,198.3 | $ | 4,217.2 | ||||||||||
| Notes Payable |
$ | 610.0 | $ | 609.8 | $ | 561.9 | $ | 561.8 | $ | 561.6 | ||||||||||
| Shareholders’ Equity |
$ | 2,116.5 | $ | 2,113.4 | $ | 2,200.3 | $ | 2,068.2 | $ | 1,977.6 | ||||||||||
| Shareholders’ Equity Excluding Goodwill |
$ | 1,804.7 | $ | 1,801.6 | $ | 1,888.5 | $ | 1,741.6 | $ | 1,645.8 | ||||||||||
| Common Shares Issued and Outstanding (In Millions) |
60.453 | 61.067 | 61.450 | 61.925 | 62.464 | |||||||||||||||
| Book Value Per Share1 |
$ | 35.01 | $ | 34.61 | $ | 35.81 | $ | 33.40 | $ | 31.66 | ||||||||||
| Book Value Per Share Excluding Goodwill1 |
$ | 29.85 | $ | 29.50 | $ | 30.73 | $ | 28.12 | $ | 26.35 | ||||||||||
| Book Value Per Share Excluding Unrealized on Fixed Maturities1 |
$ | 32.55 | $ | 32.11 | $ | 31.36 | $ | 30.14 | $ | 29.79 | ||||||||||
| Debt to Total Capitalization1 |
22.4 | % | 22.4 | % | 20.3 | % | 21.4 | % | 22.1 | % | ||||||||||
| Rolling 12 Months Return on Simple Average Shareholders Equity2 |
9.3 | % | 9.2 | % | 9.2 | % | 11.4 | % | 12.3 | % | ||||||||||
| Rolling 12 Months Return on 5-point Average Shareholders Equity2 |
9.1 | % | 9.0 | % | 9.3 | % | 11.2 | % | 12.1 | % | ||||||||||
| A.M. Best | Moody’s | S&P | Fitch | |||||||||||||||||
| As of Date of Financial Supplement |
||||||||||||||||||||
| Unitrin Debt Ratings: |
||||||||||||||||||||
| Senior Notes Payable |
bbb- | Baa3 | BBB- | BBB- | ||||||||||||||||
| Insurance Company Financial Strength Ratings: |
||||||||||||||||||||
| Trinity Universal Insurance Company |
A- | A3 | A- | A- | ||||||||||||||||
| United Insurance Company of America |
A- | A3 | A | A- | ||||||||||||||||
| Reserve National Insurance Company |
A- | |||||||||||||||||||
| 1 | See Capital Metrics for detail calculations. |
| 2 | Rolling 12 Months Return on Average Shareholders Equity is calculated by taking the last 12 months of Net Income (Loss) divided by the average Shareholders’ Equity. Simple Average Shareholders’ Equity is calculated by using average of Beginning and Ending Shareholders’ Equity for the 12 month period. 5-point Average Shareholders’ Equity is calculated by using a 5-point quarter average of Shareholders’ Equity for the 12 month period. |
3 of 19
Unitrin, Inc.
Segment Revenues
(Dollars In Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Kemper: |
||||||||||||||||||||
| Earned Premiums |
$ | 211.9 | $ | 220.9 | $ | 221.8 | $ | 222.9 | $ | 222.4 | ||||||||||
| Net Investment Income |
14.1 | 14.2 | 12.3 | 13.9 | 12.4 | |||||||||||||||
| Other Income |
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||
| Total Kemper |
226.1 | 235.2 | 234.2 | 236.9 | 234.9 | |||||||||||||||
| Unitrin Specialty: |
||||||||||||||||||||
| Earned Premiums |
112.4 | 115.0 | 117.0 | 120.5 | 122.4 | |||||||||||||||
| Net Investment Income |
6.3 | 6.3 | 5.7 | 6.7 | 6.1 | |||||||||||||||
| Other Income |
0.1 | 0.1 | 0.2 | 0.1 | 0.2 | |||||||||||||||
| Total Unitrin Specialty |
118.8 | 121.4 | 122.9 | 127.3 | 128.7 | |||||||||||||||
| Unitrin Direct: |
||||||||||||||||||||
| Earned Premiums |
59.9 | 64.8 | 68.6 | 73.0 | 76.0 | |||||||||||||||
| Net Investment Income |
5.4 | 5.4 | 4.8 | 5.9 | 5.3 | |||||||||||||||
| Other Income |
— | — | — | 0.1 | — | |||||||||||||||
| Total Unitrin Direct |
65.3 | 70.2 | 73.4 | 79.0 | 81.3 | |||||||||||||||
| Life and Health Insurance: |
||||||||||||||||||||
| Earned Premiums |
161.8 | 160.9 | 160.8 | 161.7 | 160.7 | |||||||||||||||
| Net Investment Income |
53.0 | 55.9 | 53.8 | 51.3 | 53.3 | |||||||||||||||
| Other Income |
— | 0.1 | 0.1 | — | — | |||||||||||||||
| Total Life and Health Insurance |
214.8 | 216.9 | 214.7 | 213.0 | 214.0 | |||||||||||||||
| Fireside Bank: |
||||||||||||||||||||
| Interest, Loan Fees and Earned Discounts |
15.4 | 18.7 | 22.4 | 26.3 | 30.2 | |||||||||||||||
| Other Automobile Finance Revenues |
0.1 | 0.4 | 0.2 | 0.4 | 0.4 | |||||||||||||||
| Automobile Finance Revenues |
15.5 | 19.1 | 22.6 | 26.7 | 30.6 | |||||||||||||||
| Net Investment Income |
0.4 | 0.4 | 0.5 | 0.5 | 0.5 | |||||||||||||||
| Total Fireside Bank |
15.9 | 19.5 | 23.1 | 27.2 | 31.1 | |||||||||||||||
| Total Segment Revenues |
640.9 | 663.2 | 668.3 | 683.4 | 690.0 | |||||||||||||||
| Net Realized Gains on Sales of Investments |
14.5 | 28.0 | 7.2 | 2.9 | 4.5 | |||||||||||||||
| Net Impairment Losses Recognized in Earnings |
(0.4 | ) | (3.8 | ) | (4.6 | ) | (4.9 | ) | (3.2 | ) | ||||||||||
| Other |
2.4 | 2.9 | 2.8 | 3.5 | 3.2 | |||||||||||||||
| Total Revenues |
$ | 657.4 | $ | 690.3 | $ | 673.7 | $ | 684.9 | $ | 694.5 | ||||||||||
4 of 19
Unitrin, Inc.
