| Consolidated Statements of Cash Flows |
|
| The National
Catholic Risk Retention Group, Inc. and Subsidiaries |
| |
|
Cash Flows From Operating Activities |
|
Year
Ended
December 31, 2011 |
|
|
Year
Ended
December 31, 2010 |
|
|
|
| |
|
 Net loss |
|
$ (3,133,931) |
|
|
$ (38,200) |
|
|
|
| |
|
Add (deduct) items not affecting cash: |
|
|
|
|
|
|
|
|
| |
|
Net realized gains on sales of investments |
|
(717,323) |
|
|
(743,989) |
|
|
|
| |
|
Net amortization of bond premium and discount |
|
218,163 |
|
|
340,160 |
|
|
|
| |
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
| |
|
Receivable from affiliates |
|
(260,233) |
|
|
— |
|
|
|
| |
|
Accrued investment income |
|
(2,319) |
|
|
77,047 |
|
|
|
| |
|
Premiums receivable |
|
269,720 |
|
|
(282,494) |
|
|
|
| |
|
Reinsurance receivable on paid losses |
|
(3,097,031) |
|
|
1,527,481 |
|
|
|
| |
|
Reinsurance recoverable on case reserves |
|
2,848,093 |
|
|
(3,453,533) |
|
|
|
| |
|
Reinsurance recoverable on IBNR reserves |
|
(1,483,381) |
|
|
(858,688) |
|
|
|
| |
|
Prepaid reinsurance premiums |
|
189,962 |
|
|
(1,312,635) |
|
|
| |
|
Deferred policy acquisition costs |
|
1,079 |
|
| (21,403) |
|
|
|
| |
|
Other assets |
|
115,679 |
|
|
(80,357) |
|
|
|
| |
|
Losses and loss adjustment expenses |
|
(2,338,754) |
|
|
3,368,846 |
|
|
|
| |
|
Unearned premiums |
|
17,532 |
|
|
1,369,437 |
|
|
|
| |
|
Reinsurance payable |
|
(344,692) |
|
|
394,625 |
|
|
|
| |
|
Premium taxes payable |
|
(74,486) |
|
|
22,747 |
|
|
|
| |
|
Unearned ceding commissions |
|
(13,378) |
|
|
249,468 |
|
|
|
|
|
| |
|
Other
liabilities |
|
245,345 |
|
|
(20,124) |
|
|
|
| |
|
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES |
|
(7,559,955) |
|
|
538,388 |
|
|
|
|
| |
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
| |
|
Purchased investments |
|
(12,281,468) |
|
|
(18,857,344) |
|
|
|
| |
|
Proceeds from sales and maturities of investments |
|
19,127,951 |
|
|
19,588,003 |
|
|
|
| |
|
NET CASH PROVIDED BY INVESTING ACTIVITIES |
|
6,846,483 |
|
|
730,659 |
|
|
|
|
| |
|
Cash Flows From Financing Activities |
|
|
|
|
|
|
|
|
| |
|
Return of capital |
|
(40) |
|
| (160) |
|
|
| |
|
Proceeds from issuance of capital |
|
20 |
|
|
— |
|
|
|
| |
|
NET CASH USED IN FINANCING ACTIVITIES |
|
(20) |
|
|
(160) |
|
|
| |
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
(713,492) |
|
|
1,268,887 |
|
|
|
| |
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR |
|
4,599,804 |
|
|
3,330,917 |
|
|
|
| |
|
CASH AND CASH EQUIVALENTS, END OF YEAR |
|
$ 3,886,312 |
|
|
$ 4,599,804 |
|
|
|
|
Note: Johnson Lambert & Co. LLP, Certified Public Accountants has audited the financial statements of The National Catholic Risk Retention Group, Inc. and Subsidiaries for the years ended December 31, 2011 and 2010 prepared in conformity with generally accepted accounting principles in the United States, and issued an unqualified opinion on such financial statements in their report dated April 4, 2012. The auditor's report applies to the complete financial statements which are not presented.
These consolidated balance sheets, consolidated statements of operations and comprehensive income, consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows of The National Catholic Risk Retention Group, Inc. and Subsidiaries for the years ended December 31, 2011 and 2010 were derived from the audited financial statements. The complete audited financial statements may be obtained from The National Catholic Risk Retention Group, Inc. and Subsidiaries at 801 Warrenville Road, Suite 175, Lisle, IL 60532-4334. |
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