Hypotheses 1 and 2 predict that OMPS
pre-tax yields are higher than equally risky NMPS
pre-tax yields and lower than equally risky debt
pre-tax yields.
The yield advantage under the same
pre-tax yields has dropped to 58 basis points under the revised tax law.
Furthermore, State Farm Indemnity has produced an above average five-year net investment yield relative to industry norms, despite its significant holdings in tax-exempt municipal bonds, which generally produce lower
pre-tax yields than taxable bonds.
The use of net of tax investment yields allows APCapital to monitor and measure investment performance on a more comparative basis by compensating for the decline in
pre-tax yields on tax-exempt securities, with the benefit of the additional federal income tax savings.
7 million in the first quarter of 1999 reflecting (i) reduced funds available for investment as a result of pre-funding premiums under reinsurance agreements, and (ii) growth of tax-exempt municipal securities as a percent of the total portfolio that earn lower
pre-tax yields than taxable securities but earn higher comparable yields on a tax adjusted basis.
0 million earned in the second quarter of 1998 reflecting growth of tax-exempt municipal securities included in our portfolio that earn lower
pre-tax yields than taxable securities but earn higher comparable yields on a tax adjusted basis.
The fully taxable equivalent comparison is presented because Travelers Express, Viad's payment services subsidiary, invests substantial amounts of its funds in tax-exempt securities, which have lower
pre-tax yields, but produce higher income on an after-tax basis than comparable taxable investments.
0 million in the first quarter of 1998 reflecting growth of tax-exempt municipal securities included in our portfolio that earn lower
pre-tax yields than taxable securities but earn higher comparable yields on a tax adjusted basis.
Travelers Express, Viad's payment services subsidiary, is continuing to invest increasing amounts of its growing money order and official check funds in tax-exempt securities, which have lower
pre-tax yields, but produce higher income on an after-tax basis than comparable taxable investments.
Travelers Express, the group's money order subsidiary, which had an outstanding quarter, is continuing to invest increasing amounts of its growing money order float in tax-exempt securities which have lower
pre-tax yields, but produce more income on an after-tax basis.
These investments have lower
pre-tax yields, but generate more income on an after-tax basis than taxable investments.
Travelers Express, the group's money order subsidiary, has been investing increasing amounts in tax-exempt securities which have lower
pre-tax yields but generate more income on an after-tax basis than taxable investments.