Segment Operating Results
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Segment Operating Profit (Loss): |
||||||||||||||||||||
| Kemper |
$ | 14.2 | $ | 9.9 | $ | 17.1 | $ | 17.6 | $ | 19.3 | ||||||||||
| Unitrin Specialty |
5.1 | 1.6 | 8.0 | 7.5 | 7.5 | |||||||||||||||
| Unitrin Direct |
(7.4 | ) | (5.4 | ) | (1.5 | ) | 0.9 | (1.1 | ) | |||||||||||
| Life and Health |
50.8 | 53.1 | 26.9 | 33.5 | 40.5 | |||||||||||||||
| Fireside Bank |
11.7 | 9.9 | 5.3 | 4.6 | 4.8 | |||||||||||||||
| Total Segment Operating Profit |
74.4 | 69.1 | 55.8 | 64.1 | 71.0 | |||||||||||||||
| Net Realized Gains on Sales of Investments |
14.5 | 28.0 | 7.2 | 2.9 | 4.5 | |||||||||||||||
| Net Impairment Losses Recognized in Earnings |
(0.4 | ) | (3.8 | ) | (4.6 | ) | (4.9 | ) | (3.2 | ) | ||||||||||
| Other Expense, Net |
(9.2 | ) | (6.8 | ) | (6.2 | ) | (5.7 | ) | (6.1 | ) | ||||||||||
| Income from Continuing Operations before Income Taxes and Equity in Net Income (Loss) of Investee |
$ | 79.3 | $ | 86.5 | $ | 52.2 | $ | 56.4 | $ | 66.2 | ||||||||||
| Segment Net Income (Loss): |
||||||||||||||||||||
| Kemper |
$ | 11.3 | $ | 9.0 | $ | 13.5 | $ | 13.5 | $ | 14.6 | ||||||||||
| Unitrin Specialty |
4.2 | 2.2 | 6.2 | 6.0 | 5.8 | |||||||||||||||
| Unitrin Direct |
(3.8 | ) | (1.9 | ) | 0.3 | 0.4 | 0.1 | |||||||||||||
| Life and Health |
32.7 | 34.6 | 12.4 | 21.5 | 26.4 | |||||||||||||||
| Fireside Bank |
8.0 | 5.8 | 3.2 | 2.7 | 3.0 | |||||||||||||||
| Total Segment Net Income |
52.4 | 49.7 | 35.6 | 44.1 | 49.9 | |||||||||||||||
| Net Income (Loss) From: |
||||||||||||||||||||
| Net Realized Gains on Sales of Investments |
9.4 | 18.4 | 4.7 | 1.9 | 2.9 | |||||||||||||||
| Net Impairment Losses Recognized in Earnings |
(0.3 | ) | (2.4 | ) | (3.0 | ) | (3.2 | ) | (2.1 | ) | ||||||||||
| Other Expense, Net |
(5.7 | ) | (4.2 | ) | (1.5 | ) | (3.2 | ) | (3.7 | ) | ||||||||||
| Income from Continuing Operations before Equity in Net Income (Loss) of Investee |
55.8 | 61.5 | 35.8 | 39.6 | 47.0 | |||||||||||||||
| Equity in Net Income (Loss) of Investee |
— | — | (0.3 | ) | (0.5 | ) | 0.7 | |||||||||||||
| Income from Continuing Operations |
$ | 55.8 | $ | 61.5 | $ | 35.5 | $ | 39.1 | $ | 47.7 | ||||||||||
| Earned Premiums by Product: |
||||||||||||||||||||
| Life |
$ | 99.4 | $ | 98.4 | $ | 98.8 | $ | 100.0 | $ | 99.5 | ||||||||||
| Accident and Health |
41.2 | 41.4 | 40.5 | 40.1 | 39.9 | |||||||||||||||
| Property and Casualty: |
||||||||||||||||||||
| Personal Lines: |
||||||||||||||||||||
| Automobile |
287.1 | 302.1 | 308.3 | 316.9 | 322.2 | |||||||||||||||
| Homeowners |
74.1 | 75.0 | 75.1 | 74.5 | 74.1 | |||||||||||||||
| Other Personal |
34.4 | 34.4 | 34.8 | 35.5 | 34.3 | |||||||||||||||
| Total Personal Lines |
395.6 | 411.5 | 418.2 | 426.9 | 430.6 | |||||||||||||||
| Commercial Automobile |
9.8 | 10.3 | 10.7 | 11.1 | 11.5 | |||||||||||||||
| Total Earned Premiums |
$ | 546.0 | $ | 561.6 | $ | 568.2 | $ | 578.1 | $ | 581.5 | ||||||||||
5 of 19
Unitrin, Inc.
Combined Property and Casualty Operations1
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Results of Operations |
||||||||||||||||||||
| Net Premiums Written |
$ | 383.6 | $ | 375.9 | $ | 411.4 | $ | 402.7 | $ | 408.7 | ||||||||||
| Earned Premiums: |
||||||||||||||||||||
| Personal: |
||||||||||||||||||||
| Automobile |
$ | 287.1 | $ | 302.1 | $ | 308.3 | $ | 316.9 | $ | 322.2 | ||||||||||
| Homeowners |
74.1 | 75.0 | 75.1 | 74.5 | 74.1 | |||||||||||||||
| Other Personal |
13.2 | 13.3 | 13.3 | 13.9 | 13.0 | |||||||||||||||
| Total Personal |
374.4 | 390.4 | 396.7 | 405.3 | 409.3 | |||||||||||||||
| Commercial Automobile |
9.8 | 10.3 | 10.7 | 11.1 | 11.5 | |||||||||||||||
| Total Earned Premiums |
384.2 | 400.7 | 407.4 | 416.4 | 420.8 | |||||||||||||||
| Net Investment Income |
25.8 | 25.9 | 22.8 | 26.5 | 23.8 | |||||||||||||||
| Other Income |
0.2 | 0.2 | 0.3 | 0.3 | 0.3 | |||||||||||||||
| Total Revenues |
410.2 | 426.8 | 430.5 | 443.2 | 444.9 | |||||||||||||||
| Incurred Losses and LAE related to: |
||||||||||||||||||||
| Current Year: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
290.6 | 296.9 | 296.2 | 294.2 | 304.8 | |||||||||||||||
| Catastrophe Losses and LAE |
9.2 | 20.7 | 12.6 | 25.7 | 15.9 | |||||||||||||||
| Prior Years: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
(3.1 | ) | (0.7 | ) | (6.2 | ) | (5.9 | ) | (9.1 | ) | ||||||||||
| Catastrophe Losses and LAE |
0.1 | (0.6 | ) | (0.4 | ) | (2.3 | ) | (1.3 | ) | |||||||||||
| Total Incurred Losses and LAE |
296.8 | 316.3 | 302.2 | 311.7 | 310.3 | |||||||||||||||
| Insurance Expenses |
101.5 | 104.4 | 104.7 | 105.5 | 108.9 | |||||||||||||||
| Operating Profit |
11.9 | 6.1 | 23.6 | 26.0 | 25.7 | |||||||||||||||
| Income Tax Benefit (Expense) |
(0.2 | ) | 3.2 | (3.6 | ) | (6.1 | ) | (5.2 | ) | |||||||||||
| Net Income |
$ | 11.7 | $ | 9.3 | $ | 20.0 | $ | 19.9 | $ | 20.5 | ||||||||||
| Ratios Based On Earned Premiums |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
75.7 | % | 74.0 | % | 72.7 | % | 70.7 | % | 72.4 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
2.4 | % | 5.2 | % | 3.1 | % | 6.2 | % | 3.8 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.8 | % | -0.2 | % | -1.5 | % | -1.4 | % | -2.2 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.0 | % | -0.1 | % | -0.1 | % | -0.6 | % | -0.3 | % | ||||||||||
| Total Incurred Loss and LAE Ratio |
77.3 | % | 78.9 | % | 74.2 | % | 74.9 | % | 73.7 | % | ||||||||||
| Incurred Expense Ratio |
26.4 | % | 26.1 | % | 25.7 | % | 25.3 | % | 25.9 | % | ||||||||||
| Combined Ratio |
103.7 | % | 105.0 | % | 99.9 | % | 100.2 | % | 99.6 | % | ||||||||||
| Underlying Combined Ratio 2 |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
75.7 | % | 74.0 | % | 72.7 | % | 70.7 | % | 72.4 | % | ||||||||||
| Incurred Expense Ratio |
26.4 | % | 26.1 | % | 25.7 | % | 25.3 | % | 25.9 | % | ||||||||||
| Underlying Combined Ratio |
102.1 | % | 100.1 | % | 98.4 | % | 96.0 | % | 98.3 | % | ||||||||||
| Non-GAAP Measure Reconciliation |
||||||||||||||||||||
| Underlying Combined Ratio |
102.1 | % | 100.1 | % | 98.4 | % | 96.0 | % | 98.3 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
2.4 | % | 5.2 | % | 3.1 | % | 6.2 | % | 3.8 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.8 | % | -0.2 | % | -1.5 | % | -1.4 | % | -2.2 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.0 | % | -0.1 | % | -0.1 | % | -0.6 | % | -0.3 | % | ||||||||||
| Combined Ratio as Reported |
103.7 | % | 105.0 | % | 99.9 | % | 100.2 | % | 99.6 | % | ||||||||||
| 1 | Includes the results of operations of the Kemper, Unitrin Specialty and Unitrin Direct segments. |
| 2 | Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio. |
6 of 19
Unitrin, Inc.
