Temporary differences include unrealized gains and losses and nonadmitted assets, but do not include differences between SAP and tax for asset valuation reserves
, interest maintenance reserves, Schedule F penalties, policyholder surplus attributable to stock life insurance companies prior to 1984 and, in the case of a mortgage guaranty insurer, amounts attributable to a statutory contingency reserve to the extent "tax and loss" bonds have been purchased.
Once validated by a qualified third party with regard to approximate Fair Market Value and the Viability Of A Sale, the adoption of this Plan by VFND would allow the Company to recapture the Deferred Tax asset valuation reserves
from previous years.
related to asset valuation reserves
required at international
5 billion, adjusted surplus (surplus, asset valuation reserves
and interest maintenance reserves) of $127 million and operating leverage of 6.
However, the companies' asset valuation reserves
- a liability insurers are required to maintain in order to insulate capital from investment losses - declined $36 billion, or 15%, reflecting deductions from the reserve as capital losses were realized.
Partially offsetting these positive factors, however, is Presidential Life's concentrated operational focus in the interest rate- sensitive individual annuity marketplace and the fact that nearly all of the company's capital and surplus, plus asset valuation reserves
, is represented by less-than-investment grade securities, although the company continuously is disposing of such securities.
91 per share, when the company reduced previously recorded deferred tax asset valuation reserves
5 million of charges for asset valuation reserves
resulting from the company's product line transition to its XL platform; and (iii) approximately $1 million of R&D costs related to nonrecurring engineering and the acquisition of certain technologies being used in the company's new ATM and Ethernet switching development program.
At year-end 1992, impaired loans (including restructures) accounted for under 2 percent of total assets and 34 percent of surplus funds, including asset valuation reserves
But under new regulations approved by the National Association of Insurance Commissioners, Asset Valuation Reserves
have to be set aside for these portfolios.
Asset valuation reserves
increased by about $31 million to $527.
These operating losses primarily resulted from asset valuation reserves