"FD Insurance Company","PNC QS","2024 09 30" Annual Statutory Statement

Current Statement Date

4

1

2

3

December 31

Net Admitted Assets

Prior Year Net

Assets

Nonadmitted Assets

(Cols. 1 - 2)

Admitted Assets

1. Bonds

11,506,266

11,506,266

11,267,868

$

0

encumbrances)

4.2 Properties held for the production of income

(less $

0

encumbrances)

4.3 Properties held for sale (less

$

0

encumbrances)

5.

Cash ($

761,864

),

cash equivalents ($

1,113,316 )

and short-term investments ($

199,850

)

2,075,030

2,075,030

1,773,232

6.

Contract loans (including $

0

premium notes)

7.

Derivatives

8.

Other invested assets

85,423

85,423

88,937

12.

Subtotals, cash and invested assets (Lines 1 to 11)

13,666,719

13,666,719

13,130,037

13.

Title plants less $

0 charged off (for Title insurers

only)

14.

Investment income due and accrued

17,914

17,914

7,756

deferred and not yet due (including $

0 earned

but unbilled premiums)

15.3 Accrued retrospective premiums ($

0 ) and

contracts subject to redetermination ($

0 )

16. Reinsurance:

16.1 Amounts recoverable from reinsurers

489

489

65,033

18.1 Current federal and foreign income tax recoverable and interest thereon

4,512

4,512

18.2 Net deferred tax asset

94,090

504

93,586

105,451

19.

Guaranty funds receivable or on deposit

20.

Electronic data processing equipment and software

21.

Furniture and equipment, including health care delivery assets

($

0 )

24. Health care ($

0 ) and other amounts receivable

Protected Cell Accounts (Lines 12 to 25)

13,783,724

504

13,783,220

13,308,277

28. Total (Lines 26 and 27)

13,783,724

504

13,783,220

13,308,277

1

2

Current

December 31,

Statement Date

Prior Year

1.

Losses (current accident year $

0

)

2.

Reinsurance payable on paid losses and loss adjustment expenses

3.

Loss adjustment expenses

209,531

209,531

4.

Commissions payable, contingent commissions and other similar charges

5.

Other expenses (excluding taxes, licenses and fees)

1,246

6.

Taxes, licenses and fees (excluding federal and foreign income taxes)

7.1Current federal and foreign income taxes (including $

0

on realized capital gains (losses))

7.2 Net deferred tax liability

8.

Borrowed money $

0 and interest thereon $

0

9.

Unearned premiums (after deducting unearned premiums for ceded reinsurance of $

0 and

including warranty reserves of $

0 and accrued accident and health experience rating refunds

including $

0 for medical loss ratio rebate per the Public Health Service Act)

12. Ceded reinsurance premiums payable (net of ceding commissions)

(6,168)

141,041

16. Provision for reinsurance (including $

0 certified)

19. Payable to parent, subsidiaries and affiliates

5,108

9,761

24.

Capital notes $

0 and interest thereon $

0

25.

Aggregate write-ins for liabilities

26.

Total liabilities excluding protected cell liabilities (Lines 1 through 25)

209,717

360,333

27.

Protected cell liabilities

28.

Total liabilities (Lines 26 and 27)

209,717

360,333

29.

Aggregate write-ins for special surplus funds

30.

Common capital stock

500,000

10,000,000

34.

Gross paid in and contributed surplus

10,133,014

633,014

35.

Unassigned funds (surplus)

2,940,489

2,314,929

36.

Less treasury stock, at cost:

36.1

0

shares common (value included in Line 30

$

0

)

36.2

0

shares preferred (value included in Line 31

$

0

)

37.

Surplus as regards policyholders (Lines 29 to 35, less 36)

13,573,503

12,947,943

38.

Totals (Page 2, Line 28, Col. 3)

13,783,220

13,308,276

1

2

3

Current Year

Prior Year

Prior Year Ended

to Date

to Date

December 31

1.

UNDERWRITING INCOME

Premiums earned:

1.1

Direct (written $

0

)

1.2

Assumed (written $

0 )

1.3

Ceded (written $

0

)

1.4

Net (written $

0

)

2.

DEDUCTIONS:

Losses incurred (current accident year $

0 ):

2.1

Direct

(49,014)

15,921,554

11,665,000

2.2

Assumed

2.3

Ceded

(49,014)

15,921,554

11,665,000

3.