Kemper
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Results of Operations |
||||||||||||||||||||
| Net Premiums Written |
$ | 199.6 | $ | 208.4 | $ | 230.1 | $ | 226.4 | $ | 207.3 | ||||||||||
| Earned Premiums: |
||||||||||||||||||||
| Automobile |
$ | 126.9 | $ | 134.8 | $ | 135.6 | $ | 136.9 | $ | 137.4 | ||||||||||
| Homeowners |
71.9 | 72.8 | 72.9 | 72.2 | 72.1 | |||||||||||||||
| Other Personal |
13.1 | 13.3 | 13.3 | 13.8 | 12.9 | |||||||||||||||
| Total Earned Premiums |
211.9 | 220.9 | 221.8 | 222.9 | 222.4 | |||||||||||||||
| Net Investment Income |
14.1 | 14.2 | 12.3 | 13.9 | 12.4 | |||||||||||||||
| Other Income |
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||
| Total Revenues |
226.1 | 235.2 | 234.2 | 236.9 | 234.9 | |||||||||||||||
| Incurred Losses and LAE related to: |
||||||||||||||||||||
| Current Year: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
145.5 | 148.9 | 148.8 | 142.5 | 147.0 | |||||||||||||||
| Catastrophe Losses and LAE |
9.0 | 19.9 | 11.7 | 23.0 | 15.6 | |||||||||||||||
| Prior Years: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
(1.1 | ) | (4.0 | ) | (4.2 | ) | (4.1 | ) | (6.6 | ) | ||||||||||
| Catastrophe Losses and LAE |
(0.3 | ) | (0.6 | ) | (0.4 | ) | (2.3 | ) | (1.6 | ) | ||||||||||
| Total Incurred Losses and LAE |
153.1 | 164.2 | 155.9 | 159.1 | 154.4 | |||||||||||||||
| Insurance Expenses |
58.8 | 61.1 | 61.2 | 60.2 | 61.2 | |||||||||||||||
| Operating Profit |
14.2 | 9.9 | 17.1 | 17.6 | 19.3 | |||||||||||||||
| Income Tax Expense |
(2.9 | ) | (0.9 | ) | (3.6 | ) | (4.1 | ) | (4.7 | ) | ||||||||||
| Net Income |
$ | 11.3 | $ | 9.0 | $ | 13.5 | $ | 13.5 | $ | 14.6 | ||||||||||
| Ratios Based On Earned Premiums |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
68.7 | % | 67.4 | % | 67.1 | % | 63.9 | % | 66.1 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
4.2 | % | 9.0 | % | 5.3 | % | 10.3 | % | 7.0 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.5 | % | -1.8 | % | -1.9 | % | -1.8 | % | -3.0 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
-0.1 | % | -0.3 | % | -0.2 | % | -1.0 | % | -0.7 | % | ||||||||||
| Total Incurred Loss and LAE Ratio |
72.3 | % | 74.3 | % | 70.3 | % | 71.4 | % | 69.4 | % | ||||||||||
| Incurred Expense Ratio |
27.7 | % | 27.7 | % | 27.6 | % | 27.0 | % | 27.5 | % | ||||||||||
| Combined Ratio |
100.0 | % | 102.0 | % | 97.9 | % | 98.4 | % | 96.9 | % | ||||||||||
| Underlying Combined Ratio 1 |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
68.7 | % | 67.4 | % | 67.1 | % | 63.9 | % | 66.1 | % | ||||||||||
| Incurred Expense Ratio |
27.7 | % | 27.7 | % | 27.6 | % | 27.0 | % | 27.5 | % | ||||||||||
| Underlying Combined Ratio |
96.4 | % | 95.1 | % | 94.7 | % | 90.9 | % | 93.6 | % | ||||||||||
| Non-GAAP Measure Reconciliation |
||||||||||||||||||||
| Underlying Combined Ratio |
96.4 | % | 95.1 | % | 94.7 | % | 90.9 | % | 93.6 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
4.2 | % | 9.0 | % | 5.3 | % | 10.3 | % | 7.0 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.5 | % | -1.8 | % | -1.9 | % | -1.8 | % | -3.0 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
-0.1 | % | -0.3 | % | -0.2 | % | -1.0 | % | -0.7 | % | ||||||||||
| Combined Ratio as Reported |
100.0 | % | 102.0 | % | 97.9 | % | 98.4 | % | 96.9 | % | ||||||||||
| 1 | Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio. |
7 of 19
Unitrin, Inc.
Unitrin Specialty
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Results of Operations |
||||||||||||||||||||
| Net Premiums Written |
$ | 123.1 | $ | 106.1 | $ | 114.0 | $ | 110.5 | $ | 126.6 | ||||||||||
| Earned Premiums: |
||||||||||||||||||||
| Personal Automobile |
$ | 102.6 | $ | 104.7 | $ | 106.3 | $ | 109.4 | $ | 110.9 | ||||||||||
| Commercial Automobile |
9.8 | 10.3 | 10.7 | 11.1 | 11.5 | |||||||||||||||
| Total Earned Premiums |
112.4 | 115.0 | 117.0 | 120.5 | 122.4 | |||||||||||||||
| Net Investment Income |
6.3 | 6.3 | 5.7 | 6.7 | 6.1 | |||||||||||||||
| Other Income |
0.1 | 0.1 | 0.2 | 0.1 | 0.2 | |||||||||||||||
| Total Revenues |
118.8 | 121.4 | 122.9 | 127.3 | 128.7 | |||||||||||||||
| Incurred Losses and LAE related to: |
||||||||||||||||||||
| Current Year: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
92.8 | 93.7 | 92.9 | 93.6 | 95.8 | |||||||||||||||
| Catastrophe Losses and LAE |
0.1 | 0.2 | 0.4 | 2.2 | 0.1 | |||||||||||||||
| Prior Years: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
(1.9 | ) | 2.5 | (1.5 | ) | 1.7 | 1.3 | |||||||||||||
| Catastrophe Losses and LAE |
0.1 | — | — | — | 0.1 | |||||||||||||||
| Total Incurred Losses and LAE |
91.1 | 96.4 | 91.8 | 97.5 | 97.3 | |||||||||||||||
| Insurance Expenses |
22.6 | 23.4 | 23.1 | 22.3 | 23.9 | |||||||||||||||
| Operating Profit |
5.1 | 1.6 | 8.0 | 7.5 | 7.5 | |||||||||||||||
| Income Tax Benefit (Expense) |
(0.9 | ) | 0.6 | (1.8 | ) | (1.5 | ) | (1.7 | ) | |||||||||||
| Net Income |
$ | 4.2 | $ | 2.2 | $ | 6.2 | $ | 6.0 | $ | 5.8 | ||||||||||
| Ratios Based On Earned Premiums |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
82.5 | % | 81.4 | % | 79.5 | % | 77.7 | % | 78.2 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
0.1 | % | 0.2 | % | 0.3 | % | 1.8 | % | 0.1 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-1.7 | % | 2.2 | % | -1.3 | % | 1.4 | % | 1.1 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||
| Total Incurred Loss and LAE Ratio |
81.0 | % | 83.8 | % | 78.5 | % | 80.9 | % | 79.5 | % | ||||||||||
| Incurred Expense Ratio |
20.1 | % | 20.3 | % | 19.7 | % | 18.5 | % | 19.5 | % | ||||||||||
| Combined Ratio |
101.1 | % | 104.1 | % | 98.2 | % | 99.4 | % | 99.0 | % | ||||||||||
| Underlying Combined Ratio 1 |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
82.5 | % | 81.4 | % | 79.5 | % | 77.7 | % | 78.2 | % | ||||||||||
| Incurred Expense Ratio |
20.1 | % | 20.3 | % | 19.7 | % | 18.5 | % | 19.5 | % | ||||||||||
| Underlying Combined Ratio |
102.6 | % | 101.7 | % | 99.2 | % | 96.2 | % | 97.7 | % | ||||||||||
| Non-GAAP Measure Reconciliation |
||||||||||||||||||||
| Underlying Combined Ratio |
102.6 | % | 101.7 | % | 99.2 | % | 96.2 | % | 97.7 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
0.1 | % | 0.2 | % | 0.3 | % | 1.8 | % | 0.1 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-1.7 | % | 2.2 | % | -1.3 | % | 1.4 | % | 1.1 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||
| Combined Ratio as Reported |
101.1 | % | 104.1 | % | 98.2 | % | 99.4 | % | 99.0 | % | ||||||||||
| 1 | Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio. |
8 of 19
Unitrin, Inc.
