The current quarter increase was primarily due to $3.6 million of net
unrealized appreciation of investments, partially offset by an $0.8 million net realized loss on investments.
Reports net asset value per share of $6.55, up from $6.19 for the first fiscal quarter, primarily driven by realized gains in two investments and
unrealized appreciation in certain debt and equity investments.
The life-insurance sector recorded an increase of 8.61 percent in net worth amounting to P219.91 billion, from P202.48 billion in 2017, primarily due to the increase in investment fluctuation reserves, which represents the
unrealized appreciation in market value of stock and bond investments.
In addition,the aggregate of the net
unrealized appreciation of portfolio securities and net realized losses on sale of securities is USD22.48, of which USD26.18m represents net
unrealized appreciation of portfolio securities.
For the three months ended March 31, 2018, the net unrealized depreciation on investments was $0.5 million, or $0.04 per share, as compared to net
unrealized appreciation on investments of $11.1 million, or $0.97 per share, for the three months ended March 31, 2017.
A bit later, however, in response to another question from Mann, Hull suggested a very different rule: "[I]f a man bought some property, it may have been 10 years ago, for $10,000 and sells it for $20,000 now, he would return [i.e., report as income] the average annual increase for one year, which would be $1,000, as a part of his annual profits for this year." (17) In contrast with Hull's earlier reply to Rogers, this suggested that there was no mark-to-market taxation of
unrealized appreciation, although it is possible that Hull was thinking of real estate ("property") in his response to Mann, and that he envisioned a mark-to-market regime for marketable securities coexisting with realization-based taxation of real estate investment gains.
The life insurance sector recorded an increase of 19.48 percent in its networth due to the increase in investment fluctuation reserves which represents the
unrealized appreciation in market value of stock and bond investments, as at a given report date.
(17) This adjustment in basis can be quite beneficial in the case of an asset with
unrealized appreciation at the time of the decedent's death.
Net income was comprised of total investment income of USD 16.6 million, net
unrealized appreciation (or unrealized mark-to-market gain on investments) of USD 3.5 million, and net realized capital gains on investments of USD 1.1 million, offset by total expenses of USD 8.6 million.
If the client satisfies certain specific requirements, he or she may benefit from an often-overlooked net
unrealized appreciation (NUA) strategy that can generate substantial tax savings over time.
Some of the specifics covered in the book are guides to PFP assumptions, the importance of a statement of financial position and how to prepare it, specific details of each area of PFP, and important explanations of many esoteric but essential areas, such as powers of attorney, net
unrealized appreciation of employer stock distributed from a retirement account, reverse mortgages, elder care services, bond ladders, HMOs and PPOs, educational funding, and all facets of estate planning.
Net
unrealized appreciation rules, which allow employees to hold stock in the company you work for within your 401(k) plan, have been on the books since 1956, but the government would like to see them repealed.