2.4

Net

Loss adjustment expenses incurred

4,900

11,002

(138,998)

4.

Other underwriting expenses incurred

(4,900)

(11,002)

138,998

9.

Net investment income earned

INVESTMENT INCOME

411,326

319,361

500,210

10.

Net realized capital gains (losses) less capital gains tax of $

0

11.

Net investment gain (loss) (Lines 9 + 10)

411,326

319,361

500,210

12.

OTHER INCOME

Net gain or (loss) from agents' or premium balances charged off

(amount recovered $

0 amount charged off $

0 )

17.

and foreign income taxes (Lines 8 + 11 + 15)

411,326

319,361

500,210

Dividends to policyholders

18.

Net income, after dividends to policyholders, after capital gains tax and before all other federal

19.

and foreign income taxes (Line 16 minus Line 17)

411,326

319,361

500,210

Federal and foreign income taxes incurred

(4,513)

20,686

32,601

20.

Net income (Line 18 minus Line 19)(to Line 22)

415,839

298,675

467,609

21.

CAPITAL AND SURPLUS ACCOUNT

Surplus as regards policyholders, December 31 prior year

12,947,943

12,287,633

12,287,633

22.

Net income (from Line 20)

415,839

298,675

467,609

25.

$

(46,533)

175,053

(80,167)

160,796

Change in net unrealized foreign exchange capital gain (loss)

26.

Change in net deferred income tax

(40,290)

(71,943)

(33,952)

27.

Change in nonadmitted assets

74,958

65,142

65,857

32.3

Transferred to surplus

(9,500,000)

33. Surplus adjustments:

33.1

Paid in

9,500,000

38.

Change in surplus as regards policyholders (Lines 22 through 37)

625,560

211,707

660,310

39.

Surplus as regards policyholders, as of statement date (Lines 21 plus 38)

13,573,503

12,499,340

12,947,943

0501.

DETAILS OF WRITE-INS

0502.

0503.

0598.

Summary of remaining write-ins for Line 5 from overflow page

0599.

TOTALS (Lines 0501 through 0503 plus 0598) (Line 5 above)

1401.

1402.

1403.

1498.

Summary of remaining write-ins for Line 14 from overflow page

1499.

TOTALS (Lines 1401 through 1403 plus 1498) (Line 14 above)

3701.

3702.

3703.

3798.

Summary of remaining write-ins for Line 37 from overflow page

3799.

TOTALS (Lines 3701 through 3703 plus 3798) (Line 37 above)

1

2

3

Current Year

Prior Year

Prior Year Ended

To Date

To Date

December 31

1.

Cash from Operations

Premiums collected net of reinsurance

(147,209)

(114,814)

38,743

2.

Net investment income

397,871

316,493

495,503

3.

Miscellaneous income

4.

Total (Lines 1 to 3)

250,662

201,679

534,246

5.

Benefit and loss related payments

(59,891)

6,701

50,026

6.

Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts

7.

Commissions, expenses paid and aggregate write-ins for deductions

(1,246)

(8,065)

150,001

8.

Dividends paid to policyholders

9.

Federal and foreign income taxes paid (recovered) net of $

0 tax on capital

10.

gains (losses)

(13,495)

Total (Lines 5 through 9)

(61,137)

(1,364)

186,532

11.

Net cash from operations (Line 4 minus Line 10)

311,799

203,043

347,714

12.

Cash from Investments

Proceeds from investments sold, matured or repaid:

12.1

Bonds

12.2

Stocks

12.3

Mortgage loans

12.4

Real estate

12.5

Other invested assets

12.6

Net gains or (losses) on cash, cash equivalents and short-term investments

12.7

Miscellaneous proceeds

13.

12.8

Total investment proceeds (Lines 12.1 to 12.7)

Cost of investments acquired (long-term only):

13.1

Bonds

593,977

13.2

Stocks

13.3

Mortgage loans

13.4

Real estate

13.5

Other invested assets

10,000

13.6

Miscellaneous applications

14.

13.7

Total investments acquired (Lines 13.1 to 13.6)

10,000

593,977

Net increase/(decrease) in contract loans and premium notes

15.

Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)

(10,000)

(593,977)

16.

Cash from Financing and Miscellaneous Sources

Cash provided (applied):

16.1

Surplus notes, capital notes

16.2

Capital and paid in surplus, less treasury stock

16.3

Borrowed funds

16.4

Net deposits on deposit-type contracts and other insurance liabilities

16.5

Dividends to stockholders

16.6

Other cash provided (applied)

17.

Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5

plus Line 16.6)

18.

RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)

301,799

203,043

(246,263)

19.

Cash, cash equivalents and short-term investments:

19.1

Beginning of year

1,773,231

2,019,494

2,019,494

19.2

End of period (Line 18 plus Line 19.1)

2,075,030

2,222,537

1,773,231

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Year-to-date period ended

NET INCOME

SSAP

F/S

F/S

September 30,

December 31,

#

Page

Line #

2024

2023

(1)

State basis (Page 4, Line 20, Columns 1 & 3)

XXX

XXX

XXX

$

415,839

$

467,609

(2)

State Prescribed Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(3)

State Permitted Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(4)

NAIC SAP (1-2-3=4)

XXX

XXX

XXX

$

415,839

$

467,609

SURPLUS

(5)

State basis (Page 3, Line 37, Columns 1 & 2)

XXX

XXX

XXX

$

13,573,503

$

12,947,943

(6)

State Prescribed Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(7)

State Permitted Practices that are an increase/

-

-

(decrease) from NAIC SAP:

(8)

NAIC SAP (5-6-7=8)

XXX

XXX

XXX

$

13,573,503

$

12,947,943

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Interest Income Due and Accrued

Amount

1.

Gross

$

17,914

2.

Nonadmitted

$

-

3.

Admitted

$

17,914

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Note 9 - Income Taxes

A. The components of the net deferred tax asset/(liability) at September 30 are as follows:

1.

Change between years

9/30/2024

12/31/2023

Change

by tax character

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(Col 1+2)

(Col 4+5)

(Col 1-4)

(Col 2-5)

(Col 7+8)

Ordinary

Capital

Total

Ordinary

Capital

Total

Ordinary

Capital

Total

(a)

Gross Deferred Tax Assets

$

94,981

$

103,398

$

198,379

$

181,362

$

153,233

$

334,595

$

(86,381)

$

(49,835)

$

(136,216)

(b)

Statutory Valuation Allowance

-

103,398

103,398

-

153,233

153,233

-

(49,835)

(49,835)

Adjustments

(c)

Adjusted Gross Deferred Tax

94,981

-

94,981

181,362

-

181,362

(86,381)

-

(86,381)

Assets (1a - 1b)

(d)

Deferred Tax Assets

504

-

504

75,462

-

75,462

(74,958)

-

(74,958)

Nonadmitted

(e)

Subtotal Net Admitted

94,477

-

94,477

105,900

-

105,900

(11,423)

-

(11,423)

Deferred Tax Asset (1c - 1d)

(f)

Deferred Tax Liabilities

891

-

891

449

-

449

442

-

442

(g)

Net Admitted Deferred Tax

Asset/(Net Deferred Tax

$

93,586

$

-

$

93,586

$

105,451

$

-

$

105,451

$

(11,865)

$

-

$

(11,865)

Liability)(1e-1f)

2.

Admission Calculation

9/30/2024

12/31/2023

Change

Components SSAP No. 101

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(Col 1+2)

(Col 4+5)

(Col 1-4)

(Col 2-5)

(Col 7+8)

Ordinary

Capital

Total

Ordinary

Capital

Total

Ordinary

Capital

Total

(a)

Federal Income Taxes Paid in

Prior Years Recoverable

Through Loss Carrybacks

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

2(b)2 Below)

$

93,587

$

- $

93,587

$ 105,451

$

- $ 105,451

$ (11,864)

$

- $ (11,864)

Balance Sheet Date

$

93,587

$

- $

93,587

$ 105,451

$

- $ 105,451

$ (11,864)

$

- $ (11,864)

Limitation Threshold

XXX

XXX $ 2,025,821

XXX

XXX $ 1,926,374

XXX

XXX $ 99,447

Deferred Tax Liabilities

$

891

$

- $

891

$

449

$

- $

449

$

442

$

- $

442

SSAP No. 101

$

94,478

$

- $

94,478

$ 105,900

$

- $ 105,900

$ (11,422)

$

- $ (11,422)

4. Impact of tax-planning strategies

9/30/2024

12/31/2023

Change

(1)

(2)

(3)

(4)

(5)

(6)

(Col 1-3)

(Col 2-4)

Ordinary

Capital

Ordinary

Capital

Ordinary

Capital

(a) Determination Of Adjusted Gross Deferred Tax Assets

And Net Admitted Deferred Tax Assets, By Tax Character

As A Percentage.