Unitrin Direct
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Results of Operations |
||||||||||||||||||||
| Net premiums written |
$ | 60.9 | $ | 61.4 | $ | 67.3 | $ | 65.8 | $ | 74.8 | ||||||||||
| Earned Premiums: |
||||||||||||||||||||
| Automobile |
$ | 57.6 | $ | 62.6 | $ | 66.4 | $ | 70.6 | $ | 73.9 | ||||||||||
| Homeowners |
2.2 | 2.2 | 2.2 | 2.3 | 2.0 | |||||||||||||||
| Other Personal |
0.1 | — | — | 0.1 | 0.1 | |||||||||||||||
| Total Earned Premiums |
59.9 | 64.8 | 68.6 | 73.0 | 76.0 | |||||||||||||||
| Net Investment Income |
5.4 | 5.4 | 4.8 | 5.9 | 5.3 | |||||||||||||||
| Other Income |
— | — | — | 0.1 | — | |||||||||||||||
| Total Revenues |
65.3 | 70.2 | 73.4 | 79.0 | 81.3 | |||||||||||||||
| Incurred Losses and LAE related to: |
||||||||||||||||||||
| Current Year: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
52.3 | 54.3 | 54.5 | 58.1 | 62.0 | |||||||||||||||
| Catastrophe Losses and LAE |
0.1 | 0.6 | 0.5 | 0.5 | 0.2 | |||||||||||||||
| Prior Years: |
||||||||||||||||||||
| Non-catastrophe Losses and LAE |
(0.1 | ) | 0.8 | (0.5 | ) | (3.5 | ) | (3.8 | ) | |||||||||||
| Catastrophe Losses and LAE |
0.3 | — | — | — | 0.2 | |||||||||||||||
| Total Incurred Losses and LAE |
52.6 | 55.7 | 54.5 | 55.1 | 58.6 | |||||||||||||||
| Insurance Expenses |
20.1 | 19.9 | 20.4 | 23.0 | 23.8 | |||||||||||||||
| Operating Profit (Loss) |
(7.4 | ) | (5.4 | ) | (1.5 | ) | 0.9 | (1.1 | ) | |||||||||||
| Income Tax Benefit (Expense) |
3.6 | 3.5 | 1.8 | (0.5 | ) | 1.2 | ||||||||||||||
| Net Income (Loss) |
$ | (3.8 | ) | $ | (1.9 | ) | $ | 0.3 | $ | 0.4 | $ | 0.1 | ||||||||
| Ratios Based On Earned Premiums |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
87.3 | % | 83.9 | % | 79.4 | % | 79.6 | % | 81.5 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
0.2 | % | 0.9 | % | 0.7 | % | 0.7 | % | 0.3 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.2 | % | 1.2 | % | -0.7 | % | -4.8 | % | -5.0 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||
| Total Incurred Loss and LAE Ratio |
87.8 | % | 86.0 | % | 79.4 | % | 75.5 | % | 77.1 | % | ||||||||||
| Incurred Expense Ratio |
33.6 | % | 30.7 | % | 29.7 | % | 31.5 | % | 31.3 | % | ||||||||||
| Combined Ratio |
121.4 | % | 116.7 | % | 109.1 | % | 107.0 | % | 108.4 | % | ||||||||||
| Underlying Combined Ratio 1 |
||||||||||||||||||||
| Current Year Non-catastrophe Losses and LAE Ratio |
87.3 | % | 83.9 | % | 79.4 | % | 79.6 | % | 81.5 | % | ||||||||||
| Incurred Expense Ratio |
33.6 | % | 30.7 | % | 29.7 | % | 31.5 | % | 31.3 | % | ||||||||||
| Underlying Combined Ratio |
120.9 | % | 114.6 | % | 109.1 | % | 111.1 | % | 112.8 | % | ||||||||||
| Non-GAAP Measure Reconciliation |
||||||||||||||||||||
| Underlying Combined Ratio |
120.9 | % | 114.6 | % | 109.1 | % | 111.1 | % | 112.8 | % | ||||||||||
| Current Year Catastrophe Losses and LAE Ratio |
0.2 | % | 0.9 | % | 0.7 | % | 0.7 | % | 0.3 | % | ||||||||||
| Prior Years Non-catastrophe Losses and LAE Ratio |
-0.2 | % | 1.2 | % | -0.7 | % | -4.8 | % | -5.0 | % | ||||||||||
| Prior Years Catastrophe Losses and LAE Ratio |
0.5 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.3 | % | ||||||||||
| Combined Ratio as Reported |
121.4 | % | 116.7 | % | 109.1 | % | 107.0 | % | 108.4 | % | ||||||||||
| 1 | Underlying Combined Ratio is a non-GAAP measure, which is computed as the difference between three operating ratios: the combined ratio, the effect of catastrophes (excluding development of prior year catastrophes) on the combined ratio and the effect of prior year reserve development at the reporting date (including development on prior year catastrophes) on the combined ratio. |
9 of 19
Unitrin, Inc.
Life and Health Insurance
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Results of Operations |
||||||||||||||||||||
| Earned Premiums: |
||||||||||||||||||||
| Life |
$ | 99.4 | $ | 98.4 | $ | 98.8 | $ | 100.0 | $ | 99.5 | ||||||||||
| Accident and Health |
41.2 | 41.4 | 40.5 | 40.1 | 39.9 | |||||||||||||||
| Property |
21.2 | 21.1 | 21.5 | 21.6 | 21.3 | |||||||||||||||
| Total Earned Premiums |
161.8 | 160.9 | 160.8 | 161.7 | 160.7 | |||||||||||||||
| Net Investment Income |
53.0 | 55.9 | 53.8 | 51.3 | 53.3 | |||||||||||||||
| Other Income |
— | 0.1 | 0.1 | — | — | |||||||||||||||
| Total Revenues |
214.8 | 216.9 | 214.7 | 213.0 | 214.0 | |||||||||||||||
| Policyholders’ Benefits and Incurred Losses and LAE |
95.5 | 91.0 | 101.6 | 107.4 | 106.8 | |||||||||||||||
| Insurance Expenses |
68.5 | 72.8 | 71.4 | 72.1 | 66.7 | |||||||||||||||
| Write-off of Goodwill |
— | — | 14.8 | — | — | |||||||||||||||
| Operating Profit |
50.8 | 53.1 | 26.9 | 33.5 | 40.5 | |||||||||||||||
| Income Tax Expense |
(18.1 | ) | (18.5 | ) | (14.5 | ) | (12.0 | ) | (14.1 | ) | ||||||||||
| Net Income |
$ | 32.7 | $ | 34.6 | $ | 12.4 | $ | 21.5 | $ | 26.4 | ||||||||||
10 of 19
Unitrin, Inc.
Consolidated Balance Sheets
(Dollars in Millions) (Unaudited)
| March 31, 2011 |
December 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: |
||||||||||||||||||||
| Fixed Maturities at Fair Value |
$ | 4,491.9 | $ | 4,475.3 | $ | 4,711.4 | $ | 4,741.5 | $ | 4,617.1 | ||||||||||
| Equity Securities at Fair Value |
511.7 | 550.4 | 415.6 | 231.8 | 209.0 | |||||||||||||||
| Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings |
326.0 | 328.0 | 315.7 | 308.6 | 299.3 | |||||||||||||||
| Investee (Intermec) |
— | — | — | 91.8 | 95.0 | |||||||||||||||
| Short-term Investments at Cost |
415.8 | 402.9 | 404.4 | 393.5 | 361.2 | |||||||||||||||
| Other Investments |
496.0 | 494.2 | 490.7 | 487.8 | 487.6 | |||||||||||||||
| Total Investments |
6,241.4 | 6,250.8 | 6,337.8 | 6,255.0 | 6,069.2 | |||||||||||||||
| Cash |
77.5 | 117.2 | 149.6 | 100.8 | 160.9 | |||||||||||||||
| Automobile Loan Receivables at Cost and Net of Reserve for Loan Losses |
278.1 | 337.6 | 397.4 | 470.9 | 556.1 | |||||||||||||||
| Other Receivables |
619.9 | 606.7 | 630.7 | 612.7 | 629.0 | |||||||||||||||
| Deferred Policy Acquisition Costs |
530.2 | 525.2 | 528.1 | 524.9 | 521.6 | |||||||||||||||
| Goodwill |
311.8 | 311.8 | 311.8 | 326.6 | 331.8 | |||||||||||||||
| Current and Deferred Income Tax Assets |
1.9 | 39.6 | 27.2 | 60.4 | 95.2 | |||||||||||||||
| Other Assets |
169.2 | 169.6 | 158.3 | 156.6 | 148.2 | |||||||||||||||
| Total Assets |
$ | 8,230.0 | $ | 8,358.5 | $ | 8,540.9 | $ | 8,507.9 | $ | 8,512.0 | ||||||||||
| Liabilities and Shareholders’ Equity: |
||||||||||||||||||||
| Insurance Reserves: |
||||||||||||||||||||
| Life and Health |
$ | 3,073.6 | $ | 3,063.7 | $ | 3,054.0 | $ | 3,048.8 | $ | 3,046.5 | ||||||||||
| Property and Casualty |
1,095.8 | 1,118.7 | 1,131.4 | 1,149.5 | 1,170.7 | |||||||||||||||
| Total Insurance Reserves |
4,169.4 | 4,182.4 | 4,185.4 | 4,198.3 | 4,217.2 | |||||||||||||||
| Certificates of Deposits at Cost |
172.7 | 321.4 | 409.2 | 512.7 | 596.1 | |||||||||||||||
| Unearned Premiums |
680.4 | 678.6 | 703.9 | 700.1 | 715.0 | |||||||||||||||
| Liabilities for Income Taxes |
8.6 | 15.1 | 60.3 | 10.8 | 11.1 | |||||||||||||||
| Notes Payable at Amortized Cost |
610.0 | 609.8 | 561.9 | 561.8 | 561.6 | |||||||||||||||
| Accrued Expenses and Other Liabilities |
472.4 | 437.8 | 419.9 | 456.0 | 433.4 | |||||||||||||||
| Total Liabilities |
6,113.5 | 6,245.1 | 6,340.6 | 6,439.7 | 6,534.4 | |||||||||||||||
| Shareholders’ Equity: |
||||||||||||||||||||
| Common Stock |
6.0 | 6.1 | 6.1 | 6.2 | 6.3 | |||||||||||||||
| Paid-in Capital |
743.3 | 751.1 | 756.0 | 761.1 | 766.9 | |||||||||||||||
| Retained Earnings |
1,225.6 | 1,198.8 | 1,154.6 | 1,137.9 | 1,121.2 | |||||||||||||||
| Accumulated Other Comprehensive Income |
141.6 | 157.4 | 283.6 | 163.0 | 83.2 | |||||||||||||||
| Total Shareholders’ Equity |
2,116.5 | 2,113.4 | 2,200.3 | 2,068.2 | 1,977.6 | |||||||||||||||
| Total Liabilities and Shareholders’ Equity |
$ | 8,230.0 | $ | 8,358.5 | $ | 8,540.9 | $ | 8,507.9 | $ | 8,512.0 | ||||||||||
11 of 19
Unitrin, Inc.
Consolidated Statements of Income
(Dollars In Millions, Except Per Share Amounts) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Revenues: |
||||||||||||||||||||
| Earned Premiums |
$ | 546.0 | $ | 561.6 | $ | 568.2 | $ | 578.1 | $ | 581.5 | ||||||||||
| Automobile Finance Revenues |
15.5 | 19.1 | 22.6 | 26.7 | 30.6 | |||||||||||||||
| Net Investment Income |
81.6 | 85.1 | 79.9 | 81.8 | 80.8 | |||||||||||||||
| Other Income |
0.2 | 0.3 | 0.4 | 0.3 | 0.3 | |||||||||||||||
| Net Realized Gains on Sales of Investments |
14.5 | 28.0 | 7.2 | 2.9 | 4.5 | |||||||||||||||
| Other-than-temporary Impairment Losses: |
||||||||||||||||||||
| Total Other-than-temporary Impairment Losses |
(0.4 | ) | (3.8 | ) | (3.6 | ) | (4.1 | ) | (6.2 | ) | ||||||||||
| Portion of Losses Recognized in Other Comprehensive Income |
— | — | (1.0 | ) | (0.8 | ) | 3.0 | |||||||||||||
| Net Impairment Losses Recognized in Earnings |
(0.4 | ) | (3.8 | ) | (4.6 | ) | (4.9 | ) | (3.2 | ) | ||||||||||
| Total Revenues |
657.4 | 690.3 | 673.7 | 684.9 | 694.5 | |||||||||||||||
| Expenses: |
||||||||||||||||||||
| Policyholders’ Benefits and Incurred Losses and Loss Adjustment Expenses |
392.3 | 407.1 | 403.9 | 419.1 | 417.1 | |||||||||||||||
| Insurance Expenses |
161.9 | 168.7 | 168.9 | 169.4 | 168.5 | |||||||||||||||
| Automobile Finance Expenses |
(2.9 | ) | 3.2 | 11.3 | 15.2 | 18.4 | ||||||||||||||
| Interest Expense on Certificates of Deposits |
7.1 | 6.4 | 6.5 | 7.4 | 7.9 | |||||||||||||||
| Write-off of Goodwill |
— | — | 14.8 | — | — | |||||||||||||||
| Interest and Other Expenses |
19.7 | 18.4 | 16.1 | 17.4 | 16.4 | |||||||||||||||
| Total Expenses |
578.1 | 603.8 | 621.5 | 628.5 | 628.3 | |||||||||||||||
| Income from Continuing Operations before Income Taxes and Equity in Net Income (Loss) of Investee |
79.3 | 86.5 | 52.2 | 56.4 | 66.2 | |||||||||||||||
| Income Tax Expense |
(23.5 | ) | (25.0 | ) | (16.4 | ) | (16.8 | ) | (19.2 | ) | ||||||||||
| Income from Continuing Operations before Equity in Net Income (Loss) of Investee |
55.8 | 61.5 | 35.8 | 39.6 | 47.0 | |||||||||||||||
| Equity in Net Income (Loss) of Investee |
— | — | (0.3 | ) | (0.5 | ) | 0.7 | |||||||||||||
| Income from Continuing Operations |
55.8 | 61.5 | 35.5 | 39.1 | 47.7 | |||||||||||||||
| Discontinued Operations: |
||||||||||||||||||||
| Income (Loss) from Discontinued Operations before Income Taxes |
(2.6 | ) | 2.2 | 0.3 | (2.1 | ) | 0.8 | |||||||||||||
| Income Tax Benefit (Expense) |
0.9 | (0.8 | ) | (0.1 | ) | 0.8 | (0.3 | ) | ||||||||||||
| Income (Loss) from Discontinued Operations |
(1.7 | ) | 1.4 | 0.2 | (1.3 | ) | 0.5 | |||||||||||||
| Net Income |
$ | 54.1 | $ | 62.9 | $ | 35.7 | $ | 37.8 | $ | 48.2 | ||||||||||
| Income from Continuing Operations Per Unrestricted Shares: |
||||||||||||||||||||
| Basic |
$ | 0.92 | $ | 1.00 | $ | 0.57 | $ | 0.63 | $ | 0.76 | ||||||||||
| Diluted |
$ | 0.92 | $ | 1.00 | $ | 0.57 | $ | 0.63 | $ | 0.76 | ||||||||||
| Net Income Per Unrestricted Share: |
||||||||||||||||||||
| Basic |
$ | 0.89 | $ | 1.03 | $ | 0.58 | $ | 0.61 | $ | 0.77 | ||||||||||
| Diluted |
$ | 0.89 | $ | 1.03 | $ | 0.58 | $ | 0.61 | $ | 0.77 | ||||||||||
| Dividends Paid to Shareholders Per Share |
$ | 0.24 | $ | 0.22 | $ | 0.22 | $ | 0.22 | $ | 0.22 | ||||||||||
| Weighted Average Unrestricted Common Shares Outstanding |
60.678 | 61.127 | 61.458 | 61.985 | 62.155 | |||||||||||||||
12 of 19
Unitrin, Inc.
Capital Metrics
(Dollars and Shares in Millions, Except Per Share Amounts)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Book Value Per Share |
||||||||||||||||||||
| Numerator |
||||||||||||||||||||
| Shareholders’ Equity |
$ | 2,116.5 | $ | 2,113.4 | $ | 2,200.3 | $ | 2,068.2 | $ | 1,977.6 | ||||||||||
| Less: goodwill |
(311.8 | ) | (311.8 | ) | (311.8 | ) | (326.6 | ) | (331.8 | ) | ||||||||||
| Shareholders’ Equity Excluding Goodwill |
1,804.7 | 1,801.6 | 1,888.5 | 1,741.6 | 1,645.8 | |||||||||||||||
| Shareholders’ Equity |
2,116.5 | 2,113.4 | 2,200.3 | 2,068.2 | 1,977.6 | |||||||||||||||
| Less: Unrealized Gains and Losses on Fixed Maturities |
(149.0 | ) | (152.4 | ) | (273.5 | ) | (201.7 | ) | (117.1 | ) | ||||||||||
| Shareholders’ Equity Excluding Unrealized on Fixed Maturities |
1,967.5 | 1,961.0 | 1,926.8 | 1,866.5 | 1,860.5 | |||||||||||||||
| Denominator |
||||||||||||||||||||
| Common Shares Issued and Outstanding |
60.453 | 61.067 | 61.450 | 61.925 | 62.464 | |||||||||||||||
| Book Value Per Share |
$ | 35.01 | $ | 34.61 | $ | 35.81 | $ | 33.40 | $ | 31.66 | ||||||||||
| Book Value Per Share Excluding Goodwill |
$ | 29.85 | $ | 29.50 | $ | 30.73 | $ | 28.12 | $ | 26.35 | ||||||||||
| Book Value Per Share Excluding Unrealized on Fixed Maturities |
$ | 32.55 | $ | 32.11 | $ | 31.36 | $ | 30.14 | $ | 29.79 | ||||||||||
| Return on Shareholders’ Equity |
||||||||||||||||||||
| Numerator |
||||||||||||||||||||
| Rolling 12 Months Net Income |
$ | 190.5 | $ | 184.6 | $ | 188.0 | $ | 214.4 | $ | 218.5 | ||||||||||
| Denominator (Simple Average) |
||||||||||||||||||||
| Beginning Shareholders’ Equity |