1 Adjusted Gross DTAs Amount From Note 9A1(c)

$

94,981

$

- $ 181,362

$

- $ (86,381)

$

-

Strategies

-

-

-

-

-

-

3 Net Admitted Adjusted Gross DTAs Amount From

94,477

-

105,900

-

(11,423)

-

Note 9A1(e)

Tax Planning Strategies

-

-

-

-

-

-

(b) Does the Company's tax-planning strategies include the use of reinsurance?

No

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(1)

(2)

(3)

(Col 1-2)

9/30/2024

12/31/2023

Change

1.

Current Income Tax

(a)

Federal

$

-

$

-

$

-

(b)

Foreign

-

-

-

(c)

Subtotal (1a+1b)

-

-

-

(d)

Federal income tax on net capital gains

-

-

-

(e)

Utilization of capital loss carry-forwards

-

-

-

(f)

Other

(4,513)

32,601

(37,114)

(g)

Federal and foreign income taxes incurred (1c+1d+1e+1f)

$

(4,513)

$

32,601

$

(37,114)

2.

Deferred Tax Assets:

(a)

Ordinary

(1)

Discounting of unpaid losses

$

2,403

$

2,403

$

-

(2)

Unearned premium reserve

-

-

-

(3)

Policyholder reserves

-

-

-

(4)

Investments

-

-

-

(5)

Deferred acquisition costs

-

-

-

(6)

Policyholder dividends accrual

-

-

-

(7)

Fixed assets

-

-

-

(8)

Compensation and benefits accrual

-

-

-

(9)

Pension accrual

-

-

-

(10)

Receivables - nonadmitted

-

-

-

(11)

Net operating loss carry-forward

65,819

75,362

(9,543)

(12)

Tax credit carry-forward

865

18

847

(13)

Other

25,894

103,579

(77,685)

(99) Subtotal (sum of 2a1 through 2a13)

$

94,981

$

181,362

$

(86,381)

(b)

Statutory valuation allowance adjustment

-

-

-

(c)

Nonadmitted

504

75,462

(74,958)

(d)

Admitted ordinary deferred tax assets (2a99 - 2b - 2c)

$

94,477

$

105,900

$

(11,423)

(e)

Capital

(1)

Investments

$

103,398

$

153,233

$

(49,835)

(2)

Net capital loss carry-forward

-

-

-

(3)

Real estate

-

-

-

(4)

Other

-

-

-

(99) Subtotal (2e1+2e2+2e3+2e4)

$

103,398

$

153,233

$

(49,835)

(f)

Statutory valuation allowance adjustment

103,398

153,233

(49,835)

(g)

Nonadmitted

-

-

-

(h)

Admitted capital deferred tax assets (2e99 - 2f - 2g)

$

-

$

-

$

-

(i)

Admitted deferred tax assets (2d + 2h)

$

94,477

$

105,900

$

(11,423)

3.

Deferred Tax Liabilities:

(a)

Ordinary

(1)

Investments

$

779

$

-

$

779

(2)

Fixed assets

-

-

-

(3)

Deferred and uncollected premium

-

-

-

(4)

Policyholder reserves

-

-

-

(5)

Other

112

449

(337)

(99) Subtotal (3a1+3a2+3a3+3a4+3a5)

$

891

$

449

$

442

(b)

Capital

(1)

Investments

$

-

$

-

$

-

(2)

Real estate

-

-

-

(3)

Other

-

-

-

(99) Subtotal (3b1+3b2+3b3)

$

-

$

-

$

-

(c)

Deferred tax liabilities (3a99 + 3b99)

$

891

$

449

$

442

4.

Net deferred tax assets/liabilities (2i - 3c)

$

93,586

$

105,451

$

(11,865)

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Amount

Tax Effect

Effective

Tax Rate

Provision computed at statutory rate

$

411,326

$

86,378

21.0 %

Change in statutory valuation allowance

-

(49,835)

(12.1)%

Other

-

(766)

(0.2)%

Totals

$

411,326

$

35,777

8.7 %

Federal income taxes incurred [expense/(benefit)]

$

(4,513)

(1.1)%

Change in net deferred income tax [charge/(benefit)]

40,290

9.8 %

Total statutory income taxes

$

35,777

8.7 %

Amount

Expiration

Net operating loss carryover

$

313,425

2035

September 30, 2024

$

-

December 31, 2023

$

-