$ | 1,977.6 | $ | 1,917.6 | $ | 1,893.2 | $ | 1,693.6 | $ | 1,564.7 | ||||||||||
| Ending Shareholders’ Equity |
2,116.5 | 2,113.4 | 2,200.3 | 2,068.2 | 1,977.6 | |||||||||||||||
| Simple Average Shareholders’ Equity |
2,047.1 | 2,015.5 | 2,046.8 | 1,880.9 | 1,771.2 | |||||||||||||||
| Rolling 12 Months Return on Average Shareholders Equity (Simple Average) |
9.3 | % | 9.2 | % | 9.2 | % | 11.4 | % | 12.3 | % | ||||||||||
| Denominator (5-point Average) |
||||||||||||||||||||
| Ending Shareholders’ Equity Current Quarter |
$ | 2,116.5 | $ | 2,113.4 | $ | 2,200.3 | $ | 2,068.2 | $ | 1,977.6 | ||||||||||
| Ending Shareholders’ Equity 3 Months Ago |
2,113.4 | 2,200.3 | 2,068.2 | 1,977.6 | 1,917.6 | |||||||||||||||
| Ending Shareholders’ Equity 6 Months Ago |
2,200.3 | 2,068.2 | 1,977.6 | 1,917.6 | 1,893.2 | |||||||||||||||
| Ending Shareholders’ Equity 9 Months Ago |
2,068.2 | 1,977.6 | 1,917.6 | 1,893.2 | 1,693.6 | |||||||||||||||
| Ending Shareholders’ Equity 12 Months Ago |
1,977.6 | 1,917.6 | 1,893.2 | 1,693.6 | 1,564.7 | |||||||||||||||
| 5-point Average Shareholders’ Equity |
2,095.2 | 2,055.4 | 2,011.4 | 1,910.0 | 1,809.3 | |||||||||||||||
| Rolling 12 Months Return on Average Shareholders Equity (5-point Average) |
9.1 | % | 9.0 | % | 9.3 | % | 11.2 | % | 12.1 | % | ||||||||||
| Debt and Total Capitalization |
||||||||||||||||||||
| Long Term Debt |
$ | 610.0 | $ | 609.8 | $ | 561.9 | $ | 561.8 | $ | 561.6 | ||||||||||
| Shareholders’ Equity |
2,116.5 | 2,113.4 | 2,200.3 | 2,068.2 | 1,977.6 | |||||||||||||||
| Total Capitalization |
$ | 2,726.5 | $ | 2,723.2 | $ | 2,762.2 | $ | 2,630.0 | $ | 2,539.2 | ||||||||||
| Ratio of Debt to Shareholders’ Equity |
28.8 | % | 28.9 | % | 25.5 | % | 27.2 | % | 28.4 | % | ||||||||||
| Ratio of Debt to Total Capitalization |
22.4 | % | 22.4 | % | 20.3 | % | 21.4 | % | 22.1 | % | ||||||||||
| Parent Company Liquidity |
||||||||||||||||||||
| Unitrin Holding Company Cash and Investments |
$ | 84.2 | $ | 60.5 | $ | 67.5 | $ | 135.7 | $ | 141.8 | ||||||||||
| Borrowings Available Under Credit Agreement |
245.0 | 245.0 | 245.0 | 245.0 | 245.0 | |||||||||||||||
| Parent Company Liquidity |
$ | 329.2 | $ | 305.5 | $ | 312.5 | $ | 380.7 | $ | 386.8 | ||||||||||
| Capital Returned to Shareholders |
||||||||||||||||||||
| Common Stock Repurchased |
$ | 21.7 | $ | 9.9 | $ | 10.5 | $ | 14.0 | $ | — | ||||||||||
| Cash Dividends Paid |
14.7 | 13.5 | 13.6 | 13.8 | 13.7 | |||||||||||||||
| Total Capital Returned to Shareholders |
$ | 36.4 | $ | 23.4 | $ | 24.1 | $ | 27.8 | $ | 13.7 | ||||||||||
13 of 19
Unitrin, Inc.
Details of Investment Performance
(Dollars in Millions) (Unaudited)
| Three Months Ended | ||||||||||||||||||||
| March 31, 2011 |
Dec. 31, 2010 |
Sept. 30, 2010 |
June 30, 2010 |
March 31, 2010 |
||||||||||||||||
| Investment Income: |
||||||||||||||||||||
| Interest and Dividends on Fixed Maturities |
$ | 60.4 | $ | 60.3 | $ | 61.0 | $ | 61.3 | $ | 63.0 | ||||||||||
| Dividends on Equity Securities |
7.1 | 4.8 | 4.0 | 2.9 | 4.3 | |||||||||||||||
| Short-term Investments |
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||||||||
| Loans to Policyholders |
4.4 | 4.2 | 4.2 | 4.0 | 4.1 | |||||||||||||||
| Real Estate |
6.4 | 6.9 | 6.7 | 6.9 | 6.6 | |||||||||||||||
| Equity Method Limited Liability Investments |
10.0 | 15.5 | 10.5 | 13.4 | 9.4 | |||||||||||||||
| Total Investment Income |
88.4 | 91.8 | 86.5 | 88.6 | 87.5 | |||||||||||||||
| Investment Expenses: |
||||||||||||||||||||
| Real Estate |
6.4 | 6.3 | 6.4 | 6.5 | 6.5 | |||||||||||||||
| Other Investment Expenses |
0.4 | 0.4 | 0.2 | 0.3 | 0.2 | |||||||||||||||
| Total Investment Expenses |
6.8 | 6.7 | 6.6 | 6.8 | 6.7 | |||||||||||||||
| Net Investment Income |
$ | 81.6 | $ | 85.1 | $ | 79.9 | $ | 81.8 | $ | 80.8 | ||||||||||
| Net Realized Gains on Sales of Investments |
||||||||||||||||||||
| Fixed Maturities: |
||||||||||||||||||||
| Gains on Sales |
$ | 3.1 | $ | 15.8 | $ | 0.9 | $ | 2.3 | $ | 2.5 | ||||||||||
| Losses on Sales |
— | (0.1 | ) | — | — | — | ||||||||||||||
| Equity Securities: |
||||||||||||||||||||
| Gains on Sales |
11.2 | 4.0 | 5.7 | 0.3 | 1.7 | |||||||||||||||
| Investee - Intermec: |
||||||||||||||||||||
| Gains on Sales |
— | — | — | 0.8 | — | |||||||||||||||
| Real Estate: |
||||||||||||||||||||
| Gains on Sales |
0.1 | 8.2 | — | — | — | |||||||||||||||
| Other Investments: |
||||||||||||||||||||
| Gains on Sales |
— | — | 0.1 | — | — | |||||||||||||||
| Losses on Sales |
— | — | — | (0.1 | ) | — | ||||||||||||||
| Trading Securities Net Gains (Losses) |
0.1 | 0.1 | 0.5 | (0.4 | ) | 0.3 | ||||||||||||||
| Net Realized Gains on Sales of Investments |
$ | 14.5 | $ | 28.0 | $ | 7.2 | $ | 2.9 | $ | 4.5 | ||||||||||
| Net Impairment Losses Recognized in Earnings |
||||||||||||||||||||
| Fixed Maturities |
$ | — | $ | (2.0 | ) | $ | (4.6 | ) | $ | (4.6 | ) | $ | (3.2 | ) | ||||||
| Equity Securities |
(0.4 | ) | (1.8 | ) | — | (0.3 | ) | — | ||||||||||||
| Net Impairment Losses Recognized in Earnings |
$ | (0.4 | ) | $ | (3.8 | ) | $ | (4.6 | ) | $ | (4.9 | ) | $ | (3.2 | ) | |||||
14 of 19
Unitrin, Inc.
Details of Invested Assets
(Dollars in Millions) (Unaudited)
| March 31, 2011 | December 31, 2010 | December 31, 2009 | ||||||||||||||||||||||
| Carrying Value |
Percent of Total Investments* |
Carrying Value |
Percent of Total Investments* |
Carrying Value |
Percent of Total Investments* |
|||||||||||||||||||
| Fixed Maturities Reported at Fair Value: |
||||||||||||||||||||||||
| U.S. Government and Government Agencies and Authorities |
$ | 541.3 | 8.7 | % | $ | 536.9 | 8.6 | % | $ | 720.9 | 12.0 | % | ||||||||||||
| States, and Political Subdivisions |
1,762.1 | 28.2 | % | 1,792.8 | 28.7 | % | 1,745.3 | 28.9 | % | |||||||||||||||
| Corporate Securities: |
||||||||||||||||||||||||
| Bonds and Notes |
2,091.0 | 33.5 | % | 2,049.0 | 32.8 | % | 1,931.6 | 32.0 | % | |||||||||||||||
| Redeemable Preferred Stocks |
89.0 | 1.4 | % | 88.3 | 1.4 | % | 150.4 | 2.5 | % | |||||||||||||||
| Mortgage and Asset-backed |
8.5 | 0.1 | % | 8.3 | 0.2 | % | 13.2 | 0.2 | % | |||||||||||||||
| Total Fixed Maturities Reported at Fair Value |
4,491.9 | 71.9 | % | 4,475.3 | 71.7 | % | 4,561.4 | 75.6 | % | |||||||||||||||
| Equity Securities Reported at Fair Value: |
||||||||||||||||||||||||
| Preferred Stocks |
124.8 | 2.0 | % | 125.1 | 2.0 | % | 115.1 | 1.9 | % | |||||||||||||||
| Common Stocks |
||||||||||||||||||||||||
| Intermec |
107.0 | 1.7 | % | 137.5 | 2.2 | % | — | 0.0 | % | |||||||||||||||
| Other Equities |
121.7 | 1.9 | % | 133.4 | 2.1 | % | 41.2 | 0.7 | % | |||||||||||||||
| Other Equity Interests |
||||||||||||||||||||||||
| Exchange Traded Funds |
83.6 | 1.3 | % | 79.2 | 1.3 | % | — | 0.0 | % | |||||||||||||||
| Limited Liability Companies and Limited Partnerships |
74.6 | 1.2 | % | 75.2 | 1.2 | % | 39.1 | 0.6 | % | |||||||||||||||
| Total Equity Securities Reported at Fair Value |
511.7 | 8.2 | % | 550.4 | 8.8 | % | 195.4 | 3.2 | % | |||||||||||||||
| Investee (Intermec) at Cost Plus Cumulative Undistributed Earnings |
— | 0.0 | % | — | 0.0 | % | 98.4 | 1.6 | % | |||||||||||||||
| Equity Method Limited Liability Investments |
326.0 | 5.2 | % | 328.0 | 5.2 | % | 285.5 | 4.7 | % | |||||||||||||||
| Short-term Investments at Cost which Approximates Fair Value |
415.8 | 6.7 | % | 402.9 | 6.4 | % | 397.0 | 6.6 | % | |||||||||||||||
| Other Investments |
||||||||||||||||||||||||
| Loans to Policyholders at Unpaid Principal |
240.7 | 3.9 | % | 238.4 | 3.8 | % | 223.6 | 3.7 | % | |||||||||||||||
| Real Estate at Depreciated Cost |
249.3 | 4.0 | % | 249.9 | 4.0 | % | 257.1 | 4.3 | % | |||||||||||||||
| Trading Securities at Fair Value |
5.2 | 0.1 | % | 5.1 | 0.1 | % | 4.6 | 0.1 | % | |||||||||||||||
| Other |
0.8 | 0.0 | % | 0.8 | 0.0 | % | 0.8 | 0.0 | % | |||||||||||||||
| Total Other Investments |
496.0 | 7.9 | % | 494.2 | 7.9 | % | 486.1 | 8.1 | % | |||||||||||||||
| Total Investments |
$ | 6,241.4 | 100.0 | % | $ | 6,250.8 | 100.0 | % | $ | 6,023.8 | 100.0 | % | ||||||||||||
| S&P Equivalent Rating for Fixed Maturities |
||||||||||||||||||||||||
| AAA, AA, A |
$ | 3,478.3 | 77.4 | % | $ | 3,493.7 | 78.1 | % | $ | 3,678.4 | 80.6 | % | ||||||||||||
| BBB |
732.3 | 16.3 | % | 733.1 | 16.4 | % | 650.3 | 14.3 | % | |||||||||||||||
| BB |
114.4 | 2.5 | % | 105.3 | 2.3 | % | 110.4 | 2.4 | % | |||||||||||||||
| B |
56.9 | 1.3 | % | 52.3 | 1.2 | % | 27.1 | 0.6 | % | |||||||||||||||
| CCC |
93.4 | 2.1 | % | 76.6 | 1.7 | % | 74.1 | 1.6 | % | |||||||||||||||
| In or Near Default |
16.6 | 0.4 | % | 14.3 | 0.3 | % | 21.1 | 0.5 | % | |||||||||||||||
| Total Investments in Fixed Maturities |
$ | 4,491.9 | 100.0 | % | $ | 4,475.3 | 100.0 | % | $ | 4,561.4 | 100.0 | % | ||||||||||||
| * | Sum of percentages for individual lines does not equal subtotals and grand total due to rounding. |
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Unitrin, Inc.
Investment Concentration
(Dollars in Millions) (Unaudited)
| March 31, 2011 | December 31, 2010 | December 31, 2009 | ||||||||||||||||||||||
| Fair Value of Non-governmental Fixed Maturities by Industry |
Amount | Percent of Total Investments |
Amount | Percent of Total Investments |
Amount | Percent of Total Investments |
||||||||||||||||||
| Manufacturing |
$ | 1,028.9 | 16.5 | % | $ | 1,023.6 | 16.4 | % | $ | 928.8 | 15.4 | % | ||||||||||||
| Finance, Insurance and Real Estate |
581.0 | 9.3 | % | 566.4 | 9.1 | % | 608.8 | 10.1 | % | |||||||||||||||
| Transportation, Communication and Utilities |
228.2 | 3.7 | % | 229.7 | 3.7 | % | 236.2 | 3.9 | % | |||||||||||||||
| Services |
195.2 | 3.1 | % | 186.3 | 3.0 | % | 181.9 | 3.0 | % | |||||||||||||||
| Mining |
64.5 | 1.0 | % | 52.0 | 0.8 | % | 58.4 | 1.0 | % | |||||||||||||||
| Wholesale Trade |
37.8 | 0.6 | % | 36.5 | 0.6 | % | 33.3 | 0.6 | % | |||||||||||||||
| Retail Trade |
35.3 | 0.6 | % | 33.5 | 0.5 | % | 32.3 | 0.5 | % | |||||||||||||||
| Agriculture, Forestry and Fishing |
17.0 | 0.3 | % | 17.0 | 0.3 | % | 14.9 | 0.2 | % | |||||||||||||||
| Other |
0.6 | 0.0 | % | 0.6 | 0.0 | % | 0.6 | 0.0 | % | |||||||||||||||
| Total Fair Value of Non-governmental Fixed Maturities |
$ | 2,188.5 | 35.1 | % | $ | 2,145.6 | 34.4 | % | $ | 2,095.2 | 34.7 | % | ||||||||||||
| March 31, 2011 Ten Largest Investment Exposures (1) |
Fair Value |
Percent of Total Investments |
||||||
| Intermec: |
||||||||
| Equity Securities—Common Stock |
$ | 107.0 | 1.7 | % | ||||
| Tennenbaum Opportunities Fund V, LLC: |
||||||||
| Equity Method Limited Liability Investments |
95.2 | 1.5 | % | |||||
| State of Texas and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
83.4 | 1.4 | % | |||||
| Special Value Opportunity Fund, LLC: |
||||||||
| Equity Method Limited Liability Investments |
82.2 | 1.3 | % | |||||
| State of Louisiana and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
71.7 | 1.2 | % | |||||
| State of Ohio and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
64.6 | 1.0 | % | |||||
| State of Washington and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
64.5 | 1.0 | % | |||||
| State of Wisconsin and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
63.3 | 1.0 | % | |||||
| Goldman Sachs Vintage IV, L.P.: |
||||||||
| Equity Method Limited Liability Investments |
56.3 | 0.9 | % | |||||
| State of Colorado and Political Subdivisions Thereof: |
||||||||
| Fixed Maturities |
54.1 | 0.9 | % | |||||
| $ | 742.3 | 11.9 | % | |||||
| (1) | Excluding Investments in U.S. Government and Government Agencies and Authorities and Bonds Pre-refunded with U.S. Government and Government Agencies Held in Trust at March 31, 2011 |
16 of 19
Unitrin, Inc.
Municipal Bond Securities excluding Pre-refunded with U.S. Government Held in Trust
(Dollars in Millions) (Unaudited)
| As of March 31, 2011 | ||||||||||||||||||||
| State General Obligation |
Political Subdivision General Obligation |
Revenue | Total Fair Value |
Percent of Total |
||||||||||||||||
| Texas |
$ | 50.4 | $ | 14.0 | $ | 19.0 | $ | 83.4 | 6.2 | % | ||||||||||
| Louisiana |
37.7 | 9.3 | 24.7 | 71.7 | 5.3 | % | ||||||||||||||
| Ohio |
44.3 | — | 20.3 | 64.6 | 4.8 | % | ||||||||||||||
| Washington |
40.5 | 4.1 | 19.9 | 64.5 | 4.8 | % | ||||||||||||||
| Wisconsin |
63.3 | — | — | 63.3 | 4.7 | % | ||||||||||||||
| Colorado |
— | 18.6 | 35.5 | 54.1 | 4.0 | % | ||||||||||||||
| Alaska |
48.7 | — | 2.3 | 51.0 | 3.8 | % | ||||||||||||||
| New York |
19.7 | — | 30.7 | 50.4 | 3.7 | % | ||||||||||||||
| Florida |
49.3 | — | 0.1 | 49.4 | 3.7 | % | ||||||||||||||
| Pennsylvania |
41.5 | 5.1 | 1.6 | 48.2 | 3.6 | % | ||||||||||||||
| Hawaii |
44.3 | 3.1 | — | 47.4 | 3.5 | % | ||||||||||||||
| Connecticut |
44.4 | — | — | 44.4 | 3.3 | % | ||||||||||||||
| Massachusetts |
20.0 | — | 20.2 | 40.2 | 3.0 | % | ||||||||||||||
| Illinois |
34.1 | 1.8 | 3.2 | 39.1 | 2.9 | % | ||||||||||||||
| Nevada |
31.9 | 1.0 | — | 32.9 | 2.4 | % | ||||||||||||||
| New Jersey |
9.9 | 4.9 | 16.9 | 31.7 | 2.4 | % | ||||||||||||||
| Virginia |
8.1 | 16.5 | 6.1 | 30.7 | 2.3 | % | ||||||||||||||
| Georgia |
7.4 | 12.0 | 11.0 | 30.4 | 2.3 | % | ||||||||||||||
| Oregon |
28.3 | — | 0.6 | 28.9 | 2.1 | % | ||||||||||||||
| Arkansas |
28.2 | — | — | 28.2 | 2.1 | % | ||||||||||||||
| North Carolina |
15.2 | 4.7 | 7.0 | 26.9 | 2.0 | % | ||||||||||||||
| Indiana |
— | 4.1 | 22.7 | 26.8 | 2.0 | % | ||||||||||||||
| Mississippi |
22.4 | — | 4.0 | 26.4 | 2.0 | % | ||||||||||||||
| California |
17.3 | 1.0 | 5.4 | 23.7 | 1.8 | % | ||||||||||||||
| Missouri |
3.2 | 4.1 | 15.7 | 23.0 | 1.7 | % | ||||||||||||||
| Minnesota |
12.4 | 9.9 | — | 22.3 | 1.6 | % | ||||||||||||||
| Iowa |
— | 1.0 | 20.7 | 21.7 | 1.6 | % | ||||||||||||||
| Tennessee |
4.4 | 10.9 | 3.1 | 18.4 | 1.4 | % | ||||||||||||||
| West Virginia |
18.4 | — | — | 18.4 | 1.4 | % | ||||||||||||||
| Rhode Island |
18.2 | — | — | 18.2 | 1.3 | % | ||||||||||||||
| Delaware |
12.8 | — | 5.1 | 17.9 | 1.3 | % | ||||||||||||||
| Nebraska |
— | 11.8 | 4.6 | 16.4 | 1.2 | % | ||||||||||||||
| Arizona |
— | 8.0 | 6.7 | 14.7 | 1.1 | % | ||||||||||||||
| Kentucky |
— | 1.0 | 12.6 | 13.6 | 1.0 | % | ||||||||||||||
| Utah |
— | 3.4 | 9.1 | 12.5 | 0.9 | % | ||||||||||||||
| Michigan |
— | — | 11.3 | 11.3 | 0.8 | % | ||||||||||||||
| Oklahoma |
— | 4.0 | 6.7 | 10.7 | 0.8 | % | ||||||||||||||
| Maryland |
— | 7.5 | 3.0 | 10.5 | 0.8 | % | ||||||||||||||
| Kansas |
— | 6.2 | 4.1 | 10.3 | 0.8 | % | ||||||||||||||
| All Other States |
13.1 | 13.6 | 21.8 | 48.5 | 3.6 | % | ||||||||||||||
| Total |
$ | 789.4 | $ | 181.6 | $ | 375.7 | $ | 1,346.7 | 100.0 | % | ||||||||||
17 of 19
Unitrin, Inc.
Investments in Limited Liability Investment Companies and Limited Partnerships
(Dollars in Millions) (Unaudited)
| Unfunded Commitment March 31, 2011 |
Carrying Value | Stated Fund End Date |
||||||||||||||||
| Asset Class | March 31, 2011 |
December 31, 2010 |
||||||||||||||||
| Reported as Equity Method Limited Liability Investments at Cost Plus Cumulative Undistributed Earnings: |
||||||||||||||||||
| Tennenbaum Opportunities Fund V, LLC |
Distressed Debt | $ | — | $ | 95.2 | $ | 91.4 | 10/10/2016 | ||||||||||
| Special Value Opportunity Fund, LLC |
Distressed Debt | — | 82.2 | 86.8 | 7/13/2014 | |||||||||||||
| Goldman Sachs Vintage Fund IV, L.P. |
Secondary Transactions | 23.0 | 56.3 | 58.9 | 12/31/2016 | |||||||||||||
| Special Value Continuation Fund, LLC |
Distressed Debt | — | 25.7 | 26.8 | 6/30/2016 | |||||||||||||
| NY Life Investment Management Mezzanine Partners II, LP |
Mezzanine Debt | 2.4 | 20.6 | 20.5 | 7/31/2016 | |||||||||||||
| BNY Mezzanine Partners L.P. |
Mezzanine Debt | 2.0 | 13.6 | 14.1 | 4/17/2016 | |||||||||||||
| Ziegler Meditech Equity Partners, LP |
Growth Equity | 2.3 | 13.9 | 10.4 | 1/31/2016 | |||||||||||||
| BNY-Alcentra Mezzanine Partners III, L.P. |
Mezzanine Debt | 40.2 | 3.8 | 4.5 | 2021-2022 | |||||||||||||
| Other Funds |
4.3 | 14.7 | 14.6 | Various | ||||||||||||||
| Total Equity Method Limited Liability Investments |
74.2 | 326.0 | 328.0 | |||||||||||||||
| Reported as Other Equity Interests and Reported at Fair Value: |
||||||||||||||||||
| Highbridge Principal Strategies Fund L.P. |
Mezzanine Debt | 11.7 | 13.4 | 11.4 | 1/23/2018 | |||||||||||||
| Goldman Sachs Vintage Fund V, L.P. |
Secondary Transaction | 11.6 | 9.5 | 8.7 | 12/31/2018 | |||||||||||||
| Goldman Sachs Mezzanine Partners V, L.P. |
Mezzanine Debt | 15.9 | 7.4 | 8.4 | 12/31/2021 | |||||||||||||
| Other Funds |
28.9 | 44.3 | 46.7 | Various | ||||||||||||||
| Total Reported as Other Equity Interests and Reported at Fair Value |
68.1 | 74.6 | 75.2 | |||||||||||||||
| Total |
$ | 142.3 | $ | 400.6 | $ | 403.2 | ||||||||||||
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Unitrin, Inc.
Definitions of Non-GAAP Financial Measures
We believe that investors’ understanding of Unitrin’s performance is enhanced by our disclosure of the following non-GAAP financial measures. Our methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.
Book Value Per Share Excluding Unrealized Gains on Fixed Maturities, is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the impact of unrealized net capital gains and losses on fixed income securities by total Common Shares Issued and Outstanding. Book value per share is the most directly comparable GAAP financial measure. We use the trend in book value per share, excluding the impact of unrealized net capital gains and losses on fixed income securities in conjunction with book value per share to identify and analyze the change in net worth attributable to management efforts between periods. We believe the non-GAAP financial measure is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period and are generally driven by economic developments, primarily capital market conditions, the magnitude and timing of which are generally not influenced by management. We believe it enhances understanding and comparability of performance by highlighting underlying business activity and profitability drivers.
Book Value Per Share Excluding Goodwill, is a ratio that uses a non-GAAP financial measure. It is calculated by dividing shareholders’ equity after excluding the recorded Goodwill asset. Book value per share is the most directly comparable GAAP financial measure. Book Value Per Share, Excluding Goodwill, also referred to as Tangible Book Value Per Share, is a common measure used by analysts and investors to compare similar companies.
Underlying Combined Ratio is a non-GAAP financial measure, which is computed by adding the Current Year Non-catastrophe Losses and LAE Ratio with the Incurred Expense Ratio. The most directly comparable GAAP financial measure is the combined ratio. We believe the underlying combined ratio is useful to investors and is used by management to reveal the trends in our Property and Casualty business that may be obscured by catastrophe losses and prior year reserve development. These catastrophe losses cause our loss trends to vary significantly between periods as a result of their incidence of occurrence and magnitude, and can have a significant impact on the combined ratio. Prior year reserve developments are caused by unexpected loss development on historical reserves. Because reserve development relates to the re-estimation of losses from earlier periods, it has no bearing on the performance of our insurance products in the current period. We believe it is useful for investors to evaluate these components separately and in the aggregate when reviewing our underwriting performance. The underlying combined ratio should not be considered a substitute for the combined ratio and does not reflect the overall underwriting profitability of our business.
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